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Healing priest’s biopic in 2020 MMFF

SHIFTING to an online platform may have led the annual Metro Manila Film Festival (MMFF) to introduce a greater variety of films for this year’s pandemic edition. While the requisite family films such as Magic Kingdom and Mang Kepweng: Ang Lihim ng Bandanang Itim are still part of the programming, it has been seven years since the festival last included a biopic on a religious figure, 2013’s Pedro Calungsod: Batang Martir. While Pedro Calungsod tells the life (or what little is known about the life) of the second Filipino saint who lived in the 1600s, Joven Tan’s Father Suarez: Healing Priest explored the life of a modern-day subject, the so-called healing priest, Father Fernando Suarez.

“I have heard a lot of things about Father Suarez from way back, so when I got to read the script, I was intrigued and wanted to work on this material. During our meets, prior and during the filming I remember him (Fr. Suarez) to be kind, straightforward, and sincere,” Joven Tan, the film’s director, said in a press release.

Fr. Suarez was a Filipino Catholic priest who performed faith healing in the Philippines and abroad. He was born in Taal, Batangas on Feb. 7, 1967. At the age of 18, Fr. Suarez is said to have discovered his healing abilities after he prayed over a paralyzed woman outside Quiapo Church after which the woman was able to walk again. He was ordained at the age of 35 in Canada, although he had been performing healing masses even before he officially became a priest. He returned to the Philippines to continue his healing mission in 2008. His healing missions attract thousands of people at a time.

Fr. Suarez died of a heart attack while playing tennis on Feb. 4 of this year, shortly before the film was finished. He was 53.

In the film, Father Suarez is played by John Arcilla who said it was easy saying “yes” to the role — although he had misgivings later on because of the controversies that surrounded Fr. Suarez, including accusations of corruption and sexual molestation which will be tackled in the film. Mr. Arcilla said that he didn’t want to be “a mouthpiece to justify some people’s issues,” according to the release. But after meeting Fr. Suarez, Mr. Arcilla was won over by his sincerity and because he did not try to defend himself. The priest was exonerated by the Holy Office at the Vatican in January.

Fr. Suarez, Mr. Arcilla noted, was also a fan of Heneral Luna (2015) where Mr. Arcilla played the title role. “[Fr. Suarez] personally handpicked me to play the role [in his biopic],” Mr. Arcilla said.

“While filming, I decided not [to] mimic or copy him,” said the actor. “I just took his essence and some of his demeanor but what I totally embraced was his unwavering trust in the Almighty.”

The film, which opens on Dec. 25, is something people should watch because “it pays to be reminded that we could always turn to our faith and ask guidance from our Creator,” said Mr. Tan.

Father Suarez: Healing Priest is part of this year’s MMFF slate. Tickets are now available via Upstream.ph. The Metro Manila Film Festival runs from Dec. 25 to Jan. 7 online. — Zsarlene B. Chua

Moody’s affirms Security Bank’s rating, outlook

MOODY’S INVESTORS Service affirmed Security Bank Corp.’s long-term debt rating of Baa2, citing the lender’s strong capitalization and profitability.

In a Dec. 14 credit opinion, the debt watcher also retained its “stable” outlook for the bank’s rating, which means the grade could be retained for the next 12 to 18 months.

Moody’s said the rating reflects their assumption of moderate level of systemic support from the government given Security Bank’s position as one of the biggest medium-sized banks in the Philippines.

It said the bank’s credit strengths lie in its “robust capitalization” and “stable profitability, supported by lower cost of funds.”

“Our strong capital position is an important pillar which both our clients and employees can rely upon to weather the challenges brought by the COVID-19 pandemic. That capital will be deployed to support our clients’ pandemic recovery efforts, employee health and safety initiatives, and investments in systems and technology,” Security Bank President and Chief Executive Officer Sanjiv Vohra said in a separate statement on Thursday.

Moody’s said an upgrade for the bank’s rating is unlikely in the near future as its Baa2 grade already matches the country’s sovereign rating. Following this, a downgrade of the country’s rating could also lead to a lower rating for the bank.

“A significant decline in capitalization as a result of excessive loan growth could also exert downward pressure on its BCA and ratings,” it added.

Moody’s expects the bank’s capitalization to remain robust. As of Sept. 30, Security Bank’s common equity Tier 1 ratio rose to 19.1% from 17.1%, as slower risk-weighted asset growth more than offset weaker internal capital generation.

Meanwhile, it flagged that the bank could see a further deterioration in asset quality amid the coronavirus pandemic. It noted the lender’s significant loan book exposure to pandemic-hit sectors such as retail (16%), construction (2.1%), agriculture (3.7%), and transportation (3.2%) as of end-2019.

