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From China with love

By Cecille Santillan-Visto

Fan Meeting
Dylan Wang Fun Meet
July 20
Araneta Coliseum

IF THERE is one export from China that the Philippines is willing to receive with open arms, it’s celebrities. More specifically, Dylan Wang.

The 20-year-old Chinese star, who headlined the 2018 revival of the TV series, Meteor Garden, sparked a frenzy when he held his first ever fan meeting at the Araneta Coliseum in Quezon City over the weekend. The event was part of his promotional blitz as one of the newest image models of the fashion and lifestyle brand, Bench.

In a press conference held shortly before the fan gathering at the Big Dome, Mr. Wang — who played Dao Ming Si in Meteor Garden that is loosely based on Japanese manga, Boys Over Flowers — said he was astonished to learn that he has a huge following in the Philippines.

“I didn’t expect it. When I checked online (through Weibo), only then did I learn that I have a fanbase here,” he said.

“Just like the weather, Filipinos are very warm… I am very happy to be a Bench ambassador,” he added, noting that it was his first visit the country.

Some of the biggest local celebrities already model for the homegrown clothing line but from time to time, Bench also appoints international brand representatives, tagged as “Global Benchsetters.”

The actor-singer-model joins a stable of foreign stars endorsing Bench which includes Liam Hemsworth, Taylor Lautner, and Lee Min Ho, Park Hyungsik, and Park Seo Joon of Korea.

For Bench, the appointment of Mr. Wang as an endorser is considered something of a milestone as Jerry Yan of F4, the original Dao Ming Si, also promoted Bench in 2003.

Although very sporty and appearing to prefer hip-hop fashion, the former flight attendant, who at one time was the representative of all stewards and stewardesses in China, said fashion should not compromise comfort.

“Just wear whatever you want, whatever makes you happy. But personally, I prefer comfortable and loose clothing,” said Mr. Wang, who wore a simple white shirt, black jeans, a red and blue jacket, and rubber shoes.

At the fan meeting, the basketball enthusiast donned a white T-shirt with the words “I love Manila” written in both Chinese and English, jeans, and white high-cuts with red and yellow embellishments.

The “fun meet” itself last little over an hour, including a 30-minute question-and-answer portion and the 15 minutes allocated for an autograph session with 100 lucky fans who qualified after spending at least P20,000 on Bench merchandise.

Ten audience members won onstage passes and the opportunity to play a game with Mr. Wang. They were made to spin a roulette wheel and win the corresponding prize: bouquet of flowers, a selfie with the actor, a mobile phone voice recording, or a signed poster.

A fan who was first to call a designated mobile number was also allowed to ask the actor a question. Special gifts were likewise given to spectators who managed to catch huge balloons during the “zygote game.”

The event also gave thousands of supporters the opportunity to get to know Mr. Wang better. A product of a talent search, Super Idol, and a castmember of The Inn 2, a reality show similar to Big Brother, he said these two programs helped mold him as an entertainer.

For Meteor Garden, considering that it was a remake, he admitted that he was conscious not mirror the portrayal of Mr. Yan.

“I added my own style and flavor to the role of Dao Ming Si. I did my best not to copy (the Jerry Yan version) and interpreted the role as I saw appropriate,” he said.

He acknowledged that he has similarities with his TV character in some aspects, particularly the immaturity and playfulness. While he misses his stint in the airline industry a bit, he said that “doing different things and meeting a lot of people,” which are the best parts of being an actor, compensate.

Although he has no specific dream roles, if given the choice, he wants to play more offbeat parts. He also wants to try various genres from drama to fantasy-action, to complement his love story/romantic comedy experience. He requested the audience wait for his next major project, The National Southwest Associated University and Us, which revolves around the trials and tribulations of students during the Japanese and Chinese War. The TV drama will be released in October.

When not busy with projects, he continues to enjoy playing games and traveling with friends.

Though very young and still establishing his credentials as an actor, Mr. Wang has already caught the fancy of Asian drama addicts the worldwide. Fueled by the emerging “fan economy” in the Philippines, it is safe to say that Bench’s bet on Mr. Wang was well worth the investment.

MPIC unit extends tender offer for MDI shares

METRO PACIFIC Hospital Holdings, Inc. (MPHHI) has extended its offer to buy P2.261 billion worth of shares in Medical Doctors, Inc. (MDI), in a bid to give shareholders time to think the deal through.

