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Outsourcing sector lost P120B due to lockdown

The outsourcing sector suffered around P120 billion in losses due to missed opportunities and unplanned expenses during the lockdown. — BLOOMBERG

THE OUTSOURCING SECTOR lost around P120 billion due to missed opportunities and unplanned expenses during the lockdown, an industry group said.

Information Technology and Business Process Association of the Philippines (IBPAP) President and Chief Executive Officer Rey E. Untal said the industry has been spending on employee accommodations, shuttle services, and work-from-home requirements in the past eight months of lockdown. 

The amount also includes revenue losses due to reduced operational capacity, Mr. Untal said at the first day of the International Innovation Summit 2020 on Wednesday.

The government allowed outsourcing firms to continue operations during the stricter lockdown, provided that they offer accommodation and shuttle services to employees working on-site as safety measures during the public health crisis. Organizations were also encouraged to implement work-from-home measures.

Mr. Untal in June said that companies were not able to scale operations to full capacity because of limitations in internet and data protection for at-home work.

But operations have since increased, with over 95% of employees working either at home or on site, Mr. Untal said at Wednesday’s summit. Only half of the outsourcing workforce were productive at the start of the lockdown in March, with 40% working from home and 10% working on site.

The pandemic could, however, further temper the industry’s revenue projections, which were lowered last year.

IBPAP in November last year tempered its revenue target to a 3.5-7.5% compounded annual growth rate to $29-32 billion for 2020 to 2022. The goal was originally set at nine percent in 2016, but was revisited due to the effects of geopolitical changes, automation, protectionist policies, and rapid transformation of business models on the industry.

The industry made $26.3 billion in revenues last year, or 7.1% higher than the previous year. This put growth at the higher end of the industry group’s tempered projections, Mr. Untal said.

“But as we enter 2020, we were confronted with a new set of obstacles that affected not just the Philippines but the rest of the world as well,” Mr. Untal said.

“The rapid spread of the coronavirus disease pushed governments to implement strict lockdowns that curtailed economic activity and severely impacted unemployment, which unfortunately, had immediate and devastating effects on global economies,” he added.

IBPAP may release its new official revenue and employment projections by Nov. 20, but a “pulse” survey on 70 member companies in June found that 18% of respondents expect revenues to contract and 36% sees business will remain flat this year.

The companies that expect contraction represent four percent of the total employee headcount of the polled companies, as Mr. Untal explained that smaller companies have a “difficult time” because they are harder hit by the loss of contracts.

Around 46% of the surveyed companies anticipate 3-7% growth this year.

Although the sector is not quite back to “business as usual,” Mr. Untal said the industry is one of the sectors that remained operational and continues to provide employment.

“There are over 30,000 job openings across the different sub-sectors, and since we’re basing this off on what is only available as public information plus select conversations with some country heads, we believe this number to be actually higher.”

The number of full-time employees in outsourcing grew 5.8% to 1.3 million people last year. The compound annual growth rate of employment for 2020-2022 was tempered in November last year to 3-7% to 1.42-1.57 million full-time employees, compared with an eight percent previous projection.

An outsourcing workers group in August asked the government to impose stricter penalties on companies that violate workplace health safety. — Jenina P. Ibañez

Factory output falls for 7th straight month

Factory output continued to slump in September. — REUTERS

THE COUNTRY’S factory output contracted for the seventh straight month in September, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries showed factory output, as measured by the Volume of Production Index (VoPI), contracted by 8.4% year on year in September.

This was slower than the revised nine-percent decline in August, but was faster than the 6.5% contraction in September 2019.

Year to date, the drop in factory output averaged 12.1% compared with the 8.9% slide in 2019’s comparable nine months.

The PSA attributed the slower decline to double-digit expansions observed in basic metals and food manufacturing with annual rate increases of 14.4% (from -2.6%) and 10.2% (from -3.3%), respectively.

The statistical agency also pointed to the “slower drop” in the indices of 10 industry groups compared with the previous month, such as beverages (-8% from -13%); textiles (-23.8% from -27.5%); footwear and wearing apparel (-33.8% from -36.4%); leather products (-55.2% from -55.8%); and wood and wood products (-36.3% from -37.6%).

Average capacity utilization  — the extent to which industry resources are used in the production of goods  — averaged 67.6% in September from 67.2% the previous month.

Only eight of the 20 sectors registered capacity utilization rates of at least 80%.

