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An icon of Philippine media

The all-encompassing wave of change has hit Philippine media, well before renowned business magnate Manuel “Manny” V. Pangilinan had come in. Digital media were supplanting newspapers, and both television and radio networks as the Filipino consumer’s main and preferred source of information and entertainment.

Even then, for the Filipinos who still preferred television, it was a two-network town. No one would have imagined that another television network could rise to prominence anymore, especially given how fast the Internet was taking over people’s lives.

Now, Mr. Pangilinan was recently given a special award for his Outstanding Contribution to Asian Television at the 24th Asian Television Awards for championing the television network TV5, which through innovation and shrewd leadership had successfully undergone a revival.

“It’s a validation of a journey [which started] about a decade ago, many thought as foolish to embark. We invested as a third player in a two-network town at the crux of unpredictable times and rapid seismic changes in content creation, consumption, and human behavior,” Mr. Pangilinan said in a speech read by TV5 Chief Executive Officer Jane J. Basas, during the ceremony.

A committed leader

Being one of the country’s most prominent businessmen, Mr. Pangilinan is known throughout the Philippines. The telecommunications giant PLDT, Inc. and the Manila Electric Company (Meralco) are household names to the common Filipino family, and his dedicated patronage to sports has shaped Philippine basketball.

Yet, the award was the first instance which formally acknowledged his critical role in the Philippine media industry.

Mr. Pangilinan or MVP as he is commonly known, serves as the esteemed head of local media conglomerate MediaQuest Holdings, Inc. (MediaQuest), which is the mother company of some of the biggest names in Philippine media.

Established in the 1990s by PLDT, Mediaquest holds under its banner The Philippine Star, BusinessWorld Publishing Corp., TV5 Network, Inc., Nation Broadcasting Corp., and Cignal TV, Inc.

Before Mediaquest announced its acquisition of TV5 in 2010, TV5 was previously known as ABC Development Corp., and had an interesting role in the country’s history. Going back to the 1960s, TV5 has been serving the public with its own brand of journalism even before the Marcos era until it was forcibly shut down in 1972. The network made a remarkable comeback however after the People Power Revolution, growing to the point that it was dubbed the “Fastest Growing Network” in the 1990s.

Nowadays, TV5 is known as one of the three top television networks in the country. Its programs can be viewed worldwide through Kapatid TV5 and is currently available in the Middle East, Guam, North Africa, Europe, Canada, and the United States. The network is based in the 6,000-sqm TV5 Media Center headquarters in Mandaluyong City.

A commitment to charting the future

Meanwhile, The Philippine Star, another historic icon under Mediaquest’s belt, is one of the country’s most widely-circulated newspapers, one of the biggest names struggling under the disruption brought about by digital media.

The paper was first published seven months after the 1986 People Power Revolution. Its founders Betty Go-Belmonte, Max Soliven and Art Borjal were integral in the famous revolution, and as veteran journalists wanted to continue their legacy of serving the country’s return to democracy through honest, accurate reportage.

Through that ideal, The Star has grown and built around it a network of other publications covering a variety of topics, including the monthly magazine People Asia and the Sunday magazines Starweek, Gist and Let’s Eat. The PhilStar Media Group’s sister publications include business newspaper BusinessWorld; Cebu-based, English-language broadsheet The Freeman; Filipino-language tabloids Pilipino Star Ngayon and Pang-Masa; Cebuano-language tabloid Banat, and online news portal InterAksyon.

Eventually, the company caught the eye of Mr. Pangilinan, who, showing his commitment in entering the media industry, acquired The Philippine Star and all its sister publications through MediaQuest in 2014.

The link between Philstar Daily, Inc. and the 5 Network under MediaQuest Holdings has allowed new, innovative forms of journalism to come into existence. Right as digital media have overtaken the lives of Filipinos, flooding them with a variety of informative, entertaining, and sometimes malicious content.

Realizing that the need for credible sources of news and information was greater than ever, MediaQuest announced its flagship news channel One News on CignalTV in 2018. The new channel aimed to draw from the authority and vast amount of experience of MVP’s media networks — some of the biggest and most trusted media organizations in the Philippines, namely The Philippine Star, BusinessWorld, TV5, and Bloomberg TV Philippines — and provide an ambitious and concentrated effort to reinvent the way Filipinos consume and discuss news and current events.

Through the strength and capabilities of established names in print with respected broadcast news institutions, One News sought to keep the ideals of journalism alive in Philippine media, notably values centered around fostering critical discussion about the country’s most pressing issues, analyzing them from different and balanced points of view.

“Why are we doing this? It’s really for all of us to pursue the truth (against) fake news and so forth… that must be our paramount goal,” Mr. Pangilinan said, stressing that in the media business, it is everybody’s duty to tell the truth.

“In our business, or in our group… we should always tell the truth, no matter how much it hurts or how much it damages potentially,” he said. — Bjorn Biel M. Beltran

The steadfast third player in a ‘two-network town’

Earlier this January, the Asian Television Awards gave TV5 chairman Manny V. Pangilinan (MVP) a special award for his Outstanding Contribution to Asian Television. This has much to do with the efforts of making TV5 a competitive player on Philippine television under his chairmanship.

“[This award] is a validation for a journey that — about a decade ago — many thought as foolish to embark,” Mr. Pangilinan recalled on his speech read by TV5 Chief Executive Officer (CEO) Jane J. Basas during the awards night.

“We invested as a third player in a two-network town at the crux of unpredictable and rapid seismic changes in content creation, consumption, and human behavior. It would not have been a worthwhile adventure though if we did not have moments of trepidation.”

