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As borders close and employers collapse, OFWs play the waiting game

By Luz Wendy T. Noble, Reporter

CRUISE SHIP singer Harry G. Bayona was home for a two-month holiday, which has since dragged on for more than half a year, and counting.

“It’s really stressful because this is how I make a living now,” Mr. Bayona said in a Zoom interview, noting that he had hoped his cruise career was a turning point for his ambitions to make it overseas.

When the COVID-19 outbreak turned into a pandemic, Gilbert A. Gayeta, a technician, was among the 300 employees sent home from a single company in Saudi Arabia.

“Operations started again and the company informed us that we can come back soon, but our status has been on hold for the past five months,” Mr. Gayeta said in Filipino via Facebook.

Overseas Filipino Workers (OFWs) have been a lifeline for the economy, but the pandemic has sent them on a rough — and uneven — ride. Health care workers were suddenly in demand all over the world, but faced caps on their overseas deployment. Workers in the Middle East became collateral damage as the oil markets collapsed. And cruise ships, which became notorious as vectors for infection, have been tied up in port for months.

The World Bank estimates that the Philippines is the world’s fourth biggest destination of worker remittances, behind only India, China, and Mexico. The impact of the pandemic has been severe, with May cash inflows declining 19% year-on-year to $2.106 billion the largest drop since the 33.5% contraction posted in January 2001.

Driving the decline was job losses in the OFW-dependent industries like oil, shipping, and cruise lines. The Department of Foreign Affairs (DFA) tally for repatriated workers toped 254,000 as of Nov. 15. Those numbers are expected to rise to about 300,000 by the end of 2020.

While OFW deployments have since recovered on a month-on-month basis from the April low, when only 1,794 OFWs left the country, deployments are still nowhere near their 2019 levels, based on preliminary data from the Philippine Overseas Employment Agency (POEA). In the seven months to July, deployments were down 65.24% year-on-year to 484,762.

“Based on the DFA’s experience in repatriating our distressed overseas Filipinos, the pandemic’s impact had an immediate effect on the cruise line industry and on our thousands of seafarers on board ship,” Foreign Affairs Undersecretary for Migrant Worker Affairs Sarah Lou Y. Arriola said in an e-mail.

Ms. Arriola said irregular migrants or those who left the country on tourist visas to seek employment abroad were also hit hard.

“When countries started to impose lockdowns and businesses had to temporarily close shop, the already limited job market for irregular migrants dwindled further,” she added.

Analysts said that the jobs recovery for OFWs will still depend on how economies in the host countries deal with the virus.

“OFWs working in sectors that are still deemed ‘non-essential’ and involving ‘high touch’ such as hospitality will still be under threat. However, as we get to know how to act during the pandemic and as vaccines emerge, such effects will be mitigated, but not in the short term,” Asian Institute of Management economist John Paolo R. Rivera said in an e-mail.

Mr. Rivera said some countries which have contained their outbreaks, such as New Zealand and Taiwan, may provide employment prospects for OFWs.

There are some bright spots for OFWs as restrictions ease and authorities find ways to operate their economies in the “new normal.” A return to pre-COVID levels of global trade could also herald an employment recovery, ANZ Research analysts Sanjay Mathur and Kanika Bhatnagar said in a note.

In late October, the US Centers for Disease Control and Prevention laid down guidelines for a phased resumption of cruise operations, ending the run of bad news for an industry that was laid up following a no-sail order in March. But the outlook remains clouded for demand.

“Even if you have the protocols to ensure the passengers are safe… convincing them to go onboard is another…,” Levinson C. Alcantara, a director at the Philippine Overseas Employment Agency (POEA) overseeing pre-employment services for OFWs, said at a forum.

Governments are now starting to decide to open up borders in reciprocal arrangements with countries they deem to be safe, according to Christian de Guzman, senior vice-president of the Sovereign Risk Group at Moody’s Investors Service, who cited the so-called “travel bubble” arrangement agreed to by Hong Kong and Singapore.

The flip side is the inability to travel of citizens of countries where infection rates remain high, such as the Philippines, whose nationals are not allowed to enter places like China.

“If the Philippines doesn’t get infection rates under control, it could very well affect the deployment of OFWs, which could then affect the remittance of inflows going forward,” Mr. De Guzman said in a Zoom interview.

As the crisis drags on, migrant workers may find themselves at a turning point in terms of how their host countries treat them.

“Given the lessons from the pandemic, will foreigners be given access to social protection in host countries – especially less skilled workers?” Jeremaiah Opiniano, Executive Director at the Institute for Migration and Development Issues, said in an e-mail.

In the meantime, Mr. Bayona, the cruise singer, has shelved his plans to buy property this year and has tried his hand at part-time jobs while awaiting notice from his company.

“There are so many OFWs who are breadwinners and still need to send their kids to school. I’m luckier in a way as I have more wiggle room when it comes to my finances,” he said.

In Batangas, Mr. Gayeta, the technician from Saudi Arabia, is still waiting for his company to call after being on no-pay forced leave since May. He continues to support his family by selling frozen chicken and working at building sites from time to time.

In the event of the worst-case scenario — a terminated contract — Mr. Gayeta said he will likely continue to look for jobs overseas with terms of at least a year or two, to provide more continuity compared to his three to six-month stints in construction.

“I’m the eldest sibling and what I earn here is not really not enough. In Saudi, I earn a little more and I will still choose that because I can handle homesickness anyway,” he said.

Roxas Holdings posts P3.8-B net loss

LISTED sugar and ethanol producer Roxas Holdings, Inc. (RHI) posted an attributable net loss of P3.81 billion for its 2020 fiscal year that ended on Sept. 30 despite cutting its net debt.

In a stock exchange disclosure on Thursday, the sugar company said its result for 2020 is worse than its 2019 losses of P1.88 billion.

Revenues of RHI dropped 41.1% to P4.8 billion against P8.15 billion in the previous year.

