Art pioneering technology

February 27, 2020 | 3:22 pm

When Vantablack, then the world’s darkest material, came out in 2017, it sparked chaos in the art community. Surrey NanoSystems, its creator, had granted sculptor Anish Kapoor exclusive rights for artistic use of this “blackest black”– and many artists cried foul at the seemingly selfish move.

Perhaps the most famous reaction came from fellow artist Stuart Semple, who — as a form of both protest and performance art — made his self-created “pinkest pink” pigment available to anyone, with the caveat that Anish Kapoor never get his hands on it.

On the other hand, Ben Jensen, founder and CTO of Surrey NanoSystems, felt that artists were justified in reserving such rights. “You go back to when [J.M.W.] Turner [English Romantic period painter] was creating his blacks and you go up to him and say, ‘Hey, you created an amazing black, I want it,’ You’d have been laughed out of the art scene,” he said.

Whether you’re a Renaissance painter shifting to oil paints to keep up with the era’s stylistic demands, or a contemporary artist-and-scientist team developing a material even darker than Vantablack for a new piece, artists have always pushed for and utilized innovative tools in their work.

And with Fourth Industrial Revolution (4IR) technologies making their way into the art community, exciting possibilities– as well as new ways of feeling and experiencing– are being unlocked.

Different expressions

To an artist, the choice of medium is as instrumental as the actual art itself. With fresh “canvases” like Internet of Things (IoT), artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) now at their fingertips, artists are able to explore new ways to express their thoughts and interpret the world around them.

Projects like Hito Steyerl’s Actual Reality and Estella Tse’s Two Sides of the Same Coin use augmented reality to discuss inequality and identity, respectively. The First Thinking Sculpture, inspired by Catalan architect’s belief in art as a sign of the times, uses IBM’s AI Watson to analyze opinions on AI, IoT, and security and moves its segments according to these trends.

Locally, Issay Rodriguez uses VR in her installation Doon, part of the upcoming Art Fair Philippines 2020. Inspired by her experiences with Aeta wild honey gatherers, participants are immersed in a fantastical beehive where they help bees gather honey and are rewarded for their actions. “My work was incepted not just to push the boundaries of virtual space, but also to weigh in the equal importance of physical play or space,” she said. “The Link is the perfect venue, because… of its multi-layer car park, so it’s like reliving the trek inside the forest but in a different sense.”

Aside from the art itself, 4IR technologies are also being used to improve and enhance the preservation and appreciation art. The National Museum of China uses AI and IoT to create customized environments for each specimen and predict potential threats to their infrastructure. Visitors to Connect, BTS, a series of global art installations commissioned by the eponymous South Korean band, can access augmented reality videos of the members explaining the piece.

For Ibba Bernardo, CEO of I AM Cardboard PH, these innovations in the art community make our digital experiences much more natural and engaging. “The user experience and interface [of mobile devices]… [they’re] catered to humans, but the device isn’t. The fact that our heads are bowed down and we consume media in tiny, 5×3 format screens isn’t optimal… That is our next [step], where we can interface with information with our heads held up high like human beings, not bent down at an angle.”

A palette of opportunities

As more and more members of the art community incorporate 4IR technologies in their projects, it’s produced some interesting economic effects. According to job site Hired, demand for AR/VR engineers increased by a whopping 1,400% in 2019. AI is also having its own moment, with computer vision and machine learning engineers tallying a 146% and 89% demand growth, respectively.

Rodriguez, who also teaches art and design part-time for high school students, believes in these great opportunities for the next generation. “This gives a lot of chances to my students who, if they are actually prepared with the skill sets, can already achieve so much… There [could also be] a lot of freelance opportunities where they won’t be confined by the traditional setup of going to the office, especially with the bad traffic.”

These new technologies are also making art more accessible to the general public. The Ayala Museum and I AM Cardboard PH, for example, were able to bring their VR historical dioramas to various schools since all they needed to work were the headsets.

“[Technology brings] down the cost of experiencing art and reduces the need to travel to see art, in most cases,” said Cristina Herfort and Sandra Palomar, representatives of art agency art/n23. “It also adds an educational dimension: it is easier and less elitist to bring art education with digital technology.”

To the real, through the “unreal”

While most of these artworks straddle the line between the tangible and intangible, their creators believe that they spark something very real within their audience. “I think of these virtual reality experiences that we make as ‘empathy machines’…You read it in a book, but we put you there,” said Bernardo, who has seen viewers cry after watching their VR installations.

