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Suzuki PHL reopens most dealerships, gives ‘cost-efficient’ promotions

SUZUKI PHILIPPINES (SPH) reports that “a majority” of its dealerships have opened this month. These facilities are now ready for sales, after-sales services, and test drives. SPH said in a release that it “will continuously find ways to present customers with promos that are cost-efficient for interested vehicle buyers, including down payment policies and discounts.” Here are the reopened dealerships:

SPH recently reassured customers that dealerships will be following so-called SMART guidelines, encouraging personnel and customers to: sanitize thoroughly, maintain safe distancing, adhere strictly, reach people online, and think positive. For more information, visit www.suzuki.com.ph.

Market to watch case count as economy reopens

By Denise A. Valdez, Reporter

THE country’s ability to keep the number of coronavirus disease 2019 (COVID-19) cases low despite a relaxed lockdown will determine the movement of the market this week.

The benchmark Philippine Stock Exchange index (PSEi) soared on Friday to 5,838.84, up by 268.62 points or 4.82% from the previous day’s close.

After ending the week in green territory for three out of four trading days, the PSEi rose 5.4% on a weekly basis.

The anticipation and the eventual confirmation of easing quarantine measures in Metro Manila boosted market confidence last week. Value turnover surged 121% to an average of P8.88 billion. Net foreign outflows went down 34% to an average of P227.71 million.

“Currently, the local market is enjoying the optimism stemming from the easing of restrictions here in the Philippines,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message on Sunday.

“Our major regions in terms of economic contribution are now allowed with more economic activities. The said optimism has even brought the market above its 5,700 resistance level,” he added.

As President Rodrigo R. Duterte relaxed the lockdown in Metro Manila starting June 1, industries and government offices are set to resume work. This is expected to kick off the economy’s recovery after a lockdown of over two months, which resulted in a 0.2% gross domestic product (GDP) contraction in the first quarter.

However, several sectors are wary about the decision as local COVID-19 cases continue to rise. The Health department said there were 17,224 COVID-19 cases in the Philippines as of Saturday, of which 12,466 are active and the rest have either recovered or died.

Mr. Tantiangco said sustaining investor optimism would depend on local developments regarding the spread of the virus.

“(This) week, the number of new coronavirus cases here in the country would be monitored to see if the downgrading of restrictions has brought an unwanted consequence namely, a further spread of the virus. If so, the local market could fall below the 5,700 level again,” he said.

Online brokerage 2TradeAsia.com said the market may still rise as investors hold on to hopes of economic recovery.

“Having run above 5,700 on good volume last Friday, eyes are set on the PSEi’s ability to move towards 6,000-6,500. Note overall that volatility remains in place, as sentiment remains hyped-up with several countries’ gradual transition in reviving business activity,” it said in a market note.

2TradeAsia.com said it is important for companies now to emphasize how they plan to boost revenue streams, such as by incorporating an e-commerce model.

2TradeAsia.com is putting immediate support within 5,700-5,750 and resistance within 5,900-6,000. Mr. Tantiango of Philstocks is setting the trading range from 5,700 to 6,100.

Stuff to do at home (06/01/20)

Plays on CCP Online

Watch Virgin Labfest 15 entries A Family Reunion by Anthony Kim Vergara and Ang Paguulyanin ni Olivia Mendoza by Rolin Migyuel Obina at the Cultural Center of the Philippines’ (CCP) YouTube channel (bit.ly/CCPOnlineYT). The shows will be online for one week.

We Are One: Global Film Festival

International film festivals come together for the We Are One: Global Film Festival from May 29 to June 7. It will feature full-length films, shorts, music, documentaries, and panel discussions curated by the Berlin International Film Festival, BFI London Film Festival, Cannes Film Festival, New York Film Festival, Sundance Film Festival, Sydney Film Festival, Tokyo International Film Festival, Toronto International Film Festival, Tribeca Film Festival, and Venice Film Festival. To watch, visit https://www.youtube.com/weareone. For more information and film schedules, visit http://www.weareoneglobalfestival.com/.

J.K. Rowling’s The Ickabog

Best-selling author J.K. Rowling is releasing her new children’s novel The Ickabog online. Ten chapters are currently available, with more chapters to be released over the next seven weeks. The book is set for full release in November. Read the chapters for free at https://www.theickabog.com/.

Swans for Relief


Thirty-two premier ballerinas from 22 dance companies in 14 countries — including Ballet Philippines’ Denise Parungao and Jemima Reye — dance in a video of Le Cygne (The Swan) to the music by Camille Saint-Saëns, performed by cellist Wade Davis. The video was done in support of Swans for Relief, a fundraising program organized by dancers Misty Copeland and Joseph Phillips. Funds will be distributed to participating dance companies as a COVID-19 relief fund. To watch performances, visit https://www.youtube.com/watch?v=PT14o5Wq7gE/ To donate, visit https://charity.gofundme.com/o/en/campaign/swansforrelief.

