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House to NTC: Explain ABS-CBN closure order

THE House legislative franchises committee ordered the National Telecommunications Commission (NTC) to explain why it should not be held in contempt for issuing a cease-and-desist order against ABS-CBN Corp.

“You are ordered to explain within seventy-two (72) hours from receipt of this Order why you should not be cited in contempt or preceded against for issuing an Order to ABS-CBN Corporation to immediately cease and desist from operating its radio and television stations,” said Palawan Rep. and House legislative franchises committee chair Franz E. Alvarez in his letter.

Mr. Alvarez said that the NTC did not uphold its assurance to the House of Representatives that it would let ABS-CBN continue its operations “until such time that Congress has made a decision on its application.”

“The act of NTC constitutes undue interference on and disobedience to the exercise of power of the House of Representatives, and therefore, an affront to its dignity and an inexcusable disrespect of its authority,” it said.

While the letter is dated May 5, 2020, the Office of House Speaker Alan Peter S. Cayetano told reporters via Viber that the letter was e-mailed to the NTC on Monday afternoon. The NTC acknowledged the receipt of the letter on the same day.

Specifically, the NTC officials included in the said show-cause order are Commissioner Gamaliel A. Cordoba, Deputy Commissioner Edgardo V. Cabarios, Deputy Commissioner Delilah F. Deles and Head of NTC Legal Branch Ella Blanca B. Lopez.

“Your failure to comply with this Order within the period prescribed will result in a finding against you for contempt of the House of Representatives and subject you to other actions that are within the powers of the House of Representatives to enforce,” the order said.

ABS-CBN went off air on May 5 after receiving a cease-and-desist order from the NTC on the same day.

Cagayan de Oro Rep. Rufus B. Rodriguez filed a House Joint Resolution 30 that seeks to grant a provisional franchise to ABS-CBN to be able to operate until June 30, 2022.

Since ABS-CBN’s previous franchise expired on May 4, Mr. Rodriguez also filed House Bill No. 6694 to grant the media giant a new franchise for 25 years.

Meanwhile, House of Representatives Minority Leader Bienvenido M. Abante, Jr. filed House Bill 6701 seeking the abolition of the National Telecommunications Commission (NTC) for its alleged “defiance” to Congress over the franchise of ABS-CBN.

There are 11 pending House bills on ABS-CBN’s franchise renewal, but none have hurdled the committee level.

SENATE ASKS NTC TO RECONSIDER
Also on Monday, the Senate on adopted the resolution asking the NTC to reconsider the cease-and-desist order issued against ABS-CBN.

With 12 affirmative votes, zero negative and nine abstention, the chamber adopted Senate Resolution No. 395, in line with its position that a provisional authority may be granted to the media network.

Among those who abstained were Senators Vicente C. Sotto III, Cynthia A. Villar, Imee R. Marcos, Ronald M. dela Rosa, Christopher Lawrence T. Go, Panfilo M. Lacson, Ramon B. Revilla, Jr., Francis N. Tolentino, and Pia S. Cayetano, who also withdrew from being one of the authors.

“If we are discussing the franchise of ABS-CBN, I will vote in favor of the franchise but we are tackling a resolution that is countering the prerogative of the Executive Department that they’ve already made, and I am inclined to abstain from the vote,” Mr. Sotto said ahead of the voting, Monday.

Meanwhile, 13 Senators on Monday filed Senate Bill No. 1521, granting the network a provisional authority to continue operations while its franchise awaits Congress approval.

The bill extending the franchise of ABS-CBN and unit ABS-CBN Convergence, Inc. for another 25 years is pending at the committee level.

“The non-renewal of ABS-CBN franchise will result in the loss of thousands of jobs as the network has over 11017 employees, including its artists, independent contractors, suppliers, and content creators who are spread out in ABS-CBN’s information and entertainment group of companies,” the Senators said in the explanatory note.

They also cited the network as among the country’s largest taxpayers, contributing P70.5 billion between 2003 and 2020.

Moreover, the Senators cited the need for a reliable source of information as the country deals with the crisis brought by the coronavirus disease. — Genshen L. Espedido and Charmaine A. Tadalan

The return of the cubicle? Firms rethink office life post lockdown

MILAN/LONDON — Can creative sparks fly through plexiglass? Is the water cooler chat a thing of the past?