They also help people to connect and reconnect with their surroundings, allowing them to see and feel the familiar world through a different lens.

“Instead of doing something that’s just showing what’s wrong in the world… I want to participate [in] and distribute new ways of looking at the world,” said Jakob Kudsk Steensen, whose virtual work Catharsis simulates the growth of a re-imagined old forest. “So I really hope that the audience who sees this… [would] want to connect with nature and the technology they live with in new ways.”

Lumina recognized as “Top 1 Developer” by Pag-IBIG fund

February 27, 2020 | 8:36 am

In a country where real estate has been booming for the last decade, particularly in the luxury residential and commercial segments, one company is making sure that no Filipino family gets left behind –– Prima Casa Land & Houses, Inc.’s Lumina Homes.

According to the Subdivision and Housing Developers Association, Inc. (SHDA), an alliance of over 200 private housing developers, there exists a massive housing deficit of 3.9 million units, which could rise up to 6.5 million in 2030 if the issue is not addressed.

Lumina realized this issue in as early as 2012 and has since developed over 50 projects nationwide –– and continuously growing ––to reach thousands of Filipinos in need of affordable housing.

Lumina was recently recognized by Pag-IBIG Fund as “Top 1 Developer” among its accredited developers in terms of housing loans takeout – loan value for 2019 at the 2019 Pag-IBIG Fund Chairman’s Report held last Feb. 7, 2020 at the Philippine International Convention Center (PICC) in Pasay City.

Lumina jumped from Top 6 in 2016 and 2017 rankings, and from Top 4 in 2018, and also received a special award for having the “most number of Pag-IBIG Fund housing borrowers served” for 2019.

Lumina President and COO Estrellita S. Tan thanks Pag-IBIG Fund for continuously listening to industry stakeholders and for finding ways to address issues and concerns through relevant and timely reform initiatives to address the growing housing backlog and contribute to the development of the countryside.

“Pag-IBIG Fund has truly given us the confidence to embrace an aggressive stance to expand across the country and to fulfill our commitment to build affordable communities and realize the Filipino dream of home ownership. We look forward to our continuing partnership and better linkage to further strengthen the industry,” she says, adding that Lumina is excited for the full implementation of Pag-IBIG Fund’s virtual platform, under the leadership of its president, Mr. Acmad Moti.

Continuously shedding light to the countryside

Today, Lumina developments are located in key town and provinces across the country: Rizal, Bulacan, Pampanga, Zambales, Bataan, Tarlac, Pangasinan, La Union, Nueva Ecija, Cavite, Laguna, Batangas, Quezon, Camarines Norte, Albay, Sorsogon, Iloilo, Capiz, Cebu, Negros Occidental, Agusandel Norte, Zamboanga Del Sur, Bukidnon, Misamis Occidental, and Davao.

Currently offering a roster of row houses, townhouses, and single firewall homes, Lumina’s home offerings are built of high-quality materials and cost from P500, 000 up to P1.7 million. If qualified by Pag-IBIG standards as a “low-income earner,” a buyer can pay for as little as P1, 897 a month at 3% interest for a brand-new home in a safe and secure Lumina community.

Lumina developments come complete with amenities like a covered multi-purpose hall, mini gardens and playground, and provision for commercial area.

By building in accessible locations close to major thoroughfares, transport hubs, schools, hospitals, and business and leisure centers, Lumina not just builds a self-sustaining community, it also provides every Juan the pride of homeownership.

For more information, follow @luminahomesofficial on Facebook and visit Lumina Homes’ official website at https://www.lumina.com.ph/.

Tighter capital rules for smaller banks

February 27, 2020 | 12:33 am

By Luz Wendy T. Noble
Reporter

THE CENTRAL BANK on Wednesday said it would tighten capital requirements on smaller standalone lenders, consistent with international standards that would let these financial institutions continue absorbing losses.

“The enhanced capital standard is aimed at promoting the safety and soundness of individual banks and the banking system,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.

“This reinforces the importance of maintaining sufficient level of common equity which could absorb losses on an ongoing basis,” it added.

The stricter capital requirement was only imposed on big banks and their thrift units before Wednesday’s announcement.

BSP said there would be an observation period until the end of 2021 to make room for a “smooth transition” to the revised capital rules.

Under the new rules approved by the policy-making Monetary Board, standalone thrift, rural and cooperative banks must provide for minimum capital ratios including a common equity tier 1 ratio of 6%, a tier 1 ratio of 7.5% and a capital conservation buffer of 2.5%.

