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Filipino athletes compete with coronavirus to strike gold at Tokyo Olympics

A woman walks past a large-scale reproduction of Tokyo 2020 Olympic Games medal at Nihonbashi Mitsui Tower in Tokyo, Japan, July 14. — REUTERS/KIM KYUNG-HOON

By Michael Angelo S. Murillo, Senior Reporter

WEIGHTLIFTER Hidilyn F. Diaz, 30, is one of 19 Filipinos competing in this year’s Olympic games in Tokyo after it got canceled last year amid a coronavirus pandemic.

“We are set to play not only against other athletes but we also have to deal with a deadly virus,” she said by telephone. “It’s just out there and it’s scary.”

Somebody inside the Olympic Village in the Japanese capital tested positive for the coronavirus a week before the games kick off on July 23. More than 11,000 athletes and about 79,000 journalists, officials and staff are expected to attend the global sporting event that runs until Aug. 8.

At least 44 people connected with the games have tested positive since the start of July, most of them contractors, according to the Tokyo 2020 website.

This is despite health and safety protocols contained in a 70-page “playbook” being enforced by Japanese officials.

Under the rules, Olympic participants must be quarantined upon arrival and tested regularly throughout the event. Athletes’ movement inside the Village will be limited and they must leave Tokyo within 48 hours after the games.

Along the way to the July 23 opening ceremonies, International Olympic Committee officials have met resistance, including from Japanese residents. In May, a poll by Asahi Shimbun found that 83% of Japanese voters opposed the Olympics. That resistance seems to have faded, with only 31% favoring a cancellation, according to a June poll by Fuji Television.

The Philippines has a chance of striking gold, with 19 athletes competing in 11 sports,  Philippine chef de mission to the Tokyo Olympics Mariano V. Araneta, Jr. said by telephone.

Both the government and private companies have supported the Philippine team to boost their chances of winning, he said. “Support is being given to them both by the government and the private sector and they are showing much determination.”

The road to the Tokyo Olympics has been a difficult one for Filipino athletes, not only physically but mentally as well.

“We have been preparing for the Olympics for three years now,” Tokyo-bound skateboarder Margielyn A. Didal, 22, told a recent news briefing.

“We were ready to go last year and then it was canceled. We didn’t know if it was happening.”

“I really struggled early in the pandemic,” the native of Cebu said. “For three months, I was unable to skate because it was not allowed and we do not have a skate park in my hometown,” she added.

Despite the challenges, confidence is high that this year could be one of the better years for the Philippines in the Olympics — maybe even the year the country wins its first gold medal.

“We can strike something this year, especially with what everyone has gone through,” Philippine Olympian Association Treasurer Stephen V. Fernandez told a news briefing.

“Our athletes did their best to endure this pandemic and continue with their training and look to succeed,” said Mr. Fernandez, a taekwondo bronze medalist in the 1992 Barcelona Olympics.

“Almost everything in this Olympics is not normal — from the training of the athletes that was greatly disrupted, to the qualification for the different sporting events, and the Olympics proper,” Jose A. Romasanta, former president of the Philippine Olympic Committee and the country’s chef de mission for the 2016 Rio Olympics, said in a Zoom Cloud Meetings interview.

Credit should be given to the athletes for pushing forward with their Olympic dreams despite the pandemic.

“Conditioning definitely is affected by all these cancellations,” he said. “The uncertainty surrounding the Olympics is something they have to bear with mentally,” the former sports official said.

The Philippine Sports Commission, whose budget was realigned to other agencies in the fight against the coronavirus pandemic, has been providing the budget for training and preparation of national athletes, including those competing in the Tokyo Olympics.

The agency has released about P2 billion since 2017 for the national team. It also approved a P46.2-million budget for this year’s Olympic campaign.

It covers the airfare, hotel and accommodation and allowances of athletes and officials, as well coronavirus tests before departure, hotel quarantine expenses and insurance for medicines, COVID-19, travel and possible repatriation.

