ADB cuts growth outlook for 2020 GDP
THE Asian Development Bank’s (ADB) outlook for the Philippines has turned grim, as it now expects the economy to shrink by as much as 3.8% this year. Read the full story.
Economy to shrink by 3.8% — ADB
THE Asian Development Bank’s (ADB) outlook for the Philippines has turned grim, as it now expects the economy to shrink by as much as 3.8% this year.
At the same time, developing Asia is projected to grow at its slowest pace in nearly six decades, as the economic fallout from the coronavirus disease 2019 (COVID-19) pandemic widens.
In its June supplement to the Asian Development Outlook (ADO) 2020, the ADB slashed its gross domestic product (GDP) forecast for the Philippines this year to -3.8% from the 2% growth estimate given in April. This is lower than the 2-3.4% contraction projected by economic managers.
“The forecast for 2020 is revised down to 3.8% contraction because household consumption and investment have slowed more than expected. The contraction in the global economy will continue to drag external trade, tourism and remittances,” the ADB said in the report.
If realized, a 3.8% full-year contraction will be the worst since 1985 when the economy shrank 6.9% according to data from the Philippine Statistics Authority.
The government implemented strict lockdown measures in mid-March to contain the COVID-19 outbreak, which led to a drastic decline in domestic economic activity. As a result, the economy contracted by 0.2% in the first quarter, with an even worse second quarter expected.
The ADB took note of flat household consumption, weak imports and exports, as well as a plunge in investment. Only government spending rose during the first quarter. A broad contraction was also seen across all major sectors — services, industry and agriculture.
For 2021, the ADB kept its 6.5% growth forecast for the Philippines, “supported by public infrastructure spending and anticipated recovery in consumer and business confidence.”
The Philippines’ projected economic contraction is deeper than the Southeast Asian regional average of -2.7%. The economies of Thailand (-6.5%), Singapore (-6%), Cambodia (-5.5%) and Malaysia (-4%) are all expected to shrink this year, along with Timor Leste (-3.7%), Indonesia (-1%) and Laos (-0.5%).
Only Vietnam (4.1%), Myanmar (1.8%) and Brunei (1.4%) are seen to post growth, according to ADB.
Washington-based World Bank earlier trimmed its 2020 forecast for the Philippines to -1.9% from its 3% baseline projection in April.
Other institutions that already downgraded their outlook for the country include International Monetary Fund which now sees the economy shrinking by 3%; Fitch Ratings with a -4% projection; S&P Global Ratings with -0.2% forecast and Moody’s Investors Service with -2.5% projection.
RISKS REMAIN
Developing Asia, composed of 45 countries in the Asia-Pacific region, is now projected to grow by 0.1% this year, the lowest since 1961. ADB in April gave a 2.2% full-year growth projection for the region.
“Economies in Asia and the Pacific will continue to feel the blow of the COVID-19 pandemic this year even as lockdowns are slowly eased and select economic activities restart in a ‘new normal’ scenario,” ADB Chief Economist Yasuyuki Sawada was quoted as saying in a statement.
The ADB expects the region’s growth to rebound to 6.2% in 2021, mainly due to high base effects.
“While we see a higher growth outlook for the region in 2021, this is mainly due to weak numbers this year, and this will not be a V-shaped recovery. Governments should undertake policy measures to reduce the negative impact of COVID-19 and ensure that no further waves of outbreaks occur,” Mr. Sawada said.
Downside risks to its forecasts for Asia persist as the COVID-19 pandemic “may return in multiple waves in the coming period, as happened during the 1918-1919 global influenza pandemic,” ADB said.
“Sovereign and financial crises cannot be ruled out, and social unrest is possible. A further risk is renewed escalation in US-PRC trade tensions,” it added.
Meanwhile, the ADB predicts inflation for developing Asia to ease to 2.9% in 2020 from its earlier 3.2% projection, “reflecting depressed demand and lower oil prices.” Inflation is expected to slow to 2.4% in 2021.
For Southeast Asia, the inflation forecast was revised to 1% this year and to 2.3% in 2021.
ADB kept its inflation projection for the Philippines at 2.2% this year and 2.4% next year.