“September 2020 can be characterized as the month when the government has become more definite on what kind of quarantine policy will be implemented, COVID-19 (coronavirus disease 2019) cases have been becoming predictable, and the market has adjusted to the lingering effects of the pandemic. Hence, the degree of uncertainty has been reduced, although there are still some uncertainties,” Asian Institute of Management Economist John Paolo R. Rivera said in an e-mail.

“The availability of more definite information enabled manufacturers to be a bit more aggressive in spending for production. For example, urban areas like NCR (National Capital Region) are not moving in and out of different quarantine classifications anymore,” he added.

In a separate e-mail, Security Bank Corp. Chief Economist Robert Dan J. Roces noted improved activity brought by looser quarantine measures as shown by the slower decline in September.

“Taking a look at month-on-month changes, total manufacturing actually improved by 4% in September, or faster than the July-August rate of 2%, and suggesting improved economic activity likely on looser quarantine measures and better aggregate demand for the month. This also marks the fifth straight month of increased total production to reflect a gradual recovery scenario from the lows in April,” Mr. Roces said.

Barring “downside risks” such as a resurgence in COVID-19 cases and a re turn to  strict lockdown, he said this recovery could likely be sustained until the end of the year.

“However, some sectors could recover slower than others while others improve, as there seems to be clustering in the meantime in terms of manufacturing output which also reflects the tenuous position of demand for certain products; this reflects a k-shaped trajectory of the gradual recovery prospects of the manufacturing sub-sectors,” he said.

For AIM’s Mr. Rivera: “[A]s the Philippine economy opens more industries and sectors [and] relaxes quarantine restrictions, hopefully more jobs will return… and demand will increase, thereby prompting for increased production activities especially in the coming holiday season.”

“We are on our way to recovery, albeit at a managed rate,” he said. — Lourdes O. Pilar

PLDT net income jumps 95% as demand surges

By Arjay L. Balinbin, Senior Reporter

PLDT, Inc. on Thursday reported a 95% growth in its attributable net income for the third quarter, noting that the period was an “all-time high” across its different business segments because of the spike in customer demand for digital services.

In a disclosure to the stock exchange, PLDT posted an attributable net income of P7.41 billion, up from the P3.79 billion it generated in the same period last year.

PLDT saw a 10% increase in its revenues to P46.49 billion. Broken down, service revenues grew 9% to P44.37 billion, while non-service revenues increased 18% to P2.12 billion.

“For the third quarter alone, consumer wireless took in revenues of P21 billion, or 15% higher; enterprise recorded P10.6 billion, 8% more, while the home segment produced P10.7 billion, a 16% gain,” the company said in a statement.

These brought the telco’s nine-month attributable net income to P19.69 billion, 23% higher than last year’s figure. Revenues also grew 7% to P133.22 billion.

Segmented, service revenues went up 7% to P127.85 billion, while non-service revenues declined 1% to P5.37 billion.

“Data and broadband revenues led the growth in service revenues, reaching P90.8 billion, an 18% increase in the first nine months, with mobile internet and home broadband rising 31% and 14%, respectively,” PLDT said. Data and broadband accounted for 72% of PLDT’s service revenues.

Also for the nine-month period, the telco’s revenues from the consumer wireless segment grew 15% to P60.8 billion. The enterprise segment saw a 6% revenue climb to 30.9 billion. Home generated P30.3 billion, up 10% from a year ago.

PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan expects a better performance for the last quarter of the year.

“We’re forecasting better numbers for 2021,” he also said at an online briefing on Thursday.

Mr. Pangilinan likewise disclosed that the company is no longer pursuing investments in Sky Cable Corp., a subsidiary of ABS-CBN Corp.

“We have withdrawn from the bidding process, at least as we understand it, for SkyCable. The main reason if I may say this, is that there are other commercial reasons why we did that. But I think the main reason that we did that is on review of the Bayanihan Act II,” he said.

“The PCC (Philippine Competition Commission) has the ability to review mergers and acquisitions one year after the effectivity of the act and possibly reverse agreements… Of course, we’re concerned that that risk might arise. The risk is there and the prospect of divestment might be real and we decided not to attract that risk,” Mr. Pangilinan added.

To recall, PLDT announced in September that it was exploring opportunities in Sky Cable Corp.

The Bayanihan To Recover As One Act (Bayanihan II) signed by President Rodrigo R. Duterte on Sept. 11 exempts mergers and acquisitions from compulsory notification “with transaction value of less than P50 billion which are entered into within two years” from effectivity of the law.