Meanwhile, companies like the MVP Sports Foundation; Smart Communications, Inc.; PLDT, Inc.; and International Container Terminal Services, Inc. continue to support the athletes.

“We, too, have athletes who are capable of winning,” Mr. Araneta said. “They are up there in the rankings in their respective fields. And when you’re at that level, anything can happen.”

Apart from Ms. Diaz and Ms. Didal, who are among the top 20 athletes in the world in their sports, also part of Team Philippines are US Women’s Open champion golfer Yuka Saso, boxer Eumir Felix D. Marcial and world boxing champ Nesthy A. Petecio, world number 6 pole vaulter Ernest John U. Obiena and world gymnastics champion Carlos H. Yulo.

All have been vaccinated against the coronavirus except for Mr. Obiena, whose father Emerson told an online forum by the Philippine Sportswriters Association his son would get vaccinated after the Olympics to avoid disrupting his preparations.

“Everyone wants to win on that stage,” Mr. Romasanta said. “So you have to do your best. The athletes know what their chances are. But strange things have happened in sports.”

He said there is much work to be done and it does not stop even if the country wins a gold. “If we want to sustain a successful Olympic program, we must continue to fine-tune and reevaluate our strategy and have it in tune with the times.”

“The ultimate goal for every athlete in the Olympics is to win the gold, but it is not going to be given that easy,” said Ms. Diaz, a silver medallist in the 2016 Rio Olympics and a competitor in 2008 and 2012 games.

“It’s a battle among the best of the best in the world.”

Weak asset quality still a concern for banks

BW FILE PHOTO

MORE THAN HALF of banks in the Philippines still expect nonperforming loans (NPLs) to continue to rise over the next two years due to the economic downturn, a Bangko Sentral ng Pilipinas (BSP) survey showed.

The BSP’s Banking Sector Outlook Survey for the first six months of 2021 showed 58.9% of the respondents expect their NPL ratio to go beyond 5% in the next two years. However, this is lower than the 63.5% of the respondents that anticipated this outcome in the survey for the second semester of 2020.

“The impact of the COVID-19 pandemic on the domestic economy resulted in banks’ subdued optimism on the country’s economic prospects,” the central bank said.

“Nonetheless, the overall outlook in the banking system remains stable as banks intend to maintain risk-based capital and liquidity buffers; enhance their risk management systems to safeguard financial system stability; and strengthen organizational conduct and risk culture in order to thrive amid the volatility and complexity of the operating environment,” it added.

The industry-wide NPL ratio stood at a 13-year high of 4.49% in May as bad loans surged by 83% to P479.481 billion from a year earlier, based on latest BSP data. The BSP expects the banking industry’s NPL ratio to be a little above 5% by end-2021.

“The banks’ projections are consistent with the BSP’s NPL estimates for the year 2021. The enactment of the Financial Institutions Strategic Transfer (FIST) Act as well as the issuance of its implementing rules and regulations in the first semester of 2021 will help limit buildup of NPLs in the financial system,” BSP Governor Benjamin E. Diokno said in a statement.

Amid projections of an elevated NPL ratio in the next two years, banks also appeared to adopt a more prudent stance in the management of credit risk.

The survey found that 54% of respondent banks expect to report NPL coverage ratio of more than 50% to 100%. This is higher than the 44.3% that said they intended to report higher NPL coverage ratio in the prior survey.

BSP data showed NPL coverage ratio — which indicates the allowance for potential losses due to soured loans — declined to 79.96% in May from 97.31% a year ago.

Meanwhile, 43.5% of lenders, mostly foreign banks, thrift banks, and rural commercial banks expect to see their restructured loan ratio to reach more than 5%, reflecting banks’ willingness to modify loan terms.

On the other hand, universal and commercial banks expect a more conservative restructured loan ratio of 2% and below.

Restructured loans made up 2.47% of banks’ lending portfolio as of May.

In the next two years, nearly three-fourths (72.7%) of respondent banks expect double-digit growth in their loan portfolios on the back of expected improvements in economic situation.

“The progress in the country’s vaccination rollout is expected to sustain loan growth due to consumer and business confidence and higher loan demand,” the BSP said.

