[B-SIDE Podcast] Banking during COVID-19: the Philippine financial inclusion story

May 18, 2020 | 9:15 am

According to 2017 data from the World Bank, only 34% of Filipinos have bank accounts. The Bangko Sentral ng Pilipinas wants to bring this figure up to 70% by 2023. Because of the pandemic and the resulting lockdown, the need for financial inclusion and access to banking services has become more urgent. BusinessWorld reporter Luz Wendy Noble speaks with Pia Roman Tayag, managing director of the Center for Learning and Inclusion Advocacy of the Bangko Sentral ng Pilipinas. They talk about initiatives to bring more Filipinos into the formal financial system, how the enhanced community quarantine has driven consumer behavior—causing a shift to e-money and online banking, and how financial inclusion plays out in the distribution of the social amelioration program.

Recorded remotely on April 27. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

PHL economy may lose up to P1.2T

May 18, 2020 | 12:32 am

By Beatrice M. Laforga
Reporter

THE Philippines could now suffer up to $24 billion (P1.2 trillion) in economic losses if the coronavirus crisis lasts for six months, according to the Asian Development Bank (ADB).

New data from the ADB showed potential economic losses in the Philippines could range from $12.9 billion up to $23.9 billion, depending on the length of time it takes for the country to contain the coronavirus disease 2019 (COVID-19) outbreak and the government’s policy response.

Without the government’s policy measures, the ADB estimated economic losses would reach between $15.701-$23.941 billion (P796 billion and P1.213 trillion) — representing 3.9%-6% of gross domestic product (GDP). The extent of the losses would depend on the length of the containment period — whether three or six months.

ADB said government’s policy measures may soften the impact of the coronavirus pandemic on the economy. Factoring in these measures, potential economic losses from COVID-19 are estimated to be lower at $12.833-$18.256 billion (P650 billion-P925.237 billion). These losses would be equivalent to 3.2-4.6% of GDP.

This was an update from the previous estimate in late March, where the country’s potential economic losses were slightly lower at $19.035 billion at worst, and up to 2.5 million projected job losses.

So far, the Philippine government’s COVID-19 response package stands at $16.67 billion, representing 4.53% of GDP. This includes the rollout of a P200-billion cash aid program for the informal sector; P51 billion in wage subsidies for small businesses; a P120-billion credit guarantee for affected small firms; and increased budget for the Health department.

Currently, the government is looking at P130-160 billion in new programs to help the Philippine economy get back on track.

The ADB’s estimates were based on two scenarios — a “short” containment period of three months to get domestic outbreaks under control and economic activity to normalize, and a longer six-month containment period.

The ADB also considered the economic impact of border closures, travel restrictions, and lockdowns imposed by governments on domestic consumption, investment in China and other affected countries, trade, decline in tourism receipts, employment and income, and the impact of fiscal stimulus via income support.

After two months of enhanced community quarantine (ECQ), Metro Manila and other parts of the country on Saturday gradually eased lockdown measures in an effort to restart the economy.

The National Economic and Development Authority (NEDA) has estimated the pandemic’s potential economic impact at P2 trillion or 9.4% of GDP this year.

GLOBAL ECONOMY SUFFERS
The ADB on Friday said the global economy may suffer $5.8 trillion to $8.8 trillion in losses this year due to the pandemic.

ADB data showed Southeast Asia’s economic losses could hit $163-$253 billion or 4.6-7.2% of GDP. However, state interventions would cut potential economic losses by around 26-34% across the region to $119.6-$166.3 billion, which accounts for 3.4-4.7% of regional GDP.

Data from ADB showed Indonesia would be hardest hit in Southeast Asia with potential economic losses of $57.195-$87.912 billion (4.6-7.1% of GDP), followed by Thailand with losses of $30.412-$45.778 billion (5.4 -8.1% of GDP) and Singapore with $28.914-$45.147 billion (6.7 -10.5% of GDP).

The Philippines would be the fourth hardest-hit country in Southeast Asia, followed by Vietnam which could lose $7.516-12.926 billion (2.9-5% of GDP).

