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Cashless toll payments will soon be mandatory

THE Department of Transportation (DoTr) will soon make it mandatory for toll road operators to implement cashless and contactless transactions at all toll plazas, in order to curb the spread of the coronavirus disease 2019 (COVID-19) in the country.

Transportation Secretary Arthur P. Tugade signed a department order on Aug. 13 directing all concerned agencies to “formulate new processes and procedures within three months to ensure the smooth implementation of the new policy.”

Under the order, the Toll Regulatory Board (TRB) was directed to come up with rules and regulations requiring concessionaires and operators of toll expressways to transition to an electronic toll collection system.

The Land Transportation Office was also ordered to submit a study on how to implement a cashless and contactless system along toll roads.

The Land Transportation Franchising and Regulatory Board was tasked to check if all public utility vehicle operators will use and install cashless systems in their vehicles.

The DoTr said the contactless payment policy will be implemented on South Luzon Expressway (SLEx), Manila-Cavite Toll Expressway, North Luzon Expressway, South Metro Manila Skyway, Southern Tagalog Arterial Road (STAR) Tollway, Subic-Clark-Tarlac Expressway, and Cavite-Laguna Expressway.

Mr. Tugade acknowledged there may be “initial inconveniences” caused by the new policy, but stressed there will be long-term benefits.

SMC Tollways announced in June it will implement cashless payments in all of its toll roads. The first phase will cover the elevated section of the Skyway, NAIAX and SLEx starting October, while the second phase will cover at-grade sections of the three tollways, STAR Tollways and  Tarlac-Pangasinan-La Union Expressway in January 2021. To boost compliance among motorists, the company is offering free installation of RFID stickers to all vehicles that use these expressways.

Metro Pacific Tollways Corp. is also offering free Easytrip RFID (radio frequency identification) stickers for motorists who use the toll roads it operates.

In its “Guidance Note on COVID-19 and Transport in Asia and the Pacific” published July 24, the Asian Development Bank (ADB) said public transport has played a central role in the spread of the virus.

The ADB said the government can also promote a “more sustainable transport mode balance” by making sure public vehicles are clean, providing quality travel alternatives and encouraging walking and cycling to enhance overall health and well-being.

It added the resilience of public transport systems can be improved by making better use of advanced technology and promoting digital inclusion. — A.L.Balinbin

Meralco offers P101-M aid to power users

By Adam J. Ang

MANILA ELECTRIC CO. (Meralco) on Monday said it would shoulder a portion of the electricity bills paid for by its poor customers as a form of aid.

The utility giant gave in to a previous request by House Speaker Alan Peter S. Cayetano who asked the company to provide some sort of relief to about 2.77 million so-called lifeline consumers, or those who consume 100 kilowatt-hours of electricity and below.

Kami po ay magbibigay ng relief o ayuda sa kanila (We will provide them a relief), equivalent to a total of P101 million, mula sa aming (from our) distribution charge,” Meralco President and Chief Executive Officer Ray C. Espinosa told the House Committee on Good Government and Public Accountability.

The committee continues to probe the alleged high Meralco electricity charges to customers during the quarantine period.

The relief will be given to consumers with such low consumption as of February when the company last conducted its meter reading before a strict lockdown was imposed against the global coronavirus pandemic in mid-March.

Sila ay makakatanggap ng diskwento sa kanilang distribution charge (There will be a cut in their distribution charge),” Mr. Espinosa said.

Among bill components, the distribution charge, which forms 17.5% of its customers’ bills, goes directly to Meralco.

Meanwhile, the country’s biggest distribution utility is extending until end-October its self-imposed moratorium on sending out disconnection notices to customers who still cannot settle their arrears since the lockdown started.

Ie-extend ko po ang suspension ng disconnection hanggang end ng October para mas mabigyan ng panahon ang ating mga customers na makalikom ng sapat na pambayad sa kanilang mga bills (I’ll extend the suspension on disconnection until end-October to give more time for customers to pay their bills),” Mr. Espinosa said, responding to lawmakers’ request.

As of late, Meralco reported that it waived about P2.7 billion in guaranteed minimum billing demand (GMBD) charges to 87,728 business customers, most of which are small and medium enterprises.

It is still waiving as much as P272 million in said cost to around 28,500 business establishments operating at half of their capacities during a strict lockdown this month.