TP’s Pantawid ng Tanghalan

Tanghalang Pilipino (TP) launches the Pantawid ng Tanghalan fundraising project to sustain its commitment to providing the public with artistically excellent and socially relevant productions during the pandemic. From May 30 to June 30, TP will be streaming six of its original plays through iWant. The plays are Lam-ang: An Entho Epic Musical, Mabining Mandirigma, Coriolano, Pangarap sa Isang Gabi ng Gitnang Tag-araw, Der Kaufmann, and Sandosenang Sapatos. To donate, visit https://ktx.abs-cbn.com/events/25444/pantawid-ng-tanghalan.

NCCA online

The National Commission for Culture and the Arts (NCCA) presents The National Artists series of Sagisag Kultura TV at the NCCA YouTube channel (https://tinyurl.com/NationalArtistSeries). Episodes include videos of National Artist for Literature Nick Joaquin, National Artist for Dance Leonor Orosa-Gocquinco, and National Artist for Music Lucrecia Kalisag.

NHCP Museums

LEARN about Philippine history by visiting various National Historical Commission of the Philippines museums across the country online. To do so, visit https://www.facebook.com/historymuseumsPH/photos/a.474072142988822/769005046828862/?type=3&theater.

The Royal Opera House online

AS part of its #OurHousetoYourHouse, the Royal Opera is streaming Cathy Marston’s The Cellist at its official Facebook page at (https://www.facebook.com/royaloperahouse/). The show stars Marcelino Sambé and Lauren Cuthbertson.

Foo Fighters at the Wembley Stadium

THE Foo Fighters’ concert film Live at the Wembley Stadium is now available online at the band’s YouTube channel (https://www.youtube.com/watch?v=jcwBsntqjmY&feature=emb_title). The show features guest performances by Jimmy Page, and John Paul Jones of Led Zeppelin.

Gateway Gallery’s interactive website

THE Gateway Gallery has launched its own website https://gatewaygallery.aranetacity.com/ featuring online exhibits including SiningSaysay: Philippine History in Art which retells the story of the Philippines from prehistory to contemporary period in 30 monumental paintings. The gallery’s Art Heals: Echoes of the Pandemic exhibition is also on view.

Tanghalang Ateneo’s Lysistrata ng Bakwit

TANGHALANG Ateneo’s Lysistrata ng Bakwit (2018), an adaptation of Aristophanes’ Greek classic, is available for viewing online at https://www.youtube.com/watch?v=S8HhUJTXE2A&feature=emb_title. Directed by Ricardo Abad, the story is set in a fictional war-torn Philippine province and follows the revolt of women evacuees fighting their own wars over territory, familial ties, and tribal disputes.

National Museum of the Philippines

THE National Museum of the Philippines releases a new illustration by Larie Dianco featuring the dugong or “sea cow.” Download the coloring sheet at https://www.facebook.com/nationalmuseumofthephilippines/photos/a.195151237175869/3239298052761157/?type=3&theater.

Jerrold Tarog’s Senior Year

WRITTEN, directed, edited and scored by Jerrold Tarog, the film Senior Year (2010) is now streaming on Vimeo (https://vimeo.com/404089376). Set in a Catholic school the story follows the struggles and anxieties of students during their final year in high school.

Dulaan UP’s Adarna

DULAANG UP’s play Adarna (2013) is now streaming online. Adapted by Vlad Gonzales and directed by José Estrella, the story is based on the narrative poem about three princes’ quest to save their ailing father by capturing the Adarna bird which is believed to have curative powers. To watch, visit https://www.youtube.com/watch?time_continue=1&v=hV2UPXi1wMA&feature=emb_title.

National Library of the Philippines

THE National Library of the Philippines offers free scholarly eResources including research related to COVID-19. The list of resources come from the National Emergency Library, Cochrane Library (Medical & Health Science), De Gruyter — Journals (Multidisciplinary), and more. To view access links to eResources, visit https://www.facebook.com/NLP1901/photos/a.375779479606724/912930019224998/?type=3&theater.

Jenkins at Royal Albert Hall

WELSH mezzo-soprano Katherine Jenkins performed alone at The Royal Albert Hall. The online show is the first in a series of performances of the London Together initiative as a tribute to the COVID-19 frontliners. Watch the concert at The Royal Albert Hall’s YouTube channel at https://www.youtube.com/channel/UCugNt9gmBgZSFEv4lc4B6Zg.

