Perfecto R. Yasay, Jr., the former corporate regulator who helped oust President Joseph Estrada in 2001, has died. He was 73.
Mr. Yasay, who was battling cancer, died of pneumonia, the United Church of Christ in the Philippines said in a Facebook post, citing Mr. Yasay’s wife Cecile Joaquin. His death was not coronavirus-related, it said.
Mr. Yasay was chairman of the Securities and Exchange Commission when he testified against Mr. Estrada in his impeachment trial for corruption. The trial was aborted after the former leader was ousted in a popular street uprising known as the EDSA People Power II.
Nine years later, Mr. Yasay apologized to Mr. Estrada for “hurting and offending him” but said he was not retracting his testimony.
Mr. Yasay ran for vice president in 2010 and lost.
The former corporate regulator in 2016 led President Rodrigo R. Duterte’s pivot to China away from the US as Foreign Affairs secretary. But lawmakers rejected his appointment a year later due to issues about his citizenship.
Mr. Yasay was married to Cecile Joaquin and they had three children. — Norman P. Aquino and Charmaine A. Tadalan
Remittance inflows declined in March, as the coronavirus outbreak accelerated and tensions among global oil producers escalated.
Cash remittances of overseas Filipino workers (OFWs) that were coursed through banks dropped by 4.7% to $2.397 billion in March from the $2.514 billion a year ago, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The 4.7% decrease in cash remittances is the first contraction since the -2.9% in June 2019 and the highest drop since the -9.8% in March 2018, when inflation skyrocketed and the peso reached the P52 level versus the dollar.
“The countries that registered the declines in cash remittances in March were mostly from oil producing countries (Saudi Arabia, United Arab Emirates and Kuwait) where demand for workers was affected by depressed oil prices in the world market,” the BSP said Thursday night.
For the first quarter of 2020, inflows grew by 1.4% to $7.403 billion from the $7.299 billion in the comparable year-ago period.
The central bank on Thursday released its latest projection which estimates cash remittances to decline by 5% this year, a reversal from the 2% growth forecast in May and the baseline 3% estimate back in November. The World Bank estimates a 20% drop in global remittances as the pandemic continues.
Personal remittances slumped 5.2% to $2.652 billion in February from the $2.557 billion during the same month in 2019. This is the first decline in personal remittances since June 2019 and the 9.9% contraction in March 2018.
According to the BSP, personal remittances from land-based workers with work contracts of one year or more slipped by 6.7% to $2.014 billion in March coming from the $2.157 billion recorded last year. On the other hand, remittances from sea-based workers and land-based workers with work contracts of less than one year rose by 2.7% to $591 million from $575 million in March 2019.
Year-to-date, personal remittances rose by 1.5% to $8.218 billion in March from the $8.098 billion last year.
Economists said the virus took its toll on remittances in March, adding to tensions in the oil market.
“The decline in March remittance inflows can be attributed to the oil price collapse due to the disagreement between Russia and Saudi Arabia. Biggest hit by this oil price shock are Filipino workers from the Middle East that comprise more than 50% of total overseas workers,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.
In March, Saudi Arabia slashed oil prices by nearly 10% in retaliation against Russia for not joining the large production cuts made by the Organization of the Petroleum Exporting Countries in response to waning demand.
Mr. Asuncion said the sea-based luxury travel industry as well as the land-based hotel and accommodation sector were already feeling the pain in March, as the coronavirus outbreak spread rapidly around the world.
“You have countries like Hong Kong, Macau, and the Middle East as major sources of these inflows from this said sector,” he said.
The drop in remittances will likely bottom out in the next few months as countries imposed restrictions to combat the spread of the virus.
“In view of the recent repatriation of some OFWs, as displaced by COVID-19 pandemic, OFW remittances could still continue to decline by single-digit levels in the coming months of 2020, with the bigger declines that could be seen at the height of the lockdowns from April-May,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.
Despite this, Mr. Ricafort noted OFWs who managed to save money still have the ability to continue to send to their families at this difficult time.
“Another offsetting factor is the fact that some OFWs in many host countries belong to essential industries especially medical professionals who would still continue to work and send remittances during the lockdown periods,” Mr. Ricafort added.