The PCC in a statement said the new law also suspends its “exercise of motu proprio review of these mergers and acquisitions for a period of one year.”

Shares in PLDT closed 1.06% higher at P1,340 apiece on Thursday.

SMC earnings pick up in Q3 on easing lockdown

SAN MIGUEL Corp. (SMC) posted a net income of P15 billion in the third quarter, up from the P13.54 billion it reported the same period last year, as its business units started bouncing back after subdued demand earlier in the year.

In a statement Thursday, the company said it returned to profit after posting a net loss of P4 billion in the first six months of 2020 due to the relaxation of quarantine rules in Metro Manila and key cities.

However, on a year-to-date basis, SMC’s net income remains down 73% to P10.75 billion, based on a presentation to investors uploaded on its website on Thursday.

Net sales during the nine months is lower by 30% at P531.13 billion, while operating income is down 53% to P41.46 billion.

By business segment, SMC Global Power Holdings Corp. generated the largest net income year-to-date at P14.48 billion, up to 27% from last year. The bottomline growth came amid a 16% decline in revenues at P87.87 billion.

The food and beverage group, through San Miguel Food and Beverage, Inc., posted a net income of P14.36 billion, down 37% from a year ago. Net sales likewise slid 14% to P194.56 billion.

The slowdown is largely due to the beer and food segments, which posted a 44% income decline to P11.08 billion and a 13% income decline to P1.55 billion, respectively. This offset the 67% income growth of Ginebra San Miguel, Inc.

SMC’s fuel business, through Petron Corp., posted a consolidated net income of P1.63 billion for the third quarter, but remained unprofitable for the nine-month period with a P12.61-billion net loss.

The improvement in the three months was attributed to stabilizing world crude prices and the relaxation of lockdown protocols since the end of the second quarter. Petron has also come back to normal operations since August.

SMC’s infrastructure business, which operates toll roads across the country, recorded improved traffic quarter-on-quarter, but still 37% down on a nine-month basis. It generated revenues of P10.3 billion, down 42% from last year.

“The country has proven its adaptability and resilience in these trying times, and we, in San Miguel Corp., will continue to deliver on our commitment to help the country build back better and stronger as we emerge from this pandemic,” SMC President and Chief Operating Officer Ramon S. Ang said in the statement.

SMC shares picked up P1.30 or 1.27% to close at P104 apiece on Thursday. — Denise A. Valdez

AboitizPower’s supercritical power plant in Bataan to go online in 2021

ABOITIZ Power Corp. has scheduled the two units of a subsidiary’s 1,336-megawatt (MW) supercritical coal-fired power plant in Dinginin, Bataan to start operating commercially around the middle of next year.

In a statement late on Wednesday, the listed energy company said the first unit of GN Power Dinginin Ltd. Co. is set to synchronize with the grid by the end of the year and start operating by the second quarter of 2021.

The second unit will be synchronized and start earning commissioning revenues by the second quarter of next year. It is scheduled to start operating commercially by the third quarter. The two units have an identical capacity.

AboitizPower, which accounted for nearly half of Aboitiz Equity Ventures, Inc.’s income as of the third quarter, said its ownership of the plant allows it to surpass its 4,000-MW target “attributable” capacity while serving the country’s base load energy demand.

AboitizPower did not give details on its attributable capacity or its share in the new energy generating project. GNPower Dinginin is a joint venture of AC Energy, Inc., AboitizPower subsidiary Therma Power, Inc. and Power Partners Ltd. Co.

On its website, the GNPower Dinginin claims to be the “biggest coal-fired power plant” to be built in the Philippines. It currently has contracts with 30 distribution utilities and two retail electricity suppliers.

The target commercial run of the power plant comes as AboitizPower suffered a 32% fall in its third-quarter consolidated net income to P3.3 billion.

For the three quarters to September, its net income plunged by 48% to P7 billion, including non-recurring gains. Without the one-off gains, its core net income was down 53% to P6.5 billion.

Emmanuel V. Rubio, president and chief executive officer of AboitizPower, said in a virtual media briefing on Wednesday evening that the company’s third-quarter performance was 39% better than the second quarter partly due to the availability of more coal facilities and the easing of lockdown measures.

“This was on account of higher availability of our coal facilities, better hydrology [in preparation for] La Nina for the rest of the year until Q1 of 2021, and higher customer demand given the looser quarantine,” Mr. Rubio said.

