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Rise in gov’t debt stock still manageable, says AMRO

THE GOVERNMENT’S debt stock is expected to rise on the back of stimulus spending and weaker tax collections, but the ASEAN+3 Macroeconomic Research Office (AMRO) expects a strong economic rebound could reduce this over the long term.

Based on its latest assessment, AMRO said the Philippines, Indonesia, Malaysia and Thailand will see their debt profile and financing capacity “worsening somewhat” this year through 2021 as the coronavirus pandemic weighs on their fiscal position.

“Debt levels will increase in the short term but a strong growth recovery will lower future debt to GDP levels,” AMRO said in a working paper titled “A Framework for Assessing Policy Space in ASEAN+3 Economies and the Combat against COVID-19 Pandemic” published Tuesday.

It said the Philippine government mainly relies on the local debt market to fund its ballooning deficit seen to hit 9.6% of gross domestic product (GDP) this year, while the bulk of its external financing are sourced from development lenders such as the World Bank and the Asian Development Bank (ADB).

AMRO expects the country’s GDP to shrink by 7.6% this year as the pandemic hampers economic activities, before growing by 6.6% in 2021. It said it may take until 2022 before the Philippine economy goes back to its pre-pandemic growth rate.

The government projects the country’s overall debt to hit P10.16 trillion by yearend as it borrows more to make up for the falling tax collections and higher spending during the pandemic. With this, the debt stock is estimated to rise to 53.9% of GDP this year, and further to 58.3% in 2021 and 60% in 2022. In 2019, debt stock reached a record low of 39.6% of GDP.

When the pandemic began, AMRO said the Philippines was in a good financial position after lowering its debt stock level and improving the capacity to raise more revenues through tax reforms.

The report assessed the policy space of selected emerging economies in the ASEAN+3 region in the future, including the Philippines, China, Japan, Korea, Indonesia, Malaysia, Singapore, Thailand and Hong Kong.

“Policy makers across the world have deployed unprecedented policy measures to mitigate the impact of the COVID-19 pandemic on the economy. The extraordinarily large economic stimulus packages could significantly narrow policy space in the future,” AMRO said.

The Philippines is also among the emerging Asian markets that have large fiscal buffers, and has more room for expansionary fiscal policy, based on AMRO’s assessment of debt sustainability indicators. The Philippines and Hong Kong are followed by Indonesia, Korea, Thailand, and Malaysia with “moderate room”; while China has “some room” for a bigger debt stock. Japan and Singapore are left with limited space.

Considering the other indicators, AMRO noted the Philippines and Malaysia “are less vulnerable” to external risks because non-residents hold a lower share of government securities.

Meanwhile, AMRO said none of the countries studied were showing any symptom of a buildup in credit bubbles.

“The Philippines’ fiscal position has improved quite significantly after the GFC (Global Financial Crisis of 2008) with government debt declining from more than 70% to around 40% of GDP. The government has enhanced its tax mobilization capacity and tax administration efficiency by pushing forward tax reforms,” it said.

AMRO said limitations on fiscal policy may largely depend on the funding capacity of domestic investors, while the state also moves to improve line agencies’ ability to implement programs and spend more efficiently.

Also, AMRO warned the stimulus packages launched by countries during the pandemic will have a long-term impact on the fiscal position of emerging markets. 

“When economies emerge from the current crisis, both public and private indebtedness are expected to increase significantly. The financial system is also likely to become more fragile owing to loan losses and impaired balance sheets of borrowers. In addition, a likely prolonged period of accommodative monetary policy may also lead to rising financial imbalances going forward,” AMRO said.

Macroeconomic management will also be more difficult if inflation rises.

“The reduced fiscal policy space necessitates strong commitment to fiscal discipline and a credible medium-term plan to keep debt levels in check. Once the pandemic subsides, regional economies must start rebuilding their respective policy spaces by prioritizing fiscal discipline and prudent debt management,” it added.

Finance Secretary Carlos G. Dominuez III has said the government will maintain its “fiscal stamina” when it comes to stimulus spending to ensure that it can battle a prolonged crisis. — Beatrice M. Laforga

Diokno sees signs of recovery, disinclined to ease further

MANILA — The Philippine central bank does not see an immediate need to ease monetary policy further given the slew of indicators that point towards economic recovery from the contraction caused by the coronavirus pandemic, its governor said on Tuesday.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno told Reuters the economy, which fell into recession for the first time in 29 years in the second quarter, will “bounce back” next year, with “real growth” to start in 2022.

