Pandemic delays delivery of Chelsea Logistics’ passenger ferry from Japan

June 4, 2020 | 12:06 am

By Arjay L. Balinbin, Reporter

Chelsea Logistics and Infrastructure Holdings Corp. on Wednesday said the scheduled delivery of its new roll-on/roll-off passenger ferry from Japan in April had been “deferred” due to the coronavirus pandemic.

“We still have two ships in the pipeline that are due for delivery. One actually was due last April 21, but was deferred because of the COVID-19 situation,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said during the company’s annual stockholders’ meeting on Wednesday.

Mr. Damuy was referring to the 97.78-meter MV Starlite Venus that has a carrying capacity of 740 passengers, 22 buses, and six trucks. The brand-new passenger vessel was built by Japan-based shipbuilder Kegoya Dock Co., Ltd.

In a news release in January, Chelsea Logistics said the M/V Starlite Venus would bring its fleet “to a total of 74 vessels, consisting of 22 roll-on/roll off passenger vessels, 11 fastcrafts, 9 cargo ships, 16 tankers, 13 tugboats, and 2 floating docks through its subsidiaries Chelsea Shipping Corp., Starlite Ferries, Inc., Trans-Asia Shipping Lines, Incorporated, and Supercat Fast Ferry Corporation.”

Mr. Damuy said the listed shipping and logistics company is also awaiting the arrival of a 123-meter ro-ro passenger vessel from Japan’s Fukuoka Shipbuilding Co. Ltd. He said the vessel is “coming in the second quarter 2021.”

Chelsea Logistics is continuously looking at other opportunities to get “a better ship,” Mr. Damuy said.

“It only depends on the price and the timing on when we will bring the ship,” he added.

He also explained that once such ships are deployed, it will “take a year” for them to “mature on the revenue side.”

‘NEW NORMAL’ OPPORTUNITIES
Mr. Damuy said the company is “packaging some specialized service” as it sees that there are “more opportunities coming in when things start to go back to normal.” He said the coronavirus pandemic has caused an increase in demand for logistics services.

“[We are] exploring other opportunities out of this pandemic,” he noted.

As for the company’s partnership plans, he said: “We’ve been talking to various people, domestic and foreign operators for a possible partnership to bring value to business. However, these discussions are still in initial stages.”

The Dennis A. Uy-led firm’s net loss ballooned by 51% to P832 million last year as the company suffered from its share in the losses of some units and expenses for new vessels and a warehouse complex.

VLF 2020: A nostalgia trip

June 4, 2020 | 12:06 am

PLAYWRIGHT Jay Crisostomo’s entry to this year’s Virgin Labfest theater festival, Dapithapon, tackles the struggles of student life and adolescence.

The play follows three senior high school boys who all have to confront their greatest fears in one day: flunking out of school, impossible parental expectations, and an unhealthy infatuation with a teacher. They cling to one another and try to preserve their friendship before they are parted.

Mr. Crisostomo said that the play is a “slightly autobiographical story” of his time in school.

“All the main characters were based on friends from school. Iba lang ‘yung mga pangalan (Names were just altered),” he told BusinessWorld during a Zoom interview on June 2.

Aside from the story being a trip down memory lane, “I want [the show] to be a reminder [for others] to keep that youthful vigor, even if we have to face the real world and ‘be adults’,” he said.

TRANSITIONING TO FRAMES
Thanks to the ongoing COVID-19 (coronavirus disease 2019) pandemic, Dapithapon and the other plays in this year’s Virgin Labfest (VLF) — the Cultural Center of the Philippines’ theater festival which focuses on new, unstaged one-act plays — are going to have live streamed performances on the VLF YouTube page.

A comic book’s panels is what influenced the Dapithapon team’s approach to telling the play’s story online.

“It’s been a grueling process for us to ask actors to go into certain frames,” Director Sigmund Roy Pecho said, citing that the actors navigate themselves in their own spaces depending on the required shot.

“Perhaps it’s difficult for some to call it theater since we are not in the same space and do not have an audience to interact with,” he added.

The production will also include anime reactions to the show.

“Malayu-layo na ‘yung narating natin, pero malayo pa ‘yung babaybayin natin (We have come a long way, but we have a long way to go,” Mr. Pecho said on the challenges of working in the new medium.