Company bosses preparing to reopen offices shuttered due to the coronavirus pandemic are contemplating radical changes to the workplace to keep staff safe.

Hand sanitizers and thermal scanners are just the start. Some firms are considering remodelling their offices to minimize the risk of a second wave of infections. Long rows of desks may be out, work stations sheathed with glass sneeze guards may be in.

As he prepares to return thousands of staff to offices across Italy, Davide Sala, Pirelli’s HR boss, is applying practices already adopted in the tire company’s operations in China.

The changes included temperature tests, face masks, and more space between desks that allowed the group to resume at least some office work.

“We’re going to use the China model elsewhere,” Mr. Sala said. “There will be more space for staff, fewer people in rooms, and the layout of the offices will have to change.”

Mr. Sala is looking at whether to designate staircases for entry and exit, limit elevator use to one person per ride, introduce a shift system for lunch, stagger work times while also having people still work from home and re-imagining desk layouts.

“The real break with the past will be in redesigning the offices,” he said.

China is ahead of most of the world in lifting restrictions put in place to slow the spread of the virus and Pirelli is one of many multinational companies to have tested post-lockdown measures there.

How radical and permanent those changes are is not yet known, as scientists struggle to fully understand the virus and drug companies strive to find a vaccine that protects people.

But strategies deployed by companies including WPP, Rentokil Initial, and PageGroup show how a typical 9 a.m. to 5 p.m. day at a hot desk in a packed building will not be resumed when governments globally give the green light for offices to reopen.

PACKED LUNCHES
For the world’s biggest advertising company WPP, staff will return gradually and on a voluntary basis, Chief Executive Mark Read told Reuters.

“What we can say with confidence is that more people will be working from home in the future, and I think we can say we’ll still have offices,” he said.

Almost all WPP’s 107,000 staff have been working from home since mid-March. In China, it has slowly introduced its 7,000 staff back to its 50 offices over the past two months after a four-week shutdown.

WPP has also adopted flexible working hours, limited the number of people in elevators, and, with the canteen buffet off the menu, staff are bringing in their own food.

PageGroup, the UK-listed recruitment company, has set aside one entrance at offices in China where staff line up each day for a temperature check and to collect a mask, Rupert Forster, managing director of the China business, said.

It’s also encouraging people to bring in their own lunch to avoid busy communal areas and is minimizing large group meetings.

Those measures will form the blueprint for the management team overseeing the return of some 7,500 staff to other offices, Mr. Forster said.

It’s a similar story elsewhere.

Since reopening its seven main branches in China last month, Rentokil’s 600 staff stay in the office for about four to five hours a day, a spokesperson said. It has also rejigged seating plans, making sure there’s an empty seat between each desk.

SANITIZING OFFICE LIFE
International real estate company Cushman & Wakefield, which has overseen the return of almost a million people to offices in China, has come up with a visible workplace design to help clients prepare their employees for the “six feet rule” of social distancing.

“It comes down to some basic concepts, things like colored carpet or, in a less sophisticated or expensive application, taping off what six feet workstations look like. So it’s very visual,” said Bill Knightly, who works on the company’s COVID-19 taskforce.

In some cases, they’re proposing installing plexiglass or some other form of sneeze or cough guards to give additional insurance — a pandemic twist on the old cubicle model.

For workers used to interacting on open plan floors, sanitizing office life and boosting remote working could limit their opportunity to swap ideas and weaken company culture. It also makes integrating new staff more difficult.

“What we have to watch out for is the unintentional creativity and watercooler discussions. You lose that,” said Hauke Engel, partner at McKinsey’s sustainability practice.

Some companies are seeking short-term fixes to get through the next few months.

“Companies are hesitant to invest at scale in what may be a transient situation,” said Mr. Enkel. He declined to give a figure for the size of investment that may be needed.

But others are preparing for a more radical makeover of building design to ensure workplaces can still thrive alongside this virus and any future health threat.