Since its acquirement by MediaQuest Holdings, Inc., TV5 joined an industry ruled by few, yet it has grown into a network that serves as an alternative yet worthwhile choice for the viewing public.

Under a new management in 2010, TV5 picked up from its humble yet defining beginnings when ABC 5 became TV5 back in 2008. Unfazed by the country’s reigning networks, it stepped further by providing unique programming along with fresh talent.

The revamped TV5 identifies itself as the “Kapatid” (sibling) network, with a fresh lineup of programs encompassing news, drama, comedy, and sports. Most of these have actually made a mark among viewers, such as TV5’s flagship news program Aksyon; series like Pidol’s Wonderland and Midnight DJ; and reality/game shows such as Face to Face, Talentadong Pinoy, and the Philippine version of Who Wants To Be A Millionaire?.

Also, in its aggressive venture to be a competitive player among the “two-network town”, TV5 was able to get a large roster of talent that brightened up the network’s offerings. These include Maricel Soriano, the late Rodolfo “Dolphy” Quizon, Sr., Vic Sotto, Joey de Leon, Paolo Bediones, Ryan Agoncillo, and Amy Perez, among many others.

Its initial years as the “Kapatid” network has seen TV5 as a fine choice for entertainment. Nonetheless, it is also remarkable for its uniquely delivered news and current affairs through News5.

It was TV5 that launched the first news-oriented station on the FM band, Radyo5 92.3 News FM in November 2010. A year later, TV5 launched AksyonTV, the first 24-hour Filipino language news channel on free-to-air TV (UHF channel 41).

TV5 has also become a household name for sport, serving as the broadcaster of the Philippine Basketball Association (PBA) and the Philippine SuperLiga (PSL), among other major games in the country.

The network also carried many of the world’s big sporting events, such as the 2012 and 2016 Summer Olympics; 2014 and 2018 Winter Olympics; 2014 Summer Youth Olympics; 2018 Asian Games in Indonesia; and the 2019 Southeast Asian Games.

Furthermore, with entertainment being a quite difficult area to win among viewers, TV5’s focus have gradually shifted to sports as the network’s leadership transferred to basketball coach Vicente “Chot” P. Reyes.

It was under his helm that the network partnered with the sports broadcasting giant ESPN to reinforce TV5’s sports division as ESPN5.

With this tie-up, which was kicked off in 2018, TV5 integrates its local programming with ESPN’s large roster of live sports coverages, original productions, and studio programs. It also began airing the Philippine edition of ESPN’s flagship newscast SportsCenter.

Continuing this shift, TV5’s sister channel, AksyonTV, was later on relaunched as 5 Plus, carrying non-mainstream sport and sport-related content geared towards a younger audience.

These brave moves from TV5 in the recent years not only kept the network an alternative choice on local TV. It also helped the station move forward in spite of tough competition, as Ms. Basas, who took over as TV5’s CEO and president in 2019, noted.

“TV5 has improved on a year on year basis. In terms of losses, we have been able to manage the losses again because the decision to go into sports has actually allowed us to become more efficient on how we program the grid,” Ms. Basas, who is also the president and CEO of Cignal TV, was quoted as saying in a BusinessWorld report last October.

Nonetheless, an opportunity to make TV5 more engaging to the public is seen. According to Ms. Basas, the network currently plans “to really maximize the other blocks in our daily grid to make sure that it appeals to more and more customers.” Among these blocks, entertainment programs are the priority.

“Right now we do have the primetime dedicated to sports and that will stay. News will also have to stay at the current block, but everything else, from morning to late night, is open to entertainment,” Ms. Basas said.

With the franchise of the network recently renewed, TV5’s journey continues with the determination to remain relevant and be engaging to Filipinos. — Adrian Paul B. Conoza

From distributing channels to producing innovative and intelligent content

One of the sectors within the media industry Chairman Manny V. Pangilinan (MVP) initially entered through MediaQuest Holdings, Inc. is direct broadcast satellite. After the firm acquired a majority stake in the then GV Broadcasting System in 2007 and renamed it to Mediascape, Inc. the following year, a direct-to-home (DTH) satellite service known by many as Cignal was launched in 2009.

A decade forward, Cignal TV now thrives as the country’s premier DTH satellite provider, and it has also ventured beyond providing content as the company broadcasts several exclusive channels and produces in-house content.

As a DTH service, Cignal currently carries 89 standard definition (SD) and 31 high definition (HD) channels, encompassing free-to-air, movie, sports, kids, news, general entertainment, educational & documentary, music, foreign, religious, and home TV shopping categories.

Cignal’s lineup also consists of varied mix of audio channels, especially feeds from radio stations around the country; as well as Pay-Per-View subscription offers for on-demand viewing.

Cignal also distributes its own channels, namely One News, One PH, Colours, One Sports, Sari-Sari Channel, and PBA Rush.

One of the provider’s most-known channels, One News was launched in May 2018. Cignal’s flagship 24-hour news channel joins the forces of The Philippine Star, BusinessWorld, News5 (TV5’s news division), and Bloomberg TV Philippines.

For MVP, bringing together these reputable media outfits is a great way of pursuing truth at a time when fake news can hold anyone captive. “In our business, or in our group… we should always tell the truth, no matter how much it hurts or how much it damages potentially,” he was quoted as saying in a report by The Philippine Star on the launch of the channel two years ago.

