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Online palengke delivers wet and dry goods to one’s doorstep

PalengkeLink, a local digital delivery and online palengke (wet market) app for wet and dry goods, allows customers to place orders with a merchant identified as a palengke stall owner or local market partner, and have their goods delivered by a rider partner within the day.

Launched on March 1, the app offers the convenience of local market selections with affordable fees. The app’s convenience fee is 8% for cashless transactions and 15% for cash transactions. Its share in delivery fees is 10%. 

“We created an app that caters to a different client base,” said Mark Ryan T. Penafiel, PalengkeLink programming and accounting officer. “Our goal is to serve the other sectors: palengkes and home-based food sellers that have no available platform to sell their products.” 

The PalengkeLink team visited wet markets and taught vendors how to use the platform. They were soon trying to outdo each other in photographing their items and writing product descriptions. “They are empowered to upload their items themselves on the app,” said Mr. Penafiel. 

There are more than 150 merchants on the app. A five-star rating system weeds out merchants with consistently low ratings (or those with fewer than three stars). The platform has 15 rider partners, with more than 100 others waiting for their applications to be approved. The company said they do not overhire to ensure that all rider partners registered have enough bookings. 

Customers can pay with cash, debit or credit card, or GCash. Only one fee is necessary for transactions, including multi-stall transactions.

PalengkiLink serves Quezon City, Marikina City, and the City of Manila, through stall owners in Farmers Market Cubao, Mega Q Mart, Altura Bagsakan Market, Guadalupe Commercial Complex, Marikina Public Market, Maypajo Public Market, and Choice Market Ortigas. 

It is in talks with areas such as Davao, Cebu, and Tarlac that are interested in the app.

“We’re trying to compete with giants in the market but [we will do it] slowly but surely,” Mr. Penafiel said. “We’re Philippine-based and we have low funding.”

PalengkeLink is available on Android phones at the moment. — Patricia B. Mirasol

Adidas accelerates its commitment to creating an inclusive space in sport for women with product innovation and fresh workout series

 

  • adidas announces Watch Us Move campaign that supports all women, unveiling 2021 roadmap of product innovations from performance tights that help you stay in play during your period, to modesty swimwear
  • The first product innovation to drop is Formotion; adidas’ most supportive activewear yet, available online and in select markets from March 4
  • The Move With Us fitness series, accessible for free on YouTube, brings content from a line-up of inspirational athletes and fitness enthusiasts to living rooms worldwide

On a relentless pursuit to ensure sport belongs to everyone, regardless of age, socio-economic and cultural background, or sporting ability, adidas today announces Watch Us Move – a long-term campaign created to better support all women in sport.

Aimee Arana, General Manager, Global Training at adidas, said: “We believe that sport should be accessible to – and representative of – all, and this year we are accelerating our efforts to ensure it is an inclusive space for women. The Watch Us Move campaign is a milestone for adidas; it is our promise to celebrate and support all women by creating performance product that keeps you moving, and we are opening up our platforms to those who are paving the way.

On the other hand, the Move With Us series seeks to keep the hearts, minds and bodies of its female audience healthy

We had real, open, and honest conversations with women around the world about the things that are missing and what we can do better. This collaborative approach was vital in understanding the needs of underrepresented communities in particular; those that don’t recognize themselves within the traditional spaces of sport and wellness, nor are able to find effective performance wear built to their specific needs.”

As part of the campaign, adidas will be pushing boundaries and releasing product innovations throughout this year and beyond that are informed directly by insights gained from extensive listening and research. This exercise shed light on some of the barriers women face to movement.

Equipped with this knowledge, adidas’ designers and engineers have been working to develop performance wear that removes gaps faced by such communities; modest swimwear, a performance tight that helps you stay in play during your period, performance footwear crafted with the female anatomy in focus and an extension of its maternity collection. The campaign kicks off with the arrival of adidas’ most supportive activewear yet, Formotion.

The collection features adidas’ quick-dry Aeroready fabric and PRIMEGREEN

The Formotion collection has been developed by an all-female design team to deliver maximum support, whilst offering a comfortable fit that works seamlessly with the body in motion.

Taking inspiration from shapewear technology, the hero tight uses graded compression – created after years of development – based on body mapping and motion studies to deliver precise support where it’s needed most. The compression zones have different intensities and are strategically placed around the waist and hips to sculpt, whilst high-stretch knit fabric around the legs and calves allows freedom to move without restraint in high-impact conditions.

Josefine Aberg, VP Product Design at adidas, said: “As we started on the journey of creation, we asked women from around the globe how they want to feel when they’re working out, and the feeling of confidence came up repeatedly. Many could relate to wearing uncomfortable apparel that holds them back when playing sport or exercising, affecting how they feel when moving. With this collection, we wanted to make women feel secure and strong, yet comfortable – liberating, rather than restricting, giving confidence through every move, from deadlifting to barre.”

