Cosco Capital core income up nearly 15%

July 1, 2020 | 12:01 am

COSCO Capital, Inc. posted a 14.8% increase in consolidated core net income last year to P9.32 billion, which the listed retail holding firm attributed to the continuous organic expansion of its business segments and higher consumer spending.

In a disclosure to the stock exchange on Tuesday, the Lucio L. Co-led company reported a 115.5% increase in its net income attributable to equity holders of the parent company to P11.6 billion.

Cosco reported a 13% jump in its core attributable net income to equity holders to P5.87 billion in 2019, while its consolidated net income shot 81.5% to P15.39 billion, which included its one-time gain from the sale of Liquigaz, versus P8.48 billion in 2018.

The company’s grocery retailing businesses, namely: Puregold Price Club, Inc. and S&R Membership Shopping Club, accounted for 30% of total profits, followed by its liquor distribution with 11% and commercial real estate with 10%.

“The group’s specialty retailing segment, Office Warehouse, Inc., accounted for 1% of net profit. Cosco parent only including the one-time gain on sale of Liquigaz contributed 48% of profits,” the disclosure said.

In 2019, the consolidated revenues of Cosco’s grocery retailing segment went up 9.5% to P154.5 billion while its consolidated net income increased 9.2% to P6.77 billion.

Excluding the company’s one-time gain from the sale of its Lawson equity investment in 2018, the core net income of Cosco’s grocery retail segment rose 16% during the period.

A total of 28 new Puregold stores and two new S&R Warehouse clubs were opened by the company in 2019.

Cosco’s liquor distribution business reported a 22.5% increase in its revenues to P10.72 billion due to a 43% increase in volume of cases it sold in 2019.

“The growth is primarily driven by the continued strong sales performance of Alfonso Light Brandy and Alfonso Brandy,” the company said in the disclosure.

Revenues for Cosco’s commercial real estate segment had a 5.7% growth to P2.15 billion while net income rose 12.8% to P1.23 billion.

The company’s special retailing business segment operated by Office Warehouse, Inc. reported a 17.3% increase to its revenues to P2.45 billion with a same-store sales growth of 12.2%. Office Warehouse currently has 89 stores in operation.

On Tuesday, shares in Cosco fell 2.5% or P0.13 to close at P5.06 per share. — Revin Mikhael D. Ochave

How PSEi member stocks performed — June 30, 2020

July 1, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, June 30, 2020.

The cost of owning a mobile phone: A comparison across economies

July 1, 2020 | 12:00 am

Coronavirus cases may top 60,000 by end-July

June 30, 2020 | 9:08 pm

By Vann Marlo M. Villegas and Gillian M. Cortez, Reporters

CORONAVIRUS infections in the country may top 60,000 by the end of July, with about 1,300 deaths, according to experts from the University of the Philippines.

Cases in Manila and nearby cities could hit 30,000 with 860 deaths, while infections in Cebu City in central Philippines, where a spike has been reported, could reach 15,000, academic researchers said in a report on Monday.

The estimate for Cebu City is based on the assumption that a strict lockdown there would continue. Otherwise, cases could surge to as many as 30,000.

The Philippines has a virus reproduction rate of 1.28, showing that there is no downward trend, the UP researchers said, adding that the government should “re-examine and re-calibrate its strategies” after 100 days of quarantine.

“We emphasize that the projected increase in cases and deaths can be prevented by rapidly identifying and breaking the chains of viral transmission,” they said.

“This requires having clear targets to measure whether the strategies are working, such as keeping positivity rates low (below 7%), and active cases trending down,” they added.

The UP researchers released the study as President Rodrigo R. Duterte was set to announce his decision on the lockdown in Metro Manila and the rest of the country last night.

The Department of Health (DoH) reported 1,080 new coronavirus infections on Tuesday, bringing the total to 37,514.

The death toll rose to 1,266 after 11 more patients died, while recoveries rose by 277 to 10,233, it said in a bulletin.

Of the new cases, 858 were reported in the past three days, while 222 were reported late.

It now takes 7.7 days for infections nationwide to double, compared with 7.5 days in Cebu City, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing.

“We seek to slow the doubling of cases so our healthcare system can take care of COVID-19 patients in these places,” she said in Filipino.

“We need a new strategy that is characterized by empowered execution, treatment of citizens as partners, and relying on evidence-based policy and decision-making,” according to the UP paper.