One PH, the latest addition by Cignal, is a 24-hour Filipino-language news and information channel that signed on last August 2019. Tagged as “Ang Boses ng Nagkakaisang Pilipinas”, the channel brings together the resources of Pilipino Star Ngayon, The Freeman, Radyo5 92.3 NewsFM, and News5 for its content. Aside from its uniquely-delivered newscasts, One PH has programs that tackle financial management, legal procedures, entertainment and gossip, motoring, and sports — all tailored for the general public.

Colours, the longest-running Cignal-exclusive channel so far, shows magazine programs catering to female audiences, along with local films, foreign lifestyle programs, as well as children shows. One Sports, meanwhile, carries big sporting events in the country and overseas, including Philippine Super Liga, Spikers’ Turf, WWE SmackDown, PGA Tour, LPGA, and National Football League.

In partnership with Viva Entertainment Inc., Cignal also airs Sari-Sari Channel, an entertainment channel that promotes local movies and TV dramas tailored to a wide range of audiences. Original productions by Studio5 as well as box office hits from Viva Films can be viewed on the channel.

Serving as the go-to channel for the PBA fan, PBA Rush not only broadcasts the live telecast of PBA and PBA D-League games, but also PBA-related magazine and talk shows and documentaries.

Beyond carrying channels

Aside from DTH, Cignal offers online streaming of its content through its video-on-demand and linear programming web platform, Cignal Play. Recently, last August, BusinessWorld reported that Cignal Play will be relaunched as a standalone product for Cignal’s original content and shows from its partners such as HBO and AXN.

Cignal also began its venture to produce “fresh, relevant and intelligent content to the screens of Filipinos” when it launched Cignal Entertainment in 2017. It partnered with creative outfits such as Sari Sari Network, Unitel Productions, The IdeaFirst Company, Content Cows Company, Fox International, and Masque Valley Productions.

Cignal Entertainment’s first entry is Tukhang, a four-part mini-series that told the stories of individuals trying to survive each day in the context of the country’s war against illegal drugs.

Succeeding this production is Ang Babaeng Allergic sa WiFi, shown in 2018 at Pista ng Pelikulang Pilipino. After being screened in theaters, this original movie has also reached a global audience via popular streaming platform Netflix since last year.

Last year, Cignal Entertainment produced two movies, namely Born Beautiful and Maledicto.

As it innovates with fresh channels on digital TV and competitive content on movie theatres and online, Cignal has seen notable growth, with the latest number of subscribers amounting to 2.2 million in the third quarter last year. For Cignal TV President and Chief Executive Officer Jane J. Basas, this makes the firm “the biggest” in the country today.

Looking forward to being a more relevant content provider, Cignal plans to offer more digital services to keep its young viewers.

“The goal is also to come up with new initiatives that will allow us to remain relevant moving forward because there’s actually a change in viewing behavior,”  Ms. Basas siad in a BusinessWorld report last November. “There’s a particular segment of the market, particularly the more premium segment on the young who now have more access to more digital platforms. So we [want to] make sure that Cignal pivots towards digital services.” — Adrian Paul B. Conoza

A strong, reliable media network

Manuel “Manny” V. Pangilinan — also known as MVP — is popular to many as a prominent business magnate behind giant firms like PLDT, Inc., Manila Electric Co. (Meralco), and Maynilad Water Services, Inc., making him a crucial player in nation building. While Mr. Pangilinan continuously receives credits from all the successes that these companies have achieved, the 73-year-old businessman, however, is rarely acknowledged with all of his outstanding contributions in the country’s media landscape.

Perhaps lesser known by many, Mr. Pangilinan also serves as the esteemed head of local media conglomerate MediaQuest Holdings, Inc. (MediaQuest). It is the mother company of some of the biggest media players in the country today which have a proven track record of credible and strong journalistic expertise, and are highly significant in ensuring transparency and democratic order in the country.

One prominent media company under MediaQuest’s umbrella is the TV5 Network, Inc., the country’s third major player in the television market. It was established by newspaperman Joaquin “Chino” Roces in 1960 as Associated Broadcasting Corp., which later renamed as Associated Broadcasting Company, then ABC Development Corp.

At present, its assets include the broadcast television networks 5 and 5 Plus; the national radio station Radyo5 92.3 News FM; the regional radio network Radyo5; and satellite television channels Colours, One Sports, One News, One PH, Sari-Sari Channel, and PBA Rush. It also operates international television channels Kapatid Channel and AksyonTV International; as well as digital and online portals Digital5, TV5.com.ph, ESPN5.com, and News5 Digital.

The Philippine Star, one of the country’s most widely-circulated newspapers, is also part of the cross-media conglomerate. The paper was founded by veteran journalists Betty Go-Belmonte, Max Soliven and Art Borjal a few months after the EDSA Revolution in 1986.

The newspaper is currently run by Philstar Daily, Inc., which also publishes the monthly magazine People Asia and the Sunday magazines Starweek, Gist and Let’s Eat. As part of the PhilStar Media Group, its sister publications include business newspaper BusinessWorld; Cebu-based, English-language broadsheet The Freeman; Filipino-language tabloids Pilipino Star Ngayon and Pang-Masa; Cebuano-language tabloid Banat; and online news portal InterAksyon.

Going back to the 1990s, MediaQuest was established by PLDT through its retirement fund, and first launched with Home Cable, a direct-to-home cable TV subscription service and second largest cable TV company through Unilink Communications. The Home Cable later on merged its CATV operation to Sky Cable Corp.s, and created Beyond Cable Holdings Inc. After several years, however, Home Cable ceased operations, and PLDT sold its stake in SkyCable to the Lopez Group of Companies.