In a notice published in a newspaper Thursday, MPHHI said it has extended the tender offer to Aug. 9 from the original July 26 deadline. It has secured approval from the Securities and Exchange Commission for the extension.

“The offer period is extended to give MDI shareholders more time to consider the offer and clarify some terms, and prepare the necessary documentary requirements,” MPHHI said in the notice.

The company said a total of 17,636 shares have been tendered as of July 24, way below its target of acquiring up to 563,000 outstanding common shares in the operator of Makati Medical Center.

The shares represent about 16.6% of the total outstanding shares of MDI, which if fully tendered will bring MPHHI’s ownership in the hospital to no more than 49.9%. MPHHI currently holds a 33.3% stake in the company.

With the extension of the deadline, MPHHI will also push back the settlement date to within 10 business days after the termination of the tender offer, or depending on when it gets approval from the Philippine Competition Commission.

MPHHI will pay 75% of the total purchase price for the MDI shares on the settlement date, while the balance will be paid within five calendar days from the delivery to the offeror of the original and valid certificates authorizing registration from the relevant revenue district office of the Bureau of Internal Revenue authorizing the transfer of shares.

MPHHI is the hospital unit of conglomerate Metro Pacific Holdings, Inc., which also has core interests in power, water, infrastructure, and logistics.

The company last May shelved its plan to conduct an initial public offering, contrary to its earlier plans to raise about P15 billion to finance its expansion.

MPIC then said it will divest some of its shareholdings in MPHHI, which is seen to be valued at about $2 billion.

Shares in MPIC went up by a centavo or 0.21% to close at P4.80 each at the stock exchange on Thursday.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. 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. — Arra B. Francia

Singing at the LRT

MORE THAN 70 musical performances, ranging from busking to full-on gigs — at various locations including LRT stations are what this year’s Linggo ng Musikang Pilipino (Philippine Music Week) is featuring until the end of July.

The annual event has been held on the last week of July since 2015 and is organized by the Organisasyon ng Pilipinong Mang-aawit (OPM) and the National Commission for Culture and the Arts (NCCA). The weeklong festival aims to “promote the awareness and appreciation of all forms of Filipino music” through a variety of on-site and online performances in a number of cities including Baguio and Davao City, according to a press release.

The event was created after President Rodrigo R. Duterte signed Presidential Proclamation 933 which declared the last week of July as Philippine Music Week.

Touted as “what may possibly be its biggest and most diverse festival lineup yet,” the festival events include the seventh restaging of Rak of Aegis on July 27 and 28 at the PETA Theater in Quezon City.

“[Linggo] has always shown consistency in terms of championing top-notch Filipino music,” Herminio Jose “Ogie” Alcasid Jr., president of OPM, was quoted as saying in the release.

A themed musical showcase from 1990s icons such as Barbie Almalbis, Wency Cornejo, Dong Abay, and Cooky Chua is set on July 31 at Historia Boutique Bar and Restaurant in Quezon City.

Ms. Chua will also perform on July 28 with the Manila String Machine at the Power Plant mall in Makati City. Laira Maigue, Noel Cabangon, and Aikee will perform at Lucky Chinatown mall in Manila on the same day.

Other themed showcases are scheduled within the week in bars across Metro Manila.

The festival is also bringing live music to LRT stations, events called “Railway Jams.” The remaining performances will be on July 26 at the Doroteo station (with performances by Maxine Marie, Ace Dyamante, Kian Dionisio, and Miss Ramonne) and July 27 at the Monumento station (Vanessa Mendoza, Calde, Vanz Bonaobra, and Jai Barrientos). Performances are at 4 p.m.

Busking sessions are scheduled until Sept. 20 at the PETA Theater Center in Quezon City.

There will also be performances in provinces including in Ayala Malls Legazpi, Albay on July 28 which will feature bands like Upbeat Ska and Green Leafy Vegetable.

“The celebration is an assertion to inject in the consciousness of the Filipinos that we have our own treasure trove, local and regional, written in national and local languages, of songs that reflect our culture,” Noel Cabangon, OPM board member was quoted as saying in the release.

“We Filipinos should have the consciousness to support it. We are on our 5th year since the Presidential Proclamation 933 was signed in 2014. It is very young. And it is a struggle. But it is very important that we have this mandate from the government. At least now we’re gaining grounds. Hopefully we’ll get more support in the years to come.”

