Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 8604

Pandemic threatens to burst Philippines’ online gaming bubble

With the twin global gaming centers of Macau and Las Vegas bleeding millions of dollars daily as casinos stand empty, the much smaller online gaming industry in the Philippines was supposed to benefit as gamblers logged into live-streamed bets to scratch the itch.

Instead, the $8 billion gaming industry is also fighting for survival, with stark consequences for the country’s property and retail sectors.

After being shuttered for months as they were considered “unessential” during the long lockdown to contain the virus, Manila’s online casinos can still only partially operate. The restrictions have been weighing on their operations, said Ben Lee, a Macau-based managing partner at Asian gaming consultancy IGamiX.

This could be the tipping point for the country’s gaming industry, which has faced waves of pressure including the threat of higher taxes, lawmakers’ calls for an outright gaming ban and divisions over ugly accusations its largely migrant workforce brought crime to the country, and also worsened the virus outbreak.

CLOSING DOWN

Already, two of the nation’s 60 licensed operators in what had been a robust industry have shuttered their doors since the pandemic began.

“There are more to come. We’re just convincing them to stay,” said Jose Tria, who works for the nation’s gambling regulator as assistant vice-president for offshore gaming. Only 14 of the operators have resumed operations; the rest are in wait-and-see mode.

If the industry collapses, it could leave empty as much as 3.4 million square meters of combined office and residential space as the industry’s migrant workers head home, according to Leechiu Property Consultants Inc. That’s more than 600 football fields.

“They will just leave if nobody wants them,” said David Leechiu, chief executive officer at the property services company, which has one of the biggest shares of online gambling clients among brokers in the Philippines. Since the lockdown, operators have canceled expansion plans, he said.

After President Rodrigo Duterte began giving out casino licenses in 2016, more than 300,000 foreign workers—many of them Chinese nationals—have come to the metropolitan Manila area to work. The industry is propped up by demand from mostly Chinese punters placing bets from thousands of miles away, as gambling is banned in mainland China.

The migrants have a range of jobs including marketing, answering customer queries, and processing payments for clients who place online bets on live-streamed games of baccarat, Dragon Tiger and Fantan.

Workers in the industry account for as much as 1% of the nation’s consumption spending, which has helped drive sales of retailers such as Hermes-seller SSI Group Inc., said Nicky Franco, vice president for research at Abacus Securities Corp. in Manila.

Yet some lawmakers are determined to shut down the industry amid accusations of money laundering. In May, a bill was filed in the legislature seeking to ban online gambling operations because they are “making a mockery of our laws, peace and order.” A group of licensed online gambling operators didn’t reply to requests for comment on the legislation.

BOOM, BUST

If the industry in the Philippines doesn’t survive, possible beneficiaries include gaming companies in Vietnam, where coronavirus cases have been largely contained, and Myanmar, said IGamiX’s Lee. The two countries “are catching up very quickly” in terms of Internet links to China and power supply—two necessary criteria for online gaming to flourish.

Meanwhile, Sihanoukville in Cambodia serves as a cautionary tale of the boom-and-bust cycle in online gaming. Once a backpacker’s stop, the coastal town became an online-casino hub. But lockdowns and a ban on the industry that came into effect on Jan. 1 left it filled with unfinished condominiums and shuttered businesses.

In San Antonio Village, Makati City in the Philippine capital, passenger vans ferrying online casino workers that used to choke the roads have become a rarity. Most of the industry’s staff are cooped up in high-rise apartments and are closely watching to see what happens to the industry—and their jobs.

Property broker Leechiu is watching along with them. “To recover from the economic damage of COVID-19, we need as much economic activity as we can get,” he said. — Bloomberg

Out with the old: How to market your business during COVID-19

by Mariel Alison L. Aguinaldo

The recession triggered by the COVID-19 pandemic has caused a shift among consumers. Changes in purchasing behavior have had companies scrambling to retain and recapture their loyal customers.

For Cris Tan, marketing director of e-retailer Zalora Philippines, the first step is to think out of the box and acknowledge that the typical market segmentations may not be applicable during this period. “It’s very important to review or try to understand customer psychographics, [which is] basically their emotional reaction to the economic environment,” she said during a recent webinar.

But where does a marketer start amid all of these changes? Citing findings by the Harvard Business Review, Ms. Tan shared three steps that can you take to put your initiatives on the right track.

1.  Identify which category your product falls under.

Different products and services appeal in different ways across segments. Therefore, it’s key to first identify which category yours falls under.

•  Essentials are deemed necessary for survival or perceived as central to well-being, such as food and hygienic products.

•  Treats are indulgences whose immediate purchase are considered justifiable by the consumer, such as chocolate, ice cream, and more affordable beauty products like lipstick.

•  Postponables are desired products and services that can be reasonably put-off for the future, such as salon treatments.

•  Expendables are perceived as unnecessary and unjustifiable at this time, such as luxury products.

2. Familiarize yourself with the new market segments.

Now that you know your product category and its characteristics, it’s also vital to understand who your consumers are and how they are behaving during this particular time.

•  Slam-on-the-brakes consumers have been hit hardest by the pandemic in terms of finances. While they’re usually from low-income families, anxious higher-income consumers may fall under this segment, especially if health or income circumstances take a turn for the worst.