The play’s cast members are Peewee O’Hara, Quiel Quiwa, Khayl Sison, Ina Azarcon-Bolivar, and Jerome Dawis.

Dapithapon will stream live on June 14, 3 p.m., and June 27, 5 p.m.

Aside from the plays and staged readings, viewers can also catch the VLF Playwright’s Fair online with this year’s playwrights talking about their work on June 11-14, 17-20, 25-27 at 8 p.m. Meanwhile, the Virgin Labfest 2020 Writing Fellowship Program will culminate in an online staged reading of the fellows’ works on June 28 at 2 p.m. and 5 p.m.

For more details and show schedules, visit https://www.facebook.com/culturalcenterofthephilippines/ and https://www.facebook.com/thevirginlabfest/, or join https://www.facebook.com/groups/VLFTambayan/. — Michelle Anne P. Soliman

SEC flags Financial Breakthrough, One Market Global investor scheme

June 4, 2020 | 12:05 am

THE Securities and Exchange Commission (SEC) has flagged two groups offering investment opportunities to the public without secondary licenses from the commission.

In advisories on its website, the corporate regulator named The Filipino Financial Breakthrough Program/Financial Breakthrough Program (Financial Breakthrough) and One Market Global (OMG) as entities soliciting investments without authorization.

Through its investigation, the SEC said it found that Financial Breakthrough is running its investment scheme through Facebook, enticing the public to open an account and follow several steps to earn up to P125,400.

Opening one account would cost P18,660 and seven accounts would cost P130,620. Investors would then be entitled to a sign up bonus of P12,000, a referral bonus of P11,550, a pairing bonus of P16,800, an additional bonus of P33,600 if he/she gets to enroll four persons, a P1 million insurance by AXA, and free products from Royale Business Club, Inc.

The SEC said offering these bonuses in exchange of an investment is equivalent to offering securities, which in order to be legal, has to be registered with the SEC.

The SEC said Financial Breakthrough does not have a record of registration with the commission, nor does it have a license to solicit investments and sell securities, therefore its operation is violating the Securities Regulation Code.

In the case of OMG, the SEC said the group operates through a Facebook page and a YouTube uploader under the name “Pambansang Samaritano.” Both platforms offer opportunities for passive income, specifically, a return of 5.88-6% daily or 176–353% for 30 to 60 days.

OMG claims to be trading in the foreign exchange market, and offers referral bonuses for members that would get to invite more investors. Promotion materials from the group claim one could earn up to P627.75 million through referrals.

The SEC said OMG does not have records with the commission, and is therefore unauthorized to be running an investment business. While it claims to be registered with the Department of Trade and Industry under the name “On. Ma. Glo. Marketing,” OMG is violating the Securities Regulation Code with its operations.

“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of (the identified companies…),” the SEC said.

As a penalty, salesmen, brokers, dealers or agents that acted on behalf of Financial Breakthrough or OMG may be fined up to P5 million, imprisoned for up to 21 years, or both. — Denise A. Valdez

Global remittances may still grow; limited virus toll on some nations

June 4, 2020 | 12:05 am

GLOBAL REMITTANCE inflows could still grow this year, although some countries and sectors may see some impact from the pandemic, UniTeller said.

“In the past, remittances have been resilient but COVID-19 has been very different,” UniTeller CEO Alberto Guerra said in an online briefing on Wednesday.

“Corridors like Vietnam and the Philippines have not been affected as much, also Mexico. In particular, some countries in Latin America have been affected more,” he said.

The World Bank in April said global remittances could fall by 20% as the pandemic has affected economic activity in many countries due to lockdowns that have caused shutdowns of different industries.

Mr. Guerra said that the World Bank’s projection is “aggressively pessimistic” and will depend on various factors, including the country and industry sources for remittance inflows. He said the projected drop has not been observed so far, noting that some countries have seen declines but some have also seen growth.

“If you are going to ask me if Philippine remittances will go down by 20%….no, [it will not],” he said.

Bangko Sentral ng Pilipinas (BSP) data showed cash remittances to the Philippines in February grew by a slower pace of 2.5% year on year to $2.301 billion compared to the 6.6% expansion in January when inflows totaled $2.648 billion.