Moody’s added that the bank’s consumer loans, which accounted for 26% of the total portfolio as of end-September, are also sizable.

“These loans are riskier as they are unsecured and retail borrowers tend to have limited buffers to withstand a prolonged cash flow crunch amid the economic downturn,” the report said.

Security Bank’s net profit slumped to P1 billion in the three months to September from P2.7 billion a year earlier due to higher loan loss reserves. This caused the lender’s nine-month net earnings to go down 12.9% to P6 billion.

The bank’s shares ended trading at P141 apiece on Thursday, down by 1.88% or P2.70 from its previous close. — Luz Wendy T. Noble

The cosmetics industry puts on a brave face

By Gillian M. Cortez, Reporter

HARD TIMES require most people to strip down to bare essentials. With work-from-home arrangements and mask mandates rendering make-up more or less superfluous, it’s hard to imagine how the cosmetics industry could possibly have survived. But contrary to expectations, it did, with the help of clever adaptations, like positioning the product as a small luxury, or a reassuring remnant of the user’s pre-pandemic life.

“Makeup enthusiasts don’t stop wearing even in the midst of compulsory face masks during this pandemic,” a representative of online brand Glamskin said in an e-mail exchange with BusinessWorld.

Thanks to masks, though, the playing field has shifted, from the face in general, to the eyes — just the right conditions for Glamskin’s eyeshadow products, some of which come in palettes the size of dinner plates.

“Consumers are raising their ‘eye game,’ emphasizing the appearance of their eyes. We have been trying to get our consumers to use more products for the upper part of the face, mainly brows, eyeshadow, liners, and lashes,” Glamskin said.

Glamskin’s social media has been pushing hard for rainbow-colored single-pan eyeshadow and fluttery false eyelashes, which promise a touch of glamor just a few inches north of the ever-present face mask.

Another brand with a strong eyeshadow line, Filipinta, which has built a reputation for vibrant colors, has also had to raise its social media game. Filipinta Creative Director Hannah Kirchhoff said in an interview with BusinessWorld that without social media, the company might not have survived.

Business “decreased a lot because what’s the use of (makeup) when there’s face shields and face masks,” she said.

However, the brand is still hanging on via its social media platforms, which had steered attention to its products pre-COVID-19. Ms. Kirchoff said marketing has continued via this channel to get around the lockdown and occasional disruption to delivery services.

Filipinta also reduced time to launch from three months from the previous six, to get product out the door faster and be less of a drain on resources during development.

“We really had to adapt to the situation,” she added.

Ever Bilena, Inc. Chief Marketing Officer Denice Sy told BusinessWorld makeup was a hard sell during the most difficult months of the crisis, when businesses were closing and workers were losing their jobs.

“It was a very sensitive time. It was not okay to market makeup at all. Everyone is really more concerned about their well-being and their health,” she said.

The Ever Bilena stable of brands includes Careline, targeted at teens; Blackwater, a fragrance line for men and women; and EB Naturals, a skincare line featuring soap and lotion, all suddenly difficult to sell for various reasons, not the least among them the grounding of the entire school-age population and the confinement of nearly the entire workforce to working from home.

“We actually did not think (the crisis) would last this long… in general I think the whole colorful cosmetics industry is suffering,” Ms. Sy said. She added that when the shops opened again, business did not pick up immediately due to limitations on mall hours and public transportation.

“That’s the reason why we see a lot of color cosmetics brands really trying to generate consumer purchases via promotions and campaigns,” she said.

Glamskin found itself having to offer discounts, even for its professional products.

“In order for us to carry on with our business and continue to provide jobs for our employees, our objective is to have continuous income despite the challenges we are facing. Putting most of our items on sale on all selling platforms online keeps our business afloat,” it said.

The biggest victim of the mask mandate was undoubtedly lipstick, which used to be wielded to inject striking color accents to the wearer’s general look. But that didn’t mean products for the eye area were flying off the shelves.

Ms. Sy of Ever Bilena described the situation for eye products as “not declining as much as the other categories… all other categories are barely performing.”

Ms. Sy also said the crisis also forced a shift to products perceived as more convenient, like eyebrow pencils, mascara and liquid eyeliner, for users who still wanted to achieve a put-together look without the time-consuming effort of their pre-pandemic routines.

Going forward, it is beginning to dawn on the industry that health protocols imposed by the pandemic will be around for some time.

“We will continue (to work with) the safety guidelines; makeup is a sanitary thing… as much as possible, we will keep pushing out products people like. We just need keep our heads up and be smart with our choices,” Ms. Kirchoff of Filipinta said.

The choice has come down to two equally plausible business strategies: saving costs during the crisis or generating excitement with new offerings.

“It’s important to excite the category… because people are not buying color cosmetics that much now; it’s really a call to action for them to try something new… people (will be) looking into cosmetics again,” Ms. Sy said.

