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Globe recreates Christmas for all Filipinos in this year’s fully digital Wonderful World of Globe

Christmas is fast approaching and yet, the realities of celebrating the holidays with a pandemic can be difficult for most Filipino families today. Despite this, the desire to enjoy our usual holiday activities and observe cherished local traditions remain strong in many of us. After all, the true spirit of Christmas is about hope, joy, and the eternal anticipation of good tidings.

Uplifting the lives of Filipinos and rekindling Christmas cheer in everyone’s hearts underscore this year’s Wonderful World of Globe (WWG).  “Our aim is to recreate the Christmas we all love. We take to heart our role in renewing the spirit of connectedness within the Filipino family especially at a time when most of us stay within the confines of our homes.  It is also a great opportunity for each of us to do more for others and continue spreading cheer to everyone we can reach,” said Ernest Cu, Globe President and CEO.

As quick, easy and flexible internet access became the new essential, this year’s WWG is the perfect time to launch the revolutionary product offer of Globe. Surf4ALL is a first-of-its-kind, fully convergent data offer that knows no boundaries across Globe brands.  This promo gives you high GBs for all sites and a shareable GB allocation that is seamlessly accessible to up to 4 users or devices. Now, you can share data with Globe Prepaid, Globe Postpaid, Globe Platinum, Globe At Home Prepaid WiFi, and even TM.

Available through the GlobeOne app, Surf4ALL has 2 promos – Surf4ALL99, which gives you 9GB of shareable data, and Surf4ALL249, with 20GB shared access (15GB + 5GB limited-time bonus data). Both offers are valid for 7 days.  It’s the only data product of its kind in the Philippines today to ensure no one is left behind when it comes to connectivity.  This is the true universal data offer for all Globe customers which makes it possible to be constantly connected regardless of brand, device, and location.

The combination of Globe’s ever-improving network and the innovative Surf4ALL product gives Filipinos the ability to really make the holidays richer and better, by giving them access to daily essentials and services they will find both useful and enjoyable throughout the season.

As online shopping continues to surge in popularity, 917Ventures, the largest corporate incubator in the Philippines, partnered with Puregold to create PureGo, an online grocery shopping platform that delivers groceries at one’s doorstep with a next day delivery promise, using multiple payment options including GCash.

Recreate Togetherness  

Enjoying various content such as video, music, games, and sports can enhance family bonding so Globe partnered with Riot for special data offers for League of Legends: Wild Rift the mobile version of the highly-popular League of Legends.

And, with the continuous expansion of Globe’s 5G service, more exciting forms of innovation can be expected for Globe customers. One of which is coming from the partnership of Globe with Niantic. As the first Southeast Asian telco member of the Niantic Planet-Scale AR Alliance, Globe will drive bigger and better immersive gaming experiences powered by Niantic’s advanced AR real-world platform that will push the boundaries of what can be experienced in a Niantic game with 5G technology. Niantic is an AR company, inspiring people to explore the world together.

Another interesting 5G-enabled service that brings entertainment to a whole new level is from Globe’s official partnership with YouTube VR. This will enable users to watch and explore VR content in-app through the affordable yet effective Globe VR cardboard. This further enhances the customers’ online entertainment experience and online learning at home.

Through a new partnership with HBO GO, Globe offers a raft of award-winning entertainment to the digital Filipino. With HBO GO, Globe customers can watch thousands of hours of shows and movies any time anywhere using their connected device. Filipinos can stream or download HBO Originals, HBO Asia Originals, Korean and Chinese dramas, Hollywood blockbusters, hundreds of hours of kids and family content and more, including Sam Mendes’ war film 1917, Spider-Man: Far From Home starring Tom Holland, Christopher Nolan’s The Dark Knight trilogy and Cartoon Network’s We Bare Bears: The Movie.

Globe also joined hands with Kumu, a Pinoy-centered live streaming platform, which is home of local and global user-generated Pinoy lifestyle content, and digital content partners like GKNB (Game Ka Na Ba?), a gamified FYE (For Your Entertainment) focused on celebrity streams, talk shows, variety content and MYXPH for music. Kumu will also be adding game streaming channels into their mix as part of their offerings on the platform.

Recreate Gift-Giving

What is Christmas without presents?  Gift-giving is a tradition that goes back to the wise men that visited the nativity.  And while everyone loves presents from family and friends, some of the best gifts come when people share their blessings with those they may not know well but who need help.

To help vulnerable communities during the pandemic, Globe Platinum has partnered with World Vision to create the #ForFutureHeroes program. It consists of virtual experiences in collaboration with BGC Arts Center, Electric Studio, and others that allow Globe Platinum customers to pursue their passions at home while making an impact on others. Participation in every activity is matched by Globe Platinum with World Vision school kits filled with DepEd approved learning modules and supplies, so the children of Baseco Compound, Manila can continue their education.