These are on top of the minimum capital adequacy ratio of 10%. Tier 1 capital is largely made up of common equity tier 1 capital elements such as common shares, additional paid-in capital, retained earnings and undivided profits.

Additional tier 1 capital is mostly made up of eligible perpetual capital instruments.

This will put local bank rules at par with international standards under the Basel III requirements, the central bank said.

Smaller banks already have enough funds to comply with the rules and the central bank was just “formalizing” the requirements, BSP Deputy Governor Chuchi G. Fonacier said in an interview.

Banks covered by the revised standards must submit parallel capital adequacy ratio reports using the existing and new frameworks until Dec. 31 next year, BSP said.

The Basel III framework took effect in 2014 to improve banks’ risk management and force them to avoid excessive financial stress, as what happened during the 2008 global financial crisis.

BSP Managing Director Lyn I. Javier said in an interview that the stricter capital rules are part of the second phase of compliance with Basel III standards.

Suzanne I. Felix, executive director of the Chamber of Thrift Banks, said they were confident the industry could meet the requirements.

“Our members are definitely strong enough to meet the requirements,” Ms. Felix said in an emailed reply to questions, citing the industry’s capital adequacy ratio of 17%.

“I don’t think it will affect lending in general, though this may have an impact on banks that are into hybrid instruments,” she said, referring to securities that could qualify for both equity and debt.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said the reform seeks to strengthen the banking industry as a whole, given that smaller players are “really vulnerable to financial shocks and changes in the system.”

“It would be the most prudent thing to do to help these types of financial institutions weather the challenges of any financial system shocks,” he said in an e-mail.

The changes would also act as a “filtering mechanism” to separate the stronger banks from the weaker ones.

“It can also show which institutions need more help, and which ones can really stand alone,” he said.

China’s POGO crackdown, coronavirus may dampen PHL office space demand

February 27, 2020 | 12:32 am

By Denise A. Valdez
Reporter

THE CONTINUED global spread of the coronavirus disease 2019 (COVID-19), coupled with the Chinese government’s crackdown on its citizens employed by Philippine Offshore Gaming Operators (POGO), may dampen office space demand in the country this year.

The POGO industry, which is largely powered by Chinese employees, has grown exponentially in the last four years to become the top driver of office space demand.

JLL Philippines, Inc. Research Head Janlo de los Reyes said there may be a decline in office take-up from POGOs this year, mainly due to labor issues and travel restrictions arising from the COVID-19 outbreak.

“Landlords may become reluctant to accommodate new (POGO) tenants within their buildings due to health concerns. Similarly, we may likely see a dip in residential sales and leasing as the Chinese market is one of the major drivers in recent years,” he said in an e-mail.

POGOs are now also looking for new sources of Chinese-speaking workers, as the Philippines imposed a travel ban on China, Hong Kong, and Macau to curb the spread of the COVID-19.

“POGO firms continue to pre-lease office space due to be completed in the next two to three quarters. However, the challenge is to look for Chinese employees that will man the operations,” Colliers International Philippines Senior Research Manager Joey Roi H. Bondoc said in an e-mail.

“Operators are looking for employees outside Mainland China. And they plan to fit out once the new office towers are completed,” he added.

Colliers Philippines reported POGOs have pre-leased close to 54,000 square meters (sq.m.) of office space in the first two months of 2020. These are located in three business districts across Metro Manila.

Strong demand from POGOs has been fueling the growth of the office sector in recent years, outpacing the information technology-business process management (IT-BPM) industry.

Data from Leechiu Property Consultants (LPC) showed the POGO industry took up the largest office stock in 2019 at 738,000 sq.m. out of the 1.7 million sq.m. total office transactions.

POGOs’ net take-up for current supply stood at 613,000 sq.m., while 127,000 sq.m. are pre-commitments for future supply this year and 2021.

On the other hand, Colliers originally projected POGOs to take up more than 300,000 sq.m. or a third of total office space demand for 2020.

In the worst case scenario where the POGO industry does not take up additional office space this year, Colliers’ Mr. Bondoc said vacancy rates in Metro Manila may rise to up to 7.6%.

Office vacancy in Metro Manila stood at 4.3% in 2019, according to Colliers.

“So far, Colliers has assumed that the global health scare is likely to peak in (first half of) 2020… However, we acknowledge the possibility of a more negative scenario and this is likely to extend the travel ban. Hence, disruption…might last into (the second half of) 2020,” he said.

Despite the challenges, Colliers is hopeful IT-BPM and traditional firms will make up for an expected slowdown in office space demand from POGOs.