“In the Philippines, inflation edged lower in April, averaging 2.6% year on year in the first 4 months of 2020. Inflation forecasts for this economy are maintained, however, as lower oil prices offset possibly higher prices for food from feared domestic supply disruption,” ADB said. — B.M.Laforga
PHL to lag behind Asian peers in economic recovery
THE Philippines’ path to economic recovery faces headwinds, as coronavirus disease 2019 (COVID-19) cases continue to rise and policy measures rolled out by the government are still “meager.”
In a report published Wednesday, Oxford Economics measured the recovery paths of 12 economies across Asia Pacific based on the following criteria: health and economic vulnerability, stringency of lockdowns, success in containing the virus, and macro policy support.
The Philippines recorded the second-lowest score after India.
Vietnam, on the other hand, had the brightest recovery prospects in the region.
“At the bottom are India, Philippines, and Indonesia. All three are clearly still struggling to get past the peak of the pandemic, which is a major headwind to their outlooks,” the report read.
As of June 18, the Health department reported the total number of COVID-19 cases in the Philippines stood at 27,799, with 1,116 deaths and 7,090 recoveries.
“At the same time, the fiscal policy response has been quite meager in both India and Philippines, especially compared to the stringency of lockdowns they had imposed — which at one point were not only among the most severe in Asia but also globally,” it added.
The government placed Luzon under an enhanced community quarantine in mid-March, halting almost all economic activity. Lockdown restrictions have started easing around the country in May, with Metro Manila now under a general community quarantine.
According to the Asian Development Bank’s COVID-19 Policy Database, the Philippine government’s pandemic response package is the sixth-largest in Southeast Asia and fifth-smallest relative to population. The Philippine package was $20.078 billion as of June 1, equivalent to 5.46% of gross domestic product (GDP) and $188.26 per capita.
Based on its scorecard, Oxford Economics said Vietnam, South Korea, Taiwan, Japan, China and Hong Kong had high scores which indicate stronger prospects for recovery.
“Vietnam and South Korea have the added advantage of achieving high containment scores without a very stringent lockdown for a prolonged period. This also partly explains why their economies require less fiscal support to contend with the outbreak and its aftermath,” it said.
Singapore, Malaysia and Thailand’s scores placed them in the middle of the pack. Singapore’s recovery is hobbled by the prolonged lockdown and rising cases, despite a massive fiscal response.
‘REBOUND’
Meanwhile, Capital Economics said there are indications all countries in the Asia-Pacific region are now “rebounding” although the pace varies.
“The recovery is most advanced in China, Taiwan and Vietnam. The Philippines, Indonesia and India are doing the worst,” it said, citing high-frequency data based on mobility from Google and Apple, daily tourist arrivals and electricity usage.
With the easing of lockdown measures in the region, Capital Economics said “activity has now bottomed out,” although the pace of recovery appears uneven.
“In Vietnam and Taiwan, which appear to have eliminated the virus, the Recovery Trackers are not far off pre-crisis levels… In contrast, in the Philippines, Indonesia and India, where restrictions on movement and commerce are still in place and case numbers are showing little sign of coming under control, our Recovery Trackers are still at least 40% below normal levels,” it added.
Capital Economics said recovery is expected to be slow, with rising unemployment, impaired balance sheets, and weak global demand.
At the same time, the Institute of International Finance (IIF) on Thursday slashed its economic output forecast for ASEAN-4 region to -3.2%. ASEAN-4 is comprised of the Philippines, Indonesia, Malaysia and Thailand.
“Widespread lockdowns and travel bans will have a substantial impact on the tourism industry as well as domestic demand, while weakening activity in major trading partners will be a drag on exports. Forecast downgrades are largest for Thailand and the Philippines, where Q1 data already show substantial weakness, and Malaysia, where a longer-than-expected lockdown will be challenging for the economy,” IIF said in its latest Macro Notes “ASEAN-4: Worst recession since the Asia crisis.”
The region’s fiscal response is bigger than most emerging markets, IIF said it is uneven with Indonesia’s at 4.6% of GDP to Thailand’s at 11%.
“On the monetary side, we expect central banks to continue to inject liquidity via open market operations and bond purchases, while delivering further policy rate cuts. Overall, we expect the region to fare better than most other EMs (emerging markets), with the contraction most severe in 2020 Q2, and expect a healthy recovery in 2021,” it said.