More than 36,000 OFWs have been repatriated since the outbreak as of June 8, according to data from the Department of Foreign Affairs.
The coming months will likely remain bleak for remittance inflows as uncertainties over COVID-19 continue, according to John Paolo R. Rivera, an economist at the Asian Institute of Management.
“Unless all economies have been bootstrapped and the pandemic has been contained, then we cannot expect a significant improvement in remittance inflow,” Mr. Rivera said in an e-mail.
“That is why there is a need for a global collective effort to contain the pandemic if economies will continue to rely on the phenomenon of temporary labor migration (we rely on remittances, they rely on the services of our manpower),” he added.
Cash remittances is a vital part of the economy as it boosts consumption which forms part of about 70% of the country’s gross domestic product.
Manila Electric Company (MERALCO) announced today another downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0216 per kWh, from last month’s P8.7468 per kWh to P8.7252 per kWh this June. This is equivalent to a reduction of around P4 in the total bill of residential customers consuming 200 kWh.
With three straight months of generation rate reduction, and a total rate decrease of more than one peso per kWh since the start of the year, this month’s total rate is also significantly lower than that of June 2019, which was P10.0918 per kWh. This month’s total rate is also the lowest since February 2018.
Lower Generation Charge as MERALCO Claims Force Majeure
From P4.3848 per kWh last May, the generation charge decreased by P0.0435 per kWh to P4.3413 per kWh this June.
Because of the very significant reduction in power demand in its service area during the Enhanced Community Quarantine (ECQ) and Modified ECQ period, MERALCO invoked the Force Majeure provision in its Power Supply Agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers. This June, the Force Majeure claim totaled P614 million, equivalent to customer savings of P0.2208 per kWh, representing reduction in fixed costs from its baseload supply contracts and avoided charges from the temporary suspension of the mid-merit supply contracts recently approved by the Energy Regulatory Commission (ERC). Without the FM claims, generation charge and the total rate would have increased by 18-centavos and 24-centavos, respectively, from last month’s rate. For the past 3 months, the savings due to Force Majeure claims totaled around P1.6 billion.
PSA charges decreased by P0.0613 per kWh mainly due to MERALCO’s Force Majeure claim. Cost of power from Independent Power Producers (IPPs) also decreased by P0.2334 per kWh due to higher average plant dispatch. PSAs and IPPs accounted for 50.4% and 47.1% of MERALCO’s total supply, respectively.
Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) increased by P0.3132 per kWh due to tighter supply conditions in the Luzon grid mainly due to higher incidents of plant outages and slight increase in demand. The share of WESM to MERALCO’s supply needs was only at 2.5%.
Movements in Other Charges
Other pass-through charges registered an increase of P0.0219 per kWh. This was mainly due to the resumption of the P0.0495 per kWh Feed-In-Tariff Allowance (FIT-All). The ERC suspended the collection of FIT-All for April and May billing months in consideration of the ECQ. Meanwhile, ERC suspended the collection of Universal Charge-Environmental Charge amounting to P0.0025 per kWh beginning this June, until further notice.
MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 59 months, after these registered reductions in July 2015. MERALCO reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.
MERALCO keeps its doors open for customers during General Community Quarantine (GCQ)
Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the ongoing GCQ, and accept service applications, payments, and other transactions.
Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check. Frontliners are available and ready, but strictly follow Social Distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.
But, for maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.
For more information and concerns, customers may visit MERALCO’s website at www.MERALCO.com.ph, its social media accounts, twitter @MERALCO and facebook at www.facebook.com/MERALCO or may also call the MERALCO Hotline at 16211.
Foreign direct investment inflows dropped in February, as the coronavirus began spreading around the world. — REUTERS
By Luz Wendy T. Noble,Reporter
FOREIGN DIRECT investment (FDI) inflows slumped by a third in February, as the uncertainty over the then-emerging coronavirus outbreak started spooking investors.
Data from the Bangko Sentral ng Pilipinas (BSP) showed FDI inflows declined by 31.5% to $505 million from a year ago. It also dropped by 23.13% from January.
Year to date, inflows slipped by 12.2% to $1.162 billion from a year earlier.
The inflows were the lowest since the $430 million recorded in August.