On top of this, Globe Platinum customers have been delighting frontliners, who have worked so tirelessly to keep Filipinos safe all these months, through the Thank-A-Hero program. Apart from sending them treats from Auntie Anne’s, Coco, The Cookie Bar, and JCo Donuts,  Globe Platinum is also preparing a Noche Buena feast for our frontliners, to thank those who will be hard at work all throughout Christmas Eve, keeping Filipinos safe.

Recognizing the pressing demand of educators for a fast, reliable, and affordable internet connection, Globe At Home initiated WiFi2Teach which supports the DepEd’s Distance Learning program through the donation of Globe Prepaid WiFi modems. Modems have been donated to the DepEd to equip selected public school teachers and ensure that education remains unhampered. The program continues as it now works towards raising funds to provide free WiFi modems for public school students. In partnership with Ayala Foundation, for every Globe At Home Prepaid Wifi sold, P100 will be donated to help fund internet connectivity of selected public school students at home.

To give small and medium enterprises the much-needed boost, Globe myBusiness’ Gift Local campaign encourages everyone to patronize local products for their Christmas gift-giving.

GCash brings to life our beloved Christmas traditions with ChristMAS KAYA with GCASH, where celebrations and gift giving are made possible thru innovations like GCash Send Aguinaldo, enabling users to send digital gift envelopes as aguinaldos to their inaanaks and pamangkins, and even gifting insurance thru the app’s GInsure service. In the same spirit of giving and bayanihan, our customers may also donate to typhoon victims using GCash and their Globe Rewards points.

GLife, the newest GCash app feature, likewise, provides more gift and handaan options across different brands and e-commerce platforms, ranging from Lazada, Puregold, DataBlitz, Purego, Boozy, Goldilocks, Goama Games, and more.

It is indeed ‘Merry GCash!’ this Christmas, as GCash is also giving up to 30 million pesos worth of prizes just by using the app. Leading up to a few days to Christmas, consumers can get gifts just by buying load, or using GCredit to pay when they shop on their favorite online platforms. They will also get a chance to win a gift of their choice in the grand raffle.

Recreate Local Traditions

In the past, many Filipino families would look forward to the well-loved tradition on Christmas Day of watching the annual Metro Manila Film Festival which showcases local filmmakers and artists.  This year, Globe and GMovies has partnered with the MMFF and UPSTREAM to recreate the MMFF tradition and bring this year’s nominated films online to Filipino homes around the nation and all over the world.

WWG also banners Filipino talents supported by Globe, celebrating the athletic achievements of such stars as 12-time 8-division boxing world champion and global icon Manny Pacquiao, Tennis child prodigy and Australian Open doubles champion Alex Eala, PH rep to FIBA 3X3 World Tour, Manila Chooks TM Team, ONE Championship’s martial arts stable Team Lakay. Globe also supports a roster of amazing local music artists and local greats with tremendous fan bases like December Avenue, Ben&Ben, SB19, The Juans, and Donnalyn Bartolome.

“We are looking forward to these exciting events that Globe has lined up for year-end and for 2021. Our commitment to our customers remains as we usher in a digital Philippines in the near future. Thank you for the support and for being with us in this journey.” said Jaime Augusto Zobel de Ayala, Chairman of Globe.

Globe believes that with the people’s collective energy and ingenuity, everyone can still make wonderful memories this Christmas and help see them through a new and better normal.

Globe is a signatory to the United Nations Global Compact and has committed to implement sustainability principles hinged on four pillars including One Digital Nation, Care for the Environment, Care for People and Positive Societal Impact. Globe is actively supporting 10 UN Sustainable Development Goals

For more information about Globe, visit www.globe.com.ph

Feeling pressured to buy Christmas presents? Read this (and think twice before buying candles)

Research suggests Christmas gift-giving is less about altruism, and becoming more about social pressure to reciprocate—the expectation that when we receive a gift, we will give one in return. And reciprocity does not necessarily bring happiness.

Christmas marks a peak in consumerism across the West. Despite the COVID downturn, this Christmas the spending frenzy is unlikely to be dampened.

One consumer sentiment survey showed about 12% of people expect to spend more this Christmas than in previous years. About one-third expected to spend less—a similar result to previous years. And retailers are also feeling optimistic: more than one in three expect Christmas sales to exceed 2019 by more than 5%.

All this festive spending creates significant waste, particularly in the form of unwanted gifts.

So before you finish your Christmas shopping, it’s worth considering why we feel forced to spend big on gifts during the silly season, and whether there are better, greener alternatives.

Research by ING found A$400 million worth of unwanted presents were gifted in Christmas 2018, comprising about 10 million items.

Topping the list were novelty items (51%), candles (40%), pamper products (40%), pyjamas or slippers (35%) and underwear or socks (32%).