Glamskin, which is counting on its users to look at cosmetics as a pleasant reminder of their old normal, before life was upended by the pandemic, said: “We all learned that despite the crisis, people remain resilient” and continue to seek out things that may not be essential, but are “important for their well being.”

Primex Realty taps Accor group for 200-room hotel in San Juan

PRIMEX Realty Corp. signed with hotel group Accor SA to manage its San Juan-based Pullman Manila at Primex Tower, which is slated to be completed by 2023.

The 200-room hotel will be at the topmost 10 floors of the mixed-use property that houses retail and office spaces in the lower floors.

Primex Realty Corp. is a subsidiary of listed company Primex Corp., which said in a disclosure on Thursday that the hotel at the 50-storey glass tower will have two restaurants, a rooftop bar, fitness center, swimming pool, and events facilities.

Primex Corp. started construction of the P3.6-billion Primex Tower in 2018, offering office spaces at 200-300-square meters each. The project is on a 1,944-square meter lot at the corner of EDSA, Connecticut Street, and Florida Street at the Greenhills commercial district.

Accor runs seven hotels in the Greater Manila area, with 16 more in its local pipeline for the next five years.

“This is a great market which will continue to thrive in the long-term due to its great potential driven by economic development, natural attractions, the people’s warm hospitality and the ongoing improvement of transport infrastructure,” said Andrew Langdon, Accor senior vice-president for Southeast Asia, Japan, and South Korea.

Primex Corp. acquired 100% stake in its affiliate Primex Realty Corp. in 2015, then 42.86% stake in Primex Development Corp. in 2019.

Shares in Primex jumped 1.20% or two centavos to P1.69 each on Thursday. — Jenina P. Ibañez

MMFF 2020 stars invite OFWs to watch this year’s films online

THE METRO Manila Film Festival (MMFF) festival organizers held a “MMFF Zoom Roadshow” with celebrities to invite Filipinos from all over the world to watch this year’s line-up of films.

Zanjoe Marudo, Charlie Dizon, Keann Johnson, Andrew E, Ritz Azul, Senator Jinggoy Estrada, Julia Estrada, Fumiya and Yamyam kicked off the online roadshow together with Presidential Communications Operations Office Director Pebbles Duque who hosted the online event. OFWs from Hawaii, the UK, Australia, UAE, Germany, Japan, Netherlands, Italy, USA, Trinidad and Tobago, and Hong Kong attended the roadshow. The participants were also given a short demo on how to watch the MMFF films via Upstream, the newest transactional video-on-demand (VOD) platform, and GMovies.

The 46th edition of the MMFF opens on Dec. 25and runs until Jan. 7, 2021. This year, the MMFF has 10 official entries, two more than the usual eight entries. This year the titles cover a wider range of genres:

Joel Lamangan’s Isa Pang Bahaghari is an LGBTQ-themed family drama about an OFW (played by Phillip Salvador) returning home to reconnect with his estranged wife (Nora Aunor) and children (Zanjoe Marudo, Joseph Marco, and Sanya Lopez).

Another LGBTQ-themed film in the roster is The Boy Foretold by the Stars, produced by Clever Minds, Inc., starring Adrian Lindayag and Keann Johnson, who portray high school classmates whose friendship is tested when their feelings towards each other evolve.

For those who enjoy a good scare, Easy Ferrer’s The Missing is set in a haunted house in Japan. Produced by Regal Entertainment, the film features Joseph Marco, Ritz Azul and Miles Ocampo.

Mang Kepweng: Ang Lihim ng Bandang Itim is a horror-comedy. Produced by Cineko Productions and directed by Topel Lee, the film stars Vhong Navarro, Ritz Azul, Benjie Paras, Joross Gamboa, Ryan Bang and Ion Perez.

Al Tantay’s Pakboys: Takusa is another comedy. Produced by Viva Entertainment, the film focuses on the infidelity of comedians Andrew E., Janno Gibbs, Dennis Padilla, and Jerald Napoles.

Then there is Christian Acuña’s fantasy-adventure, Magikland. Produced by Peque Gallaga, Lore Reyes, and Brightlight Leisure Productions, the film features a young cast including Miggs Cuaderno, Elijah Alejo, Joshua Eugenio, and Princess Aguilar.

Viewers can also expect a bit of romance with Mac Alejandre’s Tagpuan. This movie features a love triangle starring Iza Calzado, Alfred Vargas, and Shaina Magdayao. Written by Ricky Lee and shot in Hong Kong and New York, the film is produced by Alternative Vision Cinema.

Those who enjoy true stories might like Suarez, The Healing Priest. Directed by Joven Tan, the film is based on the life of Father Fernando Suarez. Produced by Saranggola Media Productions, the film stars John Arcilla, Dante Rivero, and Jin Macapagal.

Fresh from glowing reviews from its Japan and Estonia premieres, Fan Girl, the latest film from Antoinette Jadaone, is about every fan girl’s fantasy of spending a night with their idol. This was produced by ABS-CBN Films’ Black Sheep Productions, Globe Studios, Project 8, Epicmedia, and Crossword Productions, with performances from newcomer Charlie Dizon and award-winning actor Paulo Avelino, who plays himself.

Lastly, OFWs are represented by Adolfo Alix, Jr.’s Coming Home. Produced by Maverick Films, this is a drama about an OFW father (Jinggoy Estrada) who comes home to his unwelcoming family. The film also features Sylvia Sanchez, Edgar Allan Guzman, Martin del Rosario, Shaira Diaz, Vin Abrenica, Julian Estrada, and Jake Ejercito.

Through a partnership with Upstream and Globe’s GMovies, the MMFF is bringing this year’s festival online via Upstream in partnership with GMovies. The films can be viewed for P250 per title ($10 for Filipinos abroad).

Tickets are already on sale locally, and will be available internationally on Dec. 18.

Fintech group wants industry-crafted rules

BW FILE PHOTO

THE CENTRAL BANK should allow market players to develop their own open finance framework, with the Bangko Sentral ng Pilipinas (BSP) only providing support when needed in the process, an industry group said.

Through open finance, permissioned data sharing and third-party access is extended to a wider range of financial sectors and products in a bid to ramp up digitization and to introduce new financial products for consumers.

“The BSP should only step in to weigh in and remove artificial barriers to competition such as refusal to interconnect systems or share information and can be placed by other government agencies particularly, the National Privacy Commission (NPC) with respect to personal data,” Fintech Alliance.ph Chairman Angelito “Lito” M. Villanueva said in a statement on Thursday.

The central bank released a draft proposal for an open finance governance framework and will accept feedback from stakeholders until Dec. 23. When approved, the framework will be applicable to BSP-supervised financial institutions, as well as third-party service providers that are either account information service providers and/or payment initiation service providers.

The framework also calls for the establishment of an Open Finance Oversight Committee (OFOC), which will become an industry-led self governing body overseen by the BSP.

Upon creation, the OFOC is expected to come up with its own membership and participation rules, standards, and procedures, while ensuring a non-discriminatory membership that represents key interest areas in the financial industry.

Mr. Villanueva recommended that the BSP designate the initial core members to work on the details of the framework and guide the group through a governance mechanism.

“Since the OFOC is key to the success of the guidelines, it might be fatal if the OFOC is unable to negotiate among its members regarding matters of governance and membership. A starting point which has more details can allow a core group to move quickly to self-organize,” he said.

Mr. Villanueva added that their group believes that a major hurdle to the framework are data privacy laws including Republic Act (RA) No. 1405 or the Deposit Secrecy Law and RA No. 10173 or the Data Privacy Act.

With this, Mr. Villanueva said the OFOC could streamline forms and agreements that member institutions can use to demonstrate their right to share personal data.

“Alternatively, the OFOC and its members can formulate their own industry Privacy Code for approval of the NPC to mitigate the risks associated with the user of personal information by Open Finance,” Mr. Villanueva said.

The BSP is looking at a tiered implementation of the framework based on data sensitivity, data type, and data holder type. — Luz Wendy T. Noble

Isolation, money worries, fear of disease: Our year in mental health

By Joseph Emmanuel L. Garcia, Reporter

THE INITIAL panic that set in during the beginning of the March lockdown has become something else altogether in the months we have spent indoors.

On the outside, the world continued to move at its usual rapid and sometimes violent pace. But on the inside, millions of people were trapped indoors, worrying about their futures and unable to connect with friends and family. What effect might that ordeal have had on the mind?

“At this point, we’re trying to get by. But the trials come one after the other,” said Dr. Gia Sison. Dr. Sison works in the field of occupational medicine, but is also a mental health advocate. She appears on social media, mainstream media, and podcasts raising awareness of mental health issues.

Dr. Lou Querubin, Chief Medical Officer of Mindcare Club, an organization offering remote mental health services, said: “The most common mental health issues during a disaster, like the coronavirus disease 2019 (COVID 19) pandemic, are anxiety and depression. The COVID-19 viral contagion brought with it a fear-anxiety contagion that stimulated the human instinct for survival. We instinctively shifted into ‘fight-or-flight’ mode, which explains the early episodes of panic-buying, (which was ultimately) an effort to get the fear under control,” she said. “As the pandemic dragged on, people experienced both concrete and ambiguous losses: concrete losses in the form of unemployment, lost income, and the death of relatives and friends.”