“Note that the Metro Manila office market does not depend on a single segment for absorption,” he said. “[W]e also have traditional firms and outsourcing companies that could fill the void.”

Demand from the IT-BPM sector stood at 573,000 sq.m. in 2019, representing 34% of total take-up. Demand from other sectors such as flexible work spaces, banking and finance, technology, real estate and government, reached 379,000 sq.m. or 22% of the total.

The highly domestic nature of manpower for these sectors is seen to keep them relatively resilient from the impact of the COVID-19 epidemic.

As business districts that relied on POGOs for growth may see slower office demand this year, Mr. Bondoc said they may easily attract outsourcing and traditional companies that are looking to consolidate operations.

Offshore gaming operators dominate Philippine office space demand in 2019

February 27, 2020 | 12:31 am

Domestic commodity flows contract in Q4

February 27, 2020 | 12:31 am

By Carmina Angelica V. Olano
Researcher

LOCALLY TRADED GOODS declined in the fourth quarter of 2019, the government reported yesterday.

Preliminary results from the Philippine Statistics Authority (PSA) report on “Commodity Flow in the Philippines” showed the volume of goods traded during the last three months of 2019 contracted by 45.4% to 3.95 million tons from 7.24 million tons previously.

Likewise, the value of these traded goods shrank by 27.8% to P127.76 billion from P177 billion in the fourth quarter of 2018.

Commodity flow, also known as domestic trade, refers to the flow of goods in the country through water, air, and rail transport systems. The bulk, or 99.6%, of the trade was mainly facilitated through water transport systems.

Nine out of the 10 commodity categories monitored by the PSA reported a decrease in trade quantity. Food and live animals — which accounted for the biggest share of trade in terms of volume — fell 42.2% to 1.21 million tons. Similarly, its trade value went down by 50.9% to P20.75 billion.

The biggest decline was seen in “manufactured goods classified chiefly by material,” whose trade volume fell 76.4% to 389,952 tons. Its value also went down by 35.3% to P13.85 billion.

On the other hand, the quantity and value of trade in “commodities and transactions not classified elsewhere in the [Philippine Standard Commodity Classification]” rose by 323.1% (to 626,399 tons) and 140.6% (to P9.97 billion), respectively.

The National Capital Region was the top source of commodities in the fourth quarter, with outflows amounting to P42.59 billion. It had a domestic trade surplus of P32.49 billion.

Meanwhile, the Caraga Region was the top destination of commodities with total inflows reaching P28.97 billion, and posting a trade deficit of P23.06 billion.

“The fourth-quarter gross domestic product (GDP) picked up to 6.4%, which means that domestic trade, both in volume and value, has also increased. Thus, this recent data release was not expected at all,” said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion in an e-mail.

Mr. Asuncion added that had commodity flows through land been included in measuring domestic trade activity, the fourth-quarter reading could have shown gains.

“I suspect that if there was a way to measure trade through land, this particular economic data would be correlated to economic growth, [that is], if GDP rises, domestic trade increases as well,” he said.

According to the PSA, the domestic trade data exclude the flow of goods through land due to the “absence of an approach to capture data in the archipelagic islands of the country.” Rail transport statistics were also not included, the PSA said, due to the rehabilitation and upgrade of state-owned Philippine National Railways.

Even so, Mr. Asuncion said the figures are “concerning” considering that the Philippine economy expanded in the fourth quarter. “An explanation can be that numbers are coming from higher bases because of higher economic growth compared to 2018,” he said.

On the other hand, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the annual declines in domestic trade volume and value for the quarter were “expected” and “consistent” with the declines in manufacturing output and imports dragged by the effects of the US-China trade war.

“Fundamentally, the year-on-year declines in both local manufacturing output and in imports resulted in less volume and value of goods traded and transported throughout the country,” he said in an e-mail interview.

Mr. Ricafort also said the government underspending partly due to the almost four-month delay in the passage of last year’s national budget may have affected commodity flows as it “brought less materials or inputs especially for infrastructure projects traded and transported domestically.”

OUTLOOK
Domestic trade may be adversely affected by the ongoing coronavirus disease 2019 (COVID-19) outbreak, economists said.

“[For] the first quarter and succeeding quarters this year…the COVID-19 outbreak may have an impact on domestic trade, but estimating the potential impact may be difficult at this point,” UnionBank’s Mr. Asuncion said.

“Demand for goods that are actually traded may be driven by one’s perception of health and safety, and the threat of the COVID-19 spread can cause fear and can affect one’s consumption behavior,” he added.