That may mean more flexible layouts with breakout areas, more personal space and ventilation systems that clean the air and kill pathogens, according to Darren Comber, chief executive of British architect firm Scott Brownrigg.

Buildings may have bigger elevators, make staircases more pleasant to promote their use, and use paint, films and materials that kill viruses.

“If you need a mask, then you haven’t dealt with the problem,” said Mr. Comber.

At Pirelli, Mr. Sala is bracing for those kinds of radical structural changes.

He estimates a staggered restart at the company’s offices will take four months. Then the second phase will start with architects and consultants advising on how to remodel offices.

He thinks retooling factories was easier.

“Redesigning the offices is the real challenge.” — Reuters

Airlines seek nearly P9-B monthly aid

By Charmaine A. Tadalan
Reporter

AIRLINES in the Philippines are asking the Congress for P8.6 billion in monthly assistance to sustain operations while strict travel restrictions are in place due to the coronavirus disease 2019 (COVID-19) outbreak.

The Air Carriers Association of the Philippines (ACAP) on Monday said the needed funds would cover P1.3 billion for wage subsidy, P500 million for payment of fees, and P6.8 billion for working capital.

“Our estimate that we have also submitted to Congress is a wage subsidy of P1.3 billion per month…, submitted and consolidated coming from the carriers; in terms of other support, we pay about P500 million to the aviation authorities monthly,” ACAP Executive Director and Vice-Chairman Robreto Lim told the Senate Committee on Public Services.

“We have requested also a working capital of P6.8 billion for the carriers. The total of that is P8.6 billion,” he added.

He noted the P500 million monthly payment to aviation authorities goes to the Manila International Airport Authority, Civil Aviation Authority of the Philippines (CAAP), Mactan-Cebu International Airport Authority and the Clark International Airport Corp., among other provincial airports.

ACAP is composed of Philippine Airlines, Inc. (PAL), Cebu Air, Inc. (Cebu Pacific), Philippines AirAsia, Inc., Air Philippines Corp. (PAL Express), and Cebgo, Inc.

The committee, led by Senator Grace S. Poe-Llamanzares, was conducting an inquiry on the resumption of public transportation, which was suspended due to the implementation of the enhanced community quarantine (ECQ).

President Rodrigo R. Duterte placed in mid-March the entire Luzon island on a lockdown, which suspended classes, work and public transportation. This was later extended by two weeks until April 30 and again until May 15.

The government also imposed a one-week suspension on inbound international flights starting May 3. CAAP later said it would relax restrictions by allowing inbound flights but with a cap of 400 passengers per day, starting May 11 to June 10.

“There’s absolutely no revenue generated by the local carriers. Any extension of the ECQ, of course, will further increase the losses,” he said.

Mr. Lim said the International Air Transport Association (IATA) estimated the industry would incur losses of $4.9 billion until the end of the year.

He added ACAP projected that the airlines would be able to resume only 20-30% of their network due to lack of consumer confidence and other issues relating to the risk assessment of local government units.

According to IATA, about 500,000 workers are at risk of displacement. This covers some 25,000 regular employees and those working for associated airline entities, including those engaged in travel and tourism, and the hospitality sector.

“Right now, there’s no large-scale lay off of employees in the aviation industries. The ACAP carriers have continued to maintain the workforce, and wage subsidy from Congress would help the airline industries to sustain it,” he said.

Senators Risa N. Hontiveros-Baraquel said she is open to the proposal considering it guarantees job security of the 500,000 employees.

“Since the labor cost is a significant part of that then I suppose the other side of it is some assurance of security of tenure for the existing employees,” Ms. Baraquel said.

Senator Ralph G. Recto asked ACAP to submit the proposal for the Senate’s consideration when it takes up the stimulus package proposal.

WFH during the ECQ: Timson’s Darren Pangan

AS the Philippine workforce has shifted into a work-from-home (WFH) dynamic to prevent the spread of the coronavirus disease 2019 (COVID-19) in the country, Darren Blaine T. Pangan, Head of Online Trading and Trader at Timson Securities, Inc., has been monitoring the local stock market and performing his day to day office duties from the safety of his home.

In this e-mail interview done on May 6, Mr. Pangan said that the work-from-home situation just showed how creative and adaptive Filipinos can be despite a health crisis such as COVID-19 and movement restrictions implemented due to the lockdown.