Meanwhile, MediaQuest strengthened its portfolio over the years. In 1998, it bought the Nation Broadcasting Corp., a local radio and TV network, from the consortium led by the Yabut family and Manny Villar.

It also acquired in 2007 GV Broadcasting Systems, a direct-to-home satellite provider and radio network from Satventures, Inc. of the Galang family; and launched myTV as a mobile TV service in the same year. GV Broadcasting Systems was later renamed as MediaScape, and officially launched its satellite pay TV service Cignal in 2009.

One of MediaQuest’s biggest acquisitions happened in 2010 when it bought majority stake in ABC Development Corp. and blocktimer Primedia, Inc. from businessman Antonio O. Cojuangco, Jr.

In the following years, MediaQuest continued to expand. It gained control of BusinessWorld in 2013, and acquired majority ownership of The Philippine Star in 2014. A year after, TV5 Network and Cignal made a partnership with United States-based Bloomberg Television to launch a local franchise of the international news channel named Bloomberg TV Philippines.

At present, media outlets under the umbrella of MediaQuest — from print to radio, television, and online — remain as reliable sources of information, and continue to evolve in their respective niches.

The most recent development that the local media conglomerate introduced in the Philippine media landscape was the introduction of One News, a flagship news station on Cignal TV. It is an aggrupation of the news division units within the MediaQuest, namely The Philippine Star, BusinessWorld, TV5, and Bloomberg TV Philippines, which aims to continuously deliver credible news to the Filipino community.

“That’s what we want to be known for: credibility, trust. Essentially, we want to become a news authority, especially in this age when there’s so much talk about fake news all over the place. We need to reassure the public that there are still organizations like us that invest in this type of institutions,” MediaQuest President Ray C. Espinosa said at the launch of One News in May 2018.

“Gathering the content from them, curating and moderating it, we should be able to achieve a viewer base that understands that news is about trust and the organizations behind this news channel are eminently trustworthy news institutions in their respective rights,” Mr. Espinosa added. — Mark Loius F. Ferrolino

A champion of new media

When the MVP Group of Companies acquired TV5 about a decade ago, Manny V. Pangilinan had all but predicted the future of Philippine media.

Acknowledging the various waves of digital transformation changing the media industry in a speech, he announced that TV5 would aim to become not simply a media content provider, but a dynamic digital leader.

Mr. Pangilinan noted at how Filipinos at the time were increasingly becoming more reliant on digital technology and the Internet. Anything from news, to entertainment, and even their preferred forms of communication were becoming tied to smartphones and social media platforms.

“Indeed the Internet has become a true medium for the masses, an important tool for democratizing because of its openness, its publicness, and ease and speed of communication. Indeed the Internet is changing the way we think, changing the way we act, changing our habits and customs. You’re being changed not only by the media you consume, but by the way you consume it,” he said.

“The speed and convenience by which the medium spreads the message virally can be frightening especially if that speed were collared or heightened by emotion,” he added.

In essence, the business tycoon saw the power of digital media, likening its arrival with the end of the world as we knew it. In the new world of his vision, Mr. Pangilinan saw an empowered digital consumer, and the game-changing factors were driving the media industry into a future of uncertainty.

“Indeed we’re looking at the future in many places, already the present, where the consumer is empowered with the choice of when, where, and how he or she wishes to receive content. Linear, network-dictated schedules are out. User-managed content is in, received on a range of digital devices other than the static TV set in your living room. We want content to follow the user everywhere on demand, just as e-mail now follows you everywhere,” Mr. Pangilinan had said.

It is the job of content producers, he pointed out, to navigate this new digital landscape and invent new ways to deliver on the rapidly evolving demands of the digital consumer.

MediaQuest, Inc. (MediaQuest), the mother company of some of the biggest names in Philippine media, such as The Philippine Star, BusinessWorld Publishing Corp, TV5 Network, Inc., Nation Broadcasting Corp., and Cignal TV, Inc., has since strived to meet that ideal, enacting sweeping changes to its structure and becoming among the first media network to offer a wide array of online content.

Even in MVP’s non-media ventures, the power of social media is not ignored. In 2017, Smart Communications encouraged its work force to embrace the digital world, in line with its ongoing evolution as a digital company.

Smart became the first telco in Southeast Asia to use Workplace by Facebook, a social media platform for enterprises that enables employees to go beyond traditional means of internal communication. Having nearly identical features with Facebook, Workplace enabled employees to have interactive discussions with their peers and even their bosses for easier communication.

Employees could join several interest groups, share information and ideas, ask questions, get real-time company news, and get instant feedback from colleagues. They could also use Work Chat, which is similar to Facebook Messenger, to send instant messages and do voice and video calling.

As many as 5,000 employees were active on the platform weekly, according to Liza Sichon, Smart’s chief people and culture officer. She added that Workplace was helping break down traditional work silos and was facilitating a freer exchange of ideas among Smart’s thousands of employees.

“Our evolution as a digital company can be seen not just in our commercial offerings and network capability, but also in our people culture. As we enable more Filipinos to enhance their lives via digital technologies, we are also promoting the digital shift within our ranks,” she added.

Smart’s use of Workplace recently won a Gold Anvil at the Anvil Awards, contributing to Smart’s recognition as the Company of the Year after it won a total of 24 Anvils.

MVP concluded his speech about the changing media landscape by saying, “The more we empower our citizens and content creators to make important decisions for themselves, not only about products and services they desire or develop but even about politics, the better.”