Six in 10 surveyed banks also expect double-digit growth in bank assets.

Based on the study, 41.9% of banks surveyed said gross domestic product (GDP) will likely grow by around 5-6% in the next two years. One in five banks are more bullish, projecting GDP growth to reach 6-6.3%.

To recall, the government is eyeing a 6-7% growth in 2021 and 7-9% by 2022. — Luz Wendy T. Noble

Fruitas opens more stores, nears target count

FRUITAS Holdings, Inc. has recently opened more community stores and is on course to reach its target openings by the end of the year.

The listed food and beverage kiosks operator said in a stock exchange disclosure on Wednesday that it now has 74 operating community stores as a result of the new openings and is nearing its goal of opening 100 community stores by the end of 2021.

Fruitas recently opened a Soy & Bean community store in One Stop Lagtang, Talisay City, in addition to the community stores in Cebu City and Lapu Lapu City.

“This comes as Fruitas is establishing a processing line to manufacture products in Cebu. The commissary setup is a precursor for an aggressive expansion of community stores and e-commerce hubs in the Visayas. This will complement the existing production facilities in the Metro Manila,” the company said.

Other recently opened community stores are located along Sumulong Highway in Antipolo City and Aguirre Avenue in Parañaque City.

According to Fruitas, the rollout of its community store network is part of efforts to widen distribution channels and be closer to high-density residential areas.

“These community stores are also instrumental in serving as delivery hubs as Fruitas intensifies its efforts to build its online presence, not only through its CocoDelivery service and own website, but also through its major delivery and online partners,” the company said.

Meanwhile, Fruitas said it is confident that the business will maintain its recovery momentum for the year despite the potential spread of the Delta variant of the coronavirus disease 2019 (COVID-19).

Fruitas President and Chief Executive Officer Lester C. Yu said the company remains committed to continuously bring its products to customers amid the pandemic.

“The pandemic forced us out of our comfort zone. But we have quickly regrouped. We are continuing to transform Fruitas by relying on our strengths of being nimble, of building brands, and by maximizing the efficiency of our resources and facilities,” Mr. Yu said.

“We strongly believe our business is now stronger and more capable to withstand the challenges brought about [by] potential new lockdowns and other health safety practices,” he added.

Fruitas posted a P16-million net loss for the first quarter, a turnaround from the P15-million net income it had last year. Revenues of the company fell 30% to P261 million.

Shares of Fruitas at the stock exchange fell 0.77% or one centavo to end at P1.29 apiece on Wednesday. — Revin Mikhael D. Ochave

Premiere Horizon enters P2.5-B financing deal

PREMIERE Horizon Alliance Corp.’s (PHA) board of directors inked a put option agreement with global investment firm LDA Capital Ltd., the listed company said in a disclosure on Wednesday.

“The funds to be generated from this agreement are expected to fund the working capital requirement of the parent company and finance the different projects of its subsidiaries including the real estate projects of West Palawan Premiere and Goshen Land Capital,” Premiere Horizon said.

“The capital raised will be utilized to fund other expansion projects in natural and georesources development and in fintech such as SquidPay Technology, which is expected to be folded-in to PHA this third quarter,” it added.

LDA Capital will provide the company as much as P2.5 billion in equity capital within the next 36 months. A call option is also granted to LDA Capital.

The firm may buy up to 133 million common shares of Premiere Horizon any time during the term of the agreement for an exercise price of P2.26 apiece, which is said to be a 133% premium on the average volume weighted average price (VWAP) in the past month and a half.

Meanwhile, Premiere Horizon can access the equity financing by exercising put options.

“PHA has the right, but not the obligation, to draw down from this equity commitment with the first Put Option Notice (PON) to be done within 45 days,” Premiere Horizon said.

The number of shares to be issued will be based on the average volume of shares traded 15 days before Premiere Horizon issues every PON. Its issue price will be 90% of the average VWAP of the shares 30 days following the put option exercise.

The company said the potential value for both put options and call options stand at P2.8 billion.