The Philippine economic team projected GDP to contract by 2-3.4% this year before rebounding to 8-9% in 2021. — Beatrice M. Laforga
Gross revenue index declines in Q1 — PSA
By Lourdes O. Pilar, Researcher
REVENUE across all industries declined in the first quarter, the Philippine Statistics Authority (PSA) reported on Thursday.
Data from the PSA’s Quarterly Economic Indices (QEI) report showed total gross revenue index, which measures sales generated by companies, contracted by 4.9% in the three months to March, a reversal of the growth rates of 3.2% in the previous quarter and 8.3% in the first quarter of 2019.
Based on available data, the first-quarter reading marked the first time the index fell since switching to a 2016 base year from 1978 previously.
Declines were observed in four of the eight sectors in the index, with mining and quarrying falling 22.7% in the first quarter, a turnaround from the 3.7% growth it registered in the first quarter last year.
Other sectors showing slumping revenues were manufacturing (-13.2% from 6.2%); transportation, storage, and communication (-4.6% from 14.1%); and other services (-3.4% from 6.9%).
Meanwhile, these sectors posted growth in the first quarter, albeit at a slower pace compared to last year: electricity, gas, and water supply (1.5% from 4.7%); trade (2.7% from 11%); financial and insurance activities (13.6% from 15.1%); and real estate (3.7% from 9.8%).
Employment slipped by 1.7% in the first quarter compared to the 1.4% growth logged a year earlier.
Sectors posting contractions in employment during the period were: mining and quarrying (-7.3%); manufacturing (-3.7%); other services (-3.4%); construction (-2.8%); financial and insurance activities (-0.2%); and transportation, storage, and communication (-0.04%)
Compensation likewise registered a drop of 1.3% in the first quarter from a 3.5% growth a year earlier, led by financial and insurance activities (-8.5%); mining and quarrying (-8.5%); transportation, storage and communication (-5.8%); trade (-2.8%); manufacturing (-2.6%); and construction (-2.2%).
On a per-employee basis, compensation grew by 0.4% from 2% a year earlier using current prices. At constant 2016 prices, however, it shrank by 2.2%, accelerating from a 1.7% decline last year.
“The fall in gross revenue mirrors the contraction noted in the first quarter of the year, owing in large part to the March 15 lockdown, Taal Volcano eruption and slowing construction activity on uncertainty ahead of a then brewing epidemic in China,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.
“On particular industries, transport was likely hit by travel restrictions introduced in February, culminating in the total lockdown in March with airline travel grounded entirely during the enhanced quarantine. Land transport was also hit as all forms of transport, outside essential services, were halted due to the health crisis. Meanwhile, manufacturing saw weaker performance with the lockdowns implemented,” he added.
In a separate e-mail, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion attributed the declines to “non-pharmaceutical interventions” (NPIs) that were implemented in April to help slow down the spread of COVID-19 (coronavirus disease 2019).
“Manufacturing and transportation bore much of the early brunt of the economic lockdown, as part of the government’s NPIs. Although manufacturing was already set to recover at the beginning of 2020, the COVID-19 pandemic and the subsequent government containment responses initiated work stoppages. This also includes the mining and quarrying sector,” Mr. Asuncion explained.
Both economists expect a worse outcome for the index in the second quarter given earlier data releases during the period.
“[Second-quarter] revenue will also be downbeat, with unemployment surging in April while overall revenue and compensation lower as people lose their source of income,” ING Bank’s Mr. Mapa said.
For UnionBank’s Mr. Asuncion: “The NPIs are still in place in some areas as of today. However, April and May were the biggest hit months due to these virus containment measures. So, I do expect the second quarter to bear the biggest declines in gross revenue.”
To recall, the country’s unemployment rate surged to 17.7% in April from a year earlier, the highest since the government adopted new definitions for the Labor Force Survey in 2005, according to the PSA’s latest round of the survey. This translated to 7.25 million jobless Filipinos, more than three times from 2.27 million a year ago.
Moreover, around three million Filipinos have left the labor force in April, translating to a record-low participation rate of 55.6%.
Remittance drop seen to dent GDP by 0.4%
A POSSIBLE contraction in remittance inflows from overseas Filipino workers (OFWs) due to the pandemic this year could further bring down gross domestic product (GDP) by 0.4%, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Thursday.