TESTING CAPACITY
“What is urgent is to recognize that doing more of the same will not lead to better results,” it said. “We also do not want to remain the laggard in the region in the fight against the COVID-19. The nation deserves better.”

The UP team urged the Health department to expand the testing capacity to 10,000 daily in Metro Manila and 20,000 a day nationwide.

It also said the government should scale up the healthcare system by boosting testing capacity, buying more personal protective equipment, and building more isolation facilities.

Aggressive contact tracing is also key to the strategy against coronavirus infections to “rapidly identify and break chains of viral transmission and avoid reverting to stricter quarantines that hurt the economy and also strain the psychosocial well-being of citizens.”

DoH should also resolve issues on accuracy and timeliness of data on the coronavirus, according to the UP paper, which cited the backlog of about 5,000 cases and 2,794 uncategorized cases.

“Without accurate and accessible DoH data on COVID-19, our national and local government officials as well as other stakeholders will not be able to make decisions crucial to managing the pandemic,” the researchers said.

Businesses must also step up compliance with health protocols to ensure safety in the workplace as economic activities are revived.

DoH earlier said 653,656 people have been tested, with an infection rate of 7.1%. It said 64 laboratories have been licensed to test virus samples.

The government in May said it planned to test 2% of the country’s more than 100 million people.

Also on Tuesday, Environment Secretary Roy A. Cimatu said Cebu City should remain under a strict lockdown.

Strict quarantine measures had not been enforced in the city, leading to a surge in infections, he told an online news briefing.

“There were not enough policemen and the enhanced community quarantine was not immediately implemented,” said Mr. Cimatu, whom Mr. Duterte had asked to supervise the situation in Cebu.

The government seeks to cut the infection rate to 3% by end-July through expanded testing, Presidential Spokesman Harry L. Roque said at the same briefing.

He said the government was winning the fight against the coronavirus, having dodged a prediction by University of the Philippines experts that cases could hit 40,000 by end-June.

An inter-agency task force made up of Cabinet secretaries on Tuesday endorsed expanding testing as lockdowns are eased and more sectors are allowed to operate.

It said public health standards should be enforced at all times, vulnerable groups should be protected and the public should be informed about the disease. The task force also pushed localized quarantines at the village and municipal levels.

1,500 Filipinos hit by pandemic come home

June 30, 2020 | 9:07 pm

ALMOST 1,500 overseas Filipino workers (OFW) have come home amid a global coronavirus pandemic that has sickened 10.4 million and killed more than 508,000 people worldwide, according to the Department of Foreign Affairs (DFA).

The agency said 262 sailors from Barbados arrived on Tuesday morning at the Clark International Airport in Pampanga province, while 320 from the United Arab Emirates were expected to arrive in the afternoon via a special commercial flight.

The group from Barbados was part of the crew of vessels Harmony of the Seas, Azamara Pursuit and Celebrity Equinox, DFA said in a statement.

Local manning agency Royal Caribbean Cruise Lines coordinated and chartered the repatriation flight, it added.

The returning Filipinos were sent to designated facilities for a mandatory 14-day quarantine.

This followed the arrival of 498 workers from Macau and Kuwait at the Ninoy Aquino International Airport on Monday. DFA said 183 Filipinos including three infants also came home from Phuket, and 223 more from Hong Kong and France.

This brings the number of repatriated Filipinos to more than 60,000 since the program in February, the agency said.

Meanwhile, Foreign Affairs Undersecretary Brigido Dulay said they were working on the repatriation of stranded and distressed workers in Los Angeles and Saudi Arabia.

“Special Philippine Airline flights are coming your way this week to bring you home,” he said in a social media post on Monday evening. The flights will be on July 1 and 4.

Foreign Affairs Undersecretary Sarah Lou Y. Arriola on June 24 said the department would bring home 27,400 overseas workers within three weeks.

The DFA said 8,467 Filipino workers abroad have been infected with the virus, 2,829 of whom were being treated, 5,091 have recovered and 547 died. — Charmaine A. Tadalan

Doctor assignment to Cebu made voluntary

June 30, 2020 | 9:06 pm

THE GOVERNMENT will no longer force state doctors to go to coronavirus hotspot Cebu City, and will instead seek volunteers, the Department of Health (DoH) said on Tuesday.

The original plan was to send 40 doctors in four batches every two weeks, but a number of them declined, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing.

“This would all be voluntary so we won’t have an issue for the meantime,” she said.