Move With Us fitness series

Following an initial spike in searches for home workout content at the start of the pandemic, adidas has seen searches remain twice as high (+94%)*. With a growing online community of fitness enthusiasts and sustained need for home workout content, women have the convenience of going online to find classes. But while exercising at home should be a space for all, the diversity of those leading popular YouTube workouts is lacking.

Giving a platform to athletes and grassroots fitness enthusiasts from communities that have historically been underrepresented, adidas’ new series seeks to keep the hearts, minds, and bodies of its female audience healthy.

Available for free on youtube.com/adidaswomen, the series celebrates and enables movement for all and invites women around the world to enjoy the wellbeing it brings, no matter their circumstance.

The series kicks off on 25 February with workouts from body positive yoga expert, wellness entrepreneur and author, Jessamyn Stanley and world champion, Paralympic medallist, and motivational speaker, Denise Schindler. Classes will be dropping from March onwards, where adidas’ most inclusive line-up of elite and everyday athletes will be putting the new Formotion collection to the test. Discover the inspiring women’s stories and learn more about the campaign by checking out #WatchUsMove.

The Formotion collection is available worldwide from March 4. The collection features adidas’ quick-dry Aeroready fabric which keeps athletes feeling dry and comfortable, and PRIMEGREEN, a series of high-performance recycled materials using a minimum of 40% recycled content. Follow #Formotion for more product information.

 

NG debt rises to P10.3 trillion in Jan.

THE National Government’s (NG) outstanding debt rose to P10.327 trillion as of end-January after it borrowed another P540 billion from the central bank to boost its pandemic response, the Bureau of the Treasury (BTr) reported.

Latest BTr data showed the debt stock increased by 5.4% from P9.795 trillion as of end-December and by 33% from the P7.763 trillion logged in January 2020.

“The level of NG debt reflects a P532.46-billion increment from the end-December 2020 level predominantly due to the reavailment of the P540-billion short-term loan facility from the BSP (Bangko Sentral ng Pilipinas),” the Treasury said in a statement.

In December, the government repaid the P540-billion provisional advances from the BSP, only to borrow the same amount again the following month.

Domestic borrowings made up 71% of the P10-trillion debt stock, while the rest was sourced offshore.

The outstanding local debt went up by 9.4% from end-December to P7.326 trillion in January driven by the borrowings from the central bank. Year on year, the domestic debt stock jumped by 43% from P5.124 trillion.

Local government securities issued so far reached P6.785 trillion, up 1.4% month on month and 32.4% higher from its year-ago level of P5.13 trillion.

Meanwhile, NG total foreign debt went down by 3.2% to P3 trillion as of end-January from P3.1 trillion in December after the government repaid some P93.49 billion of foreign loans.

The BTr said the debt pile was also reduced due to the P8.47 billion effect of third currency depreciation against the dollar.

Despite the decrease, the external debt stock was still 13.7% bigger when compared with P2.64 trillion recorded in January 2020.

This included P1.335 trillion in foreign loans and P1.667 trillion in global bonds sold.

The BTr said despite the rising debt stock, the government’s borrowing costs remained low as shown in its weighted average interest rate (WAIR) which went down to 4.13% in January from 4.17% in December and 4.95% a year ago.

“A lower WAIR means that our interest bill (interest payments or IP) will be lower as new debt is contracted at lower rates. This helps our fiscal managers as IP will take up less of the budget, freeing more space for productive spending,” the BTr said.

Only 9.56% of the debt stock is exposed to interest rate volatility, it added.

The NG’s debt portfolio also has an average residual maturity of 7.55 years, or within the 7-10 target as the state prefers loans with shorter maturity since these are generally cheaper than those with longer tenors.

The average residual maturity for domestic debt eased to 5.37 years from 5.45 years last year, while that of the external debt went up to 12.49 years from 12.14 years.

“As markets moved towards these tenors, we are still maintaining average maturity so that we manage refinancing risks, or the risk that we face when we refinance our maturing obligations. Generally, this means that we are managing our near-term debt,” the BTr said.

Meanwhile, the total NG guaranteed debt eased by 0.4% from a month ago to P456.39 billion in January due to the net redemption of local and foreign guarantees worth P320 million and P180 million, respectively. The total guaranteed debt fell by 6.5% from P488.3 billion a year ago.

The total was further brought down by the lower value of external guarantees in peso terms, according to the Treasury.

Government estimates showed that the NG debt stock will rise to P11.98 trillion by end-2021.

