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August deficit balloons on pandemic subsidies

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By Beatrice M. Laforga, Reporter

THE NATIONAL Government’s budget deficit tripled to P120.9 billion in August from a year earlier after public spending surged due to subsidies, outpacing a muted rise in revenue amid a coronavirus pandemic, according to the Treasury bureau.

Preliminary data released on Thursday showed last month’s fiscal gap was the least in four months and smaller than P121.2 billion in July.

The government incurs a deficit when it spends more than the money it makes to fund programs that will boost economic growth, especially infrastructure projects. It borrows from foreign and local sources to plug this gap.

Government spending rose by 34.2% from a year earlier to P380.2 billion in August, higher than P377.3 billion in July and the second-biggest annual increase this year after a 37% spike in February.

The Treasury bureau traced the increased spending to pandemic-related expenses such as the P15-billion emergency cash aid given to poor families in Metro Manila, Laguna and Bataan when the cities were placed under a strict lockdown for two weeks.

Subsidy releases to state-run Philippine Health Insurance Corp. (PhilHealth) worth P30.6 billion also drove government spending up.

Of the total, primary spending — spending minus interest payments — climbed by 36.6% from a year earlier to P356.3 billion. Interest payments also went up by 6% year on year to P23.9 billion.

Meanwhile, state revenue rose by 7% to P259 billion in August due to bigger tax collections and income from nontax sources.

Tax revenue went up by 3.1% year on year to P240.6 billion. Bureau of Internal Revenue (BIR) tax collections fell by 1% to P186.1 billion that month, while Bureau of Customs collections increased by a fifth to P53.4 billion.

Coronavirus lockdowns could have slowed company sales, leading to lower tax collections, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said in an e-mail.

Other tax-generating offices posted higher collections last month, with total income rising by 11.5% to P1.2 billion.

Income from other nontax sources also rose by 34% from a year ago to P380.2 billion, with Treasury bureau profit more than doubling to P4.7 billion after agencies returned unused stimulus funds to the national Treasury.

Nontax collections from other offices, which include fees and charges, as well as privatization proceeds, also jumped by 78.8% year on year to P13.9 billion.

The budget shortfall ballooned by 20.4% to P958.2 billion in the eight months to August, the Treasury bureau said.

The eight-month total was half of the P1.856-trillion budget deficit ceiling economic managers had set for the entire year, which was equivalent to 9.3% of economic output.

Overall spending went up by 11% to P2.96 trillion as of end-August, accounting for 63% of this year’s P4.7-trillion disbursement plan.

State revenue growth remained muted, inching up by 3.87% to P2.005 trillion from a year ago, tempered by lower nontax income.

Tax collections, which made up 91% of the total, rose by 9.2% to P1.82 trillion from a year earlier, as BIR’s income went up by 6.6% to P1.39 trillion and Customs revenues increased by 18.7% to P412.3 billion.

“Since government spending depends substantially on tax revenues, muted growth in tax collections can dull government efforts to pump-prime the economy and accelerate economic growth,” Cid L. Terosa, a senior economist at University of Asia and the Pacific School of Economics said in an e-mailed reply to questions.

The Treasury said the BIR must collect an average of P173 billion a month to hit its P2.081-trillion target for the year. Customs needs to raise P51.1 billion monthly in the next four months to hit its P620-billion goal.

Collections of other tax-generating offices rose by 19% to P12.9 billion at the end of August.

Meanwhile, nontax income fell by 29% to P191.8 billion in those eight months mainly due to a 48% drop in Treasury income to P100 billion. Revenue at other offices rose by a fifth to P91.9 billion.

Economists expect the budget shortfall to continue to widen in the remaining four months of the year as the government tries to pump-prime the economy.

“With economic recovery remaining tentative, accelerated government spending will help energize economic activities,” Mr. Terosa said.

Mr. Asuncion said faster public spending is key to stimulating economic activity especially during crises. “However, it is still private consumption and spending that will have to carry the heavy lifting of economic expansion.”

The government should not overly rely on external loans in plugging the budget gap since it could burden the economy, Mr. Terosa said.

State gross borrowings rose by 22% to P2.27 trillion at the end of July. About 81% of the new debts were raised in the local market.

Duterte signs bill taxing offshore gaming operators

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PRESIDENT Rodrigo R. Duterte has signed into law a measure that will tax Philippine offshore gaming operators, according to the presidential palace.

“This is part of our strict regulation of all forms of gambling and prohibition of illegal betting,” Presidential Spokesperson Herminio “Harry” L. Roque, Jr. told an online news briefing in Filipino on Thursday.

The law imposes a 5% tax on gross gaming receipts of offshore gaming licensees and a 25% tax on gross income for nonresident aliens working for service providers of offshore gaming operators.

The minimum final withholding tax due every month should not be lower than P12,500, according to a copy of the law.

The law requires alien employees of offshore gaming companies to have a tax identification number. Violators will be fined P20,000.

Collections from offshore gaming operators will be used to fund universal healthcare (60%), health facilities (20%) and projects that will promote sustainable development goals (20%).