The full schedule of performances can be viewed on the OPM’s official Facebook page, facebook.com/PinoySingers. — ZBC

AirAsia Philippines says Q2 load factor hits 91%

PHILIPPINES AirAsia, Inc. flew 2.2 million passengers during the second quarter of 2019. — FILE PHOTO REUTERS

PHILIPPINES AirAsia, Inc. reported its load factor rose to 91% during the second quarter as it ferried 2.2 million passengers.

The Philippine unit of AirAsia Group Berhad said in a preliminary operating statistics report that it booked a load factor of 91% in the second quarter, growing from 87% in the same period last year.

Load factor is the measure used by airlines on how much an aircraft’s carrying capacity is utilized.

“AirAsia Philippines added an additional 18% capacity in (the second quarter of 2019) on increased frequencies of domestic routes,” said the report posted on the company’s website.

The increased capacity allowed AirAsia Philippines to record a 22% increase in the number of passengers flown during the three-month period to 2.2 million, from 1.8 million in the same period last year.

AirAsia Philippines President and Chief Executive Officer Dexter M. Comendador said in a chance interview last month the company performed “as good as the first quarter” in the April to June period.

“We increased our capacity, added aircraft. And travel is talagang booming sa Philippines kasi gumaganda ’yung economy natin [Travel is really booming in the Philippines because of our improving economy]. Since we’re offering the lowest fares, talagang ’yung mga bagong angat ng estado [those who are starting to earn more] are enabled to travel,” he said then.

The local unit of AirAsia Berhad posted a 12% growth in profit in the first quarter at P424.5 million, on the back of a 27% increase in revenues at P6.68 billion.

It is targeting to swing to profit by the end of 2019 from a loss of P2.11 billion last year. It also set its revenue target at P30 billion this year and about P50 billion in the next three years.

Meanwhile, AirAsia Philippines recently entered a partnership with flight school Omni Aviation Corp. for a cadet pilot training program.

The company said in a statement the program will offer up to two years of technical and leadership training to aspiring AirAsia cadets.

The carrier will shoulder the costs for its employees, and subsidize for those that are not part of the company, which the cadets will reimburse upon completion of the program.

“We’ve partnered with Omni Aviation, a leading Filipino training provider, to offer ten cadetships in the initial batches and the opportunity to embark on a new career with (AirAsia),” Mr. Comendador was quoted as saying. — Denise A. Valdez

Taylor Swift, Ariana Grande lead VMA nominations but K-Pop fans unhappy

LOS ANGELES — Taylor Swift and Ariana Grande dominated nominations on Tuesday for the MTV Video Music Awards (VMA) with 10 apiece, but some K-Pop fans cried foul when best-selling Korean bands were placed in a separate category.

Ms. Grande’s breakup anthem “thank u, next” and Ms. Swift’s “You Need to Calm Down,” in which she criticizes social media trolls and those who attack LGBTQ people, will contend for the top prizes of song of the year, best pop, and video of the year.

Ms. Grande also got a nod for artist of the year along with rapper Cardi B, 17-year-old newcomer Billie Eilish, Halsey, the Jonas Brothers, and Shawn Mendes.

Korean boy band BTS, which has led a K-Pop music wave in the United States and scored three No.1 albums on the Billboard chart in the past year, got just four nods, including three in the newly created K-Pop category.

“BTS outsold… EVERY SINGLE… artist in the artist of the year category but the VMAs didn’t wanna see that so they made a whole new category just to not acknowledge the power and influence BTS has had over the whole industry,” tweeted a BTS fan called Chioma.

“I am getting so sick of the westerners not giving BTS the due respect. They ignore stats, facts, achievements, charts and the people as well,” a user called Shivani Shintre posted on Twitter.

MTV did not return a call for comment.

Fans vote on the winners of the VMA awards, which will be announced at a show in Newark, New Jersey, on Aug. 26, but they do not vote on the nominations.

“Boy With Luv,” a collaboration between BTS and American singer Halsey, received nods for best collaboration, art direction, and choreography.

Other nominees in the K-Pop field include girl band BlackPink, Monsta X, NCT 127, EXO, and Tomorrow X Together.

The new Video for Good field features songs deemed to have raised awareness. It includes Swift’s “You Need to Calm Down,” Halsey’s female-empowering “Nightmare,” Lil Dicky’s environmentally themed “Earth,” and John Legend’s “Preach” about social injustices.