Last year, the NG debt stock as a percentage of gross domestic product (GDP) spiked to a 14-year high at 54.5% from the record low of 39.6% in 2019. — Beatrice M. Laforga

Two-thirds of PHL employers plan to get COVID vaccines for workers

The Philippines on Monday began its coronavirus disease 2019 (COVID-19) vaccination campaign, with health workers inoculated with vaccines donated by China. — PHILIPPINE STAR/MICHAEL VARCAS

TWO-THIRDS of Philippine employers are planning to buy coronavirus disease 2019 (COVID-19) vaccines for their workforce, a survey from global advisory firm Willis Towers Watson and the People Management Association of the Philippines found.

The survey of 250 human resource practitioners in February showed that 65% have either already made arrangements to buy vaccines or are in the process of doing so.

Among the employers who have not started the process of buying vaccines, 58% are considering doing so, leaving 42% with no plans to buy COVID-19 doses.

As many as 68% of employers said that they would fully subsidize the cost of vaccines, while 11% said they would partially pay for the doses.

Around 7% of the employers said they would limit financial support to part of their workforce, with half of those saying that they would only pay for permanent employees’ inoculation.

“As for dependents and/or household members, the vast majority (71%) of companies would pass on the full cost to their employees,” Willis Towers Watson said in a statement on Tuesday.

For those in the process of buying vaccines, 60% said they are planning to provide vaccines for their employees’ dependents, while 52% of those who have not yet started the process said the same.

“When procuring or facilitating the purchase of the vaccine for employees’ dependents, over half of the respondents have indicated that these would include spouses, parents of single employees and children, all of whom are residing with their employees,” Willis Towers Watson said.

Over 40% of employers plan to include the parents of married employees, siblings of single employees, and those living in their workers’ households.

Most or 70% of employers considering buying vaccines said they are conducting a survey to find out how many employees are interested in inoculation. Among those who have not done a survey, 15% said they would wait for a confirmation of their orders before doing so.

The employers are looking at various vaccine administrators, with 37% considering a third party, 19% planning to work with their health maintenance organization, and 15% considering their on-site clinic provider.

The Philippines started vaccinating healthcare workers on Monday after receiving 600,000 doses of Sinovac Biotech Ltd.’s CoronaVac donated by the Chinese government.

Another half-a-million doses of a vaccine made by AstraZeneca Plc would be delayed by about a week due to global supply problems, Health Secretary Francisco T. Duque III earlier said.

National Policy Against COVID-19 deputy chief implementer Vivencio “Vince” B. Dizon on Tuesday said there’s no specific date yet for the arrival of the first batch of Pfizer-BioNTech vaccines.

“Companies need to focus on the health and wellbeing of their employees. In a study we conducted last year, 93% of employers think that the pandemic will have a negative impact on employee wellbeing. In a more recent survey, two-thirds of the respondents said that their companies’ response to the current pandemic or preparation for a future pandemic impacts their wellbeing approach and activities,”  Willis Towers Watson Philippines Health and Benefits Leader Susan La Chica said in the statement.

“By providing timely communication, benefits and access, employers can assist employees in getting vaccinated. This is an important role that employers can play in helping to protect their employees and limit the spread of COVID-19.” — Jenina P. Ibañez

Bank lending drops for 2nd month in a row

LOANS disbursed by big banks declined for a second consecutive month in January, as lenders remained risk-averse amid the coronavirus pandemic.

Outstanding loans by big banks fell 2.4% to P8.952 trillion in January from P9.175 trillion a year earlier, preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Tuesday showed.

This followed the 0.7% slip in December, which was the first decline since September 2006 when lending dropped by 1.9%.

“In general, credit activity remained soft due to weak demand as banks continued to be risk-averse on concerns over asset quality and profitability,” the central bank said in a statement.

Inclusive of reverse repurchase agreements, bank lending was down 2.2% in January.

“We are still in a pandemic and this consecutive decline was likely expected by many market watchers and other analysts. So, as long as we do not see any improvements regarding economic recovery, we may continue to see a lackluster bank lending,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

Borrowings for production activities declined by 1.1% in January, following a 0.4% decrease in December.

“Cost-cutting measures by some businesses/industries fundamentally resulted in some reduction in loan demand,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note.

BSP data showed a drop in loans disbursed to key industries, such as manufacturing (-7.4%), wholesale and retail trade and repair of motor vehicles and motorcycles (-6.9%), and the financial and insurance sector (-6.35%).

There was also a decline in loans for sectors such as mining and quarry (-10.3%); water supply, sewerage, waste management, and remediation activities (-5.7%); agriculture (-5.1%); information and communication (-0.2%); professional, scientific and technical services (-39.9%); administrative and support services activities (-12.9%); and education (-4.9%).

On the other hand, increases were seen in loans for real estate activities (5.7%); transportation and storage (6.6%); construction (4.3%); electricity, gas, steam, and air-conditioning supply (3.5%); human health and social work activities (11%); and accommodation and food services activities (4%).

The BSP said the marginal growth reflected the reopening of more businesses, as the government eased some restrictions.