For RCBC’s Mr. Ricafort, COVID-19 would “remain a major headwind” on domestic trade figures this year, with the slowdown in manufacturing output, exports, and imports acting as “offsetting factors” to any increased government spending this year.

Nonetheless, he noted domestic trade “could pick up” starting in the first quarter in view of the timely approval of the 2020 national budget as well as the extension of the validity of the 2019 budget.

Some prepare for bear market as local stocks sink

February 27, 2020 | 12:30 am

PHILIPPINE equities sank the most in four years, and some analysts are already watching out for a bear market.

As fears over the spreading coronavirus escalate, the Philippine Stock Exchange index lost 3.9% to 6,909.84 on Wednesday, taking its three-day slump to 6.8%. Manny Cruz, a strategist at Papa Securities Corp. in Manila, says the gauge could test the 6,692.23 level in the coming months, marking a 20% slide from its 2019 high, as concerns over the outbreak and its impact undermine expectations of stronger economic and earnings growth this year.

“It wouldn’t be far to enter a bear market with the continued uncertainty,” said Mr. Cruz, who correctly called a market rout in 2018, when earnings didn’t support valuations. “If more advanced economies are taking a hit, what more with the Philippines? While we have one of the fewest cases, this can quickly and dramatically change, just like what happened in South Korea.”

Virus fears are hounding the Philippines even as it has had only three cases so far. Now the nation’s benchmark gauge is about 3% away from entering a bear market. With Wednesday’s sell-off, its year-to-date loss has mounted to almost 12%, the world’s worst performance after Lebanon and Thailand, which entered bear territory on Monday.

Philippine shares were already hit by President Rodrigo R. Duterte’s verbal attacks on some of the nation’s biggest business groups for contracts he alleged were disadvantageous to the public. Still, before the outbreak, analysts and investors came into 2020 with an optimistic outlook. The nation’s biggest money manager, BDO Unibank, Inc., and First Metro Investment Corp. were among those that anticipated a double-digit gain for the nation’s equity index this year, thanks to accelerating economic and earnings growth. But with the coronavirus, things have changed.

“It’s unthinkable earnings won’t take a hit,” Mr. Cruz said, adding that 10% profit growth this year for Philippine companies could be“optimistic” because the outbreak has affected supply chains and consumer behavior. “There will be a big dent in first-quarter earnings that will extend into the next three months.”

He expects rallies to be short-lived as risk-off sentiment has yet to peak since infections are still growing globally. “The next stage from here will be talks and fears of a recession” once the virus hit becomes apparent on the economies affected, he said.

And the effect will extend beyond the tourism and consumer sectors, he warns. A slowdown in manufacturing would slow demand for loans and electricity, creating a “domino effect” on other industries and the economy, according to Mr. Cruz. That’s why he favors stocks where he sees a more muted impact, such as lenders and developers including Bank of the Philippine Islands, Security Bank Corp., Metropolitan Bank & Trust Co. and Ayala Land, Inc. — Bloomberg

MPIC takes ‘serious’ review as stocks fail to soar

February 27, 2020 | 12:08 am

By Denise A. Valdez, Reporter

METRO PACIFIC Investments Corp. (MPIC) needs a serious review of its business holdings amid a politically charged regulatory environment and declining investor enthusiasm in its asset class, company officials said.

After reporting a 69% surge in attributable net income to P23.9 billion in 2019, the listed infrastructure conglomerate said its earnings are evidently not translating to the performance of its share price.

Shares in MPIC closed P2.97 each on Wednesday, shedding nine centavos or 2.94%. It has been trading between P3.79 and P2.87 for the past 30 days.

“While we might attribute some of this to market factors and some to conglomerate discount, the discount (so we are advised) reflects concern on political developments,” MPIC Chairman Manuel V. Pangilinan was quoted in a Wednesday statement as saying.

Noting that the company have been asked about its outlook on investing in Philippine-regulated infrastructure, including means to raise capital to support such investments, he said it was difficult to provide an answer at the moment.

“There are no quick or easy answers to these questions but the current model of a listed infrastructure business with a wide pool of dedicated Philippine and foreign shareholders putting their faith in these long-term contracts needs serious review,” Mr. Pangilinan said.

“Meanwhile…, we are committed to completing our current projects while directing discretionary investment to warehousing, real estate and tourism,” he added.

MPIC is a majority investor in Maynilad Water Services, Inc., one of the two water concessionaires in Metro Manila that are being accused by President Rodrigo R. Duterte of benefitting from alleged “onerous” provisions in their concession contracts.