Further, the company said its net debt dropped 55.1% to P4.4 billion compared with P9.8 billion a year ago due to the completion of its asset sale.

RHI Chairman Pedro E. Roxas said funds from the sale of company assets such as its sugar mill and ethanol plant in La Carlota City, Negros Occidental, and investment properties like shares in Najalin Agri-Ventures, Inc. were used to pay all long-term loans.

“The sale of these assets to significantly reduce our debt is part of our efforts to de-risk the business and focus on expanding our sugar refinery operations in Nasugbu, Batangas,” Mr. Roxas said.

“This will also allow the group to help our country minimize importation of refined sugar needed by beverage and food manufacturers,” he added.

Meanwhile, the company said its non-recurring losses reached P2.6 billion as a result of its asset sale and goodwill impairment at the end of the year.

RHI Chief Financial Officer Celso T. Dimarucut said before the non-recurring charges, the company’s overall growth was tempered by losses from its ethanol business segment.

“The early shutdown of our alcohol plants due to the delays in lifting by oil companies and the steep rise in the cost of feedstock tempered gains, which resulted in slim margins for the alcohol unit,” he said.

Mr. Dimarucut added that the company’s performance during its fiscal year was also affected by the eruption of Taal Volcano in January, worsened by fewer available canes in the area, which subsequently hampered its production of refined sugar.

“Despite the prevailing uncertainties due to the pandemic, RHI is doing its best to fast track recovery and implement a wide-ranging transformation strategy to rebuild its sugar mill and refinery in Batangas, while boosting its alcohol business in Negros Occidental and strengthening its agri-business with more targeted programs to help farmers increase their yields,” he said.

Meanwhile, RHI also announced in another regulatory filing that Mr. Dimarucut will be appointed as the company’s president and chief executive officer effective immediately.

As a result, George T. Cheung will be the company’s executive vice-president, chief commercial officer, and chief risk officer to take effect on Jan. 15, 2021.

In a separate disclosure on Thursday, RHI’s parent company Roxas and Co., Inc. announced that the board of directors had approved the sale of some properties to National Grid Corp. of the Philippines. (NGCP).

The company has sold a total of 27,680 square meters coming from its own property and some portions of Roxaco Land Corp.’s property in Banilad, Batangas to NGCP.

“The properties are intended to be used by NGCP for its Tuy (Calaca)-Dasmariñas 500 kilovolt (kV) Transmission Line Project. The project of NGCP will be adjacent to properties of the corporation identified as a site for a future solar project,” the company said.

On Thursday, shares in RHI fell 2.17% or 4 centavos to close at P1.80 apiece, while those in Roxas and Co. rose 0.69% or one centavo to end at P1.45 each. — Revin Mikhael D. Ochave

How the entertainment industry learned to be more efficient during the pandemic

By Zsarlene B. Chua, Senior Reporter

THE KISSING SCENE is mandatory for certain types of drama, but became forbidden overnight because of work safety rules imposed during the pandemic. The US TV network Lifetime got around the prohibition by having actors kiss through plexiglass, and then digitally removing the barrier in post-production. These adjustments, some small and many large, all of them disruptive in some way, paint a picture of an industry having to frantically make up new rules as fresh problems arose.

GMA Network, Inc., the country’s largest television network, was caught out by the lockdown with two films in production — one in which crews were “literally in the middle of shooting,” according to Ianessa S. Valdellon, GMA Network first vice-president for public affairs, in an e-mail interview with BusinessWorld. It also had to halt production of various television series and had to air reruns until September, when Descendants of the Sun, the Philippine adaptation of a Korean TV drama, resumed filming.

“We were supposed to produce our second film this year, but I’m afraid this will be pushed back until such time that quarantine restrictions are relaxed,” according to Lilybeth G. Rasonable, GMA Network senior vice president for entertainment, also in an e-mail interview.

Despite the restrictions, GMA managed to produce five shows under “new normal” rules while TV5 managed to produce a slew of scripted and non-scripted shows.

Production company IdeaFirst also had “to stop and reevaluate all our plans,” its president Perci M. Intalan said by e-mail. It had movie and TV projects that had to stop because “they just weren’t feasible considering all the safety requirements and logistical restrictions.” Instead, it had to regroup with new projects that “can be produced safely and realistically.”

One of those new projects was the web series Gameboys, shot remotely and via videoconferencing, except for scenes in which the characters met. It aired in May.

Gameboys was unique because it was produced during ECQ (enhanced community quarantine, the strictest phase of the lockdown) — so we forced ourselves to shoot 100% from home and figured out ways to send props and equipment and to direct actors and finish entire episodes virtually,” Mr. Intalan said. He called it a “slow and laborious process” which “we are very proud of.” 

Mr. Intalan was quick to add that this may not be possible for other series.

“It’s not something you really wish to do over and over again…(that) won’t work for other projects especially those where characters have to interact in the same physical space,” he said.

The pandemic health regulations included a 50-person limit for on-set personnel, a half-day shooting window, locked-down shoots, regular testing, and monitoring by a health and safety officer. All of these imposed added costs.

“Without giving a number — it varies depending on the size of the production — it is definitely more expensive to shoot drama programs now with the need for swab tests, lockdown accommodations and food, PPE (personal protective equipment) and the observance of disinfection and safety protocols on set,” Ms. Valdellon said.

Mr. Intalan said shooting is “definitely” more expensive as in the case of his company’s TV5 Christmas special, Paano Ang Pasko, which had a P6.9-million safety budget, forcing the production to exceed its overall budget.

“You can’t scrimp on this. There are no shortcuts. You cannot risk anyone getting sick,” according to Mr. Intalan, who is also the head of programming at TV5.

The show ultimately had to rope in three directors — Mr. Intalan, Enrico Quizon, and Ricky Davao —  to distribute the added burden of pandemic-style production. 