During the month, household loans also sank by 6.9%, reversing the 4.1% year-on-year growth in December, as credit card loans (-10%) and motor vehicle loans (-5.8%) slumped.

Banks have tightened their credit standards to avoid a pile-up in soured loans. The banking industry’s nonperforming loan ratio stood at 3.61% as of end-December, rising from the 2.08% a year earlier. It reached 17.6% in the aftermath of the Asian Financial Crisis in 2002.

Republic Act No. 11523 or the Financial Institutions Strategic Transfer (FIST) Act which allows FIST corporations to offload bad loans and assets from banks was signed into law last month.

“The FIST passage is a very welcome development moving forward. Its passage is timely and very much needed to help improve bank lending prospects,” Mr. Asuncion said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said double-digit bank lending growth prior to the pandemic was instrumental in driving investments in the country.

“With bank lending now looking entrenched in negative territory, it looks as if the Philippine economy will need to find other sources of growth with capital formation sidelined in the near term,” Mr. Mapa said in a note.

M3 SLOWS FURTHER
As lending contracted, money supply registered its eighth consecutive month of slower growth.

M3 — which is considered as the broadest measure of liquidity in an economy — grew by 9% in January following a 9.5% growth in December, the BSP said in a separate statement on Tuesday. Month on month, M3 rose 0.7%.

In January, domestic claims rose 5% from 4.5% in December.

Net borrowings of the central government expanded 39%, picking up from the 31.1% rise in the prior month.

Meanwhile, net foreign assets increased by 21.8%, easing from the 25.5% expansion in December.

Net foreign assets held by other depository corporations grew by 32.5%, significantly slower than December’s 72.9% print.

“Looking ahead, the overall stance of monetary policy is expected to remain accommodative in order to complement ongoing fiscal and health initiatives to support economic activity and market confidence,” the central bank said.

The BSP in February maintained the overnight reverse repurchase, lending, and deposit facilities at record lows of 2%, 2.5%, and 1.5%, respectively. The Monetary Board will have its next rate-setting meeting on March 25.

“I do not think that the BSP will do anything drastic in the near term. Of course, they are still committed to an easing theme and any reversal of such stance, I think, is still very far from today,” Mr. Asuncion said.

Last year, the BSP slashed rates by 200 basis points to support the virus-stricken economy. However, lending growth remained tepid amid the crisis.

Mr. Diokno has said they will remain accommodative until the economy recovers its pre-pandemic growth trajectory. — Luz Wendy T. Noble

LEDAC identifies 25 priority bills for passage by yearend

THE government is pushing for the passage of 25 priority measures before the end of the year, including new taxes on digital platforms and offshore gaming operators, further liberalization of the retail trade sector and the last two remaining tax reform packages.

The Legislative-Executive Development Advisory Council (LEDAC) Executive Committee approved the common legislative agenda for the 18th Congress during a meeting on Feb. 18, according to the National Economic and Development Authority (NEDA).

“These bills are crucial in ensuring the country’s economic recovery and in regaining our development trajectory that was held back by the COVID-19 pandemic. We will continue working with Congress to move the legislative agenda forward and enact these priority legislations within 2021,” Acting Socioeconomic Planning Secretary and LEDAC Secretariat Head Karl Kendrick T. Chua said in a statement.

The 12 priority bills targeted to be passed by June include the last two packages under the Comprehensive Tax Reform Program — the Real Property Valuation and Assessment Reform Act and Passive Income and Financial Intermediary Taxation Act; and the last measure under the proposed recovery package: Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.

Also included are revenue-generating measures such as amusement taxes on digital platforms and online cockfighting; establishing a tax regime for Philippine Offshore Gaming Operators (POGO); and increasing the share of local government units in the national internal revenue taxes.

Other priority measures include amendments to the Public Service Act, Retail Trade Liberalization Act and Foreign Investments Act, which aim to attract more investments by easing restrictions on foreign ownership on some sectors.

The list also includes the proposed Rural Agricultural and Fisheries Development Financing System Act (Agri-Agra), and creation of a Medical Reserve Corps and a Disease Prevention and Control Authority.

The LEDAC also identified another 13 priority bills to be approved by Congress by December.

These include:

• Creating a Unified System of Separation, Retirement and Pension of the Military and Uniformed Personnel Act;

• National Land Use and Management Act;

• Internet Transactions Act;

• Magna Carta for Barangay Health Workers Act;

• National Housing Development Act;

• Expanded Solo Parents Welfare Act;

• Modernizing the Bureau of Fire Protection (BFP) Act;

Modernizing the Bureau of Immigration Act;

• Amending/Repealing RA 10192, or the Continuing Professional Development Act of 2016; and

• Reviving the Death Penalty by Lethal Injection for Crimes specified under the Comprehensive Dangerous Drugs Act of 2002.