“FDI declined as uncertainties on the impact of the COVID-19 (coronavirus disease 2019) outbreak dampened investor sentiment,” the BSP said in a statement on Friday.
The Philippines had only three confirmed cases of coronavirus in February, all Chinese nationals.
BSP data showed net investments in debt instruments, which include intercompany borrowings, dropped by 26.4% to $317 million from a year earlier.
Reinvested earnings also decreased by 26.4% year on year to $59 million.
Equity other than reinvestment of earnings plunged by 43% to $129 million from a year ago. This, as placements fell by 45.2% to $145 million and withdrawals slid by 58% to $16 million.
The central bank identified Singapore, Japan and the United States as top sources for equity capital placements during the month. These flows went mainly into manufacturing, real estate, and wholesale and retail industries.
Inflows funneled into equity and investment fund shares likewise declined by 31.5% to $188 million from a year earlier.
Although there were no cases of local transmission of COVID-19 in the country at that time, investors were already concerned about the rising number of cases in other countries.
“Travel restrictions were already being implemented by many countries then. The hospitality sector was already badly affected,” Alvin P. Ang, an economist from Ateneo de Manila University, said in a text message.
Investor sentiment may have also been hurt by the Senate investigation of Philippine offshore gaming operators during the month, he added.
In the first two months of 2020, net investments in debt instruments plummeted by 44.1% to $550 million from a year ago. Reinvested earnings slipped by 16% to $131 million.
On the other hand, equity other than reinvestment of earnings for the two months surged by 162% to $481 from the same period last year.
Meanwhile, equity and investment fund shares fell by 12.2% to $1.162 billion from a year ago.
The central bank in November projected FDI inflows worth $8.8 billion this year, from $7.647 billion last year.
Ateneo’s Mr. Ang said inflows in the coming months will likely go further down as the economic impact of the pandemic widens.
“The February data is already superseded by falling trade and the lockdown in March,” he said.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said May and June may see a slight recovery as the economy gradually reopens.
In an e-mail, Mr. Asuncion said FDI inflows will likely follow developments related to the vaccine, while consumers will seek transparency from the government regarding efforts against the virus.
“The emergence of new low-touch and/or contactless types of businesses may offer some hope for investors, even as existing global firms struggle to survive in the new way of doing things post-pandemic,” he said.
Meanwhile, Fitch Solutions said investor sentiment on the Philippine market was already affected by other factors before the health crisis.
“Indeed, the outbreak will aggravate the already notable structural barriers that deter investment into the Philippines, namely logistics and an uncertain policy backdrop, weakening the longer-term outlook for both growth and the country’s exporting capabilities,” it said in a note sent to reporters.
Fitch Solutions cited the lack of infrastructure and connectivity in global supply chains that has hampered the Philippines’ ability to attract investments.
“There has been a failure to move forward with the second package of tax reforms, which plans to lower the country’s corporate income tax rate from a regionally high level of 30%, to 20% by 2029 in line with Taiwan and Vietnam. Without reforms and an ability to address the barriers to FDI, the Philippines economy may grow at a slower pace long term,” Fitch Solutions said.
Congress has not yet passed the proposed Corporate Recovery and Tax Incentives for Enterprises Act, which will immediately reduce corporate income tax to 25%.
JAPAN CREDIT Rating Agency said the impact of the coronavirus pandemic on the Philippine economy will likely be temporary. — REUTERS
JAPAN CREDIT Rating Agency (JCR) on Thursday upgraded the Philippines’ credit rating to “A-” from BBB+, saying it expects the economic impact of the coronavirus pandemic to be temporary.
At the same time, JCR assigned a “stable” outlook on the rating, suggesting this will likely be maintained in the near term.
“JCR holds that a downturn will be limited given the country’s strengthened economic base, resilient external position, and the government’s economic stimulus package totaling more than 9% of gross domestic product,” said the government’s Investor Relations Office (IRO) in a statement on Thursday, citing the JCR report.
“JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,” it added.
The debt watcher cited the stability of the country’s banking industry, which has a capital adequacy ratio “at a comfortable 15%.”
It said the country’s external debt balance was manageable at 22.2% of the gross domestic product (GDP) as of end-2019 and also cited its ample dollar reserves.