The interview was lightly edited for clarity.

WHAT IS YOUR PREFERRED MEETING METHOD AND WHY?

Since my type of work doesn’t require a lot of video conferences, I would usually talk to clients and workmates via Viber and Facebook messenger. Viber calls seem more than enough for quick calls, while Facebook Messenger comes in handy since we’re all used to the app already.

CAN YOU DESCRIBE YOUR HOME OFFICE?

My home office consists of a simple study table and a comfy office chair, both of which have been in my room since my university days. Given that my study-room-turned-office-area is situated at the second level of our two-storey house, I always bring a jug with me to keep myself hydrated. [As the] humidity level seems to be increasing over the past few days, to not experience this not-so-friendly weather, I usually stay downstairs at our dining area. As long as I have my laptop, charger, and strong internet access, I’ll be able to monitor and execute trades in the local stock market.

WHAT TIME DO YOU START YOUR WORKDAY NOW COMPARED TO BACK WHEN YOU ACTUALLY WENT TO THE OFFICE?

There isn’t really much of a difference, since I usually arrive at the office around 7 a.m. despite the call time being 8:30 a.m. Now that I don’t have to commute going to Ortigas, I spend the extra time eating a heavier breakfast as I read up on what transpired through the night on US and European equity markets. After cleaning myself up, I then prepare for the day’s tasks by making a list of things to do. I realized that my productivity rose the moment I utilized to-do lists.

DOES WORKING FROM HOME MAKE YOUR WORK HOURS MORE FLUID?

Working from home has allowed me to focus on my tasks more efficiently, taking away the thought of going through the heavy traffic at EDSA for one to two hours just to get home.

That one to two hours of extra time has allowed me to definitely spend more time monitoring the financial markets as well as become much more responsive to client inquiries and concerns.

DO YOU TAKE BREAKS AT HOME?

It’s just the usual lunch and merienda meals. I don’t take a lot of breaks and time seems to fly really fast.

DO YOU STILL DRESS UP FOR WORK?

Since we don’t really do a lot of video calls, I just wear my usual home clothes. I do take a bath before and after working, though. I think hygiene has to be taken seriously as we go through this pandemic.

ANY INTERESTING STORIES FROM YOUR WORK FROM HOME EXPERIENCE?

Given that I sometimes work at the dining area to escape the hot weather upstairs, my family suddenly gained access to my reactions as I watched the local market fluctuate. There was one time that the local market was dropping big time, and I couldn’t help but express my surprise for the market’s movement during that day. I guess I was overly expressive that day than I usually am, but it was just because it wasn’t a normal day in the market. I saw blue chip stocks fall tremendously. I may have been too surprised that my family asked what was happening.

I guess working from home gives your loved ones the chance to witness your work routine, habits, and mannerisms.

WHAT IS THE MOST IMPORTANT LESSON YOU HAVE LEARNED FROM WORKING FROM HOME? HOW WILL THE “NEW NORMAL” AFTER THE QUARANTINE ENDS AFFECT THE WORLD OF WORK?

There was quite a lot which I learned for the past few weeks I have been working from home, but I think being able to witness how teams recoup and organize themselves to become as efficient as being in the office is so fascinating to watch. It goes to show how adaptable humans are in times of need.

IS THERE ANYTHING YOU WILL CONTINUE DOING EVEN AFTER ECQ?

I would now give higher value on the people, places, and things around me that seem to have been neglected all along. The little things. It’s different for every person I guess, depending on their values and way of life. I’m sure, though, that personal hygiene is something that we can all agree on giving more attention to after ECQ (enhanced community quarantine).

DID YOU HAVE ANY SLIP-UPS DURING OFFICIAL WORK STUFF?

There are times when I’ve had too much coffee to drink, and somewhere during the hours when the stock market is open, I’ll have to go to the comfort room. Unfortunately, some clients call at that precise moment while I’m in the toilet. Sometimes, I do take calls in the toilet, but more often than not, I answer my phone after cleaning up. I do not have to worry, anyway, because our toilet has a lot of carpets to keep the echo at a minimal level. — Revin Mikhael D. Ochave

BusinessWorld Insights to focus on COVID-19, stock market

WHILE the coronavirus disease 2019 (COVID-19) continues to make a negative impact on the Philippine economy, it has also severely affected investor confidence and the stock market. Still, experts believe that there is a silver lining in this volatile situation.