“As we safely reopen our economy and begin our vaccination program this year, we need to enact these bills to create an enabling economic environment and further strengthen our healthcare and fiscal system against future pandemics and other threats,” LEDAC ExCom Chairperson and Executive Secretary Salvador C. Medialdea said in a statement.

Sought for comment, Albay Representative Jose Ma. Clemente S. Salceda, who chairs the House Ways and Means Committee, said all the measures that will go through the committee “will be approved within deadline.”

“It’s also important that we get these reforms completed soon especially since we will be occupied by the budget season again after our March adjournment,” Mr. Salceda said via Viber on Tuesday.

“I am already working closely with the economic managers on the fiscal and economic reforms identified. After all, I am a principal author of almost the whole of the LEDAC list,” he added.

The LEDAC is made up of 20 members that include President Rodrigo R. Duterte, Vice-President Maria Leonor G. Robredo, Mr. Chua, Finance Secretary Carlos G. Dominguez III and three other Cabinet members, four senators, four congressmen and three members from local governments, the youth and private sector.

Economic managers are hoping these reform measures will help drive recovery. The government expects gross domestic product to grow by as much as 7.5% this year after a record 9.5% contraction in 2020. — Beatrice M. Laforga

PEZA renews push for defense economic zones

THE Philippine Economic Zone Authority (PEZA) is aiming to have military reservation areas declared as defense industrial economic zones before the end of the Duterte administration.

PEZA is planning to transform military reservation areas in Fort Bonifacio, Camp Evangelista, and Maguindanao into defense industrial complexes to manufacture military weapons and equipment.

PEZA Director-General Charito B. Plaza in a mobile message on Tuesday said that she is hoping Malacañang will issue the presidential proclamation as soon as possible, or at least before President Rodrigo R. Duterte ends his term by mid-2022.

“They’re now preparing the documents to have the proclamation for the new use as ecozones,” she said.

The Philippine Army, she said in a statement, manages almost 20,000 hectares of military reservation areas, spurring her agency’s plans to develop them into industrial complexes.

“We hope to invite investors and defense industries who will manufacture military aircraft, seacraft, weapons, equipment, software, hardware, uniforms, and all those that the military and police will be needing,” Ms. Plaza said.

All locators at PEZA ecozones receive tax incentives.

“We really need to locally produce our defense requirements and reduce our dependency to foreign suppliers,” Armed Forces of the Philippines Chief of Staff Lt. Gen. Cirilito E. Sobejana said in the same statement. “Of course, we need the technology that other countries have for us to establish [defense industries] here in our country.”

The House of Representatives last month approved on third and final reading House Bill No. 8212 or the Special Defense Economic Zone (SpeDEZ) Act, which establishes a defense industrial zone in Camp Gen. Antonio Luna in Bataan to be run by a new independent government body.

Drawing 197 affirmative votes, the bill saw the six Makabayan bloc members vote against as they casted doubts on the bill’s ability to reduce import dependence and criticized police and military operations against government critics. — Jenina P. Ibañez

Australia to invest P630M in disaster, climate resilience initiative in PHL

THE Australian government is investing around P630 million (A$18 million) in programs aimed at strengthening disaster and climate resilience capacity of local governments in the Philippines over the next six years.

In a statement, the United Nations Development Program (UNDP) in the Philippines said it signed the agreement with the Australian government for the new initiative called Strengthening Institutions and Empowering Localities against Disasters and Climate Change Program (SHIELD).

SHIELD will be implemented in 10 provinces that are most vulnerable to the impacts of disaster and climate change. The areas would be finalized after consultations with the government.

The initiative would also cover Metro Manila, because of its economic significance and vulnerability to earthquakes, and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) since its conflict-affected areas which were said to be “susceptible to increasing disaster and climate impacts.”

“Enhancing resilience remains a high priority for Australia, particularly in the Philippines, which is extremely vulnerable to disasters and the impacts of climate change. Through SHIELD, we will work with governments, private sector, civil society and academic institutions to enhance and sustain community resilience,” Australian Ambassador to the Philippines Steven J. Robinson AO said in a statement.

The UNDP will implement SHIELD together with its consortium partners UN-Habitat, Philippine Business for Social Progress, National Resilience Council, and the Consortium of Bangsamoro Civil Society.

“Through SHIELD, our ultimate aim is for our target communities to be safer and more resilient to the impacts of natural hazards and climate change, taking also into account the lessons brought about by the COVID-19 pandemic. It bears noting that the program also puts importance on gender equality, disability, and social inclusion in the context of resilience-building,” UNDP Philippines Resident Representative Selva Ramachandran said.