“President Duterte was very clear: He will only allow gaming if they pay the right taxes,” Albay Rep. Jose Maria Clemente S. Salceda, who heads the House Ways and Means Committee, said in a statement. “This will make sure they do.”

He said the most important aspect of the law is that offshore gaming operators are “doing business in the Philippines.”

“They cannot escape our jurisdiction or the reach of our tax authorities,” he said. “It is the single most consequential sentence in that law.”

Mr. Salceda said the government could generate P144.54 billion from the law in the next five years. “It could be bigger than some of the other tax reforms we enacted recently.”

The law will also boost the recovery of the property sector, Mr. Salceda said, noting that Philippine offshore gaming operators are a key part of office occupancy in Metro Manila.

Mr. Duterte in February 2018 ordered state-owned Philippine Amusement and Gaming Corp. to stop approving new casinos.

The operations of offshore gaming companies here were briefly suspended after a coronavirus pandemic hit in March 2020.

They were allowed to resume partial operations in May last year after being classified as business processing outsourcing companies, which are deemed essential to the economy.

Mr. Duterte last month said he would allow a casino to operate on Boracay island in central Philippines, citing the need to raise more funds for the government, which he said was running out of money. — Kyle Aristophere T. Atienza

Marcoses here to stay as Filipinos forget lessons of martial law

By Kyle Aristophere T. Atienza, Reporter

NERI J. COLMENARES was 18 when he was jailed and tortured by agents of the late Philippine dictator Ferdinand E. Marcos, Sr. in 1978, six years after he placed the country under military rule.

While in prison, one of the guards played a potentially deadly Russian roulette game by placing a revolver with a single bullet into the student activist’s mouth, spinning the cylinder and forcing him to pull the trigger.

He also endured mental torture as a prison guard made him watch a fellow detainee get electrocuted by a wire inserted in his genitals.

“I spent four years in prison because I was demanding the return of student councils and the school paper,” he said by telephone. “I was heavily tortured.”

Mr. Marcos on Sept. 23, 1972 announced on national television that he had placed the country under martial law, citing an alleged communist threat. Proclamation 1081, which was dated two days earlier, abolished Congress and allowed him to consolidate power by extending his tenure beyond the two presidential terms allowed by the 1935 Constitution.

More than 70,000 people were jailed, about 34,000 were tortured and more than 3,000 people died under martial rule, according to Amnesty International.

Mr. Marcos ended martial law in January 1981, but it wasn’t until five years later that he was toppled by a popular street uprising that sent him and his family into exile in the United States.

Half a century later, his son Ferdinand “Bongbong” Marcos, Jr., who was among the first to return to the Philippines from exile in 1991, is gunning for the presidency next year.

His sister Imee is a senator, while their mother Imelda had been a congresswoman who represented their hometown in Ilocos Norte for most of the time since she came back three decades ago.

Marcos Jr.’s son Sandro had said he would run for congressman representing Ilocos Norte’s first district, a position that his grandmother held for 24 years.

The Marcos clan did not return because they never really left, said Cleve V. Arguelles, a political science lecturer at De La Salle University.

“In the popular national imagination, we have maintained spaces for a fragmented memory of the Marcos rule, with the Marcoses themselves contesting official narratives to their advantage,” he said in an article sent to BusinessWorld.

‘WHITEWASHING’
A celebrity got flak after posting a YouTube video of her interview with Marcos Jr. days before the 49th anniversary of martial law. In the video, the former senator talked about the “lies” spread by people about his family.

The Ateneo de Manila University’s Martial Law Museum called the video propaganda that tried to present Mr. Marcos as an amiable and approachable figure. “This is also an outright attempt at whitewashing. Mr. Marcos is not and will never be ‘ordinary’ or ‘one with the people,’” it said.

It added that the Marcos family and their allies continue to benefit from the billions of pesos stolen from public coffers during his father’s dictatorship and “they continue to escape accountability for their actions.”

“What do the Marcoses want to say now, that we just invented torture, the forced disappearances and the crimes committed?” Mr. Colmenares, a former congressman, asked.

Human rights violations during the martial law era were barely tackled by his successor, the late President Corazon C. Aquino, because her administration had been weakened by coup attempts, said Michael D. Pante, an associate professor at Ateneo’s Department of History.

“In such a climate, it was hard to put forth a comprehensive retrospective take of the martial law regime, whether in academia or public discourse, that could define the Marcos years as a particularly oppressive regime because it seemed that nothing much has changed after 1986,” he said in a Facebook Messenger chat.

Ms. Aquino oversaw the drafting of the 1987 Constitution, which limited the powers of the President and restored the bicameral Congress that her predecessor abolished.

“Cory was the symbol of people’s outrage against the Marcos regime,” Mr. Colmenares said. “But many things had been compromised and many of the people who played big roles in martial law were still in power. Marcos cronies also remained powerful.”

After the EDSA uprising, elite rule remained dominant, paving the way for the return of the Marcoses to power, Liza A. Maza, a martial law survivor, said in a Messenger chat.

“Because of their immense wealth, the Marcoses, their relatives and their allies, through an electoral exercise that is characterized by guns, goons and gold, were able to return to power,” the former congresswoman said.

“The elite remained in power and the politics of accommodation persisted. Every administration after EDSA accommodated the Marcoses,” she added.