However, he noted that earnings before interest, taxes, depreciation, and amortization (EBITDA) were pushed back by 11% year on year because of lower demand due to the global health crisis, and lower water inflows in the company’s hydro facilities.

He added that AboitizPower paid more taxes during the third quarter of the year since its income tax holidays had expired during that period.

“The pandemic has significantly impacted our financial performance, but we have sustained the delivery of much-needed energy products and services to our customers and our communities,” Mr. Rubio said.

He also talked about the company’s growth strategy in the next decade, which focused on “significantly growing their renewables portfolio and shifting their energy mix into a 50-50 ‘Cleanergy’ and thermal capacity.”

The AboitizPower executive said that, moving forward, the company aims to focus on environmental sustainability as it implements its 10-year strategy.

AboitizPower shares on Thursday closed at P27.15 apiece, a 1.69% increase from its previous finish. — Angelica Y. Yang

SEC orders submission of money laundering prevention program

THE Securities and Exchange Commission (SEC) is requiring firms to submit a revised program against money laundering and terrorist financing within the next two months.

The regulator published in newspapers on Thursday Memorandum Circular No. 29, or the 2020 guidelines on the submission and monitoring of the Money Laundering and Terrorist Financing Prevention Program (MTPP).

The MTPP is a submission that the SEC requires from covered persons through Memorandum Circular No. 16 Series of 2018, or the 2018 Guidelines on Anti-Money Laundering and Combating the Financing of Terrorism for SEC Covered Institutions (2018 AML/CFT Guidelines).

“All covered persons registered after the effectivity of the 2018 AML/CFT Guidelines but before the effectivity of this circular and who have not yet submitted their MTPPs/revised MTPPs shall do so within two months from the effective date of this circular,” the SEC said in its new memorandum.

The circular takes effect 15 days after its publication in two national newspapers and the SEC website, which both happened this week.

Covered persons, or entities required to comply with the submission of MTPPs, are financial institutions regulated by the central bank, the Insurance Commission and the SEC, and designated non-financial businesses and professions such as jewelry dealers and casinos.

Based on the implementing rules and regulations of the Anti-Money Laundering Act, the MTPP has to contain a company’s “comprehensive, risk-based, and written internal policies, controls and procedures to implement the relevant laws, rules and regulations, and best practices to prevent and combat (money laundering and terrorist financing).”

Hard and soft copies of the MTPPs have to be submitted to the Anti-Money Laundering Division of the Enforcement and Investor Protection Department of the SEC. The document has to be duly approved by the covered persons’ board of directors, or for foreign corporations, the country head or its equivalent for local branches.

Through the same circular, the SEC said it is no longer requiring the MTPP as a submission for companies applying for registration and secondary license with its Company Registration and Monitoring Department.

Instead, applicants may submit a sworn certification that it has prepared an MTPP approved by its board of directors. This certification has to be stamped by the Anti-Money Laundering Division to be acknowledged by the Company Registration and Monitoring Department.

The circular also requires that financing and lending companies that would reach the P10-million minimum paid-up capital or exceed the 40% maximum foreign equity must submit copies of their MTPPs to the SEC within 60 days from when the thresholds are breached.

The SEC said the new circular fulfills part of its mandate as a supervising authority of Republic Act No. 9160 or the Anti-Money Laundering Act of 2001, Republic Act No. 8799 or the Securities Regulation Code, and Republic Act No. 11232 or the Revised Corporation Code of the Philippines. — Denise A. Valdez

Beauty and the Boss: new iflix series offers a male view of romance

STREAMING service iflix’s new series, Beauty and the Boss, tells a love story from the point of view of the male protagonist which serves as a refreshing twist though the story (based on its first episode) still has the hallmarks of a typical romantic comedy.

Beauty and the Boss, directed by James Mayo, starts streaming for free on iflix with new episodes dropping every week. The story follows Rafa (played by Gino Roque IV), a cafe owner and chef who wants to gain the approval of his business-minded family and Stella, a hardworking, go-getter who applies to work at the cafe.

“We have been very busy coming up with a significant number of originals, [for] this year and the next year. But for 2020, we are so excited to bring you Beauty and the Boss… [this] is a fresh take on love and life from the point of view of a man or a boy,” Anna Ysabel F. Driz, director and head of advertising sales at iflix Philippines, said in a press conference on Oct. 29 held via Zoom.

She added that the series has a very “Gen Z” and “very millennial” treatment as the series “brings back the feeling of being in love and it gives you that whole sense of melancholy.”