Remittance inflows may recover by next year, depending how fast host countries can bounce back from the current crisis, he added.
The BSP projected remittance inflows to drop by 5% this year, a reversal from the 2% growth estimate it gave in May and the baseline 3% outlook given last year.
“Now, the impact of that on the economy… is that it will slow down GDP by 0.4%. But as you know these numbers are subject to review again because we really don’t know the extent of the pandemic and the what’s the outcome in the host countries,” Mr. Diokno told reporters in an online press briefing.
Latest data from the BSP showed cash remittances in March fell by 4.7% to $2.397 billion as the coronavirus outbreak escalated in host countries and global oil prices plunged. This was the first contraction since the -2.9% in June 2019 and the highest decline since the -9.8% recorded in March 2018.
In 2019, cash remittance inflows jumped 4.1% to a record high $30.133 billion despite global uncertainties and the decline in remittances from the Middle East.
Mr. Diokno said the 5% contraction estimate for cash remittances is “based on the assumption that there will be job losses among overseas Filipinos working in tourism and tourism-related services.”
“In addition, travel bans and lockdowns were imposed by host countries and the Philippines has restricted OFW deployment,” he added.
Security Bank Corp. Chief Economist Robert Dan J. Roces said a contraction in remittance inflows could hit household spending.
“This, in turn, will pull down growth as consumption contributes around 70% to GDP,” he said in a text message.
Mr. Diokno said 80% of remittance inflows end up being consumed, citing a BSP survey.
“In some ways, lower remittances also indicate a contraction in overseas deployment and thus may add to the unemployment numbers locally,” Mr. Roces added.
Around 47,000 OFWs have already been repatriated as of June 16, data from the Department of Foreign Affairs showed.
Meanwhile, the BSP is expecting remittances to bounce back with a four percent growth in 2021.
“The first condition [for this assumption] is that health and economic measures adopted by host countries have gained significant traction. The second condition is that the labor market conditions in the host countries have improved,” Mr. Diokno said.
Global trade recovery will also affect how slow or fast remittance inflows could recover, he added. — Luz Wendy T. Noble
Razon-led ICTSI trims spending to $160M
INTERNATIONAL Container Terminal Services, Inc. (ICTSI) has slashed its capital expenditure (capex) budget for this year by 40.7% to about $160 million as the coronavirus pandemic continues to hamper global trade.
“We have cut our capex budget from the original $270 million to approximately $160 million, having already spent $60 million at the time of the pandemic,” ICTSI Chairman and President Enrique K. Razon, Jr. said during the company’s annual stockholders’ meeting on Thursday.
“We have also drastically cut our operating cost budget by 11% across the board with further cuts planned,” he added.
Mr. Razon said the company saw the “severe impact” of the pandemic on the global trade flows starting from China in February and cascading to all by the end of March. “At this juncture, we still do not see the end in sight.”
“But I can tell you that the impact has not been as severe as we ourselves expected, proving once again the tremendous resilience of our business,” he added.
Despite the pandemic, ICTSI is still on the lookout for new opportunities to expand its portfolio, Mr. Razon said.
He said the company remains “very active in seeking out potential acquisitions or new projects whose potential or valuation makes sense in this environment.”
In the first quarter, ICTSI saw its net income attributable to equity holders drop by 18% to $59.6 million due to lower operating income, increase in concession interest, and pandemic-related expenses.
The net income decrease was partially tapered by the 10% decrease in equity in net loss of its joint ventures and an associate to $5.5 million from $6.1 million for the same quarter in 2019.
The global port developer and operator saw its gross revenues from port operations fell by 2% to $375.8 million in the January-March period from $383.8 million in the same quarter last year, dragged down by lockdowns and decline in trade activities, no thanks to the pandemic, as well as lower revenues from storage.
“Given the great uncertainty of many economies and the global economy itself, we have shored up our balance sheet, and we will continue to seize every opportunity to further strengthen our finances going forward,” Mr. Razon said.
On Thursday, shares in ICTSI went down 2.04% to close at P101 apiece. — Arjay L. Balinbin
Netflix survey reveals 87% of Filipinos watched shows with LGBTQIA+ themes, character
STREAMING service Netflix is celebrating Pride Month this June with a selection of inclusive shows that “tell diverse, inclusive, and authentic stories of the LGBTQIA+ community,” and releasing a Philippine survey and video on the importance of inclusivity and representation among its viewers.