•  The pained-but-patient segment is the largest among the four, composed of consumers who were unscathed by unemployment. While they’re resilient and optimistic in the long-run, they have already started to economize and will migrate further to the slam-on-the-brakes segment as times get tougher.

•  The comfortably well-off are consumers who either belong to the top 5% income bracket or are a little less wealthy but are secure in the stability of their finances. They consume almost as much as they did prior to the pandemic, though they may become a little more selective. They’re also more conscious now with conspicuous purchases, understanding the need for sensitivity given the current situation.

•  The live-for-today segment is typically young. They’re not very concerned with savings and continue with their usual purchases. Since they prefer to spend on experience rather than items, they’re also more likely to rent rather than to own.

3. Appeal to your consumers through the right points.

With both puzzle pieces in your hands, it’s time to see how your product category can fit together with the different segments.

While essentials may seem relatively stable even during the pandemic, it’s still important to emphasize price particularly for the slam-on-the-brakes and pained-but-patient segments. This can be done through tactics like bundling and offering lower-priced product alternatives. For the comfortably well-off and live-for-today segments, continue raising awareness on your product and—especially for the latter—reminding them that they cannot live without it.

“It will be easy to position [treats] as a sort of reward for customers and as morale reserves, especially during this period,” said Ms. Tan. Consider shrinking sizes for slam-on-the-brakes consumers and offering a rewards or loyalty system for the pained-but-patient. as for the comfortably well-off and live-for-today segments, advertise your product as something that they deserve because of success and an opportunity to seize the moment, respectively.

For postponables, it’s best to get consumers to start investing in them already. Try offering layaway plans and low-cost financing options, such as installment payment plans, for the slam-on-the-brakes and pained-but-patient segments. Communicating savings and quality-of-life benefits may help for comfortably well-off and live-for-today consumers. Across all segments, advanced booking appointments for services can help secure commitment.

Since expendables are mainly frowned upon during this time, enable discrete purchasing for your comfortably well-off and live-for-today segments. And while it may seem silly to continue advertising expendables to slam-on-the-brakes and pained-but-patient consumers, continuous awareness advertising will help them recall your product once the pandemic is over.

Philippine Treasury is Asia’s pioneer in leveraging distributed ledger technology (blockchain) for treasury bonds

The Philippine Bureau of the Treasury (BTr), together with Union Bank of the Philippines (UnionBank) and Philippine Digital Asset Exchange (PDAX) – a Bangko Sentral ng Pilipinas (BSP) licensed entity – is the first in Asia to launch an app for the distribution of government bonds enabled by Distributed Ledger Technology (DLT).

National Treasurer Rosalia V. De Leon said, “The launch of Bonds.PH paves the way for all Filipinos, particularly the unbanked, to easily and affordably invest in the BTr’s newest retail treasury bond, RTB-24. The mobile app presents a compelling opportunity for all to invest and help the Republic raise funds for economic recovery and COVID-19 response.”

Bonds.PH makes bond investing easy. It’s completely digital and available 24/7. Filipinos can invest in retail treasury bonds by downloading the app and pay, for as low as PHP 5,000.00, using InstaPay, GCash, Paymaya, and digital as well as over-the-counter at UnionBank.

Treasurer De Leon, Finance Secretary Carlos Dominguez III and UnionBank Vice Chairman Justo Ortiz onsite, together with  BSP Governor Benjamin Diokno and National Economic and Development Authority (NEDA) Secretary Karl Kendrick Chua virtually,  did a demo of the Bonds.PH app at the official launch held yesterday.

“This is the first retail treasury bond issuance to leverage on blockchain technology – in Asia, and likely the world,” said Edwin R. Bautista, UnionBank President & CEO. “The Philippines is ready to lead the way into the future and tech up the nation with innovative, inclusive opportunities, powered by emerging technologies, for the benefit of all Filipinos,” added Bautista.

Bonds.PH is blockchain-enabled as transactions are recorded in a DLT-based registry in addition to the existing NROSS system. DLT enables immutable and tamper-proof record-keeping as it is recorded on the blockchain.

According to Nichel Gaba, Founder & CEO of PDAX – a fintech investment of UBX (a UnionBank subsidiary), “DLT or blockchain technology is governance-by-design with its cryptography and programmable smart contracts. This advantage allows the blockchain not only to preserve truth, but also to automate payments, enforce rules, and facilitate complex transactions via smart contracts at little to no cost.”

As such, DLT reduces manual verification and simplifies reconciliation bringing down processing time and costs. This is why the BTr sanctioned the pioneering effort so that through the pilot it can determine if leveraging DLT makes retail treasury bond distribution to the unbanked feasible, secure and economically viable.

The Monetary Authority of Singapore (MAS) commended the ground-breaking endeavor, “I want to congratulate the Philippine Bureau of the Treasury (BTr) for this important milestone,” said MAS Chief FinTech Officer Sopnendu Mohanty. He added that, “2020 will be the year of commercialization of blockchain technology in the ASEAN region, and BTr’s efforts to build a DLT registry for bond issuance accelerates the success of the most exciting technology of our time. The blockchain community in Singapore will work together with the Philippines to share learnings, open-source resources and also facilitate connecting corresponding nodes to integrate market infrastructure for transparency and interoperability.”