“This is bayanihan,” said Mr. Davao, who was originally only a cast member.

The added costs of shooting, according to Jade Castro, a director, forced productions to be more efficient, particularly in response to the limited hours of shooting, which was for years on the wish lists of many industry workers. One byproduct of the lockdown requirement was that “everyone is in the same location.”

“For such a long time we have been pushing for shorter shoot times and now in the pandemic we proved that it can be done,” Mr. Castro said during an online interview with BusinessWorld during the promotion of Boys Lockdown on Oct. 7.

He added that he hopes this becomes the norm from now on, because shoots used to run for over 24 hours at a time, posing health risks for both cast and crew.

Locked-down shoots lay the groundwork for productions that are “more controlled. I think it would benefit the television and movie industry to continue studying this kind of setup and improving on it for the future,” Ms. Rasonable said.

“Despite the pandemic being a negative, I think that it has pushed producers/creators to be more imaginative and innovative in coming up with content and in the manner by which they produce such content. Out-of-the-box ideas, smaller and more efficient productions teams, new ways of story-telling, more experimentation on new technologies, new formats, etc. These, I believe, will be the long-term positive impacts of the pandemic on production,” she added.

Content was always king, but the lockdown made it even more so

By Denise A. Valdez, Senior Reporter

MARCH is a distant memory now, the last time many of us did things that we would deem non-essential. But as the lockdown weeks stretched into months, keeping people trapped at home, the dividing line between things that were vital to survival and those that were merely nice to have began to blur. And it’s fair to say that somewhere along the way, online content creators cemented a place in the homebound routines of a population starved for entertainment and connection.

The first signs of this longing, apart from self-improvement projects like manic workouts or sourdough baking, had an element of escapism, embodied in Netflix watch lists. One indicator of the sheer dependence people developed for Netflix was the dwindling list of recommended shows as audiences with time on their hands watched everything in sight.

Undeniably, entertainment proved to be just as essential to people’s lives, in whatever form, as the world turned unrecognizable. In the early days of the lockdown, TikTok grew more popular, online concerts became a thing, and live streams were popping up left and right.

For creators of content distributed via traditional channels, the lockdown meant no shoots, no production activity and no new shows. TV had to resort to reruns during the quarantine until it could adapt with new shows and homebound presenters reaching out via videochat.

“Even when the restrictions were eased, new protocols needed to be adopted. Everything that we did on television had to adapt to the new normal,” Raz de la Torre, director of shows such as Maalaala Mo Kaya for ABS-CBN Corp., said in an Oct. 20 video call.

Some of the protocols are shorter shoot hours, a 10-person limit per scene, sets reconfigured for social distancing, a ban on dining scenes, and the need to obtain performers’ consent to stand closer than six feet, among others.

“Many of the things that we used to have the freedom to do were suddenly gone, and that has a creative impact,” Mr. De la Torre said.

While TV struggled to produce new shows, digital content creators were able to adjust with more ease.

“A lot of creators thrived during this time because they have been able to pivot easily. A lot of vloggers just film their lives, so they can easily make content from their homes. They don’t need expensive equipment,” Jako de Leon, YouTuber and executive producer of PaperbugTV, said in an Oct. 29 video call.

At the height of the lockdown, Filipinos spent 5.2 hours a day of non-work time online — the most in Southeast Asia, where the regional average was only 4.7 hours a day at the time, Bain & Company said in its e-Conomy SEA 2020 report prepared with Google and Temasek. After lockdown rules were relaxed somewhat, Filipinos spent 4.9 hours a day in front of screens, still the highest in the region, where the average is 4.2 hours.

“The market is more ready now, so if you want to be a creator, now is the best time to do it,” Carlo Ople, who maintains a sneaker review vlog and heads tech blog Unbox.ph, said in an Oct. 22 video call.

Having started in digital content creation more than a decade ago, Mr. Ople said he has seen the industry change across various media over time: from blogging, photo sharing (see: Instagram), video blogging (vlogging), micro video blogging (see: TikTok), and now, live streams. The robust digital environment that took years for creators to build, the pandemic was able to develop in a matter of months.

“The internet was growing and internet usage was growing. But when the pandemic hit, the digitization of the Philippines in terms of market behavior shot up dramatically,” Mr. Ople said.

With people stuck at home, there was only one place for work, school, shopping, hanging out and entertainment. In other words, the past months were like an immersive training environment for understanding how digital platforms work. For a growing industry of digital content creators, this was a more than welcome development.

In January, the Creator and Influencer Council of the Philippines (CICP) was formed, gathering creators, influencers, and marketing professionals whose roles are intertwined with the industry.

Having recognized the usefulness of creators and influencers in brand-building, CICP’s founders thought it was high time to band together to strengthen the “influencer ecosystem.” Mr. De Leon and Mr. Ople are both board members of the organization.

“As they said, there are good things that have also happened during this pandemic, one of which is being able to bring the CICP to life,” Jim Guzman, president of CICP and social media head at Dentsu Aegis Network, said in an Oct. 29 video call.

One solid indication of the industry’s emerging centrality is how much bigger companies are willing to spend on digital creators. Ten years ago, Mr. Guzman said only about 5% of advertising budgets were allotted to digital. Now, this has shot up to about half the budget. “No one can deny the fact that the new celebrities are the internet stars,” he said.

Even Mr. De la Torre, the TV director, acknowledges the impact of digital content in advertising. “A lot of digital content, especially the ones that you see on YouTube, have monetization schemes that are actually very similar to a television structure… It’s still advertising-driven,” he said.

For this reason, some have found an online career to be a viable alternative to a day job. Mark Averilla, known digitally as Macoy Dubs, rose to online fame for creating Tagalog-dubbed videos. While holding on to a job at a creative agency, Mr. Averilla continues to attract new fans online, such as those following the “Aunt Julie” videos launched during the pandemic.