“JCR holds that the country will show its high resilience even when global risk-off moves would be triggered again by a second wave of COVID-19 pandemic,” JCR said, noting it expects the country to grow at a pace of 6-7% within the medium term after a likely contraction in 2020.
JCR cited the country’s “massive relief measures” and its tax reform program.
The country’s upgrade to an “A” status is among the three upgrades out of the 14 rating actions from JCR that were mostly either downgrades, negative outlook revision, or rating affirmations.
Other “A-” rated countries with JCR include Thailand, Mexico, Hungary and Peru. Indonesia and India have “BBB+” ratings while Malaysia, Italy, Poland and Portugal are rated “A”.
“The credit rating upgrade from JCR bodes well for the Philippine government’s fund-raising activities, which in recent years have included regular issuance of Samurai bonds,” the IRO said, noting that many Japanese institutional investors go for countries with an “A-” rating or higher from JCR.
“The agency’s decision reflects its confidence that the Philippines is pursuing appropriate policies that will help Filipino individuals, businesses, and the economy at large to recover from this unprecedented crisis,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in the statement.
Fitch Ratings recently affirmed its “BBB” rating for the Philippines, but lowered the rating outlook to “stable” from “positive,” which means the rating is likely to stay for the next six months to two years.
S&P Global Ratings has likewise maintained its “BBB+” rating with a “stable” outlook for the country, citing expectations of a strong economic rebound after the coronavirus crisis. — Luz Wendy T. Noble
RESTAURANTS may soon be allowed to resume limited dine-in operations in Metro Manila and other areas under a general community quarantine.
Trade Secretary Ramon M. Lopez said in a radio interview on Thursday the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) had given the go signal for restaurants to resume dine-in operations at up to 30% capacity starting June 15.
“Malaking portion ng operation ng mga restaurant ang dine-in. Mga 70-80% po ’yan kaya mahalaga po, diyan po nakasalalay ’yung trabaho ng maraming kababayan natin (Dine-in is a large part of restaurant operations. It’s about 70-80%. That’s why it’s important. The work of many depend on that,” he said.
The IATF recommendations will be presented to President Rodrigo R. Duterte for final approval.
Metro Manila, Central Luzon, Cagayan Valley, Calabarzon, Central Visayas, Pangasinan, Mandaue City, Zamboanga City, Davao City, and Cebu City are now under a general lockdown, while all other areas are under a modified general community quarantine.
Restaurants can have dine-in operations up to 50% of capacity for areas that have shifted to the modified lockdown.
Salons and barbershops may also operate at 30% capacity for areas under a general lockdown, and must limit services to haircuts.
The Department of Trade and Industry has released guidelines on ensuring health safety for dine-in operations, banning buffets and self-service stations and prescribing sanitation measures.
Restaurants must also add floor markings and table dividers for social distancing, and must implement a “no mask, no entry” policy. Kitchen-based employees must be placed in groups according to their tasks.
Restaurants must also provide contactless transaction methods and small trays for accepting cash.
Mr. Lopez said the government, including the Trade, Tourism and Labor departments and local governments will randomly inspect restaurants for compliance.
“Hindi na naman ni-require mag-accreditation kasi baka tumagal pa at magkaroon pa ng (We don’t require accreditation because that might take time and it might create) bureaucratic red tape,” he said.
He added that restaurants not complying with the guidelines may be warned or closed down. — Jenina P. Ibañez
ALL ONLINE businesses are given until July 31 to register for tax compliance with the Bureau of Internal Revenue (BIR), as the government seeks to plug tax leakages and raise revenues.
BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular (RMC) No. 60-2020 on June 1, ordering online businesses to register or update their registration until July 31. A copy of the circular was uploaded on the BIR website on Wednesday evening.
“This circular is issued to give due notice to all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant,” the BIR said.
The order applies to partner-sellers or merchants as well as to “other stakeholders involved such as gateways, delivery channels, internet service providers and other facilitators.”
BIR Deputy Commissioner for Operations Arnel SD. Guballa told BusinessWorld the circular was issued after Finance Secretary Carlos G. Dominguez III ordered the BIR to start collecting taxes from the digital economy.