The Philippine Securities and Exchange Commission (SEC) likewise offered its support. “With our mandate to facilitate financial inclusion while maintaining investor protection, we support this initiative, which makes use of Distributed Ledger Technology,” said SEC Commissioner Ephyro Luis B. Amatong. “We look forward to the results from this initiative, which will contribute greatly to future DLT use cases for capital markets,” he added.

Meanwhile, the BSP lauded the initiative for its impact on inclusive prosperity, “Given our advocacy to accelerate the digital delivery of financial services while deepening financial inclusion, we view Bonds.PH as a welcome addition to the expanding suite of available financial products serving wide market segments via innovative delivery channels and bridging the financially excluded,” said BSP Governor Benjamin Diokno. “From the basic easing of the public’s access to transaction accounts to now this offering of retail treasury bonds to the masses in a simplified yet secure manner, shows the remarkable progress of our shared financial inclusion agenda. This surely marks the transition of blockchain technology from its buzzword status to a feasible, production grade solution capable of democratizing access to digital financial services,” said the Central Bank Chief.

“The public can always count on the BSP to remain supportive of responsible digital financial innovations,” he added.

UnionBank Vice-Chairman Ortiz, who also serves as Chairman of the Distributed Ledger Technology Association of the Philippines (DLTAP) and the Philippine Payments Management, Inc. (PPMI) added that, “Democratizing investment through digital channels and Distributed Ledger Technology allows all Filipinos to contribute to and accrue the benefits of nation building. Every “Aling Belen” and “Mang Juan” can save and invest while also helping the national government!

Download Bonds.PH now from the Apple App Store and Google Play Store and invest in our country!”

Nationwide round-up

Over 300,000 private school students move to public system

MORE THAN 300,000 private school students are moving to the public education system when the new academic year starts in August, the Department of Education reported on Thursday. Education Undersecretary Jesus Lorenzo R. Mateo said 305,000 primary and secondary students who were previously enrolled in private institutions have registered in public schools due mainly to the economic impact of the coronavirus crisis. “That’s true…there are 305,000 students from private schools who moved to public schools…the usual reason was because of the effect of the pandemic,” he said in a briefing. Over 20 million students from kindergarten to senior high school levels enrolled for the school year 2020-2021, with over 19 million in public schools. Classes begin on Aug. 24. For colleges and universities, Commission on Higher Education Chairman Prospero E. De Vera said several private institutions are closing due to the low number of enrollees for this school year. He said aside from financial constraints, parents fear the possibility of their children contracting the virus if they go back to school. Mr. De Vera said they are not crafting guidelines for school closures. — Gillian M. Cortez

66 more OFW remains to be brought home Sunday

THE REMAINS of 66 more overseas Filipino workers from Saudi Arabia will be brought home Sunday, the Department of Labor and Employment (DoLE) said. In a briefing on Thursday, Labor Assistant Secretary Dominique R. Tutay said there is a special flight scheduled to arrive on July 19 carrying the deceased Filipinos. Last July 10, an initial batch of 49 remains from Saudi Arabia arrived, including 19 who died from the coronavirus. There were over 200 bodies of overseas workers that needed to be transported from the Middle Eastern country, according to Labor Secretary Silvestre H. Bello III, but some have already been arranged by their respective families. — Gillian M. Cortez

COVID-19 positive police personnel now almost 1,300

THE PHILIPPINE National Police has recorded another surge in coronavirus disease 2019 (COVID-19) infections among its personnel with 59 new cases as of Wednesday evening. This brings the total to 1,298, with 529 recoveries and nine deaths. Police chief Gen. Archie F. Gamboa on Thursday said they are preparing to build more quarantine and testing facilities. “PNP is now preparing to establish more quarantine centers and testing hubs as we improve our healthcare support mechanism for our police frontliners and personnel who are exposed to the risk of contamination while fulfilling their duties,” he said in a statement. Of the new cases, 44 are assigned in Metro Manila, six from Central Visayas, three each from the CALABARZON police and Highway Patrol Group, two from the Davao police, and one from the Communication and Electronics Service. At least 2,027 others are under monitoring after showing symptoms or interacted with COVID-19 patients. Aside from manning checkpoints, the PNP is managing seven government quarantine and testing facilities, including the isolation center at SM Mall of Asia Arena, PhilSports Arena, and the Philippine International Convention Center. — Emmanuel Tupas/PHILSTAR

Palace says nothing new in VP’s COVID-19 response recommendations

THE PRESIDENTIAL Palace on Thursday said recommendations submitted by Vice-President Leonor G. Robredo on response measures for the coronavirus disease 2019 (COVID-19) crisis are already being done by the national government. Palace Spokesperson Harry L. Roque said in a briefing the vice-president submitted a letter earlier this week on how the government can improve efforts to combat the COVID-19 outbreak. “Ang mga rekomendasyon po niya ay may kinalaman sa (Her recommendations relate to) reporting and keeping the public informed, sa budget utilization, sa transportation concerns, sa restarting the economy, edukasyon at sa (and the) composition ng IATF (inter-agency task force),” he said. Ms. Robredo, who belongs to the opposition party, said the administration seems to lack urgency in dealing with the crisis as COVID-19 cases continue to increase. She added that the government was “complacent” from the start. — Gillian M. Cortez

Investors swamp sale of 5-year RTBs

THE government sold an initial P192.71 billion in five-year retail Treasury bonds (RTBs) at a coupon of 2.625%, amid strong demand from investors.