While inflation affords the central bank room to ease monetary policy, Mr. Diokno said in an interview the BSP “right now is not inclined to do that.”

Diokno said his optimism comes from a series of positive economic indicators like easing unemployment, growth in remittances and improving conditions in the manufacturing sector.

“These are signs that the economy is growing or recovering, but it will continue to grow more strong in the next few quarters,” Mr. Diokno said.

The Philippine central bank has been among Asia’s most aggressive in easing policy, cutting its benchmark rate by a total of 175 basis points so far this year, to reduce the economic fallout from the pandemic.

It also slashed lenders’ reserve requirement ratios, and pumped over a trillion pesos worth of liquidity into the financial system. It next meets on Nov. 19, its second to the last meeting this year.

“Inflation is the least of our worries,” Mr. Diokno said.

He said inflation will likely average between 1.75%-2.75% this year, well inside the central bank’s 2%-4% target.

Due to the impact of the coronavirus pandemic the Philippines, for years among the world’s fastest-growing economies, is forecast to see a 6.9% economic contraction this year, the World Bank has said, the biggest since the 1980s and worse than the government’s projected 6.6%-4.5% decline. — Reuters

Petron refinery to close ‘very soon’

By Adam J. Ang, Reporter

THE country’s lone refiner Petron Corp. will be closing its 180,000 barrel-per-day refinery in Bataan “very soon” as it continue to bear losses from a challenged, refining environment and uneven playing field, its top official said on Tuesday.

The listed fuel firm is set to follow the move of its rival Pilipinas Shell Petroleum Corp. that announced two months ago the permanent shutdown of its 110,000 barrel-per-day refinery in Tabangao, Batangas due to worsened margins and the slump in fuel demand during the coronavirus pandemic.

Unless the Philippines will be able to provide a level-playing field for oil refiners and importers, the company will have to close its refining facility to plug billions in losses incurred especially from various taxes, Petron President and Chief Executive Officer Ramon S. Ang told reporters in an online briefing.

“’Pag ‘di maging level-playing field ang Petron refinery with the importers, magsasara na rin kami siguro,” the official said. (If there won’t be a level-playing field between the refinery and importers, we may have to close.)

Oil refiners are imposed with a 12% input value-added tax (VAT) for imported crude oil, which will be refined and later sold as finished products to the market. Finished products are also levied with a 12% output VAT and excise tax. Meanwhile, importers only carry VAT and excise taxes for the importation of finished products.

Mr. Ang claimed the company suffers losses from selling finished fuel during times of price fluctuations in the global oil market, making it impossible to recover prior costs in paying taxes.

He said “the only way” to save the refinery is going to Congress and asking lawmakers to amend the tax regime for the downstream oil industry.

Asked to comment, the Finance department said while it recognized the concern, it’s more of a “supply chain issue rather than a tax issue.”

“We don’t need to change our tax laws on this,” Finance Secretary Carlos G. Dominguez III told reporters in a message.

“It’s happening worldwide; refinery margins are getting squeezed. Big oil companies have been shutting down their refineries in various parts of the world,” he added.

Petron earlier reported that it incurred P15 billion in inventory losses in the six months to June. It recorded P14 billion in net loss in the same period with the price collapse and poor refining margins.

Closing the refinery would help in reducing its losses, Mr. Ang said. The company would not go on default as it still earns from its fuel stations, and that its parent San Miguel Corp. can cover its debts and other obligations, he added.

Shares in Petron inched down 0.62% to close at P3.20 each.

FUEL SUPPLY IMPACT
The Department of Energy (DoE) sees no adverse impact on fuel supply with the impending closure of Petron’s refinery.

“There is none,” said Oil Industry Management Bureau Rino E. Abad, “as long as mag-transition sila nang maayos sa full importation gaya ng ginawa ng Shell (as long as they would properly transition to full importation like what will Shell do).”

Pilipinas Shell earlier said it would convert its refinery into a full importation terminal that will still cater to the fuel needs of its customers in Luzon. The closure of the said facility is part of the wider rationalization scheme of its parent Royal Dutch Shell PLC to reduce the number of its refineries around the world to 10 by the end of the year from 17 a year ago. 