Ms. Maza said the state did not institute measures to bar the Marcoses from holding public office.

Aside from her congressional seat, Imelda Marcos ran for President during the first presidential election under the post-dictatorship Constitution despite pending legal cases against her. Juan Ponce M. Enrile, the dictator’s Defense minister who implemented martial law, later served as a senator for more than two decades.

“Martial law is a story of unbridled military power, and we have published narratives of how the Philippines became an archipelago of detention centers and secret torture sites,” Mr. Pante said. “And yet, we don’t know of anyone from the top brass during the martial law era who was actually punished for all these barbaric acts.”

The history professor said the absence of a well-publicized trial, let alone a convincing conviction of top military personnel “makes it easy for historical distortion to creep in.”

“How could one say that martial law was repressive when we don’t have a list of these supposed torturers and murderers? Was martial law a crime without a criminal?”

Ms. Maza said there was no systematic program in the country’s schools that propagated the lessons of martial law and the economic and political realities during that time.

UNRECOVERED WEALTH
Contrary to claims by people with a sinister plot to revise history, the Philippines became the fourth-worst economic performer out of 22 Asian countries from 1965 to 1986, said Sonny A. Africa, executive director at Ibon Foundation.

“The rise of social media as a major source of information for the public has given them a huge opportunity to use their wealth in a massive disinformation drive on top of the ground propaganda wars they never stopped doing,” he said via Messenger.

“This exploits another weakness of all post-EDSA administrations — the failure to properly educate the public on the dark Marcos dictatorship,” he said. Their disinformation would not get much traction if the people were not so poorly educated about it.”

Mr. Africa said the Marcoses’ “vast unrecovered wealth” let them go beyond local government posts and congressional positions to take national office, including shots at the vice-presidency and presidency.

Ferdinand Marcos stole as much as $10 billion (P503 billion) from the Filipino people, according to government estimates, earning him a Guinness World Record for the “greatest robbery of a government.”

The Presidential Commission on Good Government, created in 1987 to recover ill-gotten wealth of the family and their cronies, has recovered about P171 billion.

“This huge stash of plundered wealth gives the Marcoses enormous room to buy electoral victories, make political allies, co-opt bureaucrats and block legal efforts against them,” Mr. Africa said.

Senator Maria Imelda Josefa “Imee” R. Marcos did not immediately reply to two text messages seeking comment. Mr. Marcos’s spokeswoman also did not immediately reply to two text messages seeking comment.

Although Imelda Marcos lost to Fidel V. Ramos in the 1992 elections, “she still had access to economic and political power through various connections with the landed and political elite,” Mr. Pante said.

The family continued to form alliances with politicians seeking national posts, he said. “As a result, the successive administrations could not afford getting into an open battle in prosecuting the Marcoses for their crimes lest they lose backing in these localities.”

In 2016, President Rodrigo R. Duterte, whose presidential bid was backed by Marcos loyalists, allowed a hero’s burial for the late dictator. A year later, he declared Sept. 11, 2017 — Mr. Marcos’s birthday — a nonworking holiday in Ilocos Norte to honor him.

During a coronavirus pandemic, his allies at the House of Representatives pushed for a bill declaring Sept. 11 as President Ferdinand Edralin Marcos Day.

“Right from the beginning, Duterte has been very vocal of his support for the Marcoses and the reciprocal relationship that existed between the two camps,” Mr. Pante said.

“For one, Duterte wants to present himself as another strongman, a resurrection of the manly, iron-fist style of governance of the dictator, he said. “This kind of image was popular with voters and was an important factor behind his electoral victory.”

“The martial law era was far from being the golden age of the Philippines,” Mr. Colmenares said. “We experienced the Marcos regime’s brutal atrocities, and we don’t want the next generation of Filipinos to experience that.”

PNOC sees ‘next Malampaya’ in Mindanao

THREE areas in Mindanao could hold the potential for natural gas production, an official of the exploration arm of state-led Philippine National Oil Co. (PNOC) said.

“We have several areas where we think are very under-explored. We actually have three sedimentary basins all located in Mindanao — one in Agusan, Davao to the east; the one in Cotabato, the center of the mainland; and then the Sulu Sea farther to the west,” said PNOC-Exploration Corp. (PNOC-EC) Vice-President for Upstream Operations Jaime A. Bacud in a virtual briefing on Thursday.

He said the region might be the location of the country’s next indigenous gas field, following the impending depletion of the offshore Malampaya project.

“We still think that there [is] natural gas potential for these areas and it could be where we could find the next Malampaya,” Mr. Bacud said.

He added that the Philippines still has plenty of untapped oil and gas resources, the utilization of which can bring the country closer to its goal of attaining energy independence.

The Malampaya gas field provides power to five natural gas-fed plants in Luzon, accounting for 30% of the island’s power generation. The offshore project also serves 20% of national demand.

In May, Senator Sherwin T. Gatchalian, who chairs the Senate energy committee, said the remaining reserves in the country’s only indigenous gas field will be completely exhausted by the first quarter of 2027.

The Philippines’ upstream energy sector is facing a “bleak” future, according to Fitch Solutions Country Risk & Industry Research, citing a continuing drop in the Malampaya field’s gas reserves and lack of investment in new exploration.