Also, Meralco said its customers were able to save P1.9 billion from its relaxed supply contracts. It was also able to return P64 million to customers whose meters were still not read until July from the start of the strict quarantine months.

The utility is still covering the convenience fees that its third-party provider is charging customers who are coursing their bills payments through the Meralco app. As of July, it refunded P30.4 million in said fees to 647,000 app users.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.

Megaworld targets more office spaces despite pandemic

By Denise A. Valdez, Senior Reporter

MEGAWORLD CORP. is targeting to launch 110,000 square meters (sq.m.) of leasable office space this year to strengthen its revenue streams while the coronavirus pandemic is ongoing.

In a virtual meeting with stockholders on Monday, Megaworld Chairman, President and CEO Andrew L. Tan said the company currently has 1.3 million sq.m. of leasable space in its inventory, occupied by more than 130 companies.

“By the end of 2020, we aim to have at least 1.4 million sq.m. of gross leasable space through the addition of another 110,000 sq.m. of fresh leasable office space,” he said.

“I believe that the value we continuously bring to our office space offerings will allow us to achieve this objective,” he added.

Megaworld completed around 192,300 sq.m. of leasable office space in 2019. Due to the coronavirus pandemic, it has cut its capital expenditures this year by 40% to P36 billion, and decided to stick with projects that have already been committed for completion.

“Our strategy of reinforcing office rentals even before the pandemic paved the way for our stable recurring income today, offsetting the slowdown in our mall business which was greatly affected by this health crisis,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said.

In the first half of the year, Megaworld’s profits dropped 34% to P5.9 billion, as revenues fell 25% to P23.8 billion. While its consolidated top line declined, revenues from its office leasing segment grew 10% to P5.6 billion.

Part of the company’s strategy in weathering the pandemic is continuing the development of its master-planned townships.

“As we mastered the art and science of building townships…we will now focus on expanding this concept by adding features that will further ensure that our communities will stand the test of time in any crisis,” Mr. Tan said.

While its spending plan has been reduced, Megaworld still intends to pursue expansion plans, land banking opportunities and digitalization investments.

“Megaworld is still firm in its belief that the tourism sector will remain as one of the key long-term drivers of the Philippine economy. As such, we are still keen on expanding our projects in townships such as Westside City, Boracay Newcoast, Twin Lakes and the Mactan Newtown,” Mr. Tan said.

“In the meantime, we will be monitoring the pace of recovery in the economy and consumer confidence levels. These are key factors to consider with regards to our investment plans moving forward,” he added.

Shares in Megaworld at the stock exchange shed seven centavos or 2.28% to close at P3 each on Monday.

ABS-CBN distributing more content to South America, Africa, Asia

MORE THAN a month after being denied a franchise, network giant ABS-CBN has pivoted and shifted its focus to expanding its distribution of shows to countries in South America, Africa, and Asia.

Among the shows that will be making their journey to other continents are Ang Probinsyano, Kadenang Ginto, Dahil May Isang Ikaw, and The General’s Daughter. In total, 14 shows will broadcast in the African continent while the Jericho Rosales and Kristine Hermosa starrer, Dahil May Isang Ikaw, which ran from 2009 to 2010, will be broadcast in Ecuador starting this month.

Dahil May Isang Ikaw is the third ABS-CBN show to be broadcast in Ecuador after Bridges of Love and Pangako Sa’Yo.

It can be argued that Pangako Sa’Yo, which ran from 2000 to 2002 in the Philippines, laid the groundwork for ABS-CBN’s syndicating its content outside of the Philippines as it has aired in Kenya, Malaysia, and Singapore. It was so popular that Cambodia made its own version in 2013. The Philippines remade the series in 2015 starring Daniel Padilla and Kathryn Bernardo.

To date, ABS-CBN content has reached around 50 territories around the world, amounting to about 50,000 hours of content, according to a company release.

The focus on exporting content is one of a series of shifts that has happened in the network in the last few weeks after its franchise was not renewed by Congress. Many of the network’s shows have been moved online, with Star Music launching a kids YouTube channel and the introduction of Kapamilya Online Live which will livestream ABS-CBN content on its Facebook and YouTube pages in early August.

The shutdown has also resulted in mass layoffs, with entire departments being let go. Even prominent ABS-CBN personalities and newscasters like Korina Sanchez-Roxas and Ces Orena-Drilon, among many others, had to be dropped by the network.