Petron, for its part, would also have to convert its refinery into a small importation terminal, Mr. Ang said.

IMPORT DEPENDENCE
Meanwhile, consumer group Laban Konsyumer, Inc. said the loss of a local refining sector would place the country “at the mercy” of foreign oil traders and suppliers.

“It will make us dependent on foreign supply and prices,” Victorio Mario A. Dimagiba, its president, claimed.

The Philippines’ implied import dependence is expected to jump to 67% by 2025 from 48% over the past decade, though this could “rise further depending on the outcome of Petron’s decision,” Fitch Solutions said in a research note last week.

As the country becomes more dependent on energy imports, its economy will also get “tied to fluctuations” in international power prices.

The research agency said this high dependence poses risks, such as added burden on foreign exchange reserves or the ability to attract foreign investment.

There is also the risk of depreciatory pressures for the domestic currency, while the risk of import inflation or disinflation will become “more elevated.”

In the first half of 2020, the total petroleum import volume slumped to 5.954 billion liters, lower than in the same period in 2019, according to a recent report of the DoE’s oil bureau.

Imported fuel made up over a half of the country’s total fuel demand of 10.794 billion liters. Diesel and gasoline were the top imported products.

Petron and Pilipinas Shell, both of which closed their refineries in May, recorded a 19% decline in combined refining output to 3.878 billion liters between January and June.

With one or no refiner, the Philippines is seen to pay an additional $600,000 to $900,000 each year on oil imports, Fitch said.

Energy Secretary Alfonso G. Cusi in a statement said both Energy and Finance Departments are working together to look into this taxation concern.

“At the same time, we are also evaluating how a closure scenario would impact pricing, as well as the country’s energy security,” he added.

The DoE will respect whatever decision Petron will come up soon, the official said. — with Beatrice M. Laforga

San Miguel seeks P20-B second tranche preferred shares sale

SAN MIGUEL Corp. has applied to launch the second tranche of its preferred shares offering, which will generate funds to support its repayment of loans and additional investments in its P734-billion Bulacan airport project.

In a disclosure to the exchange on Tuesday, the company said it has filed an updated registration statement with the Securities and Exchange Commission to issue up to P20-billion preferred shares.

The proposed offering is composed of up to 266,666,667 Series 2 preferred shares priced at P75 each, which will come from San Miguel’s shelf registration of 533,333,334 preferred shares.

It likewise applied with the Philippine Stock Exchange (PSE) to lift the trading suspension for the second tranche of its shelf-registered preferred shares.

To recall, San Miguel’s board of directors had approved in August the shelf registration of 533,333,334 preferred shares, which may be issued in tranches over a three-year period.

San Miguel offered the first tranche earlier this month, consisting of 266,666,667 preferred shares at P75 each. They are tentatively scheduled to list on the PSE on Oct. 29.

Based on its updated prospectus as of Oct. 26, the company looks to offer 133,333,400 preferred shares and allot up to 133,333,267 shares as an oversubscription option for the second tranche of the offering. These will likewise be listed and traded on the main board of the PSE.

It estimates to raise P19.89 billion net proceeds from the offering, assuming the full exercise of the oversubscription option.

“The use of proceeds for this offer will be for refinancing of the existing obligations of the company and for additional investments in the airport and airport-related projects of the company, and in Bank of Commerce,” the company said in its prospectus.

The proceeds from the first tranche of its share sale are meant to support San Miguel’s Bulacan airport project and P62.7-billion Metro Rail Transit Line 7 construction project.

The company has tapped BDO Capital & Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint issue managers, joint lead underwriters, and bookrunners for the offering.

It also engaged Philippine Commercial Capital, Inc. as co-lead underwriter and joint bookrunner.

San Miguel booked an attributable net loss of P7.59 billion in the first semester of 2020, a turnaround of its earnings of P13.23 billion a year ago, as a result of the coronavirus pandemic to its fuel and beer businesses.

San Miguel shares closed at P101.10 apiece on Tuesday, down P1.90 or 1.84% from the last session. — Denise A. Valdez

Cebu Air, Singapore Airlines’ MRO unit put end to joint ventures

CEBU AIR, Inc. (CEB), the listed operator of budget carrier Cebu Pacific, announced on Tuesday that it is investing $5.61 million to buy the 51% stake of SIA Engineering Co. Ltd. (SIAEC), the aircraft maintenance, repair, and overhaul (MRO) unit of Singapore Airlines, in their joint venture company Aviation Partnership (Philippines) Corp. (APPC).

