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DBCC cuts GDP outlook on pandemic impact

By Beatrice M. Laforga
Reporter

THE government now expects gross domestic product (GDP) to contract by 5.5% this year, lowering the outlook amid the widening economic fallout from the coronavirus disease 2019 (COVID-19) pandemic.

The Development Budget Coordination Committee (DBCC) on Thursday said it further downgraded its GDP projection to -5.5% this year, from the -2% to -3.4% forecast range penciled in on May 27 “in view of updated indicators on the impact of the COVID-19 pandemic on tourism, trade, and remittances throughout the year.”

The DBCC statement was released after the statistics agency announced GDP contracted by 16.5% in the second quarter from a year ago, the worst on record since the government’s quarterly GDP data going back to 1981.

Economic managers also slashed growth projections for 2021 and 2022 to 6.5-7.5%. It earlier forecast 8-9% growth for 2021, and 6-7% growth for 2022.

The DBCC adopted the revised macroeconomic assumptions on July 28 when it hiked the proposed P4.506-trillion budget ceiling for 2021.

With an P18-trillion economy, the Philippines lost around P1.5 trillion for every month of strict lockdown in the second quarter, Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said in an online briefing.

“[The latest GDP forecast] incorporates already the effect of this MECQ (two-week modified enhanced community quarantine) which we hope to maximize this two-week period to enhance our healthcare system so we can provide more boost to consumer confidence in the remaining 5 months of the year so we arrive at the GDP we projected” Mr. Chua said.

The government placed Metro Manila under MECQ until Aug. 18 in an effort to control the rising number of COVID-19 infections. On Thursday, the Health department reported 3,561 new coronavirus cases, bringing the total to 119,460.

ASEAN+3 Macroeconomic Research Office (AMRO) also cut its 2020 GDP projection for the Philippines to -6.6%, from the earlier forecast of -3.8%. If realized, the Philippines will be the second worst-performing country in ASEAN in 2020, following Thailand (-7.8%). This is also worse than the regional average of a 2.6% contraction and ASEAN+3’s projected flat growth.

AMRO also slashed the estimate for next year to 6.5% from the 7.4% penciled in late-April. However, this is still higher than the projected 5.7% and 6% growth for ASEAN and ASEAN+3 next year, respectively.

“A resurgence of the COVID-19 is taking place not only in the Philippines but also in other countries in the region, signaling a serious impact on economic recovery in the second half of this year and 2021. A second or third wave will dampen the speed and weaken the strength of the recovery, posing a significant risk to medium-to-long term growth prospects,” Zhiwen Jiao, AMRO’s country economist for the Philippines, said in an e-mailed response to questions.

REVISED ASSUMPTIONS

The DBCC also lowered its inflation rate assumption for the year to 1.75-2.75% from the previous 2-4% range. It maintained the 2-4% inflation forecast for 2021-2022.

The economic team also downgraded the output forecast for this year’s goods exports and imports on expectations of a severe economic downturn.

It now expects goods exports to contract by 16%, from the earlier projection of -4% but maintained the 5% growth estimate for 2021-2022. Goods imports, on the other hand, are expected to slide 18% this year from its previous forecast of -6% but kept the 8% projection for the next two years.

Remittances will drop by five percent this year before a return to the “normal” annual growth rate of 4% in 2021-2022, the DBCC said.

It also raised the estimated price of Dubai crude oil this year to $35-45 per barrel from $23-38 each previously. The peso is now seen to settle between P50 and P52 against the greenback this year, a narrower range compared to the P50-54 per dollar estimate in March.

The estimated disbursements for the year were also revised upward, while projected overall revenues were slashed as economic contraction deepens.

The DBCC estimated this year’s budget deficit ceiling at 9.6% of GDP, from 8.4% previously. The budget deficit ceiling for 2021 and 2022 was revised to 8.5% (from 6.6%) and 7.2% (from 5%), respectively.

Government revenues will be lower at P2.52 trillion this year, which is 13.4% of GDP, compared to the earlier estimate of P2.61 trillion. This was attributed to expectations of a deeper economic slump and the estimated P42 billion in foregone revenues when the corporate income tax is slashed to 25% from 30% this year.

Considering the additional spending of P140 billion under the Bayanihan to Recover as One (Bayanihan II) bill, this year’s estimated disbursement is at P4.34 trillion which represents 23% of GDP. This is 5.9% higher than the original P4.1-trillion spending plan.

The proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act that will lower corporate income tax and streamline incentives is among the stimulus bills being pushed by the economic team.

“Despite these adjustments in deficit spending, the DBCC is confident that the National Government’s debt will be kept at a sustainable and responsible level, within the 60% internationally-recommended debt threshold, by 2022,” it said.

Eight flagship infrastructure projects worth P370 billion shelved

THE government has shelved eight major infrastructure projects worth P370 billion under its flagship program, as it seeks to conserve resources and prioritize shovel-ready ones with high economic and jobs impact.

Vivencio B. Dizon, the presidential adviser for flagship infrastructure projects, on Thursday said the government also added 13 new projects that it deems crucial for post-pandemic recovery.

In an online press briefing, Mr. Dizon said they retained 92 infrastructure projects worth P4.1 trillion, out of the original list of 100 projects worth P4.4 trillion. Twenty-nine projects will be funded through public-private partnerships (PPP).

“We have essentially shelved in the (flagship list) about eight projects that are still under feasibility studies and replaced them with projects that are ready to go and shovel-ready that are responsive to the needs post-COVID-19, (adding) 13 new projects,” Mr. Dizon said.