Charity groups are inundated with unwanted goods directly after Christmas. Not all of these are resold—charities reportedly send about 60,000 tonnes of unwanted items to landfill every year.

This waste comes at a huge cost, not only to household budgets but also to the environment. Recent research on the topic is hard to come by, but in 2007 researchers from the Stockholm Environment Institute examined consumption over the festive season, and found 80 kilograms of carbon dioxide per person could be saved if unwanted gifts were not purchased.

Gift-giving is a complex emotional process. And it’s not necessarily always a positive experience: a 2016 survey found 43% of Australian shoppers felt forced to spend money at Christmas.

Research suggests Christmas gift-giving is less about altruism, and becoming more about social pressure to reciprocate—the expectation that when we receive a gift, we will give one in return. And reciprocity does not necessarily bring happiness. One study dating back to 1990 found those who gave an obligatory gift had negative feelings about the act afterwards.

In particular, some respondents felt their freedom to choose a gift was curtailed by perceived obligations—that they had to reciprocate with a gift of similar type, price or brand. This triggered psychological “reactance”—the unpleasant arousal people experience when their free behaviors are threatened.

Gift-giving can be a way of showing appreciation, but you don’t necessarily need to spend up big. Research shows while gift-givers might expect a gift to be appreciated more if it was expensive, recipients reported no such association.

Or you could spend nothing at all, by regifting an unwanted present. In some circles of contemporary society, regifting is frowned upon. Respondents in one study went so far as to describe regifters as lazy, thoughtless and disrespectful.

However in some cultures, regifting is considered normal. For example, a classic 1922 ethnographic study describes a ritual followed by people of the Massim archipelago in Papua New Guinea. Called Kula, it involves people travelling to a nearby island and presenting residents with shells and necklaces. The recipients would keep the gifts for a time, then pass them to others, and on it went.

To these islanders, keeping gifts destroyed the value created by the act of giving, while regifting maintained it.

There are lots of ways to give a gift without hurting the planet. And since the COVID-19 pandemic forced many activities online, the options are even greater. Here are five options:

  1. Virtual and digital gifts — These range from electronic gift vouchers that allow the receiver to buy what they really want, to subscriptions to streaming services, audiobooks, and even virtual bouquets.

Due to COVID, virtual travel, which began for many as a temporary measure, may now be around to stay. Or you could gift a virtual Christmas event such as cooking classes, cocktail-making experiences, and virtual craft workshops.

  1.  Give an experience —  Experiences are events such as concerts, jet boating, spa treatments or a romantic evening cruise. Research shows experiential gifts contribute more to consumer happiness than material purchases.

Giving experiential gifts also strengthens social connections between givers and recipients.

  1. Regift — Regifting, if done thoughtfully, can be a great way to avoid unwanted presents ending up in landfill.

The practice is actually quite common. One consumer survey shows when people receive unwanted gifts, 25% give them to someone else. And on websites such as Gumtree, you can even buy other people’s unwanted gifts. At the time of writing, products for sale included an unworn Maurice Lacroix men’s watch, an electric drum kit, and a new Samsung smart TV.

  1. Go handmade — Handmade gifts are unique and help forge a connection between the giver and the receiver. And even when you purchase the handmade gift rather than make it yourself, research shows recipients usually perceive that the gift symbolically contains “love.”

Etsy has become the global marketplace for handmade gifts and vintage treasures. But keep in mind that if you order a handmade gift from the other side of the world, transporting it will generate carbon emissions. 

  1. Upcycle — Upcycling prolongs the life of old objects by creatively reshaping them into new products. For example, an old jar might become a hanging plant pot, or a reclaimed door might be repurposed as a tabletop.

Research has found when people are told about the past identity or “story” of an upcycled product, the person feels “special” and demand for the product increases. 

— The Conversation

‘Pandemic’ chosen as Word of the Year

NEW YORK — The 2020 prize for Merriam-Webster’s Word of the Year went to an obvious choice: pandemic.

The term had the most online dictionary lookups of any word, Merriam-Webster said on its website, after a year in which at least 1.4 million people globally have died from the COVID-19 pandemic.

“Sometimes a single word defines an era, and it’s fitting that in this exceptional—and exceptionally difficult—year, a single word came immediately to the fore,” the dictionary publisher said.

Pandemic is defined as “an outbreak of a disease that occurs over a wide geographic area (such as multiple countries or continents) and typically affects a significant proportion of the population,” according to Merriam-Webster.com.

The word’s Greek roots are “pan,” meaning all or every and “demos,” meaning people, Merriam-Webster said.

Dictionary lookups skyrocketed on March 11 when the World Health Organization officially labeled COVID-19 a pandemic.

The word “saw the single largest spike in dictionary traffic in 2020, showing an increase of 115,806% over lookups on that day in 2019,” said the company, founded in 1831.

