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Philippine military chief says to deploy more navy to protect fishermen

MANILA – The Philippines will beef up its naval presence in the South China Sea to protect its fishermen, its new military chief said on Tuesday, as concerns grow about the operations of China’s coastguard in disputed waters.

The move comes after the Philippines protested a new law in China that allows its coastguard to board or open fire on foreign vessels in waters it regards as its territory, which officials said could heighten risks of a miscalculation.

“We will increase our visibility through the deployment of more naval assets, but I just want to make clear our navy presence there is not (to) wage war against China but to secure our own people,” Lieutenant General Cirilito Sobejana said in a media briefing.

China claims about 90% of the South China Sea as its own and deploys its coastguard throughout the strategically important waterway. Those are often accompanied by large numbers of fishing boats seen widely as a Chinese maritime militia, which other claimants accuse of harassing their fishermen.

“That pronouncement by China that their coastguard can open fire at people intruding into their territory is very alarming,” Sobejana said.

“It’s a very irresponsible statement because our people are not going to the disputed area to go to war but to earn a living.”

China’s embassy in Manila did not immediately respond to a request for comment on the general’s remarks.

The Philippines, however, has very limited naval capabilities compared with China’s fleet of navy and coastguard. U.S. Secretary of State Antony Blinken last month stressed the importance of a defence pact with Manila and its clear application if the Philippines came under attack.

The United States has held regular patrols in disputed areas of the South China Sea to underline its presence in the region, the latest on Tuesday, when two U.S. carrier groups conducted joint exercises. – Reuters

Banks’ soured loans decline in Dec.

SOURED LOANS held by big banks edged lower in December, reflecting the impact of a temporary grace period for borrowers affected by the coronavirus disease 2019 (COVID-19) pandemic.

Analysts, however, warned banks will see a steady rise in bad loans in the coming months as relief measures expire and borrowers continue to struggle with debt repayment amid the crisis.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the gross nonperforming loan (NPL) ratio eased to 3.61% from 3.78% as of end-November, but higher than the 2.08% logged in 2019. 

The NPL ratio was better than the 4.6% projection by the BSP for end-2020. The bad loan ratio peaked at 17.6% in 2002 in the aftermath of the Asian Financial Crisis.

Soured loans in December slipped by 2.34% to P391.657 billion from P401.054 billion in November, but a 74.8% surge from the P224.1-billion level in the previous year.

NPLs include credit left unpaid at least 30 days beyond the due date, which are considered as risky assets as these have high risk of default.

The decline in bad loans in December ended 10 consecutive months of growth. 

A one-time 60-day loan grace period was mandated under Republic Act No. 11494 or the Bayanihan to Recover as One Act. However, the law expired on Dec. 31, 2020, which means borrowers will have to resume repayments or incur penalties. 

“We are actually expecting NPL ratios to trend higher as the protection from Bayanihan [II] expires, which could result in more loans going bad, with consumers and firms alike facing challenges in making payments on time,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail. 

Tamma Febrian, Fitch Ratings associate director for banks – APAC, said the NPL ratio in December follows the historical trend of a seasonal dip in the bad loan ratio during the month, partly due to the yearend’s higher loan denominator and pickup in repayments and write-offs.

“Write-offs could be particularly pronounced this year in the credit card and micro-finance sectors, where growth has been rapid in recent years and where repayment capacity was under extra pressure in 2020,” Mr. Febrian said in an e-mail.

Despite easing from its end-November level, the bad loan pileup continued to outpace the growth of the industry-wide credit portfolio which inched up by 2.26% to P10.862 trillion from P10.621 trillion. Year on year, the total loan portfolio of banks slipped 0.9% from the P10.966 trillion as of end-December 2019. 

Meanwhile, BSP data showed past due loans dropped 4% to P482.115 billion as of end-December, from P502.355 billion in the previous month. However, this was still 62% higher than the P297.249 billion logged a year ago. This brought its ratio to 4.44% as of end-2020 from 2.71% in 2019. 

On the other hand, restructured loans continued to increase by 49.4% to P207.278 from P138.69 billion in November, and by 380% from the P43.156 billion a year ago. With this, the restructured loan ratio as of end-December stood at 1.91%, up from 0.39% as of end-2019. 

In response to weaker asset quality, banks increased their allowance for credit losses by 4.1% to P367.094 billion from November’s level and by 77% from a year ago. This pushed the ratio to 3.38% of the total loans against the 1.89% in the comparable year-ago period.

Industry-wide NPL coverage ratio, which gauges the allowance for potential losses due to bad loans, rose to 93.73% from 92.59% as of end-December 2019.

PRESSURE ON ASSET QUALITY

Despite relative improvement in banks’ asset quality in December, analysts said banks will continue to feel the pressure this year, as the country has yet to emerge from recession.

“We expect NPL ratios will continue to rise in the first half of 2021 as the prolonged curtailment of business activity continues to strain borrowers’ debt repayment capacity,” Joyce Ong, an analyst at the Financial Institutions Group of Moody’s Investors Service said in an e-mail.

Although the bad loan situation will not likely surpass the aftermath of the Asian Financial Crisis, analysts said the banking industry will still see the impact of the downturn in its loan book and profitability.

“Even if we do not expect a surge to the double-digit levels, we do expect bank lending to be impaired for some time given the sharp drop off in economic prospects,” Mr. Mapa said. This will, in turn, dent investments, he added. 

Bank lending fell by 0.7% year on year in December, the first decline in over 14 years following the already tepid 0.5% credit expansion in November.

In a separate note, S&P Global Ratings warned that further “stress in large companies could set off a sharper deterioration in banks’ asset quality,” given big businesses make up a big chunk of lenders’ credit portfolio.

“Growth prospects remain a challenge for Philippine banks amid low interest rates and a weak domestic operating environment,” Moody’s Ms. Ong said.

The Financial Institutions Strategic Transfer (FIST) Act is awaiting the signature of President Rodrigo R. Duterte. When enacted, the measure will allow banks to transfer nonperforming assets to asset management companies.

“The FIST’s special purpose vehicles may allow for faster resolution of legacy bad assets and position banks for a quick recovery than two decades ago,” Mr. Febrian said.

MB’s Medalla says rate hike ‘not on the table’

THE CENTRAL BANK is unlikely to raise key rates as the Philippine economy recovers from the crisis, a Monetary Board (MB) member said on Tuesday.  

“What I assure you is that we have a lot of space in the BSP for very accommodative policy. Right now, I think the only debate is whether we cut [or hold rates steady]. Raising [the policy rate] is not in the picture,” Monetary Board member Felipe M. Medalla said during a briefing organized by the Management Association of the Philippines.

Mr. Medalla, a former socioeconomic planning secretary, said they are considering the impact of their actions on financial stability, adding “monetary policy should be very supportive of the fiscal sector.”

A BusinessWorld poll showed 17 out of 18 analysts expect the Monetary Board to keep policy rates at record-low levels during its scheduled meeting on Thursday. 

“We probably can say we will remain in this negative real interest rate policy for at least a year or two. And even if it [real interest rate] rises, it will be below one [percent] by [20]23 and beyond,” Mr. Medalla said.

Inflation in January stood at 4.2%, surpassing the 2-4% annual target of the central bank. This puts the Philippines under a negative real interest rate environment with the key policy rate at 2% following a cumulative 200-basis point cut last year. 

“Even if inflation returns to normal, which we are quite sure will happen, normal is maybe 3%, we are already in a negative real interest rate territory,” Mr. Medalla said.

Earlier, BSP Governor Benjamin E. Diokno said the spike in inflation was caused by supply-side factors and “should not require a monetary policy response unless they lead to further second round effects.” 

“There is only so much that monetary authorities can do. Fiscal policy is extremely important… No matter what happens to [the] deficit,” Mr. Medalla said. 

He said it will be crucial for the government to spend on “good projects,” while the Philippines still enjoys a low debt-to-gross domestic product (GDP) ratio that allows it to secure lower borrowing rates. 

Debt-to-GDP ratio stood at a 14-year high of 54.5% as of end-2020, following the 39.6% in 2019. It is expected to increase to 57% this year.

Mr. Diokno has earlier assured they will keep interest rates low until the economy is back to its pre-pandemic growth trajectory and the labor market improves.

The country’s economy shrank by 9.5% last year, but the government expects GDP to grow by 6.5-7.5% this year.

‘K-SHAPED’ RECOVERY 

Recovery prospects across industry sectors to be uneven and warned the ongoing crisis will continue to escalate social inequality.

“We’ve all heard about the kind of recovery we might get — L, U, V, W, the Nike swoosh, but frankly what concerns many of us is the K-shaped recovery, which means it’s really going to be a differential effect,” Cielito F. Habito, chairman of Brain Trust: Knowledge & Options for Sustainable Development, Inc., said during the same forum.

Mr. Habito, also a former socioeconomic planning secretary, said some industries, including the tourism sector, will continue to need sustained assistance, while other sectors such as e-commerce have already “taken off even during the pandemic.” 

He said the pandemic exposed the social inequality where the “more well-to do are already beginning to see their lives resume gradually,” while the poor grapple with unemployment and worsening conditions. 

“This is the kind of divergence that we would like to avoid because we have been talking about inclusive growth and we are seeing more exclusion happen in the moment,” Mr. Habito said. 

Meanwhile, Johanna Chua, managing director and head of Asia Economic and Market Analysis at Citigroup, Inc. said there is a need to provide further support to the most vulnerable households given the economic prospects are still clouded by the virus uncertainty.

“It’s going to probably take a while for private investments to recover. So the question is what can the government do? Clearly infrastructure is still one where there are still gaps,” she said. — Luz Wendy T. Noble

Metro Manila residential stock forecast, end-2020 and 2023

A SLOW RECOVERY in property prices will likely begin in 2022, as capital values last year fell more sharply than the decline seen during the Global Financial Crisis, Colliers Philippines said. Read the full story.

Metro Manila residential stock forecast, end-2020 and 2023

Property prices to slowly recover in 2022

A SLOW RECOVERY in property prices will likely begin in 2022, as capital values last year fell more sharply than the decline seen during the Global Financial Crisis, Colliers Philippines said.

In a report released on Tuesday, Colliers Philippines said the pandemic dragged prices and rents in the secondary market lower by 13.2% and 7.8%, respectively in 2020. However, it noted this was still less steeper than the 14.5% and 15.4% drop in prices and rents, respectively, during the Asian Financial Crisis.

Metro Manila residential stock forecast, end-2020 and 2023

“Prices and rents corrected in 2020 due to dampened demand and we do not see a recovery in the next 12 months,” the company said.

Colliers said property prices and rents are expected to rise by 1.5% and 1.7% year on year in 2022, but this would depend on “a rebound in local and foreign investor sentiment and a recovery in office space absorption.” 

A precarious office leasing market in Metro Manila hobbled recovery in both the pre-sale and secondary residential markets, it said. 

“A lot of disruption and vacancies definitely have been rising across all major business districts in the capital region, and that of course has been having an adverse impact on the residential market, whether it’s pre-selling or secondary condominium market in Metro Manila,” Joey Roi H. Bondoc, senior research manager at Colliers Philippines, said at an online event.

“Prices and rent, of course these two indicators were severely affected in 2020, and we will probably see a slow recovery starting 2022 when the office segment finally recovers.”

Pre-terminations last year contributed to the rent decline in Metro Manila. Condominium leasing pre-terminations doubled in 2020 after overseas Filipino workers were repatriated and employees took on early retirement packages.

“We also observed owners offloading properties at near pre-sale prices and through loan assumptions,” Colliers said, observing re-sales at discounts in Quezon City, Mandaluyong, Muntinlupa, and Parañaque.

NEW SUPPLY

While take-up in pre-sale and secondary markets went down in the fourth quarter last year due to the pandemic, Colliers expects higher demand in 2021, which will be driven by mid-income to luxury projects.

“In 2021, we expect a rebound in completion with the delivery of 10,600 units, higher than our initial estimate of 7,910 units,” it said.

Colliers projected Metro Manila residential stock to rise 20.5% to 160,840 units by end-2023, from 133,460 units as of end-2020. 

“From 2021 to 2024, we expect the annual delivery of 8,600 units, an increase from 6,700 units we projected at the start of 2020,” Colliers said. 

Most of the new supply will be in the Bay Area, Fort Bonifacio, Rockwell Center, Alabang, Ortigas Center and Makati central business district. 

Supply decreased last year, with project completions falling 70% compared with 2019 as the industry experienced supply chain issues and limited manpower during the lockdown.

Meanwhile, Colliers said that vacancy in the secondary market will likely further rise to 16.9% this year, even after vacancy spiked to a record-high 15.6% in the fourth quarter of 2020. 

“This is due to the amount of new completions, as we expect the delivery of 10,600 units, a big uptick from only 3,370 delivered in 2020. We expect vacancy rates to recede starting in H2 2022, given our projected rebound in office leasing and take-up from investors and end users,” it said. 

In its recommendations, Colliers said developers should explore creative leasing models and consider fringe areas for their upcoming projects.

“Monitor attractive locations and price segments for pre-selling residential developments,” it said. — J.P.Ibañez

Infectious disease seen as a top business risk

BUSINESS LEADERS in the Philippines identified infectious disease as the top risk in the next few years, as this could continue to disrupt operations and impede global trade.

The World Economic Forum’s (WEF) World Risk Report 2021 said extreme weather and climate action failure are top global risks by likelihood, as it had since the 2019 report. 

But infectious diseases entered the top four for the first time this year after the coronavirus disease 2019 (COVID-19) pandemic brought severe economic costs.

“It threatens to scale back years of progress on reducing poverty and inequality and to further weaken social cohesion and global cooperation,” the report said.

“Job losses, a widening digital divide, disrupted social interactions, and abrupt shifts in markets could lead to dire consequences and lost opportunities for large parts of the global population.”

John Forbes, senior advisor at the American Chamber of Commerce of the Philippines, said in an e-mail that foreign investors in the Philippines face the risks of COVID-19’s potential resistance against herd immunity and vaccination.

Foreign investors believe that business activity will recover to pre-pandemic conditions by the end of 2021 and return to its pace as a top growing economy, Mr. Forbes said, but risks to economic recovery remain.

“Perhaps the biggest risk is that the Philippines will fail to implement adequately key lessons from the pandemic, such as improving the internet, strengthening public health and education, reducing restrictions on foreign investment, and over-reliance on exporting labor,” he said.

For now, the lack of vaccine availability is the top risk for the country, Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said in a mobile message.

He said the pandemic disrupts operations, impedes worker availability, keeps expatriates from traveling, and hampers the supply chain.

“It’s easier said than done, but it would help for the government to accelerate the vaccine acquisition and subsidize the cost, like most countries do. Prevention is difficult because the Philippines may not have adequate expertise and capacity,” he said.

“It’s important to work closely with developed countries and world organizations like the World Health Organization.”

Beyond the direct effects, infectious diseases like COVID-19 are set to hasten existing global economic trends.

Protectionism will be accelerated, according to Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr.

“The protectionism of countries is a big risk, along with COVID-19 fears and the protocols involved,” he said in mixed English Filipino in a phone interview.

Global business could become costlier and uncertain, WEF said in its report, as states implement protectionist policies to preserve domestic jobs.

“In some economies, companies operating in industries critical to national resilience may face proposals for expropriation, nationalization or an increased government stake; in other sectors, firms may be encouraged or coerced to onshore supply chains and bring back jobs.”

The younger generation will likely see more financial and education risks, WEF said, potentially creating disillusionment as they face fewer opportunities.

The pandemic also accelerated digitalization through the increased need for online education and e-commerce, a trend that could also exacerbate digital inequality. 

“A widening digital gap can worsen societal fractures and undermine prospects for an inclusive recovery,” the report said.

SEC warns against investing in Royal O

THE Securities and Exchange Commission (SEC) has warned investors to avoid putting their money in Royal O Financial Consultancy Services, which has solicited investments without the proper license.

In an advisory uploaded on its website, the SEC said Royal O Financial Consultancy Services entices members to avail of its co-ownership program that offers earnings of 15% weekly in 90 days or a 201% return on investment, and 60% monthly in six months or a 360% return on investment.

“Further, a member is entitled to a direct bonus equivalent to 6% based on his/her direct recruit’s investment, and a leveling bonus equivalent to 0.5% to 3% up to the 10th level,” the SEC said.

The corporate regulator said Royal O Financial Consultancy Services is an investment platform for entities such as Oro Magnet Cockpit Arena – E-Sabong; Plasmatech Medical Supplies Trading; and Genius Global Impact and Export Corp., and is headed by a certain Princess Joana Jo Alfajid-Campos.

“Royal O Financial Consultancy Services is purportedly a website portal for the co-ownership program, where the funds sourced from the public shall in turn be invested in various businesses that are being managed and operated by Ms. Campos,” the SEC said.

According to the SEC, one of the businesses of Ms. Campos is registered as a one-person corporation, namely the OroMagnet International E-Games OPC, but is not authorized to solicit investment from the public without a secondary license.

It added that Royal O Financial Consultancy Services is not registered as a corporation nor a partnership. However, the SEC said the firm has been issued a certificate of business name registration by the Department of Trade and Industry (DTI).

“Royal O Financial Consultancy Services is also not registered either as a crowdfunding intermediary or a funding portal,” the SEC said.

The SEC warned that people acting for Royal O Financial Consultancy Services such as salesmen, brokers, dealers or agents may be held criminally liable and may be penalized with a P5-million fine, a 21-year imprisonment, or both, under Republic Act No. 8799 or the Securities Regulation Code.

BusinessWorld has sought for the comment of Ms. Campos regarding the SEC advisory, but she has not replied as of press time. — Revin Mikhael D. Ochave

For Betsy Westendorp there is no such thing as ‘only a flower’

WE often expect artists to rebel, but a grande dame like 93-year-old Betsy Westendorp hardly seems to fit the image. Blessed with patrician good looks with the matching mien, that very same quiet dignity bleeds into her work, seen at “Passages,” her retrospective at the Metropolitan Museum of Manila. She’s famous for her portraits of Spanish royalty (she painted the present King of Spain, Felipe VI, as a boy; and his sisters, the Infantas, as well) and Philippine high society (famous last names are on the museum’s galleries). Her other specialty is painting exquisite flowers and peaceful landscapes, which are displayed in some of the city’s nexuses of power — hardly controversial.

Yet in an increasingly ugly world, the pursuit of beauty is an act of rebellion. “One art critic, when commenting about my painting, he said, ‘There are only flowers!’,” recounted Ms. Westendorp in a video during the opening of “Passages” on Jan. 29. “You know, a flower is one of the most beautiful pictures in the world — so why say it’s only a flower?” “My goodness — only a flower! That’s a wonder!”

The retrospective was the museum’s first remote exhibition opening, held via Zoom and streamed on Facebook. The exhibit, according to a speech by Met President Tina Colayco, had been planned as early as 2019, and had been slated to be opened in May 2020 — but the COVID-19 pandemic effectively shut down those plans. The exhibit was rescheduled to its present date — it runs until March 15 — in a new hybrid format as being presented at the museum but also through its website as a 360-degree experience. Furthermore, the retrospective will be presented as a printed and digital catalogue written by Cid Reyes, which will have its own forthcoming launch.

Upon visiting the exhibit’s page and 3D tour, one sees first the section dedicated to portraits. On the right hand side are portraits of the artist’s family: parents, her late husband, a self-portrait, and one of her daughter Isabel and her grandson Ian (both deceased).

The royals and society figures — like the one of the King of Spain as a boy, a princess; several members of the Zobel family, the Tantoco couple who founded Rustan’s, and a sprinkling of names famous especially in the 1970s — come after. They are painted almost the same way as her family. The section notes, taken from Mr. Reyes’ catalogue says, “Of the excessive personal ornamentation of attire and jewelry of the 19th century, she will have little use. In truth, she has a discrete distaste for it.” It then seems as if either her own family is just as important and worthy of note as the high and mighty; or else that the high and mighty are as intimate to her as family.

Born in Spain with a Dutch last name in the 1920s, Ms. Westendorp was named after a great-aunt Betsy Westendorp-Osiek, herself a painter. The gene expressed itself once again, with her picking up crayons and paints at an early age. While not studying art formally, she was allowed to be tutored in art at home and to attend studio classes of notable artists at the time. In 1951, she married Filipino-Spanish businessman Antonio Brias, who brought her to the Philippines. Her artistic efforts earned her the Lazo de Dama de la Orden de Isabela Catolica, as well as the Presidential Medal of Merit for Art and Culture.

Her other strengths — landscapes, flowers, and cloudscapes — are well-expressed in the exhibit too. There are over 100 works in total after all. The cloudscape called Passages, sharing the name of the exhibit, is present here too; a cathartic work made after the death of her daughter Isabel. It hangs now in the Instituto Cervantes de Manila. Another highlight is the artist’s recreated studio, with her table, easels, and paints. A video of her painting one of her large-scale works, Homage to Life, also plays in that section.

Is the 93-year-old Ms. Westendorp, who has been painting for over 60 years, a bit weary of this battle for beauty? Not one bit. She was asked by anchor Karen Davila (who hosted the webinar) how she is able to renew her creative spirit, and thus keep going. Her daughter Carmen, sitting beside her mother during the webinar, read a response: “I have been able to renew my creative spirit because I love painting. When you love something very much, there is really no effort. You can get tired, but the energy comes back with a little rest.”

View the exhibit at https://metmuseum.ph/passages-celebrating-the-artistic-journeys-of-betsy-westendorp/. — Joseph L. Garcia

Alsons targets nearly P2 billion from debt issuance

Alcantara-led Alsons Consolidated Resources, Inc. (ACR) expects to raise about P1.88 billion from the first tranche of its short-term commercial paper issuance, with a portion of the proceeds funding its 22-megawatt (MW) Sindangan hydro power project in Zamboanga del Norte.

The debt papers are part of the holding firm’s P3-billion commercial paper program, it said in its registration statement filed on Jan. 20 with the Securities and Exchange Commission (SEC), which shared the document to reporters on Tuesday.

“The Company’s net proceeds from the Offer is expected to be approximately P1,878,248,209.87 after deducting the applicable fees and expenses,” ACR said.

“Depending on the net proceeds raised from the Offer, the Company intends to use the proceeds from the Offer to settle its maturing short-term obligations in the first and second quarter of 2021 and to partially fund its hydro project development,” it added.

The company said that it owed P1.25 billion in short-term loans to various funding entities, including the Sterling Bank of Asia and RCBC Trust and Investments. The loans’ maturity dates are between Feb. and April this year.

In its registration statement, ACR also said that the first tranche would consist of “Series O” and “Series P” papers, which would have tenors of 182 days and 364 days, respectively, from their issue dates. The papers would be issued at a discount to face value.

ACR said that it intends to list the debt papers at the Philippine Dealing & Exchange Corp. (PDEx) for secondary trading.

The listed company has engaged Multinational Investment Bancorporation as the offer’s sole manager, arranges and lead underwriter.

“Any unsold portion would be sold at a future date, since the issuance is under a three-year shelf-registration,” ACR said.

The SEC on Tuesday clarified that it had received ACR’s registration statement on the debt papers, but said that these have not yet been declared effective.

“No offer to buy the securities can be accepted and no part of the purchase price can be accepted or received until the registration statement has become effective,” the SEC said. “This… shall not constitute an offer to sell or the solicitation of an offer to buy,” it added.

Last month, local debt watcher Philippine Rating Services Corp. (PhilRatings) gave ACR a PRS A+ issuer credit rating with a stable outlook for its planned commercial paper program this year.

According to PhilRatings, a PRS A+ credit rating is an assessment that shows the company’s above-average capacity to meet its financial commitments relative to other local firms. A “stable outlook” is given when a rating is likely to be maintained or remain unchanged in the next 12 months.

Earlier, ACR said that it had allotted around P6.54 billion in capital expenditures (capex) for four projects under development, including three hydro power plants.

Among these planned hydro projects are the 14.6-MW run-of-river Siguil hydro plant, which is under construction in the Sarangani province; the Siayan (Sindangan) hydro plant in Zamboanga del Norte; and the 42-MW Bago hydro plant in Negros Occidental.

The Mindanao power generator has an aggregate installed capacity of 468-MW.

On Tuesday, shares in ACR at the local bourse improved 2.24% or 0.03 centavos to close at P1.37 apiece. — Angelica Y. Yang 

PHL AirAsia seeking authorization to participate in vaccine distribution

Philippines AirAsia, Inc. on Tuesday said it is seeking authorization from the Civil Aviation Authority of the Philippines (CAAP) to participate in the distribution of coronavirus vaccines.

In an e-mailed statement, the low-cost airline said it had applied for regulatory approval as a carrier of dangerous goods.

The company said it had also embarked on technical training and engineering intervention “to support the vaccine cold chain.”

The airline said its personnel were trained on the preparation from ground to cargo handling of the vaccines and its cooling devices.

CAAP Chief of Staff Danjun G. Lucas told BusinessWorld by phone message that Philippine Airlines (PAL) and Cebu Pacific are already “certified as dangerous goods handlers.”

Carlito G. Galvez, Jr., the Philippines’ vaccine czar, has said the country is expected to take delivery of at least 5.6 million doses of coronavirus vaccines from Pfizer, Inc. and AstraZeneca Plc. this quarter.

In a separate statement, PAL said the National Task Force on Vaccine Rollout spearheaded on Tuesday a simulation exercise on vaccine handling.

“The simulation exercise covered the arrival in Manila of Philippine Airlines flight PR5655 from Riyadh at 10:10 a.m., the unloading of vaccines from the A330’s cargo compartment, the loading of the ‘shipment’ into cold storage vans and its transport to the Research Institute for Tropical Medicine warehouse facility,” the flag carrier said.

A simulation exercise on the transport of vaccines to hospitals would also be conducted, the company added.

PAL has said it is ready to participate in the vaccine rollout.

Also on Tuesday, AirAsia Group Berhad released its preliminary operating statistics for the fourth quarter of 2020.

In an e-mailed statement, the Malaysia-based airline group said the fourth quarter results showed “solid rebound.”

“AirAsia is navigating its recovery phase exceptionally well as key operational metrics improved in December in comparison to September, notably with a 31% increase in passengers carried by AirAsia Thailand, doubling of passengers carried by Philippines AirAsia, while AirAsia Indonesia multiplied its number of passengers carried by a whopping 11 times,” it said. 

Such improvements “signify a solid domestic rebound for air travel demand across the group’s key operating markets,” it added.

The group — composed of units in Malaysia, Thailand, the Philippines, and Indonesia — carried 23 million passengers in 2020.

It said its four units “recovered close to 60% of its pre-pandemic domestic capacity” last December.

The group’s Philippine unit carried 117,948 passengers in the fourth quarter. It had a load factor of 64%.

“On a month-to-month basis, Philippines AirAsia’s number of passengers carried doubled, while domestic operating capacity increased by 5 percentage points to 13% in December as compared with September,” it added. — Arjay L. Balinbin

Why some words hurt some people and not others

THE OCTOBER 2020 controversy at the University of Ottawa surrounding the use of the n-word reminded us that there are parts of our history — such as the transatlantic slave trade, the Holocaust, or the repression of First Nations — that must be approached with respect and empathy, even when they are talked about in an effort to better understand them.

Only those who have lived through these experiences can fully feel the pain and humiliation associated with certain words such as the n-word. It must be acknowledged that certain words always carry a heavy burden with them. Their mere evocation can bring back painful memories, buried deep in what is known as discursive memory.

As a specialist and researcher in linguistics and discourse analysis, I am interested in communication between individuals from different cultures because the misunderstandings it provokes are often based on unconscious reflexes and reference points, which makes them all the more pernicious.

Communication between humans would be very difficult, if not impossible, without discursive memory. Our memories allow us to understand each other or to experience irreconcilable differences.

“Every nasty word we utter joins sentences, then paragraphs, pages and manifestos and ends up killing the world,” entertainer Gregory Charles said in a tweet, quoting his father, after the attack at the Grand Mosque in Québec City in 2017. This idea, expressed here in a concrete way, is defined by specialists in discourse analysis by the concept of interdiscourse.

Thus, words are not just a collection of letters and are not isolated from their context. Moreover, each context in which a term is used generates a particular perception in the person receiving it. Hence the multiplication of references.

In the courses on language and reasoning that I give, where almost every subject is covered, I sometimes notice that some students feel embarrassed, irritated, or see their foreheads crease when they hear a word that otherwise leaves other students insensitive. This prompted me to look into the question.

In linguistics, words have a more unanimous form (signifier) and meaning (signified) but they refer to very personal (referent) realities.

The relationship between the signifier and the signified is actually arbitrary but it is stable. On the other hand, the referent is more unstable. Each listener perceives a term according to his or her experience of it. Let us take the word “love” as an example. For those who have always been happy in love, the word will have a positive connotation. But for those who have experienced disappointments in love, it will have a negative connotation.

To better understand, we can also think of a hockey game. When an individual who is not familiar with the mores of North American society watches a hockey game between the Montréal Canadiens and the Boston Bruins, he sees people dressed warmly who slide nimbly on the ice and compete for a puck using rods with curved ends. So much for the meaning. This superficial gaze can be likened to understanding a text whose cultural context and reference is unknown.

But the hockey-loving Québecer — who has already seen the Canadiens and the Bruins play, who knows the potential outcome of each game, the players’ statistics and the consequences of each gesture — lives in anticipation. An informed spectator watches the game but at the same time reviews all the games he has already seen. This “layered” view can be likened to speech.

In 2014, when businessman and former politician Pierre Karl Péladeau raised his fist and shouted that he wanted to “make Québec a country,” he caused an outcry. While an uninformed spectator might be surprised at the turmoil caused by this statement, others saw it as an echo of General Charles de Gaulle’s cry of “Vive le Québec libre,” shouted from the balcony of Montréal City Hall in 1967.

But these words and the gesture that accompanied them also reminded us of “Vive la France libre” (long live free France), a quotation pronounced by Mr. De Gaulle in 1940, awakening the patriotic flame of the French. This was the slogan for the liberation of France during the Second World War. The words uttered by Mr. Péladeau are the text, while the context — and the implications — of these words are the interdiscourse.

The use of the implicit, presupposition, or implied may have a legal or other advantage. Very often, in public communication, certain statements made against a political opponent, for example, may be the subject of defamation suits.

On the other hand, a simple allusion to an act that is no longer current makes it possible to make a point of view understood without asserting it. The person targeted is liable for having put together the pieces of the puzzle himself or herself and for having deduced from it an idea that his or her interlocutor has not formally expressed.

It is also possible to take advantage of the symbolic capital of certain events. Think of the famous J’accuse by Émile Zola, which is the title of an open letter published on Jan. 13, 1898, in a Parisian daily newspaper accusing the then French president of antisemitism. The expression was later used in political texts, plays, songs, posters, and art works. J’accuse is not just a headline over a text by Émile Zola, it carries a polemical charge that has shaken an entire republic!

Discursive memory therefore has its advantages. However, the fact that the audience does not always have the cultural or historical references to understand a speaker’s allusion can be problematic.

Not being aware of this discursive mechanism can cause many misunderstandings. Understanding it certainly helps to communicate better. But a speaker in bad faith may take advantage of it. In such a case, beyond the words and their scope, there remains the intention of the speaker. And this intention, as in the case of the use of the n-word, is very difficult to appreciate. Be that as it may, some words carry their burden, no matter how they are wrapped.

Putting yourself in your audience’s shoes is the key to good communication. Understanding first and accepting that each person may perceive a word differently can help establish a dialogue.

Dalla Malé Fofana is a Lecturer in Linguistics, Language Sciences and Communication, Bishop’s University.

ATN secures environmental compliance certificate for aggregates project in Rizal

ATN Holdings, Inc. has obtained an environmental compliance certificate (ECC) for its 82-hectare integrated aggregates project in Rodriguez, Rizal, the listed firm said in a disclosure on Tuesday.

The certificate, which was issued by a unit of the Department of Environment and Natural Resources (DENR), covers a yearly extraction rate of 7 million dry metric tons (DMT) of aggregates in the project area.

An ECC must be secured from the DENR’s Environmental Management Bureau for “environmentally critical” projects, according to the department’s citizens charter.

ATN’s project has an estimated 66.12 million metric tons of mineable aggregates. Its components include a crushing plant, batching plant, concrete hollow blocks plant, and pollution control facilities.

Through consultancy service provider Permata Resources, Inc., ATN said in the project’s description previously submitted to the DENR that it would be engaged in quarrying and crushing operations.

“With industrialization and continuous quest for development, the project is foreseen to aid in augmenting the higher demand for rock aggregates and cement raw materials by the construction industry for the infrastructure development and the government’s prioritized infrastructure projects,” Permata told the DENR bureau.

In a disclosure in November, ATN said that it was looking to earn P1 billion by 2022 from selling construction materials, adding that there would be a projected demand for building materials as the government pursues its “Build, Build, Build” program.

ATN Chairman and Chief Executive Officer Arsenio T. Ng was previously quoted as saying that the 2022 sales target would come from a combination of rock aggregates, pre-mixed concrete and boulders.

Shares in ATN at the local bourse rose 1.16% or 0.01 centavo to close at P0.87 apiece on Tuesday. — Angelica Y. Yang