“The word viral will someday be an advertisers’ dream and a wayward politician’s nightmare. Either way, it’s proof positive about the growing power of the Net,” he added. — Bjorn Biel M. Beltran

Longstanding institutions with a record of credibility

Some of the most prominent brands under the umbrella of MediaQuest Holdings, Inc. (MediaQuest), the media investment arm of the Manuel V. Pangilinan group, are print media companies that continuously thrive even in the digital age. With some key adjustments in their business models, they still find a niche in today’s fast-changing times and remain as effective vehicles to reach the public. Of all the developments and increasing competition in the industry, these newspaper brands stay true to their commitment of delivering accurate, fair, and unbiased reports.

The Philippine Star, which is one the country’s most widely circulated newspapers, was added to the expanding media portfolio of Mr. Pangilinan when MediaQuest obtained a majority stake of 51% in the newspaper in 2014. As early as 2009, Mr. Pangilinan had expressed his interest in getting a stake in The Philippine Star in a bid to dominate the multimedia industry. He then acquired a 20% stake in the newspaper in the following year.

It was in 1986 when The Philippine Star was founded by veteran journalists Betty Go-Belmonte, Max Soliven and Art Borjal a few months after the EDSA People Power Revolution. The first issue of the newspaper had eight pages, and was printed in a few thousand copies at Philstar Daily, Inc.’s printing press in Port Area, Manila. It carried the motto “Truth Shall Prevail,” which reflects its editorial policy of presenting both sides of the story instead of the prevailing “scoop mentality” of that time.

Aside from The Philippine Star, Philstar Daily also started publishing a Filipino-language tabloid Ang Pilipino Ngayon, which eventually changed into Pilipino Star Ngayon. It caters primarily to lower income readers in the country, providing them intelligent news and opinion with decent presentation.

At present, The Philippine Star is the biggest newspaper-based multimedia company in the country. Its lead in circulation continues to grow, as it tied with other broadsheets in Mega Manila. Because of the strong purchasing power of its readers, the paper continues to lead in advertising revenues over other broadsheets for several consecutive years. 

To address digital demand, The Philippine Star embarks on various initiatives, including the introduction of different online portals and mobile apps. It also invests in new media platforms such as Philstar TV, Philstar Outdoor, and Viewtorials.

Capitalizing on its strength in creating public awareness and shaping informed public opinion, The Philippine Star also hosts events that raise discussions on some issues in the society. Last November, for instance, the newspaper company organized a forum titled “Women Today: Innovators and Agents of the Future.” The event gathered inspiring women in the country and decode how they effectively carry out their roles in the society. Related matters such as empowering women and eliminating inequalities between genders were also tackled.

The Pilipino Star Ngayon, on the other hand, remains as the country’s leading tabloid among its competitors in terms of advertising revenue and circulation. It also opened its doors to the online world and explored different social media platforms to further increase its reach.

Meanwhile, MediaQuest also gained control of BusinessWorld, the country’s leading business newspaper, with its subsidiary Hastings Holdings, Inc. in 2013 by increasing its stake from 30% to 76.67% and infusing P100 million into the company over a 12-month period.

In a move meant to “strengthen the distribution and operations” of the country’s premier business daily, the Philippine Star Printing Company, Inc. acquired 76.63% of BusinessWorld Publishing Corp. from Hastings Holdings in 2015.

BusinessWorld represents five decades of professional economic journalism, which roots can be traced in 1967 when respected journalist Raul L. Locsin started BusinessDay. It was the first business daily in Southeast Asia, dedicated to “competent and responsible reporting of the news.”

Mr. Locsin, however, decided to close the paper in June 1987 due to a labor problem, and opened BusinessWorld a few weeks later with the non-striking workers. The paper underwent significant changes in the following years, especially in 2003 when Mr. Locsin died due to a long-term illness.

The inclusion of BusinessWorld in the Philstar Media Group in 2015 has transformed the newspaper into a moving force in the business community. It remains as a trusted media entity at present, delivering in-depth news stories, columns, features, and special reports that policy makers and businessmen can rely on in making important decisions.

To capture the younger market of future business leaders, aspiring professionals and budding entrepreneurs, BusinessWorld transformed its university publication to a digital-first platform called SparkUp. It engages the readers through its Web site and print magazine issues that bring timely and well-rounded stories, creatively executed in more customize and fun ways.

Banking on its extensive influence and indisputable expertise, BusinessWorld also introduced high-impact on-ground events, which have served as great avenues for industry and government leaders to converse on key challenges and opportunities for the nation. Some of the most notable events that the company successfully organized were the annual BusinessWorld Economic Forum, the BusinessWorld Industry 4.0 Summit, and the BusinessWorld Cybersecurity Forum.

Moreover, to continuously thrive amid all the changes disrupting the industry, BusinessWorld keeps on innovating itself by coming up with special contents and executions, and utilizing different communication platforms.

As part of the PhilStar Media Group, the other sister publications of The Philippine Star, Pilipino Star Ngayon and BusinessWorld also include Cebu-based, English-language broadsheet The Freeman; Filipino-language tabloid Pang-Masa; and Cebuano-language tabloid Banat. — Mark Louis F. Ferrolino

PAL suspends charter flights to China

Flag carrier Philippine Airlines (PAL) on Thursday announced the suspension of its charter flights between Kalibo,Aklan and three cities in mainland China amid the coronavirus outbreak.

PAL said its decision to suspend its charter flights between Kalibo and Nanjing, Hangzhou and Shanghai is in line with the travel restriction being imposed by the government of the People’s Republic of China.