In an outlook published last month, Fitch said that the gradual decline in gas production from the field is already driving up electricity costs and causing rotational power interruptions across all major islands. 

COAL DIVESTMENT
DURING the event, the top official of AC Energy Corp. said the Ayala-led company is considering scaling up its renewables capacity in Mindanao when the time is right, adding that it is more than halfway through its target of divesting in its coal assets.

“In the case of our divestment program for coal, that is quite on track. We’ve already divested effectively more than half of our total portfolio so we’ll continue to divest and continue the reinvestment process to focus on scaling up renewables, including Mindanao when the timing is right, which is hopefully around the corner,” said AC Energy President and Chief Executive Officer Eric T. Francia.

The company previously announced it is transferring all of its indirect shares in Mindanao’s largest coal-run plant in Kauswagan to its partner, Power Partners Ltd. Co. and certain affiliate companies.

According to Mr. Francia, Mindanao stands to gain from many investment opportunities in renewable energy once the region starts participating in the wholesale electricity spot market, retail competition and open access, and green energy option program.

Meanwhile, Aboitiz Power Corp., which has invested P190 billion in the development of new renewable energy projects in the next decade, is one with the country and rest of the world in decarbonization efforts, a company official said.

“But for a developing country like ours, we have a long way to go. It is possible, but it will take time. Coal remains the most reliable and at the same time, most economically viable energy source for us,” said AboitizPower Chief Operating Officer for Distribution Utilities Anton Mari G. Perdices.

Before the entry of the firm’s Therma South Inc.’s 300-megawatt baseload power plant in Davao, residents across the region were experiencing hours of power outages, he said.

“The reality is that we cannot do away with coal unless a new technology proves to be environmentally sustainable yet as reliable and as cost-effective as coal. There also has to be a balance between responsibilities of the government, private sector and consumers to make our energy system work,” Mr. Perdices added. — Angelica Y. Yang

Traveling in the new normal

BELLEVUE BOHOL

HSMA launches 2nd season of online travel show

SUNBATHING at the beach, diving for the first time, going on a food trip, exploring extreme sports — these are a few of the activities we have missed as tourists over the past year and a half. As we wait for the safe opportunity to travel, the second season of the online travel lifestyle series Go Safe, Go Travel: Walk and Talk with Us can help with informing the public about what it’s like to travel in the new normal.

Go Safe, Go Travel: Walk and Talk with Us — a project of the Hotel Sales and Marketing Association (HSMA), in partnership with the Department of Tourism (DoT), Tourism Promotions Board (TPB), and Isentia — aims to jumpstart the tourism industry, which accounts for 12.8% of the country’s national gross domestic product (GDP).

The series is streaming on Facebook and YouTube starting this month until December and as a CNN TV special in November this year.

“Before traveling to a new destination, I like to watch travel shows that will inspire me and my family or my friends about our upcoming trip. It’s a great way for all of us to plan ahead on what destinations to check out, what restaurants to eat in, the shops we want to visit, and activities we want to enjoy while never losing sight of the all-important fact of staying safe and healthy,” said HSMA President Benjamin Martinez in a statement.

“This is how we envision HSMA GPSTV Go Safe, Go Travel: Walk and Talk with Us to be. Think of it as an appetizer of future travels to come.”

SEASON 2
Hosted by Kevin Lapeña, Go Safe, Go Travel: Walk and Talk with Us at GPSTV feature gastronomic and cultural adventures, staycations, beach and adventure destinations, and planning for milestone events when it is allowed.

Featured hotels include The Peninsula Manila, Hotel Lucky Chinatown, The Bayleaf Intramuros, Sofitel Philippine Plaza, Marriott Clark Hotel in Pampanga, Acuaverde Beach Resort in Batangas, Crimson Resort & Spa Boracay, and Discovery Shores Boracay.

“Last year, GPS TV Season One took an informative approach in the digital platform, creating awareness of travel destinations. This year, GPS TV Season Two will take a more in-depth approach and experiential travel,” HSMA Vice-President Loleth So said during an online press conference on Sept. 22 via Zoom.

The online series will also be sharing the latest travel protocols with viewers as well as special offers from HSMA-member hotels and resorts.

“We not only promote the enjoyment and pleasures of tourism, but, more importantly, highlight that travel can be safe and worry-free. It is crucial to discuss how we can encourage our guests towards the new normal of traveling. As stakeholders in the industry, we are in close coordination with the Department of Tourism who constantly keeps us abreast of all the government guidelines and protocols,” Ms. So said.

“GPS TV [also] aims to reach remote workers, families, couples, regional travel groups, and local leisure travelers to plan ahead and learn how to navigate themselves to their preferred destination,” she added. “With 140 hotel and resort members under our wing, our viewers will experience every property, giving them various choices for their next plan.”

Aside from the new season launch of the online series, HSMA is currently hosting the September Online Sale (SOS), an online sale of hotel vacation packages.

“For the first week [of the online sale], we have reached P6 million in total sales,” Mr. Martinez said.

Eighty-four hotel and resort chains and brands are participating in this year’s SOS, which runs until Oct. 15.