On May 13 at 11 a.m., BusinessWorld Insights: “COVID-19 and The Philippine Stock Market: Uncertainties and Opportunities,” will help the audience understand better the current stock market situation that will guide them on their next investment journey.

This is the third and last leg of BusinessWorld Insights under the first phase of the online forum series with the theme “Laying Out the Macro Scenario for Businesses Amid COVID-19.”

Confirmed speakers are Ramon S. Monzon, Philippine Stock Exchange, Inc. president and chief executive officer; April Lynn Tan, vice-president and head of research, COL Financial; and Justino B. Calaycay, Jr., VP-head of research and traditional sales, Philstocks Financial, Inc.

The online forum series, scheduled every Wednesday, 11 a.m., will be shown live in BusinessWorld’s (facebook.com/BusinessWorldOnline) and The Philippine STAR’s (facebook.com/PhilippineSTAR) Facebook pages and will be uploaded in BusinessWorld’s website (www.bworldonline.com).

BusinessWorld Insights, organized by premier business daily BusinessWorld, seeks to give the Philippine business community a better outlook on the impact of COVID-19 and help the country prepare for post-pandemic recovery by bringing in high-caliber speakers and experts to hold an intelligent online discussion, moderated by BusinessWorld editors.

The Phase 2 of BusinessWorld Insights will discuss “The Aftermath: Lessons from the COVID-19 Pandemic” and will start on May 27.

The forum is made possible by sponsors SM, Megaworld Corp., Globe Telecom, PayMaya, and National Home Mortgage and Finance Corp.; eLearning platform partner Olern; partner organizations Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Association of National Advertisers, and Bank Marketing Association of the Philippines; and media partner The Philippine STAR.

For more information, e-mail Shai Cordero at smcordero@bworldonline.com.

Hagibis’ Sonny Parsons, 61

ACTOR and former Hagibis band member Jose Parsons Nabiula, Jr., better known by his stage name Sonny Parsons, died on May 10, at the age of 61, from a heart attack while riding his motorcycle.

His death was confirmed by his friend Manuel Rigor, a member of the 1970s disco group VST and Company through a Facebook post. Mr. Rigor said Mr. Nabiula was riding his motorcycle in Lemery, Batangas when he had a heart attack. He was headed for Quezon province.

“Ride free, Sonny. We had good and bad times. Thank you for the memories, lakay. You will be missed. So sad,” Mr. Rigor said in his post.

Actress Vivian Velez, who also functions as the director-general of the Film Academy of the Philippines, mourned his death in a Facebook post on May 10.

“Another Legend of OPM’s Pinoy Discorama… Rest in peace Senyor Sonny Parsons of Hagibis. Ride to paradise my friend,” Ms. Velez said.

From the 1970s through much of the ‘80s, Mr. Nabiula was a member of the Manila sound group Hagibis, also called the “Village People of the Philippines” because of their similar penchant for campy onstage costumes, catchy songs, and suggestive lyrics.

The band was formed by Juan dela Cruz band singer Mike Hanopol and Viva executive Vic del Rosario. The original lineup included Mr. Nabiula, Bernie Fineza, Mike Respall, Joji Garcia, and Mon Picazo.

Hagibis was known for song like “Legs” (1979), “Katawan” (1979), and “Nanggigigil” (1979).

Beyond his singing career, Mr. Nabiula transitioned to acting after the singing group starred in the film Legs Katawan Babae by Tony Ferrer in 1981. In 1997, he produced, directed, and starred in the film Bala Para sa Katarungan.

His IMDb page lists 33 credits as an actor but only includes films and series he did until 2005. His last acting appearance was in action-drama series FPJ’s Ang Probinsyano in 2017.

Mr. Nabiula was also a city councilor in Marikina. — Zsarlene B. Chua

Wilcon income down 32% on rising expenses

WILCON Depot, Inc. posted a 32% contraction in earnings in the first quarter, weighed down by higher operating expenses and the closure of stores in late March.