(LGBTQIA+ stands for lesbian, gay, bisexual, transsexual, queer, intersex, asexual, with the “plus” sign standing for many other meanings like ally, non-binary, pansexual, etc.)
In a May survey that included responses from more than 900 respondents from Metro Manila, Cebu, and Davao, Netflix said that 87% of the respondents “watched shows that feature LGBTQIA+ characters and themes” and 63% “reflected that watching content with LGBTQIA+ characters or themes represented helps them better understand, empathize, and interact with the LGBTQIA+ community,” according to a press release.
The same respondents noted that films such as Die Beautiful (2016) by Jun Robles Lana and its sequel Born Beautiful (2019) by Percival Intalan, and shows such as Sex Education, Stranger Things, and the documentary A Secret Love (2020) by Chris Bolan, all of which feature LGBTQIA+ themes and characters, resonated with them.
And in celebration of Pride Month, the streaming service compiled a list of LGBTQIA+ series, movies, and documentaries which can be accessed at Netflix.com/Pride.
Pride Month is a month-long celebration and promotion of lesbian, gay, bisexual, and transgender people as a social group, and is held annually in June in remembrance of the June 1969 Stonewall riots in New York City, a protest against social and political discrimination against homosexuals.
VIDEO ON FACEBOOK
Netflix Philippines also produced a video called When I Saw Me on its Facebook page where members of the Filipino LGBTQIA+ community shared their thoughts on representation onscreen.
“I first identified myself as gay, actually when I was very young. It was in fourth grade. I did not know if there was life to being gay aside from the ones I usually see on TV,” photographer BJ Pascual said in the almost six-minute video.
Marga Bermudez, an emcee, and filmmaker Samantha Lee both said in the video that often films and shows show people liking people of the same gender as a joke. “There was always just the gay and the ‘tomboy’ (lesbian) and if you are gay, it was this really effeminate man, and if you’re a tomboy, it was this hyper-masculine, butch lesbian,” Ms. Lee said in the video. “My image of myself and the images I saw on the screen didn’t really align. If I wasn’t those things that I saw on TV, how could I be gay?” she added.
Filmmaker Fifth Solomon shared that he had a friend who didn’t allow their children to watch shows with gay characters because they thought it was “contagious” so he told this friend that he grew up watching shows where most characters were straight people and he didn’t grow up straight.
“When you see a reflection and you don’t see yourself in it, it renders you invisible,” Ms. Lee said of the importance of representation.
The When I Saw Me video also features reflections from content creators Issa Pressman and Kevin Balot about the shows that made them feel seen. In Ms. Balot’s case, the show is Pose which follows the story of African-American and Latinx LGBTQ and has gender non-conforming scenes and features several transgenger characters.
“Ever since Pose was released in the Philippines, it resonated with the trans community because we always thought our lives weren’t normal. So when Pose came out it was like, ‘Ah, that’s me!’… I’m just really proud that they opened doors and platforms for transgender women when it comes to acting,” Ms. Balot said. — Zsarlene B. Chua
Solaire North to open late 2022 or early 2023
RAZON-LED Bloomberry Resorts Corp. has met delays in the construction of the new Solaire in Quezon City because of the lockdown, but has scheduled its opening by late 2022 or early 2023.
In the company’s online stockholders’ meeting Thursday, Bloomberry Chairman Enrique K. Razon, Jr. said quarantine measures due to the coronavirus disease 2019 (COVID-19) pandemic resulted in a two-month delay in the construction of Solaire North.
“We are continuing with the construction of Solaire North in Quezon City which, given the delay due to the lockdown, should be completed by the end of 2022 or early 2023,” he said. “Construction has partially restarted and the period of lockdown can be reasonably added to the completion date.”
Solaire North would be Bloomberry’s second integrated resort in the Philippines located in a 1.5-hectare property within Vertis North. The 40-storey building aims to capture the gaming market in the north and the nearby provinces of Bulacan and Pampanga.
Mr. Razon said opening it in two to three years might coincide well with the country’s full economic recovery from the effects of the pandemic.
Bloomberry’s earnings in the first quarter fell 38% to P1.4 billion due to a decline in global tourism and the suspension of its gaming operations. This reversed the company’s record year in 2019, when it posted a net income growth of 38% to P9.96 billion.