“Hotels are looking forward to re-igniting or restarting all business starting next year,” Ms. So said.

HSMA GPSTV’s Go Safe, Go Travel: Walk and Talk with Us Season Two is streaming on GPSTVofficialph on Facebook and on YouTube. — Michelle Anne P. Soliman

Five of the best new crime novels to read (and one golden oldie)

AS the nights draw in and we spend more time indoors, autumn can be a good time to get stuck into the literary world’s latest murder mysteries. And the last few months have seen the publication of major new works by some of the genre’s most respected authors.

So here are half a dozen recommendations that might help to keep you warm — or at least offer the homeliest of chills — on an evening in.

LONDON BRIDGE IS FALLING DOWN BY CHRISTOPHER FOWLER
Long trailed as the final outing for Christopher Fowler’s duo of decrepit detectives, Arthur Bryant and John May, the 20th book in a saga that started in 2004 answers a lot of the series’ unanswered (and unasked) questions.

Mr. Fowler has recently hinted that this might not be quite the end for these stalwarts of London’s Peculiar Crimes Unit, whose adventures the series follows from the Blitz to the present day, through an extraordinarily erudite exploration of the mythic geography of the metropolis. Let’s pray there’s a little more life to be drawn out of these enthralling creations of Mr. Fowler’s absurdly fertile imagination.

A LINE TO KILL BY ANTHONY HOROWITZ
This third novel in Anthony Horowitz’s chronicles of the adventures of private investigator, Daniel Hawthorne, again sees a fictionalized version of the author himself play biographer to the enigmatic consulting detective. He is Watson to Hawthorne’s Holmes, although he likes him rather less: while Hawthorne’s self-assured brilliance enchants others, it constantly infuriates Mr. Horowitz himself.

Set on the island of Alderney, Mr. Horowitz’s witty and crafty narrative is as evocative of the detachment and claustrophobia of rural isolation as last year’s Moonflower Murders: “The road didn’t seem to go anywhere. In the distance, a hillside rose steeply, blocking anything that might tell me which century I was actually in.” Unputdownable stuff.

1979 BY VAL MCDERMID
Late revisions to Val McDermid’s previous novel, published last August, brought us extraordinarily up to date with a Scotland teetering on the verge of the pandemic. By contrast, her latest work harks back to four decades before coronavirus disease 2019 (COVID-19). Her tale of dodgy dealings in 1970s Glasgow, set against a backdrop of familiarly fervent independence controversies, introduces her latest heroine, the bright and determined young reporter Allie Burns.

Burns is a breath of fresh air, from her first appearance on a snowbound train returning to the city from a family Christmas, she is eminently sympathetic, engaging and likeable. And she doesn’t yet bear the baggage of Ms. McDermid’s long-running protagonists Carol Jordan and Karen Pirie (at least not to begin with).

Ms. McDermid invokes the shoddy, gloomy zeitgeist of the late ‘70s with her characteristic deftness of touch: “blizzards, strikes, unburied bodies, power cuts, terrorist threats and Showaddywaddy’s Greatest Hits topping the album charts; 1979 was a cascade of catastrophe.”

THE MAN WHO DIED TWICE BY RICHARD OSMAN
Richard Osman’s debut novel, The Thursday Murder Club, was the publishing phenomenon of 2020. That book was both clever and funny, but more importantly it was reassuringly parochial: a conundrum worthy of the golden age of detective fiction, investigated by an emphatically charming group of residents of a retirement community.

Mr. Osman’s writing is reminiscent, in its tone and textual economy, of Sophie Hannah’s splendid reboot of Hercule Poirot (as ingenious as Christie but rather more nuanced and progressive). His sequel, a tale of stolen diamonds, involving the Mafia, MI5 and multiple murders, all kicked off by “an invitation from a dead man,” has just come out, and will likely send Penguin’s printing presses into overdrive.

A CHANGE OF CIRCUMSTANCE BY SUSAN HILL
October sees the publication of the 11th book in Susan Hill’s series of Simon Serrailler novels. Ms. Hill’s elegant provincial cop may be the most rounded of today’s fictional detectives. As with P. D. James’s Adam Dalgleish, it seems the author herself is a little enamored of her dashing but troubled hero — romantically misguided and prone to a perhaps unnecessary degree of listlessness.

As she drags him onto another emotional rollercoaster, her readers surely cannot fail to share that bittersweet attachment. Approaching her 80th birthday in February next year, Ms. Hill’s writing has lost none of its immediate relevance and urgency — this time focusing upon the impacts of county lines drug-running networks. Fans of the series will find the prospect of an update on the lives of its central characters absolutely irresistible.

BIRDMAN BY MO HAYDER
In July, British fiction suffered the loss of one its most compelling and commanding voices. If there is to be any consolation from Mo Hayder’s death, at the age of 59, then let it be that it might draw a new generation of readers to her work.

The best place to start is her stunning breakthrough novel, the justly celebrated Birdman, published at the turn of the millennium. The opening ordeal for her problematic protagonist, Detective Inspector Jack Caffery, offers readers a gripping ride — one that makes the darkest of Nordic noir look decidedly beige by comparison. Ms. Hayder’s work will take you through autumn, to winter and beyond.