The Australian government’s foreign affairs and trade department estimated it had extended a total of $80 million in official development assistance (ODA) to the Philippines between 2020 to 2021. — Angelica Y. Yang

Meralco weighs foray into gas business

MR. PANGILINAN says Atimonan power plant project is a candidate for conversion into a gas facility. — BW FILE PHOTO

MANILA ELECTRIC Co. (Meralco) should look at participating in the gas business, its chairman said, as a separate company that he leads is set to develop an offshore area for its resources.

“We hope that (Service Contract) 72 could get developed as an oil field and once we start developing, we have to connect to Malampaya because we need the facilities to process the raw gas, then pipe it to Batangas,” Meralco Chairman Manuel V. Pangilinan said in a press briefing on Monday.

Mr. Pangilinan, who also chairs PXP Energy Corp., was referring to an area in Recto Bank that was previously banned for exploration but was opened last year by the Energy department. The Malampaya gas-to-power project is the country’s sole source of natural gas.

PXP Energy has operating interests in the West Philippine Sea through SC 72 and SC 75, both offshore blocks northwest of Palawan.

“I think we should get into the gas business,” he said, citing Batangas, Atimonan in Quezon, and Subic in Zambales as possible locations.

He made the comment in response to a question during the briefing about whether the investment of Metro Pacific Investments Corp. (MPIC) in Philippine Coastal Storage & Pipeline Corp. would tie into the investment in the SC 72 area. Mr. Pangilinan is chairman of MPIC.

Rogelio L. Singson, Meralco PowerGen Corp. (MGen) president and chief executive officer, said during the briefing that the company would continue exploring options for Atimonan One Energy, Inc. (A1E), the developer of the country’s first ultra supercritical coal-fired power plant in Quezon province.

“While we continue to explore options for our Atimonan site, we will continue to develop the site [in] preparation for the next opportunity,” he said.

A1E, which has been certified by the Department of Energy as an energy project of national significance, is a wholly owned subsidiary of MGen.

Mr. Pangilinan identified the A1E as a possible site for gas operations.

“If there’s a CSP (competitive selection process) this year… most likely, if Atimonan were available as a site, it certainly is a candidate to convert it into a gas plant. But we’re looking at other sites, whether we should locate in Batangas where all of the existing gas plants are located or should we build a new gas complex either in Atimonan itself in east coast of Luzon, or should we build one in west coast in Zambales or Bataan,” he said.

On Tuesday, Meralco shares at the local bourse improved 0.73% or P2 to finish at P276 apiece.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

URC income up 15% to P11.6B

GOKONGWEI-led Universal Robina Corp. (URC) posted a 15% increase in net income last year to P11.6 billion due in part to lower debt and interest expenses, it said on Tuesday.

In a regulatory filing, the listed food company said the onset of the pandemic early last year hit trading conditions and consumer sentiment, “with contractions seen in several snack food and beverage categories the company competes in.”

“Despite these challenges, URC has gained significant market share and performed ahead of competition,” it added.

Net sales for the year amounted to 133.1 billion, a 1% drop from 2019 on a reported-peso basis but up 1% on a constant currency basis.

URC said operating income rose by 7% to P16 billion, with improved margins. It said the growth was driven by better cost management and favorable input prices. It said these factors offset brand-building investments, among others.

Sales of URC’s branded consumer foods business reached P103.6 billion in 2020, which consists of its domestic and international branded consumer products.

From the figure, the company said its domestic revenues were flat at P61.2 billion, as growth of products such as snacks, noodles, and other filler type categories offset the decline of products such as ready-to-drink beverages and candies.

The company’s international revenues amounted to P41.2 billion, a decline of 5% against 2019 in peso terms, but flat on a local currency basis.

“Growth in Oceania was able to offset the slower recovery of other ASEAN markets,” the company said.

Meanwhile, URC said the sales of its agro-industrial and commodities businesses rose 7% year on year to P29.6 billion.

Its commodities food group grew 21%, with its sugar and renewables unit improving 33% due to the company’s acquisition of Central Azucarera de La Carlota and Roxol Bioenergy Corp. from listed sugar company Roxas Holdings, Inc.

In contrast, sales of the company’s agro-industrial group fell 10% as a result of downsizing in its hog farming operations.

URC President and Chief Executive Officer Irwin C. Lee said the company remains well-positioned for the long term and will push forward to meet customer demands despite the coronavirus disease 2019 (COVID-19) pandemic.

“We are focused on better serving our consumers, our customers, and our communities. Consumption of our products is not likely to dissipate; in fact, the relevance of our categories in consumers’ lives potentially increases as we adjust to changing consumer and shopper trends,” Mr. Lee was quoted as saying.

On Tuesday, URC shares at the stock exchange rose 2.79% or P3.60 to finish at P132.70 each. — Revin Mikhael D. Ochave

How a 10-second video clip sold for $6.6 million

LONDON —  In October 2020, Miami-based art collector Pablo Rodriguez-Fraile spent almost $67,000 on a 10-second video artwork that he could have watched for free online. Last week, he sold it for $6.6 million.