Beauty and the Boss was supposed to shoot normally earlier this year, but when the COVID-19 lockdowns started, they had to shift to doing lockdown shoots to complete the series, which, according to its director, helped the series proceed with more focus as they had to “complete everything within a 12-hour workday.”

During the press conference, the media were given a sneak preview of the first episode and in a word, the series is charming: the cute, fairy-tale-like interior design of the cafe lends itself to what can be assumed is the fairy tale love story of Rafa and Stella.

Rafa, despite being described in the first few minutes as a strict, no-nonsense cafe owner, immediately shifts into a lovesick puppy in front of Stella, who, in her defense, can really charm the socks off her boss and customers alike.

Not much is given away in the entire story but for those looking for a lighthearted watch that seems like it will not have too much drama, Beauty and the Boss can be it.

Beauty and the Boss premieres for free on iflix starting Nov. 6, 5 p.m. — ZB Chua

Tourism training to be added to school curriculum

THE Department of Education  has agreed to add tourism and hospitality industry training to the high school curriculum, the Department of Tourism said.The new courses will be added to the technical and vocational curriculum for junior and senior high school in the public school system.

Tourism Secretary Bernadette Romulo-Puyat said in a statement Thursday, “We hope that this convergence will pave the way to a seamless transition from Senior High School to Higher Education, ensuring that our students are ready when they enter the industry.”

The two departments signed a Memorandum of Understanding  on Convergence on Tourism Education and Training along with the Commission on Higher Education, Technical Education and Skills Development Authority, and the Tourism Industry Board Foundation, Inc.

Ms. Romulo-Puyat said the agreement will strengthen tourism and human capital development in the Philippines, adding “this will institutionalize the harmonization efforts of the government sector, the academe and the tourism industry.”

The deal will also seek to promote Education Tourism, a highlight of the National Tourism Development Plan 2016 to 2022. — Gillian M. Cortez

Banks reducing risks, costs amid pandemic

BANKS are employing prudential strategies to weather the impact of the coronavirus pandemic, such as reducing exposures to segments deemed vulnerable and cutting operational costs, a report from the Bangko Sentral ng Pilipinas (BSP) said.

“Despite the immense economic disruption following the outbreak of COVID-19, decisive, time-bound and wide-ranging policy responses have helped to prevent a seizing-up of the banking system”, BSP Governor Benjamin E. Diokno said in a statement.

BSP’s Report on the Philippine Financial System for the First Semester of 2020 released Thursday said universal and commercial banks have been looking to minimize exposure to vulnerable sectors and to increase ancillary or fee-based activities.

“[Mean]while, thrift banks and rural and cooperative banks plan to fast track digitization initiatives to reduce operating expenses,” it said.

Higher credit provisions amid the crisis took its toll on the industry’s profitability, as the banking system’s net profit shrank 22.5% year on year to P86.5 billion as of end-June, reversing the 27.7% growth in earnings in the same period of 2019.

“Other income sources are expected to slow down due to lower volume of transactions, waiver of inter-branch and interbank fees as well as the temporary grace period moratorium on the imposition of bank fees, penalties and charges under the [Republic Act No. 11469 or] Bayanihan Act,” the BSP said.

Based on a central bank survey, lenders are eyeing to do cost-cutting measures such as deferred capital spending and freeze hiring of non-critical positions to mitigate the impact of the pandemic on their profitability.

They are also looking to intensify loan collection activities and monitoring, exercise prudence in credit disbursement, reduce cost of funds, and market new loans and deposit products.

Lenders are also expecting muted overall credit demand despite the reopening of business activities as the lockdown was eased. Surveyed banks believe their gross total loan portfolio will “grow modestly” by the end of the year.

Due to the impact of the crisis on households and businesses, the central bank expects non-performing loans (NPL) to reach 4.6%, still better compared to the 17.6% level in 2002 in the aftermath of the Asian financial crisis.

In the first half of the year, the increase in soured loans was fuelled by sectors such as real estate, wholesale and retail trade. Consumer loans also contributed to the growth in bad loans, the report said.

The industry’s NPL ratio stood at 2.84% or P304.98 billion of the P10.7-trillion total loan portfolio as of end-August. This rose from the 2.7% ratio  seen as of end-July. — LWTN

LBC Express profit up nearly 38%

LBC EXPRESS HOLDINGS, Inc. on Thursday reported a 37.6% growth in its third-quarter attributable net income, but cumulative earnings as of September remained lower compared with a year ago after the health crisis’ impact on operations.