 

Alec Charles is the Dean of the Faculty of Arts at the University of Winchester.

Gokongweis keen on healthcare

THE Gokongwei group, which is involved in the drugstore business through Robinsons Retail Holdings, Inc. (RRHI), is interested in exploring opportunities in the healthcare sector.

“We are looking at the healthcare space primarily because, just like in any other country, it’s driven by longer-term trends such as the aging population and… [its impact on] the economy. This will continue to increase as people get wealthier,” RRHI Chairman Lance Y. Gokongwei said at a virtual forum on Thursday organized by the Makati Business Club.

“I think from our assessment, we are not yet sure whether we have a right to win in this space. The only space where we are actively involved is really in the pharmacy side where we own a leading generics brand, which is TGP (The Generics Pharmacy), and we now have the second largest chain of drugstores, which are the combined Southstar Drug and Rose Pharmacy,” he added.

RRHI acquired Rose Pharmacy in 2020 from Dairy Farm International Holdings, Ltd. wholly owned unit Mulgrave Corp. B.V.

Rose Pharmacy retails medicine and personal care products as well as in-house names Rose Pharmacy Generics and Singapore-based Guardian Pharmacy’s personal care products.

RRHI launched its 870th Rose Pharmacy drugstore in Cebu’s Lapu-Lapu City on Sept. 17.

Prior to Rose Pharmacy, RRHI acquired Southstar Drug in 2012 and community drugstore chain TGP in 2016.

TGP has over 2,000 franchised stores nationwide, offering generic and affordable medical products.

NEW SUPERMARKET MANAGER
Meanwhile, RRHI has appointed Stanley C. Co as the new managing director of the listed retailer’s supermarket segment, taking the post of Justiniano “Jody” S. Gadia following the latter’s retirement.

“Jody and Stanley have been instrumental in many of our achievements as a multi-format retailer, and with Stanley’s solid track record as a manager, I believe that he will continue Jody’s legacy in paving the Supermarket Segment’s path towards more milestones and new frontiers for growth,” RRHI President and Chief Executive Officer Robina Gokongwei-Pe said in a statement on Thursday.

Mr. Gadia will be retiring as managing director at the end of the month. He previously held leadership positions in Universal Robina Corp. for a decade, and held leadership roles in RRHI in the last 19 years, and was the head of RRHI’s supermarket segment for 16 years.

RRHI’s supermarket segment includes Robinsons Supermarket, The Marketplace, Shopwise, Robinsons Easymart, and No Brand.

Mr. Co will take on the role by the first of October, after having been with RRHI for 18 years. He was the group general manager for the DIY (do-it-yourself) segment of the company, before being appointed in March this year as deputy managing director of the supermarket segment.

Mr. Co obtained a Master of Business Administration degree from De La Salle University in 2003 and a bachelor’s degree in commerce, major in economics from the University of Sto. Tomas in 1998.

“With the dynamic nature of retail and the disruptions brought about by COVID-19 (coronavirus disease 2019), there is much room for further innovation in the business to make shopping safe, convenient, and delightful for both our offline and online customers,” Mr. Co said.

Shares of RRHI at the stock exchange went up by 0.51% or 25 centavos to close at P49.25 apiece. — Arjay L. Balinbin and Keren Concepcion G. Valmonte

Style Never Dies: Designer Criselda Lontok, 81

DESIGNER CRISELDA LONTOK — PHOTO FROM FACEBOOK.COM/ CRISELDA R. LONTOK

By Joseph L. Garcia, Reporter

CRISELDA LONTOK, the designer of choice for Manila high society women’s ready-to-wear outfits, died in the morning of Sept. 22. She was 81.

Her son, John Fernandez, confirmed the news with a Facebook post on Sept. 22. “It truly breaks my heart to announce the passing of the very first queen in my life, my mama, Criselda R. Lontok,” he said.

“God can be so full of surprises that I sometimes wonder why Mama?? But I have humbly learned to accept His will and respect the greater purpose of this very, very sad moment in our family’s lives,” he continued.

Batangas-born Ms. Lontok was a local beauty queen in her hometown, but later became a model and a society swan after being discovered by fashion designer Ben Farrales. In an interview with BusinessWorld in 2018, she said that she modeled for six years in the 1960s before marrying and setting up her own family.

“I’ve always had the idea of giving comfortable clothes, and something that’s very practical, because I’m a very practical person,” she replied when asked how these experiences molded her own style sense.

In 2018, Ms. Lontok celebrated the 35th anniversary of her eponymous label for Rustan’s. She began working for Rustan’s as a merchandising manager in the 1970s, during which she was taken under the wing of Rustan’s co-founder, Gliceria Rustia-Tantoco. Mrs. Tantoco discovered her talents and awarded Ms. Lontok her own line, which began in 1983.

Calling Ms. Lontok an “Esteemed House Fashion Designer for Rustans,” a statement from the Rustia-Tantoco family read: “The management and the staff of Rustan’s wish to express their heartfelt condolences to her bereaved children, grandchildren, and other loved ones, and request the pious readers to join us in prayer for her eternal rest. It was an absolute privilege knowing Criselda. She will always be remembered for her personal touch and incredible attention to detail, as a fashion icon continuously reinventing the Philippine fashion retail industry, and as a loyal and steadfast member of the Rustan family.”