Last year’s winner was “they” as used to describe someone who does not identify as male nor female. That follows winners “justice” in 2018, “feminism” in 2017 and “surreal” in 2016. — Reuters

[B-SIDE Podcast] The future of consumption (a fireside chat from the BusinessWorld Virtual Economic Forum)

Follow us on Spotify BusinessWorld B-Side

On November 25 and 26, BusinessWorld held a two-day virtual economic forum with the forward-looking theme “Forecast 2021: ReBoot. ReThink. ReShape.” 

The event gathered over 40 local and international speakers who discussed the great economic reset as well as the future in a post-COVID era.

B-Side is sharing excerpts from the forum, beginning with this fireside chat between Satish Shankar, regional managing partner for Bain and Company, Asia-Pacific, and Sam L. Marcelo, BusinessWorld multimedia editor.

Over the course of this public health crisis, we’ve witnessed changes in consumption, specifically further shifts to essential goods and digital services. 

Nevertheless, consumption will contribute to growth in Southeast Asia, as Bain & Company estimates that the region will generate a total of US$4 trillion in terms of consumption in the next decade. 

In order to unlock the region’s full potential, it is encouraged that stakeholders ensure efficient and effective recovery from COVID-19, focus on talent development and socio-economic inclusion, upgrade infrastructure to support urbanization and resource management, and push for open and integrated regulation, with a hyper-local approach.

This episode was recorded remotely on November 26. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

Latest issues of BusinessWorld In-Depth focus on the Top 200 Consolidated Corporations in the Philippines and the local start-ups and MSMEs

After the groundbreaking BusinessWorld Virtual Economic Forum, which was held on Nov. 25 to 26, 2020, BusinessWorld In-Depth, BusinessWorld’s on-demand digital magazine, launches its two latest issues.

The fourth issue of BusinessWorld In-Depth, with the theme “Navigating the Now Normal”, features the Top 200 Consolidated Corporations in the Philippines. It is a special edition of BusinessWorld’s Top 1000 Corporations in the Philippines that contains the top 200 consolidated corporations based on consolidated audited financial statements.

This issue also includes six feature stories: profile and summary performance of the top 200 and the outlook of these firms for the succeeding year; outlook on the Philippine economy based on latest projections by financial institutions; the world’s search for a vaccine and what the global economy needs to do while waiting for said vaccine; the current conditions in the workplace and what firms must do to manage the workforce in the so-called “new normal”; and stories about the future of consumption.

Meanwhile, the fifth issue of BusinessWorld In-Depth banners the theme “Starting Up and Again: How the Country’s MSMEs and Startups are Bouncing Back from the COVID-19 Crisis”. It features the Philippine small businesses and startups’ stories of hardships and resilience during the COVID-19 pandemic, and gives hope for a brighter future for this important sector. 

Stories in this issue cover the Philippines MSMEs’ initial response to the effects of the community quarantine in March; the impact of the COVID-19 pandemic to the Philippine startup businesses as revealed by the results of the PwC Philippines’ survey done in April; valuable insights straight from respected entrepreneurs and startup owners about how they were able to rise above the challenges brought by the COVID-19 crisis; key takeaways from the “Rethinking Small Business Strategy and Support Post-COVID-19” webinar series, organized by Asian Institute of Management Rizalino S. Navarro Policy Center for Competitiveness and the Konrad-Adenauer-Stiftung Philippines Office in October; and the Philippine startup sector powering up the new normal and the Philippine Startup Week happening this November, with an interview with Rene “Butch” Meily, president of QBO Innovation Hub.

The first three issues of BusinessWorld In-Depth featured BusinessWorld’s 1st Quarter and 2nd Quarter Banking Report, and the “COVID-19 and Work-from-Home Tales”.

To get copies of these BusinessWorld In-Depth issues, click this link https://bit.ly/33xTzM9 or contact 8535-9901 local 217 and 250.

Exports to fall short of gov’t target

THE OUTLOOK for the export industry remains grim amid the global economic slowdown. — PHILIPPINE STAR/EDD GUMBAN

By Jenina P. Ibañez, Reporter

EXPORT REVENUES will likely reach at least $100 billion in 2022, about a fifth lower than the projected $122 to $130.8 billion in the export development plan, the industry group said.

The Philippine Exporters Confederation, Inc. (Philexport) projects to generate at least $100 billion in goods and services exports by 2022, mostly because of the global economic slowdown caused by the coronavirus pandemic and calamities this year.

“Agri-based raw materials and equipment in Taal and typhoon-hit areas were destroyed,” Philexport President Sergio R. Ortiz-Luis, Jr. said in a mobile message, referring to the eruption of Taal Volcano in January and the recent typhoons causing infrastructure and agriculture damage in Luzon.

The Philippine Export Development Plan (PEDP) 2018 to 2022 signed by President Rodrigo R. Duterte is a roadmap prepared by the Trade department to increase goods and services export revenues by a compound annual growth rate of 8.89-9.96%.