ABS-CBN also posted its first-ever loss as a publicly listed company, amounting to P3.9 billion during the first half of the year, attributed to the ongoing pandemic shrinking advertising budgets and the closure of the network, according to a company disclosure on the Philippine Stock Exchange last week. This was a steep decline from its reported P1.47-billion net income last year.

ABS-CBN has been publicly listed since 1992. — Zsarlene B. Chua

Gov’t fully awards Treasury bills despite slight increase in rates

THE GOVERNMENT fully awarded the Treasury bills (T-bills) it auctioned off on Monday even as rates inched up after the central bank’s decision to halt monetary easing and amid hopes of a “flattening” in the country’s coronavirus curve.

The Bureau of the Treasury (BTr) borrowed P20 billion via T-bills as planned out of P50.277 billion in bids, or more than twice the offered amount.

Broken down, the BTr made a full P5-billion award of the 91-day debt papers offered from P12.178 billion in tenders. The three-month papers fetched an average rate of 1.131%, up 1.3 basis points (bps) from the 1.118% logged in the previous auction last week.

It also raised P5 billion as planned via the 182-day T-bills out of total bids worth P11.661 billion. The average yield of the six-month papers inched up 1.9 bps to 1.407% from 1.388% previously.

For the 364-day securities, the Treasury raised the programmed P10 billion out of P26.438 billion in bids. The one-year instruments yielded an average rate of 1.751%, up by 0.6 bp from the previous rate of 1.745%.

National Treasurer Rosalia V. de Leon said after the auction that the results were as expected after the central bank kept its policy rates unchanged last week.

The policy-setting Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on Thursday kept benchmark interest rates steady amid a benign inflation outlook and signs of economic recovery. Rates on the BSP’s overnight reverse repurchase, lending and deposit facilities are currently at record lows of 2.25%, 2.75% and 1.75%, respectively.

Ms. De Leon said they expect the rates of the government securities to move “sideways or tad higher” moving forward.

With the recent upticks in rates, a bond trader said it is “hard to think that rates will stay this low,” particularly for the shorter tenors as the market sees faster inflation next year and with hopes of a rebound after the University of the Philippines (UP) said it forecasts a possible “flattening” of the coronavirus infection curve by September.

“Hard to reconcile with higher inflation expectations for next year and recent comments from UP that the curve may flatten by next month,” the trader said via Viber.

The central bank aims to keep inflation within 2-4% this year and in 2021. The BSP last week raised its inflation forecast for this year to 2.6% from the 2.3% given in the June policy review. The 2021 and 2022 forecasts were likewise hiked to 3% (from 2.6%) and 3.1% (from 3%), respectively.

Guido David, a research fellow at the UP-OCTA, said in a radio interview on Monday there is still a chance that the curve will be flattened by the end of the month or next month as the reproduction rate of the disease — or the number of individuals that a virus carrier can infect — slows.

He said the rate slowed after a stricter lockdown was reimposed in Metro Manila and its nearby areas. However, he stressed the need to sustain containment efforts to avoid a resurgence of cases.

On Tuesday, the BTr will offer P30 billion in reissued 20-year Treasury bonds (T-bonds) that have a remaining life of 12 years and seven months and a coupon rate of 3.635%.

The government has set a P170-billion borrowing program for August. It will auction off P110 billion in T-bills weekly and P60 billion in Treasury bonds fortnightly.

It plans to borrow around P3 trillion this year from local and foreign lenders to plug its budget deficit seen to hit 9.6% of gross domestic product. — Beatrice M. Laforga

Revenues of electronics components firm fall as lockdown restrains demand

By Jenina P. Ibañez, Reporter

ELECTRONICS components company RS Components Corp. saw its revenues halved during the lockdown, an effect of lower demand from manufacturing companies cutting production as they lose customers.

“It’s a snowball effect,” RS Components Philippines General Manager George R. Santiago said in an interview on Wednesday.

The company’s clients consist mostly of multinational and local manufacturers, where it provides industrial maintenance, operations, and repair products as well as electronics.

These manufacturers, Mr. Santiago said, have been struggling with decreased product demand that lowered their production rate.

They also limited their on-site work force and saw slower movement of goods due to checkpoints and restrictions.

“Shipment of finished products were hampered and also shipment movement of raw materials were also affected,” Mr. Santiago said.

But RS Components returned to 85% of its pre-lockdown performance in July after restrictions were eased.