“The number of shares will depend on the prices during the pricing period since these will be spread over a period of three years and subject to different pricing,” the company explained.

Premiere Horizon will pay a commitment fee worth two percent of the committed equity capital, half of which will be settled via proceeds of its first PON.

The balance will be paid on the 12th month and the 18th month. Premiere Horizon may also settle the remaining amount earlier.

Premiere Horizon will be disclosing all put option agreement transactions via the exchange. It assured that LDA Capital’s subscription to the company will not go beyond 19.9% of its issued and outstanding shares.

Shares of Premiere Horizon at the stock exchange declined by 5.52% or eight centavos on Wednesday, closing at P1.37 each. — Keren Concepcion G. Valmonte

Japanese chain uses Pinoy ingredients to support food producers during pandemic

Ebi Ten Donburi

JAPANESE food chain Tenya, founded in 1989 by Yoshio Iwashita, has launched a menu called Tenya Lokal in its Philippine franchise that uses local ingredients from local food producers. This is part of the company’s coronavirus response, which aims to help food producers in the country.

“This is our way of giving back to the communities of farmers and fisherfolk who have been our partners since we started out,” said Leopoldo “Chukri” Prieto III, Tenya’s Managing Director in a statement. Tenya arrived to the Philippines in 2015 through the Prietos’ Cavallino, Inc., which is also behind Racks and Rackshack restaurants.

“We hope that in our own way, Tenya is able to help jumpstart the road to recovery for these people. We felt it was important to call attention to the pressing needs of our food producers. With our countrymen’s support, we can assure their livelihood,” Mr. Prieto said.

The company’s coronavirus pandemic response has included donating food to frontliners (even adjusting a Buy One, Share One promo in which for each meal ordered, one sponsored a meal for a medical frontliner).

“It has been our goal to position Tenya as a socially responsible brand,” said Eric Fontillas, Marketing Manager of Tenya in the Philippines during a press conference on July 16. He also mentioned that they partnered with the Make A Wish Foundation two years ago, as well as fed partner communities of Hands On Manila last Christmas.

The items in the Tenya Lokal menu that use local ingredients include donburi (rice bowl with toppings), chicken karaage (breaded and deep-fried), buta (pork) karaage, ebi (shrimp), gyudon (beef bowl), and white fish fry. The shrimps and prawns are sourced from Bohol, and the white fish from Zamboanga. The chicken and pork are sourced from Central Luzon.

Meanwhle, the Ramen Komori with Maki are is made with locally produced noodles and locally milled rice. Bento Box selections also get the local treatment with seafood tempura, buta yakiniku (grilled pork), sukiyaki bento, and chicken teriyaki.

“Now we’re looking at it to be more on a permanent basis,” said Tenya Philippines General Manager Edmundo Ramos, citing the good response from stores when they started the promo earlier this month.

The price points for the items are quite accessible: from P125 to P245. In fact, it was noted that some menu items had been more expensive prior to the switch to local ingredients. “It’s also maybe a way that we would like to raise consciousness about food security,” said Mr. Ramos.

All noble efforts, but when it gets down to it, does doing good taste good? “Definitely. One-hundred percent,” said Mr. Ramos. “I can say that with a straight face. Our prawns, our shrimps, are much better than what you can have in Western countries.”

Tenya branches are located in SM Megamall, Market! Market!, SM Southmall, ASEANA City, Festival Mall, Paseo de Magallanes, Tiendesitas, Ayala Malls Circuit, and Timog Avenue. — JLG

Netflix eyes mobile video games amid slowing subscriber growth

NETFLIX, Inc. said it would make a deeper dive into video games as the movie and TV streaming service projected weak subscriber growth amid growing competition and the lifting of pandemic restrictions that had kept people at home.

The company’s shares hovered about even at $531.10 in after hours trading on Tuesday.

Netflix is weathering a sharp slowdown in new customers after a boom in 2020 fueled by stay-at-home orders to curb the COVID-19 pandemic. In the United States and Canada, Netflix reported losing about 430,000 subscribers in the second quarter, only its third quarterly decline in 10 years.