Ms. Vergeire said initially, 37 doctors from Western Visayas were to be reassigned temporarily, three of them turned out to be pregnant. Some areas also would have been left without government doctors had they been transferred, cutting the list to 26.

Health authorities were finalizing the number of doctors to be deployed, she added.

Ms. Vergeire on Sunday said Health Secretary Francisco T. Duque III had ordered the transfer of rural doctors to Cebu City because its healthcare system was overwhelmed.

Doctors to the Barrios batches 36 and 37 opposed the order, saying the doctors had not been consulted and informed through writing.

They also criticized the lack of protocols for the deployment, which they said “contradicts the thrust of the Doctor to the Barrios program.” The government started the program in 1993 to address the lack of doctors in the countryside.

Doctors assigned in Western Visayas will stay in Cebu City from June 30 to Sept. 30, while those in Central Visayas were expected to report from June 26 to July 30.

The cities of Cebu and Ormoc, and the provinces of Leyte and Samar were considered COVID-19 hotspots due to a surge in cases.

Ms. Vergeire said they would be sent to private hospitals when they see the need. The doctors transferred to Cebu City will provide support in triage areas and outpatient units.

The agency might also tap medical interns who have graduated but have yet to take licensure exams to help in hospitals.

Licensed doctors will supervise the interns, who will be assigned to triage areas or places that “will not require too much decision-making,” Ms. Vergeire said. — Vann Marlo M. Villegas

Nationwide round-up

June 30, 2020 | 9:01 pm

WHO recommends localized lockdowns, no return to stringent quarantine

THE PHILIPPINE capital does not need to revert to stringent lockdown measures and can just enforce localized quarantine in specific areas to contain the spread of the coronavirus, a World Health Organization (WHO) official said on Tuesday. “We don’t believe that the situation in the Metro requires a reversal,” WHO Country Representative Rabindra Abeyasinghe said in an online briefing. The localized lockdown policy can be applied nationwide at the town or village level when there are spikes in coronavirus disease 2019 (COVID-19) cases. Mr. Abeyasinghe said this strategy will not compromise both public health and the economy of the entire National Capital Region (NCR). The NCR, also referred to as Metro Manila, accounts for about a third of the country’s economic output, registering a 36% contribution to the gross domestic product in 2018. This is the biggest share among 17 regions. Mr. Abeyasinghe also emphasized the need to strictly maintain health safety protocols such as wearing of face mask, physical distancing and personal hygiene. President Rodrigo R. Duterte was expected Tuesday to announce adjustments in the quarantine category for Metro Manila and other parts of the country starting July 1. — Gillian M. Cortez

Senate reviewing amendments to proposed law on COVID measures

THE EXECUTIVE department has submitted its proposed amendments to the proposed law relating to response measures for the coronavirus crisis, and is in discussion with the Senate leadership for a possible special session for its passage, Senate President Vicente C. Sotto III said on Tuesday. “Early this morning, the office of the committee on finance… has just received a proposal of their amendments to the Bayanihan 2 from the executive department,” Mr. Sotto said in an online briefing Tuesday. “The committee will review it. I’m sure Senator (Juan Edgardo M.) Angara will tell us what it’s about.” Mr. Sotto also said he is expecting a call from Executive Secretary Salvador C. Medialdea on Wednesday regarding Malacañang’s decision about the special session. The senator also recommended that before holding a special session, Congress leaders should meet with the executive department to settle amendments as they had done in the first Bayanihan law. “When I was talking with ES Medialdea last night, I suggested to him that if ever they would indeed call a special session… the leadership of the House, Senate and executive department (should) sit down first, and find out what we can agree on,” he said. The Senate on June 3 approved on second reading Senate Bill No. 1564, the Bayanihan to Recover as One Act, which extends certain special power granted to President Rodrigo R. Duterte to address the crisis brought by the coronavirus disease 2019.

SONA
Meanwhile, Mr. Sotto said there are three proposals on how Mr. Duterte’s State of the Nation Address will be set up on July 27. One option is to have Mr. Duterte and only select members of the House and the Senate convene at the House of Representatives building. Another option is for Mr. Duterte to deliver his speech in Malacañang while the legislators are at the House. “And another option, we are here in Senate, HoR in Batasan, and President is in Malacañang,” he said. — Charmaine A. Tadalan