“Today, content creation is considered a passion and (a possible) source of income. As a matter of fact, a lot of millennials are considering leaving their full-time jobs just to be full-time content creators,” Mr. Averilla said in an Oct. 19 e-mail.

This is also one of the CICP’s goals. “Many are (creating content) because they want to entertain, to make people laugh, or to educate people… We’re here to help them continue that as a living, and not just something that they’re doing in the meantime,” Mr. De Leon said.

Mr. Ople, the sneaker vlogger, likened the appeal of online content to getting a “fix.” He said people watch TV and get sucked in for about 30 minutes, just to get a “kilig” fix, for instance. Online, a two-minute video can give a person just about the same feeling.

“The universal truths and benefits of storytelling will forever be there. What’s just happening is people can get that across multiple platforms now,” Mr. Ople said.

Mr. De la Torre, who’s been in the TV industry for more than a decade, said however that there are aspects of traditional narratives that cannot be replaced by digital. 

“You don’t give up how narratives should be told. The teleseryes, they’re supposed to mirror real life. So the way the scenes are written still has to mimic real life,” he said.

Similarly, Mr. De Leon said the two platforms will likely learn to co-exist, offering consumers more variety.

“We will still want to watch movies, we will still want to watch high-quality production stuff, we still want to see great shows and great writing. There are just more types of content now,” Mr. De Leon said.

Despite the challenges the pandemic imposed on the TV industry, digital creators agree that the mainstream platform is in no danger of dying out anytime soon. “It’s still the dominant platform that a lot of Filipinos look to, especially in areas wherein you don’t have robust and strong internet connection,” Mr. Ople said.

Mr. De la Torre also noted that getting featured on TV still gives digital creators a feeling of “legitimacy,” as it is acknowledged to have a wider reach than online.

“In many ways, you could see digital content creators as the ones who are more experimental, and therefore leading the way into treading new territory. But at the end of the day, it’s still popular mainstream platforms like television that dictate what will be palatable to a greater mass audience,” he said.

As for the future of digital, Mr. Ople said it may have to consolidate at some point. “In anything, you will always see the age of exploration and trial. That’s where people will go to a platform and try it out and experiment. And then you will start to see a consolidation — either some people will quit, or some people will band together. Some groups will form, and then you can see more structured, formal businesses out of that particular melting pot,” he said.

Pag-IBIG postpones increase in members’ monthly contribution

PAG-IBIG FUND has decided to defer the increase in its members’ monthly contribution that was supposed to take place in January 2021, the agency said, adding the move came after consulting with labor and employer groups.

“We know that many of our members and employers faced financial challenges in the last few months because of the effects brought about by the pandemic to the economy. After consulting with our stakeholders, we will no longer push through with the increase of the members’ monthly contributions next year,” Secretary Eduardo D. del Rosario, who heads the Department of Human Settlements and Urban Development, said in a statement.

He said the decision was in line with efforts of the Duterte administration “to alleviate the financial burden of our fellow Filipinos and help businesses recover.”

Mr. del Rosario heads the 11-member Pag-IBIG Fund Board of Trustees.

The agency’s statement said that in 2019, its officials approved the increase of members’ monthly contributions, which had remained unchanged since the 1980s.

Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said that the projection at that time placed the amount of loans disbursed would eventually outpace the total collections from loan payments and members’ contributions each year.

“So, we proposed to increase the monthly savings by P50 to have enough funds to answer the growing demand and maintain the low rates of our loans,” the official said.

But he said with the pandemic, the circumstances have changed.

“Rest assured, our financial position remains strong and that has allowed us to defer the increase in our monthly contributions by a year. What we are focused on right now is providing our members and businesses the assistance they need to cope with the effects of the pandemic,” he said.

Mr. Moti said home loan availment had been rising steadily with the easing of quarantine restrictions after the pandemic dampened demand early this year.

He said that as a signal of early economic recovery, the agency released P44.16 billion in home loans this year, allowing 43,733 members to have their own homes.

For October alone, P7.7 billion in home loans were released, which equals pre-pandemic monthly takeout target for the month, he said.

Mr. Moti described the result as a “hopeful sign” that the agency was getting back on track.

“We assure our members that we will continue serving them, especially during these difficult times. While the pandemic could have been used as an excuse not to serve, we at Pag-IBIG Fund used it as a reason to serve our members better. That is the Lingkod Pag-IBIG way,” he said.

Healing priest’s biopic in 2020 MMFF

SHIFTING to an online platform may have led the annual Metro Manila Film Festival (MMFF) to introduce a greater variety of films for this year’s pandemic edition. While the requisite family films such as Magic Kingdom and Mang Kepweng: Ang Lihim ng Bandanang Itim are still part of the programming, it has been seven years since the festival last included a biopic on a religious figure, 2013’s Pedro Calungsod: Batang Martir. While Pedro Calungsod tells the life (or what little is known about the life) of the second Filipino saint who lived in the 1600s, Joven Tan’s Father Suarez: Healing Priest explored the life of a modern-day subject, the so-called healing priest, Father Fernando Suarez.

“I have heard a lot of things about Father Suarez from way back, so when I got to read the script, I was intrigued and wanted to work on this material. During our meets, prior and during the filming I remember him (Fr. Suarez) to be kind, straightforward, and sincere,” Joven Tan, the film’s director, said in a press release.

Fr. Suarez was a Filipino Catholic priest who performed faith healing in the Philippines and abroad. He was born in Taal, Batangas on Feb. 7, 1967. At the age of 18, Fr. Suarez is said to have discovered his healing abilities after he prayed over a paralyzed woman outside Quiapo Church after which the woman was able to walk again. He was ordained at the age of 35 in Canada, although he had been performing healing masses even before he officially became a priest. He returned to the Philippines to continue his healing mission in 2008. His healing missions attract thousands of people at a time.