Guggenheim artbooks

THE Solomon R. Guggenheim Museum offers downloadable items from its archives for free. Titles include modern and contemporary art books about Vincent Van Gogh, Pablo Picasso, Vassily Kandinsky, Gustav Klimt and more. The archive is searchable by artist, year, medium and artistic style or movement. Visit the archives, https://archive.org/details/guggenheimmuseum.

BioBalance Wellness consultation

THE BioBalance Wellness Institute offers the following services and features: free online consultation with its clinical nutritionist and nurse practitioners, wellness expert psychologist; online health and immunity risk assessment; and more payment options for availed services and products. For more information, contact 0917-521-4860 or concierge@biobalanceinstitute.com.

IkotMNL tour from home

THE Museo de Intramuros, Ayala Museum, and Presidential Museum and Library in Malacañang Palace have partnered with Google to put their works online. Learn new things at home and visit the museums through a virtual tour: https://artsandculture.google.com/partner/malacanang-presidential-museum-and-library; https://artsandculture.google.com/partner/ayala-museum; and https://artsandculture.google.com/partner/intramuros-administration.

CAST recordings on Spotify

CAST PH offers CAST Recording, a collection of one act plays, recorded online and released as radio/audio drama. The first recordings are A Matter of Husbands by Ferenc Molnár, featuring Pinky Amador and Giannina Ocampo-Van Hoven; and Enemies by Neith Boyce and Hutchins Hapgood, featuring David Bianco and Jennifer Blair-Bianco. Listen at https://open.spotify.com/show/5bLSOsJPkZnlaEFDfSSHbl?si=fDsW-kNpT6iP89En-dWbog.

Film masterclasses

LEARN film concepts through interviews and film retrospectives from more than 60 directors, producers, writers, and actors including Bong Joon-Ho, Abbas Kiarostami, Agnès Varda, Spike Lee, Werner Herzog (with Roger Ebert), Jane Campion, Jodie Foster, Todd Haynes, Ang Lee, Jessica Lange, and Clint Eastwood. To watch, visit https://walkerart.org/magazine/series/dialogues-film-retrospectives.

Radiohead Concerts

BRITISH rock band Radiohead has been uploading some of its concerts via its official YouTube page (https://www.youtube.com/user/radiohead). Fans of the Rock and Roll Hall of Fame band, known for songs like “Creep” (1992) and “Fake Plastic Trees” (1995), can watch the concerts Live from a Tent in Dublin (2000) and Live in Berlin (2006).

David Guetta: United at Home

FRENCH DJ David Guetta, the man behind the song “Titanium” (2011) featuring singer SIA, held a live concert fundraiser inside his Miami home benefiting the World Health Organization and other charities. The two-hour concert is currently available on his YouTube page (https://www.youtube.com/user/davidguettavevo).

Dior’s Designer of Dreams exhibition

DIOR’S exhibition titled Christian Dior: Designer of Dreams is now available to view online. Originally held at Paris’ Musée des Arts Décoratifs from 2017 to 2018, the exhibition traces the evolution of the house of Dior from post-war Paris to the present through a behind-the-scenes in-the-making of the exhibition, plus a virtual tour of its rooms. Visit Dior’s YouTube channel to watch the documentary (https://www.youtube.com/watch?time_continue=1521&v=FLWDWzMrkBE&feature=emb_title).

Frank Lloyd Wright virtual tours

THE Frank Lloyd Wright Building Conservancy, in partnership with the Frank Lloyd Wright Foundation and Unity Temple Restoration Foundation is offering #WrightVirtualVisits every Thursdays (1 p.m. Eastern/10 a.m. Pacific time) in participating sites. Check the participating sites at https://savewright.org/news/public-wright-sites-swap-virtual-visits/.

Color Tolkien characters

THE official Facebook page of the late author J.R.R. Tolkien has uploaded an illustration of Smaug the Magnificent from The Hobbit Movie Trilogy Colouring Book. Download the coloring sheet at https://bit.ly/2wKY3lp.

MoMA free courses online

AFTER offering virtual tours, the Museum of Modern Art (MoMA) is now offering free online courses. The courses include a series of five free classes for contemporary art, fashion, and photography. It includes readings and exercises which can be completed within 12 to 38 hours. For details, visit https://www.coursera.org/moma.

Print & Play activities for kids

KEEP kids entertained with new curated Print & Play activities from HP. The activities from craft making, mazes, dot-to-dot drawing and puzzles are suitable for ages two to 12. With HP Print & Play, parents can choose from a range of activities that are best suited to their children’s needs to achieve the best possible learning outcomes. To try the activities, visit https://www8.hp.com/ph/en/printers/printandplay/index.html?jumpid=va_u19mhncewr.

Harry Potter exhibit online

THE British Library’s Harry Potter: A History of Magic exhibition is available online through Google Arts and Culture. Its features include video clips and sketches, a Q&A with exhibit curator Julian Harrison. To view, visit https://artsandculture.google.com/project/harry-potter-a-history-of-magic.