Among the shelved projects are the P175.66-billion Bataan-Cavite Interlink Bridge, P13.94-billion New Zamboanga International Airport, the P6.94-billion New Dumaguete Airport, P9.5-billion Dalton Pass East Alignment Alternative Road, and the Guimaras-Negros segment of the P189.526-billion Panay-Guimaras Negros Bridge.

Other projects that were set aside include the P56-billion Kanan Dam project, the P31.22-billion Kabulnan-2 Multipurpose Irrigation and Power Project in Mindanao, and the P19.36-billion Panay River Basin Integrated Development Project.

“We would revisit them again in the next quarter to see what’s the progress in the feasibility studies of these projects,” Mr. Dizon said.

Mr. Dizon said the 13 new infrastructure projects will address issues brought to light by the coronavirus pandemic. Out of the 13, four are information technology-related projects, five are water projects, three are related to transportation, and one involves the health sector.

Among the new IT projects are the Land Transportation Office Central Command Center project; the Motor Vehicle Recognition and Enhancement System project; the National Broadband Program, and the Information and Communications Technology Capacity Development and Management Program.

For the water sector, new projects included the Water District Development Sector Projects; the National Irrigation Sector Rehabilitation and Improvement Project; Balog-Balog Multipurpose Project Phase II; the Jalaur River Multi-purpose Project; and the Lower Agno River Irrigation System Improvement Project.

New transportation projects are the Metro Manila Logistics Network project; the North Luzon Expressway Harbor Link Extension to Anda Circle, and the General Santos Airport.

The government is also prioritizing the construction of the Virology Science and Technology Institute of the Philippines. Mr. Dizon said the Health department will add more projects to the list once these are approved by the National Economic and Development Authority.

All projects under the revised list will be started before President Rodrigo R. Duterte ends his six-year term by 2022, Mr. Dizon said.

As the pandemic drags on, the government is hoping the infrastructure push will help the economy rebound strongly in 2021. “We have not only continued with ‘Build, Build, Build’ and our flagship projects, we will even further intensify for this to serve as a major driver in our recovery in the coming months,” Mr. Dizon said.

In May, officials said the government revised the list of flagship infrastructure projects based on “available fiscal space for infrastructure projects in 2020-2022; project readiness and implementation capacity of line agencies; economic growth and jobs impact.” Other criteria included the interest and risk level of the private sector; and inclusion of projects for health and digital economy.

The flagship infrastructure program, a sublist under the “Build, Build, Build” program, was first revised late last year when the number of projects was increased to 100 from 75. Some big projects were dropped to include more small projects and some unsolicited PPP-funded projects.

Data from the Budget department showed the infrastructure and other capital outlays went down 36.7% from a year ago to P38.9 billion in May, taking the year-to-date total to P235.2 billion, down 12.2% year on year. — Beatrice M. Laforga

Government eyes P3-trillion borrowings in 2021

THE government is eyeing to borrow P3 trillion next year in order to fund more than half of its spending plan and plug the ballooning deficit, Finance Secretary Carlos G. Dominguez III said on Thursday.

“For 2021, we expect to borrow roughly P3 trillion, roughly the same as what we (plan to borrow) in 2020,” he said in an online press briefing on Thursday.

This represents 66.67% of the P4.506-trillion proposed budget ceiling for next year.

The P3-trillion borrowing plan this year makes up 69% of the P4.34-trillion budget, and nearly three times higher than the P1.02 trillion raised for full-year 2019.

“Our borrowing plan is in place and definitely, it is sufficient to cover our needs this year and next year,” Mr. Dominguez said, noting that the government’s programmed borrowings will be reduced to P2.3 trillion in 2022.

The government will also maintain a 75:25 borrowing mix ratio, in favor of domestic sources to minimize foreign exchange risks and volatility, he added.

National Treasurer Rosalia V. de Leon said the Bureau of the Treasury will exhaust conventional methods in raising funds to plug the ballooning deficit this year.

“As we have been planning, there’s also some discussions with the Bangko Sentral (BSP) that we would be also tapping some of their facilities, which we have already started with the P300 billion advances that the BSP has provided to the Philippine government,” Ms. De Leon said during an online economic forum on Thursday, referring to the central bank’s purchase of government securities through a repurchase agreement in April.

During a July 28 meeting, the economic team projected a wider budget deficit from 2020 to 2022 as the government plans to spend more to pump-prime the economy while tax collections slump amid the downturn.

Based on the latest estimates by the Development Budget Coordination Committee (DBCC), next year’s revenues were projected at P2.72 trillion — 13.2% of GDP. This is lower than the P2.929 trillion estimated in May.

The budget gap is also seen to swell to 8.5% of GDP next year, up from the previous estimate of 6.6%.

The DBCC slashed its growth projection next year to 6.5-7.5% from 8-9% previously.

LATEST COLLECTIONS

Mr. Dominguez also said that the country’s top revenue-generating agencies — the Bureaus of Internal Revenue (BIR) and Customs (BoC) exceeded their collection targets in July.

During the briefing, he said the BIR collected P126.72 billion in July, surpassing its revised P124.14-billion goal by 2.08%.

The BoC also exceeded its target by 5.03% after collecting P50.07 billion in duties and taxes last month. Despite the revenue boost, Customs’ year-to-date collection of P303.132 billion still fell short of its P314.3-billion target.