The Fashion Designers Association of the Philippines said in a Facebook post: “(The) Fashion Designers Association of the Philippines is in deep sadness for the passing of Philippine Fashion Icon Ms. Criselda Lontok. It was a colorful and inspiring journey you have shared with us. Thank you so much for all the wonderful memories and for the love and support you have shared with our humble organization.”

Ms. Lontok became known for dressing older women of Manila’s higher social strata, but it hadn’t always been that way. According to her, when she started the line, it wasn’t meant exclusively for older women. She did, however, favor, loose, casual, but elegant tailoring in her clothes, which appealed to bigger customers. It was just incidental that the bigger women also happened to be older.

“These women, they go for elegant styles, which I always carry,” she said. “You know why I got the older women?” she told BusinessWorld after being queried if her line had once been young. “There are so many things to hide.”

Her designs, with flare, flounce, and doses of elegance, seemed to be meant to be worn for photo spreads in society magazines. She kept her designs current by checking out the styles online and on different magazines. “I don’t take [the fashions] as [they are]. I always adjust it to my clients, so they won’t be fashion victims.”

“I want them to look pretty and elegant at all times.”

As late as 2019, Ms. Lontok had been innovating, coming out with her own line of bags and shoes. Asked then if she planned to retire. She said, “No — as long as I’m alive, as long as I’m strong.”

Healthcare firms’ net income nearly doubles

LOCAL health maintenance organizations (HMOs) saw their net income grow by almost double to P1.56 billion in the first quarter on the back of lower benefits and claims, the Insurance Commission (IC) said.

HMOs’ combined net profit went up by 95.6% from P797.6 million in the first quarter of 2020, Insurance Commissioner Dennis B. Funa said, citing the latest unaudited financial statements from industry participants.

He attributed the increase to lower expenses reported by companies, which went down by 9.24% year on year, as health benefits and claims fell by 15.6% to P7.6 billion in the first quarter from P9 billion in the same period last year.

The industry’s total equities climbed by 94% to P15.14 billion from P7.8 billion a year ago supported by higher retained earnings, which made up 77.9% of HMOs’ overall equity.

Amid reduced collections from membership and enrollees’ fees, HMOs reported lower revenues at P12.79 billion in the first three months, down by 2.9% from P13.17 billion the year before.

Meanwhile, total liabilities grew by 20.4% to P51.42 billion from its year-earlier total of P42.72 billion.

Combined assets of the industry hit P66.56 billion as of March, rising by 31.8% from P50.51 billion in the first quarter of 2020. 

Mr. Funa said the growth was driven by higher cash and cash equivalents, which accounted for more than half of overall assets.

HMOs released P3.98 billion in coronavirus-related payouts so far, or nearly half of all the pandemic-related payouts issued by the industry worth P8.25 billion from March 2020 to June of this year.

“HMOs have a unique place in our country’s fight against the pandemic as frontliners and have become a strong and dependable partner in ensuring that our country’s healthcare needs during these uncertain times are addressed,” the IC chief said. — Beatrice M. Laforga

Clint Eastwood film opens hybrid 34th Tokyo International Film Festival

A STILL from the film Cry Macho — SCREENSHOT FROM YOUTUBE.COM/WBPICTURES/

CLINT Eastwood’s film Cry Macho will be opening this year’s Tokyo International Film Festival (TIFF) on Oct. 30. The neo-Western drama will be making its Japanese premiere while celebrating Mr. Eastwood’s 50th year as a filmmaker.

The film tells the story of a onetime rodeo star and washed-up horse breeder who takes a job to bring a young boy home to Texas and away from his alcoholic mother. On the way, the world-weary horseman finds his own sense of redemption through teaching the boy what it means to be a good man.

Mr. Eastwood directed, starred and produced the film.

Meanwhile, the film adaptation of the hit musical Dear Evan Hansen will be closing the festival on Nov. 8. The Stephen Chbosky film follows the coming-of-age story of the titular character who, in the hope of belonging somewhere, concocts a heartbreaking yet compassionate lie. Ben Platt, who played Evan Hansen in the Broadway musical, reprises the role in the film.

CHANGES IN THE FESTIVAL
The TIFF, considered one of the most prestigious film festivals in Asia, will use a hybrid program for its 34th year — a format introduced in last year’s festival in response to health and safety restrictions needed while dealing with the coronavirus disease 2019 (COVID-19) pandemic.

“Last year’s TIFF proved that a meaningful film festival could be held under the various restrictions of COVID-19. And now, TIFF is about to undergo a major transformation. I hope that I can make full use of my experience and knowledge and contribute to that transformation,” Shozo Ichiyama, the festival’s programming director said in a statement.

This year, the festival will be holding physical screenings at theaters in the Hibiya-Yurakucho-Ginza area of Tokyo, a change from its longstanding Roponggi venue.

The festival will also be held concurrently with the Tokyo Filmex, a 21-year-old international film festival that focuses on new and independent feature films from Asia. Filmex will also be held in Hibiya and, according to TIFF, the proximity of the two festivals “will enable enhanced convenience for audiences to watch films at both.”