The Nanny’s Pandemic Table Read

THE cast of the ‘90s comedy sitcom The Nanny reunites for The Pandemic Table Read of the show’s pilot episode. It stars Fran Drescher as Fran Fine who finds a job as a nanny to the three children of wealthy widower and theater producer Maxwell Sheffield (played by Charles Shaughnessy). To watch, visit Sony Pictures Entertainment’s YouTube channel at https://www.youtube.com/watch?v=C3a6KuP1X14&feature=youtu.be&fbclid=IwAR1eEwvK0A7lrLMnt2GTXBPoDR7y8_Q5TXMexTLIo9es9Gei4W1Yi-asITM.

Science experiments at home

ENJOY 44 science experiments with the kids at home with the James Dyson Foundation Challenge cards. To download the challenge cards, visit https://www.jamesdysonfoundation.co.uk/resources/challenge-cards.html.

Hogwarts online

HOGWARTS Is Here, an online version of the Harry Potter series’ magical school by Harry Potter fans that allows visitors to take courses like the characters from J.K. Rowling’s book series. Various courses include Astronomy, Herbology, History of Magic, and Transfiguration. The website also includes a forum, groups, and library feature. Visit http://www.hogwartsishere.com/.

Color Manolo Blahnik designs

MANOLO Blahnik shares a selection of his original sketches for coloring. The shoe designs are downloadable at https://www.manoloblahnik.com/gb/smile.html.

Podcasts on Philippine crime

STORIES After Dark features podcasts on Philippine true crime and mystery stories. It currently has 14 episodes including The Maguindanao Massacre (2009), The Ozone Disco Fire (1996), and Pepsi Paloma: Rape or Publicity Stunt? Suicide or Murder? (1982/1985). To listen, visit https://www.facebook.com/storiesafterdarkph/.

Palacio de Memoria virtual tour

ART and history enthusiasts can now go on a virtual tour of Palacio de Memoria, the resplendent Colonial Revival mansion, and marvel at its luxurious facilities and hundreds of Euro-Filipino paintings, sculptures, art displays, and historical pieces online. It features the showroom of Palacio de Memoria’s auction house, Casa de Memoria or the Casa, which houses the Lhuilliers’ unrivalled collection of antiques, the Mosphil Lounge, and a passenger plane that was refitted to be a lounge for special occasions. To view the complete Palacio de Memoria’s virtual tour, visit https://www.palaciodememoria.com/tours. For more updates, follow @thepalaciodememoria on Facebook and @palacio.de.memoria on Instagram.

E-coloring books

THE Getty Museum and the Getty Research Institute of Los Angeles offers the Color Our Collections edition for 2020. To view, visit http://library.nyam.org/colorourcollections/page/11/.

OUTLIER: Investors snatch up Puregold after earnings, MSCI inclusion

By Marissa Mae M. Ramos, Researcher

INVESTORS took positions on Puregold Price Club, Inc. last week with analysts attributing it to its earnings result and its addition to a global equity index.

The grocery operator was the top actively traded stock last week with a total of P4.41 billion worth of 95.81 million shares exchanged, data from the Philippine Stock Exchange showed.

Shares in the Lucio L. Co-led company closed at P46 apiece on Friday, down 0.3% from its May 22 closing price of P46.15 apiece. Year to date, its price per share gained 14.9%.

“[The Puregold] stock was actively traded during the week following the release of full-year 2019 earnings as well as the anticipation for its first quarter 2020 results,” Unicapital Securities, Inc. Research Head Justin Lawrence J. Tembrevilla said in an e-mail.

He said its first-quarter results were expected as a “positive surprise” compared with other listed companies as most Puregold stores and S&R warehouses remained open during the Luzon-wide lockdown.

For Diversified Securities, Inc. Equity Trader Aniceto K. Pangan: “it is mainly a non-discretionary consumer stock that has been upgraded by MSCI to its list of big stocks replacing Security Bank Corp. this month of May.”

Anna Corenne M. Agravio, equity analyst at Regina Capital Development Corp., also described Puregold’s inclusion to the MSCI index as the biggest driver for investors.

“With news of [Puregold] being added to the index, investors likely bought it up in anticipation,” Ms. Agravio said in an email.

“In addition to this, [Puregold] is under less COVID-19 (coronavirus disease 2019) pressures than most listed stocks, since panic-buying led to a strong surge in sales a few days before the ECQ (enhanced community quarantine) was declared as evidenced in its recently released earnings,” she added.

The adjustments on the MSCI Global Standard index released on May 13 saw Puregold replacing Security Bank effective at the close of market on Friday.