Other nominees in the category include The Killers’ “Land Of The Free,” a protest against US President Donald Trump’s planned wall on the US-Mexican border, and “Runaway Train” about missing children. — Reuters

Blade Runner star Rutger Hauer , 75

AMSTERDAM — Dutch actor Rutger Hauer, best known for his role in science fiction classic Blade Runner, died on July 19 after a short illness, Dutch news agency ANP reported on Wednesday, citing his family. He was 75.

Mr. Hauer, whose funeral took place in the Netherlands on Wednesday, appeared in a total of over 100 Dutch and international movies. He won a Golden Globe in 1988 for his role in Escape from Sobibor.

In Blade Runner, Mr. Hauer played the part of android Roy Batty, the adversary of “blade runner” Rick Deckard, played by Harrison Ford.

Mr. Hauer starred in Dutch classics and Hollywood blockbusters as well as in a whole range of B-movies, in which he was mostly cast as the villain.

“I’m not very good at judging movie scripts,” he said in 1994, adding that the less budget a movie had, the more they were willing to pay him.

Mr. Hauer, who led a quiet life in the north of the Netherlands when not in Hollywood, used his money and fame to help children and pregnant women with HIV/Aids through his non-profit Starfish Association.

Dutch director Paul Verhoeven, who made five movies and TV series with Mr. Hauer, said he had lost his “alter ego.”

“He was to me what Marcello Mastroianni was to Fellini. I have only good memories.” — Reuters

Unions claim SoT Bill will save firms money

DAYS before the Security of Tenure (SoT) Bill is due to lapse into law, labor organizations pushed back on the business sector’s claims that the measure will raise their operating costs, saying that the current “end-of-contract” or “endo” schemes that deny workers a pathway to permanent employment cost more.

“Pababa ang kanilang operating costs kasi ang (Their operating costs will fall because the) agency fee or the contractor’s fee is 10 to 15% over and above the minimum wage of the workers. Mawawala ang cost din nila sa paulit-ulit na training ng mga manggagawa (They will also save on the repeated need to train workers who are) under an endo scheme,” Trade Union Congress of the Philippines (TUCP) Vice President Luis M. Corral said in a briefing Thursday.

The TUCP was conducting the briefing alongside the Federation of Free Workers (FFW) and Partido Manggagawa (PM), in a bid to get President Rodrigo R. Duterte to sign Senate Bill 1826 or the SoT Bill.

The Senate version of the SoT Bill, which was adopted by the House, thereby eliminating the need to harmonize it with the House version, is tamer than the House legislation, they said. The equivalent House bill had stiffer penalties for engaging in fixed-term employment, which the bill also prohibited across the board.

Nevertheless, the unions said the bill now before the President is a good starting point for ensuring that workers are granted security of tenure.

TUCP President Raymond C. Mendoza said the possible passage of the SoT Bill this weekend will not stop unions from proposing more measures in Congress that will further expand security of tenure protections. He added: “We intend to introduce amendments in the 18th Congress (to reinstate) the lost provisions of the House version especially the ban on fixed-term employment.”

FFW President Sonny G. Matula said at the briefing: “The Security of Tenure Bill is a watered-down version of what the groups have lobbied for and expect from Congress. On the other hand, it has strong points that the labor sector can work on… The provisions on labor-only contracting with increased penalties would strongly address rampant labor-only contracting.”

According to a joint statement issued by the TUCP, FFW, and PM, they support an SoT Bill-authorized fine of P5 million on owners involved in labor-only contracting. The SoT Bill also broadens the definition of labor-only contracting, making it easier to establish whether a contractor is involved in illegal contractualization — Gillian M. Cortez

Jollibee’s overseas push may cost stock’s premium valuation

JOLLIBEE Foods Corp. is buying coffee chain Coffee Bean & Tea Leaf. — CATHY ROSE A. GARCIA

JOLLIBEE Foods Corp., one of the most expensive Philippine stocks, could see its premium valuation deteriorate as the Manila-based restaurant operator pursues overseas expansion to cut its reliance at home.

Jollibee’s push abroad will dilute its Philippine story that persuaded many investors to pay a premium for the stock, according to analysts including Andy dela Cruz and Rachelle Cruz at COL Financial Group, Inc. and AP Securities, Inc. The company, the most expensive in the Philippine Stock Exchange index after Universal Robina Corp., is moving closer to its goal of getting half its sales from abroad with its purchase of Coffee Bean & Tea Leaf.