Voter registration remains suspended until end-August

REGISTRATION OF voters for the 2022 national elections has been suspended anew in consideration of the continued coronavirus outbreak, the Commission on Elections (Comelec) announced Tuesday. The suspension will be in effect until Aug. 31 this year. “The suspension was previously set only until June 30 but was extended for two more months in view of the still rising number of COVID-19 cases nationwide,” Comelec Spokesperson James B. Jimenez said in a statement. The commission first suspended the operation of all its offices on March 9 until March 31, then extended to April 30 and again to June 30. “Our field personnel continue to outfit their existing offices and procure supplies in order to be COVID-19 ready,” Mr. Jimenez said, “We are continuously refining our guidelines and health safety protocols so that we do not contribute to the further spread of the virus.” — Charmaine A. Tadalan

Lawmakers order social welfare dep’t to give updated data on PWDs

LAWMAKERS IN the House of Representatives on Tuesday asked the Department of Social Welfare and Development (DSWD) to provide an updated data on persons with disabilities (PWDs) for more relevant legislation. “This is very difficult because when we continue doing our plans and programs and allocating budgets both local and national, we should have a basis for all these programs in place. And benchmarks are always used also to evaluate how far we have done in reaching these marginalized sectors,” Bohol Rep. Edgar M. Chatto said during the virtual hearing of the House committee on PWDs. “If there is no data, then what we are just gathering is the number of persons served but we are not taking cognizance of what percent of the total PWD population has really been served,” he added. DSWD Division Chief Miramel G. Laxa said she will raise the matter to the agency, acknowledging that there is currently no organized data available. Ms. Laxa said the agency, based on 2016 statistics from its National Household Targeting Office, has a record of more than 823,000 households with PWDs, of which 545,882 are non-poor households while 277,132 are poor. She reported that the agency was able to serve 1,187 PWDs affected by the coronavirus pandemic from January to May through its crisis intervention unit. DSWD is still finalizing the number of PWDs who received emergency subsidy under the social amelioration program. — Genshen L. Espedido

Salceda warns of closed POGOs reopening under different ownership

THE GOVERNMENT should “watch out” for shut Philippine Offshore Gaming Operators (POGOs) that may reopen under different ownership to avoid tax dues, a senator said on Tuesday following reports that two POGOs have exited the country. “POGOs will still be liable to the law, as withholding agents of their income tax liabilities. We should watch out for the operators of these POGOs, as closure may be used by some as a tactic to reopen under different declared ownership, with the real owners and operators being able to evade previous tax liabilities,” said Albay Representative Jose Maria Clemente S. Salceda, who chairs the House of Representatives ways and means committee. Mr. Salceda also reiterated the need to pass bills establishing a tax regime for POGOs. House Bill 5777, which seeks to impose a 5% franchise tax on POGOs and a 25% withholding tax on foreign workers, was approved at the committee level in December. Its counterpart measure, Senate Bill 1295, is pending at the committee level. — Genshen L. Espedido

Peso rallies on positive US data

June 30, 2020 | 9:00 pm

THE peso strengthened against the greenback on Tuesday on US data suggesting signs of economic recovery and month-end transactions.

The local unit closed at P49.83 versus the dollar yesterday, appreciating by 2.5 centavos from its P49.855 close on Monday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P49.75 per dollar. Its weakest showing was at P49.84 while its intraday best was at P49.74 against the greenback.

Dollars traded dropped to $642.73 million on Tuesday from the $819.22 million recorded on Monday.

Data on US home sales suggesting the housing market is starting to recover was positive for the peso, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“The record month-on-month rise in the US pending home sales data party supported the latest market gains,” he said in a text message, noting the local unit was at its strongest in nearly four weeks or since its P49.80-per-dollar close on June 5.

Data from the National Association of Realtors on Monday showed the pending home sales index, based on contracts to buy previously owned homes, surged by 44.3% to 99.6 in May which was its largest increase since 2001, Reuters reported.

The peso also gained on the back of “month-end dollar transactions”, a trader said in an email.

However, the trader said the currency might weaken this Wednesday “amid increasing geopolitical tensions abroad”.

China on Tuesday passed the controversial national security legislation for Hong Kong, which critics have slammed for being a threat to freedoms in the special administrative region.

The US Commerce Department on Monday said it was halting its “preferential treatment to Hong Kong over China, including the availability of export licence exceptions”.

For today, Mr. Ricafort gave a forecast range of P49.70 to P49.95 per dollar while the trader expects the peso to move around the P49.75 to P49.95 band. — L.W.T. Noble with Reuters

PSEi closes higher on bargain hunting, Wall St.

June 30, 2020 | 9:00 pm

THE LOCAL MARKET closed in green territory on Tuesday as US indices also rose.