Fr. Suarez died of a heart attack while playing tennis on Feb. 4 of this year, shortly before the film was finished. He was 53.

In the film, Father Suarez is played by John Arcilla who said it was easy saying “yes” to the role — although he had misgivings later on because of the controversies that surrounded Fr. Suarez, including accusations of corruption and sexual molestation which will be tackled in the film. Mr. Arcilla said that he didn’t want to be “a mouthpiece to justify some people’s issues,” according to the release. But after meeting Fr. Suarez, Mr. Arcilla was won over by his sincerity and because he did not try to defend himself. The priest was exonerated by the Holy Office at the Vatican in January.

Fr. Suarez, Mr. Arcilla noted, was also a fan of Heneral Luna (2015) where Mr. Arcilla played the title role. “[Fr. Suarez] personally handpicked me to play the role [in his biopic],” Mr. Arcilla said.

“While filming, I decided not [to] mimic or copy him,” said the actor. “I just took his essence and some of his demeanor but what I totally embraced was his unwavering trust in the Almighty.”

The film, which opens on Dec. 25, is something people should watch because “it pays to be reminded that we could always turn to our faith and ask guidance from our Creator,” said Mr. Tan.

Father Suarez: Healing Priest is part of this year’s MMFF slate. Tickets are now available via Upstream.ph. The Metro Manila Film Festival runs from Dec. 25 to Jan. 7 online. — Zsarlene B. Chua

Moody’s affirms Security Bank’s rating, outlook

MOODY’S INVESTORS Service affirmed Security Bank Corp.’s long-term debt rating of Baa2, citing the lender’s strong capitalization and profitability.

In a Dec. 14 credit opinion, the debt watcher also retained its “stable” outlook for the bank’s rating, which means the grade could be retained for the next 12 to 18 months.

Moody’s said the rating reflects their assumption of moderate level of systemic support from the government given Security Bank’s position as one of the biggest medium-sized banks in the Philippines.

It said the bank’s credit strengths lie in its “robust capitalization” and “stable profitability, supported by lower cost of funds.”

“Our strong capital position is an important pillar which both our clients and employees can rely upon to weather the challenges brought by the COVID-19 pandemic. That capital will be deployed to support our clients’ pandemic recovery efforts, employee health and safety initiatives, and investments in systems and technology,” Security Bank President and Chief Executive Officer Sanjiv Vohra said in a separate statement on Thursday.

Moody’s said an upgrade for the bank’s rating is unlikely in the near future as its Baa2 grade already matches the country’s sovereign rating. Following this, a downgrade of the country’s rating could also lead to a lower rating for the bank.

“A significant decline in capitalization as a result of excessive loan growth could also exert downward pressure on its BCA and ratings,” it added.

Moody’s expects the bank’s capitalization to remain robust. As of Sept. 30, Security Bank’s common equity Tier 1 ratio rose to 19.1% from 17.1%, as slower risk-weighted asset growth more than offset weaker internal capital generation.

Meanwhile, it flagged that the bank could see a further deterioration in asset quality amid the coronavirus pandemic. It noted the lender’s significant loan book exposure to pandemic-hit sectors such as retail (16%), construction (2.1%), agriculture (3.7%), and transportation (3.2%) as of end-2019.

Moody’s added that the bank’s consumer loans, which accounted for 26% of the total portfolio as of end-September, are also sizable.

“These loans are riskier as they are unsecured and retail borrowers tend to have limited buffers to withstand a prolonged cash flow crunch amid the economic downturn,” the report said.

Security Bank’s net profit slumped to P1 billion in the three months to September from P2.7 billion a year earlier due to higher loan loss reserves. This caused the lender’s nine-month net earnings to go down 12.9% to P6 billion.

The bank’s shares ended trading at P141 apiece on Thursday, down by 1.88% or P2.70 from its previous close. — Luz Wendy T. Noble

The cosmetics industry puts on a brave face

By Gillian M. Cortez, Reporter

HARD TIMES require most people to strip down to bare essentials. With work-from-home arrangements and mask mandates rendering make-up more or less superfluous, it’s hard to imagine how the cosmetics industry could possibly have survived. But contrary to expectations, it did, with the help of clever adaptations, like positioning the product as a small luxury, or a reassuring remnant of the user’s pre-pandemic life.

“Makeup enthusiasts don’t stop wearing even in the midst of compulsory face masks during this pandemic,” a representative of online brand Glamskin said in an e-mail exchange with BusinessWorld.

Thanks to masks, though, the playing field has shifted, from the face in general, to the eyes — just the right conditions for Glamskin’s eyeshadow products, some of which come in palettes the size of dinner plates.

“Consumers are raising their ‘eye game,’ emphasizing the appearance of their eyes. We have been trying to get our consumers to use more products for the upper part of the face, mainly brows, eyeshadow, liners, and lashes,” Glamskin said.

Glamskin’s social media has been pushing hard for rainbow-colored single-pan eyeshadow and fluttery false eyelashes, which promise a touch of glamor just a few inches north of the ever-present face mask.

Another brand with a strong eyeshadow line, Filipinta, which has built a reputation for vibrant colors, has also had to raise its social media game. Filipinta Creative Director Hannah Kirchhoff said in an interview with BusinessWorld that without social media, the company might not have survived.

Business “decreased a lot because what’s the use of (makeup) when there’s face shields and face masks,” she said.

However, the brand is still hanging on via its social media platforms, which had steered attention to its products pre-COVID-19. Ms. Kirchoff said marketing has continued via this channel to get around the lockdown and occasional disruption to delivery services.

Filipinta also reduced time to launch from three months from the previous six, to get product out the door faster and be less of a drain on resources during development.

“We really had to adapt to the situation,” she added.

Ever Bilena, Inc. Chief Marketing Officer Denice Sy told BusinessWorld makeup was a hard sell during the most difficult months of the crisis, when businesses were closing and workers were losing their jobs.