The streaming video pioneer said it was in the early stages of expanding its video game offerings, which would be available to subscribers at no extra charge. The company will initially focus primarily on mobile games.

“We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV,” the company said in its quarterly letter to shareholders.

The multi-year effort will start “relatively small” with games tied to Netflix hits, Chief Operating Officer and Chief Product Officer Greg Peters said in a post-earnings video interview.

“We know that fans of those stories want to go deeper. They want to engage further,” Peters said.

Netflix has dabbled in video games with a few titles linked to series including Stranger Things and The Dark Crystal: Age of Resistance.

Some analysts have said the company that dominates streaming video needs to find new ways to jump-start subscriptions after years of rapid expansion. According to eMarketer, Netflix’s share of US revenue from subscription streaming video will shrink to 30.8% by the end of 2021, from nearly 50% in 2018.

“Netflix delivered another underwhelming quarter as competition in the streaming space heats up,” said Investing.com Senior Analyst Jesse Cohen. “The absence of any new looming growth catalysts has been one of the main reasons for Netflix’s relatively mild performance this year.”

Co-CEO Reed Hastings said gaming and other ventures such as podcasts and merchandise sales will be “supporting elements” to help attract and retain customers to its core business of streaming videos.

The company projected it would add 3.5 million customers from July through September. Wall Street had expected a forecast of 5.5 million, according to analysts surveyed by Refinitiv.

For the just-ended quarter, Netflix added 1.54 million customers, beating analyst projections of 1.04 million. Total subscribers numbered 209 million at the end of June.

A year ago, Netflix picked up 10.1 million subscribers in the second quarter.

This year, Netflix felt the impact of COVID-19 on TV production, which left the company with a small menu of new titles. At the same time, Walt Disney Co.’s Disney+, AT&T, Inc.’s HBO Max and other services attracted customers, and summer blockbusters returned to movie theaters.

The easing of pandemic safety measures also lured people out of their homes and away from their televisions.

Earnings for April through June came in at $2.97 per share, below the average forecast of $3.16.

Netflix promises a heavier lineup in the second half of 2021, including new seasons of You,  Money Heist and The Witcher.

If its subscriber forecast pans out, Netflix will have added more than 54 million subscribers over the past two years, a pace consistent with its annual additions before the COVID-19 pandemic, the company said.

It also noted that streaming television still accounts for a small portion of overall viewing time and that its service is less mature outside the United States.

“It’s still an enormous prize and we are still in the best position to run after it,” Co-CEO Ted Sarandos said. — Reuters

A Brown files shelf registration of 50-M shares

A BROWN Co., Inc. has filed for the shelf registration of 50 million cumulative, nonvoting, non-participating, and nonconvertible peso-denominated perpetual preferred shares, along with an offer supplement for its initial P1.5-billion offering.

The company on Wednesday said it submitted a registration statement to the Securities and Exchange (SEC) on Monday. It is subjected for the commission’s review and approval.

The 50 million offer shares will be sold in tranches within three years from the effectivity of its registration statement.

For its first tranche, the company will sell 10 million preferred shares for P100 each, with an oversubscription option of up to five million preferred shares to raise as much as P1.5 billion.

A Brown aims to use proceeds from the first tranche to support the development of its real estate projects in the pipeline, landbanking activities, funding for subsidiary Irradiation Solutions, Inc., and for other general corporate purposes.

“It is in a position to venture into pockets of growth areas as seen in the current thrust to supply the necessary housing inventory to address the backlog in the economic and socialized segments,” A Brown said in a statement.

The company is planning to allocate as much as P600 million for its property developments in Tanay in Rizal, Bukidnon, Butuan City, Misamis Oriental, and Cagayan de Oro.

It added that it has eight ongoing projects in Cagayan de Oro and Butuan City, with 17 more in the pipeline covering 400 hectares.

Meanwhile, up to P400 million will be spent on landbanking initiatives in Tanay, Rizal, Cagayan de Oro City, Butuan City, and Bukidnon.