However, Philexport said generating at least $100 billion in export revenues by 2022 will depend on the extent of government assistance for the industry, which has been battered by the pandemic. During the Arroyo administration, export support funds were released to help the industry’s recovery.   

Total merchandise exports were valued at $70 billion in 2019.

Year to date, exports declined by 13.8% to $45.87 billion by September compared with the same period in 2019, data from the Philippine Statistics Authority showed.

The Development Budget Coordination Committee (DBCC) expects a 16% contraction in exports this year.

The decline in exports has been attributed to the pandemic-related lockdowns and the global economic slowdown.

Around two-fifths of Philippine exporters found that they were affected by the first two months of the lockdown despite being allowed to operate, the Department of Trade and Industry (DTI) said.

Trade Secretary Ramon M. Lopez in a speech on Monday said that 42% of 235 exporters surveyed were “greatly affected by the pandemic.”

“This was because the lockdowns were implemented also by other nations and this had caused cancellation of orders for many Philippine exporters, which affected them financially,” he said.

Philexport, however, said that there has since been some improvement as lockdown restrictions were relaxed to spur economic activity.

“Overall, because of the improvement in our export performance so far, we are positive that this is the momentum we are waiting for,” Mr. Ortiz-Luis said.

“The new surge in COVID-19 cases in the US and EU can be a risk, but can also be a good break for us to fill in the supply gaps as they close some factories.”

The industry expects some supply chain disruptions, but also opportunities because of renewed lockdowns in the United States and the European Union (EU).

But Philexport said China and the Middle East are already increasing purchases, while the export sector can also take advantage of Philippine participation in the recently signed 15-country trade deal and its tariff perks in the US and EU.

Mr. Ortiz-Luis added that upskilling and digitalization among small- and medium-sized enterprises will also help export industries, along with market-building initiatives and continued financing for small businesses.

DTI’s Export Marketing Bureau (EMB) Director Senen M. Perlada in September said exports could take two years before returning to growth, noting that he does not expect the country to reach even the lower end of the export development target.

For full-year 2020, DTI-EMB said goods exports could drop by 28.6%, while overall exports could fall by 21.4%.

DTI-EMB, Philexport, and the Export Development Council are holding the National Export Congress online on Dec. 3. In the event titled “Digitalization Boost: Invigorating Exports in the New Normal,” speakers will talk about digitalization in e-commerce, logistics, manufacturing, and training.

Some PHL-based foreign companies plan to reduce operations, survey shows

A BIGGER percentage of foreign firms in the Philippines are considering reducing their operations as a result of the coronavirus pandemic compared with those in other Asian economies, a survey released on Monday said.

The Economic Research Institute for ASEAN and East Asia (ERIA) and the American Chamber of Commerce in Indonesia in September conducted a survey on 264 firms that have operations in the Association of Southeast Asian Nations (ASEAN) region —  majority of which have a primary office in the Philippines, Indonesia, and the United States.

The survey found that 11% of foreign firms in the Philippines plan to reduce operations or production, more than other countries included in the scope of the survey.

To compare, 8% of foreign firms surveyed in Indonesia said they plan to downsize operations, while 7% of Thailand-based firms said the same. About 6% of firms in Singapore, Vietnam, and Malaysia are also looking to reduce operations.

The number is smaller in East Asia, with only 3% of foreign firms surveyed in China saying they would trim operations, and 2% of firms in both Japan and South Korea are seeking to do the same.

However, most of the foreign firms surveyed are not planning to reduce operations at all, with 57% saying that they will not cut operations, while 19% said that they do not know if they will do so.

According to the survey, more than half of those with operations in China are not planning to move their operations to another country.

Among the 13.5% who are planning to leave China, more than 60% are looking to transfer to Vietnam when choosing among ASEAN countries. This was followed by Thailand at 23%, while the Philippines was tied with Malaysia at 15.4%.

ERIA Senior Economist Dionisius A. Narjoko said in the online launch event on Monday that foreign direct investments can be expected to be more capital and technology intensive.

“The key here is somehow investment in human capital in many countries that relied earlier on unskilled labor needs to be done,” he said.

More than 30% of foreign firms in ASEAN economies experienced a “moderately adverse” impact from the pandemic, while almost 30% said they experienced significantly negative impact.

“By far the greatest factor contributing to the negative impact is demand, with 78% of the respondents citing it as the main reason for decreased output/revenue/sales,” the report said.

“In addition to demand shock, several respondents identify lockdown and travel restrictions as the main cause of the difficulties. This affected firms in various ways, ranging from the inability to send staff to project sites to the inability to acquire key goods (for instance, laptops for staff to work at home). Others note significant slowdowns with customs and border crossings.”

More than 70% of respondents said it will take at least the second quarter of 2021 or longer before business activities stabilize.