The economic team earlier cut the BIR’s revenue target for 2020 to P1.744 trillion, down 23% from the P2.205-trillion goal set in March. BoC’s collection target was also trimmed to P542 billion from the original pre-pandemic goal of P730 billion.

“With the performance of revenue collections in July, then we are hopeful that this would continue to be the trend and that would also alleviate the funding requirements for the rest of the year,” Ms. De Leon said.

Gross borrowings of the state hit P1.7 trillion in the first half, exceeding the P1.02 trillion raised for the entire 2019.

For the COVID-19 pandemic response alone, the government has raised $8.131 billion in a mix of loans and grants from external sources. — Beatrice M. Laforga

Car firms keep year’s sales goal despite new lockdown measure

By Jenina P. Ibañez, Reporter</em

THE CAR INDUSTRY is retaining its sales projection despite the two-week return to a strict lockdown in Metro Manila and four key economic areas.

“We still maintain the revised target of down by 40% from last year,” Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) Rommel R. Gutierrez said in a mobile message on Tuesday.

Total car sales in 2019 reached 369,941 units, based on data from CAMPI and the Truck Manufacturers Association. Sales last year was up 3.5% from 2018, after light commercial vehicles and light trucks sales improved.

Vehicle sales in the first half of 2020 fell 51.2% to 85,041 units compared with the same period last year after car dealerships shut down due to lockdown restrictions.

The stricter lockdown in Metro Manila, Bulacan, Cavite, Rizal and Laguna retains the limited capacity operations for motor vehicle sales, but limits the movement of people.

Vehicle importers said that the return to a strict lockdown makes sales unpredictable.

“At the onset of the pandemic and lockdowns, we forecasted industry sales to drop by at least 40% for 2020. We initially based our assumptions on a U-shaped or slow recovery based on existing indicators then,” Association of Vehicle Importers and Distributors, Inc.’s (AVID) President Ma. Fe Perez-Agudo said in an e-mail on Wednesday.

“However, the resurgence of cases and the shift back to MECQ makes any forecast unpredictable and more complex,” she said, referring to modified enhanced community quarantine, the government’s lockdown measure that banned most public transportation. She said digital tools launched by companies will soften the blow of the lockdown on sales. Car companies have been rolling out mobile applications and online platforms for showrooms and booking services.

“By going fully digital, we are able to reach out to customers in their homes, book appointments or test drives, show our products and services virtually, or simply engage in some form of social interaction,” Ms. Perez-Agudo said.

“Buying a vehicle used to be a tedious process wherein you had to schedule a trip to the dealership, brave traffic, and negotiate with sales consultants. Nowadays, everything is at your fingertips.”

AVID’s full-year 2019 sales slipped 0.5% to 87,984 from an updated 88,430 units the year before.

Imported vehicle sales dropped 54.8% in the first half of 2020 to 19,455 units.

PLDT profit up nearly 16%, plans cost control after ‘worrisome’ Q2

By Arjay L. Balinbin
Senior Reporter

PLDT, INC.’s second-quarter attributable net income grew 15.8% to P6.37 billion from P5.5 billion posted in the same period last year, driven by the surge in data and broadband revenues amid the coronavirus pandemic.

The second-quarter net income is 7.8% up from P5.91 billion earned in the first three months of the year.

In a regulatory filing on Thursday, PLDT said its telco core income (excluding Voyager Innovations, Inc.) as of June stood at P13.9 billion. The second-quarter telco core income of P7 billion is 1.5% up from the previous quarter’s P6.9 billion.

Manuel V Pangilinan, chairman, president and chief executive officer of PLDT, said during the virtual media briefing on Thursday that he expects the company’s telco core income for the year to be similar to what it realized in 2019, which was at P27.1 billion.

Total revenues for the period, both service and non-service, went up 4.1% to P43.09 billion from last year’s P41.37 billion.

The second-quarter amount is 1.28% lower than the previous quarter’s P43.65 billion.

Consumer and enterprise revenues grew 9% to P39.8 billion, 0.25% down from the previous quarter’s P39.9 billion.

International and carrier segment’s revenues declined by 34% to P1.5 billion. The amount is also 6.25% down from the previous quarter’s P1.6 billion.

“Our strong performance will allow us to further boost our already significant investments. These investments, which total some P260 billion over the past five years, enabled our networks to carry all the additional traffic during these past few months and also to bring new technologies such as 5G which we launched just last week. Given that our network rollout efforts have regained momentum, we are leveling up our target capital expenditures for 2020 back up to about P70 billion. The balance of our original P83-billion capital expenditure budget will be spent next year,” Mr. Pangilinan said.

PLDT said it would focus on LTE expansion, transport or backhaul rollout, and ADSL upgrade to fiber in the second half of the year.

In his fifth State of the Nation Address on July 27, President Rodrigo R. Duterte threatened to close or expropriate telco firms if they fail to improve their services by December this year.

Mr. Pangilinan said: “As of now, we have more than 95% of the population covered by 4G and 3G networks. We will try to cover higher than that, maybe up to 99%.”

As for the possible impact of the recession on PLDT, Mr. Pangilinan said: “The 16.5% contraction [in the second-quarter gross domestic product] is worrisome. It could affect our revenues, moving forward, so part of our job for the balance of the year is to contain our costs because that is within our control basically.”

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said via e-mail: “We still see a lot of opportunities for PLDT for the second half given the movement of the economy towards the digital space. Capitalizing on these opportunities could help PLDT sustain or even improve its momentum from the first half.”

“So far, we saw PLDT take steps to take advantage of these opportunities. This includes its continuous network expansion and the introduction of its 5G technology to the market. With these, we may also see a good second half for PLDT,” he added.