Jollibee, which started as an ice cream parlor in 1975, has beaten McDonald’s Corp. in the Philippines, one of the few markets the US fastfood giant has failed to dominate. Coffee Bean will raise the overseas component of Jollibee’s sales to 36% from 20% in 2018, according to the company, which has a presence in 18 markets outside the Philippines through a mix of homegrown brands and overseas acquisitions.

“This could trigger a downward re-rating for the stock,” AP Securities’ Ms. Cruz said. “Its aggressive push outside could be a signal its home market is getting saturated. And if you valued Jollibee for its Philippine focus, would you still give it the same value with its growing overseas business?”

Investors may already be having a change of mind in tolerating a steep valuation for Jollibee. After the stock sank 8% to a nine-month low on Wednesday following the purchase’s announcement, the shares fell as much as 4.8% Thursday. The sell-off sank the stock’s multiple to 28.99 times its 12-month estimated earnings, the lowest since March 2017 and a discount to its 34.75 three-year average. The benchmark stock index has a 16.42 multiple.

With $21 million in losses in 2018, analysts said Coffee Bean will be a drag for Jollibee, which booked a 15% drop in first-quarter earnings, its first decline in profit since fourth quarter 2015 due to losses at Smashburger, a US fast-food joint it took over in 2018.

“Investors liked Jollibee because of its concentrated business in the Philippines, so there is a risk it could lose part of that premium valuation with its overseas push,” COL Financial’s Mr. Dela Cruz said. “But if they are able to turn around both Smashburger and Coffee Bean then the market might give back that valuation.”

Luis Limlingan, head of sales at Regina Capital Development Corp., said Jollibee could need far longer than the usual three years it takes to revitalize its acquired businesses as it juggles both Smashburger and Coffee Bean. “Jollibee will take on one of its most ambitious acquisition maneuvers to date,” he said. — Bloomberg

PetroWind allocates P1.4 billion to expand capacity of Aklan wind farm

By Victor V. Saulon, Sub-Editor

PETROWIND Energy, Inc. is studying options to move forward the capacity expansion of its wind farm in Aklan at a cost of P1.4 billion, including the creation of a retail electricity supply (RES) business to sell the additional energy output.

“Hopefully if we are able to secure the off-take, we should aim to award the major contracts by the fourth quarter of this year,” Francisco G. Delfin, Jr., PetroWind executive vice-president, said after company officials showed the existing 36-megawatt (MW) wind project to reporters on Thursday.

He said the company plans to add 14 MW more, or seven more wind turbine towers to add to the existing 18 towers. Five of the turbines are in the town of Malay and the rest are in the nearby Nabas town.

“Total cost would be P1.4 billion. Mas mababa na (It will be lower),” he said, referring to the comparison with the P4.6-billion cost in building the existing Nabas-1 wind energy capacity in 2014.

PetroWind is a joint-venture firm owned by Thailand-listed BCPG Public Co. Ltd. (40%), EEI Power Corp. (20%) and PetroGreen Energy Corp. (40%). PetroGreen is a 90%-owned subsidiary of the Yuchengco-led publicly listed PetroEnergy Resources Corp.

Mr. Delfin said an “off-taker” or buyer of the planned Nabas-2 additional output could be forged through three ways, all of which are being studied by the company.

The first option is a traditional bilateral power supply agreement (PSA) with Aklan Electric Cooperative (Akelco) as the target off-taker. The coop’s power demand is about 61 MW, half of which is taken by popular tourist destination Boracay Island.

“Many of the hotels and establishments (in Boracay) are going back to Akelco rather than running their own generators,” Mr. Delfin said, adding that PetroWind’s proposition of providing energy will not only stabilize the distribution system but will also promote investments, jobs and boost tax payments through real property taxes and permits.

He said foreign tourists have become more conscious about sustainability, thus sourcing green power could be an added boost to the hotels and resorts. But the mode means going through a competitive selection process (CSP), thus the need to better package the company’s energy output.

The second option is participating in the government’s renewable portfolio standards (RPS), which requires utilities to source a portion of energy needs from renewables.

Mr. Delfin said the company had taken note of the National Renewable Energy Board’s announcement that it was considering to promote and install an additional 2,000 MW through the mechanism. The Department of Energy has also made the same pronouncement.