The firms also named the top issues that ASEAN should work on to support business recovery, including immigration rules and permits, the free movement of people, and tax incentives. — Jenina P. Ibañez

Analysts’ November inflation rate estimates (2020)

THE headline inflation rate in November likely quickened as a recent spate of typhoons pushed the prices of food and agricultural products higher, economists said. Read the full story.

Analysts’ November inflation rate estimates (2020)

Inflation likely picked up in Nov. — poll

FARMERS try to recover whatever they can after rice fields in Cagayan Valley were flooded when Typhoon Ulysses swept through the region in November. — PHILIPPINE STAR/ MICHAEL VARCAS

THE headline inflation rate in November likely quickened as a recent spate of typhoons pushed the prices of food and agricultural products higher, economists said. 

A BusinessWorld poll of 13 analysts conducted last week yielded a median estimate of 2.7%, near the low end of the 2.4-3.2% forecast range of the Bangko Sentral ng Pilipinas (BSP) and well within the 2-4% target for the year.

If realized, the median estimate will be faster than the 2.5% logged in October and the 1.3% seen in November 2019.

Analysts’ November inflation rate estimates (2020)

The November inflation report will be released by the Philippine Statistics Authority on Friday (Dec. 4).

Typhoons Rolly and Ulysses swept through Luzon in November, causing heavy floods and damaging crops, homes and infrastructure. Analysts said the recent calamities and its impact on the agriculture sector may have driven a faster increase in commodity prices.

“We think that the typhoon-induced food price upticks, particularly in the Luzon area, can augment the monthly headline inflation,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

Crop damage from typhoons Rolly and Ulysses reached P5.79 billion and P6.72 billion, respectively, based on latest data from the Agriculture department.

Another upside risk to inflation is the continued rise in crude oil prices in the world market, analysts said.

“Global crude oil prices rose to its highest in 8.5 months that led to some upward adjustments in local fuel pump prices and some pickup in energy prices, as well as input costs for various businesses,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Last week saw crude oil prices rising to their highest levels since March, according to Reuters. In the local market, prices of gasoline, diesel, and kerosene have increased by around P0.10, P1.40, and P0.30 per liter cumulatively in November, based on data from the Department of Energy.

Manila Electric Co.’s power rates inched down by P0.0395 per kilowatt-hour (kWh) to P8.5105 kWh in November, due to a reduction in generation charges.

“Transport prices will also likely remain elevated as will utilities and education as Filipinos will see a one-off increase in expenditures during the switch to online classes,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

Increased household spending ahead of the Christmas season may have contributed to the quicker inflation rate, Asian Institute of Management Economist John Paolo R. Rivera said.

“A much faster inflation is expected since we are drawing close to the holiday season, 13th month pay and bonuses have been released recently driving private consumption upwards, but not as fast as pre-pandemic situations,” Mr. Rivera said.

Analysts said the inflation outlook remains benign, given the BSP some room to remain accommodative if needed.

The central bank expects inflation to average 2.4% this year. The consumer price index rose 2.5% as of October year to date.

“The relatively benign inflation environment may still justify further monetary easing measures, going forward, especially by way of further cut in banks’ reserve requirement ratio (RRR),” Mr. Ricafort said.

The Monetary Board is authorized to slash up to 400 basis points (bps) in the reserve requirement of lenders this year. So far, it already trimmed big banks’ RRR by 200 bps to 12%, while those of thrift and rural banks were brought down by 100 bps to three percent and two percent, respectively.

“The latest BSP forecast for 2020 is 2.4% average inflation. As long the November figure does not result in meaningful deviation from this, it should have negligible impact to the current monetary policy stance of the BSP,” said Alvin Joseph A. Arogo, vice-president and head of research at Philippine National Bank.

The central bank unexpectedly cut key interest rates by another 25 bps in November, citing the need to further stimulate the sluggish economy. This brought down the overnight reverse repurchase, lending, and deposit facilities to record lows of 2%, 2.5%, and 1.5% respectively.

Cumulative easing this year reached 200 bps already, but the BSP said they still have the policy space for further measures once the need arises.

“Looking ahead, the BSP stands ready to deploy its full arsenal of instruments as needed in fulfillment of its mandate to maintain price and financial stability conducive to sustainable economic growth,” BSP Governor Benjamin E. Diokno said on Nov. 19.

The Monetary Board will have its last policy-setting meeting for this year on Dec. 17. — Luz Wendy T. Noble

10-month borrowings reach P3.2T

THE government’s total gross borrowings reached P3.224 trillion in the first 10 months of 2020, breaching its P3-trillion full-year target after receiving a new round of cash advances from the central bank.

Data from the Bureau of the Treasury (BTr) showed year-to-date gross borrowings more than tripled from P967.56 billion in the same 10 months last year.