Shares in PLDT on Thursday closed 1.26% higher at P1,370 apiece.

7-Eleven operator swings to P494- million net loss

PHILIPPINE SEVEN CORP., the local operator of 7-Eleven stores, swung to a P493.5-million net loss in the second quarter as an effect of the coronavirus pandemic

In a statement on Thursday, the listed company said it reversed its P373.2-million net income last year due to the temporary closure of some stores, supply chain disruptions and reduced foot traffic when parts of the country were under strict lockdown.

System-wide sales, or the retail sales from all 7-Eleven stores, dropped 31% to P9.92 billion. Sales from existing stores declined by 26% due to the reduction in average customer count.

On a six-month basis, Philippine Seven booked a net loss of P389.7 million, a turnaround of its P485.3-million net profits in the same period last year.

System-wide sales slid 11% to P24.05 billion despite a 10% growth in store count to 2,930 stores.

The company said it was forced to close up to 30% of its stores in the first few weeks of the quarantine, as some workers were unable to report for work due to travel restrictions.

The situation has since improved, and closed stores were less than 10% of its network at the end of June. It was reduced further to 5% last month.

Of the company’s total 2,930 stores, 55% are franchised and 45% are company-owned. Some 2,222 are located in Luzon, 425 are in Visayas and 283 are in Mindanao.

Philippine Seven is approaching the next months with strategies focusing on offering essential products and services. It is also accelerating digital efforts, particularly in e-commerce and payments.

“The company is taking advantage of the strength of its balance sheet. Its cash level remains to be above the normal operating requirements and there are still sufficient credit line made available by the major banks to provide additional liquidity if needed,” it said.

Philippine Seven said in a media briefing in July it was allocating P2 billion for capital expenditures this year, which will support the opening of at least 200 new stores.

Its shares at the stock exchange closed flat on Thursday at P125 apiece. — Denise A. Valdez

Virtual Cinemalaya kicks off

CINEMALAYA, the country’s largest independent film festival, is back for its 16th year though unlike other years where it was held in the halls and theaters of the Cultural Center of the Philippines (CCP), the pandemic has forced the festival to go online. But instead of being a setback, the online installment of the festival can be viewed more as an experiment on how things may go in the near future, though its organizers said it may not be a seamless experience for now.

“It’s a brave new world. We don’t expect a seamless experience, but I hope our viewers appreciate that this [was made] in the context of a learning curve,” Chris B. Millado, artistic director of the CCP and festival director of Cinemalaya, said during a digital conference in July.

“I think this will only enhance the work that we’re doing. In fact, we were thinking about [going online] a few years back… I think people’s viewing behaviors have changed with what’s going on, so hopefully this can be translated into continued if not increased viewership in Cinemalaya,” he added.

The festival will run from Aug. 7 to 16 via  the video-sharing website Vimeo, and will feature 10 short films in its main competition section and another 20 in the exhibition section.

In March, Cinemalaya announced that it was postponing the festival because of the COVID-19 lockdown and its organizers admitted that they would have canceled this year’s edition completely if not for the fact that they had already received some 240 short film submissions.

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

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

The eight full-length features which were originally set for screening this year will be moved to next year in what is hoped to be an 18 full-length feature carambola as they will be competing against the 10 features selected for 2021.

Talkbacks, Dokyu, and masterclasses

So, yes, this is a whole new Cinemalaya providing an entirely new experience but it still is Cinemalaya, which means the well-loved sections such as the Dokyu (documentary) section and masterclasses and talkbacks with the creators will be held.

The documentary section is curated by filmmaker and screenwriter Clodualdo “Doy” del Mundo, Jr., and the films that were chosen are “portraits of individuals.” They are Overseas (2019) by Yoon Sung-A and Elihiya sa Paglimot (Elegy of Forgetting), a 2018 film by Kristoffer Brugada.

Overseas was described by Mr. Del Mundo in a statement as an “empathetic film about Filipina women who are training for their work in foreign lands as domestic helpers,” while Elihiya is a film that “records his father’s journey to forgetting.” 

Indie Nation, a section featuring independent films, will be featuring four full-length films: Mindanao (2020) by Brillante Ma. Mendoza, Watch Me Kill (2018) by Tyrone Acierto, Jesusa (2019) by Ronald Carballo, and Circa (2019) by Adolfo B. Alix, Jr. Circa was veteran actress Anita Linda’s last film before she passed away in June at the age of 95.

And in tribute to Ms. Linda, Cinemalaya is holding a special screening of her film Adela (2008). The festival is also paying tribute to award-winning director Peque Gallaga, who passed away in May at the age of 76, by screening his film Unfaithful Wife (1986).

A talkback session for the tribute screenings will be held on Aug. 15, at  3 p.m. and 6 p.m.

The festival’s Premiere section starts Aug. 10 with Basurero, a short film by Eileen Cabiling on Vimeo, which will be followed by a talkback with her and her cast at 7 p.m. Nang Em by Maria Ranillo premieres on Aug. 11, followed by a talkback with the director and her actors at 3:30 p.m. Heneral Rizal by Chuck Guttieres will also be premiering on Aug. 11 and will be followed by a talkback with the director and his actor, though no time has been announced.

Famed scriptwriter Ricky Lee will be holding two masterclasses on storytelling on Aug. 9 and 15 about how to find one’s voice in writing and how to write during a pandemic. Mr. Lee’s masterclass is priced at P300. Former students of Mr. Lee will be holding a reunion on Aug. 8 at 1 p.m.