At the rate-setting auction on Thursday, the Bureau of the Treasury (BTr) said it awarded P192.71 billion worth of RTBs, with total bids reaching P278.572 billion on the first day of the offering.

The demand was nine times more than the initial offer of P30 billion, prompting the BTr to upsize the offer for RTB-24 due 2025.

The retail bonds fetched a coupon of 2.625%, 362.5 basis points (bps) lower than the 6.25% yield when the five-year RTBs due 2024 were sold in March 2019. But this was still higher than the 2.376% rate for the tenor in the secondary market on Thursday.

This is the second time the BTr offered retail bonds this year and 24th overall. In February, the government raised a record P310.8 billion from three-year RTBs with a rate of 4.375%.

The five-year fixed-rate bonds will be offered until Aug. 7, unless the Treasury decides to close it earlier.

Following the auction, National Treasurer Rosalia V. de Leon said they will not set a target volume.

“There is already a good pick up with a 2.625% coupon and results in real positive yield. Online ordering platforms and mobile apps will allow us to reach far and wide small investors in this environment of safe distancing and quarantines,” Ms. De Leon told reporters via Viber.

Aside from participating banks, the BTr also opened more online channels to offer the RTBs such as the online ordering facility on its website and the new Bonds.ph mobile application.

Ms. De Leon also clarified the awarded bonds were all “new money,” and no swap offers were accepted yet for the exchange offer program wherein bondholders of the RTB 10-01, FXTN 05-73, RTB 10-02 or FXTN 07-57, can swap the old papers for the new RTB.

Meanwhile, a bond trader said the huge demand for RTBs was due to the strong liquidity in the market.

“(The rates are) attractive enough for investors, BTr got the volume they need and (has a) chance to do more. That was a great auction, attractive for retail clients,” the trader added.

RTBs, which were offered in denominations of P5,000, are deemed as low-risk instruments with relatively high yields.

The retail bonds will be issued on Aug. 12 and mature on Aug. 12, 2025. The papers will be listed on the Philippine Dealing and Exchange Corp. (PDEx).

In a statement on Thursday, Land Bank of the Philippines (LANDBANK) said the proceeds of the fundraising activity will support the National Government’s efforts to respond to the coronavirus disease 2019 (COVID-19) pandemic.

“LANDBANK’s participation in the RTB-24 or Progreso Bonds offering is a testament to the Bank’s unwavering support to the National Government to raise funds for its socioeconomic development initiatives. Rest assured that the Bank will do its part to promote and encourage retail investors to invest in the Progreso Bonds,” LANDBANK President and CEO Cecilia C. Borromeo was quoted as saying.

LANDBANK and the Development Bank of the Philippines (DBP) acted as the joint lead issue managers for the transaction.

The joint issue managers were LANDBANK, DBP, BDO Capital and Investment Corp., Bank of the Philippine Islands, Capital Corp., China Bank Capital, First Metro Investment Corp., Philippine National Bank Capital and Investment Corp., Rizal Commercial Banking Capital Corp., SB Capital Corp., and UnionBank. — Beatrice M. Laforga

Moody’s keeps credit rating for Philippines

MOODY’S Investors Service on Thursday kept its Baa2 rating with a stable outlook for the Philippines, saying the country’s strong fiscal position in recent years will help shield it from the impact of the coronavirus crisis.

In a statement, the credit rater said it expects a pause in policy reforms amid the current crisis, which could also put on hold improvements in the country’s credit profile that are needed to secure a rating upgrade to “A.”

“The rating affirmation and stable outlook reflect Moody’s view that the fortification of the government’s fiscal position in recent years provides a buffer against a rise in public indebtedness due to shocks such as the ongoing global coronavirus outbreak,” Moody’s said.

Moody’s has maintained its Baa2 rating for the Philippines since December 2014.

Meanwhile, “stable” outlook suggests the rating is likely to be maintained over the next six months to two years.

Moody’s said one factor that could lead to an upgrade of the Philippine sovereign rating is an evident, more rapid reversal of the deterioration in fiscal and debt metrics caused by the pandemic.

“This would likely entail a sustained restoration of economic growth to rates similar to those recorded prior to the outbreak. Together, a resumption of sustained high growth and rapid restoration of fiscal strength would denote particularly effective macroeconomic and fiscal policy,” it said.

On the other hand, Moody’s flagged the “emergence of macroeconomic instability that would lead to a greater deterioration in fiscal and government debt metrics and/or an erosion of the country’s external payments position.”

Amid the global coronavirus crisis, Moody’s has already downgraded the credit rating of 20 sovereigns as of end-June. It has likewise assigned a “negative” outlook on the ratings of 19 sovereigns and has put 12 others under review for possible debt rating downgrade.