“Landbanking is focused on areas where the company has local presence and a competitive advantage. Properties adjacent completed and ongoing projects will support expansion phases,” A Brown said in its offer supplement.

“The company is also looking into new areas where it can consolidate sizable portions to come up with integrated mixed-use developments,” it added.

The company currently has 293 hectares in its land bank.

Should the company need additional capital to fund land acquisitions, it plans to tap internally generated funds and credit lines from local banks.

Around P350 million from the proceeds will be allocated for the funding requirements of Irradiation Solutions, A Brown said. The subsidiary is developing its Tanay Multipurpose Irradiation Facility Project, which is aimed to be the first commercial E-Beam irradiation facility in the country.

The company assigned PNB Capital and Investment Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.

On Wednesday, shares of A Brown at the stock market went down by 1.11% or one centavo to close at 89 centavos apiece. — Keren Concepcion G. Valmonte

Gov’t fully awards 10-year bonds

THE GOVERNMENT made a full award of the 10-year Treasury bonds (T-bonds) it auctioned off on Wednesday even as its rate was slightly higher than the secondary market level due to worries over the highly infectious Delta variant of the coronavirus disease 2019 (COVID-19).

The Bureau of the Treasury (BTr) raised P35 billion as planned from its auction of fresh 10-year bonds on Wednesday and even opened its tap facility to borrow another P5 billion via the tenor as the offering was two times oversubscribed, with total tenders reaching P72.956 billion.

The 10-year notes fetched a coupon rate of 4%, slightly higher than the 3.927% quoted for the tenor at the secondary market, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

The coupon was also 105.2 basis points higher than the 2.875% coupon for the BTr’s most recent issuance of fresh 10-year papers, which was on July 9, 2020.

National Treasurer Rosalia V. de Leon said the bond auction saw good participation as the rates seen were aligned with secondary market levels.

A bond trader, meanwhile, said the tenor’s coupon fell within the higher end of market expectations due to the growing concerns over the impact of the Delta variant of COVID-19 on the economy’s recovery.

“One reason is that people are now starting to monitor the Delta variant, which may result in another round of restrictions that may limit economic activities,” the trader said via Viber.

President Rodrigo R. Duterte on Monday evening said the government may have to tighten restrictions again to avoid the further spread of the highly contagious Delta variant.

Metro Manila mayors also asked the interagency task force on the pandemic response to recall an earlier decision allowing children to go outdoors amid the emerging threat of the new variant.

The Health department last week reported that cases of the Delta variant of COVID-19 in the country stood at 35. Of these, 11 were locally acquired, while five were cases from returning overseas Filipinos. Eight of these cases are active while three have died.

There were 4,516 new COVID-19 cases recorded in the country on Tuesday, which brought the number of active infections to 46,806.

Analysts have warned that a return to strict lockdown measures could dampen recovery prospects as this would limit economic activity and affect consumer and business sentiment.

The Treasury is looking to raise P235 billion from the local market this month: P60 billion via weekly offers of Treasury bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion this year from domestic and external sources to help fund a budget deficit that is seen to hit 9.3% of gross domestic product. — Beatrice M. Laforga

How to host high tea: a lesson

FIRST: a vocabulary lesson. People tend to think of high tea as a more formal occasion than afternoon tea. High tea is actually more informal and was called such because of the height of the table used during that meal with heavier tea, almost like a prelude to supper. An afternoon tea is what you’re after when you’re thinking of fine china and muslin dresses.

Dilmah Tea CEO Dilhan Fernando hosted tea on the company’s YouTube channel in a discussion titled How to Host a Revolutionary High Tea on July 16. While in a sense, he was hosting a tea for the world, the company had done that already with a series of competitions called the Dilmah Real High Tea Challenge beginning around 2007. For the challenge, the company traveled the word (hopping about from the Middle East to Europe to New Zealand, and many of the countries between them) awarding prizes to innovative dishes to serve with tea.