The third option is entering the retail electricity supply business, he said. The venture, should it push through, would be under PetroGreen.

“There are other existing RES companies that are approaching us in preparation for the availability of Nabas-2,” he said. “We’re really exploring the retail segment of the power industry.”

“We’re going to be applying soon for our RES license,” he said, noting that Supreme Court had put on hold rules relating to retail competition and open access (RCOA), including the issuance of new licenses.

Mr. Delfin said PetroWind was looking at internally generated funds, through PetroEnergy’s previous stock rights offering, to finance Nabas-2, and through bank financing.

Korean performer Cha Eun-woo to hold fan meet in Manila

CHA EUN-WOO

KOREAN actor and singer Cha Eun-woo will be coming to Manila for his first fan meet in October.

Wilbros Live will present “Cha Eun-woo 1st Fan Meeting Tour [Just One 10 Minute] in Manila” on Oct. 26 at the New Frontier Theater in Quezon City.

Cha Eun-woo started as a member of the popular K-Pop group Astro with the debut EP Spring Up. Astro subsequently named by Billboard as one of the best new K-Pop groups in 2016. He also ventured into hosting and acting while still part of Astro. The six-member boy group’s world tour this year, The 2nd Astroad Tour [Star Light], took them to different cities around the world including Taiwan, Hong Kong, Thailand, and the United States.

In 2018, Cha Eun-woo was cast in the romantic comedy series Gangnam Beauty, his first leading role on TV. It will air in the Philippines via ABS-CBN in August. He also currently stars in a historic drama, Rookie Historian Goo Hae-ryung, which airs on MBC and Netflix.

Tickets to “Cha Eun-woo 1st Fan Meeting Tour [Just One 10 Minute] in Manila” will go on sale beginning Aug. 10 via TicketNet.com.ph and at all TicketNet outlets nationwide. For more information, call the TicketNet hotline at 911-5555.

Bearing brunt of trade war, Singapore chipmakers cut jobs

SINGAPORE — Caught between a Sino-US trade war, political concerns over Chinese telecoms firm Huawei and slowing consumer demand, chipmakers in Singapore have started slowing production and laying off hundreds of jobs, firms told Reuters.

The slump in a sector that made up nearly a third of Singapore’s manufacturing output last year is reinforcing expectations that the export-driven economy could slide into recession in the coming months.

Making microchips for everything from cell phones to cars has long been central to the success of Singapore, the tiny trading island seen as a bellwether for the global economy.

“We are already seeing that this downturn is different,” said Ang Wee Seng, executive director for the Singapore Semiconductor Industry Association (SSIA).

Ang said he was “preparing for the worst” and putting his staff on standby to help any laid off workers try and find new jobs.

The semiconductor industry is a broad term for firms making electronic components including memory chips and microprocessors. Many of the world’s biggest chipmakers have operations in Singapore.

John Nelson, CEO of UTAC, a Singapore headquartered firm which tests and assembles chips, told Reuters he had started a “consolidation process” in Singapore which may result in a 10-20% head count reduction in the city-state by year end.

UTAC, backed by private equity firm TPG, has 10,280 employees worldwide of which around 1,700 are based in Singapore.

“We are taking the appropriate actions to make sure there is a future for our business in Singapore,” said Nelson, adding they may also add more days where the factory is closed and workers take unpaid leave.

Nelson said while the global industry was suffering, problems were magnified in Singapore due to high overhead costs like rent, wages and utilities.

“CROSSFIRE”
Lim Kok Kiang of Singapore’s Economic Development Board, a government agency which promotes the city-state as a business hub, said while the semiconductor industry faced challenges, Singapore remained competitive in the sector and has been attracting investment.

“The weaker global economic environment has affected demand in export-oriented sectors internationally, and the semiconductor sector is no exception,” he said.

Global semiconductor sales are expected to decline 12-13% in 2019, according to industry association SEMI, on course for their biggest drop since the dotcom bubble burst in 2001.

While the industry is used to swings in demand for the latest tech products, this slump is exacerbated by trade tensions between the United States and China.

The two superpowers have imposed tit-for-tat trade tariffs on a number of products, while the US has also banned firms from dealing with Huawei, the world’s biggest telecoms equipment maker, due to security concerns.

Firms in Singapore have been directly affected by these measures and caught in crossfire, said SSIA’s Ang, declining to give names.