Earlier this month, the debt watcher gave a -4.5% outlook for the Philippine economy in 2020 given the worsening fallout from the virus. This is much lower than the -2% it gave in May and the baseline 6.2% growth estimate last year.

The latest 6.5% growth outlook for 2021 is a tad faster than the previous 6.4% penciled.

The country’s gross domestic product has already dropped by 0.2% in the first quarter of the year due to the virus outbreak as well as the Taal Volcano eruption.

Economic officials from the government said Moody’s affirmation of the country’s rating was a welcome development during the crisis.

“What separates our country from most virus-hit economies is that we were caught up in this global health crisis with ample buffers to cushion its fallout while keeping our debt level manageable and without compromising our fiscal health,” Finance Secretary Carlos G. Dominguez III was quoted as saying in a statement from the Investor Relations Office.

“While the economy will contract this year, its prospects for a strong rebound next year and future years are bright,” Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said.

Moody’s said the bleak economic backdrop and political considerations will likely affect structural reforms meant to build on recent gains on improving investment climate and assisting in fiscal consolidation.

“So long as the coronavirus outbreak remains unresolved, lawmakers will likely retain their focus on facilitating the near-term recovery from the pandemic shock,” it said.

Moreover, the global debt watcher said the impending general election in 2022 leaves the government a “comparatively short window to pursue its legislative agenda.”

In May, S&P Global Ratings also affirmed its “BBB+” long-term credit rating with a stable outlook for the Philippines while Fitch Ratings kept the country’s credit rating at “BBB” but downgraded its outlook to “stable.” — Luz Wendy T. Noble

BusinessWorld tackles leadership and resilience in online anniversary special

BUSINESSWORLD kicks off on Monday, July 20, a week of daily online interviews with global experts and industry leaders aimed at providing viewers with tips to survive and perform amid economic shocks which the pandemic has unleashed.

Titled: “A Time for Leadership and Resilience,” the BusinessWorld One-on-One online interview series forms part of the publication’s multimedia report, themed: “The Road to Recovery,” to mark its 33rd anniversary.

The multimedia report reflects BusinessWorld’s commitment to maximize all available content delivery channels, especially amid the pandemic.

The interviews will be posted on BusinessWorld’s and The Philippine STAR’s Facebook pages at 11 a.m. from July 20 to July 24.

Leaders of businesses and other organizations in the Philippines have been grappling with the impact of what is said to be one of the world’s longest lockdowns, an expected recession and one of the biggest daily increases in infections in Southeast Asia, seeking playbooks to help them navigate a fast-changing landscape of challenges.

The series begins on Monday and Tuesday with Joo-Ok Lee, head of Asia-Pacific regional agenda at the World Economic Forum, and Emmanuel P. Maceda, worldwide managing partner of Bain & Company, respectively, who will discuss their observations on what countries, companies and organizations have been undergoing since the year began; what conditions could look like in the months ahead; as well as what is needed to not only survive but also to emerge from the crisis in a better competitive position. Mr. Lee is in charge of the Forum’s collaboration with governments and public sector stakeholders on various issues in Asia and the Pacific, as well as organizing the Forum’s flagship meeting in Southeast Asia. Mr. Maceda, who assumed his post two years ago as Bain’s first Asian global chief, has spent decades working with large corporate transformations involving strategy, growth, cost reduction, performance improvement and boosting organizational effectiveness.

These discussions will be followed by the view from the ground, as three Philippine business leaders discuss how their companies have been adapting to fast-changing operating conditions.

Manuel V. Pangilinan — chairman of infrastructure-focused Metro Pacific Investments Corp. and PLDT, Inc., where he is also president and chief executive officer (CEO), as well as managing director and CEO of Hong Kong-based First Pacific Company Ltd. — will zero in on specific fields where his group sees opportunities to grow while addressing the development gaps laid bare by the current economic crisis.

Nina D. Aguas, executive chairman of The Insular Life Assurance Company Ltd. (InLife), will discuss how the pandemic and its economic shocks have affected the insurance industry and how her company has moved to ensure resilience while continuing to serve its market.

Ernest L. Cu, CEO of Globe Telecom, Inc., will discuss how the pandemic has affected the telco and its plans and how it is moving to build resilience while meeting the expected increased demand for digital services under the “new normal.”

BusinessWorld One-On-One online interview series is made possible by BDO Unibank, Inc.; Manila Electric Co.; PLDT; Smart Communications, Inc.; Globe and San Miguel Corp. in partnership with Ayala Corp.; Ayala Land, Inc.; InLife; J&T Express; Metro Pacific; MG Philippines; Mitsubishi Motors Philippines Corp.’s Strada Athlete; PayMaya Philippines, Inc.; SM Investments Corp.; UDENNA Corp. and Vista Land & Lifescapes, Inc.; with the support of the Management Association of the Philippines, Asia Society Philippines, Olern and The Philippine STAR.

Education, agriculture budgets suffer deeper cuts

THE government continued to slash the budgets of several departments, including education and agriculture, with funds being redirected for its coronavirus disease 2019 (COVID-19) response.