In a regulatory filing on Monday, the home development retailer said its net income for the first three months fell by P155 million to P328 million. Net sales also slipped 2.5% to P5.59 billion.

“Wilcon Depot was not spared from closure when the enhanced community quarantine (ECQ) was imposed by the Philippine government over Luzon on March 17, 2020… We closed all our 44 branches, which accounted for 84% of our net sales in 2020 pre-ECQ,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said in a statement.

Revenues from its depots, which comprised 96.1% of the pie, slid 2.4% to P5.38 billion. Home essentials contributed 14.8% less at P137 million, accounting for 2.5% of the revenues. The remainder is from project sales, which grew 21.1% to P79 million.

Ms. Belo-Cincochan noted Wilcon’s comparable sales was at a negative 8% for the quarter, as 40 of its 52 stores that are at least one-year old are located in Luzon and affected by the ECQ. Before the government imposed lockdown measures in March, she said Wilcon’s comparable sales growth was at 10.7%.

While revenues took a downturn, what really dragged the company’s bottomline was its operating expenses, which expanded 19.7% to P1.43 billion.

“The main factor that pushed net income downward was the increase in operating expenses year-on-year… (It was) traced mainly to the increase in lease and manpower related expenses,” Wilcon said in a statement.

The adoption of a new accounting standard, the Philippine Financial Reporting Standard (PFRS) 16, resulted in the growth of the company’s operating expenses. Add to that the salary increase rolled out across the board for Wilcon employees on April 1, 2019.

Given the declines, Wilcon said it is reducing its network expansion target this year to a maximum of six stores from eight to nine originally. It is also expecting that its topline and bottomline guidance of mid-teens growth is highly unlikely.

“What we are expecting though is a relatively faster recovery when mobility restrictions are lifted with pent-up demand from unfinished construction projects and new demand from the renovation, repair and maintenance market…,” it said.

The company added it is still in a “fairly strong financial position” as it is bank debt-free with cash and placements amounting to P3.93 billion.

Shares in Wilcon at the stock exchange shed 28 centavos or 1.77% to P15.58 each on Monday. — Denise A. Valdez

Gov’t hikes Treasury bill award, opens tap facility as rates drop

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it raised on Monday as rates declined across-the-board, pulled down by strong demand from investors holding excess cash.

The Bureau of the Treasury (BTr) borrowed P22 billion in T-bills yesterday, up from the original P20-billion program, as the offer was more than four times oversubscribed, with bids amounting to P87.187 billion.

National Treasurer Rosalia V. De Leon said the governments also opened the tap facility to raise another P10 billion via the one-year instruments.

The BTr made a full award of the P5 billion in 91-day T-bills it offered out of total tenders worth P22.322 billion. Rates for the three-month papers declined by 21 basis points (bps) to 2.269% from the 2.479% seen in the auction last week.

For the 182-day papers, the government decided to accept P7 billion in tenders, up from the programmed P5 billion, after the tenor attracted bids totaling to P27.321 billion. The six-month papers likewise fetched a lower average rate of 2.374% compared to the 2.625% posted last week.

The Treasury likewise raised P10 billion as planned via the 364-day papers from total bids of P37.544 billion at an average rate of 2.761%, down 18.4 bps from 2.945% previously.

Ms. De Leon said the auction committee decided to make a full award as average yields fell below secondary rate levels.

A bond trader said via Viber that strong demand pulled down rates anew as investors, “still awash with cash and excess funds nowhere to go,” have to put their money to work in safe-haven assets like government securities.

The trader said some investors might be “trying to save what is left” in their pool of funds instead of deploying cash for their businesses as situation here is still filled with uncertainty.

Metro Manila and some areas in the country have been placed under strict lockdown measures for two months until May 15, with officials still deliberating if these high-risk places are ready to reopen again.

Authorities have been warning of the possibility of a second wave of infections that could result in a heavier economic and death toll if these high-risk areas will be reopened prematurely.

Meanwhile, parts of Luzon deemed low-risk have started transitioning to a less strict lockdown last May 1, where non-essential businesses have been allowed to partially reopen while observing health safety protocols.