The Philippine Stock Exchange index (PSEi) rose 102.54 points or 1.68% to 6,207.72 while the broader all shares index increased 48.31 points or 1.34% to 3,645.17.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message that local shares closed on a positive note as Wall Street also increased as traders ignored rising coronavirus disease 2019 (COVID-19) cases.

US markets were gainers on Monday. The Dow Jones Industrial Average index went up 2.32%; the S&P 500 index gained 1.47%; and the Nasdaq composite index inched up 1.20%.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said the local market rebounded along with positive performances from US markets while waiting for the government’s announcement of community quarantine guidelines for July.

“The bourse rebounded from (its) 50-day exponential moving average (EMA) after the market fell on that line yesterday that triggers bargain hunting today. This was coupled with the month-end window dressing,” Ms. Alviar said in a mobile phone message.

All sectoral indices closed in positive territory on Tuesday. Financials went up 29.24 points or 2.42% to 1,233.96; holding firms jumped 140.12 points or 2.21% to 6,453.34; services climbed 20.75 points or 1.5% to 1,403.68; mining and oil improved 62.36 points or 1.21% to 5,210.27; industrials rose 88.56 points or 1.16% to 7,702.41; and property advanced 4.86 points or 0.16% to 3,050.45.

Ms. Alviar noted weak investor participation was evident in the value turnover on Tuesday. Value turnover stood at P6.47 billion with 857.27 million issues switching hands, higher than Monday’s value turnover of P5.55 billion.

“The value turnover (on Tuesday) is lower than the month-to-date average of P8.14 billion as investors await the decision of the government on the new community quarantine guidelines for July,” Ms. Alviar said.

“We think that investors are pricing in the gradual reopening of the economy, which we expect a further ease of restrictions, and more businesses will reopen,” Ms. Alviar added.

Advancers outnumbered decliners, 118 to 70, while 54 names closed unchanged.

Net foreign selling was at P833 million, lower than P907.99 million on Monday. For Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan, investors are still cautious over rising COVID-19 cases.

“Foreigners were net sellers for the day amounting to around P833 million, as investors are still playing cautious over the uptrend seen in COVID-19 cases both in the country and in major economies across the globe,” Mr. Pangan said in a mobile text message.

“6,100 remains a key level of support as it coincides with the simple moving average…, while 6,300 may be the nearest resistance area. We may have to observe this week if foreigners continue to be net sellers of the local market,” Mr. Pangan said. — Revin Mikhael D. Ochave

Online payments hit 77% of total tax collections, BIR says

June 30, 2020 | 8:34 pm

AROUND 77% of all taxes collected as of mid-June were coursed through electronic payment (e-payment) channels, the Bureau of Internal Revenue (BIR) reported, after the lockdown coincided with income tax season.

Citing preliminary data from the BIR, the Department of Finance (DoF) said in a statement Tuesday that the taxes for which electronic channels made up the bulk were collected between January and June 15, which overlapped with the lockdown starting mid-March.

The BIR collected P664.74 billion in the five months to May, the latest available period for which data are available, down 27% from a year earlier.

The DoF said the share of electronic payments by value was exhibiting an upward trend in recent years, with e-payments accounting for 84% of total collections in 2019, up frome 80% share in 2015.

The government collected a total of P1.83 trillion from taxes paid online last year, up 59%.

“This marks a major breakthrough for the BIR as the tracking data show that more taxpayers filed electronically or online as compared to those who did so by manual filing in 2019,” Finance Secretary Carlos G. Dominguez III was quoted as saying.

The number of tax filers using electronic channels likewise grew steadily in the past five years. In 2015, those filing tax returns online accounted for 25% of total tax filers that year, rising to 35% in 2016, 46% in 2017, 55% in 2018 and 58% last year.

“That there are more people who filed their taxes electronically than those who filed their tax returns manually even before COVID-19 struck this year proves that the government has started to reap the fruits of the BIR’s nonstop efforts under the Duterte government to make tax compliance more convenient and accessible,” Mr. Dominguez said.

Since 2016, the DoF said the BIR has offered more options for paying taxes, such as PesoNet through Land Bank of the Philippines’ Link.biz Portal; the Development Bank of the Philippines’ PayTax Online System; UnionBank of the Philippines Online; and PayMaya.

These channels come in addition to the electronic Filing and Payment System (eFPS) and GCash.