In a disclosure to the stock exchange, the logistics and money transfer service company placed its quarterly earnings at P448.50 million, up from P325.96 million in the same three months last year

Its total revenues for the third quarter climbed 6.03% to P3.99 billion. Total expenses went down 7.05% to P3.28 billion, while its non-operating income dropped 96.97% to P14.85 million.

The company’s nine-month revenues declined 16.14%  to P9.63 billion from last year’s P11.49 billion.

Total expenses for the nine-month period went down 10.04% to P9.42 billion, while non-operating income dropped 88.24% to P68.28 million.

The company saw its attributable net income for the first nine months drop 86.60% to P53.23 million.

“In order to remain operational during the pandemic period, the group activated its business continuity plans in order to continue to fulfill services much needed during this crisis period,” LBC Express Holdings said.

The company also said its delivery lead times have been extended “due to safety, security and travel restrictions.”

The impact of the health crisis on the company’s operations  include “reduction in revenue, receipt of lease concessions from lessors and recognition of additional allowance for expected credit losses,” it added.

On Thursday, shares in LBC Express Holdings went up 0.13% to close at P15.72 apiece. — Arjay L. Balinbin

Philippine business groups sign pledge to reduce inequality

SOME of the biggest business groups in the Philippines have signed a covenant committing to address economic and social inequalities in the country, which have been heightened by the ongoing coronavirus pandemic.

In a virtual signing event streamed live on Thursday, the Management Association of the Philippines (MAP) gathered 26 associations, including itself, to vow to “shared prosperity” with employees, customers, suppliers, the community, the environment, and their respective shareholders.

The specific commitments are recruiting and training employees regardless of gender, alma mater, age, ethnicity and religion; providing quality products and services to customers; treating providers of goods and services fairly and ethically; being involved in communities to identify their needs; protecting the environment in business operations; and delivering just returns to controlling and non-controlling shareholders. 

“As we struggle with the COVID-19 pandemic, we also need to address the critical longer-term global issue of inequality, which has worsened because of the current health crisis… When the crisis is over, we at MAP would want a new normal in the way we deal with our stakeholders…,” MAP President Francisco E. Lim said in the program.

As part of operationalizing the signed pledge, MAP said it recommends the signatories to encourage its member companies to similarly commit to the covenant. It targets that by June 2021, the associations would have formed metrics to measure their successes in keeping true to the pledges, and by end of 2021, would be able to report their performances based on the metrics.

Speaking on behalf of the private sector, Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala said the pandemic has indeed raised the standard for companies in immersing themselves as members of a community.

“Everyone understood that we had a broader responsibility and this created a very interesting dynamic in our country: a sense of common purpose and a coming together of different groups including those who were long used to fiercely competing – not cooperating – with each other,” Mr. Zobel said.

For the regulator’s part, Securities and Exchange Commission Chairperson Emilio B. Aquino said the government is doing its part, through the continued issuance of guidelines according to the Revised Corporation Code of the Philippines, to institutionalize the “Stakeholders Theory”—or the belief that companies have to identify the effects of their operations to the communities they are a part of.

The 26 associations that signed the covenant are Alyansa Agrikultura; American Chamber of Commerce of the Philippines, Inc.; Bankers Association of the Philippines; Cebu Business Club; Cebu Leads Foundation; European Chamber of Commerce of the Philippines; Federation of Philippine Industries, Inc.; Filipina CEO Circle; Financial Executives Institute of the Philippines; FintechAlliance.ph; Institute for Solidarity in Asia, Inc.; Institute of Corporate Directors; Integrity Initiative, Inc.; Investment House Association of the Philippines; IT & Business Process Association of the Philippines; Judicial Reform Initiative; Makati Business Club; MAP; People Management Association of the Philippines; Philippine Chamber of Commerce and Industry; Philippine Institute of Certified Public Accountants; Philippine Women’s Economic Network; Semiconductor and Electronics Industries in the Philippines, Inc.; Shareholders Association of the Philippines; UP School of Economics Alumni Association; and Women’s Business Council of the Philippines, Inc. — Denise A. Valdez

Rebounded

MOVIE/TV REVIEW
Rebecca
Netflix

(WARNING: Plot of Daphne Du Maurier’s / Alfred Hitchcock’s / Ben Wheatley’s Rebecca discussed in explicit detail!)