The BSP has already cut its growth projection for remittances to 2% this year from its 3% forecast before the virus hit.

Mr. Guerra said there will be varied impact depending on the source of remittances.

“Remittances coming from Hong Kong, Singapore, from the Middle East have been affected more than those from North America,” he said.

Aside from the pandemic, the decline in oil prices due to falling demand has affected some Middle East economies, which could in turn affect remittances from workers there.

“From Europe, we also have a mixed perspective — remittances from Spain, Italy, they have seen more impact more than other countries,” he added.

According to Mr. Guerra, industries that will be “dramatically hit” will be those in construction, cruise lines and travel-related industries, among others.

Meanwhile, he said those working in basic services as well as the healthcare sector will feel a minimal impact.

Lockdowns and political tensions have also affected remittances in the short term, Mr. Guerra said. In the case of domestic helpers in Hong Kong, he said although they continue to receive wages, the current turn of events has rendered them unable to go out to remit money.

Meanwhile, Mr. Guerra also said more migrant workers are opting to send remittances through digital means. He said many remittance companies have seen faster growth in online transactions versus traditional ones.

“The pandemic will just continue that process to grow…,” he said. — L.W.T. Noble

London phone boxes serve up coffee after lockdown

June 4, 2020 | 12:05 am

LONDON — Two of London’s famous red telephone boxes have been reborn as a coffee stall, and the owners say the lack of inside space that was a drawback when they opened a week before lockdown could now be an asset in a socially distanced capital. Couple Loreinis Hernandez and Sean Rafferty said Amar Cafe, which operated out of two adjacent disused phone boxes in west London, was trading for just a week before the city shut down at the end of March due to the COVID-19 (coronavirus disease 2019) pandemic. The easing of restrictions this week prompted them to reopen the café, which specializes in coffee from Hernandez’s native Colombia. “It was always going to be takeaways and maybe it might be better now for us because people would prefer to be outside, sitting in the park.” While stocks are good for a few weeks, at least, Rafferty and Hernandez are hopeful that the lockdown restrictions in the South American country do not prevent future deliveries. — Reuters

ERC urged to probe Iloilo power failures

June 4, 2020 | 12:04 am

PANAY Electric Co., Inc. (PECO), the former franchise holder of Iloilo City’s power distribution, has called the attention of the Energy Regulatory Commission (ERC) to look into how its rival MORE Electric and Power Corp. has been handling electricity distribution during the lockdown period.

In a virtual briefing Wednesday, PECO said it had filed with the regulator on May 22 a supplemental motion for reconsideration appealing, among others, to investigate the hours-long power outages that have beset the city in May under MORE’s watch.

“We are hoping that the ERC will call us for a hearing, or if not, resolve immediately our supplemental motion for reconsideration, given the escalating complaints of the consumers of Iloilo,” PECO legal counsel Estrella C. Elamparo told reporters.

In the motion, it also reiterated its right to due process when it was not informed of the ERC’s March 5 decision granting a provisional certificate of public convenience and necessity (CPCN), revoking PECO’s provisional authority to operate as a distributor.

“This is still undergoing evaluation,” ERC Spokesperson Floresinda B. Digal said when asked about an update on PECO’s request.

The 97-year-old electricity utility cited the two 13-hour maintenance operations of the Razon-led power distributor on May 17 and 30 in Jaro district and Iloilo City proper, respectively.

Last month, MORE conducted maintenance works after the findings from Meralco Industrial Engineering Services Corp. (Miescor) suggested the immediate upgrade of PECO’s facilities. It was in February when the utility started taking over the assets of the former power distributor.

“This is what happens when you force major upgrades within a short span of time, rather than spreading it out over a period of time [and] checking your records what [were] previously replaced, which lines are previously upgraded, and only upgrading what needs to be upgraded as of the moment,” Marcelo U. Cacho, PECO head of public engagement and government affairs, said in the briefing.

Mr. Cacho also cited other instances of power interruptions during MORE’s maintenance of feeder lines, as well as consumers’ complaints on alleged inaccurate electricity billings and the replacement of meters without their consent.

The Jaro substation is servicing 100,000 to 150,000 electricity consumers, while the substation at the city proper energizes 50,000 households.