The latest tally was 7.5% higher than the P3-trillion program for 2020, after the provisional advances worth P540 billion from the Bangko Sentral ng Pilipinas (BSP) were remitted in October.

Borrowings in the first 10 months were 0.44% higher than the P3.21 trillion in combined gross borrowings recorded from 2016 to 2019.

In October, overall gross borrowings jumped 1,219% to P663.21 billion from P50.27 billion in the same month year ago. Around 96% of the borrowings were from local lenders.

Domestic borrowings rose 1,244% to P639.04 billion in October from P47.53 billion the year before, after short-term loans from the BSP worth P540 billion were remitted.

On Oct. 1, the BSP’s Monetary Board approved the new tranche of provisional advances, days after the government repaid the P300 billion worth of government securities issued through a repurchase agreement.

Local borrowings also included P69.05 billion in Treasury bonds (T-bonds) and P30 billion in Treasury bills (T-bills) issued via the BTr’s weekly auctions.

The Treasury made repayments of P329 million that month, taking the net domestic borrowings to P638.714 billion, which went up 1,260%.

External borrowings hit P24.17 billion in October, a reversal from the net redemption worth P1.17 billion a year ago. A net redemption occurs when more debts have been repaid than new debts incurred.

Of which, program loans amounted to P19.75 billion, while project loans stood at P4.42 billion. Less the P4.79 billion repayments made that month, net foreign debt reached P19.38 billion.

From January to October, local borrowings accounted for 82.2% of the total.

Year-to-date local gross borrowings reached P2.649 trillion, nearly quadruple the P673.805 billion the year prior.

Broken down, short-term loans from the central bank totaled P840 billion; funds raised through retail Treasury bonds (RTBs) reached P827.12 billion; T-bonds issued hit P561.91 billion; and T-bills stood at P420.31 billion.

It settled P698.9 billion in debt repayments in those 10 months, including the P300 billion of debt paid back to the BSP.

Foreign debt grew by 95.6% to P574.435 billion. This consisted of P364.64 billion in program loans, P23.73 billion in project loans, P118.74 billion of funds raised through the issuance of dollar-denominated global bonds, and P67.33 billion in euro-denominated bonds.

The Treasury made P128 billion of repayments during the period to bring the net foreign borrowings to P446.46 billion, up 160%.

Minus all the repayments made, overall net borrowings hit P2.706 trillion in those 10 months, up 221% year on year.

The budget deficit narrowed to P351 billion in September, but the nine-month shortfall was still 194% higher than the P879 billion from a year ago on the back of falling revenues and rising pandemic expenses.

The government runs a budget deficit as it spends more than the revenue it generates. The budget gap rose by 24.56% to P61.4 billion in October taking the 10-month shortfall to P940.6 billion, up 170% year on year.

The fiscal deficit is projected to hit 9.6% of gross domestic product this year. — Beatrice M. Laforga

Megawide expects landports to boost foot traffic

By Denise A. Valdez, Senior Reporter

MEGAWIDE Construction Corp. is bullish on building more transportation terminals and is open to working with mall operators as it continues to garner high foot traffic despite the coronavirus pandemic.

While traditional malls are suffering from fewer goers because of the health crisis, Megawide said its land transportation terminals or “landports” are performing relatively better in the current scenario.

Similar to airports — another business that Megawide is engaged in — landports are facilities that mainly cater to transportation needs, but are levelled up through the integration of a formal ticketing system and commercial and retail establishments.

Megawide currently operates one landport, the Parañaque Integrated Terminal Exchange (PITX), which caters to Calabarzon residents going to and from Metro Manila.

As parts of the country remain under stay-at-home protocols, about 56,000 to 57,000 passengers pass through PITX every day. This is only about a 7% dip from the 60,000 daily passengers the facility used to record pre-pandemic.

This could be a bright spot for retail and commercial operators that have suffered a 30% to 50% drop in mall foot traffic, based on third quarter data from property consultancy firm Colliers International Philippines.

“What we’re creating is really an infrastructure development… We can bring in the traffic and work with the other developers such as mall operators,” Megawide Chairman and CEO Edgar B. Saavedra said in a virtual briefing on Friday

“The core business of Megawide, especially with this transport oriented development, is you manage the traffic… But you need other developments such as malls, commercials, and sometimes residential developments and office developments, to support the transport facilities,” he added.

Megawide noted that unlike ordinary malls where bus bays and transport terminals come as support to the commercial facility, Megawide’s approach to the business is the other way around.

“Even before (the pandemic) happened, we were very confident already about the business model of PITX, because unlike a traditional mall where there’s a lot of people during weekends, in PITX it’s on regular days,” Megawide Director Manuel Louie B. Ferrer said.

Megawide is currently planning a P5-billion phased expansion of PITX, which will be partly supported by the P4.36 billion it raised from a preferred shares offering last week.

The company is also looking to build more landports across the country after having been approached by about half a dozen local government units (LGUs) for a similar project in their cities.