“How dare he?” I hear the folks hissing: “an Alfred Hitchcock classic, and an Oscar Best Picture winner!” Critics haven’t been kind to Ben Wheatley’s 2020 adaptation of the Daphne Du Maurier novel, and who can blame them? It’s as if he’d taken a spray can to La Giaconda and smeared her smile lime green.

Here’s a dirty little secret: I’m not a big fan of Hitchcock’s Hollywood debut feature — the only one to earn that silly little goldplated buttplug in his long illustrious career. It has the middlebrow sensibility of its producer, the even more illustrious David O Selznick, who also won Best Picture with his previous oversized production Gone With the Wind. Selznick was a believer in reasonably faithful adaptations (Gone was basically Margaret Mitchell’s novel word for word, with the racier details slightly scrubbed, projected in glorious technicolor) and when the director turned in an early draft the producer insisted that Hitchcock put aside his “distorted and vulgarized” treatment, and stick to what Du Maurier wrote. “We bought Rebecca and we intend to make Rebecca,” he declared; Hitchcock had little choice but to comply.

Have to admit that Hitchcock does manage to work in some magic, particularly in the opening. “Last night I dreamt I went to Manderley again…” says Joan Fontaine as narrator, her meandering tone matching the camera’s meandering glide down the estate’s overgrown wooded driveway — Selznick was apprehensive about the use of miniatures but it’s exactly that stylized slightly unreal look that helps establish the dreamlike nature of the shot. Bands of light and shadow pass through the forest — clouds across the moon, you think, when it’s likely panels of plywood passed under an overhead spot; your mind has leaped ahead of your awareness to land softly in the intricately constructed, fully realized world of 1938 Cornwall, along the southwestern coast of England.

Wheatley knows he can’t compete with that kind of sorcery, so he doesn’t; his film opens not with woods but water, hair like seaweed streaming sideways in current. Moonlight glimmers through the strands and suddenly the same light is glimmering through leaves, the camera sweeping past trees to fetch up to the entrance of the De Winter estate: “Last night I dreamt I went to Manderley again…” says Lily James as a figure (hers?) walks through the gates, the sound of screams heard faintly from within, the glow of flames flickering redly from either side; a flurry of images past present future, and our heroine arrives by taxi at a hotel in Monte Carlo.

It’s the entire picture summarized in one shot before settling into the story’s proper beginning, sharpening one’s expectations that Wheatley will take on Du Maurier’s novel with confident effrontery, making the material his own.   

Doesn’t happen, or rather doesn’t happen the way we expect. Olivier’s Max de Winter (Laurence Olivier ) was 10 years older than Fontaine’s Mrs. De Winter, and the way his Max handles his freshly wedded wife is the way a father handles his awkward but beloved daughter: with tenderness and a touch of condescension. Armie Hammer is only three years older than Lily James, so the gulf between his Max and his wife is based more on class differences than generational: he’s sophisticated and blindingly rich, she’s naive, prospectless.

Folks object to James: her Mrs. De Winter is too obviously beautiful, too ready to fight back — a prototype feminist just raring to step up and take charge. Fontaine also looks striking — a Hollywood glamorization of Du Maurier’s original concept, a supposedly plain or mousy girl or at least not up to the standards set by the first wife — but the actress had this knack (likely compounded by the fact that her co-star wanted his real-life spouse Vivien Leigh in the role) for playing timid; drop-dead gorgeous, but so shrinking-violet shy she couldn’t believe Laurence Olivier would fall for her. As it turns out Max does (it’s called acting “my dear boy”), and we initially doubt his conviction and believe her insecurities mainly due to Fontaine’s peculiar gift.

James isn’t Fontaine — I don’t fall for her the way I did for Fontaine in her best films* but do think the new girl represents a more believable (as in: less of a doormat) Mrs. De Winter, a more nimble and physically ardent Mrs. De Winter.

And I submit that Wheatley’s casting gambit does pay off, in the crucial moment when James appears at the head of the main staircase wearing dear ancestor Caroline De Winter’s gown — the same gown Rebecca wore on their last grand masquerade. Not (as in Hitchcock) a private moment scored to Franz Waxman’s romantic music, but in front of all the guests, the ball’s very climax, to the sizzle of a lone snare drum. Mrs. De Winter stands at the top of the stairs and the way she’s shot — surrounded by warm candlelight, rich dark tresses replacing a blonde bob…

But how can James do better than Fontaine, one of the classic beauties of Hollywood? It’s because Fontaine in Caroline de Winters’ dress is mainly Fontaine all dressed, the same Fontaine we know and love; James’ however is a less familiar face, and manages a transformation: this is how Max saw his first wife before she died — tall and glorious and wearing a delighted (diabolic?) grin. Through Wheatley’s lens we’re granted a glimpse of the real Rebecca, as reincarnated by an unwitting girl; a vertiginous moment, if you allow the film to bind you to its spell.