Dr. Querubin highlighted the experience of ambiguous loss, a concept introduced by psychologist Pauline Boss. Ambiguous loss “pertains to losses for which we have had no closure, or those that leave us feeling lost and in limbo…The best examples are COVID-19 deaths where people are admitted to hospitals and no visitors are allowed. The fact that many died alone and the bereaved did not have the opportunity to go through rituals of grief and loss — such as a vigil or wake…Another good example is ‘loss of time’. It’s almost been a year now since COVID-19 broke out.  We have all lost so much time for things originally planned — like weddings, travel, vacations, training and education.  Time is a very clear example of ambiguous loss — we have time and yet, we have lost lots of time.  The irony of that concept needs thinking and reflection for each of us to make sense of what we have lost and what we gained at the same time,” she said.

Dr. Sison, meanwhile, said: “We’re already dealing with reality. That’s difficult. It’s something uncertain. We don’t even know when this will end. That in itself is a big stressor. That’s what we’re confronting now.”

Both agree that the COVID-19 struggle looks different when viewed through various lenses. While others mourn the loss of their freedom of movement, others lost their lives and livelihood. Dr. Sison said the pandemic affected privileged people as well as those without it. “It is a battle. Even without the pandemic, every day is a battle for everyone. We have different struggles.”

Dr. Querubin doesn’t view the mental health struggle as anything so straightforward as winning or losing the battle. When the problem has become collective, the analysis becomes more complex. “My thinking is that there are several battles going on at the same time at different levels.

The master narrative underlying everything is the global battle to contain the virus, a public health disaster that is cruelest to the poor and vulnerable everywhere, devastated economies no matter how rich, and overloaded health systems no matter how advanced.

Dr. Querubin added, “The more abstract battle happens in our minds, and in the context of relationships.” She calls this “meaning-making.” “Individuals who are able to reflect and make sense of how they are thinking, feeling, or responding to everything happening around them are the ones most able to understand themselves and how the pandemic is affecting them.”

An unintended consequence of the pandemic is the increased discussion of mental health. Your typical picture of the occasional depressed individual, shut in and confronting one tiring day after another, is multiplied by the millions.

According to a joint statement issued by the Department of Health (DoH) and the World Health Organization (WHO), the National Center of Mental Health (NCMH) reported that as of September, its crisis hotline “has revealed a significant increase in monthly hotline calls regarding depression, with numbers rising from 80 calls pre-lockdown to nearly 400.”

Dr. Sison said she has received an increased volume of messages asking for referrals for psychiatrists and psychologists. “That’s a long-term problem. It’s not just COVID-19 as an illness, physically. There’s already a mental health aspect that we have to incorporate when you want to deal with it holistically.” Dr. Querubin concurred, saying, “There is increased awareness about the mental health needs of populations.”

Dr. Sison added that while there have always been calls for increased awareness and advocacy — she lobbied for the Mental Health Law of 2018 — “It was amplified by the pandemic. More people started to talk about it, again, and again, and again. Consistency is key when you’re in an advocacy. For me, it should never stop.”

Pointing to her own background in occupational medicine, Dr. Sison noted that a bank implemented a mental health policy in October. Dr. Sison posits that the sense of urgency may have stemmed from the blurred lines of working from home, in which the personal and the professional have become intermixed. “That’s something we would only dream about before. I hope more workplaces would have mental health policies in place for their employees,” Dr. Sison said. “They appreciate it, and they acknowledge it, especially in the workplace.”

Both pointed to the coping mechanisms people have adopted since March, such as new hobbies like gardening or cooking. “That is a coping mechanism,” said Dr. Sison. “You find activities, or you find things that you’re happy to do. That’s one thing that this pandemic actually squeezed [out of us]: a lot of people have gone into their untapped talents. They explored a lot of possibilities.”

Dr. Querubin said keeping occupied serves a purpose: “Keeping our hands busy helps us focus our minds on something concrete, and hopefully, pleasurable. Art and music have always played that role in human history. They are proven balms to our soul and psyche.”

While the darkest days of the pandemic may have passed, the stasis it has produced  in our lives remains unresolved. Dr. Sison said one possible remedy might be to relinquish control. “We really have to realize that there are some things beyond our control. We have to draw a fine line between what we can, and what we cannot control.” While many of us cannot defeat the virus on our own or influence policy, we do have a choice in how we choose to react to events.

Dr. Querubin, meanwhile, points again to meaning-making. “The human capacity for meaning-making is an eternal source of inner peace and courage.  It helps us make sense of the external environment and hopefully, enables us to reach a point where we realize the choices we have.  Our awareness of our choices, and the very capacity to exercise that choice — is very empowering.  Meaning-making and realizing that we do have a choice, no matter the circumstance, is one good way to win our internal battle.”