However, the Philippines’ COVID-19 economic package worth $16.68 billion is only the fifth- largest among 10 countries in the region. Thailand had the largest economic plan at $82.534 billion, followed by Indonesia with $57.97 billion.

According to ADB Chief Economist Yasuyuki Sawada, containing the outbreak is key to mitigating the economic cost. These include measures such as testing, contact-tracing, isolation of infected people, effective physical distancing and enough supplies of protective and medical equipment.

“Second, it is important for the government to support struggling families and businesses to mitigate the adverse impact of the pandemic and to avoid long-term consequences for growth and development,” Mr. Sawada said in a taped address posted online on Saturday.

While economies with local outbreaks and strict lockdowns will be “hardest hit as domestic demand weakens sharply,” Mr. Sawada noted that governments should still focus on containing the pandemic first as “rapid and effective containment will allow for a faster recovery.

“It is [also] critical to identify industries and occupations in terms of essentiality and economic importance and their ability to operate safely with adequate social distancing. Government should reopen the economy sequentially, balancing health risks and economic considerations and being ready to tighten if outbreaks recur,” he added.

Philippine economic backbone faces coronavirus axe

May 18, 2020 | 12:31 am

By Arjay L. Balinbin
Reporter

THE swarm of diners looking for cheap food on a busy street in Cubao — one of the oldest and busiest districts in Quezon City near the Philippine capital — has disappeared since Manila and nearby cities were locked down to contain a coronavirus pandemic.

“I would be lucky to get a customer during lunchtime,” cured beef eatery owner Maria Teresita, 55, said. “I’m not worried about the rent because I own the place, but our sales may not be enough to pay for our utility bills,” she said in an interview.

Filipino entrepreneurs sell everything from food and clothing to beauty products and health supplements and are considered to be the backbone of the Philippine economy.

More than 99% of the roughly one million business establishments in the country in 2018 were micro, small and medium enterprises (MSMEs), according to the Trade department. The smallest of them accounted for 88% of the total, or a little more than 887,000 establishments.

These have raised the quality of life of their families and workers, having created 5.7 million jobs or 63.19% of the country’s new jobs in 2018, data showed.

A fifth of the country’s MSMEs are in Metro Manila, which generated more than a quarter of the total jobs.

Now, these small companies are at risk of getting bankrupt or completely shutting down amid a Luzon-wide lockdown that has since been limited to the metro and key cities and regions.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March to contain the pandemic that has sickened more than 12,000 and killed more than 800 people in the Philippines.

People should stay home except to buy food and other basic goods, he said. Mr. Duterte has extended the so-called enhanced community quarantine twice for the island and thrice for the capital region where novel coronavirus infections are concentrated.

CASH FLOW
While some businesses in Metro Manila have been allowed to reopen under the modified lockdown from May 16 to 31, people were still advised to stay home.

About 436,000 of the country’s 1.6 million small businesses were forced to halt operations amid the lockdown, with one million of them operating with a skeletal workforce, according to the Finance department.

The smallest of these firms lack traditional banking relationships, making it more difficult for them to get financial assistance during the health crisis.

The personal finances of many small business owners are at serious risk because they mix their personal and business expenses, some of them using a house as collateral.

While the government has declared a moratorium on the payment of rent and bills, some of these businesses simply don’t have enough cash to keep things going.

The Philippine Exporters Confederation (PhilExport) in a statement on March 13 urged the government to help MSMEs keep afloat by giving them access to collateral-free loans, a moratorium on loan and interest payments and tax breaks.

The government has allotted as much as P51 billion in wage subsidies to small business workers, which could help Louie, 19, and his eight co-workers at Aytona General Merchandise in Cubao.

His boss wanted him to go home to his hometown in Palawan province but he was forced to stay behind after work, classes and public transportation were suspended starting March 17.

“We don’t have any choice but to stay here although we don’t get paid anymore,” Louie, a salesman, said in an interview. “Our food and lodging are free. For now, that’s a better option.”

The shop, which continues to sell plants and handicrafts even if the products are considered nonessential, used to sell as much as P10,000 daily. Now, they would be lucky with just P700.