The Tokyo International Film Festival runs from Oct. 30 to Nov. 8. For more information, visit https://2021.tiff-jp.net/en/.ZBC

PHL banks’ exposure to Chinese assets minimal

LOCAL BANKS have minimal exposure to China as they are largely domestic-oriented, a central bank official said amid the debt crisis faced by Chinese real estate giant Evergrande Group.

“In terms of exposures to China, claims from counter-parties based in China and its Special Administrative Regions is minimal at 0.86% of total banking system assets,” Ma. Cynthia M. Sison, Deputy Director at the Supervisory Policy and Research Department of the Bangko Sentral ng Pilipinas (BSP), said at an online briefing on Thursday.

Ms. Sison said BSP regulations safeguard banks from overexposure to real estate as they are only allowed to invest in these kinds of assets for two purposes.

“First, they can own real estate for their own use or as banking premises. Second, they are allowed to hold real estate assets which are acquired in settlement of claims or foreclosed real estate property,” she said.

In the case of the latter, Ms. Sison said banks are legally required to sell foreclosed real estate property within five years.

Due to these rules, she said local lenders are unlikely to have significant investments in Chinese real estate. She added that banks have generally limited cross-border exposures.

“Philippine banks are largely domestic-oriented with cross border exposures or claims from counter-parties in other countries at 9.4% of total banking system assets,” she said.

BSP data showed total assets of the banking industry stood at P19.795 trillion as of end-July. Banks’ assets in the form of gross real and other properties acquired amounted to P129.648 billion in the same period.

Evergrande, China’s second-biggest developer and a key player in the country’s housing boom, is facing liabilities worth more than $300 billion. This is equivalent to 2% of China’s gross domestic product.

The People’s Bank of China last month summoned Evergrande officials to order them to reduce debt risks and prioritize stability.

Several projects were left unfinished by the developer due to cash crunch, leaving homebuyers looking for assurance regarding their properties.

Evergrande’s main unit, Hengda Real Estate Group, on Wednesday said it would make a coupon payment on its domestic bonds on Sept. 23, providing some relief to markets that were concerned over a possible default, Reuters reported.

Earlier this week, Finance Secretary Carlos G. Dominguez  III said they are assessing if Chinese contractors involved in the country’s infrastructure program are affected by Evergrande’s situation. — L.W.T. Noble

PSE clears Jollibee’s P20-B preferred shares issuance

THE Philippine Stock Exchange (PSE) approved on Wednesday the shelf listing of Jollibee Foods Corp.’s (JFC) P20-billion preferred shares, which will be offered by the company within a period of three years from the effectivity of its registration statement.

The company will offer up to 12 million Series A and Series B preferred shares for up to P1,000 each for the first tranche. These shares are cumulative, nonvoting, non-participating, nonconvertible, and redeemable.

Its base offering will comprise of eight million Series A and Series B preferred shares, with an overallotment option of four million shares.

On Thursday, JFC set the initial dividend rate for Series A preferred shares at 3.2821% per annum (p.a.) and Series B preferred shares at 4.2405% p.a.

JFC plans to start its offer period on Sept. 28 until Oct. 4, with a tentative listing date of Oct. 14.

The PSE said its approval on the listing of the preferred shares is still “subject to the company’s compliance with all of the conditions and post-approval requirements of the exchange.”

Series A preferred shares will be traded under stock symbol “JFCPA,” while Series B preferred shares will trade under “JFCPB.”

The company said it plans to use the proceeds for the partial buyback of its senior perpetual securities and for general corporate purposes such as commissary and store expansion.

NEW STORES IN CANADA
Overseas, Jollibee launched a mobile kitchen in Ontario’s Hamilton and a new store in Winnipeg in Manitoba.

The company worked with online food services platform DoorDash to open the mobile kitchen, which started serving customers beginning Sept. 2. The 15-meter mobile kitchen is located at the southwest corner of the CF Lime Ridge Mall.

“As we continue to expand our store network across Canada, the mobile kitchen provides the ideal platform to serve our customers in a more flexible and far-reaching capacity, especially in communities where we don’t have a physical store location yet,” Maribeth D. Dela Cruz, president of the Jollibee group for North America, Philippine brands, said in a separate statement on Thursday.

Hamilton-based customers may order Jollibee meals from the mobile kitchen via jollibeefoods.com, the Jollibee app, and through the DoorDash app.

Meanwhile, its Winnipeg store is the company’s 18th branch in Canada and is part of the company’s plan to expand its stores to 500 in North America within five to seven years.

The Winnipeg store has a drive-thru option and caters to online orders via the jollibeecanada.com website, the Jollibee app, and through the DoorDash app. It also allows call-in and pick-up services.

“The city’s close-knit Filipino community has especially embraced our brand since day one, and we are excited to provide another convenient location for both our fans and newcomers who crave a delicious quick service option that they truly can’t get anywhere else,” Ms. Dela Cruz said.

JFC shares on Thursday rose 3.83% or P7.50, closing at P203.40 apiece. — Keren Concepcion G. Valmonte