Both also consider keeping in touch with family and friends to be vital. “You cannot go through trials or struggles alone. At some point, you need to reach out,” said Dr. Sison.

Some hope has emerged as drug companies report moving forward with their vaccines, but the pandemic has left wounds that a vaccine alone cannot heal. Dr. Querubin said, “The virus is here and it will stay, like the flu, measles, chicken pox, etc. Perhaps this phase of the pandemic will be over, but COVID-19 as a virus will remain in our midst. From a medical perspective, I will encourage everyone to improve their immune systems by eating healthy, getting enough sleep, maintaining a reasonable level of physical activity that promotes fitness.  If you have a pre-existing illness that makes you high-risk, stick to the recommended treatment regimen with greater dedication.”

Dr. Sison points out that the vaccines may not be released to the general public until the third quarter of next year, adding the delay to the basket of things people worry about daily. Nevertheless, “I think the healing starts today; and every day of the year. We don’t have to wait for 2021,” she said. “You get by; you take it really one step at a time.”

Dr. Querubin added: “From a psychiatrist’s perspective, my recommendation is we heal as we go.  There will likely be no clear endpoint when we can say it is all over. We need to mind ourselves moment to moment, day to day.  Be kind to ourselves and to others as best we can everyday.  We cannot start to heal when everything is over; we heal as we go.”

Pepsi secures approval of PSE for voluntary delisting of shares

PEPSI-COLA Products Philippines, Inc. said on Thursday that the Philippine Stock Exchange (PSE) approved its petition to delist its shares.        

In a disclosure, Pepsi said the PSE granted its petition for voluntary delisting filed on Sept. 15 and already ordered the delisting of its shares from the latter’s official registry.

“The delisting shall be effective as of the end of business on December 18, 2020, subject to the payment of the voluntary delisting fee,” it said.

On Oct. 23, Pepsi received the written approval of its stockholders to delist its shares and voluntarily exit the market.

Pepsi decided to delist voluntarily after its public ownership fell to 2.1%, far from the 10% minimum requirement of the PSE.

The said figure was a result of the company’s sale of 30.7% or 1.13 billion shares to Lotte Chilsung Co. Ltd. earlier this year.

Shares in Pepsi at the stock exchange were last traded on June 17, when it ended at P1.70 per piece. — Revin Mikhael D. Ochave

Disney to release Nomadland ahead of Best-Picture deadline

WALT DISNEY Co. has rescheduled the release of best-picture contender Nomadland for Feb. 19, keeping the film eligible for Oscar awards while waiting for the pandemic to subside.

The film, which has been the top pick for best picture on forecasting site GoldDerby.com, was originally scheduled to hit theaters Dec. 4. The new date is a little more than a week before the Oscar deadline, which was pushed back because of the havoc coronavirus disease 2019 (COVID-19) has wreaked on Hollywood scheduling.

Nomadland stars Frances McDormand as a woman who embarks on a journey across the Western US after losing everything during the Great Recession. She is also a contender for best actress, according to GoldDerby.

While studios often release their Oscar hopefuls late in the year to keep them fresh in the minds of film academy voters, this time they face an especially delicate balancing act. They’ll want to wait as long as possible so that more theaters may be open, while at the same time meeting the deadline.

In vying for a best-picture statuette, Disney is in unusual territory. The studio hasn’t typically been a front-runner in the category because it stopped making the kind of adult dramas that typically win. It acquired Nomadland as part of its purchase of Fox’s entertainment assets last year and has vowed to continue making those sorts of movies at its Searchlight division.

Oscar season has been thrown into turmoil by the coronavirus. The Academy of Motion Picture Arts & Sciences, which oversees the prizes, usually requires Oscar candidates to have run in Los Angeles theaters for seven days in the calendar year before the awards.

In April, the academy made exceptions for the coronavirus and said films released only online would also be considered for the first time. It has also added drive-in theaters and five other cities to help films qualify. The deadline for appearances in theaters was extended until Feb. 28.

Theaters in Los Angeles, the second-largest US city, have been closed since March. The awards are scheduled to be given out April 25.

By scheduling the theatrical release just before Oscar voting begins, Disney may be able to score points with academy members who favor films shown in cinemas. Many of the films touted as best-picture contenders by GoldDerby, have already come out on streaming services. They include Mank and The Trial of the Chicago 7, both on Netflix.

“This Oscar season, like everything else, has been turned upside down,” said Paul Dergarabedian, senior media analyst for Comscore, Inc. “Now it’s wide open what constitutes a proper nominee.” — Bloomberg

Paid sick leave touted for pandemic relief

EXPANDING paid sick leave (PSL) to encourage self-isolation could be an effective strategy for containing coronavirus disease and will likely be less costly overall than lockdowns, the Asian Development Bank (ADB) said.