The talkbacks and masterclasses will be streamed on the CCP Facebook page and on live streaming site, Kumu. 

The Cinemalaya awards ceremony will be on Aug. 12 via Kumu.

Fringe Cinemalaya events

On Aug. 7, after the premiere of the short films in competition, there will be talkbacks with the directors at 4:20 p.m. and 6:15 p.m. 

Gawad Alternatibo, considered the longest-running independent film competition in Asia, will have its opening program on the same day at 6:30 p.m. Talkbacks for the Gawad Alternatibo entries will happen on the same day as their premieres starting at 3:30 p.m.

The awarding ceremony for Gawad Alternatibo is on Aug. 15, 7 p.m.

The films in Gawad Alternatibo include entries from the European Union and Iran, shorts from the School of Slow Media alongside a “human-centered” storytelling workshop, shorts from QuaranTime Chronicles, documentary essays from alternative media, and winning shorts from the Department of Education’s national festival of Talents-Sineliksik competition.

Gawad Alternatibo also has a section for independent games which can be accessed on their website. Gameplays of the entries will be livestreamed on the CCP, Cinemalaya, and Gawad Alternatibo Facebook pages from Aug. 6 to 14.

Cinemalaya Retro Shorts: Women in Short Films and Cinemalaya Retro Shorts: The New Generation will have talkbacks with filmmakers on Aug. 8 at 4:30 p.m. and 7 p.m.., respectively. The Retro Shorts will also have back-to-back talkbacks on Aug. 9 at 5:15 p.m. and 7:15 p.m. to be moderated by actress Sheenly Gener, and another on Aug. 10, 4:30 p.m.

Cinemalaya Campus: Re-Imagining and Contextualizing Filmmaking launches on Aug. 10 and runs until Aug. 14. There will be two sessions daily at 10 a.m. and 11 a.m. On Aug. 14, short films will be screened within the campus session.

On Aug. 13, there will be a panel discussion on Experiments During Quarantine featuring the Virgin LabFest artists and filmmakers.

All the events mentioned in this section can be viewed on the Cinemalaya and CCP Facebook pages and on Kumu.

Tickets are $4 (P200, estimate) for the standard Vimeo bundle and $7 (P350, estimate) for the premium Vimeo bundle. The standard bundle includes films in competition, in exhibition, retrospective full-lengths and shorts, and the documentary section. The premium bundles include all these plus access to premieres, the tributes, digital classics, and talkbacks.

Cinemalaya Independent Film Festival will run from Aug. 7 to 16.

For the complete schedule and more information, visit the CCP website (www.culturalcenter.gov.ph) and the Cinemalaya and CCP social media pages. — Zsarlene B. Chua

Alliance Global to diversify for new revenue sources

By Denise A. Valdez Senior Reporter

ALLIANCE GLOBAL GROUP, Inc. (AGI) is embarking on an earnings diversification and digitalization strategy to help support recovery from the impact of the coronavirus pandemic.

In the company’s annual stockholders’ meeting held virtually on Thursday, AGI Vice-Chairman and CEO Kevin Andrew L. Tan introduced a five-point recovery strategy which centers on opening new revenue streams to support its finances.

“While sticking to our core competence in real estate and consumer sectors, we are diversifying and expanding our revenue mix to provide for future growth without sacrificing earnings stability,” he said.

Mr. Tan did not specify how AGI will do this, but he mentioned how the diversification of Megaworld Corp. and Emperador, Inc. have involved offering new projects and entering new markets while sticking to their core businesses.

Megaworld started boosting its recurring revenue streams in 2015 with the opening of more office buildings and lifestyle malls to complement its real estate sales. It also acquired more properties outside Metro Manila, which helped cushion its revenues from localized dips.

On the other hand, Emperador has started bringing international markets into its portfolio, as it strengthened the sale of its products in countries such as China, United Kingdom, Russia, United States, Sweden, Spain and Indo-China.

Apart from diversification, the other elements in AGI’s five-point strategy are digitalization, financial flexibility, adaptability, and sustainability and well-being.

Megaworld has recently announced forming a digital subsidiary, AGILE Digital Ventures, Inc., which would invest in technology startups to adapt to the changing market.

It is pouring $5 million (about P250 million) in its own startup brand PICK.A.ROO, an on-demand lifestyle delivery mobile app that will launch on Aug. 18.

As part of keeping its financial flexibility, AGI has cut its 2020 budget for capital expenditures by almost half to P42 billion, most of which will go to Megaworld’s residential, office and mall projects that are already committed for completion. While its priority is to preserve cash, Mr. Tan said the company remains open to opportunities that may arise, particularly in land banking and acquisitions.

“All throughout (several) milestones in our company’s history, one underlying factor that allowed AGI to take advantage of those opportunities was its strong balance sheet, which was achieved through years of financial discipline and prudence,” he said.

“Businesses should pave the way in coexisting with the virus in order to survive,” Mr. Tan added. AGI earnings dropped 32% to P3 billion in the first quarter as a result of the Taal Volcano eruption in January and the coronavirus-related lockdown in March.

AGI is the holding firm of tycoon Andrew L. Tan, who also has interests in hotel and casino through Travellers International Hotel Group, Inc., and in McDonald’s Philippines through a joint venture with the Yang family.

Shares in AGI at the stock exchange dipped seven centavos or 1.25% to P5.53 each on Thursday.