“The BIR has improved internal processes, raised efficiency levels, and delivered much convenience to our clients — the taxpayers,” Mr. Dominguez said in an online forum last week, adding: “I am confident that more improvements are in store because the Bureau has also demonstrated the ambition and commitment that are key to any successful digitalization reform.” — Beatrice M. Laforga

SEC backs ‘social bonds’ to help fund recovery efforts

June 30, 2020 | 8:33 pm

THE Securities and Exchange Commission (SEC) said it is encouraging bond issuers to tap the social bond market to help support economic recovery efforts.

In a statement Tuesday, the regulator said the proceeds of such bond issues could help contain the socioeconomic impact of the pandemic and build resilience against future shocks.

“COVID-19 has given rise to serious socioeconomic issues globally, pushing enterprises to the brink of failure and leaving millions of people jobless,” SEC Chairman Emilio B. Aquino said in the statement.

“The social bond market could boost our response to and recovery from the pandemic by unlocking the much-needed capital for the promotion of public health, reopening of businesses and preservation of jobs, among others,” he added.

A social bond’s proceeds are directed towards projects directly addressing specific social issues.

Last week, the SEC approved the social bond issue plans of the Bank of the Philippine Islands (BPI), which aims to raise at least P3 billion from what it calls COVID Action Response (CARE) Bonds.

Proceeds from the CARE Bonds will go towards supporting eligible micro, small and medium enterprises.

The SEC said such bonds may help generate funds for loans to small businesses to support employment and prevent job losses.

“While they seek to achieve positive social outcomes for target populations, social bonds may likewise finance projects that address the needs of the general population, given the far-reaching impact of the COVID-19 pandemic and any resulting socioeconomic crisis,” the SEC said, citing the International Capital Market Association.

Financial institutions such as BPI may use proceeds from social bonds to provide loans for small businesses. In other cases, such as for pharmaceutical firms, the bonds could support research and development to find treatments for COVID-19 (coronavirus disease 2019). Manufacturers could receive support in producing safety equipment and hygiene supplies.

“We hope more companies will explore the social bond market to pursue socially-relevant and impactful projects, especially in this time of unprecedented global health and economic crisis,” Mr. Aquino said. — Denise A. Valdez

Cash-strapped start-ups looking to tap large companies for investment

June 30, 2020 | 8:32 pm

START-UPS struggled during the lockdown because of restrictions on movement and declining cash, and are now looking to companies to partner with and provide investment, QBO Innovation Hub President Rene S. Meily said.

Start-ups, he said in an online interview Wednesday, typically cannot go to banks for financing because they lack collateral. Their traditional recourse, he said, is to offer equity or issue convertible notes.

Mr. Meily said technology-based start-ups have advantages that can be attractive to corporations.

“Investors are looking for start-ups to invest in, and I know from personal experience that corporations understand that there’s a new future engulfing us much faster than we expected and they’re looking for companies — start-ups in particular — that they can either purchase or partner with so that they can join this new digital future.”

He said more Filipinos are now relying on technology, with goods delivery and e-learning wide open to new entrants which start-ups can pivot to.

Some industries are still growing despite the pandemic and are looking to partner with start-ups, Mr. Meily said.

“There are many companies cutting costs but there are certain companies that are also doing relatively well, and it’s the companies that have cash. Their industries are still doing fine. For example telecommunications… and I do know that they’re looking in particular at start-ups that they can fund and invest in and grow.”

Anita Tiessen, chief executive officer of Youth Business International, said in an interview that the immediate crisis for most businesses during the pandemic is liquidity.

“I think if you were operating within the sectors that were still considered essential… or organizations that were able to pivot into that space, then they generally found ways of operating. Those that were doing more leisure and hospitality industries, anything that was face-to-face, were struggling the most,” she said.

“But even there we’ve seen some interesting examples of people who have gone online or turned, for example, restaurants to local supermarkets,” she added.

QBO is retaining its target of on-boarding nearly 150 new start-ups in 2020 to en route to an eventual target of 500 start-ups. Mr. Meily said QBO plans to accomplish this through continued online mentoring sessions, government partnerships, and working with Youth Business International on a competition that will fund start-ups that are working to address needs that arose during the pandemic or have something to offer in the field of sustainability.

The competition, which awards P100,000 each to 10 winners, is part of Youth Business International’s Rapid Response Recovery Program, which is funded by Google.org.

“The whole focus is immediate support, helping businesses into recovery but also adapting what that support looks like in each country’s context,” Ms. Tiessen said. — Jenina P. Ibañez

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