“Charter flights between Kalibo and parts of China (Nanjing/ Hangzhou / Pudong Shanghai) have been suspended, as the Chinese authorities implemented precautionary measures to restrict outbound tourist travel from mainland China,” the flag carrier said in a statement on Thursday.

“We continue to maintain our scheduled flights between Manila and Beijing, Pudong Shanghai, Guangzhou, Jinjiang, Xiamen, Hong Kong and Macau. We will advise if there are any changes based on our daily assessment of the situation and the slowdown in travel from China,” it added.

PAL Spokesperson Cielo C. Villaluna told BusinessWorld last Tuesday that the impact of the coronavirus outbreak on their operations was “not yet significant.”

PAL, which operates 69 weekly flights to and from China, has advised its passengers to postpone their flights if they feel unwell amid coronavirus outbreak.

Passengers with flights to China are also given the option to rebook and refund their tickets until Feb. 29.

The coronavirus outbreak started in Wuhan, China, with the death toll rising to 170, Reuters reported yesterday.

Some 7,711 people in China were also infected, on top of the 104 confirmed cases in other countries: Thailand, Japan, Hong Kong, Singapore, Taiwan, Macau, Australia, Malaysia, United States, France, South Korea, United Arab Emirates, Germany, Canada, Vietnam, Nepal, Cambodia, Sri Lanka and Finland. — Arjay L. Balinbin

Drivers of growth

As trucks and utility vehicles continue to serve business operations and passenger transportation, the local commercial vehicles (CV) achieved steady growth last year, driving the recovery and progress of the automotive industry all throughout.

The joint figures of Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Truck Manufacturers Association (TMA) indicated growth in the industry’s sales every month in 2019, apart from the 15% decrease in January and a 2.4% drop in August. Nonetheless, each month indicated the prominence of CVs.

February’s figures tallied 67.82% share from CVs, or 17,856 units, although 3% lower than January’s CV sales. When auto sales picked up in March, CVs kept leading with a larger 71.36% of total sales. This makes the segment rising by 3.7% to 59,216 vehicles in the first quarter from 57,130 units in 2018.

April, which had very little increase in sales (0.8%), saw CVs slightly decreasing with 70.31% of the car sales. The following month saw auto sales picking up once more, with CVs contributing 70.79% of the total. With sales recovering in June, CV sales grew by 3.9%, driven by 18.1% hike in light commercial vehicles (LCV) sales in contrast to a 33.1% drop in Asian utility vehicles (AUV) and 17.6% decrease in light trucks, among others.

Also, by that time, the year-to-date sales of CVs increased by 5.3% to 121,717 units from 115,606 vehicles in 2018’s first half. LCV sales increased by 23.1% to 98,783 units from 80,248 and light trucks were up by 8.8% to 3,778 vehicles from 3,473. AUV, however, dropped by 42.9% to 16,147 vehicles from 28,279.

Likewise, AutoIndustriya.com, in consolidating figures from CAMPI, TMA, and Association of Vehicle Importers and Distributors (AVID), reported positive growth within the commercial vehicles segment in the first half of 2019. In both first and second quarters, the CV segment took a larger share of sales. From 65,440 units in Q1, sales gained 2.88% to 67,330 units in Q2. Hence, the first half of 2019 saw the CV dominating the market by 67.52%, with 195,066 units sold.

CAMPI and TMA account for 89% of the industry’s overall sales projection, while AVID accounts for 11%.

At that time, CAMPI and TMA saw the industry on the verge of recovery and stability. “We remain very optimistic that the local auto industry is already on a path of steady growth after we conclude the first half of the year on a positive note,” CAMPI President Rommel R. Gutierrez was quoted as saying in a BusinessWorld report last July.

That steady growth, along with the constant domination of CVs, was definitely observed in the following months as CAMPI and TMA tracked the segment’s continuing lead in the automotive industry. Albeit car sales dropping after seven months, CVs accounted for 70.3% of the total shares in August. As the sales bounced back in the following months, CVs got 69.45% of the total sales in September and 70.69% in October.

In November, when CAMPI and TMA marked the biggest monthly sales (34,465 units) in 2019, CVs showed continuous growth, with 72.29% of the market share. The sales even grew further by 8.1% before the year came to a close.

Overall, a “slightly recovered” automotive industry last year was driven by the CV market, which accounts for 69.5% of the market. The annual car sales in 2019 grew by 5% to 260,744 vehicles from 248,390 in 2018. Within the CV segment, LCVs and light trucks lead with 11% and 3.9% increases, respectively, in contrast to the lower sales of AUVs, trucks, and buses.

“The year 2019 has been challenging for the industry due to various internal and external factors. Thankfully the industry’s collective efforts, supported by sustained economic growth, have paid off. We will not rest on our laurels as we aim for further growth in the coming months, and hopefully for the whole of 2020,” Mr. Gutierrez was quoted as saying earlier this January.

In light of this progress in the local CV market, the global counterpart is projected to undergo a technological transformation brought by “new types of powertrains, rapid progress in autonomous driving technology, and the explosion in connectivity”, according to research by the Boston Consulting Group released last October on its website.

The global management consulting firm tallied 120 million units on the road worldwide in 2018, and it found 11.4 million LCVs and 3.3 heavy-duty or medium-duty trucks sold that same year, leading them to conclude that CV sales are slowly growing worldwide, and is expected to grow by 2% annually through 2030.

“Overall industry growth will depend on smaller markets throughout the rest of the world, where the modernization of road networks and commercial transportation is an ongoing project,” BCG’s study read.