San Miguel incurs P4-B net loss as Petron becomes unprofitable

SAN MIGUEL CORP. (SMC) booked a P4-billion net loss in the six months to June, as its fuel unit became unprofitable during the coronavirus-related quarantine.

In an investor presentation posted on its website on Thursday, SMC said the coronavirus pandemic made it bleed in the first semester, reversing its net income of P26.15 billion in the same period last year.

Consolidated revenues dropped 31% to P352.8 billion, as income from operations contracted 74% to P14.93 billion. By business segment, SMC’s fuel unit Petron Corp. and beer unit San Miguel Brewery, Inc. (SMB) were the main drag of the decline.

Petron posted a net loss of P14.2 billion, a turnaround from its net income of P2.6 billion last year. Consolidated revenues slumped 40% to P152.4 billion.

It attributed the reversal to the volatility of global crude prices, and the eventual imposition of a lockdown in March which restricted nonessential travel.

SMB also suffered from the lockdown, as the government imposed a liquor ban to match the measure, thus pulling down the company’s revenues by 39% to P42.8 billion.

It also started seeing the effects of the higher excise tax on sin products, as it recorded a 62% profit drop to P5.02 billion. But the 28% net growth of the spirits business to P1.26 billion, and the profit jump of the foods business to P1.34 billion from last year’s P447 million, tempered the decline in the consolidated net income of San Miguel Food and Beverage, Inc. to a 19% drop to P122.82 billion.

“The first half was particularly challenging for most in the business sector but we are seeing strong indications of a recovery for SMC businesses, and we remain focused and determined to build on these gains,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement.

“Government reopening the economy, and allowing businesses to operate under strict health and safety protocols, was a very good call,” he added.

SMC ended the semester with its cash growing to P344 billion from P286 billion in end-2019. Its interest-bearing debt also grew to P953 billion from P852 billion. The company’s net debt-to-total equity stood at 0.93x. Shares in SMC at the stock exchange increased 30 centavos or 0.31% to P97.30 each on Thursday. — Denise A. Valdez

Japan rises

By Noel Vera

SERIES REVIEW

Japan Sinks
Directed by Masaaki Yuasa and Ho Pyeon-gang
Netflix

ONCE AGAIN Masaaki Yuasa put out an anime series (Japan Sinks, 2020, available on Netflix — actually his second after the delightful Keep Your Hands Off Eizouken!) and once again he flouts expectations, of both his fans and fans of disaster movies. This time though Yuasa may have fashioned not just a quietly subversive disaster epic but the fiction story summing up our feelings in this disaster of a year, 2020.

Where the source novel (by Sakyo Komatsu) focused on government efforts to cope with the cataclysm, Yuasa (with co-director Ho Pyeon-gang and writer Toshio Yoshitaka adapting) focuses on the common folk struggling to stay alive. Where the novel had mostly Japanese characters, the series takes extra effort to present a more diversified cast: wife and mother Mari Muto is from Cebu, Philippines; popular YouTube celebrity KITE is from Estonia; hitchhiker and amateur magician Daniel is from Kosovo; submarine pilot turned research scientist Onodera — who predicted Japan’s downfall — is a paraplegic (a source of unspoken embarrassment in everyday Japanese society). A sinister religious cult is introduced, its subplot springing a few surprises (and not a little controversy among viewers); the actual disaster setpieces (the various earthquakes, Mt. Fuji erupting, Japan’s promised submersion) look and feel, well, different from the usual onscreen depiction.

When the first quake strikes, Yuasa cuts to four locations: a girl’s locker room (where middle schooler Ayumu Muto is dressing after track practice); an Olympic stadium (where father Koichiro is installing a jumbotron screen); the Muto home where youngest son Go is waiting; and an inflight jet holding Mari, who is coming back to Japan. The locker, stadium, and home sequences are handled impressionistically; mainly brief shots strung together (perhaps the most effective being Ayumu and her classmates flung against a rushing gray background, to land every which way they can). Mari’s plane crashes against a river, resting its nose against a bridge but the actual crash is skipped over — and you realize that perhaps Yuasa didn’t have the budget to visualize the series properly, hence, the elliptical if not downright frugal approach. He may have decided to pour money instead in unexpected directions: a garden lit at night in spectacular purple, blue, and green, as a signal to draw people together; a panning shot of the Shiba-koen district, dim concrete towers lit from below by what looks like a vast bed of coals (glide past the famed Tokyo Tower, upper half hanging to one side); a quietly spectacular overhead shot of a Tokyo suburb some 10 to 20 feet submerged, the water so clear you can still see the streets, the tops of trees and buildings poking out of the gently lapping waves. The family is happily reunited — with next-door neighbor Nanami having found Go and bandaged his eyes, and track-star-turned recluse Haruo coming along — but Yuasa has one more shock in store: bodies dropping from the sky, and a helicopter spinning out of control to end its trajectory in a nearby fireball. His apparent message: don’t expect the usual disaster movie, with tropes and conventions providing comfort in the midst of the chaos — Yuasa has neither the budget nor inclination. Anything can happen to anyone anytime, and probably will.