LENDING
“God forbid,” Louie said when asked what he would do if the lockdown was extended until June.

On May 5, the Philippine central bank adopted “prudential measures” to help MSMEs during the coronavirus disease 2019 crisis and hasten their recovery.

It deferred stricter capital rules for standalone thrift, rural and cooperative banks by another year so they can continue lending to small businesses in the countryside.

MSME loans guaranteed by the state-owned guarantee corporations were also assigned zero risk weight.

Ferdinand, the 42-year-old owner of Bong’s Blooms & Balloons inside the 35-hectare commercial mixed-use Araneta City, was busy filling out forms for his six employees availing themselves of the government’s cash aid program.

He’s worried about his P60,000 monthly rent even if the Trade department had issued a memo giving tenants a 30-day grace period for their rents.

Ferdinand sold P300 worth of flowers on a Saturday, a far cry from the P20,000 revenue he got on a very good day before the virus struck and the lockdown was imposed.

Ronnie, 50, said he wished the government did more to help small business owners like him.

“I haven’t received any help,” the owner of a money changing business in Quezon City said in an interview. “When did they really help us? They’re only good at collecting taxes,” he added with a sigh.

The money changer said his business had not been making money since the lockdown. “I live in this small stand because I have nowhere else to go,” he said.

TRANSITION
Parañaque Rep. Joy Myra S. Tambunting has filed a bill that will require landlords to give MSMEs a 50% discount on rent for the periods covered by the community quarantine and a month after. Also under the measure, premium payments or contributions to the Social Security System, Philippine Health Insurance Corp. and Home Development Mutual Fund of both the employers and employees of MSMEs will be waived and considered paid during the lockdown.

Senator Maria Imelda Josefa R. Marcos has also filed a bill that encourages small businesses to retain their workers by giving a direct wage subsidy of 75% of a company’s payroll cost.

“Small enterprises have a very low survival rate even under normal circumstances, so how much more under the new normal,” Benvenuto N. Icamina, vice-president and chief operating officer at the Wallace Business Forum, said by telephone.

“There’s only so much assistance the government can give them to survive,” he said, adding that the smallest ones were likely to fail.

Mr. Icamina said these companies could either transition to technology by adopting an online platform or diversify into a business preferred by consumers under the so-called new normal.

“If you are an innovative entrepreneur, my advice to you is you have to find a way to survive,” he added.

Maria Teresita, the eatery owner, had not let any of her eight crew members go. “I pity them. My plan was to give them a pay hike after the lockdown, but who knows what would happen?”

Deeper budget cuts expected

May 18, 2020 | 12:30 am

SOME departments may face deeper budget cuts, as the government looks for more funds for its efforts to contain the coronavirus disease 2019 (COVID-19) outbreak and its economic fallout.

Budget Undersecretary Tina Rose Marie L. Canda said some agencies may have their budgets further reduced, after they identified more savings from departments this month.

“It’s possible because we will withdraw the offered savings once the submissions are complete,” Ms. Canda said.

Data from the Department of Budget and Management (DBM) showed allotments for line departments were adjusted in April in order to augment the budget of agencies responding to the coronavirus pandemic.

Under Republic Act No. 11469 or the Bayanihan to Heal As One Act, President Rodrigo R. Duterte can realign funds towards COVID-19-related efforts.

The Department of Public Works and Highways (DPWH) suffered the biggest budget cut at P121.94 billion, bringing its allotment down to P458.95 billion from more than P580 billion originally.

This comes as the economic team is pushing for the “revival and acceleration of the ‘Build, Build, Build’ infrastructure modernization program,” in order to kickstart recovery after the lockdown.

The budget for the Education department was also slashed by P21.86 billion to P499.49 billion from P521.35 billion previously. The Commission on Higher Education’s budget was reduced by P14 billion, bringing down its budget to P32.88 billion from P46.78 billion, while the budget for state universities and colleges was cut by P7.64 billion to P66.08 billion.