The company expects 2021 revenues to grow from its 2019 performance. Mr. Santiago said the company had been growing in double digits in the five years to 2019.

The growth, he said, will be largely caused by manufacturing companies resuming their delayed projects.

“Some of our customers, because of the pandemic, (have) put off their projects — expansions, additional production lines — because they are now focusing on buying only the essentials. But come next year, we expect demand to also start to pick up so they would continue with their planned expansion.”

RS Components also anticipates higher demand in automation and digital solutions products in the coming years.

Mr. Santiago said that the company has been responding to more inquiries on automation tools that could help companies check customer temperatures and count the number of people in a space without human intervention.

He said that automation was previously not prioritized by companies because labor in the Philippines is cheaper than the cost of the technologies.

“Because of this pandemic, companies now have realized that even the manpower caused a disruption in the operations, and there’s more demand now for automating whatever process they could automate.”

The company has also been seeing more inquiries for its digital solutions automating the procurement process.

Salawikain are the focus of short film tilt

TO CLOSE both the celebrations of the One Hundred Years of Philippine Cinema and National Language Month, the Film Development Council of the Philippines (FDCP) is holding a short film competition focusing on Philippine sayings (salawikain).

Called the SineWikain Challenge, the competition asks participants to select a saying from a list posted on the competition website (http://www.fdcp.ph/sinewikainchallenge) and turn it into a short film of two-minutes or less using a smartphone, which should then be posted on social networking sites Facebook, Twitter, or TikTok. The posted films should tag the FDCP and follow a caption format for the entry to be considered.

“Spotlighting the interpretation of salawikain into vertical short films, #SineWikainChallenge is a social media challenge meant to remind Filipinos about childhood teachings while also providing positive content and values that could uplift us amid the pandemic,” the council said in a press release.

The competition was said to be the idea of veteran actor Leo Martinez and was “partly inspired by the Good Moral and Right Conduct (GMRC) Law, which institutionalized GMRC and Character Development as part of the K-12 curriculum,” said the release.

The contest has two categories: an adult category for those aged 18 and over and a youth category for those aged 17 and below. Group participation is also allowed though a group may only be composed of a maximum of three people per submission and each individual or group is limited to one entry for the challenge.

The sayings on the FDCP list include musings about learned behaviors (Ang gawa sa pagkabata, dala hanggang pagtanda — what is done in one’s childhood lasts into adulthood), family values (Aanhin mo ang palasyo kung ang nakatira ay kuwago — what for is a palace if a owl lives there), love (Ang pagsasabi ng tapat ay pagsasamang maluwag — speaking the truth is equal to a good relationship), friendship (Ang tunay na kaibigan makikilala sa kagipitan — a true friend is known in hard times), and individual values (Madali maging tao, mahirap magpakatao — it is easy to be a human, it is hard to be humane).

The two first place winners in the short film competition’s two categories will receive P15,000 each, those in second place will receive P10,000 each, while those in third place will get P5,000 each. Twenty others in each category will also win P2,000.

The deadline for the submission of entries is on Sept. 20 and the announcement of winners will be on Sept. 23 on FDCP’s Facebook and Twitter pages and the Pista ng Pelikulang Pilipino and Sine Sandaan pages.

FILM ARCHIVE
Aside from the short film competition, the FDCP also announced that it has successfully processed for archiving select films from the University of the Philippines Film Institute film archive.

A total of 1,024 film reels were handed over to the FDCP in 2019, among them an original print of National Artist for Cinema Gerardo de Leon’s Noli Me Tangere (1961 and Bayan Ko: Kapit sa Patalim (1984) by National Artist for Film and Broadcast Arts Lino Brocka.

The FDCP reported that it has completed “rewinding, transfer, and inventory” of the films and categorized them as Class A (minimal damage) and Class B (medium to heavy damage). The films are currently being stored in the interim film archive in the FDCP offices in Manila.

The two films by Mr. De Leon and Mr. Brocka were tagged as priority for restoration because of their “significant historical and cultural values.” Restoration will include digitizing the films and generating access copies for the public.

The FDCP has so far restored nine films in its collection and is currently restoring two more. Taking care of the films for archiving and restoration is the responsibility of the Philippine Film Archive (PFA), a department under FDCP.

“There is excitement during acquisition; feeling of loss before we leave, seeing some films that were destroyed in time; thrill during inspection; and tension during the handling of some delicate and damaged films,” PFA head Don Gerwin Arwan said in a statement.