Someone complained that Armie Hammer lacks the volcanic fury of Olivier; I submit that Hammer played the character as he was directed, the way Olivier played the character as Hitchcock directed — where the latter emphasized anger management issues spiced with danger (Hitchcock was nothing if not an entertainer), Hammer emphasizes the dramatic truth of Max, wounded by years of marriage to Rebecca. Less victimizer than victim, Max waits to be rescued by his new Mrs. de Winter.

Everyone remembers Mrs. Danvers of course — Rebecca’s housekeeper. As played by Judith Anderson she’s a demonic figure in black dress, sharp nose flanked by feline eyes, often gliding into a shot straight towards the camera, when not standing preternaturally still. An iconic role, kabuki-like in its elegance and intensity; Kristin Scott Thomas has the freedom and confidence to flesh out that intensity with fascinating details — a world-weary air (she’s seen everything, done everything, nothing surprises her); a chilly mask that when dropped reveals an almost cheerful eagerness to confide Rebecca’s most intimate secrets. At one point Scott Thomas barks: “I’ll see you in hell, Danny! I’ll see you in hell first!” and you know it’s a dead-on impersonation — the younger Scott Thomas would have made a perfect Rebecca. The new wife stumbles away in despair; Mrs. Danvers follows, the camera gliding alongside to better catch her supermodel strut. A more victimized Max, a more proactive Mrs. De Winter, a searing hot Mrs. Danvers — folks have also complained that Wheatley merely recycles Hitchcock, without bringing any real change to the table.

Actually there’s a lovely symmetry to all this: Wheatley’s version is like a second Mrs. De Winter to Hitchcock’s supposedly incomparable first. “You’ll never replace her. You can’t replace her,” Mrs. Danvers tells the sobbing new wife. Apparently most people agree; Wheatley can certainly relate. Far as I’m concerned both are interesting adaptations, yet both fail to fully channel Du Maurier: Hitchcock because Selznick kept standing on his neck**, Wheatley because he lacks Hitchcock’s tightly repressed perversity (Wheatley is perverse but hardly repressed). Both also fail to depict Du Maurier’s true ending, of the De Winters half-enjoying their half-life exiled to a string of anonymous hotel rooms, the sight of Manderley denied to them forever (Hitchcock [Selznick?] drops the gloomy epilogue entirely; Wheatley turns the hotel room into an upgraded Club Med suite in Cairo, complete with complimentary wine and languorous morning sex). Both squander a good portion of their production budget on burning down Manderley (Selznick gleefully channeling his earlier Burning of Atlanta) when in the novel Manderley simply vanished into the horizon, the only remaining trace (“looks almost as though the dawn was breaking over there, beyond those hills”) a fall of ash from the sky.

Which is the better version, the Hitchcock or the Wheatley? The Du Maurier, I say, remembering how I cracked open the book one early evening and finished in time for sunrise (“looks almost as though the dawn was breaking over there”), remembering how bitterly disappointed I was when I first saw the Hitchcock (“It was an accident? Then why the years of guilt? Why bother hiding her body?”). If I learned anything from Du Maurier I learned this: no matter where you go, no matter what you do, no matter how high you rise, there’s always someone taller, smarter, more beautiful looming behind. I can certainly relate.

*A digression: I suppose it can be argued that Fontaine’s career wasn’t as brilliant as sister and lifelong rival Olivia de Havilland’s, and given the latter’s filmography (Gone With the Wind; The Strawberry Blonde; They Died With Their Boots On; The Adventure of Robin Hood; Hush, Hush, Sweet Charlotte; The Heiress) you may have a point. But Fontaine did do Ida Lupino’s The Bigamist, and Max Ophuls’ Letter to an Unknown Woman… and on the basis of those two titles I rest my case.

**What’s Hitchcock in Hollywood like when fully unleashed? Take a look at Notorious made six years later, when Selznick was too bogged down with the making of Duel in the Sun to bother his director — an even more perverse menage a trois where the nymphomaniac heroine is sold into marital servitude, the coldhearted adulterer is a CIA agent, the loving husband a Nazi spy.