“It was a very sensitive time. It was not okay to market makeup at all. Everyone is really more concerned about their well-being and their health,” she said.

The Ever Bilena stable of brands includes Careline, targeted at teens; Blackwater, a fragrance line for men and women; and EB Naturals, a skincare line featuring soap and lotion, all suddenly difficult to sell for various reasons, not the least among them the grounding of the entire school-age population and the confinement of nearly the entire workforce to working from home.

“We actually did not think (the crisis) would last this long… in general I think the whole colorful cosmetics industry is suffering,” Ms. Sy said. She added that when the shops opened again, business did not pick up immediately due to limitations on mall hours and public transportation.

“That’s the reason why we see a lot of color cosmetics brands really trying to generate consumer purchases via promotions and campaigns,” she said.

Glamskin found itself having to offer discounts, even for its professional products.

“In order for us to carry on with our business and continue to provide jobs for our employees, our objective is to have continuous income despite the challenges we are facing. Putting most of our items on sale on all selling platforms online keeps our business afloat,” it said.

The biggest victim of the mask mandate was undoubtedly lipstick, which used to be wielded to inject striking color accents to the wearer’s general look. But that didn’t mean products for the eye area were flying off the shelves.

Ms. Sy of Ever Bilena described the situation for eye products as “not declining as much as the other categories… all other categories are barely performing.”

Ms. Sy also said the crisis also forced a shift to products perceived as more convenient, like eyebrow pencils, mascara and liquid eyeliner, for users who still wanted to achieve a put-together look without the time-consuming effort of their pre-pandemic routines.

Going forward, it is beginning to dawn on the industry that health protocols imposed by the pandemic will be around for some time.

“We will continue (to work with) the safety guidelines; makeup is a sanitary thing… as much as possible, we will keep pushing out products people like. We just need keep our heads up and be smart with our choices,” Ms. Kirchoff of Filipinta said.

The choice has come down to two equally plausible business strategies: saving costs during the crisis or generating excitement with new offerings.

“It’s important to excite the category… because people are not buying color cosmetics that much now; it’s really a call to action for them to try something new… people (will be) looking into cosmetics again,” Ms. Sy said.

Glamskin, which is counting on its users to look at cosmetics as a pleasant reminder of their old normal, before life was upended by the pandemic, said: “We all learned that despite the crisis, people remain resilient” and continue to seek out things that may not be essential, but are “important for their well being.”

Primex Realty taps Accor group for 200-room hotel in San Juan

PRIMEX Realty Corp. signed with hotel group Accor SA to manage its San Juan-based Pullman Manila at Primex Tower, which is slated to be completed by 2023.

The 200-room hotel will be at the topmost 10 floors of the mixed-use property that houses retail and office spaces in the lower floors.

Primex Realty Corp. is a subsidiary of listed company Primex Corp., which said in a disclosure on Thursday that the hotel at the 50-storey glass tower will have two restaurants, a rooftop bar, fitness center, swimming pool, and events facilities.

Primex Corp. started construction of the P3.6-billion Primex Tower in 2018, offering office spaces at 200-300-square meters each. The project is on a 1,944-square meter lot at the corner of EDSA, Connecticut Street, and Florida Street at the Greenhills commercial district.

Accor runs seven hotels in the Greater Manila area, with 16 more in its local pipeline for the next five years.

“This is a great market which will continue to thrive in the long-term due to its great potential driven by economic development, natural attractions, the people’s warm hospitality and the ongoing improvement of transport infrastructure,” said Andrew Langdon, Accor senior vice-president for Southeast Asia, Japan, and South Korea.

Primex Corp. acquired 100% stake in its affiliate Primex Realty Corp. in 2015, then 42.86% stake in Primex Development Corp. in 2019.

Shares in Primex jumped 1.20% or two centavos to P1.69 each on Thursday. — Jenina P. Ibañez

MMFF 2020 stars invite OFWs to watch this year’s films online

THE METRO Manila Film Festival (MMFF) festival organizers held a “MMFF Zoom Roadshow” with celebrities to invite Filipinos from all over the world to watch this year’s line-up of films.

Zanjoe Marudo, Charlie Dizon, Keann Johnson, Andrew E, Ritz Azul, Senator Jinggoy Estrada, Julia Estrada, Fumiya and Yamyam kicked off the online roadshow together with Presidential Communications Operations Office Director Pebbles Duque who hosted the online event. OFWs from Hawaii, the UK, Australia, UAE, Germany, Japan, Netherlands, Italy, USA, Trinidad and Tobago, and Hong Kong attended the roadshow. The participants were also given a short demo on how to watch the MMFF films via Upstream, the newest transactional video-on-demand (VOD) platform, and GMovies.

The 46th edition of the MMFF opens on Dec. 25and runs until Jan. 7, 2021. This year, the MMFF has 10 official entries, two more than the usual eight entries. This year the titles cover a wider range of genres:

Joel Lamangan’s Isa Pang Bahaghari is an LGBTQ-themed family drama about an OFW (played by Phillip Salvador) returning home to reconnect with his estranged wife (Nora Aunor) and children (Zanjoe Marudo, Joseph Marco, and Sanya Lopez).

Another LGBTQ-themed film in the roster is The Boy Foretold by the Stars, produced by Clever Minds, Inc., starring Adrian Lindayag and Keann Johnson, who portray high school classmates whose friendship is tested when their feelings towards each other evolve.

For those who enjoy a good scare, Easy Ferrer’s The Missing is set in a haunted house in Japan. Produced by Regal Entertainment, the film features Joseph Marco, Ritz Azul and Miles Ocampo.

Mang Kepweng: Ang Lihim ng Bandang Itim is a horror-comedy. Produced by Cineko Productions and directed by Topel Lee, the film stars Vhong Navarro, Ritz Azul, Benjie Paras, Joross Gamboa, Ryan Bang and Ion Perez.