The research also expects earnest adoption of new-energy vehicles, powered by technologies such as liquefied natural gas, hydrogen fuel cell, and battery-powered electric, which “will most likely become the most mainstream of the three technologies globally.” — Adrian Paul B. Conoza

A versatile partner for your small business

Among the most difficult challenges to overcome as a small business owner is coming up with the capital to run an operation. Not only do they have to deal with the expenses of labor, materials, and overhead, a lot of the time starting businesses need some form of reliable transportation.

People and goods need to travel, and vehicles suited for the wear and tear of commercial operations are expensive.

Which is part of why many Filipinos are choosing more versatile commercial vehicles lately. According to a joint report from the Chamber of Automotive Manufacturers of the Philippines, Inc., and Truck Manufacturers Association (TMA), 369,941 vehicles were sold last year, up 3.5% year on year, mainly due to improved sales of light commercial vehicles and light trucks.

The report showed that commercial vehicle sales for 2019, which accounts for 69.5% of the market, grew 5% to 260,744 vehicles from 248,390 in 2018. An 11% and 3.9% rise in sales of light commercial vehicles and light trucks, respectively, offset the lower sales of Asian utility vehicles or AUVs (-15.4%), trucks and buses.

It is not hard to see why. A pickup truck is designed for practicality and function, offering versatility and power for all manner of use.

As automakers have discovered new and more effective ways of reducing the fuel consumption of vehicles, larger, heavier vehicles such as trucks are more efficient than ever. Modern designs, fuel-saving technologies integrated in smaller displacement engines, as well as advanced structural materials to reduce overall weight all have been leaps towards making a more economic vehicle.

Meanwhile, the size of trucks are proven to be a boon on the road, at least in terms of safety. Aside from holding more mass between a passenger and the hostile elements of the road, trucks also offer bigger crush zones, and a heavier weight to keep it on the ground in cases of crashes.

According to the Insurance Institute for Highway Safety (IIHS) in the US, a heavier vehicle will typically push a lighter one backward during the impact, putting less force on the occupants of the heavier vehicle and more on those in the lighter vehicle. The organization’s fatality data even goes as far as to show the mortality rates between passengers of lighter vehicles and heavier ones. The lowest 2015 death rate by vehicle type is for very large SUVs: 13 deaths per million registered vehicles. The highest is for mini cars: 64 deaths per million registered vehicles.

Of course, none of this is at the cost of power. Trucks are dependable in a broad range of terrain. In a flood-prone country like the Philippines, it pays to have a bigger vehicle to push through adverse conditions. The higher stance can allow trucks to operate in roads sedans cannot, offering a dependable investment for the days when you really need some semblance of safety. Trucks are also better off-road, making them better at navigating unpaved roads in the provinces or exploring new places.

As both a family vehicle and a business vehicle, trucks provide spacious interiors, fuel economy, and dependable performance. A trunk can serve both as a means of logistics or simply as a comfortable vehicle for family vacations, making them the perfect asset for business owners on a budget. — Bjorn Biel M. Beltran

Infra spending seen recovering

By Beatrice M. Laforga
Reporter

INFRASTRUCTURE spending would probably recover this year with a national budget already in place, after lagging in the 11 months through November, the Budget department said on Thursday.

Infrastructure expenditures jumped 28.6% year-on-year to P80.9 billion in November, even as the 11-month tally fell 2.6% to P709.4 billion, data from the agency showed.

“We see the economy firing on all cylinders this year with substantially higher government spending on infrastructure and social services, stronger domestic consumption responding to a benign inflation, and a revitalized agricultural sector,” Finance Secretary Carlos G. Dominguez III said in a speech at an event in Makati City yesterday.

“Surely, the public spending side of the growth equation will spur economic activity over the next few months,” he added.

Budget officials traced the spending surge in November to payments made for completed and partially completed infrastructure projects of the Public Works and Transportation departments. Projects covered included roads, bridges, flood control structures, sea and airports.

Payments of the Transportation department for right-of-way acquisitions contributed to higher spending, the Budget department said in a report.

Construction of buildings for the Land Transportation Office and Land Transportation Franchising and Regulatory Board also lifted spending during the month, it said.

“The surge may have come from the government’s spending catch-up plan,” UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

“The government has been trying to disburse the 2019 national budget since its late passage into law last April 2019,” he added.

The Budget department report traced the 11-month lag in infrastructure spending to the delay in the approval of last year’s national budget and an election-related spending ban.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the economy would probably grow by 6.4% to 6.8% this year as investments pick up.

“We still have more drivers,” he said in a speech at an insurance event yesterday, noting that investments or capital formation accounts for about 30% of the Philippine economy.

“So that would be another surprise that could come, because loan growth only started to pick up,” he added.

First-quarter gross domestic product growth (GDP) could quicken by as much as 7%, he said, noting that this year’s P4.1-trillion national budget had been enacted as early as Jan. 6.

“It would be a factor on how fast the government would catch up on spending,” Mr. Ricafort said, referring to the first-quarter infrastructure spending performance.

The economy grew by 5.9% last year, slower than expected and missing the government’s 6% to 6.5% goal. It was also slower than GDP growth of 6.2% in 2018.

Growth last year broke the seven-year streak of at least 6%, and was the slowest in eight years.

“We still consider 5.9% (growth) relatively decent and resilient,” Mr. Ricafort said, citing government underspending and the effects of the US-China trade war.

Socioeconomic Planning Secretary Ernesto M. Pernia earlier said a percentage point was lost due to the delayed passage of last year’s national budget, which left government programs and new infrastructure projects with no funding.

Projects were further delayed by the 45-day public works ban before the midterm elections in May 2019.

BSP eyes at least 50 bps policy rate cuts this year

THE CENTRAL BANK is still looking to cut rates by at least 50 basis points (bps) this year, its chief said on Thursday.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said while the central bank will remain “data dependent,” it still has “a long way to unwind” the policy tightening it did in 2018 to quell inflation.

Asked whether the central bank will still cut rates at least by 50 bps as he said in December, Mr. Diokno told reporters at a briefing held at BSP on Thursday: “50 basis points this year? Yes. Still.”

Mr. Diokno has also said a 25-bp cut is possible as early as this quarter.

The BSP Monetary Board will hold its first policy meeting for the year on Feb. 6. Its other review for the quarter is on March 19.

Benchmark rates currently stand at 3.5% for the overnight deposit facility, four percent for overnight reverse repurchase and 4.5% for overnight lending following 75 bps worth of reductions implemented last year.

These cuts partially reversed the 175 bps worth of rate hikes in 2018.

The economy expanded by an eight-year low of 5.9% last year, missing the low end of the government’s 6-6.5% gross domestic product (GDP) growth target for 2019.

Mr. Diokno said the BSP’s policy decision next week will mainly depend on inflation and other data and need not follow the US Federal Reserve’s move to keep rates steady at their first review on Jan. 28-29.

“The reading right now is that maybe the Fed might cut another 50 basis points. Maybe one cut in the middle of the year and another one at the end of the year. That’s the new reading… Maybe we will do our own analysis on inflation,” he said.

He added that being data dependent means not only assessing previous data but also projections.

“[It] looks like petrol prices will continue to go down. [It] looks like food inflation will continue to go down. So let’s see,” he said.

IMPACT FROM TAAL, VIRUS
Meanwhile, the central bank said its initial assessment showed Taal Volcano’s eruption could have a minimal impact on gross domestic product growth in the first quarter.

“So our estimate is it’s between P4.3 billion to P6.7 billion. The total economic GDP is around P20 trillion,” Mr. Diokno said. “The impact of the eruption could result in the slightly lower growth of output in the [Calabarzon] Region for the first quarter of 2020.”

“While we do not expect this to substantially dampen the country’s growth prospects for 2020, we are mindful that the threat of the more dangerous eruption has not fully dissipated,” he added.

The Philippine Institute of Volcanology and Seismology lowered Taal Volcano’s alert status to level three from four on Jan. 26. This has allowed some of about a million people displaced to go back to their hometowns.

On the other hand, the central bank said they are still looking into the impact of the spread of the novel coronavirus from China to the country as they have mostly seen its effect on the Chinese economy, BSP Monetary Policy Sub-Sector Officer-In-Charge Dennis D. Lapid said.

“But an emerging assessment is that it could be short-lived compared to previous similar disease outbreaks. This time around many of the governments have already learned… Authorities in the region are much better placed…,” Mr. Lapid said.

He added that what complicated the situation is that the spread of the virus coincided with the Lunar New Year, when a lot of people in China travel.

Mr. Diokno said a part of the response of the Chinese government to the outbreak is to extend the holiday.

“I think unlike the previous incidents, the Chinese government is in a better position to contain it and I think it’s less fatal,” Mr. Diokno said.

The Health department on Thursday confirmed the first case of the novel coronavirus in the Philippines. — L.W.T. Noble

Virus outbreak to have short-term effect on tourism sector — Pernia

THE NOVEL CORONAVIRUS (2019-nCoV) outbreak is likely to have a short-term impact on the country’s tourism sector, according to economic managers.

This as health officials on Thursday reported the first case of the new coronavirus in the Philippines.

“I think it’s likely to just have a short-term impact because given the measures being done to minimize the (spread of the coronavirus)… It shouldn’t take long for that to have an effect on the economy,” Socioeconomic Planning Ernesto M. Pernia said when asked about the outbreak’s potential impact on tourism during a press conference on Thursday evening.

To curb the spread of the virus that has now killed 170, China announced a ban on outbound organized tour groups.

According to data from the Department of Tourism (DoT), China was the second-highest source of foreign tourists during the January-November period last year, accounting for around 22% of the 7.5 million visitors in the Philippines.

Finance Secretary Carlos G. Dominguez III, however, said it is still too early to come up with projections on the decline in tourism revenues due to the coronavirus outbreak.

Mr. Pernia pointed out there may be savings on foreign exchange, as some Filipinos may choose to forego overseas travel.

“Maybe to some extent we will be saving on foreign exchange since the travel of Filipinos, to China for example, will be limited, will be curtailed and also to other Asian countries. I think Filipinos will be more careful in going to these countries so there will be, they won’t be spending foreign exchange,” he said.

In a report on Thursday, Moody’s said several Asian-Pacific economies are “vulnerable to a decline in tourism from China.”

“The outbreak will take a toll on tourism sectors elsewhere in the region, and places outside the region that receive tourists from China… The fear of contagion could dampen consumer demand and affect tourism, travel, trade, and services in Hong Kong, Macao, Thailand, Japan, Vietnam and Singapore, which have been the top destinations of Chinese tourists in recent years,” Moody’s said.

“We expect the risk of potential negative spillovers to domestic tourism in neighboring countries to be higher than during SARS because Chinese nationals now make up the largest share of visitors to other Asia-Pacific economies,” it added.

S&P Global Ratings, on the other hand, noted that the coronavirus outbreak is “likely to hit travel and consumption activities.”

“In a scenario of widespread infection, it could materially weaken economic growth and fiscal positions of governments in Asia,” S&P said in a report. — Beatrice M. Laforga

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