That’s what initial audiences apparently reacted against: the series flouts conventions too much, is apparently unmoored and ridiculous in its narrative and tone. Plot coincidences abound, characters survive by the most unlikely of means, and deaths are often passed over if not downright ignored. Yuasa addresses the latter early on (skip the rest of this paragraph if you haven’t seen the series and intend to!): Koichiro is the best qualified and most natural leader of the group, an outdoorsman who knows where to find potable water and yams and even how to field-dress a wild boar (which he dispatches himself) — and what does Yuasa do? Take the man away, literally, with a bang and a cloud of smoke. Nanami has a mini-arc where she develops an attraction to Haruo, has to fend off an attempted sexual assault by a truck driver, then dies, just like that. Ayumu — the series’ ostensible protagonist — is horrified by these deaths, partly because they’re so sudden, partly because she feels she had somehow caused them (Koichiro because she wanted yams and he had died looking for some, Nanami because Ayumu also had a crush on Haruo, and was mildly jealous). Crassly manipulative? Maybe, but remember the story is being told through Ayumu’s eyes, at least in these passages, and she can’t help but see the world in terms of how it affects her and she affects it.

As for several characters’ passing, Mari’s reaction seems particularly noteworthy: she stoically shrugs them off, especially the first one. Ayumi reflects our feelings and says as much to Mari: how can the woman just ignore death like that? But Mari’s reflects one way people cope, rightly or wrongly: by focusing on the business of survival. Mari feels the trauma and Aymumu’s hurtful angry words, and internalizes it — a recognizably human response, just not the kind we’re used to seeing in movies or on TV.

Then there’s the cult (Again, skip the rest of this paragraph if you haven’t seen the series and intend to!), which admittedly comes at a low point in the series, animation wise — looks like Yuasa was scraping financial bottom when he worked on these episodes. We’re waiting to learn that the cult is either fake or somehow evil, and neither expectation is fulfilled: the cult does have what seems like a genuine medium, or at least an actual telepath, and its intentions turn out to be sincerely benign — the Mutos aren’t asked to convert, and they enjoy a few days’ rest, not to mention a hot shower. The rest stop does function as a turning point for several of the characters: Mari conducts a sneakily flirtatious relationship with the sad sack Daniel and ultimately allows herself to mourn Koichiro, Ayumu and Mari finally reconcile, and an old man named Kunio — an unapologetic racist — eventually relents in his racism. 

Mind you I’m not saying Yuasa and his writer Yoshitaka do flawless plotting (Komatsu I absolve because very little of his original story was used, aside from the premise). If the story feels like it pinballs all over the place, I’d say that reflects the relentlessly random nature of a disaster and its aftermath; if we’re upset that the plot seems to shortchange some characters, I’d say that’s thanks to the care put into their development by the makers, our indignation a tribute to the emotional investment we in turn have put into them. 

The last few episodes are devoted to KITE and his attempt at data gathering, the resolution to this particular plotline giving rise to a flaw no one seems to have noticed (Again skip the paragraph if you haven’t seen and intend to!): KITE implies the possibility of saving Japan but no one points out KITE’s failure — that he did little to prevent the sinking and even less to do with its partial return. I submit that in a way KITE didn’t fail: he (with Onodera’s help) salvaged data predicting the return of portions of Japan, and that data helped convince the rest of the world to continue recognizing Japan’s sovereignty. KITE in effect helped preserve the idea of Japan, not just among its remaining citizens (the Muto family in particular) but among the international community.

Which leads us to one of the strongest criticisms leveled against the series: that it, like its source novel, is a jingoistic piece of nationalistic propaganda, meant to promote the 2020 Tokyo Olympics. I’d argue that: 1.) Yuasa kept very little of the original novel, and, 2.) the series if anything is an argument against nationalism. When Japanese athletes do march in the 2020 opening ceremonies (an event that, right off, marks this series as taking place in an alternate universe) it’s as citizens of a country whose land has vanished. These athletes, like KITE, believe in the idea of Japan, of a people with marked flaws (provincialism; suspicion of outsiders or those who seem different) and even more marked virtues (the ability to work hard and when challenged, work harder; the ability to get along with others under the worst circumstances; the ability to sacrifice oneself for the common good). The athletes wave these flaws and virtues higher than any mere flag, and invite all and sundry (including paraplegics and those of mixed racial blood) to imitate, possibly integrate, perhaps declare themselves in turn honorary Japanese citizens in a gesture of solidarity (as an American president once declared, inspired by similar sentiments: “Ich bein ein Berliner”).

But the series, I submit, does more than celebrate Japan (as a concept not necessarily as a nation): it captures the mood of desperation we all feel, isolated and struggling to stay in contact and stay sane. Japan Sinks with its beleaguered but persistent optimism feels like perfect viewing in this time of corona, an essential if eclectic tool for mental well-being we can include in our select survival kit.

Stuff to do at home

Art Talk: We bring Edvard Munch to You

THE Munch Museum is holding a webinar about Edvard Munch’s relationship to the coast, nature, and recreation. The talk will be helmed by curators Patricia Berman and Signe Endresen. The talk can be seen free of charge by following this link: https://vier.live/acts/munch-relationship-to-the-coast-nature-and-recreation, on Aug. 18 at 4 p.m. UTC+02. (UTC 4 p.m. in Manila is at midnight). Other talks may also be accessed at the museum’s Facebook page, @munchmuseet. 