“Then, there is pleasure after initial cleaning and transfer to a new container, and fulfillment when we complete the inventory and put them on racks or inside the film vaults. And before the day ends, we feel very honored to be able to do this for our country and for the present and future generations,” he added.  Zsarlene B. Chua

Potential house buyers on the rise during lockdown period — Lamudi

MORE property hunters are showing interest in buying houses during the time Luzon was under a strict lockdown, online property marketplace Lamudi found.

In a report on Monday, Lamudi said the traffic on its website for properties for sale rose to 68%-74% when the enhanced community quarantine (ECQ) was in place, making up 56% of the inquiries on its platform.

The island of Luzon was under ECQ starting mid-March to end-May to contain the spread of the coronavirus disease 2019 (COVID-19). Several parts of the country remain on a relaxed lockdown to date.

The rise in traffic on Lamudi’s platform reflects a change in behavior from property hunters, who used to view properties for sale but end up placing inquiries on properties for rent.

“Lamudi’s initial trend report (in May)… showed a renewed interest in house and lot properties after the ECQ has been implemented. This trend seems to continue on a climb to reach pre-COVID percentages on the platform during the start of the year,” it said.

Leads on house properties posted an average week-on-week growth of 3% during the first half of 2020. Leads on foreclosed properties saw the highest week-on-week growth at 4%, which Lamudi attributed to their affordability.

On the other hand, condominiums and apartments posted a 3% and 1% decline on leads during the six months, respectively. This may be due to seekers choosing to hold on to cash while the pandemic situation remains uncertain, Lamudi said.

It also noted that areas with central business districts remain the top pick of property hunters, as Quezon City, Makati City, Pasig City and Taguig City lead both the most viewed and most inquired cities on the platform.

“Since public transportation has been suspended from March to May and is on limited operations, property seekers may have looked for residential properties closer to their workplaces, especially those who have been deemed as essential workers and are at higher risk to the virus,” it said.

“This move can also keep their loved ones safe from the virus, especially if there are family members that are more susceptible to COVID-19,” it added.

Seekers are also paying more attention to amenities as most are working from home during the lockdown period. Lamudi said the most searched amenities during the first half were swimming pool, air-conditioning, Wi-Fi and balcony.

“Connectivity and quality of life are the two most important considerations for property seekers,” it said.

But as the Philippine government continues to adjust quarantine restrictions every two weeks, Lamudi said data might again change in the second half to reflect new trends in real estate. — Denise A. Valdez

Game makers battle to boost accessibility for players with disabilities

AS A KID growing up in Cedar Rapids, Iowa, Randy Fitzgerald couldn’t make friends by playing sports. He was born with arthrogryposis, a muscle and joint disorder that made activities like soccer or baseball out of the question. Over time, he discovered another powerful way to bond with his peers — video games.

These days, Fitzgerald, 41, is a renowned gamer, known in the pro community as N0M4D. Since his arms and legs have limited mobility, he plays by using his upper lip and chin. When he’s not competing, he also consults with video-game companies on ways to improve their products for players with special needs.

Recently, such efforts have been gaining momentum across the gaming world. “A lot more people are able to be in the public eye and show what they can do with our disabilities,” he said.

The rise in prominence of gamers like Fitzgerald reflects a broader movement in the industry, advocates say, to make video games more accessible for people with visual, hearing, or motor impairments. In the ultra-competitive $150-billion market, improved accessibility for disabled players has become one more way that game makers can stand out. Such considerations, for example, have already opened up a new front in the fierce battle between Sony Corp. and Microsoft Corp. for supremacy in the next generation of video-game consoles.

Craig Kaufman, director of community and outreach for AbleGamers Charity, which provides resources for gamers with disabilities, said the evolution is being driven, in part, by social media. Forums such as Twitter and Discord, an audio platform used by gamers, have led to more discussions about accessibility and a greater awareness of the issue among hardware and software makers.

The major turning point, he said, happened in 2018 when Microsoft’s Xbox began selling its first adaptive controller — a long rectangular device with two large domed buttons on its face that can be specially customized by users. Microsoft promoted the product with a Super Bowl ad featuring a new slogan: “When everybody plays, we all win.”

“That got a lot of the industry talking,” Kaufman said.

Other companies have since followed suit.