It said a special PSL program will support symptomatic patients while they self-isolate, with the option to pay a single rate for the entire population, or variable rates based on the regional minimum wage. Coverage can be limited to areas with higher case loads, to reduce costs.

The findings were outlined in an ADB policy brief, Paid Sick Leave as a Tool for COVID-19 Control.

“Modeling finds that a PSL program in the Philippines that encourages symptomatic workers to self-isolate could reduce the overall mortality from COVID-19 (coronavirus disease 2019) by as much as 50%,” it found.

The bank estimated that P110 billion will be needed to extend paid sick leave benefits to symptomatic COVID-19 workers at a flat rate of P480 per day.

Employers are estimated to pay P22.2 billion through leave benefits and the rest can be subsidized by the government through the Social Security System (SSS) or Government Service Insurance System. A full subsidy can be granted for those not covered by either pension fund, it said.

The costs could fall drastically if payouts are based on regional minimum wages, and targeted at areas with higher COVID-19 incidence. The ADB estimated a total payouts of P10 billion if only high-risk areas are eligible, or P34 billion to cover both high and moderate-risk areas.

These totals are equivalent to 0.05% and 0.18% of gross domestic product (GDP), respectively.

“The costs-financial and administrative-of a special COVID-19-related PSL program are manageable, at a fraction of a percent of GDP,” it said.

The ADB study considered all types of workers, including the self-employed, and those under informal work arrangements. It estimated the administrative costs of implementing the program at P9 billion, equivalent to 0.05% of GDP.

The bank described the estimated costs of the program as “not prohibitive,” especially when targeted at areas where COVID-19 infections are higher.

“When considered relative to other COVID-19 control measures, PSL can be quite cost-effective,” it said.

The SSS already has a system for covering those not in the formal labor force, it said.

“By helping to smooth consumption shocks for those infected, PSL has an important social protection function. Given the low economic costs and multiple benefits of PSL, it should be considered a priority “no-regret” option to help keep the pandemic contained,” it added. — Beatrice M. Laforga

Financial institutions told to tighten guard against dirty money flows related to child porn

THE CENTRAL BANK told financial institutions to address gaps in their risk management capabilities to arrest the emergence of transactions related to the online sexual exploitation of children (OSEC). 

In Memorandum No. M-2020-092, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said BSP-supervised financial institutions are expected to boost their anti-money laundering (AML) and counter-terrorism financing (CFT) processes through the guidance paper, consistent with their respective risk profiles.

“It is essential that the Board of Directors and Senior Management set a proactive tone at the top and establish a culture of risk awareness and compliance within their organizations to ensure effective implementation of a robust AMLC/CFT framework that has the capability to detect and mitigate risks arising from OSEC-related transactions,” the BSP said.

The central bank found that BSFIs need to strengthen areas such as their conduct of risk assessment, customer due diligence, monitoring, as well as suspicious transaction reporting (STR) to better detect OSEC activities.

The regulator recommended money laundering risk assessment exercises conducted periodically, noting this should cover a risk evaluation of OSEC activities for businesses and customers.

In terms of due diligence in customer on-boarding, the BSP found that BSFIs had inadequate controls, which meant policies like customer identification were implemented unevenly in branches and remittance partners. There were also some gaps in handling high-risk customers.

Moreover, risk profiling was “unsophisticated” given the manual process and incomplete information, the BSP said. It noted that some BSFIs missed information, including purpose, expected activity on the account, frequency, volume, value of remittances, country of origin, name and address of remitter and their relationship to the recipient as part of customer risk profiling.

The BSP also flagged certain BSFIs’ practice of not keeping their watchlist database updated as existing customers and personalities with previously filed suspicious transaction reports or involved in negative media reports were not included in the list.

The central bank likewise found that STRs related to OSEC were mostly sourced only from negative media reports and referrals from the Anti-Money Laundering Council (AMLC). Only 24% were from monitoring systems, while those that were from branches and fraud complaints made up 12% and 1% of the total, respectively.

On the other hand, the BSP said BSFIs also employed some “good practices”, including the established process for customer identification and verification and adoption of automated screening process. 

It noted that some BSFIs participate in the AMLC’s Public Private Partnership Program, which gives them access to information on personalities linked to OSEC as well as unlawful activities they could monitor to determine whether transactions need to undergo further investigation.

In September, the AMLC released a study which showed child pornography-related transactions surged to 5,902 during the lockdown from March to May from 369 recorded a year ago. Such transactions would range from P1,000 to P10,000 each.