“It’s no longer about scones; no longer about cucumber sandwiches,” Mr. Fernando said of high tea. “That’s good, but things have changed.” He recalled a good memory of having been served empanadas with tea in Latin America. “Our Dilmah Real High Tea revolution was about sustainability, respecting ingredients — it was about the personality of the people that were presenting.

“It was about afternoon tea specific to the people, the ingredients of each location.”

The 2012 National Champions for Australia and the Sustainability Champions for the global competition Selvana Chelvanaigum and Ian Jones joined the video through a video call, and showed why they won.

Mr. Jones started by pouring Dilmah’s Berry Sensation in flutes dusted at the rim with pulverized strawberries. He plopped strawberry slices in each one, then topped it off with prosecco.

Ms. Chelvanaigum, meanwhile, talked about the dishes: cured barramundi with caramelized potato, beef in a red wine sauce in puff pastry, and a brown sugar apple filled with fennel crumble and uda watte (a single origin tea offered by Dilmah) jelly; and poached apple with Dilmah Chai syrup. Gesturing to a wooden stand on her counter, she said that it was made from polished wood that had been discarded. “You don’t always have to have a stand that you bought in a shop,” she said.”This is a good way to keep sustainable instead of buying new things.”

Mr. Jones, after decanting and pouring a second pot of tea (a bit conventional, and no longer in the style of the previous spritzers) gave tips on serving tea. “You don’t need to have, as you said, cucumber sandwiches and high tea stands, or things like that. You can have a high tea with just a few little things. Just make the tea properly, and enjoy your high tea.” — JLG

Regulator says expertise needed to better prevent software piracy in PHL

GOVERNMENT software piracy inspectors will need additional technical knowledge to assess firms that potentially breach licensing rules, the Optical Media Board (OMB) said.

“If the enforcement arm of the government is to go after these so-called pirates or counterfeiters, we have to be at par with them in terms of their technical know-how,” OMB Legal Division Chief Cyrus Paul S. Valenzuela said at a press briefing on Wednesday.

“We can always check their computers, but in terms of technical know-how, most of the time their IT guy would know better than us.”

Mr. Valenzuela said OMB needs help from software developers to support inspection measures.

Software Alliance Asia-Pacific Senior Director Tarun Sawney said violators find “ingenious ways” of hiding unlicensed software.

Software Alliance (known as BSA) recently launched a campaign to reach out to 5,000 Philippine firms, mostly in the engineering and design sectors, to promote software licensing through consultations and advisory services.

The global software advocacy organization estimates that there are still 100,000 design and engineering companies using unlicensed software in Southeast Asia. In partnership with software company Autodesk, Inc., the campaign aims to reach a total of 20,000 firms in the region.

This “Legalize and Protect” initiative continues a licensing campaign initially launched in 2019.

The organization last year also rolled out online consultation sessions on legal software use as part of its goal of helping 10,000 Philippine companies convert to licensed products. BSA had noted a spike in cybersecurity attacks during the pandemic, part of which is caused by device vulnerabilities from illegal software use.

“It was fairly successful,” Mr. Sawney said, but he did not share the number of firms BSA helped convert to licensed products.

BSA is a Washington, DC-based trade group representing software companies worldwide. — Jenina P. Ibañez

Financial technology firms to help boost small businesses’ reach, competitiveness

SMALL BUSINESSES should take advantage of financial technology (fintech) to boost their operations and become more competitive, experts said at an online forum.

Going online and adopting digital payments will give small firms in the country a chance to reach more potential customers, improve their operations and boost sales, Mitch Padua, chief product officer of mobile wallet firm PayMaya Philippines, said at a BusinessWorld Insights forum on Wednesday.

“Using digital payment solutions increases business efficiency, improve your overall business operations, even your reconciliation, gives you better insights on your customer and about your business as well. It also legitimizes your business if you’re able to accept all types of payments,” Mr. Padua said.

Robertson Chiang, chief operating officer and chief technology officer at Dragonpay Corp., said fintech allows businesses of various sizes to go online and compete, unlike before the pandemic when only firms that can afford mall spaces could reach customers easily.

“Going online is a big equalizer because you cannot really distinguish between a small seller and a big seller based on their website,” he said.

As the coronavirus pandemic prompted a shift to online payments, Mr. Chiang said transactions using mobile wallets surged to make up 64% of total transactions last year from its 21% share in 2019.

This made e-wallets the dominant payment method to date, he said, replacing cash which had a 67% share in total payments in 2019 but declined to just 24% in 2020.

In the first half, e-wallet transactions made up 71% of the total transaction volume, followed by cash (21%) and online banking (7%), he added.

“The trend [of going digital] seems to be continuing… Assuming the second half of the year will be about the same as the first half, then we’re looking at almost double again of our transactions in 2020,” Mr. Chiang said.

GCash Chief Commercial Officer Frederic Levy said they expect the volume of transactions via their mobile wallet to more than double this year to over P2 trillion from P1 trillion in 2020.

“That gives an idea on how things get faster and how Filipinos start to have a very clear picture of the advantage of this new type of financial journey,” Mr. Levy said.

Even after the pandemic, he said majority of Filipino consumers will likely continue using at least one digital payment platform.

“The consumer is now going in that direction so I think it’s getting more and more obvious in any form of business from small ones to big ones, that they need to have this digital payment [option available] to consumers,” he added.

Aside from electronic payment solutions, fintech can also offer digital lending schemes to micro-, small- and medium-sized enterprises (MSMEs) in need of working capital, said Shailendra Soni, ICT and fintech head at research and consulting firm Frost & Sullivan.

“One study showed how getting a loan at the right time can propel the growth in MSMEs — around 2-2.5 times of growth in 5-7 years. That’s how significant it is. The [key] now is having the right network, reaching out to the right kind of people with the right technology, which MSMEs will likely embrace,” he said.

While the future for digital payments in the country looks bright, Mr. Soni said the Philippines still has to improve its peer-to-peer lending (P2P) schemes to catch up with its Southeast Asian peers and give businesses more financing options.

For instance, he said it takes around five days for local banks and P2P companies to extend a loan, while this can be done within 24 hours in Singapore.

In entering partnerships, Mr. Padua said businesses should look at a fintech solution that can service both online and offline payment methods and cover all types of payment options.

“The other thing is competitive rates, because at the end of the day, each partner, each payment solution will have different rates and someone that can help you blend all of those partner payment types into one simple rate for you will make your life easier,” he said.

“Cash is still strong, not sure that cash is still king, but more and more Filipinos are getting used to digitalize their transactions in any form and have access to deeper financial journey,” GCash’s Mr. Levy said. “What we learned from the pandemic is that a lot of Filipinos were totally excluded from the financial journey and it shows how important for them to have access and for us companies to provide them some solution.” — Beatrice M. Laforga

PCMC targets 35 stations this year

BROADCAST firm Philippine Collective Media Corp. (PCMC) said it would double its stations to 35 areas this year.

The television and radio company with 18 stations is searching for 17 more potential sites in “underserved areas” in the country, the company said in a press release on Wednesday.

“We will be going to Southern Leyte, Maasin, and Bacolod. Those are site inspections and technical inspections after which we will start constructing the studios there and after a month and a half, we will be launching the studios,” PCMC President Sofonias Gabonada, Jr. said.

“Our motivation really is to provide alternative sources of information and entertainment, most importantly to areas that were underserved. Although there are local stations in the area, it’s also important to come up with a network type information delivery system both for TV and radio,” he added.

He said that the company has more expansion plans as it prepares for coverage of the 2022 elections, reaching out to “veteran and well-known personalities” for its coverage.

The company has also partnered with the Department of Education to air educational program Radyo Eskwela.

PCMC started operations in Tacloban in 2009 after it was founded by Leyte Rep. Ferdinand Martin G. Romualdez.

Listed company Prime Media Holdings, Inc. in May signed a memorandum of understanding with PCMC shareholders for a share-for-share swap agreement to create a “a viable and operational enterprise.” — Jenina P. Ibañez