Data from the Budget department as of June showed budget support for government-owned and controlled corporations (GOCCs) was reduced by another P5.568 billion, bringing its total program down to P185.334 billion. In May, the allocation for GOCCs was cut by P5.084 billion.

Out of 35 line departments of the National Government, 22 saw budget cuts as of June, while four agencies received higher allocations as main implementing agencies of programs for COVID-19 response.

The Education department’s budget was trimmed by P2.323 billion to P497.17 billion, bringing the total reduction to P24.18 billion so far.

The Agriculture department suffered a P2.17 billion cut in June or P13.87 billion year to date, to bring its budget to P48.42 billion.

Funds for state universities and colleges were reduced by P1.718 billion in June to stand at P64.758 billion as of June. Cumulative budget cuts for state universities and colleges (SUCs) reached P8.958 billion this year.

Republic Act. No. 11469 or the Bayanihan to Heal as One Act authorized the President to reallocate funds for COVID-19 response. Based on official documents, the Department of Budget and Management (DBM) adjusted the budget allocations for the third time this year.

The Offices of the President (OP) and Vice-President (OVP) were not spared from budget reductions. The OP’s budget was cut by P80.092 million to P8.173 billion, while the OVP’s budget was trimmed by P12.25 million to P687.63 million.

The Energy department’s budget was slashed for the first time, with its allocation reduced by P140.43 million to P1.289 billion.

The allotment for the Department of Public Works and Highways was further trimmed by P175 million last month, bringing the total reduction to P123.113 billion as of June. Its budget stands at P457.773 billion for the year.

Agencies whose budgets were further reduced last month were: other executive offices (by P658 million); the Department of Environment and Natural Resources (by P650 million); Department of Foreign Affairs (by P425 million); the Department of the Interior and Local Government (by P264 million); and the Department of National Defense (by P226 million).

Meanwhile, the Departments of Health (DoH), Labor and Employment (DoLE), Finance (DoF) and Social Welfare and Development (DSWD) had their budgets increased by P1.879 billion, P5.59 billion, P35.257 billion, and P165.198 billion, respectively, in June.

The DoF is the main implementing agency for the wage subsidy program, while the DSWD implemented the emergency cash aid program. DoLE rolled out various subsidy programs for displaced workers.

Leonardo A. Lanzona, a professor at Ateneo de Manila University’s Economics Department, said the government’s top priority is to address the public health crisis as the economy’s recovery hinges on it, while ensuring the limited funds will be redirected to programs that have the most impact.

“Having money is not enough. What matters most is having the right strategy. We can try to intensify the testing and tracing for instance, but if, in the end, this only leads to backlogs in the data, the effort is wasted. We need to know where the funds are going to create the greatest impact. In that case, we might not have to reduce the budget of the key sectors like education and agriculture,” he said.

As of June, 87% or P3.567 trillion have already been released by the government out of its P4.1-trillion spending plan for this year. — Beatrice M. Laforga

Cinemalaya goes online this year

FIVE YEARS ago, the Cinemalaya Independent Film Festival showcased only short films for its main competition as the festival started transitioning to longer production schedules for full-length features, bigger grants, and a unified main competition. This year is another transition year as the festival will again be showing short films for its main competition, and will be holding, for the first time, an online-only Cinemalaya experience as the pandemic halted any thought of conducting what is considered the country’s premiere independent film festival on-site at the Cultural Center of the Philippines (CCP).

“I think this will only enhance the work that we’re doing. In fact, we were thinking about [going online] a few years back… I think people’s viewing behaviors have changed with what’s going on, so hopefully this can be translated into continued if not increased viewership in Cinemalaya,” Chris B. Millado, artistic director of the CCP and festival director of Cinemalaya, said during a digital conference on July 15 held via Zoom.

Cinemalaya has been attempting to go online since a few years ago and Mr. Millado noted that when they did try in 2014, it was met with controversy after entries from the 2012 and 2013 competitions were uploaded online without permission from their filmmakers. The films were eventually taken down.

This year’s festival will be held online from Aug. 7 to 16 on video-sharing platform Vimeo and will be featuring 10 short films in competition and 20 exhibition short films.

On March 22, Cinemalaya announced that they were postponing the festival because of the COVID-19 pandemic as the organizers “recognized the health and safety hazards the film production may pose on filmmakers and workers” as they tried to meet the deadlines for the festival, according to a statement posted on the Cinemalaya Facebook page. This led many to believe that the festival would be moved to a later date within the year or even the next, but after much consultation, the organizers decided they could push through with only the short films that had been submitted.

It helped that they had more than 240 short film submissions this year.

“These people submitted their films… and [we thought] this would be a nice time to highlight the short filmmakers. So we said we should continue with the festival and make the short films the main event this year,” Jose Javier Reyes, competition and monitoring chairperson of the festival, said in the conference in the vernacular.

And because the pandemic made it unsafe for the full-length entries to be produced, Cinemalaya has opted to put all the full-length entries for 2020 and those chosen for 2021 in Cinemalaya 2021, in what Mr. Reyes called a full-length carambola as next year’s festival will have 18 feature films in the main competition.

Cinemalaya gives grants for 10 feature films per year but the pandemic has caused two entries to drop out for 2020.