On Tuesday, the BTr will offer P30 billion worth of reissued seven-year Treasury bonds (T-bond) with a remaining life of two years and 11 months.

The government is planning to borrow P170 billion from the local market this month: P110 billion via its weekly T-bill auctions and the remaining P60 billion via T-bonds to be offered fortnightly. — Beatrice M. Laforga

‘What is the Filipino’ discussed in webinar

INSTITUTO Cervantes will be holding an online lecture tackling the Filipino identity by anthropologist Fernando Zialcita on May 13, 6 p.m.

The lecture will discuss and try to answer the question “What is the Filipino,” according to a release.

“Zialcita approaches this issue from the principle that the Filipino is neither East nor West, neither North nor South. The Filipino is all of these, for the Filipino is a griffin. Like the mythical animal that combines the head and wings of an eagle with the body of a lion, the Filipino brings opposites together,” said the release.

Mr. Zialcita obtained both his M.A. and Ph.D. at the University of Hawaii, and currently teaches at the Department of Sociology and Anthropology at the Ateneo de Manila University where he heads the university’s Cultural Heritage Studies program.

He specializes in heritage and identity, art and its cultural context, and interfaces between the foreign and the indigenous.

The online lecture will be in Spanish with simultaneous translation in English. Admission is free on a first-come, first-served basis via Zoom.

To access the webinar and for more information, visit facebook.com/InstitutoCervantesManila.

SMPC income falls as coal output declines

CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) posted a 43% drop in net income after tax to P1.2 billion in the first quarter as its coal business saw declines in production and export sales.

In a disclosure to the stock exchange Monday, the integrated energy firm reported its coal output went down 22% to 3.2 million metric tons (MT) in the quarter from 4.1 million MT in the same period in 2019.

It noted export sales plunged by 20% to 1.6 million tons, compared to 2 million tons registered in the same quarter last year, while domestic sales were almost unchanged at 1.6 million tons year-on-year.

Its average coal selling price decreased by 16% to P1,900 per ton from P2,272/ton in the same period from the previous year, brought down by the drop in global coal prices.

Meanwhile, the energy sales of its two units, SEM-Calaca Power Corp. (SCPC) and Southwest Luzon Power Generation Corp. (SLPGC), went up 8% to 692 gigawatt-hours (GWh) from 638 GWh last year.

However, average energy prices decreased due to lower global coal prices and the impact of the coronavirus disease 2019 (COVID-19) pandemic.

The average energy price at SCPC fell by 25%, while SLPGC saw its average energy price cut by 33% because of higher excess capacity to spot market and lower prices at the Wholesale Electricity Spot Market.

SCPC’s Unit 2 was down during the January-March period since its shutdown last October as it underwent a life extension program, while its Unit 1 was already operational in the quarter.

SLPGC’s Unit 1 went back online last Feb. 12 after its planned outage since December last year, while its Unit 2 went into planned outage on Feb. 19.

On Monday, shares in SMPC inched down 0.34% to close at P11.76 each. — Adam J. Ang

Office sector may recover in 2021

THE office market may bounce back as early as next year, if the coronavirus disease 2019 (COVID-19) outbreak is contained within the second half of 2020, according to research by the Lobien Realty Group (LRG).

“The Philippines’ real estate industry, in particular, has been seriously impacted by COVID-19 as the pandemic effectively put a stop to the operations of most businesses,” the real estate consultancy firm said in a statement.

In particular, the Metro Manila office market has considerably slowed since strict lockdown measures were implemented in mid-March.

LRG noted the expansion of Philippine Offshore Gaming Operators (POGOs) was halted due to the government’s travel ban on China and the enhanced community quarantine (ECQ) in Metro Manila.

POGOs, which have fueled the office market’s growth, has occupied 1.14 million sq.m. of office space since 2016

While the Philippine Amusement and Gaming Operations Corp. (PAGCOR) recently gave the green light for POGOs to resume partial operations, the outlook for their expansion remains dim.

“Projected POGO office demand this 2020 is 200,000 square meters (sq.m.) less as contribution from POGO is expected to slip by $0.8 billion (or around 0.2% of GDP),” LRG said.