Philippine Philharmonic Orchestra’s pocket concert series

THE PHILIPPINE Philharmonic Orchestra (PPO) continues its concert series PPO By Your Bedside, on Aug. 7, 8 p.m., on the Cultural Center of the Philippines’ website. The concert’s repertoire will include the songs “Usahay” by Gregorio Labja, to be performed by Joy Allan De la Cruz on the viola; “Bayan Ko” by Constancio de Guzman, to be performed by Jay Ar Mesa on the French horn and Manuel Agustine Chua on the guitar; the Pangasinense folk song “Malinac Lay Labi” as performed by Dino Decena and Christian Tan on violin, Rey Casey Concepcion on the viola, Giancarlo Gonzales on the Cello, and Rommel Cruz on the contrabass; and Wency Cornejo’s ”Hanggang,” performed by Hercules Santiago on flute, Christian Tan on violin, and Giuseppe Diestro on cello. PPO By Your Bedside is part of The Music for Healing: PPO in Quarantine Pocket Concert Series, an ongoing program which can be viewed on the PPO FB page and the CCP YouTube as platforms. Initially intended as an online music offering to Filipinos who are recuperating in their beds in hospitals or at home as therapy to aid in their healing, it also aims to accompany the whole family in coping with the pandemic situation and the frontliners who bravely provide their services to fellow countrymen in need. The series offers two other programs, the PPO in the Workplace pocket concert and the PPO in your Living Room pocket concert.

Gabriel Barredo’s Opera by Ballet Philippines

GABRIEL BARREDO’S Opera, with choreography by Redha, considered by Ballet Philippines’ President Kathleen Lior-Liechtenstein as one of their best performances, will only be available for streaming until Aug. 14 as the ballet has been accepted to the International Ballet Festival of Miami 2020. The ballet is currently on view on the Ballet Philippines website: ballet.ph.

Bimpo Improv offers class

IMPROVISATIONAL theater group Bimpo, is holding an hour-long session featuring improv games and exercises “in a safe, non judgmental space.” Called Quaranbreak: Pause and Play, the session is free and will be held on Aug. 15, 7 p.m., via Zoom. Slots are limited. To register, go to https://tinyurl.com/y5a5dvvh or message 0956-554-1933.

PETA’s Online Theater Workshops

THE PHILIPPINE Educational Theater Association (PETA) is holding a series of online theater workshops starting Aug. 17 until Sept. 5. Topics include introductions to visual arts and writing, acting workshops for screen and theater, and creative musical theater. For more information and to register, visit www.bit.ly/PETAOnlineWorkshop or contact betitasarmiento@petatheater.com or via 0926-406-6858.

PPO Instrument Petting Zoo spotlights the French Horn

THE PPO Instrument Petting Zoo continues with its live online program with the spotlight on the French Horn on Aug. 9 at 4 p.m. via the PPO Facebook page. French horn player Jay-Ar B. Mesa, a member of the horn section of the Philippine Philharmonic Orchestra (PPO), will talk about the French horn and demonstrate how it is played. Mesa will also perform classical pieces suited for the French horn. The PPO Instrument Petting Zoo, a project of the Cultural Center of the Philippines and the PPO, aims to promote appreciation for musical instruments of the orchestra and its music among children and families. It is held every Sunday at 4 p.m., and runs for several months. 

Ballet Philippines holds masterclass

BALLET PHILIPPINES’ Masterclass by the Masters this week features Victoria Ananyan, a Principal Dancer at Les Ballet de Monte Carlo, on Aug. 7, 4 p.m. For details go to ballet.ph.

Enchanted Kingdom’s Kiddie Chef Challenge 2020

ENCHANTED KINGDOM’S Kiddie Chef Challenge 2020: Recipes from Home Edition is an online challenge open to all aspiring little chefs ages four to 12 years old who want to show off their culinary skills. The child’s food entry, made  using Purefoods Tender Juicy Hotdog, SPAM Luncheon Meat and/or Magnolia products inspired by one of EK’s seven themed zones (check the official website for information on EK’s zones www.enchantedkingdom.ph), can be shared until Aug. 11. Winners will be announced on Aug. 14, and will receive four Regular Day Passes each plus a special gift basket from EK partners. To join one must first “like” Enchanted Kingdom’s official Facebook page. All entries must have the complete recipe (including the participating products used) and a photo collage of the finished dish with participant’s photo while cooking. Post the photo at EK Kiddie Chef Challenge FB post’s comment section, and use the hashtags: #EKKiddieChef, #iloveEK and #EKatHome. For more information, visit Enchanted Kingdom’s official website and Facebook page at www.enchantedkingdom.ph and www.facebook.com/enchantedkingdom.ph or click https://web.facebook.com/notes/enchanted-kingdom/kiddie-chef-challenge-recipes-from-home/3624944944200412/?_rdc=1&_rdr to know the complete contest mechanics.

Infection risk prompts big push to set up worker salary accounts

THE Department of Labor and Employment (DoLE) said employers need to minimize physical contact when paying their workers by setting up accounts they can deposit wages to.

In Labor Advisory No. 26 dated Aug. 3, the DoLE said it aims to “encourage and enable all private establishments” to use salary accounts for wages and other benefits, to minimize the possibility of spreading the coronavirus.

It said employers must also help their workers gain access to “formal financial services for the promotion of their welfare, to reduce costs and risks of physical cash disbursement, and to promote digital payments as a safer alternative to physical exchange of bills and coins, thereby reducing physical contact and minimizing transmission or spread of…COVID-19 (coronavirus disease 2019).”

Employers were also encouraged to help unbanked workers gain access to electronic money services. Employees with bank accounts should also be given the option to receive their pay via PESONet, the central bank’s electronic payments network.

Management should collect no additional charges for directly depositing salaries, and were encouraged to tell their workers about the advantages of having formal accounts, it said.

The DoLE also recommended that companies seek the assistance of the Bangko Sentral ng Pilipinas Center for Learning and Inclusion Advocacy for materials on financial literacy. — Gillian M. Cortez