Apple supplier AMS is another firm that has cut jobs in Singapore this year.

“We did reduce staffing in Singapore to adapt to more muted demand trends in the consumer market in the first half and to reflect improvements in manufacturing efficiency,” Patricia Moosburger, a company spokeswoman, said in response to emailed questions from Reuters.

Moosburger declined to comment on specifics but Singapore media reported as many as 600 people had been cut.

BELLWETHER ECONOMY
The semiconductor industry made up 28% of Singapore’s total manufacturing output in 2018, and 76% of its electronics production, official data shows.

Allen Ang of Aldon Technologies Services Group, a supplier of parts and services to semiconductor firms, said because Singapore exports most of its output, it is more vulnerable than other chipmaking hubs like Taiwan and South Korea which have more domestic electronics demand.

Ang estimates factories in Singapore are on average operating 10-15 percent below their utilization rate last year.

Singapore’s exports dropped to a six-year low in June, data released last week showed, mainly due to a 31.9% contraction in electronics exports — the sector’s biggest drop in a decade.

It was the latest in a slew of weak data that has reinforced some economists’ expectations the central bank will ease monetary policy in the coming quarters.

Singapore’s economy is seen as a gauge of global growth because international trade dwarfs its domestic economy.

The latest export data suggests Singapore is losing its electronics market share to other Asian countries, said ING economist Prakash Sakpal, citing its underperformance relative to Korea and Taiwan, as well as Malaysia, Philippines, Thailand.

But UTAC’s Nelson said despite the cutbacks, his firm was also making millions of dollars of investments in Singapore on equipment for new customers and projects, including for 5G networks, the next generation of mobile communications.

“I wouldn’t paint a picture that it’s all bad,” Nelson said.

“There is light at the end of the tunnel.” — Reuters

SSS digitizing processes, services

THE SOCIAL Security System said it is acquiring digital infrastructure. — BW FILE PHOTO

STATE-RUN Social Security System (SSS) said it is in the process of digitizing its processes to improve transactions after President Rodrigo R. Duterte in his State of the Nation Address included the pension fund in agencies that need improvement.

In a press release on Thursday, SSS President and Chief Executive Officer Aurora C. Ignacio said the pension fund has started acquiring new digital infrastructure “to fast track the full transition of SSS core and business processes to digitalization.”

“As mandated by our Social Security Commission ex-officio Chairperson Carlos G. Dominguez in his first order of business when he took office last March, he instructed to speed up the transition to the digitalization process. This is one of his priority policies under the new charter of the pension fund,” Ms. Ignacio said.

Mr. Duterte, in his SONA last Monday, said the SSS and the Land Transportation Office (LTO), Bureau of Internal Revenue (BIR), Land Registration Authority (LRA) and the Home Development Mutual Fund or Pag-IBIG need to improve their services.

Finance Secretary Carlos G. Dominguez said in a briefing on Tuesday that the slow service of SSS is “costing the public money” and ordered the agency to develop a system using technology instead.

“I told them (SSS), you know the way you’re doing your business, our estimate is it cost you seven pesos to deliver P100. Now, that is too expensive. Other countries…if I remember right…Japan, 50 centavos to deliver a hundred pesos worth of benefits. We [in the Philippines] cost seven pesos. I said you cannot continue like that. That is not government money, that is the money of the people,” Mr. Dominguez said.

“So if it cost me seven bucks to deliver you a hundred…that means to say that seven bucks less I can give to somebody else… Your inefficiency is costing the public money, directly. So I said the first thing you do, you digitize, you do it, you develop a system that you can communicate with your clientele through modern technology, use the cellphone, you know, the smart app,” he added.

“Other countries can do it, why can’t we? You do it through computer and then we can…actually expand the benefits and make it easier for them to get the benefits,” Mr. Dominguez said.

At present, SSS’ online services include online applications for social security number issuance, payment reference number inquiry and generation, employment report submission, submission of contribution and loan collection lists, salary loan applications, certification of salary loan applications and filing for maternity and sickness notification.

Other electronic channels of SSS are My.SSS, SSS Mobile App, Self-Service Express Terminal, Interactive Voice Response System and Text-SSS.

The pension fund said in the same statement that out of 6,609 SSS-related concerns referred by 8888 and the government’s Contact Center ng Bayan, it resolved 99.55% or 6,554 cases. — B.M. Laforga

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