ONLINE-ONLY EXPERIENCE
Cinemalaya will be held online this year from Aug. 6 to 17 via the festival’s own Vimeo page. Mr. Millado said they chose this platform as they provide security against piracy, although they did create a team to be on the lookout against infringement.

He admitted that it was more difficult to set up the online experience as they had to arrange for paywalls and iron the kinks out of streaming a festival online.

“It’s a brave new world. We don’t expect a seamless experience, but I hope our viewers appreciate that this [was made] in the context of a learning curve,” Mr. Millado said.

The festival typically attracts around 50,000 audience members during its two-week run at the CCP and select cinemas nationwide, but with the festival going online, its organizers said they are looking to reach “the same viewers or even more” as by going online, the festival films will be accessible to more people. “This time we’re not limiting ourselves to Manila audiences but also to audiences all over the Philippines,” Mr. Millado said.

After the festival’s run on Vimeo, the entries can be viewed via the ABS-CBN streaming service iWant and its global subscription service channel, The Filipino Channel (TFC). This, Mr. Millado said, will give the festival a wider reach than it usually has.

Wider reach notwithstanding, he said that they are not looking at the same revenues to be earned with this year’s festival as they are not charging what they would normally: the festival is charging P75 for a bundle of five short films or P350 for a festival pass which includes all films, talk backs, and webinars. The tickets for each film at the 2019 Cinemalaya cost P200 while festival passes went for P3,500.

THE ENTRIES
This year’s 10 competition short films are: Ang Gasgas na Plaka ni Lolo Bert (The Broken Vinyl Record) by Janina Gacosta and Cheska Marfori; Ang Pagpakalma sa Unos (To Calm the Pig Inside) by Joanna Vasquez Arong; Excuse Me Miss, Miss, Miss by Sonny Calvento; Fatigued by James Robin Mayo; Living Things by Martika Ramirez Escobar; Pabasa Kan Pasyon by Hubert Tibi; Quing Lalam Ning Aldo (Under the Sun) by Reeden Fajardo; The Slums by Jan Andrei Cobey; Tokwifi by Carla Pulido Ocampo; and Utwas (Arise) by Richard Salvadico and Arlie Sweet Sumagaysay.

In Ang Gasgas na Plaka ni Lolo Bert, an old vinyl record alters a closeted gay man’s life; while memories catch up with her as a girl visits a ravaged port city in Ang Pagpakalma sa Unos.

Excuse Me Miss, Miss, Miss tells the story about a department store sales lady who unearths the ultimate secret to regularization, and Fatigued is about an employee who overslept and must wake up from a nightmare.

Living Things is about a woman who discovers that her decade-long lover has turned into a cardboard standee. Pabasa kan Pasyon follows a Bicolano family that turns to religion to make both ends meet.

In Quing Lalam Ning Aldo, a transgender sampaguita farmer decides to renovate their neglected kitchen as soon as she hears that her son is coming home. The Slums, on the other hand, follow a documentary team that progressively intervenes and trespasses into the lives of a poor family living in the slums as they try to cope with the loss of their TV.

In Tokwifi, a mestiza 1950s star, trapped inside a television that falls from the sky, dreams up a romantic romp with a Bontok man who doesn’t know how to kiss. (“Tokwifi” means star in the Bontok language.) Meanwhile, Utwas narrates how a young boy discovers the ocean as he tries to learn how to dive and fish.

Aside from the main competition, Cinemalaya will also be showing 20 short films in exhibition: Ang Meron Sa Wala (Beyond Nothing) by Arby and Christine Larano; Ang Nawalang Haligi (Pillar) by Sarah Mya Regacho; Dama De Noche by Lawrence Sibug; Grand Gestures by Cody Abad; Gulis (Lines) by Kyle Jumayne Francisco; Habak by Paolo Matibag and Mia Salisbury; Himagsik ng Hiwaga (Revolt of the Mystic) by Geoffrey Solidum; Igib by Joey Paras; Jepoy by Avid Liongoren; Kung Saan Patag Ang Bundok (Where The Horizon Meets The Mountain) by Dolliete Echon; OctoGod by Shievar Olegario; Paon by Seb Valdez; Pinakanakapagpapabagabag-Damdamin (Most Disturbing Feeling) by Jermaine Tulbo; Si Gloria at Si Juan by Gilliano Salvador; Sumasaiyo (Yours truly) by Jermaine Tulbo; Tarang (Life’s Pedal) by Arvin Alindogan Belarmino;Tahanan by Mick Quito; Mata by Bryan Kennette Padilla; Displaced by Aedrian Araoj; and The Rooftop by Avirup Biswas.

Gawad CCP Para sa Alternatibong Pelikula at Video, said to be the longest-running independent film and video competition in Asia, will also continue its run this year. Visions of Asia, one of the major components of the film festival, will screen award-winning indie films from the region.

Cinemalaya will also pay tribute to individuals who have made great contributions to the Philippine film industry — director Peque Gallaga and actress Anita Linda. The festival will also be doing retrospectives featuring previous Cinemalaya films.

Screenwriter Ricky Lee, in partnership with Cinemalaya, will conduct a scriptwriting masterclass. There will also be a virtual reunion of his writing workshop alumni.