The holding company, which also controls power, tollroads, hospital and rail businesses, posted a core net income of P15.6 billion in 2019, up 4% from a year ago. System-wide revenues during the period stood at P424.1 billion, a 5% uptick from in 2018.

Substantial growth from power unit Manila Electric Co. (Meralco), increased traffic in domestic roads, and a higher number of patients in hospitals were key drivers of MPIC’s income.

The power business comprised 55% or P11.6 billion of MPIC’s net operating income. Tollroads accounted for 25% or P5.2 billion; water contributed 17% or P3.6 billion; and hospitals added 4% or P867 million. Other businesses such as rail and logistics posted a combined net loss of P352 million.

“Our 7% growth in contribution from operations reflects a decade and more of sustained capital investment to enable meaningful volume increases in all our major businesses,” MPIC President and Chief Executive Officer Jose Ma. K. Lim was quoted as saying.

But he noted the company’s expansion and “attempted constructive engagement on tariffs” with the government has not resulted favorably, as its various contracts are now being deemed as having onerous provisions.

Aside from Maynilad, the company also has long-pending tariff issues with the government through its tollroads unit Metro Pacific Tollways Corp.

“[T]he fall in our share price, along with the prices of other listed companies with government concessions, shows that despite our growth investors now attach sharply higher risk premiums for government adherence to contract,” Mr. Lim said.

He said this resulted in Maynilad’s inability to pay dividends, and MPIC recasting its investment program due to lower inbound cash flow, increased regulatory risk, and lack of investor enthusiasm.

“Ironically, even though there is huge demand for the services we provide, our discretionary investment spending beyond committed infrastructure projects will divert to less risky businesses like warehousing, real estate, and tourism,” he said.

MPIC has yet to announce its earnings and capital expenditure guidance for 2020 amid the uncertainties. But its board of directors approved a share buyback program of up to P5 billion until May 26.

It said the program might be triggered if the company’s stock is substantially undervalued, when there is high volatility in share prices, or there is any instance that would call for a buyback to improve shareholder value.

MPIC likewise reported operational highlights across its business units yesterday. Meralco’s core net income grew 6% to P23.8 billion due to a 6% increase in energy sales, lower borrowing costs and higher investment returns. Its power generation business, Global Business Power Corp., saw an 11% rise in core net income to P2.7 billion.

The tollroads unit posted an 18% increase in net income to P5.3 billion, driven by higher traffic in domestic roads and tariff adjustments in three expressways.

MPIC’s water business, operating through Maynilad and MetroPac Water Investments Corp., posted a total net income of P3.6 billion last year.

The hospital unit saw a 14% increase in core income to P2.7 billion, as it recorded an 11% increase in outpatient visits and 4% growth in inpatient admissions.

The rail segment, which operates the Light Rail Transit Line 1, contributed P319 million in MPIC’s core income.

“We will endeavor to at least match our 2019 Core Income in the year ahead, despite the challenges,” Mr. Pangilinan said.

MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group.

Force majeure an option if virus impedes telco rollout, says DITO

February 27, 2020 | 12:07 am

By Arjay L. Balinbin, Reporter

DENNIS A. Uy’s DITO Telecommunity Corp. on Wednesday said it has the option to invoke force majeure in case the novel coronavirus outbreak impedes the rollout of its services.

But the company said it has remedial measures to address the impact of the deadly virus on its rollout, one of which is to source materials, especially steel, from markets outside China.

Adel A. Tamano, DITO chief administrative officer, said under Philippine laws an outbreak such as the coronavirus can be considered a reason to declare force majeure.

“We can use that as legal basis. Let’s say if we have a delay, we can ask for a grace period. That’s the legal side [of it],” he told reporters on Wednesday on the sidelines of the inspection of a tower in San Francisco del Monte, Quezon City.

DITO Chief Technology Officer Rodolfo D. Santiago noted that Hubei province, where the new virus is believed to have originated, is one of the manufacturing hubs of China.

“‘Yung impact sa rollout namin ay ‘yung sa (The impact on our rollout is on the) steel or tower components and fiber cable,” he said.

“But our vendors are confident since they have manufacturing plants in other countries. They would request their subsidiaries… to prioritize the supply for the Philippines,” he added.

Despite the situation, Mr. Tamano said DITO would stick to the timeline.

“We will find ways to mitigate all the effects of the situation so that our rollout will not be delayed,” he said. “Our position is very strong. Unless we have exhausted all the possible alternatives, that’s the only time we would consider citing a force majeure situation.”