APPC is currently 51% owned by SIAEC and 49% by CEB, the listed airline operator said in a disclosure to the stock exchange. CEB is acquiring 905,641 shares in APPC at $6.19 each.

Citing its quarterly financial statement ending June 30, CEB said APPC’s net asset value is P447.47 million, and SIAEC’s 51% ownership is equivalent to $4.50 million.

“The acquisition is in line with CEB’s overall strategy to more closely align its line maintenance operations and strategic objectives with CEB’s network and service requirements, for significant operational efficiencies and optimization of resources for an even stronger competitive advantage,” it said.

APPC was established in 2005 to provide line maintenance, light aircraft checks, technical ram handling and other MRO services to the budget carrier and other airlines. It is based in Manila, Cebu, Davao, and Clark, among others.

CEB said its ownership of APPC is not going to have a material impact on its net assets or earnings per share for 2020.

In a separate disclosure, CEB said it had also signed a share sale and purchase agreement with SIAEC to divest its 35% shareholding in SIA Engineering (Philippines) Corp. (SIAEP).

It will sell 4,883,424 shares in SIAEP priced at $1.58 each, which will generate $7.74 million in cash for CEB.

SIAEP, which is currently 65% owned by SIAEC, provides airframe maintenance, repair, de-lease checks, cabin retrofits and overhaul services for 737, A320, and A330 aircraft, as well as line maintenance services in Clark, Pampanga, CEB said.

The airline operator noted the divestment is in line with its strategy to “streamline its fleet management and rationalize its aircraft base maintenance, repair and overhaul offerings to optimize its operational efficiency and further strengthen its core competencies.”

SIAEC and CEB established SIAEP in 2008 as a joint venture firm. CEB said the net carrying value of its 35% investment in SIAEP is $7.50 million as of June 30.

Shares in CEB on Tuesday closed 4.05% lower at P39.05 apiece. — Arjay L. Balinbin

Pandemic inspires online performance

Virologues features 19 monologues musing about the virus and its effects on humanity

THE PANDEMIC may have torn people apart from each other, but in many ways it has also brought people together as in the case of Virologues, an online play featuring 19 monologues musing about the virus and its effects on humanity, which brought together an amateur troupe of actors and poets from several countries (and several time zones).

The play is called by its creators as an “oral history of the pandemic through a curated set of monologues,” according to Bong Figueroa, who wrote many of the monologues, in a press release.

It was created after the alumni of Artistang Artlets presented their first online play, Sundowning, in August.

Artistang Artlets is the resident theater group of the College of Arts and Letters at the University of Santo Tomas.

Sundowning is a one-act play based on UST alumnus Jay Espano’s short film and tells the story of a man suffering from dementia. The play was streamed live via Zoom and despite not knowing much about technology much less about putting a play online it was a successful endeavor.

Virologues, is a series of monologues written by Bong Figueroa and a team of eight writers, meant to encapsulate the experience of the pandemic.

The play will be performed twice: On Oct. 31, 10 a.m,. and again on Nov. 1, 10 a.m., via the Facebook page of AA LAb.

“It’s the story of humanity. Virologues is a collection of sentiments that we feel are sentiments of a lot of people, not just here in the Philippines, but the world,” Mr. Figueroa told BusinessWorld during an interview with the troupe on Oct. 15 via Zoom.

“We never had one great shared misery of our time and this is it. This is the story of us,” he added.

The play has three parts: the introduction (Pagpapakilala), the reminder (Pagpapaalala), and the spread (Paghahasik).

Most of the monologues run for one to two minutes while some may last for more than that. Each runs through a gamut of emotions: from denial, to anger, to mockery, to despair, and to unwilling acceptance. And there’s a rap monologue thrown in for good measure.

What is impressive about Virologues is how a cast and crew of more than 30 people performing in different parts of the world (the Philippines, the US, and Oceania) managed to put together a seamless performance where each monologue has its own theme, its own background, and its own sound effects.

But what was more impressive is how the actors were able to be in character while constantly having to make sure they were keeping eye contact with the camera.

“It took a bit of getting used to, because acting for an online play is so different,” Rivka Nagtalon, one of the actors from Sundowning, noted during the interview.