On the same day, the company disclosed to the bourse that its consolidated net income grew 16.8% to P1.76 billion in this year’s first three months compared with last year’s P1.51 billion. Its net sales also expanded by 17.4% to P40.95 billion in the same period.

The retailer attributed the income growth to stronger than expected sales of its existing Puregold stores and S&R Membership warehouse clubs due to “higher consumer spending and pantry loading prior to the [lockdown] as well as the low inflation environment in 2020.”

The Puregold group ended the past quarter with 443 stores nationwide. These include 384 Puregold stores, 20 S&R membership shopping warehouses, and 39 S&R New York Style quick-service restaurants which were higher by four Puregold stores, two S&R shopping warehouses, and one quick-service restaurant compared with year-end figures.

On Wednesday, it reported its consolidated core net income increased year on year by 16% to P6.75 billion in 2019 while net sales inched up by 9.5% to P154.49 billion.

“Near-term, bottom line may be challenged despite healthy sales due to any and all unexpected costs brought about by the pandemic; but long-term, the potential for upside is still high,” Regina Capital’s Ms. Agravio said.

Unicapital Securities’ Mr. Tembrevilla shared this view as spillover effects from the health crisis will likely take its toll on consumer spending in the coming months.

“[Puregold] can achieve a high single-digit to low double-digit sales growth through store expansion, but not without challenges,” he said.

“Disposable income could take a hit due to the higher incidence of unemployment as the economy was on a standstill during ECQ. The dip in remittances as a result of job displacement of overseas Filipinos could also dampen consumer spending going forward,” he added.

For this week, Ms. Agravio sees Puregold’s resistance “solid” at P50, while support is positioned anywhere between P43 and P45.

How PSEi member stocks performed — May 29, 2020

Here’s a quick glance at how PSEi stocks fared on Friday, May 29, 2020.

Buffets banned when restaurants resume dine-in service

THE Department of Trade and Industry (DTI) said restaurants resuming dine-in service may not offer buffets and must put up table partitions and mark floors to ensure proper social distancing.

In its guidelines for restaurant operators, the DTI said limited dine-in operations will only be allowed for areas that have shifted to a modified general community quarantine (GCQ). No areas have been declared to be under modified GCQ, the most liberal of the lockdown categories.

The guidelines, released Sunday, also prescribe a “no mask, no entry” policy for restaurants, as well as floor mats or disinfectant foot baths at the entrance, unless the restaurant is inside a mall that already provides these. The entrance must have rubbing alcohol and health checklists. A roving officer will ensure a distance of one meter between each person in line, and those with temperatures over 37.5 degrees celsius and other COVID-19 (coronavirus disease 2019) symptoms should not be allowed to enter the premises.

Dining tables and chairs must be sanitized after each use and maintain a distance of at least one meter on each side. Face-to-face seating will only be allowed with dividers. Furniture with porous materials should be covered in plastic.

The DTI is asking the establishments to keep dining areas well-ventilated, provide accessible sanitation equipment, and contactless transactions. The DTI added that order and bar counters should be disinfected every half hour.

Buffets are a key restaurant strategy for minimizing food waste, because diners must eat what’s on offer and restaurants need not guess which items on the menu to keep in stock. Buffets are a big draw for hotels, and some restaurants base their entire business models on all-you-can-eat, betting on a higher average bill per customer while at the same time minimizing service and inventory costs.

Depending on the type of restaurant, orders may be placed at a counter which will provide for hand sanitation after payment. They may also be escorted to an assigned table where they will select from a menu already on the table. In the latter case, the server must sanitize his or her hands after placing an order or taking payment.

Kitchen workers must wear masks, sanitize equipment and wash hands regularly. Staff not involved in food preparation may not enter the kitchen.

The guidelines also ban self-service offerings and play areas, but require a designated take-away area for picking up orders, contactless drive-through counters, and separate hand washing sinks for customers. Restaurants must also provide small trays for accepting cash.

For delivery and pick-up service, DTI asked restaurants to assign drop off sites outside their buildings and to include vehicles and drivers in its hygiene protocols.

DTI is asking restaurants to await further announcements on when dine-in operations will be permitted. The guidelines supplement the DTI-Department of Labor and Employment (DoLE) Interim Guidelines on Workplace Prevention and Control of COVID-19, released on April 30. — Jenina P. Ibañez

PHL’s COVID-19 fiscal package among region’s smallest — Nomura

THE Philippines is offering one of the smallest fiscal packages in Asia in response to the economic impact of the pandemic, Nomura Global Research said in a note Friday.

“Aggregating all measures, the most support has been announced in Singapore, Malaysia, Australia and Korea, and the least in Indonesia, China and the Philippines,” Nomura Global said.