Al Tantay’s Pakboys: Takusa is another comedy. Produced by Viva Entertainment, the film focuses on the infidelity of comedians Andrew E., Janno Gibbs, Dennis Padilla, and Jerald Napoles.

Then there is Christian Acuña’s fantasy-adventure, Magikland. Produced by Peque Gallaga, Lore Reyes, and Brightlight Leisure Productions, the film features a young cast including Miggs Cuaderno, Elijah Alejo, Joshua Eugenio, and Princess Aguilar.

Viewers can also expect a bit of romance with Mac Alejandre’s Tagpuan. This movie features a love triangle starring Iza Calzado, Alfred Vargas, and Shaina Magdayao. Written by Ricky Lee and shot in Hong Kong and New York, the film is produced by Alternative Vision Cinema.

Those who enjoy true stories might like Suarez, The Healing Priest. Directed by Joven Tan, the film is based on the life of Father Fernando Suarez. Produced by Saranggola Media Productions, the film stars John Arcilla, Dante Rivero, and Jin Macapagal.

Fresh from glowing reviews from its Japan and Estonia premieres, Fan Girl, the latest film from Antoinette Jadaone, is about every fan girl’s fantasy of spending a night with their idol. This was produced by ABS-CBN Films’ Black Sheep Productions, Globe Studios, Project 8, Epicmedia, and Crossword Productions, with performances from newcomer Charlie Dizon and award-winning actor Paulo Avelino, who plays himself.

Lastly, OFWs are represented by Adolfo Alix, Jr.’s Coming Home. Produced by Maverick Films, this is a drama about an OFW father (Jinggoy Estrada) who comes home to his unwelcoming family. The film also features Sylvia Sanchez, Edgar Allan Guzman, Martin del Rosario, Shaira Diaz, Vin Abrenica, Julian Estrada, and Jake Ejercito.

Through a partnership with Upstream and Globe’s GMovies, the MMFF is bringing this year’s festival online via Upstream in partnership with GMovies. The films can be viewed for P250 per title ($10 for Filipinos abroad).

Tickets are already on sale locally, and will be available internationally on Dec. 18.

Fintech group wants industry-crafted rules

BW FILE PHOTO

THE CENTRAL BANK should allow market players to develop their own open finance framework, with the Bangko Sentral ng Pilipinas (BSP) only providing support when needed in the process, an industry group said.

Through open finance, permissioned data sharing and third-party access is extended to a wider range of financial sectors and products in a bid to ramp up digitization and to introduce new financial products for consumers.

“The BSP should only step in to weigh in and remove artificial barriers to competition such as refusal to interconnect systems or share information and can be placed by other government agencies particularly, the National Privacy Commission (NPC) with respect to personal data,” Fintech Alliance.ph Chairman Angelito “Lito” M. Villanueva said in a statement on Thursday.

The central bank released a draft proposal for an open finance governance framework and will accept feedback from stakeholders until Dec. 23. When approved, the framework will be applicable to BSP-supervised financial institutions, as well as third-party service providers that are either account information service providers and/or payment initiation service providers.

The framework also calls for the establishment of an Open Finance Oversight Committee (OFOC), which will become an industry-led self governing body overseen by the BSP.

Upon creation, the OFOC is expected to come up with its own membership and participation rules, standards, and procedures, while ensuring a non-discriminatory membership that represents key interest areas in the financial industry.

Mr. Villanueva recommended that the BSP designate the initial core members to work on the details of the framework and guide the group through a governance mechanism.

“Since the OFOC is key to the success of the guidelines, it might be fatal if the OFOC is unable to negotiate among its members regarding matters of governance and membership. A starting point which has more details can allow a core group to move quickly to self-organize,” he said.

Mr. Villanueva added that their group believes that a major hurdle to the framework are data privacy laws including Republic Act (RA) No. 1405 or the Deposit Secrecy Law and RA No. 10173 or the Data Privacy Act.

With this, Mr. Villanueva said the OFOC could streamline forms and agreements that member institutions can use to demonstrate their right to share personal data.

“Alternatively, the OFOC and its members can formulate their own industry Privacy Code for approval of the NPC to mitigate the risks associated with the user of personal information by Open Finance,” Mr. Villanueva said.

The BSP is looking at a tiered implementation of the framework based on data sensitivity, data type, and data holder type. — Luz Wendy T. Noble

Isolation, money worries, fear of disease: Our year in mental health

By Joseph Emmanuel L. Garcia, Reporter

THE INITIAL panic that set in during the beginning of the March lockdown has become something else altogether in the months we have spent indoors.

On the outside, the world continued to move at its usual rapid and sometimes violent pace. But on the inside, millions of people were trapped indoors, worrying about their futures and unable to connect with friends and family. What effect might that ordeal have had on the mind?

“At this point, we’re trying to get by. But the trials come one after the other,” said Dr. Gia Sison. Dr. Sison works in the field of occupational medicine, but is also a mental health advocate. She appears on social media, mainstream media, and podcasts raising awareness of mental health issues.

Dr. Lou Querubin, Chief Medical Officer of Mindcare Club, an organization offering remote mental health services, said: “The most common mental health issues during a disaster, like the coronavirus disease 2019 (COVID 19) pandemic, are anxiety and depression. The COVID-19 viral contagion brought with it a fear-anxiety contagion that stimulated the human instinct for survival. We instinctively shifted into ‘fight-or-flight’ mode, which explains the early episodes of panic-buying, (which was ultimately) an effort to get the fear under control,” she said. “As the pandemic dragged on, people experienced both concrete and ambiguous losses: concrete losses in the form of unemployment, lost income, and the death of relatives and friends.”