“You know in the Philippines, most of our cities don’t have proper transportation facilities like terminals. Traffic management is not properly designed. So we’ve been approached by a couple of LGUs,” Mr. Saavedra said.

In the nine months ended September, landport operations contributed P552 million to Megawide’s revenues, 167% higher from a year ago as its full operations started in the latter half of 2019.

Megawide gets the bulk of its revenues from construction contracts, which fell 30% to P7.41 billion in the nine months.

However, Mr. Saavedra said the company’s order book is better than pre-pandemic, as it now stands at P45 billion to P46 billion against the first quarter’s P44 billion. This does not include yet the P28-billion Malolos-Clark Railway Project that the company bagged in September.

“One competitive advantage of Megawide, apart from us being particularly integrated, is we also have in-house capability… We can do infrastructure, we can do vertical, we can do horizontal, water treatment plants. All these technical projects, we can also pursue,” Megawide Head of Corporate Finance Jez G. Dela Cruz said.

Shares in Megawide at the stock exchange closed at P9.47 each on Friday, down 21 centavos or 2.27% from the last session.

Cooperation — and smiles — are needed to lift the travel industry

By Zsarlene B. Chua, Senior Reporter

IT’S no secret that global tourism is one of the industries that has borne the brunt of the current COVID-19 (coronavirus disease 2019) pandemic, with health and safety protocols and blanket quarantines lassoing in the once growing industry.

The grim reality is that according to the World Travel and Tourism Council (WTTC) — a global forum of business communities across the globe that works with governments to raise awareness about the importance of travel and tourism — over 142 million travel and tourism jobs have been lost, and the $3.6 trillion in global travel and tourism gross domestic product (GDP) has gone down the drain. And the world stands to lose more if the situation does not improve by the end of the year, said Tiffany Misrahi, vice-president for policy at the WTTC, during the recently held virtual BusinessWorld Economic Forum.

Grim outlook notwithstanding, Ms. Misrahi noted that the current situation allows the industry to “build back stronger and more resilient than before,” by coordinating public and private approaches which include continued government support for the sector and the need to enhance “existing safe and seamless traveller journey experience.”

“We continue to see the Asia Pacific Region and China to have very strong policies that are enabling speedy recovery but ultimately it will require a coordinated approach and the reality is no one country can do it on its own,” she said.

As the world tries to restart and recover from a pandemic, which has sickened more than 62 million people as of this writing, an expert said that the focus should be on encouraging travellers to come back through promotions rather than giving businesses more loans to keep their businesses afloat.

“I would still go for a million [pesos] of business than a million [pesos] of loans because if you fund tourism establishments and they have no customers, the money will be a sum cost, but if you fund tourists, that will not be their last purchase in that establishment,” Alexander Cabrera, chairman and senior partner at PriceWaterhouseCoopers Philippines, said in the same forum.

He explained that similar strategies are in place in Taiwan and Japan where tourists pay for vouchers which they can use in tourism establishments as a way to revitalize the industry.

Mr. Cabrera also suggested the use of seaplanes for tourists to around several Philippine islands.

“Seaplanes provide tourists the ability to go around quickly and even cheaply because you can do all these things… these are some things that can be maximized,” he said, before adding that the Philippines’ more than 7,000 islands is a main differentiator of the country, as having more islands to tour (preferably using seaplanes) can make tourists stay longer in the country.

“The real way to promote the Philippines is to emphasize our natural assets, and there’s so many of them outside the well-known destinations and that can certainly increase the number of days they stay in the Philippines,” Mr. Cabrera said.

Current demand for travel is going towards “nature destinations” and “off-the-beaten paths,” according to Ms. Misrahi, something the country may stand a chance to capitalize on.

On air travel, AirAsia Philippines CEO Ricardo “Ricky” Isla said that “pricing is going to support air travel as far as opening more destinations in the domestic front.”

This is why AirAsia recently held several promotions, including a Manila to Cebu flight for P1,800 to P2,000 and a P4,999 Fly-All-You-Can pass for a year for domestic travel.

Mr. Isla is also confident that the holidays, especially in December, will “triple passenger capacity.”

“December is peak season and we know we need to open more price-driven promotions… Hopefully we’ll be able to sustain this momentum of the Christmas holidays to January next year,” he added.

Traveller confidence is also important as according to Ms. Misrahi, travellers “want to see a consistent and coherent approach in how issues are tackled and addressed,” a point Mr. Cabrera agreed with, as a point of concern with promoting the Philippines as a destination is the question of do travellers “feel safe going to the country and are there sufficient medical facilities to take care of them if they get sick?”

Whether the industry recovers next year is still up in the air but Mr. Cabrera said that there’s a need for Filipinos to keep smiling and not lose their spirit despite the pandemic because “the Filipino smile is actually a tourist attraction.”

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