It added that the Philippine pandemic measures amount to about 5% of gross domestic product (GDP), against Singapore’s 19.2% and Malaysia’s 17.7%. Bringing up the rear were Indonesia (4.2%) and China (4.9%).

A database maintained by the Asian Development Bank (ADB) estimates the Philippine fiscal response at $19.823 billion as of May 18 or about 4.53% of the economy.

The Philippines has so far implemented a P200-billion social amelioration program for some 18 million low-income families, a P51 billion in wage subsidy for employees of small businesses, a recovery program of about P130 billion to P160 billion over three phases to provide support for businesses.

After the crisis in 2020, the Philippine fiscal deficit is expected to rise to about 8% of GDP, against 3.55% in 2019, according to Nomura Global.

“A significant fiscal deviation and a sluggish recovery suggest that it will take longer for economies to revert to their initial fiscal positions,” it said.

Nomura Global also said that fiscal measures are unlikely to boost growth as economic activity remains severely disrupted. However, such measures are needed to ward off permanent economic damage caused by the outbreak.

Nomura Global said it expects central banks to be more proactive through aggressive secondary-market bond purchases, relief measures, and liquidity support. However, catch-up fiscal action is still needed, it said.

“We do not mean to downplay the role of monetary policy… Monetary accommodation may be necessary, but it is unlikely (to be) sufficient on its own,” it said. — Luz Wendy T. Noble

DTI offers up to P15,000 in seed capital for Balik Probinsya

THE trade department said it will offer livelihood kits with seed capital of between P5,000 and P15,000 for participants in the Balik Probinsya program, to help them start businesses after leaving the cities.

Trade Undersecretary Abdulgani M. Macatoman said in an online news conference Thursday that the businesses to be funded include small neighborhood stores.

He added that there is no limit to the number of people enrolled in the program that may be given starter kits.

The government is counting on 1 million Metro Manila residents to move to the provinces over the next six months under the “Balik Probinsya, Bagong Pag-Asa” program, which is designed to decongest the capital.

“’Yung livelihood seeding program na nagkakahalaga na P203 million na ready po na maipamigay natin… at madadagdagan pa po ‘yan dahil of course may stimulus package po na pwedeng idagdag. Lahat po ng mag-eenroll natin dito ay sinisigurado na mabibigyan natin ng ayuda dito sa mga starter kit, (We have P203 million ready to hand out for livelihood seeding, and expect more funds when the stimulus packages are approved. Everyone who enrolls is certain to receive aid via the starter kits,” Mr. Macatoman said.

The P203 million was sourced from the DTI’s Pangkabuhayan sa Pagbangon at Ginhawa, an assistance program for disaster victims.

“Sa ngayon ‘yung specific na amount, na fund for this Balik Probinsya program ay hindi natin po masasagot ‘yan. Ang pwedeng sumagot diyan ay ang ating Department of Budget and Management (DBM). The agency that can answer that question is the DBM).”

Executive Order 114 authorizing the Balik Probinsya program calls on the DBM to identify funding sources, while agencies may realign their appropriations for the program.

Over 30,000 Metro Manila residents have signed up for the program. The first batch of over a hundred people returned to Leyte on May 20.

Mr. Macatoman said the trade department will wait for the go signal from local governments on their health protocols before assistance is offered to beneficiaries. — Jenina P. Ibañez

Demand from retail electricity users declines during lockdown

POWER consumption of retail customers at the Wholesale Electricity Spot Market (WESM) fell drastically as their businesses were shut during the quarantine period.

The Independent Electricity Market Operator of the Philippines (IEMOP) noted that spot-market customers bought a total of 5,540 gigawatt-hours (GWh) of electricity at P1.50 per kilowatt-hour (kWh), in the April billing period, compared to 6,111 GWh in March, priced at P2.47/kWh.

“Both Luzon and Visayas customers, most of them were not operational during the ECQ (enhanced community quarantine),” IEMOP Chief Operating Officer Robinson P. Descanzo told reporters in a briefing last week.

The market operator said the highest daily metered quantity of electricity bought by retail customers at WESM Luzon at 27,190 megawatt-hours (MWh) in April was 44% lower compared to March.

The spot market in the Visayas saw a 66% drop in the minimum daily metered quantity bought by retail customers in April at 1,116 MWh.

Retail customers, who are mostly from the manufacturing sector, are those sourcing at least 1 megawatt of electricity from suppliers.

IEMOP also saw the maximum daily metered quantities in MWh bought by wholesale customers in April to have reduced in both the Luzon and Visayas markets, down 14% and 10%, respectively.

Both retail and wholesale market customers buy most of their electricity from suppliers via bilateral contracts, while around 10% are from spot volumes.

As of December 2019, 1,408 contestable customers, or those holding an Energy Regulatory Commission certificate of contestability, are registered with WESM. Most of them or 735 registrants are involved in commercial businesses, while the rest are from the industrial sector.