The ERC reminded Iloilo City consumers in a May 6 advisory that they should pay their bills to MORE starting the March billing period.

Meanwhile, PECO has submitted a motion for reconsideration with the city government after it revoked the company’s business permit in May, citing its lack of CPCN and franchise.

Ms. Elamparo said the two supposed requirements were never required.

The ERC had granted PECO a provisional authority to continue its operations before its 25-year franchise from the government ended on May 25, 2019.

The legal battle between the two power utilities is far from over as cases are still pending with the ERC, Iloilo Regional Trial Court, Cebu Court of Appeals, and the Supreme Court. — Adam J. Ang

Yields on 7-day deposits slip on demand

June 4, 2020 | 12:04 am

YIELDS ON the central bank’s term deposits inched down. — *BW FILE PHOTO*

YIELDS on the central bank’s term deposit facility (TDF) dipped on Wednesday as oil prices continued to correct amid renewed demand.

Tenders for the seven-day notes offered by the Bangko Sentral ng Pilipinas (BSP) on Wednesday amounted to P328.68 billion, higher than the P170 billion on the auction block and also surpassing the P273.755 billion in bids seen last week for the P150 billion up for grabs.

Banks asked for yields ranging from 2.25% to 2.2525%, a narrower margin compared to the 2.25% to 2.254% seen the previous week. This caused the average rate of the seven-day deposits to settle at 2.251%, down by 0.06 basis point from the 2.2516% logged on May 27.

“The results in the TDF auction reflect the market’s continued interest for BSP’s deposit facilities amid ample liquidity in the financial system,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The TDF is the central bank’s primary tool to shore up excess liquidity from the financial system and to better guide market interest rates.

Offerings of the 14- and 28-day term deposits remain suspended. The BSP halted offering term deposits in mid-March to support the banking system amid the imposition of the lockdown measures.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the continued strong demand for the TDF shows investors are searching for higher yields as they park their excess funds. He said the lower rates came amid a correction in the global oil prices.

“The consistent marginal easing of the 7-day TDF auction yield may be partly attributed to the fact that global oil prices recently corrected higher to the highest levels in nearly 3 months, that could limit any further easing on inflation,” Mr. Ricafort said in a text message.

Oil prices saw some recovery in May after succumbing to negative territory in April. This, as demand picked up after the gradual reopening of some economies and as major oil exporters committed to cut down production by 10 million barrels per day.

Mr. Ricafort said the decline in the average rate was marginal as its yield continued to inch closer to the headline inflation print.

“Any rate lower than inflation will be considered negative net interest rate considering also that there is a 20% withholding tax on interest rate income,” he said.

Headline inflation in April settled at 2.2% on the back of lower food and oil prices, the Philippine Statistics Authority (PSA) reported last month. This is slower than the 2.5% in March as well as the three percent recorded in April 2019.

Meanwhile, May inflation likely settled at 1.9% to 2.7%, the BSP Department of Economic Research said, giving a point projection of 2.3%. A poll by BusinessWorld among 17 economists yielded a median estimate of 2.2%, with analysts citing higher prices of some food items and fuel as upward pressures.

The PSA will report the official May inflation data on June 5. — L.W.T. Noble

Robots dish out the drinks at reopened Dutch restaurant

June 4, 2020 | 12:04 am

MAASTRICHT, Netherlands — At the Dadawan restaurant in the southern Dutch city of Maastricht, an unusual group of new staffers has been brought in to help after the Netherlands eased its coronavirus lockdown this week: robots. A robotic trio of waiters named Amy, Aker, and James roll back and forth from the bar at the Asian fusion restaurant, handing out drinks — and lessening the number of trips that human staff need to make through the restaurant. Each robot has a simple humanoid figure, including arms to hold serving trays. Simple displays on their faces shows a smile, or occasionally a frown. Customers must pick up their own drinks. Though robotic servers were introduced in China several years ago and have since become a novelty at restaurants around the world, only a handful of Dutch eateries have so far introduced them. For now, Dadawan’s robo-service is limited to drink delivery, but the owner hopes to quickly widen their repertoire. Restaurant representative Paul Seijben said waiters’ jobs are not threatened by the newcomers. “Our team is actually really happy with the robots,” Seijben said. Staff, who wear face masks, load drinks onto the trays, press a table number, then stand back as the robot rolls away. Restaurants in the Netherlands were closed from mid-March to June 1 for everything but take out and delivery. Since Monday, restaurants have been allowed to receive up to 30 people with a minimum distance of 1.5 meters between tables. Diners must make an appointment in advance. — Reuters