“You had to make sure you’re always looking at the camera and, unlike on the real stage where you can get cues from your co-actors if you forget your lines, in an online play, you really have to remember your lines perfectly,” she explained.

“One can say that our small crew is pushing the limits of what is possible, and exploring digital theater in the global stage,” Mr. Figueroa said in the release.

Virologues is playing on Oct. 31, 10 a.m. and on Nov. 1, 10 a.m., via the AA Lab Facebook page at https://www.facebook.com/artistangartletsalumni/. — ZB Chua

PSALM to two power entities: Settle P671-M arrears

THE Power Sector Assets and Liabilities Management Corp. (PSALM) has sent final demand letters to two entities in the power sector for them to settle outstanding obligations worth P671.16 million, the Department of Finance (DoF) said in a press release on Tuesday.

The DoF said PSALM President-CEO Irene Joy Besido-Garcia and its acting Vice-President for Finance Manuel Marcos M. Villalon II sent a formal and final demand letter to Abra Electric Cooperative, Inc. (Abreco), with arrears of P599.13 million on its power account and another P36.89 million in unremitted universal charge (UC) collections, as well as its other unremitted UC collections for the months not covered by the submitted reports.

It said PSALM also sent a formal and final demand letter to First Bay Power Corp. (FBPC) to remind the company of its financial obligations to the agency worth P35.15 million.

The two entities have seven days from receipt of the letter to pay or “face legal actions,” according to the DoF. The final demand letters were dated Aug. 24, 2020.

“[PSALM] shall be constrained to avail of all appropriate legal remedies to protect PSALM and the Government’s interest, including the filing of criminal, civil, and administrative cases as well as against your officers and directors for the extreme prejudice you have caused PSALM and the Philippine government,” the letters read, a copy of which were also provided to DoF Secretary Carlos G. Dominguez III, who also chairs PSALM, and Energy Secretary Alfonso G. Cusi.

The DoF said the overdue power account of Abreco covers a period of 10 years to July 31. It consists of restructured account (RA), interest and penalty, value-added tax (VAT) and power rate adjustments approved by the Energy Regulatory Commission (ERC).

Ms. Garcia was quoted as saying that PSALM has given the company written demand letters to ask for payment but “up to this date, [Abreco] continues to ignore the demand letters.”

According to the DoF, the cooperative said it would submit a payment option for its outstanding power account dues on Dec. 9, 2019, and that it had been entering restructuring agreements with PSALM. These have been also breached, the department said.

It said PSALM provided a new restructuring program on Dec. 20, 2019, but was also “ignored.” PSALM’s record of Abreco’s unremitted UC collections were based on reports submitted by the cooperative between February 2003 and December 2015, and does not include yet the unremitted collections from 2016 to date.

The DoF statement quoted Ms. Garcia as saying that PSALM previously sent letters to Abreco “urging it to remit in full its UC collections, but these were also ignored.”

Meanwhile, FBPC’s outstanding debt estimated at P35.15 million covers seven years to July 31, and includes its power bill, interest and VAT, and ERC-approved power rate adjustments.

PSALM had also been issuing statements of accounts to the cooperative, which, according to the DoF, were all “ignored.”

Ms. Garcia warned that FBPC’s overdue account will continue to accumulate interest until the total amount has been fully settled.

BusinessWorld reached out to Abreco and FBPC, but did not get any response from calls, messages and e-mails at the deadline time. — Beatrice M. Laforga

Megawide gets P3.38 million from share issuance to parent Citicore

MEGAWIDE Construction Corp. has raised P3.38 million as part of the subscription of its parent company to its preferred shares.

The diversified engineering firm told the stock exchange on Tuesday that it recently signed a subscription agreement with Citicore Holdings Investment, Inc., which owns and controls 33.3% of its issued and outstanding capital stock.

The two companies agreed that Megawide will issue 13.5 million Series 3 preferred shares to Citicore as an initial subscription for the company’s plan to increase its authorized capital stock.

The shares are priced at P1 each, and Citicore has paid 25% of it in cash, resulting in the P3.38 million payment.

Megawide is applying with the Securities and Exchange Commission to increase its authorized capital stock for preferred shares by P54 million, which will consist of 54 million preferred shares that are non-voting, non-participating, non-convertible and perpetual in nature.

This will result in an expansion of the company’s authorized capital stock to P5.05 billion, divided into 4.93 billion common shares and 124 million preferred shares priced P1 each.