There were 70 retail electricity suppliers registered with the market in 2019.

“Compared sa 2019, ang summer months natin mababa ang mga presyo because mababa ang demand (Compared to 2019, prices during the dry season this year dropped due to lower demand.)” Mr. Descanzo said.

Usually, prices rise at WESM during the dry months of March to May as businesses consume more power but supply is tight because power generators are usually running at capacity, except for hydropower plants, which contribute less electricity.

During the lockdown period from mid-March to May 15, power plants in the country generated 8,671 MWh on average, lower compared to an average of 10,394 MWh recorded before the quarantine phase. The decline in output was due to the lower system requirement.

“Overall, during the ECQ period, bumaba iyong demand natin (demand fell) by almost 15% compared to the pre-ECQ levels,” he said.

The strictest form of lockdown was lifted in some areas by mid-May. Starting June 1, most parts of the country will be under modified general community quarantine, the most permissive of the quarantines thus far. — Adam J. Ang

Transforming IA during the pandemic

The COVID-19 pandemic caught the world off guard, adversely affecting peoples’ lives and businesses on an unprecedented scale. According to the EY Global Risk Survey in 2020, four out of five of companies’ board members and CEOs across the globe said their businesses were not well-prepared to face the pandemic crisis head on.

Companies have been employing various, often reactive actions, and even alternative methods to address the growing concerns impacting their businesses. These add pressure as they try to keep their business operations afloat. Furthermore, it has dramatically changed the risk landscape and given rise to new risk hot zones:

Health, safety and mobility: The community transmission of the virus poses a huge health risk. This immensely affected the life and ways of working for customers, business owners and employees as their mobility becomes limited.

Macroeconomics: The health crisis crippled the global economy. Supply chains across countries remain stressed, disrupting both demand and supply.

Cybersecurity: The lockdown has forced people to work remotely and connect virtually. The spike in use of technology and cyberspace opens cracks for cybercriminals to hack, phish and even infect vulnerable IT networks and infrastructure.

Compliance and stakeholder perception: The pandemic has caused governments to implement urgent measures and programs to fight the novel coronavirus, disrupting various industries. This event has further challenged companies to fulfill their obligation to issue fair disclosures to their stakeholders and maintain their societal brand and reputation.

These disruptions open opportunities for the company’s Internal Audit (IA) function to play a pivotal role as companies are challenged to successfully steer a course towards survival and growth amidst the pandemic.

IA can build trust by exhibiting reliability and continuing to be engaged as co-stewards of the company. It presents a real opportunity to collaborate with other business functions and enable company continuity. This can be achieved by being at the forefront of this pandemic through rapid assessments to identify focus risk areas; being agile in engaging and responding to stakeholder needs; and the continuous monitoring of the pandemic risks and impact on the company.

ACTIVATING IA AS A TRUSTED BUSINESS ADVISOR
IA is in a unique position as its experience allows it to assist in evaluating and managing internal and external business risks in the changing risk landscape. It can provide strategic business continuity advice, acting as consultants and crisis managers. It can start assessing business readiness on the new risk hot zones and potentially identify other risk areas.

Results of the assessment can be used to further understand the current impact of the disruption, foresee upcoming impacts that the disruptions may bring about, and plan how to appropriately respond to ensure public safety, business continuity and social responsibility.

LEVERAGING COLLABORATION TO DRIVE CHANGE
IA is a key contributor in defining the necessary actions that key stakeholders should consider in addressing new threats as a result of the “new normal.” Constant communication is critical to keep key stakeholders aware of and aligned with plans despite the continuing uncertainty.

IA can have more frequent, real-time discussions with the Audit Committee and Management to provide real-time advice on escalating risk focus areas, including critical action plans that they can consider taking.

As governments apply strict social distancing guidelines and curtail travel, IA can assist businesses and provide advice on adjusting to a remote work environment, such as how usual controls can be executed or mitigating possible changes in roles.

It is also a good opportunity to proactively engage and collaborate with external auditors to discuss the impact of the situation, especially for some procedures that may need to be performed differently due to limited face-to-face interaction.

ADVANCING TECHNOLOGY TO ANTICIPATE EMERGING RISKS
IA can implement a process supported by data analytics and technology to continuously monitor emerging risks. This will open avenues for key stakeholders to collaborate within various business functions. It will also be able to determine areas in their critical processes to stress-test and proactively identify resiliency plans and crisis protocols that can support sustainability of business functions.

STEP CHANGE: NOW, NEXT AND BEYOND
As companies slowly regain momentum to address the impact of the pandemic and prepare for their new normal, there is increasing pressure to reprioritize company resources and drive spending where it matters most.

NOW
IA as a function is called on to adapt to disruption by being more innovative and dynamic in its approach. There is a need to reassess audit priorities and expand the IA lens to clearly evaluate the impact of the pandemic on the organization’s financial, IT and operations risks.

IA can invigorate decision-making as IA resources can be repurposed to directly support the business by providing real-time advice on crisis management, business continuity, cybersecurity issues, employee well-being, brand protection and working capital management.

It is also a good opportunity for IA to proactively revisit control design changes and discuss internal control focus areas. In particular, key controls on processes such as inventory count or financial close may need to be performed remotely because of social distancing requirements, or in the event that the individual executing the control is ill for an extended period.

NEXT
Audit scope may shift focus to escalating risks such as data privacy and information security, liquidity and working capital, employee health and well-being, business resiliency and regulatory changes. As IA reprioritizes the audit plan, it needs to assess whether IA resources have the right skills, methodology and technology to enable them to execute its work.

IA work can be continued, but with considerations on cost and the least disruption to the business. With the possibility of an extended economic downturn, more IA departments may face budget cuts. Hence, IA will need to find innovative solutions to enable them to do more with less. It may also consider performing analytics-based procedures which can be performed remotely, or leverage on third party IA service providers as subject matter experts for audits where IA either does not have expertise yet or are in locations currently restricted in lieu of on-site audit procedures.

BEYOND
Chief Audit Executives (CAEs) should continue to innovate their ways of working and interaction with key stakeholders. Short sprints and focused, real-time reports may replace traditional detailed reporting. Internal auditor requirements may also need revisiting as the need for data analysis and automation skills increases while on-site procedures decrease due to social distancing protocols. A flexible workforce structure can also be considered, such as the use of third-party resources, developing an offshore workforce and enabling business rotations to give access to the right subject matter skills at the right place and time.

CAEs must examine their efforts to transform their organization through a new lens with renewed motivation and optimism. IA should continue to act in an advisory capacity to the business to address escalating and emerging risks upfront. As companies face difficult budget decisions, having an IA function that is viewed as a trusted business advisor is key in withstanding tightening budgets and workforce reductions.

While there is no one-size-fits-all solution, CAEs as leaders can be catalysts for change in defining the new normal. The question is, in a world of uncertainty, will they just watch the events unfold or will they have the resilience to reimagine and reinvent the future?

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Partner Christiane Joymiel Say-Mendoza, Manager Pia Isabella Pagdanganan, and Manager Meleusipo C. Fonollera are from the Advisory Service Line of SGV & Co.

81,000 Filipino workers abroad get state help

THE government has helped more than 81,000 overseas Filipinos affected by the global coronavirus pandemic, according to the Department of Labor and Employment (DoLE).

“The Labor department has provided cash, food and medical assistance to 81,388 overseas Filipino workers (OFW),” it said in a statement on Sunday.

Food and medicines were given to 3,637 OFWs from Asia and the Pacific, 66,271 from the Middle East and Africa and 9,403 from Europe and the Americas, it said, citing data from the Philippine Overseas Labor Offices.

In a separate statement on Sunday, the agency said the number of stranded OFWs have reached 98,615, citing reports from more than 40 Philippine labor offices abroad.

These workers were either affected by lockdowns, distressed and wanted to come home or could not return home because of travel restrictions.

“Of the total stranded OFWs, 83,483 are in the Middle East while 12,050 of them are in Europe and the American region and 3,082 in nearby Asian countries,” the Labor department said.

Its initial estimate of 300,000 OFWs affected by the global pandemic has increased to 320,000. — Gillian M. Cortez

Public urged to report clandestine COVID-19 clinics

THE Department of Health (DoH) on Sunday urged the public to report unlicensed clinics that treat foreigners infected with the novel coronavirus.

In a statement, the agency said treatment should only be sought from licensed health facilities and physicians who give medicines approved by the Food and Drug Administration.

“Doing otherwise might result in harm,” DoH said. “While we have not received any reports about clandestine hospitals for Filipino patients, we encourage everyone to report these unlicensed facilities because they endanger our health,” it added.

The Health department said it was coordinating with the authorities about the clandestine facilities, while contact tracing continues.

Police raided an underground medical facility in Pampanga and Makati last month catering mostly to Chinese nationals.

The Bureau of Immigration placed two Chinese nationals on the alert list for operating the underground hospital at the villa in Fontana Leisure Park in Clark Freeport.

They will not be allowed to leave and will be referred to the bureau’s intelligence and legal divisions if encountered in the airport. They were arrested in the raid but were released without being charged.

Justice Secretary Menardo I. Guevarra has said he would order the National Bureau of Investigation and Immigration bureau to find illegal clinics in the country. — Vann Marlo M. Villegas

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