Metro Pacific provides PPEs to Mindanao hospitals

June 4, 2020 | 12:03 am

METRO Pacific Investments Corp. (MPIC) has provided personal protective equipment (PPE) to frontliners in hospitals, medical institutions and local government units in Mindanao in their fight against the coronavirus disease 2019 (COVID-19) pandemic.

The move comes as MPIC Chairman Manuel V. Pangilinan in the early days of the pandemic cited the need to increase the PPE supply and mobilized companies in the group to prioritize the health and safety of health workers in hospitals under the group.

The group expanded its supply reach to hospitals outside its network, especially those in Davao and Zamboanga that have reported high cases of the dreaded disease.

Through PLDT Inc.’s logistical resources, the full PPE kits were flown to Mindanao and delivered to the hospitals for distribution to their determined recipients. Each kit included a surgical face mask, an N95 facemask, a disposable head cap, disposable shoe covers, a disposable surgical gown and a pair of anti-fog goggles or a faceshield.

MPIC said the kits were given to Dr. Jorge P. Royeca Hospital in General Santos City, Cotabato Regional Medical Center, Bishop Joseph Regan Memorial Hospital in Tagum, Kidapawan Doctors Hospital, Zamboanga City Medical Center, South Cotabato Provincial Hospital in Koronadal, and Northern Mindanao Medical Center in Cagayan de Oro City.

The recipient local government units are Butuan City, Agusan del Norte province, and Surigao del Norte province, through its four Mindanao hospitals. The provision was intended to augment the depleting number of protective equipment used by their doctors, nurses, and hospital staff during the two month-long COViD-19 defense.

Better e-payment regulation may improve, cut cost of transactions

June 4, 2020 | 12:03 am

LOCAL regulations on electronic payments (e-payments), especially on blockchain technology, can be improved further to lower remittance costs and make transaction processes more efficient, according to a technology company looking to expand in the Philippines.

Ripple’s head for Southeast Asia operations Kelvin Lee said in an interview that the blockchain company will still push through with its expansion plans in the country despite the ongoing coronavirus pandemic, but declined to give specific details.

This is in line with the central bank’s aim to promote e-payments across the country, he said.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno wants 50% of all payments, both in value and volume, done digitally before his term ends in 2023.

Ripple provides services to partner financial institutions to aid them in sending money globally via blockchain.

However, Mr. Lee said the Philippines could further improve the cost efficiency in sending or receiving money through better regulations.

Citing data from the World Bank, he said the country is among those with remittance corridors relatively cheaper compared to other countries.

“Improving cost efficiency of cross-border payments will largely boil down to regulatory controls. The current regulations meted out by the Philippines government and BSP in lowering the cost of cross border payments are welcomed as it enables more fintech players to enter the market, while also protecting consumer interest,” Mr. Lee said via email last week.

The central bank has launched Philippine Payment and Settlement System or PhilPaSS and the regulatory framework National Retail Payment System (NRPS) to promote an efficient payments and settlements systems.

“The cost efficiency of cross-border payments can also be further improved with the emergence of blockchain technology and digital assets — both of which require regulatory clarity to drive innovation and protect consumer interest,” Mr. Lee added.

However, he warned that regulatory control should be balanced as over-regulation could be “disruptive” to innovation, while under-regulation may give rise to financial crimes or issues on compliance.

“BSP is on the right track and we are very optimistic about the current laws they are pushing for to spur growth in the fintech sector,” he said.

Mr. Lee said digital services can substantially lower the transfer costs for customs, such as overseas Filipino workers when sending money back home.

For instance, Ripple uses blockchain technology and digital asset XRP to process the transfer of money faster and at a reduced cost as this “eliminates the need for pre-funding in destination currencies, thus dramatically lowering costs while enabling real-time payments in emerging markets like the Philippines.”