Based on the agency’s findings, 60% of these transactions were carried out through money service businesses while 35% were done through banks. — Luz Wendy T. Noble

Flying fur prices put fox in focus as mink cull sparks shortage

MILAN/COPENHAGEN  — Denmark’s coronavirus-driven mink cull has put the fur business in a spin, with industry officials expecting fashion houses such as Louis Vuitton, Dior and Fendi to snap up fox and chinchilla to fill the gap.

The global fur trade, worth more than $22 billion a year, is reeling from Denmark’s decision to kill 17 million farmed mink after COVID-19 outbreaks at hundreds of farms led to the discovery of a new strain of coronavirus in the mammals.

Worries of a sudden shortage of slinky mink pelts, of which Denmark was the top exporter, have lifted prices by as much as 30% in Asia, the International Fur Federation (IFF) says.

Now, all eyes are on Finland, where one million mink and 250,000 fox pelts will soon be up for grabs for buyers in Korea, China, the United States and elsewhere next week. Auction house Saga Furs plans to hold the international sale, the first since the Danish cull, via livestream from Dec. 15.

A sales programme offers mink fur from both Europe and North America, such as “Pearl Velvet” and “Silverblue Velvet” mink, in addition to “Silver Fox”, “White Finnraccoon” and Russian sable.

Saga Furs, which last year took over its North American rival NAFA, expects to sell all the pelts, compared with a 55% take-up so far in 2020 as a result of the coronavirus crisis.

“The market will strengthen, an increase in prices will help our business in general,” Saga Furs CEO Magnus Ljung said of the industry, which has seen years of falling prices.

“We’ve already had more requests about foxes, if people see that there is a lack of mink, they could consider using something else,” Mr. Ljung told Reuters.

LVMH’s head of sustainability Helene Valade said this week that the French luxury group obtains fur from Finland. The owner of Louis Vuitton, Dior and Fendi, which relies on brokers to bid, says it is using only 100% certified mink, fox and finnraccoon.

Fur demand has been falling since the 1950s, except for a rise between 2000 and 2013 when it was popular on fashion runways and Chinese appetite for luxury pelts boomed, Lise Skov, an academic who researched the Danish fur industry, said.

A typical mink pelt sold for more than $90 at auction in 2013, while last year skins fetched around $30. This was despite a fall in global production to just under 60 million pelts last year, from more than 80 million in 2014.

Euromonitor predicts the value of fur and fur products, both real and faux, will fall by 2.6% this year.

A Danish breeder-owned cooperative that sold 25 million mink hides last year, or 40% of the global total, is considering selling its brand and other assets after announcing that it would gradually shut down operations over the next 2-3 years.

Kopenhagen Fur CEO Jesper Lauge Christensen told Reuters he had received expressions of interest from Chinese customers to take over the auction house’s brand, which he said could be valued at up to 1 billion Danish crowns ($163 million).

It still plans to sell some 25 million pelts over the next two years, from Danish farms not infected by the virus, frozen stocks and foreign animals.

Animal activists hope the Danish debacle, which has had political repercussions in the country, will finish off the fur industry and demand for items such as $1,700 fur trinkets, $16,000 fur vests and $60,000 fur coats will disappear.

Countries and states which have already banned fur farms or fur products includes Britain, Austria, the Netherlands, France, Norway, Israel and California.

PJ Smith, director of fashion policy at Humane Society International, says that brands still using real fur will ditch it soon, following Gucci, Prada, Armani and others.

But for now, Kopenhagen Fur’s Mr. Christensen said fashion brands in Europe had expressed concern they will not be able to find a similar quality to the Danish mink furs.

“One of the biggest challenges from the brand perspective is that the unique Danish qualities will be disappearing from the collection and you cannot source that product elsewhere.”

He said he was looking at selling warehouse facilities and equipment such as automated vision machinery to grade the skins.

China, followed by Russia, is the biggest buyer of Danish fur as its own mink are considered of lower quality than those raised in Europe, where breeding standards are generally higher.

“We wouldn’t choose Chinese-made fur due to its poor quality,” Zhang Changping, owner of China’s Fangtai Fur, told Reuters, adding that it had already bought enough fur at least for the first half of 2021.

Fangtai would shift to auctions in Finland if Denmark failed to supply enough mink in the future, he said.

Niccolò Ricci, chief executive of Italian luxury designer label Stefano Ricci which has many clients in Russia and eastern Europe, said he expected mink prices to increase by up to 50% but that high-end labels like his would continue to seek top quality pelts, mainly from US suppliers.

“The real shortage could come from 2022, but by then we are hoping mink farmers in Canada, Poland, America and Greece will increase production to replace Danish output,” said IFF head Mark Oaten. Russia and China are also expected to hike output.

“People will also be looking at other types of fur. Fox has been very popular for trimmings, in parkas for example. Wild fur is also becoming more popular, as is chinchilla,” Oaten added. — Reuters