The e-commerce sector has been growing as strict lockdown measures forced people to stay at home and businesses to close brick-and-mortar shops.
“As mandated by secretary of Finance, BIR would collect taxes from the digital economy which other Asian countries are now doing. Since online selling is the new normal, BIR now is requiring all online sellers to register,” Mr. Guballa said in a text message on Thursday.
He emphasized all businesses, including small sellers of products on social media sites are covered by the circular, as long as they conduct transactions online.
In May, Mr. Dominguez said the Department of Finance (DoF) and BIR were studying measures on how to capture the potential value-added tax (VAT) leakages in the digital economy.
If the 12% VAT can be charged on online transactions, DoF estimated the government can collect P14-17 billion in additional revenues.
The government is looking for new sources of revenues after tax collections plunged in April due to the lockdown.
BIR’s April tax collections plummeted by 70% from a year ago to P71.78 billion after tax payments were deferred.
Under the new circular, the BIR also urged businesses to voluntarily declare their past transactions that are subject to pertinent taxes and pay the taxes due, without incurring penalties.
“All those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/unpaid taxes shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations,” BIR said.
Newly registered businesses and existing applicants will also have to issue a registered sales invoice or official receipt for every sale of goods or services and keep a registered book of accounts and accounting records of transactions.
Online businesses are also ordered to withhold taxes, if applicable, as well as file required tax returns and pay “correct taxes due on time.”
Registrations are usually done at Revenue District Offices, BIR said.
Those conducting online businesses that do not have a taxpayer identification number (TIN) will have to register their businesses following existing guidelines on securing TIN and registration.
For those with TINs but whose businesses are not yet registered, BIR said individuals will have to register their businesses using BIR Form 1901. For non-individuals, they will have to update their business registration using BIR Form 1905 and include the additional business activity of online selling.
House Bill No. 6765 or the Digital Economy Taxation Act, which seeks to impose a 12% VAT on advertising, subscriptions and transactions made via e-commerce platforms, has been filed at the House of Representatives.
PLDT Inc. (PLDT) said on Thursday it had joined a consortium to build a 9,400-kilometer “high-performance” submarine cable connecting six major countries in East and Southeast Asia.
In a statement e-mailed to reporters, PLDT said it is part of the global consortium, Asia Direct Cable, that is “building a high-performance submarine cable connecting the Philippines, China (Hong Kong SAR and Guangdong Province), Japan, Singapore, Thailand, and Vietnam.”
The Pangilinan-led company said it joined the consortium in 2018. CAT, China Telecom, China Unicom, Singtel, SoftBank Corp., Tata Communications, and Viettel are also members of the Asia Direct Cable consortium.
The group has chosen NEC Corp., a Japanese multinational information technology and electronics company, to construct the submarine cable system which will be designed to carry more than 140 terabits per second (Tbps) of traffic.
The consortium expects its project to be completed by the last quarter of 2022, PLDT said.
PLDT also said it expects the project to strengthen the “resiliency” of its international network “by providing additional capacity for internet and digital services.”
“Its high capacity allows it to support increasingly bandwidth-intensive applications which are driven by technological advancements such as 5G, cloud services, the Internet-of-Things and Artificial Intelligence. It will also enhance the capabilities of PLDT’s extensive fiber cable network which already spans over 338,000 kilometers across the archipelago and links the country to key destinations in different parts of the world,” PLDT explained.
PLDT Chief Revenue Officer and Smart President Alfredo S. Panlilio was quoted as saying: “This will help PLDT to address the expanding demand for more digital services for both enterprises and our individual customers.”
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. — Arjay L. Balinbin
SEVERAL months have been spent inside our homes as lockdown measures try to slow down the spread of the pandemic which has sickened tens of thousands in the Philippines and millions around the world. Since Filipinos could not go outside, they turned to watching a lot of Korean dramas and local movies to entertain themselves, according to a study done by an e-commerce aggregator.
iPrice Group, a Southeast Asian e-commerce aggregator based in Malaysia, published a study this month on the viewing behavior of Filipinos before and during the lockdown by collating web searches using Google Trends and “recorded streaming sites’ notable increase in web visits” via SimilarWeb from January to May, according to a release.