“The record performance of the company in 2019 will no longer reflect our short term future performance. Until the pandemic is over, in one way or another, whether it runs its course or a vaccine is created in mass quantities, when this may happen is simply a wild guess at this point,” Mr. Razon said.
“But even during this crisis, we are still on the lookout for opportunities whose potential and valuation makes sense in this environment,” he added.
Solaire has partially reopened this week and is now testing how it will perform amid the ongoing health crisis. What it did to keep attracting guests is install technologically advanced disinfecting equipment and train employees for new safety standards.
“Given the great uncertainty, we will exercise prudence and restraint in managing our balance sheet and finances, and when this crisis has been overcome, we look forward to being an even stronger company,” Mr. Razon said.
Shares in Bloomberry at the stock exchange went down 20 centavos or 2.67% to P7.30 each on Thursday. — Denise A. Valdez
Parokya ni Edgar to take requests during online concert
FILIPINO band Parokya ni Edgar will be holding an online concert on June 19, via Tanduay Rhum’s official Facebook page, at 8 p.m.
Called Isang Tinig with Parokya ni Edgar, the concert will see the 27-year-old band perform their biggest hits and take audience requests.
“At Tanduay, we encourage everyone to have tibay ng loob (resolve) and this event is the embodiment of that. We are staging this concert to help uplift the Filipino spirit during these challenging times and, at the same time, promote online socializing and entertainment so that we can continue to observe social distancing,” Paul Lim, Tanduay senior vice-president for sales and marketing, said in a press release.
Parokya ni Edgar was formed in 1993 and is known for its rock novelty songs and often satirical covers of popular local and foreign songs. They have so far released nine studio albums, with Pogi Years Old from 2016 being its most recent release.
The band is composed of Chito Miranda (lead vocals), Buwi Meneses (bass guitar),
Darius Semaña (lead guitar), Gab Chee Kee (rhythm guitar, vocals), and Dindin Moreno (drums).
Some of their most popular songs include “Buloy” (1996) and Awit Award winning-singles “Don’t Touch My Birdie” (1999) and “This Guy’s In Love With You Pare” (2003) — both songs won in the Best Novelty Recording category. “Mister Suave” (2004) won Record of the Year at the Awit Awards.
The band had previously teamed up with Tanduay for the 2011 Tanduay Rhum Rockfest and Tanduay First Five concert tour.
“Tanduay is a staunch supporter of [Original Pilipino Music] and usually chooses its artists not only because of our history with them but also on how well they connect with their audience. It’s important for us to make our audience smile in these trying times,” Mr. Lim said.
A few quizzes will be held during the Tanduay concert to give the audience a chance to win “special prizes,” and there will also be a tambayan (hang out) segment where the band will share what they have been up to during the quarantine.
The Isang Tinig with Parokya ni Edgar concert will be held on June 16, Friday, 8 p.m., at the Tanduay Rhum Official Facebook page. — Zsarlene B. Chua
D&L Industries projects ‘reasonable recovery’ by yearend
D&L Industries, Inc. is expected to bounce back by the second half of the year due to the gradual resumption of most industries and pent-up demand from consumers.
In a statement Thursday, the listed manufacturer of plastics, food ingredients and specialty chemicals said it was already noticing recovery since last month when the lockdown in Metro Manila was slowly lifted.
“In May, we saw a pick up in activity due to pent-up demand and as some restrictions were eased by the middle of the month. We expect further recovery in June as more and more of our customers are ramping up operations under [a relaxed lockdown],” D&L President and Chief Executive Officer Alvin D. Lao said.
“We are optimistic that improvements might be seen in the third quarter, but may still be below pre-COVID levels. A reasonable recovery might be more probable in the fourth quarter as Christmas period in the Philippines sets in as early as September,” he added.
D&L posted a 31% drop in net income in the first quarter at P515 million. The decline was attributed to lower demand for its high margin specialty products as affected by local lockdowns. Revenues slipped 3% to P5.67 billion, which came from a shift in sales mix to commodities.
Despite this, D&L said its export business remained resilient due to sustained demand for its coconut-based products. “The interest in coconut oil continues to gain traction in the global market due to its perceived natural antiviral and antibacterial properties,” it said.