The video by digital artist Beeple, whose real name is Mike Winkelmann, was authenticated by Blockchain, which serves as a digital signature to certify who owns it and that it is the original work.

It’s a new type of digital asset —  known as a non-fungible token (NFT) —  that has exploded in popularity during the pandemic as enthusiasts and investors scramble to spend enormous sums of money on items that only exist online.

Blockchain technology allows the items to be publicly authenticated as one-of-a-kind, unlike traditional online objects which can be endlessly reproduced.

“You can go in the Louvre and take a picture of the Mona Lisa and you can have it there, but it doesn’t have any value because it doesn’t have the provenance or the history of the work,” said Mr. Rodriguez-Fraile, saying  he first bought Beeple’s piece because of his knowledge of the US-based artist’s work.

“The reality here is that this is very, very valuable because of who is behind it.”

“Non-fungible” refers to items that cannot be exchanged on a like-for-like basis, as each one is unique —  in contrast to “fungible” assets like dollars, stocks or bars of gold.

Examples of NFTs range from digital artworks and sports cards to pieces of land in virtual environments or exclusive use of a cryptocurrency wallet name, akin to the scramble for domain names in the early days of the internet.

The computer-generated video sold by Mr. Rodriguez-Fraile shows what appears to be a giant Donald Trump collapsed on the ground, his body covered in slogans, in an otherwise idyllic setting.

OpenSea, a marketplace for NFTs, said it has seen monthly sales volume grow to $86.3 million so far in February, as of Friday, from $8 million in January, citing blockchain data. Monthly sales were at $1.5 million a year ago.

“If you spend 10 hours a day on the computer, or eight hours a day in the digital realm, then art in the digital realm makes tons of sense —  because it is the world,” said OpenSea’s co-founder Alex Atallah.

Investors caution, however, that while big money is flowing into NFTs, the market could represent a price bubble.

Like many new niche investment areas, there is the risk of major losses if the hype dies down, while there could be prime opportunities for fraudsters in a market where many participants operate under pseudonyms.

CHRISTIE’S EMBRACES TERRIFYING
Nonetheless, auction house Christie’s has just launched its first-ever sale of digital art — a collage of 5,000 pictures, also by Beeple — which exists solely as an NFT.

Bids for the work have hit $3 million, with the sale due to close on Mar. 11.

“We are in a very unknown territory. In the first 10 minutes of bidding we had more than a hundred bids from 21 bidders and we were at a million dollars,” said Noah Davis, specialist in post-war and contemporary art at Christie’s.

His division has never seen an online-only sale top $1 million before, he added.

In a decision that could help push cryptocurrencies further into the mainstream, the auction house that was founded in 1766 will accept payment in the digital coin Ether as well as traditional money.

“I think that this moment was inevitable and whenever institutions of any kind try to resist inevitability, it does not work out very well,” Mr. Davis said of accepting crypto payment. “And so the best thing you can do is embrace the terrifying.”

$208K FOR LEBRON JAMES SLAM DUNK
NFTs could be benefiting from the hype around cryptocurrencies and blockchain, as well as virtual reality’s potential to create online worlds. The growing interest also coincides with a surge in online retail trading during lockdowns.

The start of the rush for NFTs has been linked with the launch of the US National Basketball Association’s (NBA) Top Shot website, which allows users to buy and trade NFTs in the form of video highlights of games.

Five months after its launch, the platform says it has over 100,000 buyers and nearly $250 million in sales. The majority of sales take place in the site’s peer-to-peer marketplace, with the NBA getting a royalty on every sale.

The volume is rapidly rising: February has seen sales totalling $198 million as of Friday, heading for a fivefold increase from January’s $44 million, Top Shot said.

Each collectible has “a unique serial number with guaranteed scarcity and protected ownership guaranteed by blockchain” the site says. “When you own #23/49 of a legendary LeBron James dunk, you’re the only person in the world who does.”

The biggest transaction to date was on Feb. 22, when a user paid $208,000 for a video of a LeBron James slam dunk.

One major NFT enthusiast, who goes by the pseudonym “Pranksy” told Reuters he had invested $600 in an early NFT project in 2017 and has now built that up to a portfolio “worth seven figures” in NFTs and cryptocurrencies. He asked to be anonymous to protect his family’s privacy.

Pranksy said he has now spent more than $1 million on Top Shot and made about $4.7 million by reselling purchases. Reuters was unable to independently verify the figures, although NBA Top Shot confirmed he is among the site’s biggest buyers.

“I see them as investments really, much like any other collectibles and NFTs that currently exist,” he said in an interview conducted via Twitter. “I’d never watched a game of basketball before Top Shot launched.”