The study showed that Filipinos really love K-dramas, specifically Itaewon Class, a series about an ex-convict and his friends trying to make their dreams for their street bar a reality. The show saw a 9,900% increase in searches during the lockdown (mid-March to May) compared to the two months before the lockdown.
Also getting a boost in searches were 2015’s Reply 1988 which was up by 456% and Crash Landing on You which experienced a 105% increase in searches during lockdown, though it should be noted that the 2020 series about a woman getting stranded and rescued by a North Korean soldier, ended its run in February when searches about the show were at their peak — but iPrice noted that during lockdown, people revisited the show which led to the increased searches from March to May.
Local movies also saw a boost. The historical epic Heneral Luna (2015) by Jerrold Tarog saw an 809% increase in searches during lockdown, while it’s sequel, Goyo: Ang Batang Heneral (2018), saw an increase of 300%. Cult-favorite family film Four Sisters and A Wedding (2013) by Cathy Garcia-Molina saw a 376% increase.
Old American sitcoms were also on the radar of Filipinos staying inside as Modern Family saw an increase of 426%, while Community’s search interests’ increased by 400%, and How I Met Your Mother’s by 355%. Modern Family ended its run in April after 11 years on air, which could have contributed to the increased interest.
But the most popular show for Filipinos during lockdown was Netflix’s Money Heist, the Spanish TV show about a group of people robbing the Royal Mint in the first season, and then the Royal Bank of Spain in the second season. It had just released the second part of its second season during the lockdown, which iPrice said is the likely reason for the interest.
Money Heist has consistently remained in the top and upper rankings of the most-watched shows in the Philippines even before the lockdown, according to Netflix.
Streaming services like Netflix, iflix, HBO Go, and Apple TV, each experienced a jump in web visits during the lockdown. Even niche streaming services saw a jump with Mubi (which curates 30 movies from around the world at a time) seeing a 97% increase in web visits from February to April, while Korean-content streaming service Viu saw a 59% increase, and anime streaming site Crunchyroll saw a 35% increase. — Zsarlene B. Chua
PHOENIX Petroleum Philippines, Inc. (Phoenix) said it is pursuing cost and productivity measures, including the integration of all its property assets under one unit and the ongoing rationalization of its supply chain.
Upon its regular strategic review, the listed independent fuel retailer told the stock exchange on Thursday that it seeks to create leaner supply chain and logistics, improve productivity, and lower expense base.
The company will integrate all of its assets under its property holding subsidiary, Duta, Inc., which will take over the company’s inventory of owned and leased assets, manage real estate leases, and handle future purchase of properties.
It will also identify and implement real estate synergies with other Phoenix businesses, and will co-develop with other real estate developers.
“Under Duta, Inc., we are repositioning real estate as an integrated, dynamic portfolio that aligns real estate resources with competitive strategies and maximizes yield,” Phoenix Chief Finance Officer Concepcion F. de Claro said.
“Duta will have greater financial accountability as it will have its own organization, budget, and Board-approved KPIs (key performance indicator),” the official added.
The company’s stockholders recently approved Phoenix’s investment of up to P4.9 billion into the holding unit over the next three years.
Phoenix also seeks to minimize risks and capital expenditure burden through the formation of a separate road transport company, which will partner with operators.
Phoenix President Henry Albery R. Fadullon noted the low availability of trucks and high attrition among drivers, which affects its efficiency and ability to deliver.
“Adding to the overall complexity is the increased exposure to health, security, safety, and environmental (HSSE) risks and capex (capital expenditure) for the fleet expansion,” he added.
The newly installed president said the company already did test runs of outsourcing delivery operations, seeing an improvement in truck utilization to 1.5 times of trips each day from just 0.75 times.
Moreover, Phoenix continues to rationalize the supply chains of its lubricant and FamilyMart businesses, eyeing to save over P300 million over the upcoming years.
Last year, the company started to shift to third-party service providers from an in-house distribution for both segments.
FamilyMart is said to save P4 million monthly from simplified operations, while its lubricant business is estimated to save P40 million in operating expenses and P230 million in working capital.