Shares in Megawide at the stock exchange closed at P7.55 apiece on Tuesday, down 29 centavos or 3.70% from a day ago. — Denise A. Valdez

Nominations sought for National Living Treasures award

Ethnomedicine added as new category

NOMINATIONS for the Gawad ng Manlilikha ng Bayan award, also known as the National Living Treasures award, are now open.

According to the website of the National Commission on Culture and the Arts (NCCA), it “conducts the search for the finest traditional artists of the land, adopts a program that will ensure the transfer of their skills to others, and undertakes measures to promote a genuine appreciation of and instill pride among our people about the genius of the Manlilikha ng Bayan.” The award was institutionalized through Republic Act No. 7355 (Manlilikha ng Bayan Act).

The awards follow the UNESCO 2003 Convention for the Safeguarding of Intangible Cultural Heritage, which proposes five broad domains in which intangible cultural heritage is manifested (this according to a presentation during an online press conference on Oct. 26): Oral traditions and expressions, including language; performing arts; social practices, rituals and festive events; knowledge and practices concerning nature and the universe; and traditional craftsmanship.

Dr. Felipe de Leon, Head of the NCCA National Committee on Music, narrowed it down to maritime transport, weaving, carving, performing arts, literature, graphic and plastic arts, ornament, textiles or fiber art, and pottery.

However, he also introduced a new category: ethnomedicine, or traditional healing. In a presentation, he defined it as “the sum total of workable knowledge, skills and practices on healthcare, not necessarily within the grasp of physicalistic scientific framework, but recognized by the people to help maintain and and improve their health towards the wholeness of their being, community, and society.” Meanwhile, he defines ethnomedicine as “a wide range of healthcare systems and structures, practices, beliefs, and therapeutic techniques that have thrived since ancient times in Philippine traditional cultural communities.”

Falling under this would be knowledge of herbal medicine, hilot (which Mr. de Leon says is a field broader than massage), the albulario herb doctor, and the babaylan traditional healers. Mr. De Leon expounded on the idea of “hilot” through his presentation, referring to it as a “science and art of the ancient Filipino healing grounded on the principle of balance of the physical elements; together with the mental, emotional, and spiritual aspects of the person for the prevention of disease and restoration and maintenance of health and well-being.”

“Ang gusto ng NCCA, lalo na ng GAMABA (Gawad Manlilikha ng Bayan) executive council, ay mabalanse. Sa mga nakaraang award, masyadong nabigyan ng diin ang traditional craftsmanship (What NCCA wants, especially the GAMABA executive council, is to have a balance. In previous awards, too much emphasis was placed on traditional craftsmanship),” said Mr. De Leon. “Hindi lang sining na kilala natin ang importante sa ating kultura. Lalo na ang mga ito, sapagkat mayroong kinalaman sa kalusugan ng bansa (Not only the arts we know are important to our culture. Especially these, for these concern the health of the country).”

In a mixture of English and Filipino, he said, “The very fact that these are very much alive in our communities means that its basis is scientific. But another kind of science is involved. Not the physico-chemical science of the West, This is ours.”

So far, there have been 16 National Living Treasures, according to the NCCA website. These are: Blaan ikat weaver Yabing Masalon Dulo, Blaan mat weaver Estelita Bantilan, Yakan textile weaver Ambalang Ausalin, Ilocano textile weaver Magdalena Gamayo, Kapampangan metalsmith Eduardo Mutuc, Sama mat weaver Haja Amina Appi, Ilocano casque maker Teofilo Garcia, Tausug textile weaver Darhata Sawabi, Yakan musician Uwang Ahadas, Sulod-Bukidnon epic chanter Federico Caballero, Kalinga musician and dancer Alonzo Saclag, Tagabawa Bagobo textile weaver Salinta Monon, T’boli  textile weaver Lang Dulay, Palawan musician and storyteller Masino Intaray, Magindanao musician Samaon Sulaiman, and Hanunuo Mangyan poet Ginaw Bilog. 

To become a Manlilikha ng Bayan, an individual or group candidate must: Possess a mastery of tools and materials needed for the traditional, folk art and be a maker of works of extraordinary technical quality; have consistently produced works of superior quality over significant period; have engaged in a traditional and folk art which has been in existence and documented for at least 50 years; command respect and inspire admiration of the country with his character and integrity; and, must have transferred and/or be willing to transfer to other members of the community the skills in the traditional and folk arts for which the community has become nationally known.