For more information about the festival visit the CCP and Cinemalaya websites and their official social media pages. — Zsarlene B. Chua

The mobilizing power of the BTS ARMY

BTS, the South Korean supergroup, is known for churning out hits and energizing a growing global fan base.

Early in June, those fans — collectively called ARMY — put their energy behind an online campaign called #MatchAMillion to raise money for social justice causes in the United States. It hauled in $1 million in roughly one day, matching the donation of the band itself to Black Lives Matter.

This accomplishment, ARMY members say, shows that being a fan of BTS is about more than buying records. It also illustrates how the fan base extends into older demographics, tying their spending clout to a generation that is internet-savvy and able to harness the power of social media.

“We’re buying cars and selling out stadiums; you can’t just do that with some overexcited girls,” said Erika Overton, 40, one of the administrators of One In An ARMY, the fan group that organised the #MatchAMillion fundraising effort. “This is not just a fan group to enjoy music — it’s an economic force, and something you can’t really dismiss as something trivial.”

(Open https://graphics.reuters.com/GLOBAL-RACE/BTS-FANS/qzjpqebqbpx/index.html in an external browser to see an interactive graphic on how BTS ARMY raised money for social justice causes in the United States.)

Some Black ARMY members say BTS has a responsibility to continue publicly supporting the racial justice protests that affect them. And BTS has also publicly acknowledged their music is based on hip-hop and R&B — genres that were created and popularized by Black American artists.

But others are concerned the wider fanbase’s attention to these racial issues may be fleeting.

“When people care — like seriously care — they’re going to put action behind that and not just words. And to actually see action behind it? That made me wake up and have hope,” said Nico Edward, who runs a BTS reaction video YouTube channel.

“People lash out and do the hashtags and stuff and that’s fine to raise awareness, but it usually, historically, dies out and people’s attention moves to other things. But we’re still dealing with this every single day.” — Reuters

First Gen names three LNG storage bidders

LOPEZ-LED First Gen Corp. has picked three foreign firms to participate in a competitive selection process to provide storage and regasification service for its upcoming liquefied natural gas (LNG) import facility in Batangas.

The listed energy company on Thursday told the stock exchange that it chose on June 9 three bidders from which one will be later picked to lease a floating storage and regasification unit (FSRU) for its FGEN Batangas LNG Terminal project.

The bidders are BW Gas Ltd. of global gas shipping company BW Group; New York-listed GasLog’s unit GasLog LNG Services Ltd.; and Hoegh LNG Asia Pte. Ltd., owned by the Norwegian LNG carrier provider Hoegh LNG Holdings.

First Gen has not indicated when the competitive selection process will commence.

The said facility is a carrier that is capable of storing LNG and returning it back to its gaseous state. A typical carrier can hold as much as 170,000 cubic meters of LNG.

First Gen is developing an interim LNG terminal at its Clean Energy Complex in Batangas City which will bring offshore natural gas supply to domestic power plants as early as the third quarter of 2022.

The project will modify its existing liquid fuel jetty to become multi-use and build an adjunct gas-receiving facility. Once completed, the terminal will utilize an FSRU.

The government’s Energy Investment Coordinating Council declared the gas terminal project by First Gen’s subsidiary FGEN LNG Corp. as an Energy Project of National Significance under Executive Order No. 30.

On March 4, the gas unit applied with the Department of Energy (DoE) for a permit to construct, expand, rehabilitate, and modify (PCERM) for the project. It has yet to receive its approval, as of late.

The Philippines has identified imported LNG as a substitute for its depleting sole indigenous gas source from the Malampaya deepwater gas-to-power project. It is yet to enter into LNG agreements with foreign suppliers.

Aside from First Gen, Vires Energy Corp., which was recently acquired by Cagayan de Oro-based A Brown Co., Inc. from Singaporean firm Agro Group Pte. Ltd., is also planning to build a floating storage and regasification facility to introduce LNG imports in the country. The DoE has yet to decide on its application for a notice to proceed for the project.

First Gen’s shares surged on Thursday by 6.28% to close at P23.70 each. — Adam J. Ang

Child YouTube star Ryan Kaji adds lockdown fun, virus education to repertoire

YOUNG YOUTUBE sensation Ryan Kaji’s star has kept rising during the coronavirus lockdowns.

The eight-year-old, who first began his channel Ryan’s World on YouTube to review toys for family members and other youngsters, raked in $26 million as 2019’s highest paid content creator and now boasts 25.7 million subscribers.

Kaji’s videos frequently feature his parents Shion and Loann, and lure millions of views every week.

Since the lockdowns began to curb the spread of the new coronavirus, Kaji, like many other influencers, has pivoted his focus. He now creates content around fun indoor activities and educational interviews with virus experts.

His interest in YouTube videos began as a toddler.

“When I was three, I saw a bunch of other little kids on YouTube and I asked my mom if I could do it too and she said ‘Yes’,” he said.

The family hopes to expand Ryan’s World to international audiences by doing Spanish and Japanese language videos.

Kaji is also now expanding beyond his channel, and has launched his own branded toothbrush and toothpaste. — Reuters

1...8,6038,6048,605...13,533Page 8,604 of 13,533
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube