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More Globe offices nationwide using clean energy

Globe announces more of its offices are now operating on clean energy.  This move is aligned with the telco’s ambition of reducing its carbon emission by transforming its energy usage to renewables. Globe is continuously innovating to enhance energy and resource efficiency, undertaking best practices beyond regular compliance in its day-to-day operations. 

Just recently, Globe added two more sites in Makati, one in Quezon City, and one in Tarlac which brings its roster of energy-efficient and environmentally friendly offices to 7 total sites across the Philippines.

Previously, Globe has announced that three of its corporate offices including its headquarters in Taguig, Quezon City, and Cebu have achieved carbon neutrality. The 3 Globe corporate offices have a combined carbon reduction of 2,919 tCO2e or equivalent to the emissions of a gasoline-fueled car being driven for 11,621,563 kilometers. These feats have earned Globe the Gold Standard Verified Emission Reduction (VER) which assures the company’s capability to declare 100% offsetting of carbon dioxide (CO2) emissions associated with its electricity consumption. VER is a certificate awarded to projects, mostly in developing countries, that decrease or avoid CO2 emissions. It is attained through verification of avoided carbon impacts by renewable energy installations such as solar, wind farms and hydropower plants, as well as through energy-efficiency projects. It is backed by recognized international quality standards such as the Voluntary Carbon Standard and the Gold Standard.

“Environmental transparency and social responsibility is vital to tracking progress towards a sustainable future, and these are values that Globe continues to champion. Adding more sites that are not only regulatory compliant but proactively addressing climate change risks is proof of our commitment to doing  business better and improving our communities,” said Yoly Crisanto, Globe Senior Vice President and Chief Sustainability Officer. 

As a purpose-driven company, Globe remains committed to the 10 UN Global Compact principles and contributes to 10 of the 17 UN Sustainable Development Goals such as UN SDG No. 9 which aims to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.  

Globe puts into action its commitment to reduce its carbon footprint by actively supporting the Race To Zero global campaign spearheaded by the United Nations Framework Convention on Climate Change (UNFCCC) and COP26 Presidency and backed by the GSMA, the global mobile industry body. This activity is part of the GSMA’s bid to lower greenhouse gas (GHG) emissions to net zero no later than 2050 through the collective efforts of all mobile network operators around the world. Moreover, Globe joins over 9,600 companies demonstrating commitment to environmental transparency by disclosing through CDP, a global non-profit organization that runs the world’s leading environmental disclosure platform. 

To know more about Globe’s sustainability initiatives, visit https://www.globe.com.ph/about-us/sustainability.html

Meralco wins 2 bronze at Asia-Pacific Stevie Awards

Following five bronze wins for its 2019 sustainability report and One Meralco Foundation initiatives during COVID-19 at the prestigious 2020 International Business Stevie Awards, Meralco came away with an additional two bronze trophies at the recently concluded 2020 Asia- Pacific Stevie® Awards.

The Stevie® Awards are the world’s premier international business awards program, and the Asia- Pacific competition pits the best communications campaigns and business innovations from 29 nations in the Asia-Pacific region.

One of Meralco’s wins was for a communication campaign called, Energy Efficiency, a Mandate: Understand. Comply. Profit, a narrative on the utility’s understanding of its role in nation-building and sustainability beyond power distribution. Meralco has evolved into an end-to-end energy solutions provider via services offered by its subsidiaries like solar and energy efficiency solutions.

To recall, greater attention on energy efficiency and clean energy came with the passing of the Energy Efficiency and Conservation Law (RA 11285), which mandated operationalizing and institutionalizing energy efficiency across industries; and the United Nations’ renewed call on its 16 Sustainable Development Goals (UN SDGs), which included universal aspirations for affordable and clean energy, identified as UN SDG 7. Meralco then launched a comprehensive campaign encouraging enterprise customers to make energy efficiency an integral part of operations, and also began an expansive electrification program of unserved areas with clean energy sources.

Meralco’s second award was for its digital publication, with entry title, Power Club: Brighter Partnerships for Tomorrow.

Started as a quarterly print magazine distributed to its enterprise customers in 2011, Power Club went online (https://www.powerclub.com.ph/) on October 2018 as part of the utility’s digital shift.

As the pandemic severely restricts physical movement, Power Club has proven indispensable in communicating Meralco’s COVID-19 operations and initiatives, particularly with helping customers understand their bills during the long quarantine period. It continues to publish news on prevailing trends in the energy sector, stories of successful partnerships with notable enterprise partners, and posts articles and videos intended as a blueprint of what a Meralco partnership may contribute to businesses.

Winners in the seventh annual Asia-Pacific Stevie® Awards were announced last July 2020. The list of Gold, Silver and Bronze Stevie Award winners is available  at http://Asia.StevieAwards.com.

In spite of the pandemic and the resulting restrictions in movement, Meralco, the Philippines’ largest electric distribution utility, has been relentless in communicating the relevance and benefits of energy efficiency solutions in the form of webinars and virtual meetings and digital platforms, such as Power Club.

“We are both honored and humbled for all the Stevie recognitions of our efforts,” said Meralco Senior AVP & Head – Marketing Edeliza T. Lim. “As a provider of an essential utility service, we realize the need to create programs that bring customers and Meralco together to work towards a common vision – particularly during this year.”

“Our economy has been challenged enough by the pandemic, causing tremendous strain on many of our partners. The Stevie Awards acknowledges that a customer-first approach still has a place in any business operation. And we hope that any insights our customers can glean from our initiatives can help resuscitate their businesses and bring the economy back on track,” she closed.

EveGrocer offers zero-waste deliveries

EveGrocer Zero Waste Online Grocery offers subscription-based orders that bundle and deliver necessities on a daily, weekly, or monthly basis. Customers can buy eco-friendly products and farm-to-table meals in reusable containers which they can return on their next subscribed delivery, thereby reducing the need for single-use plastic packaging. 

The company plans all purchases upon subscription in its bid to be completely zero-waste, although subscriptions are not necessary to avail of the service. Customers get discounts for returned containers; and reward campaigns further encourage the recycling practice. 

EveGrocer, which is part of the incubation program of innovation hub QBO, was conceived last year by four co-founders. Two have a background in customized packaging and manufacturing of marketing materials. After realizing that plastic packaging was being thrown every day by customers who were not aware of how these contributed to landfill problems, they decided to collaborate with two other co-founders with design expertise, and pivoted to a solution that involved refilling.

The zero-waste approach of EveGrocer is timely given the “plastic pandemic” due to the global rise in demand for face shields, gloves, protective personal equipment, and takeaway food containers because of the novel coronavirus. In the Philippines, Vietnam, and India, as much as 80% of the recycling industry was not operating during the height of the pandemic. Short-term thinking about excessive plastic waste during the pandemic could lead to a larger environmental and public health calamity long-term, said Jacob Duer, president and CEO of Alliance to End Plastic Waste.

ZERO-WASTE SHOPPING 

The online grocery’s early adopters were composed of zero-waste advocates, and working moms and dads who were active in supporting the sustainability campaign, said Ma. Leonelle Sandoval, Eve Grocer co-founder and chief executive officer.

When strict lockdowns in early March prompted panic-buying at groceries, EveGrocer launched the Necessity Bundle, which includes 3 kilos of chicken leg quarters, 5 kilos of rice, 100 grams of vegan pasta, and a liter cooking oil or dishwashing liquid. The bundle was delivered to quarantined families, who have since become loyal EveGrocer customers.

The platform will launch its pilot multi-vendor website before the end of 2020, with the grand launch slated on February 14, EveGrocer’s first year anniversary. Merchants nationwide and in select countries who register will have their own dashboards, as well as access to payment gateways and automated logistics. 

“We want to encourage brands to shift their packaging to a more sustainable material,” said Ms. Sandoval. “The goal is to create a new sustainable supply chain system that is scalable and easy to use.”  — Patricia B. Mirasol

The Philippines prepares for the US$262 million powerball lottery draw

This Wednesday, 9 December 2020, the American Powerball lottery offers a gigantic jackpot of more than ₱12 billion. Could you handle winning such a prize?

It’s official: the U.S. Powerball jackpot didn’t fall in its draw on Saturday, 5 December 2020. The five numbers drawn were: 3, 4, 6, 48, 53and the Powerball number was: 10. It’s still possible to win the lottery’s incredible top prize and becoming a multi-multi-millionaire in the next draw.

You can buy official Powerball tickets without leaving your home in the Philippines and play for the $262 million jackpot (₱12,6billion), this Wednesday, 9 December 2020. This is legally possible when you use the online lottery ticket service: The Lotter.

Thousands of Filipinos have already begun using the services of The Lotter to safely and securely purchase official tickets for Powerball and other foreign lotteries. If you want to know how The Lotter works, please continue reading.

Is it legal to play U.S. lotteries from the Philippines?

According to Adrian Cooremans, The Lotter’s spokesman, it is possible to play American lotteries such as Powerball from The Philippines as”lottery rules clearly state that you do not need to be a citizen or resident to play, nor is there any law in the United States prohibiting a foreigner from winning the lottery.”

Based on those rules, residents of the Philippines can participate in the Powerball draw with official lottery tickets purchased legally on their behalf by a respected and reputable ticket messenger service, such as The Lotter.

What happens when a Filipino wins?

When a Filipino wins a smaller secondary prize in a lottery draw, the prize money is transferred directly to their personal account. However, when a Filipino wins a lottery jackpot, The Lotter makes all the necessary arrangements for the winner to travel to claim the prize in person. The winner does not pay any commission or extra payment to The Lotter, and he is offered a free of charge attorney to accompany him in the process.

6 quick and easy steps toward winning a US$262 jackpot

  1. Create your free account at The Lotter and click on Powerball.
  2. Select your favorite numbers on the online ticket purchase form.
  3. Confirm your purchase. Visa and Master Card are the leading payment methods in the Philippines for online lottery play.
  4. An official ticket will be purchased for you by our local agents in the USA.
  5. You will see the scanned receipt of the ticket in your personal account.
  6. You’ll receive a notification every time you win!

The odds of a Filipino winning this US$262 million Powerball jackpot are exactly the same as those of someone playing in the United States. A Filipino who buys his tickets at The Lotter could be the jackpot winner if he hits all the numbers in the Powerball draw.

The Lotter charges a small service fee, but the good news is that “when you win, we don’t charge commissions, no matter how big or small the prize is,” The Lotter’s representatives explain.

About The Lotter

The Lotter is the leading online lottery ticket messaging service in the world, enabling people everywhere to play, and possibly win the biggest international lotteries. Since its launch in 2002, The Lotter has paid out more than $100 million in prizes to over 6 million winners from across the globe. The biggest winners at the site have included a woman from Panama who won $30 million playing Florida Lotto and a man from Iraq who won a $6.4 million Oregon Megabucks jackpot.

The current Powerball jackpot of US$262 million will be drawn on Wednesday, 9 December. All Filipinos who buy their official Powerball tickets at The Lotter will participate in the draw with the same conditions as if they were physically in the United States.

What if this time it’s your turn to win? Could you handle winning such a huge amount? There’s only one way to find out. Get your Powerball tickets in time for the draw and good luck.

Spotlight is BusinessWorld’s new sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

 

Startups should explore AI, robotics, drones, and other tech solutions  — DTI

The old ways are gone, the digital economy is here, and “startups are powering up and making things easier and being frontliners in their own right,” said QBO Innovation Hub executive director Katrina Chan during the recent Philippine Startup Week conference. 

“This new normal means new products, new services, new processes,” said Rowena Cristina Guevara, Undersecretary for Research and Development at the Department of Science and Technology (DOST). “Who are the ones who can do it fastest? Startups.” Manila HealthTek, Inc., for example, developed the first local COVID-19 RT-PCR detection kit in 21 days. 

E-commerce is a fertile field for startups, as they can also take on related needs such as transportation, logistics, and fintech. “There are additional opportunities with respect to tech solutions like artificial intelligence, robotics, drones, 3D printers, and animation,” said Rafaelita Aldaba, Undersecretary of the Competitiveness and Innovation Group of the Department of Trade and Industry (DTI), at the same event. “To survive this pandemic, we need to apply all these new technologies.”

Edtech and entertainment are other avenues in the digital economy that Filipino startups should explore. Among the top 10 rising Google search topics in the Philippines in the past 90 days were queries on the Philippine Basketball Association, the Miami Heat basketball team, and the education company Brainly. An October 2020 report by Fitch Ratings further said that Filipinos are expected to spend more in 2021 especially on recreation, and that household spending on recreation and culture is expected to grow by 15.3% next year—the fastest among all sectors—after shrinking by 17.8% this year.

“These are strong indicators of changes that are happening in terms of our consumer behavior,” added Ms. Aldaba. “These are signals as to where we can go.”

FUNDING FOR STARTUPS

The government offers several funding facilities to support the startup ecosystem. Representatives from DTI, DOST, and the Department of Information and Communications Technology (DICT) shared the programs they have in place.

  • SB Corp., the DTI’s financing arm, can extend a loan amount of Php 10,000 for businesses with a minimum asset size of Php 50,000; a Php 20,000 loan for businesses with a Php 100,000 minimum asset; Php 40,000 for those with a minimum asset of Php 200,000; Php 60,000 for those with a minimum asset of Php 300,000; Php 80,000 for those with a minimum asset of Php 400,000; and Php 100,000 for businesses with minimum assets amounting to Php 500,000. Another funding resource startups can tap is the COVID-19 Assistance to Restart Enterprises (CARES) program of the DTI. 
  • DOST has a Startup Grant Program through the Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD). Among the first batch of 15 grantees received funding last year is EduSuite, an artificial intelligence-powered management system that automates campus administration.
  • The DICT’s ICT Industry Development Bureau aims to implement its Innovative and Startups and Acceleration Program in 2021 next year. Its four components are: 1) the creation of an Innovation Network for Filipino innovators and startups; 2) the establishment of Innovation Studios in strategic areas nationwide; 3) the setting up of the DICT Philippine Startup Grant; and 4) the development of the Philippine Startup Portal, which will serve as a repository of all Philippine startup-related information.

“I am excited to hear proposals and get to know new ventures that would like to take a crack at our startup fund,” said Emmanuel Rey Caintic, Assistant Secretary of the DICT. “We’ll make sure we’ll select the right startup to fund. Even if they don’t qualify, we can tie them up with government projects. Even if we don’t give them money, we can give them opportunities to make money.”

The pandemic has forced more than 1,600 local government units and 300 agencies to go online and digitize their processes, which Mr. Caintic said is a galaxy of opportunities that startups can tap. “It may not be as lucrative as building solutions for the private [sector], but this is a sure need. It’s like a multiplier: times 1,600.” 

“I pray you have perseverance and grit to make your enterprises thrive,” he added. “Panimula pa lang ang Philippine Innovation Act and Innovative Startup Act. Kayong mga digital entrepreneurs ang magbabago ng ating lipunan. [The Philippine Innovation Act and the Innovation Startup Act are just the beginning. All you digital entrepreneurs will be a force of change for our nation.]” — Patricia B. Mirasol

Factory slump continues for eighth straight month as output falls in October

The country’s manufacturing product contracted for the eighth straight month in October, the Philippine Statistics Authority (PSA) reported earlier this morning.

Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries showed factory output, as measured by the Volume of Production Index, declined by 11.3% year on year in October.

The latest result is faster than the revised 8.6% drop in September and the five-percent contraction recorded in the same month last year. It also marked the steepest decline since the 13.4% drop in July.

Factory output has been declining since March.

Year to date, factory output shrank by 11.9% on average versus the 8.5% slump recorded in 2019’s comparable 10 months.

The PSA attributed the faster decline in October to reductions in the indices of 15 industry groups led by petroleum products (-99.1%), printing (-53.4%), and tobacco products (-48.7%).

Average capacity utilization — the extent to which industry resources are used in the production of goods — averaged 67.2% from 69.2% the previous month. Only seven of the 20 sectors registered capacity utilization rates of at least 80%. – Marissa Mae M. Ramos

DBCC sees deeper economic slump

By Beatrice M. Laforga,  Reporter

ECONOMIC MANAGERS once again slashed macroeconomic growth targets for this year as coronavirus-related quarantine restrictions continue to be implemented in parts of the country, but remained hopeful the economy will see a strong recovery starting in 2021.

“The Philippines has endured the worst economic impacts of the COVID-19 pandemic through prudent fiscal management and evidence-based and decisive actions to address the global health emergency. As the economy gradually moves towards full reopening, we expect significantly better economic outcomes next year,” the Development Budget Coordination Committee (DBCC), said in a statement released Thursday evening.

During its meeting, the DBCC once again cut its gross domestic product (GDP) estimate to an 8.5 to 9.5 contraction this year, “following the prolonged imposition of community quarantines in various regions in the country.” This is lower than the 4.5-6.6% slump it estimated during its July 28 meeting.

“Despite a lower projection than what was initially adopted back in July 2020, further relaxation of restrictions, as we have improved our healthcare system capacity, will keep our economy on the right track towards full recovery,” the DBCC said.

The economy remained in a recession after GDP shrank by 11.5% year on year in the third quarter. But DBCC said it expects a further improvement in the fourth-quarter GDP, adding that “strong economic recovery and solid growth remains within our reach.”

Despite the expected lower base this year, the DBCC kept its growth forecast for 2021 at 6.5-7.5%, while it raised its growth projections for 2022 to 8-10%.

In a press briefing late Thursday, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said next year’s projected growth would depend on the further relaxation of quarantine rules and the availability of a vaccine against the coronavirus disease 2019 (COVID-19).

Citing preliminary estimates, Mr. Chua said the impact of the recent typhoons that struck the country could shave off 0.62 percentage point from fourth-quarter GDP, or a reduction in full-year output by 0.17 percentage point.

At the same time, the economic team projected the average inflation rate to range from 2.4-2.6% this year. It retained its inflation forecast for 2021 and 2022 at 2-4%.

“In line with recent trends in global trade, the growth assumption for goods exports is maintained at -16% for 2020, while growth of goods imports for 2020 was further adjusted to -20%. These are expected to pick up by 2021 and 2022 with the growth of goods exports maintained at 5% and growth of goods imports pegged at 8%,” the DBCC said.

Services exports and import growth are expected to contract by 21.4% and 19%, respectively, this year.

“However, these are assumed to rebound by 2021 with projected growth reaching 6% for services exports and 7% for services imports. This accounts for the gradual opening up of the domestic economy and increase in travel-related activities,” it said.

FISCAL PROGRAM
The DBCC raised its revenue collection target for the year to P2.85 trillion, equivalent to 15.7% of GDP, from its previous target of P2.52 trillion, after the Bureau of Internal Revenue and Bureau of Customs exceeded its revised goals since July.

“Revenue projections for 2021 and 2022 have also inched up to P2.88 trillion and P3.31 trillion, respectively. The adjustments already factor in the expected impact from the implementation of the CREATE bill, as passed by the Senate,” it said, referring to the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) which will cut corporate income tax to 25% from the current 30%.

This year’s disbursements are expected to reach P4.23 trillion, equivalent to 23.3% of GDP and 11.5 higher than in 2019, but lower than the P4.335 trillion projected in July.

Infrastructure spending is expected to reach P824.9 billion or 4.5% of GDP by end-2020, versus the 4.2% of GDP forecasted in July.

The spending program will reach P4.66 trillion (23.4% of GDP) for 2021 and P4.95 trillion (21.9% GDP) for 2022.

“Given the revised revenue and disbursement program, the deficit program for 2020 is narrowed down from 9.6% of GDP to 7.6% of GDP in 2020. This is adjusted to an estimated 8.9% of GDP in 2021 and 7.3% of GDP in 2022. Our deficit program is designed to balance the requirement of supporting economic recovery while keeping our debt-to-GDP ratio beneath a sustainable threshold. We will not abandon the prudent fiscal management set by President Duterte when he assumed office in 2016 and put us in a good fiscal position ahead of the pandemic,” the DBCC said.

For next year, Finance Secretary Carlos G. Dominguez III said the government is hoping to extend the validity of this year’s P4.1-trillion budget to allow agencies to utilize unspent funds, as well as those under Bayanihan II, for another round of stimulus measure next year.

“At this point, we cannot say that we are supporting another Bayanihan III bill. However, we are planning to spend what is unspent for this year in both the budget and the Bayanihan II, that is an additional P213 billion, that could be a stimulus for next year,” Mr. Dominguez said in a press briefing Thursday.

The DBCC has proposed a higher, P5.024 cash-based budget, equivalent to 22.2% of GDP, for 2022 to support the government’s health-related response and measures to boost economic growth.

The cabinet-level DBCC is composed of heads of the Department of Budget and Management, National Economic and Development Authority, the Department of Finance, as well as the Executive Secretary. The Bangko Sentral ng Pilipinas also sits as the committee’s resource institution.

Unemployment rate eases in Oct. as economy reopens

The Philippines’ unemployment rate stood at 8.7% in October, easing from the 10% in July but still higher than the 4.6% in October 2019, the statistics authority said. — PHILIPPINE STAR/EDD GUMBAN

THE country’s unemployment rate further eased in October from record levels in April, as the economy continued to gradually reopen, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary results of the PSA’s October round of the Labor Force Survey (LFS) put the unemployment rate at 8.7%, equivalent to 3.813 million jobless Filipinos in October.

This is lower than the 10% unemployment rate in July, equivalent to 4.571 million jobless workers, but higher than the 4.6% in October 2019, which translated to 2.045 million.

Labor force survey (Philippines, October 2020)

Nevertheless, the October data showed a move towards recovery in the job market following the peak unemployment rate of 17.6% in April, which is equivalent to 7.228 million individuals unemployed.

“This improvement in the unemployment rate was driven by the reopening of the economy and it could have been lower if the economy were opened further, coupled with the provision of safe and sufficient public transport,” Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua was quoted in the National Economic and Development Authority (NEDA) statement as saying.

Likewise, the underemployment rate, or the proportion of those already working but still looking for more work or longer working hours, was 14.4% in October, down from July’s 17.3%, but worse than the 12.8% a year ago.

This is equivalent to 5.747 million underemployed Filipinos compared with 7.137 million and 5.438 million in July 2020 and October 2019, respectively.

The decrease in underemployment rate in October from July means the quality of jobs is improving, said NEDA’s Mr. Chua.

“This proximity to normalcy means that the informal sector is performing and the impact on poverty may be less severe than initially estimated,” he added.

The size of the labor force was approximately 43.649 million out of the 74.307 million Filipinos aged at least 15 years old in the October round of the LFS.

This brought the labor force participation rate (LFPR) to 58.7%, lower than the 61.9% in July 2020 and 61.4% in October 2019.

The employment rate, which is the proportion of the employed to the total labor force, stood at 91.3% in October, representing 39.836 million employed Filipinos versus 90% in July, representing 41.306 million.

NEDA said while the improvement in the unemployment rate led to a reduction of around 800,000 unemployed Filipinos, the decline in the LFPR resulted in a net employment reduction of 1.5 million in October compared with July.

The lower LFPR was attributed to a number of factors, including higher remittances from overseas Filipinos and the resumption of schooling that led some parents to stay at home to help their children with online classes.

Mr. Chua also noted the impact of typhoons Nika, Ofel, Pepito, and Quinta on employment in October. According to the state agency, these contributed to the reduction of agriculture employment by 1.1 million, or about 70% of the 1.5 million jobs lost between July and October this year.

“Workers in the provinces also faced difficulty in returning to work given inter-province transport restrictions, and contributed to [around 486,000] in the industry sector,” NEDA said.

The reduction in employment was “tempered” by the net gain in the services sector, in which NEDA attributed it to “increased operational capacity and further relaxation of quarantine restrictions.” Between July and October, the sector posted a net gain of around 124,000.

Services made up 57.2% of the total employment in October, up from 54.8% in July. Employment in industry and agriculture fell to 18.3% and 24.5%, respectively, from 18.8% and 26.3%.

In a statement to reporters, ING Bank NV Manila Senior Economist Nicholas Antonio T. Mapa said that while the decline in the national unemployment rate to 8.7% in October was a “welcome development,” the jobless rate remained in double-digits for the National Capital Region (12.4%) and Calabarzon Region (11%).

“Given that the bulk of economic activity is generated by these two regions, we can say that the economy will remain hobbled in the near term as scores of Filipinos are still without a job,” Mr. Mapa said.

OUTLOOK
Economists expect the jobs situation to rebound in the coming quarters as quarantine restrictions continue to be loosened, but that it would take some time for the labor market to go back to pre-pandemic levels.

“If the 2021 [national budget] is approved on time and if they are supplemented by some of the proposed bills in Congress, we might see a more meaningful improvement in the April 2021 LFS. Otherwise, it will take at least another year for us to return to pre-pandemic labor force stats,” said Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr., in an e-mail.

The rebound would also depend on the workers’ confidence to return to the job market as the government rolls out its vaccination plan for next year.

“[W]e need to see a bigger public budget for vaccination for workers if we are to see them continue to gain confidence to work or apply for work again. Even workers in the private sector may not regain confidence to work, spend or travel unless they are aware that their counterparts from the public sector are also getting vaccinated,” Mr. Neri said.

In a separate e-mail, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the labor market will likely go back to pre-pandemic levels by 2022 as next year’s likelihood of a rebound “may be low.”

“[T]here will be a lag before minimum-wage earners will feel the impact of better and positive outlook because of the vaccine developments. Markets will improve, but investment recovery to create more jobs will take time,” Mr. Asuncion said in an e-mail.

For ING’s Mr. Mapa: “With a labor market as fractured as it is now despite opening up the economy, the need for a more vigorous fiscal stimulus plan cannot be emphasized more.” — Ana Olivia A. Tirona

Labor force survey (Philippines, October 2020)

THE country’s unemployment rate further eased in October from record levels in April, as the economy continued to gradually reopen, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

Labor force survey (Philippines, October 2020)

PHL raises $2.75B in global bonds

REUTERS

THE Philippines raised $2.75 billion (P132 billion) from its second dollar-denominated bond sale this year as it seeks to boost state coffers amid the economic slowdown.

The Bureau of the Treasury (BTr) sold $1.5 billion in 25-year dollar-denominated global bonds, and $1.25 billion in 10.5-year dollar bonds, National Treasurer Rosalia V. de Leon confirmed on Thursday. This marked the BTr’s second time to tap the dollar bond market this year.

In a statement on Thursday, the BTr said the 25-year notes were priced at 2.65%, 35 basis points (bps) tighter than initial pricing guidance of 3%, while the 10.5-year bonds fetched a coupon of 1.648%, or at US Treasury spreads of T+ 70 bps.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said these were the lowest coupon rates secured for the debt.

The appetite for the bonds was strong, with total orders for both tranches peaking at $8 billion, according to Ms. De Leon. The debt papers will be issued on Dec. 10.

The BTr attributed the strong demand to favorable market conditions amid positive news on the development of vaccines against the coronavirus disease 2019 (COVID-19).

“Positive news on the COVID-19 vaccine trials over the past couple of weeks have created strong inflows in Asia-Pacific credit markets, which illustrates the Republic’s ability to capitalize on favorable market dynamics,” the BTr said in the statement.

Proceeds will be used to support the national budget, which is pegged at P4.5 trillion for 2021.

“The success of this issuance is once again a testament of the resilience and resolve shown by the Republic to ascend from these tribulations brought about by the pandemic. It also manifests the administration’s ability to identify and capture favorable market windows in such uncertain times,” Ms. De Leon was quoted as saying.

Finance Secretary Carlos G. Dominguez III said the successful offering showed that international capital markets acknowledge the economy’s robust fundamentals and the country’s plans to bounce back from a pandemic-induced recession.

Ms. De Leon said this will be the government’s last offshore bond issuance for 2020.

The dollar-denominated senior unsecured notes received “BBB+” long-term foreign currency issue rating from debt watcher S&P Global Ratings, while Fitch Ratings assigned it a “BBB” rating with a stable outlook. The BTr said the notes are expected to be rated by Moody’s Investors Service with “Baa2” rating.

Credit Suisse, Daiwa Capital Markets, Deutsche Bank, Morgan Stanley, Standard Chartered Bank and UBS served as the joint bookrunners.

Proceeds from the bonds can provide a more immediate funding source for the government’s pandemic response and relief measures to pump-prime the economy, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

“The market environment is indeed very much favorable for the issuance of new offshore bonds for the Philippine government amid near record low interest rates/borrowing costs,” Mr. Ricafort said.

“The US dollar bond offering of the Philippines would also help reduce any crowding out effects in the local credit market, or less competition from the government, by borrowing from the global market instead of the domestic market, thereby less pressure on local interest rates/borrowing costs,” he added.

Total gross borrowings reached P3.2 trillion in the 10 months to October, exceeding the P3-trillion program for 2020. The bulk of the borrowings (82%) were sourced from local creditors. 

The government borrows from both local and external sources to plug the budget deficit which is seen to hit 9.6% of gross domestic product (GDP) this year. The fiscal gap has widened as tax collections plunged and spending rose amid the pandemic. — Beatrice M. Laforga with Reuters

Export industry roadmap under review

By Jenina P. Ibañez, Reporter

THE Trade department is reviewing its long-term export targets after the pandemic-induced global downturn stymied the sector’s growth.

Trade Undersecretary Abdulgani M. Macatoman said the Philippine Export Development Plan (PEDP) 2018 to 2022 is now being reassessed in light of current developments.

Signed by President Rodrigo R. Duterte last year, the PEDP is a roadmap prepared by the Trade department to increase goods and services export revenues to $122-130.8 billion in 2022.

“We are reviewing and assessing the PEDP’s strategies, indicators and export targets to see if such are still doable or not and continue to be optimistic that we will be able to still achieve even the low-end target of $122 billion in 2022 hand-in-hand,” he said at the online National Export Congress on Thursday.

The PEDP uses various strategies for export development, including the reduction of regulatory impediments, improvement of access to trade financing, the use of free trade agreements, and the creation of support packages for select products and services sectors.

Trade Secretary Ramon M. Lopez said that the PEDP is reviewed periodically.

“We’ve proposed revisions aligned with the pandemic effects and impact to our economy,” he said during the same event.

Mr. Lopez added that the department is developing an upskilling program for workers, which he said is part of export development.

“This will develop our human resources, which is our country’s greatest asset. We call on our partner-agencies — the Technical Education and Skills Development Authority (TESDA), the Commission on Higher Education (CHEd), and the Department of Education (DepEd) — to help us,” he said.

The Philippine Exporters Confederation, Inc. (Philexport) on Monday said that export revenues will likely reach at least $100 billion in 2022, about a fifth lower than the government target, mostly because of the global economic slowdown caused by the coronavirus pandemic and calamities this year.

The industry group had said that the $100 billion would depend on the extent of government assistance for the industry.

Year to date, goods exports declined by 13.8% to $45.87 billion by September, data from the Philippine Statistics Authority showed. Total merchandise exports were valued at $70 billion in 2019.

Mr. Macatoman asked the private sector to help the government as it develops policy reforms to improve export performance.

RESILIENCE
At the same event, ASEAN-Japan Center Secretary General Fujita Masataka said that the Philippines must digitalize its trade and services sectors to boost the resilience of its participation in the global value chain.

He suggested that the country improve its telecommunication infrastructure and information technology facilities for e-commerce. The Philippines and Japan, he added, can work together to develop these digital networks.

“Philippines BPO/BPM (business process outsourcing/business process management) service should be more digitized, otherwise (it would be) losing competitiveness areas under the new normal,” Mr. Masataka said.

He added that the governments should reconsider strategies for international production, as global foreign direct investment is likely to decline this year.

“The Philippines should provide an environment conducive to the operations of Japanese companies through, for example, assisting them to maintain and rebuild more resilient global value chains,” Mr. Masataka said, adding that the government must resist protectionism.

Telcos’ revenue growth seen stable next year

By Arjay L. Balinbin, Senior Reporter

MOODY’S INVESTORS Service on Thursday said it expects the revenue growth of Philippine telecommunications companies to remain stable in 2021.

“Revenue growth of operators in emerging markets will remain stable,” Moody’s Investors Service said in its 2021 outlook report for the telecommunications sector in Asia Pacific.

Emerging markets refer to Bangladesh, China, India, Indonesia, Malaysia, Pakistan (up to 2017), and the Philippines.

Moody’s noted that “rising” data consumption and broadband usage in the Philippines “continue to drive revenue growth, although partially offset by declines in legacy voice and messaging services.”

“Heightened competition will weigh on growth when a new player, DITO, enters the market in 2021-22,” it added.

As for the entire Asia-Pacific region, Moody’s said telco revenue will grow 3.5%-4% next year, as the sector “bounces back” from the decline in the first half of 2020, which was caused by the coronavirus pandemic.

“Capital spending will be high at about 22% of revenue, but we expect companies to fund spending largely with internal cash,” Moody’s said.

It also expects the free cash flow to remain “negative.”

“But some reduction in shareholder returns will lead to gradual improvement,” it added.

Moody’s identified six themes that will shape global credit next year, namely: policy challenges, digital transformation, social trends, uneven recovery, rising debt burdens, and environmental impact.

PLDT, Inc. Chairman and Chief Executive Officer Manuel V. Pangilinan has said he expects “better numbers for 2021.”

PLDT recently reported a 95% growth in its attributable net income for the third quarter.

It said the period was an “all-time high” across its different business segments because of the spike in customer demand for digital services.

The company posted an attributable net income of P7.41 billion, up from the P3.79 billion it generated in the same period last year.

Meanwhile, Globe Telecom, Inc. saw a 22% drop in its third-quarter attributable net income to P4.39 billion.

Globe said its service revenues declined 3% to P36.68 billion, driven by the sustained drop in traditional voice and mobile SMS, but partly mitigated by the increase in the mobile data segment.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

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