A GAMABA awardee enjoys the same privileges as a National Artist awardee: a gold-plated medal from the Bangko Sentral ng Pilipinas, a cash award of P200,000, a lifetime stipend of P50,000, and medical and hospitalization benefits of P750,000 a year; a state funeral, and room in Libingan ng Mga Bayani (should they choose), and a place of honor in state functions.

Mr. De Leon, however, outlines the difference between a National Artist and a National Living Treasure: “A National Artist does not represent a community. He only represents himself, or herself.”

“An awardee or a nominee (of the GAMABA) represents an entire community.”

The deadline for entries is on Feb. 12, 2021. Nomination forms and other requirements can be downloaded via the NCCA website (https://ncca.gov.ph/). Accomplished nominations and attachments should be submitted to the Gawad ng Manlilikha Secretariat at the NCCA offices in Intramuros.  For more details, contact Roche Severo, Awards and Recognition Unit, through

e-mail (gamaba@ncca.gov.ph) or visit the NCCA website at www.ncca.gov.ph. — JL Garcia

The winners of the Leica Oskar Barnack Award 2020 announced

THIS year’s winners of the international Leica Oskar Barnack Award (LOBA) photo competition, now in its 40th edition, have been chosen. In the main category — the Leica Oskar Barnack Award — the winner is Italian photographer Luca Locatelli’ series Future Studies.

The Leica Oskar Barnack Award in the Newcomer category, for photographers up to the age of 30, goes to the Portuguese photographer Gonçalo Fonseca, for his New Lisbon series. 

Future Studies is a long-term project by Mr. Locatelli, in which he researches new ways for humanity to survive on planet Earth. With his series of 20 colour photos, he questions the existing concepts around permanent economic growth and, as a result, opens up an intense debate with regards our relationship with nature and with technology.

“One of the characteristic symptoms of the times we are living in is the growing feeling that we are losing the vision of a better future, of a promising, yet unknown, hypothetical tomorrow,” Mr. Locatelli was quoted as saying in a release. “During these tough times of COVID-19, when the world seems to have stood still, we have been given a chance like never before. We can consider what our behaviour should look like in the future, where efforts should be made to re-establish a healthy relationship with nature and the planet.”

After working as a software developer for over 10 years, Mr. Locatelli began to work as a documentary photographer in 2006. He has been represented by international agencies, such as the Institute for Artist Management, since 2016; and has been a photographer for National Geographic since 2015. Within the framework of his work as a photographer and filmmaker, Mr. Locatelli produces stories in collaboration with journalists, environmentalists, and scientists, to further conceptualise his research.

With 19 color images, Mr. Fonseca’s New Lisbon series offers insight into the dramatic circumstances currently affecting the housing situation in Lisbon. Because of exploding property prices, many tenants have lost their homes. Making use of individual stories, the Portuguese photographer reveals the consequences of increasing gentrification.

“My New Lisbon series explores the issue of housing insecurity, and reveals the fears and anxiety that arise when you don’t have a stable roof over your head. In recent years, at least 10,000 tenant families have been put out on the streets by their landlords, and have no other alternative than to squat in abandoned apartments. This is their story,” said Mr. Fonseca. Mr. Fonseca was among the winners of the World Press Photo in 2016 and 2019.

“On behalf of myself and the other jury members (Joel Meyerowitz, art director and photographer; Pauline Benthede, Exhibitions Director for Fotografiska International; Malin Schulz, Art Director of ZEIT; and Klaus Kehrer, Publisher), I would like to congratulate the winners of this year’s Leica Oskar Barnack Awards. I was impressed by the high level of the quality of the submissions. Our sincere gratitude also goes to all our nominators from around the world,” says Karin Rehn-Kaufmann, Art Director and Chief Representative for Leica Galleries International.

In addition to the prize money, which has been increased to 40,000 euros this year, Mr. Locatelli also receives camera equipment valued at 10,000 euros. As winner of the Newcomer Award, Mr. Fonseca will receive a photographic assignment, a two-week tutoring course at Leica Camera AG Headquarters in Wetzlar, and a Leica Q, valued at 5,000 euros.