In June, Sony and developer Naughty Dog came out with The Last of Us: Part II, a highly anticipated adventure game for the PlayStation 4 set in a post-apocalyptic version of the US that has been ravaged by a global pandemic. The game offered extensive features for players with disabilities, including those with low vision and color blindness.

Victor Branco, a Portuguese writer for Game Accessibility Nexus who has degenerative myopia, said The Last of Us: Part II has great text-to-speech capabilities, sound cues and controller features, such as vibrating when an enemy is near.

“Not having that feeling that at any moment I will have to call someone to overcome a barrier that prevents me from completing a part of the game,” he wrote. “Not feeling tired in the eyes because I have to force them, I end up saving a lot of energy that I can use for what the game really intends me to do, enjoy the gameplay and story.”

Tara Voelker, accessibility program manager and disability community lead at Xbox, said that such considerations need to be incorporated into the early stages of game development to be successful. “If you just thought about it from day one, it would have been super easy,” she said. “But if you forget about it, and you wait until you’re further down the product line, retrofitting it can be stupid hard.”

Karen Stevens, the accessibility lead for Electronic Arts, Inc., said that it can be difficult to anticipate every obstacle ahead of time in every game. For major franchises like Madden NFL football or FIFA soccer, she said, feedback from consumers is invaluable. If one version lacks a certain accessibility feature and it gets pointed out by gamers with disabilities, it can be included in the next product.

“Obviously, we’re a very large company — we make a lot of games,” she said. “So it’s very difficult to catch everything. But we know every little bit we try is a little bit better than it would be otherwise. It’s a journey. It’s not a one-step thing.”

Voelker said that the industry can become more inclusive by hiring more game developers (aka “devs”) with disabilities. “I talk a lot about the reason games are inaccessible is because we don’t have a lot of developers who have disabilities,” she said. “It’s kind of a Catch-22: You don’t have a lot of game devs with disabilities because a lot of games are inaccessible. So why would someone choose to go into game dev if they can’t play games?”

Fitzgerald, who has seen a lot of progress since he was a kid, said that he expects more barriers to fall in the years ahead.

“Newer developers are coming in with new ideas,” he said. “You know it’s these fresh minds in the industry, envisioning a better future in favor of everybody.” — Bloomberg

Digital operations to boost Singlife amid coronavirus pandemic

LIFE INSURER Singapore Life (Singlife) Philippines sees growth in its digital-only and agent-less operations as Filipinos become more open to the use of technology amid the coronavirus disease 2019 (COVID-19) pandemic.

As the ongoing pandemic highlights the use of technology, Singlife Philippines Chief Executive Officer Rien Hermans said selling insurance products through digital means puts the company in a better position than others who use the traditional, face-to-face method.

“[Among the changes that the pandemic has caused] in behavior is people are now more used to communicating digitally, so that would be an advantage for us. And they become very reluctant in meeting strangers [which] might be negative [for the industry] because agents will have a more difficult job to do. But for us, that’s actually a slight advantage. People might move to digital instead of meeting with somebody outside,” Mr. Hermans said.

However, he said an agent-less operation is as a “double-edged sword” even as it lowers distribution costs significantly with the help of technology as they still have to make up for the lack of sales agents who communicate directly to clients.

“Most products are distributed through agents and banks. While they do a very good job, they are also very expensive because on average, an agent in the Philippines sells one policy per month and in banks around five policies a month, so you can imagine the costs of distribution,” Mr. Hermans said.

“Compensating the lack of having a face-to-face sales person with having mobile apps that allow you to transparently see what you are buying and you have control over it 24/7 replaces the need for the face to face contact. And in that way, we can make it much cheaper,” he added.

He said based on their research, potential clients aged 25-35 years and earning decent monthly wages said they do not want to approach an insurance salesperson as “they feel obliged to buy something they don’t need.”

Meanwhile, he said the pandemic also highlighted the importance of insurance among Filipinos and encouraged them to build an emergency fund to prepare for unexpected events such as pandemics.

The use of mobile apps and other digital means surged amid the coronavirus pandemic when people were ordered to stay home during the strict lockdown imposed in March-May. This continued to rise as fears of contracting the disease and other safety protocols forced many businesses and consumers to go digital.

Singlife Philippines secured its license from the Insurance Commission in February to become the first fully digital life insurance company in the country.

It plans to launch its initial products this year through GCash.