Business process outsourcing (BPO) firms, which are feeling the pain from the pandemic, may consider expanding in the provinces rather than in Metro Manila. LRG noted the BPO industry saw office take-up of 400,000 sq.m. last year.

“BPOs, another hardest hit industry, may soon scout for alternative business locations in the emerging provincial hubs which offer more competitive rental rates and lower labor costs and have become sites of new government infrastructure projects,” LRG said.

LRH said there is currently a 15% office vacancy across all provincial business districts, with 257,000 sq.m. of new office space to become available this year.

“The average rental rate for provincial business hubs is at P606 per sq.m., which makes it more affordable than Metro Manila,” it added.

Meanwhile, traditional offices may opt to continue work-from-home arrangements with employees as a way to lower costs. Traditional offices leased 370,000 sq.m. of space in 2019.

However, LRG predicts “there could be an improved demand for office space by 2021 at a minimum of 700,000 sq.m. across Metro Manila, provided that the COVID-19 outbreak will be contained by 2nd half of 2020.”

“The demand for office space will be revived towards the latter part of the year once existing and new POGO companies as well as BPO companies continue their growth all over the country,” LRG said.

The BPO sector may also see stronger demand from global companies that need to outsource their businesses amid the pandemic, LRG added.

For the residential market, LRG said take-up will “likely soften” due to the travel restrictions and an expected rise in local unemployment.

“Prices in the secondary market are expected to decrease from its market value. Price appreciation will remain inactive depending on how the market will stabilize from the ECQ,” LRG said.

However, prices of new residential properties are expected to remain at the same level prior to the ECQ.

“There is an opportunity for the secondary market to grow as less affluent property owners dispose their assets for liquidity,” it added. — Cathy Rose A. Garcia

PBB books higher profit on core business’ growth

PHILIPPINE BUSINESS Bank (PBB) posted a 57.1% jump in its net earnings in the first three months of the year, supported by growth in its core businesses.

The lender’s net income grew 57.1% to P394.4 million in the first quarter from the P251 million seen in the comparable year-ago period, according to PBB’s filing with the local bourse.

“The start of 2020 has been challenging given the Taal Volcano eruption and the global COVID-19 (coronavirus disease 2019) pandemic. The bank showed good year-over-year growth in core income and net income,” PBB President and Chief Executive Officer Roland R. Avante was quoted as saying.

“In addition, opportune conditions in the treasury business will likely continue for some time in the first half. The bank is prepared to face trials brought about by the disruption,” Mr. Avante said.

“We have doubled our provisioning from the same period last year. We are also undertaking an extensive review of our balance sheet to ensure that we have a complete view and thorough understanding of the operations of our clients,” he added.

The period saw the bank’s interest income climb by 20.5% to P1.922 billion from P1.595 billion a year ago. Net interest margin settled at 5.21%, improving by 104 basis points from last year’s 4.17%.

Core income surged by 110.8% to ₱693.6 million from the P329.1 million in the first quarter last year.

The bank’s pre-tax and pre-provision profit increased by 63.7% to P695.9 million from P425.1 million a year ago. Profit before tax also expanded by 55.9% to P545.9 million from the P350.1 million seen a year ago.

Meanwhile, PBB’s total loans and receivables amounted to P85.6 billion as of end-March.

Assets grew 16.9% to P110.6 billion in the first three months of the year from P94.7 billion in the comparable year-ago period.

On the funding side, PBB’s deposit liabilities stood at P90.1 billion as of end-March. Low-cost funds increased by 33% while time deposits totaled P47.7 billion.

The bank’s deposit portfolio improved its low-cost to high-cost ratio to 47:53 from 41:59.

Shareholders’ equity stood at P13.1 billion, equivalent to a book value per share of P19.32 net of preferred shares.

The lender’s return on average assets settled at 1.40% while return on average equity was at 12.17%.

Meanwhile, its minimum liquidity ratio was at 23.64%, which is above the required 20%.

PBB’s shares ended trading at P9 apiece on Monday, up by 21 centavos or 2.39% from its previous close. — Luz Wendy T. Noble