Both LOBA 2020 winners will have an exhibition at the Leica Gallery in Leitz Park. In parallel, a comprehensive presentation of 40 Years of Leica Oskar Barnack Awards will open at the Ernst Leitz Museum at the same location.  The exhibition will be accompanied by the LOBA catalogue, which will include all the winners over the 40 years, with comprehensive photo series and background information.

Further information, as well as in-depth interviews with this year’s winners, can be found at: www.leica-oskar-barnack-award.com.

Inclusion goals within reach as virus pushes e-payments shift

THE BANGKO SENTRAL ng Pilipinas said more people are shifting to online transactions amid the coronavirus pandemic. — ANASTASIIA OSTAPOVYCH /UNSPLASH.COM

THE CENTRAL BANK’S financial inclusion and digitalization goals are likely to be met within the term of Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno as more Filipinos shift to online transactions amid the coronavirus pandemic.

“Our goal is that at least 70% of Filipino adults should have a bank account by 2023. But with the pandemic, we’re optimistic that we can meet this goal as early as December 2022,” Mr. Diokno said in a speech at a virtual meeting of the Bank Marketing Association of the Philippines on Tuesday.

The country’s banked population of adults stood at 29% or five million Filipinos as of 2019, improving from the 23% seen in 2017, data from the BSP showed. This means 51.2 million of about 72 million adult Filipinos were still unbanked as of 2019.

Mr. Diokno said the national ID system will help boost financial inclusion as it will take the place of the minimum of two government IDs required by most financial institutions of people opening an account.

The government has started the process of registration for the national ID system, prioritizing the enlistment of heads of low-income households.

“The BSP will print the first nine million [IDs] this year and the rest up to 2022,” Mr. Diokno said.

A joint study by The Economist Intelligence Unit (EIU) and consumer credit reporting agency TransUnion said the country’s digital ID program would be beneficial for the digitalization of the financial system.

“[E]xecutives also agree to a greater extent than average that it is difficult to reconcile multiple versions of consumer identity without a national digital ID,” it said.

Apart from having more Filipinos having accounts in formal financial institutions, Mr. Diokno said their target to have the country transition into a cash-lite economy could also be fast-tracked.

“My personal goal is that half of financial transactions in the country should be digital by 2023, the end of my term. But with the enabling regulations and the pandemic, this goal may be achieved sooner, perhaps by the end of 2022,” he said.

E-payments comprised 10% of the total transaction volume as of 2018 from a mere 1% in 2013, based on a study by United Nations-based Better than Cash Alliance report, By value, online transactions made up 20% of the total from 8% in 2013.

More than a third (37%) of senior executives in consumer-facing firms in the Philippines said “super apps” will become the dominant portal for digital commerce, based on the study by EIU and TransUnion.

“Looking ahead, companies in the Philippines must understand the long-term trends and innovations affecting security, privacy and fraud in order to balance optimal customer experience with rigorous security and fraud prevention and be best positioned to succeed,” it said.

Mr. Diokno said the exponential growth in the use of electronic fund transfer schemes InstaPay and PESONet as well as the increase in the usage of QR codes for payments will support the BSP’s financial inclusion goals.

InstaPay allows retail fund transfers below P50,000 to be credited real-time.

Meanwhile, PESONet processes batch fund transfers which are credited at the end of a banking day. The PESONet Steering Committee is eyeing to allow two settlements per day, even on holidays and weekends, by the first or second quarter of 2021. — L.W.T. Noble

Shang Properties’ income nearly halved in third quarter

THE net income of Shang Properties went down by 49.4% to P417.69 million in the third quarter, despite the firm’s higher condominium sales.

In a disclosure to the stock exchange on Tuesday, the listed firm said that revenues from condominium sales from July to September increased by 20.9% to 1.46 billion.

Meanwhile, the property developer’s revenues from rental and cinemas decreased by 42.2% to P468.4 million. Hotel operations brought in P72.86 million, down 91.8% during the quarter. 

For the nine months to September, the company’s income dropped by 44.1% to P1.12 billion. Revenues from condominium sales, rental and cinemas, and hotel operations all fell during the period.

Shang Properties is a listed operator of office, retail leasing and residential development projects. The firm’s completed projects include Shangri-La Plaza Corp., Shang Properties Realty Corp., and Shang Property Developers, Inc., among others.

Shares in Shang Properties closed higher by 0.37% at P2.70 each. — Angelica Y. Yang

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