While their digital systems have already been established, Mr. Hermans said the slow internet speed in the Philippines might be a challenge for the company and they have to adopt workarounds such as adding offline features.

The insurer plans to introduce its flagship insurance savings plan known as Singlife Account by early next year and capture 500,000 clients in the next five years. — Beatrice M. Laforga

WeWork gets a boost as firms eye alternative work arrangements

By Jenina P. Ibañez, Reporter

WEWORK PHILIPPINES saw 10% growth in enterprise members over the lockdown as large companies sought alternative work arrangements for employees.

Enterprise members, which usually have over 500 full-time employees globally, increased over the March-to-July period.

“When we look at the enterprise segment, these are members that tend to take up a much larger chunk of spaces with us. They may have robust requirements in terms of the IT and security, and they tend to also commit to a longer period of time,” WeWork Head of Growth for Southeast Asia and Korea Ray Tan said in a recent online interview.

He said companies are looking for a provider of a hub-and-spoke workspace model that can help them distribute their work force across multiple locations to follow physical distancing guidelines.

“Companies that are proven to be essential services during this time, they need to strengthen their business continuity strategy as well. They wanna be empowered with space flexibility to instill the confidence in their employees and in their overall operations that they start to bring employees back to work in a safe manner.”

The company has been implementing physical distancing in its spaces, decreasing the capacity in common areas and boosting sanitation measures.

Mr. Tan said that some companies that have seen losses due to the pandemic are trying to decrease their real estate commitments and relocate to smaller spaces.

“When the situation gets better and when the economy starts climbing up again, they want to have that flexibility of hiring more employees without terminating their lease. The flexibility that we provide really suits the recalibration of businesses.”

He said, however, the companies who have committed to recent agreements have already had those workspace requirements before the pandemic, including those that have switched to longer-term contracts with WeWork.

Mr. Tan expects new client agreements to develop “in the next quarter or so.”

“In general, a lot of companies are still trying to navigate this situation right now. Some companies are adopting a wait-and-see approach…those may take a bit of time.”

He also did not share information on WeWork’s growth targets in Manila, and the potential opening or closing of co-working spaces.

“Different cities are going through different phases right now. In the Philippines we see a lot of enterprise members that have the need to support business critical functions like business processes.”

He said the Southeast Asia market is in the early stages of flexible spaces usage.

The company is currently focused on large enterprises in Manila, but has seen some recent interest from small and medium-sized enterprises.

WeWork Philippines spaces can be found in Makati and Taguig City.

The global company is on track to have positive cash flow in 2021, WeWork Executive Chairman Marcelo Claure told the Financial Times last month.

AirAsia, Agoda team up to revive travel activity

AIRASIA GROUP BERHAD on Monday announced its partnership with digital travel platform Agoda in a bid to revive travel activity in the region.

In a statement, AirAsia said the partnership hopes to provide convenience to travelers as it enables the sharing of flight and hotel inventories.

“Travelers will gain access to a more extensive multi-product selection,” the airline group said.

“Initiatives from the collaboration include travel bundles, membership privileges as well as joint product marketing,” it added.

AirAsia customers can choose from over 600,000 Agoda properties.

Agoda started as an e-commerce startup in Singapore in 2005, and it now offers over 2.5 million properties in more than 200 countries and territories, AirAsia said.

AirAsia Group Berhad Chief Executive Officer Anthony Francis “Tony” Fernandes reiterated the partnership is part of the group’s strategy to “revitalize travel as we anticipate the reopening of borders in Southeast Asia in the near future.” 

“This collaboration reflects our commitment to providing greater convenience, choice and value to our customers, which has become ever more important in this post-pandemic environment. We are taking the opportunity during this downtime to work innovatively with strategic partners like Agoda, so we can better serve our guests’ travel and lifestyle needs,” he added.

He said more strategic ventures are being developed and will be announced “when the time is right.”

Agoda Chief Executive Officer John Brown believes the public’s appetite for travel remains “strong.”

“We believe that our collaboration with AirAsia will help take the hassle out of travel by helping travelers to easily find great value deals as they venture out again,” he said.

Mr. Brown said the initiative between the Southeast Asian travel brands has a wider impact on the confidence of accommodation partners, hospitality providers and related aviation industry players.

“It’s imperative we work innovatively with our partners to find solutions and do our part to stimulate demand and help the wider travel and tourism industry,” he said. — Arjay L. Balinbin

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