Dr. Querubin highlighted the experience of ambiguous loss, a concept introduced by psychologist Pauline Boss. Ambiguous loss “pertains to losses for which we have had no closure, or those that leave us feeling lost and in limbo…The best examples are COVID-19 deaths where people are admitted to hospitals and no visitors are allowed. The fact that many died alone and the bereaved did not have the opportunity to go through rituals of grief and loss — such as a vigil or wake…Another good example is ‘loss of time’. It’s almost been a year now since COVID-19 broke out.  We have all lost so much time for things originally planned — like weddings, travel, vacations, training and education.  Time is a very clear example of ambiguous loss — we have time and yet, we have lost lots of time.  The irony of that concept needs thinking and reflection for each of us to make sense of what we have lost and what we gained at the same time,” she said.

Dr. Sison, meanwhile, said: “We’re already dealing with reality. That’s difficult. It’s something uncertain. We don’t even know when this will end. That in itself is a big stressor. That’s what we’re confronting now.”

Both agree that the COVID-19 struggle looks different when viewed through various lenses. While others mourn the loss of their freedom of movement, others lost their lives and livelihood. Dr. Sison said the pandemic affected privileged people as well as those without it. “It is a battle. Even without the pandemic, every day is a battle for everyone. We have different struggles.”

Dr. Querubin doesn’t view the mental health struggle as anything so straightforward as winning or losing the battle. When the problem has become collective, the analysis becomes more complex. “My thinking is that there are several battles going on at the same time at different levels.

The master narrative underlying everything is the global battle to contain the virus, a public health disaster that is cruelest to the poor and vulnerable everywhere, devastated economies no matter how rich, and overloaded health systems no matter how advanced.

Dr. Querubin added, “The more abstract battle happens in our minds, and in the context of relationships.” She calls this “meaning-making.” “Individuals who are able to reflect and make sense of how they are thinking, feeling, or responding to everything happening around them are the ones most able to understand themselves and how the pandemic is affecting them.”

An unintended consequence of the pandemic is the increased discussion of mental health. Your typical picture of the occasional depressed individual, shut in and confronting one tiring day after another, is multiplied by the millions.

According to a joint statement issued by the Department of Health (DoH) and the World Health Organization (WHO), the National Center of Mental Health (NCMH) reported that as of September, its crisis hotline “has revealed a significant increase in monthly hotline calls regarding depression, with numbers rising from 80 calls pre-lockdown to nearly 400.”

Dr. Sison said she has received an increased volume of messages asking for referrals for psychiatrists and psychologists. “That’s a long-term problem. It’s not just COVID-19 as an illness, physically. There’s already a mental health aspect that we have to incorporate when you want to deal with it holistically.” Dr. Querubin concurred, saying, “There is increased awareness about the mental health needs of populations.”

Dr. Sison added that while there have always been calls for increased awareness and advocacy — she lobbied for the Mental Health Law of 2018 — “It was amplified by the pandemic. More people started to talk about it, again, and again, and again. Consistency is key when you’re in an advocacy. For me, it should never stop.”

Pointing to her own background in occupational medicine, Dr. Sison noted that a bank implemented a mental health policy in October. Dr. Sison posits that the sense of urgency may have stemmed from the blurred lines of working from home, in which the personal and the professional have become intermixed. “That’s something we would only dream about before. I hope more workplaces would have mental health policies in place for their employees,” Dr. Sison said. “They appreciate it, and they acknowledge it, especially in the workplace.”

Both pointed to the coping mechanisms people have adopted since March, such as new hobbies like gardening or cooking. “That is a coping mechanism,” said Dr. Sison. “You find activities, or you find things that you’re happy to do. That’s one thing that this pandemic actually squeezed [out of us]: a lot of people have gone into their untapped talents. They explored a lot of possibilities.”

Dr. Querubin said keeping occupied serves a purpose: “Keeping our hands busy helps us focus our minds on something concrete, and hopefully, pleasurable. Art and music have always played that role in human history. They are proven balms to our soul and psyche.”

While the darkest days of the pandemic may have passed, the stasis it has produced  in our lives remains unresolved. Dr. Sison said one possible remedy might be to relinquish control. “We really have to realize that there are some things beyond our control. We have to draw a fine line between what we can, and what we cannot control.” While many of us cannot defeat the virus on our own or influence policy, we do have a choice in how we choose to react to events.

Dr. Querubin, meanwhile, points again to meaning-making. “The human capacity for meaning-making is an eternal source of inner peace and courage.  It helps us make sense of the external environment and hopefully, enables us to reach a point where we realize the choices we have.  Our awareness of our choices, and the very capacity to exercise that choice — is very empowering.  Meaning-making and realizing that we do have a choice, no matter the circumstance, is one good way to win our internal battle.”

Both also consider keeping in touch with family and friends to be vital. “You cannot go through trials or struggles alone. At some point, you need to reach out,” said Dr. Sison.

Some hope has emerged as drug companies report moving forward with their vaccines, but the pandemic has left wounds that a vaccine alone cannot heal. Dr. Querubin said, “The virus is here and it will stay, like the flu, measles, chicken pox, etc. Perhaps this phase of the pandemic will be over, but COVID-19 as a virus will remain in our midst. From a medical perspective, I will encourage everyone to improve their immune systems by eating healthy, getting enough sleep, maintaining a reasonable level of physical activity that promotes fitness.  If you have a pre-existing illness that makes you high-risk, stick to the recommended treatment regimen with greater dedication.”

Dr. Sison points out that the vaccines may not be released to the general public until the third quarter of next year, adding the delay to the basket of things people worry about daily. Nevertheless, “I think the healing starts today; and every day of the year. We don’t have to wait for 2021,” she said. “You get by; you take it really one step at a time.”

Dr. Querubin added: “From a psychiatrist’s perspective, my recommendation is we heal as we go.  There will likely be no clear endpoint when we can say it is all over. We need to mind ourselves moment to moment, day to day.  Be kind to ourselves and to others as best we can everyday.  We cannot start to heal when everything is over; we heal as we go.”