DITO said last week that its commercial launch would be in March 2021 as indicated in its Certificate of Public Convenience and Necessity (CPCN). The “technical launch” will happen in July.

The National Telecommunications Commission will audit DITO’s compliance with the government’s requirement to cover 37% of the population nationwide with 27 megabits per second (mbps) during the “technical launch,” Mr. Tamano said.

A pre-commercial trial will begin in September, he said, adding that the commercial launch can also happen before March 2021.

For his part, Mr. Santiago said the company is “aiming to invest P150 billion this year.”

“There’s a possibility to spend less if we can improve efficiencies, which would also bring down costs for consumers,” he added.

Mr. Tamano said DITO has already drawn from the initial facility “worth $500 million through the Bank of China.”

President Rodrigo R. Duterte formally awarded DITO’s CPCN in July last year. If DITO fails to meet its commitments, its CPCN will be taken back by the government.

Lawmakers move to act on ABS-CBN franchise issue

February 27, 2020 | 12:06 am

SENATOR Franklin M. Drilon has filed the concurrent resolution that will allow ABS-CBN Corp. to continue its operation beyond the May 4 expiration of its franchise, while its renewal is pending in Congress.

This comes even as Senate President Vicente C. Sotto III stood firm that it would be best to pass the franchise bill, instead of a resolution.

“Pag-uusapan muna ‘yun, hindi ako palo sa sinasabi ng NTC (National Telecommunications Commission) na kailangan ng resolution ng Senate,” Mr. Sotto said in a briefing, Wednesday.

(That will be discussed first as I don’t agree with what the NTC is saying that a Senate resolution is needed.)

Mr. Sotto said a resolution was not needed for the expiring franchise of a power distribution utility in Iloilo nor those of telecommunication companies.

The Department of Justice on Monday said Congress, through a concurrent resolution, may permit the NTC to issue a provisional authority to ABS-CBN subject to terms and conditions.

Mr. Sotto said he was also looking into a Supreme Court (SC) decision in 2004 that ruled that the validity of a franchise may be extended as long as an application for its renewal is pending in Congress.

He explained the 2004 memorandum of understanding that allowed the NTC to issue temporary permits was superseded by an SC ruling of the same effect.

“Therefore, a Supreme Court decision forms part of the law of the land. Kailangan pag-aralan naming mabuting mabuti ‘yan (We have to study that carefully).”

The resolution was filed with eight session days left before the 18^th Congress goes on its March 14- May 3 break.

Sought for comment, Mr. Drilon said the chamber as a co-equal branch of the high court should not be “frozen into inaction.”

“If there is a dispute, then the matter is brought to the Supreme Court for adjudication. Until that time, there is nothing to prevent us from interpreting our own plenary power,” Mr. Drilon said in a separate briefing.

Presidential Spokesperson Salvador S. Panelo, meanwhile, said the resolution would be ineffective.

“There has been a Supreme Court ruling many years ago, a Supreme Court ruling cannot be as binding and effective as a law. They really need to do their work,” Mr. Panelo said in a briefing in Malacañang, Wednesday.

“If they can pass a resolution, I cannot understand why they cannot pass a law on that renewal or grant of a franchise.”

At the House of Representatives, a legislator has filed a resolution seeking to extend the legislative franchise of ABS-CBN until May 4, 2021.

“The extension of the current franchise of ABS-CBN for one year will give members of Congress enough time to thoroughly study and debate on the (11) bills filed in the House of Representatives,” Cagayan de Oro Rep. Rufus B. Rodriguez said in his House Joint Resolution 29, which was filed on Wednesday.

The lawmaker noted that ABS-CBN has not committed any violations, as testified by the representatives of NTC, Security and Exchange Commission, Bureau of Internal Revenue and the Department of Labor during a Senate hearing on Monday.

Currently, 11 bills are pending in the House committee on legislative franchises seeking to renew the franchise of ABS-CBN. One bill is seeking to renew the franchise of ABS-CBN Convergence, Inc.

Palawan Rep. Franz E. Alvarez, who chairs the committee, said that the panel is open to receive position papers of the supporters and opposers of the media network’s franchise renewal.

He added that formal hearings on the matter might start either in May or August.

As clarified by Justice Secretary Menardo I. Guevarra, ABS-CBN’s franchise will expire on May 4, 2020. Congress, on the other hand, has six session days left before it adjourns for its Easter recess. — Charmaine A. Tadalan and Genshen L. Espedido

Huawei launches Mate XS foldable smartphone with better screen

February 27, 2020 | 12:06 am

HUAWEI unveiled an upgrade to its folding smartphone on Monday, hoping that a faster phone with higher-quality display will encourage consumers to spend as much as $2,700 for the top-of-the-range version.