“The company sees continued strong coconut oil exports, which should offset some of the weakness in the domestic market in the near term. [D&L] plans to capitalize on this trend as it develops more products and penetrates more markets globally,” it added.
Heading towards the end of the year, D&L said fourth quarter revenues may be boosted by Christmas celebrations, noting the social culture of Filipinos may make it easier for consumer demand to recover.
“We love gatherings and meeting up with friends and family. I can sense that there’s still a lot of pent-up demand right now. So this could be positive once restrictions are eased further,” Mr. Lao said. “This should help the country recover faster than most countries.”
He noted, however, that what might alter this growth path is a second wave of COVID-19 cases, which may bring back strict quarantine measures.
The Philippines has a total of 27,238 COVID-19 cases as of Wednesday, of which 19,310 are active, 6,820 are recovered and 1,108 are dead.
Shares in D&L at the stock exchange slipped 25 centavos or 4.67% to P5.10 each on Thursday. — Denise A. Valdez
Actor Danny Masterson charged with 3 rapes
LOS ANGELES — That ‘70s Show actor Danny Masterson has been charged with raping three women in separate incidents in 2001 and 2003, the Los Angeles District Attorney’s office said on Wednesday. In a statement it said that it had declined to file sexual assault charges against Masterson in two other cases because of insufficient evidence and because of the statute of limitations. Masterson, 44, got his break-out role in the 1998-2006 TV comedy series That ‘70s Show, in which he played a rebel adolescent. He could not immediately be reached for comment on the charges. In a statement issued to Variety, Tom Mesereau, Masterson’s attorney, vowed to fight the charges. The three rape charges together carry a maximum prison sentence of 45 years to life in prison if Masterson is convicted, the District Attorney’s office said. — Reuters
Mega Global allots P500M for expansion, acquisition plans
MEGA Global Corp. has set aside around P500 million for its expansion and acquisition plans for 2020 and 2021, officials of the canned goods manufacturer said on Thursday.
“We are allocating at least P500 million for expansion for the whole year this year and next year,” Mega Global Chief Operating Officer Michelle Tiu Lim Chan said in a virtual briefing.
She said the budget also covers funds for the company’s target to increase operating capacity by 20%.
“Because the company is vertically integrated, when the demand increases, we have to increase all of the steps — from fishing, to canning, and to demand,” she said.
Mega Global Founder and Chief Executive Officer William Tiu Lim said the company is on the lookout for broadening its horizons through acquisitions or mergers such as taking in fast-moving consumer goods brands.
“We have a complete network from the north all the way to the south of the country. We really need to have that network so that we can maximize distribution,” he said.
Mr. Tiu Lim said the coronavirus disease 2019 (COVID-19) pandemic has taught valuable lessons to Mega Global, especially on issues relating to logistics and business operations.
“Our plans, especially our marketing programs, are no longer applicable. We have to be able to act fast and apply changes that we need to adapt to the situation, help the community, and address consumers’ needs. Our plans moving forward from this pandemic should be future-ready and flexible,” he said.
In celebration of its 45th anniversary and to show its gratitude to frontliners, Mega Global offered assistance through its Mega Malasakit Kitchen program, wherein the company distributed cooked meals to those who offered services that benefited the community during the lockdown.
The company said it had distributed more than 40,000 meals to frontliners such as checkpoint officers, barangay health workers, volunteers, supermarket staff, bank staff, security guards, and street dwellers.
Meanwhile, Mega Global Chief Growth and Development Officer Marvin Tiu Lim said the company is open to partner with entities offering products that fit the same target market.
“We are open to accept, acquire, or partner with any products that can fit our target market we currently distribute now such as supermarkets and public markets,” he said.
He said part of the company’s allocated P500-million expansion budget will be used for the construction of a new manufacturing plant in Luzon.
“The new manufacturing facility lets the company cater to its target market in Luzon and also gives us access to raw materials. Hopefully, it lets us expand into other categories,” he said.
Asked if the company is planning to go public, he said the option is not off the table, but said the move might take Mega Global around two to five years to be ready.
“This process takes time. We want to go for an initial public offering conservatively. We want to build on our reputation and our name and hopefully, carve out a part of our company of which we can share and grow with the public,” he said. — Revin Mikhael D. Ochave