EMERGENCE OF THE METAVERSE
Nate Hart, a Nashville-based NFT investor who, like Pranksy, has been involved in the market since it first developed in 2017, has seen some popular digital art NFTs such as Autoglyphs and CryptoPunk surge in value.

Mr. Hart said he bought a LeBron James Cosmic NFT on NBA Top Shot for $40,000 in January, then sold it for $125,000 in February. “We’re in awe, it just doesn’t feel real. We were in the right place, right time, got lucky, but we also took that risk,” he said.

“The space has been growing a lot. I do think that this is a little bit of a bubble. It is a bubble,” he

said. “It’s hard to predict what the top will be.”

Andrew Steinwold, who launched a $6 million dollar NFT investment fund in January, warned that the majority of NFTs could become worthless in future.

But, like many backers, he is confident that some items will retain their value and that NFTs represent the future of digital ownership, paving the way for a world in which people live, socialize, and make money in virtual environments.

“We’re spending a lot of our time digitally, always online, always plugged in. It makes sense to now add property rights to the mix and suddenly we have the emergence of the metaverse,” he said.

“I think it’s going to reach into the trillions of dollars one day.” — Reuters

Robinsons Land ends 2020 with P5.3-B profit

ROBINSONS LAND Corp. closed 2020 with a net income of P5.26 billion, the property developer said on Tuesday without disclosing a comparative figure for the year when it “exhibited resilience and agility.”

“Amid the challenges of 2020, we adopted new ways of working and embraced a mind-set of innovation to continue serving our customers,” Robinsons Land President and Chief Executive Officer Frederick D. Go said in a statement.

The real estate investment arm of JG Summit Holdings, Inc. previously disclosed its 2019 net income at P8.69 billion.

In Tuesday’s disclosure to the stock exchange, the company placed its consolidated revenues at P25.40 billion, lower by 17% compared with the level in 2019.

“We capitalized on new opportunities for growth and accelerated our digital transformation initiatives to become more agile,” Mr. Go said.

In the fourth quarter last year, it said net income reached P863 million, up 20% from the third quarter to post “improvements in key operating indicators across its business units.” No fourth-quarter 2019 profit number was given.

For full-year 2020, Robinsons Land said its earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to P13.68 billion.

Its development portfolio increased by 30% to P12.26 to partly offset the 38% decline in its investment portfolio to P13.15 billion.

Up to P22.15 billion in capital expenditure was used for land acquisitions, development of malls, offices, warehouse facilities, and hotels for the year. Some funds were also allocated for the construction of residential projects.

The company’s commercial centers division maintained the improvement in gross leasable area in the fourth quarter. The number of tenants and foot traffic also improved.

Revenues from the company’s commercial centers amounted to P5.96 billion in 2020, while its EBITDA totaled P4.11 billion.

“[Robinsons Land] is optimistic that the mall business will continue to rebound as quarantine restrictions ease and vaccinations start,” the company said.

Meanwhile, its office buildings division saw a 10% increase in revenues to P4.1 billion. The division’s EBITDA rose by 11% to P5.08 billion, while its EBIT rose 12% to P4.11 billion.

Robinsons Land said it would continue to expand its leasable space. It also aims to grow its portfolio of flexible workspaces under its workable brand, which has branches in Pasig, Taguig, and Quezon City.

Revenues of its residential division grew by 33% to P12.13 billion. Its EBITDA spiked by 40% to P4.17 billion, while the division’s EBIT amounted to P4.07 billion, soaring by 41%.

Three new projects were launched in early 2020, costing the company some P10 billion. The Sapphire Bloc South was opened in Ortigas Center, as well as the Sierra Valley Gardens Buildings 1 and 2 located in Cainta, Rizal.

Sales from its residential division totaled P7.29 billion.

In China, the company sold out all of its residential condominium units and townhouses in its Chengdu Ban Bian Jie project. Robinsons Land said it would recognize revenues from the project’s first phase after its handover this year. The second phase of the project is under construction.

For the company’s industrial and integrated developments division, revenues grew by 90% to P262 million, which was mainly driven by its two warehouse facilities.

Revenues for Robinsons Land’s hotels and resorts division, meanwhile, grew by 16% in the fourth quarter, allowing the company to close the year with revenues totaling P1.08 billion.

“Heading into 2021, we expect to sustain the gradual recovery of our businesses as quarantine restrictions ease and consumer confidence starts to bounce back. We will continue to provide relevant real estate solutions, while prioritizing health and safety,” Mr. Go said.

This year, the company plans to put its mature office assets into a real estate investment trust (REIT). It currently has 25 office buildings with a net leasable area of over 600,000 square meters. It aims to secure regulatory approval to be listed as an office REIT later this year.

Robinsons Land shares at the stock exchange declined by 0.71% on Tuesday, closing at P19.68 apiece. — Keren Concepcion G. Valmonte

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