Mr. Lee said the company and one of its partners are also looking at waiving or lowering the end-user remittance fees for transactions into the Philippines to give customers financial relief amid the COVID-19 pandemic. — Beatrice M. Laforga

Insular Life to invest P500M in digitization

June 4, 2020 | 12:03 am

INSULAR Life Assurance Co. Ltd. (InLife) has set aside some P500 million for its digitization efforts as it adapts to the changing environment and consumer behavior.

In an online press briefing on Tuesday, InLife Executive Chairman Nina D. Aguas said the life insurance company was set to make huge investments to boost its digital capacity last year, but this might be increased further as the need to adapt has been more evident early this year.

“Last year, we were ready to invest and we’ve set aside certain amounts to make this investment but that number may change if we want to accelerate even further our digital capability. For now, it’s in the ballpark of half a billion (P500 million) and we could do more,” Ms. Aguas told reporters.

Ms. Aguas said InLife aims to be “equally aggressive” in technology and digitization efforts as its partner bank UnionBank of the Philippines, Inc.

Ms. Aguas said the life insurer will also tap financial technology (fintech) firms, particularly those that can service InLife’s healthcare products, for potential partnerships as it ramps up its digitization efforts.

In the first few months of the year up to now, she said InLife saw a “phenomenal rise” in customers buying prepaid life insurance and health coverages available through the online selling platform Lazada and the company’s own electronic store.

“We are investing, we are doing it internally now with no partners, but that is not to say that we will not do so, because the opportunity is clearly there particularly on the healthcare side… We do not mind looking at partners who could co-invest with us,” she said.

However, in terms of looking for partners that could provide digital services for its life insurance products, she said there will be some “limitations.”

InLife had discussions with several potential fintech partners in the past only to find they are “culturally not aligned.” She noted that InLife is trying to preserve its culture as a Filipino life insurance firm.

“We are very open particularly on the healthcare side looking at partnerships… Telemedicine for example, we have partners now in telemedicine, but we would like to expand that some more,” she said.

In 2019, InLife recorded P12.67 billion in total premium income for both traditional and variable life insurance products to rank eighth in the sector.

The company, meanwhile, ranked 10^th in terms of new business annual premiums equivalent (NBAPE) with P1.91 billion last year.

For this, Raoul Antonio E. Littaua, senior executive vice president and head of agency distribution group at InLife, said their goal is to maintain the levels of NBAPE they had in 2019 despite the adverse impact of the coronavirus crisis on the company and the whole economy.

“I think we have a better chance at maintaining the NBAPE so to speak, [however, in terms of variable universal life (VUL) products], that will be a bigger challenge because VUL policies, investment policies, with all the uncertainty, we don’t see that coming in at least in the next few months. Maybe down the road, who knows. All of these things will change as soon as an announcement is made that there is a vaccine already or fewer (infections),” Mr. Littaua said.

InLife booked P2.94 billion in net income last year, ranking fifth among all life insurers in the country. — B.M. Laforga

Parisian cafés eke out space along sidewalks

June 4, 2020 | 12:03 am

PARIS — The Café de Flore in Paris, once a favorite drinking hole of Simone de Beauvoir and Jean-Paul Sartre, spread its tables along the pavement, in front of the neighboring book store, and reopened on Tuesday for the first time in 11 weeks. Locals could once again enjoy a morning espresso, albeit only at tables spaced a meter apart, as the government allowed cafés and restaurants to open outdoor terraces, lifted travel curbs within France and permitted sunbathing on beaches. Across Paris, café owners encroached on sidewalks to maximize the number of tables they could set. Each had to submit their new configuration to the local authorities online and in the days ahead their new layout will be inspected. Those without little or no outdoor seating have been less fortunate. Across the boutique-lined Boulevard Saint-Germain from the Café de Flore, the Brasserie Lipp, which kept serving through World War Two but was shut down by the coronavirus pandemic, remained closed. Some cafés replaced menus with chalkboards, others asked patrons to scan a barcode to bring up the menu on their smartphone. Finance Minister Bruno le Maire on Tuesday promised a solidarity fund to help cafés and restaurants would run until the end of 2020. Many depend on the tourists who in normal times swarm through Paris, the world’s most visited city. — Reuters