The new Mate XS arrives a year after the Chinese tech giant showed off its first folding phone, which had back-to-back screens that opened to create an eight-inch display. That device went on sale in China in November after the company improved the design.

The Mate XS has the same size display as its predecessor but comes with an improved gull-wing hinge mechanism and stronger wraparound screen, while boasting faster download speeds and longer battery life than the rival Samsung Galaxy Fold, Huawei’s top salesman Richard Yu told a launch presentation in Barcelona.

The folding phone will be priced at €2,499 ($2,710) for its premium model and goes on sale worldwide next month, said Yu, as Huawei pushed the price frontier for the most expensive smartphones even higher.

The launch was streamed from Barcelona, where the Mobile World Congress was due to be held this week before it was cancelled because of the coronavirus outbreak.

Sony meanwhile, showcased its newest Xperia 1 device as the Japanese company — which lies outside the top 10 smartphone makers by sales — targeted its niche audience of high-fidelity video fans.

FOLDING RACE
Samsung Electronics, the world’s top smartphone maker by volume, narrowly beat its Chinese rival in the folding race last year, but its launch was delayed after testers encountered problems with the screens.

The South Korean company is persevering with foldable technology and this month showed off a device shaped like a makeup compact that unfolded to look like a traditional smartphone.

The Mate XS, like last year’s Mate 30 smartphone, will lack access to a licensed version of Google’s Android operating system after the United States effectively barred its companies from supplying Huawei last year.

Huawei is offering users access to its own app store instead, but Yu said it remains committed to the Android ecosystem and to its longer-term partnerships with Google and other US companies.

“We believe technology should be open and available for everyone,” Yu said in his keynote speech.

Huawei also launched a speaker developed with French audio specialist Devialet, the first tablet in its Mate range and two new notebooks — a top of the range Matebook X Pro and Matebook D with 14-inch and 15-inch screens.

Huawei plans to hold a launch event for the P40, a 5G smartphone, in Paris next month, said Yu. — Reuters

Duterte accepts apology of network’s president

February 27, 2020 | 12:05 am

PRESIDENT Rodrigo R. Duterte said on Wednesday that he had accepted the apology of ABS-CBN Corp. after the top official of the network said in a Senate hearing on Monday that they were sorry if they had offended him.

“I accept the apology, of course,” he told reporters when asked to respond to the apology of Carlo L. Katigbak, the company’s president and chief executive officer.

Asked whether he supports the renewal of ABS-CBN’s franchise, he said: “I said I will leave it up to Congress.”

But he declined to accept the P2.6 million being refunded by the company for not airing his campaign ad during the 2016 presidential elections.

“Wag na (Never mind). Ibigay nila sa ano (They should just donate it to) any charitable institution of their choice.”

When asked whether he would instruct the Solicitor General about his stand, he said he could not tell the state lawyer to stop once an official statement had been issued.

“The SolGen does not clear with me unlike the Secretary of Justice,” he said.

Meanwhile, the Supreme Court deferred action on the pleadings of broadcast company ABS-CBN and ABS-CBN Convergence, Inc. and the Office of the Solicitor General (OSG).

Public Information Chief Brian Keith F. Hosaka said the pleadings of both parties on the petitions for quo warranto and gag order will be taken up again on March 10.

“This is to give the Justices time to go over the pleadings submitted by the parties, including the comments recently filed by the respondents,” he told reporters in a mobile-phone message.

ABS-CBN filed its comments on the petitions of the state lawyers. The network said if the petition for quo warranto would be granted, it will send a “chilling effect” to the press as it could compromise freedom of speech and of the press.

It also denied the law violations it allegedly committed as claimed by the OSG.

The network said that issuance of a gag order is a violation of rights to free speech and free press. It also said that the state lawyer failed to show how its reports may “create a clear and present danger of impairing the proceedings before this Honorable Court” and it is just performing its mandate on information dissemination.

In the quo warranto petition, the OSG sought to cancel the legislative franchises of the network and its unit for allegedly violating the laws such as provision on foreign ownership restriction and operating a pay-per-view channel without regulatory approval, among others.

The state lawyer filed a petition for issuance of gag order to prohibit both parties from releasing statements discussing the merits of the case. — Gillian M. Cortez and Vann Marlo M. Villegas

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