“Our domestic opex (operating expenses) were down 12% year-on-year in the )first quarter), which worked especially well for us during these times. We are already realizing gains from these initiatives. We will continuously challenge our cost structure and find ways to be more efficient and drive operational excellence,” Ms. de Claro said. — Adam J. Ang
IN his newest Netflix special, comedian Joseph Glenn Herbert, better known as “Jo Koy,” continues to marvel at his Filipino roots while touring his Filipino-American friends around a city he used to live in.
Jo Koy: In His Elements is Filipino as Mr. Herbert empathically says onstage: “every element of this show is Filipino.” And it was true, but only to a point because what makes Mr. Herbert’s comedy so relatable is the amusement sparked by a person wondering why his Filipino mother does the things she does — things we never dared to ask our mothers.
He tells a story of his mother’s propensity to have him dance whenever anyone visited their house once she discovered that he could dance a mean Michael Jackson.
The bit is met with uproarious laughter because many of us, at one point, wondered why our parents had us put on a talent show for visitors.
This is Mr. Herbert’s third special with Netflix after Live in Seattle in 2017 and Comin’ In Hot in 2019.
While much of the special features Mr. Herbert doing a stand-up comedy show in Solaire Resort and Casino in Parañaque City, each segment is interspersed with a short travelogue where he “tours” fellow Filipino-Americans like breakdancer Ronnie Abaldonado and Grammy-winning music producer Ramon “!llmind” Ibanga, Jr., around Manila.
I say “tours” because the visits to places like churches are so short that they are meant to point out that none of the people Mr. Herbert brought over for the special had ever been to the Philippines.
Mr. Herbert himself only spent five years in the Philippines, though in interviews he said that those five years were his happiest.
There are scenes of them traveling from the airport to hotel via a fully decked-out, colorful jeepney (which, sadly, are even scarcer now with the lockdown), playing street basketball, and eating chicken adobo.
And then we go back to the stage show where he says that Filipinos are so close that he only just realized that one of the cameramen, the one assigned to take his close-ups, was his uncle. Whether it was true or not, it made for a great laugh.
Another segment is about how he got his name “Jo Koy.” The build-up is long — longer than his other stories — and the pay-off isn’t that surprising (especially if you are a writer who has asked him about it before), but the delivery is gold and the audience is in stitches.
At length, Jo Koy: In His Elements is a enjoyable romp about a man discovering his Filpino-ness and having fun while doing it.
The comedy special streams starting June 12 on Netflix. — Zsarlene B. Chua
PHILIPPINE exporters are pushing for local consumers and businesses to prioritize their products as they shift to the domestic market while recovering from the effects of the pandemic.
Philexport President Sergio R. Ortiz-Luis Jr. said in a phone interview on Thursday that companies are temporarily focusing on the domestic market as long as businesses are unable to resume operations at full capacity, which he estimated could last a year.
“During this pandemic time, mukhang maraming kumpanya na kailangan tulungan, lalo na ‘yung mga supplier na maliliit. Encourage ko sila na ituloy ang negosyo.” (It looks like there are plenty of companies that need help, especially small suppliers. We encourage them to continue their business).
He emphasized that the move is temporary as industries recover, and is not intended to discourage the importation of products. But he also said that goods produced in the country should be prioritized.
“‘Yung mga namimiling mga kumpanya rito na nagbubukas, unahin na muna ‘yung mga local para matulungan nila. Lalo na ‘yung maliliit. Dun na muna sila bumili.” (For companies that are opening up, they should prioritize local business first to help them. Especially the small ones. They should buy there.”
He listed food items, clothes, and face masks as items that can be produced locally.
Some exporters have already shifted production to personal protective equipment, including face masks and cleanroom suits.
Philippines trade declined in April, with merchandise exports falling by 50% year-on-year, according to the Philippine Statistics Authority. Merchandise imports also fell 65%.
“It will take time to recover,” Mr. Ortiz-Luis said, explaining that companies are not able to operate at full capacity and are facing diminished market consumption.
He said he cannot measure local demand at this time, but believes that the move would significantly help companies.
“The demand is low. Dahan-dahan. We’re hoping na kahit low yung demand, unahin muna ‘yung local.” (Slowly. We’re hoping that even though demand is low, they’ll buy local first). — Jenina P. Ibañez