The Agriculture department’s budget was lowered by P11.7 billion to P50.59 billion, while the Department of Transportation saw its budget trimmed by P8.82 billion to P90.58 billion.

The Department of National Defense’s budget was reduced by P6.72 billion to P185.03 billion, while the Department of Information and Communications Technology’s budget was cut by P6.19 billion to P3.67 billion. The budget for the Department of Trade and Industry was lowered by P4.05 billion to P16.9 billion, while that of the Department of the Interior and Local Government was clipped by P3.09 billion to P236.76 billion.

Allotments for state subsidies to government corporations were also shaved by P5.08 billion, bringing the total budget to P190.9 billion from the earlier programmed P195.99 billion.

DBM data showed the funds were redirected to agencies implementing COVID-19-related programs.

The Department of Social Welfare and Development (DSWD) received the biggest share at P165.23 billion, which nearly doubled its budget for the year to P329.04 billion. The DSWD is in charge of the social amelioration program for low-income households.

The Department of Finance saw its budget increased by P35.26 billion to P53.81 billion, while the Labor department’s budget was given an additional P1.48 billion to P18.9 billion.

The Department of Health’s budget got an additional P1.91 billion, bringing its total to P102.933 billion for this year.

DBM issued National Budget Circular No. 580 in late April saying that 35% of the budgets of state agencies will no longer be released to generate funds for emergency responses.

It also ordered the agencies to submit a report on the programs and activities that could be discontinued this year so funds can be redirected for other COVID-19-related expenses.

Ms. Canda said the DBM is currently consolidating the submissions made by line departments and will report the proposed savings to the President for consideration.

As of April, the Budget department has released 90.1% or P3.693 trillion out of this year’s P4.1-trillion spending plan, leaving P406.055 billion to be released for the rest of the year. — Beatrice M. Laforga

How does the Philippines’ transformation to a ‘market-based democracy’ compare with other countries?

May 18, 2020 | 12:30 am

SEC now requires filings via mail as virus persists

May 18, 2020 | 12:09 am

By Denise A. Valdez
Reporter

THE Securities and Exchange Commission (SEC) will be requiring regulatory filings to be sent via courier to protect its personnel from contracting the coronavirus disease 2019 (COVID-19).

The corporate regulator has issued a new memorandum circular outlining new procedures for all corporations in submitting audited financial statements and general information sheets.

Companies must now send reports through the SEC Express Nationwide Submission (SENS) to any courier of their choice. The files must be delivered to the SEC Head Office located at the Philippine International Convention Center in Pasay City. All satellite offices remain closed for receiving reports.

While under enhanced community quarantine (ECQ), the SEC will allow submission of both financial statements and general information sheets via email. But once ECQ is lifted, a hard copy of the filings must be submitted through SENS. Financial statements that will be sent must be stamped by the Bureau of Internal Revenue.

To use SENS, corporations must download and accomplish the SENS form accessible through sens.secexpress.ph. The form should be included with the reports in the envelope that will be sent to the SEC via courier.

Submission of the filings will be from June 29 to August 7 and will follow a schedule based on the last digit of a corporation’s SEC registration or license number. Those whose registration numbers end with 1 or 2 must submit within June 29–July 10; with 3 or 4 within July 12–17; with 5 or 6 within July 20–24; with 7 or 8 within July 27–30; and with 9 or 0 within August 3–7.

Corporations may choose to submit their filings before the schedule assigned to their registration numbers. Those that will not be able to submit within schedule may submit late filings starting August 10 and will be subject to penalties.

The mailing date of the filings as reflected in the registry receipt of the courier will be recognized as the date of submission of filings. If submitted through the Philippine Postal Corp. (PhilPost), the date of receipt will be the date when PhilPost receives the files.

Old rules as indicated in the Securities Regulation Code will be followed for the basic components and reporting requirements of audited financial statements.

The SEC said these guidelines will be adopted during the period of filing after ECQ, “to provide adequate protection to the frontline service personnel…from undue exposure to the risk of COVID-19.”

The government has started easing quarantine measures over the weekend in an effort to oil the economy after about two months of shutdown. Metro Manila is under modified ECQ until the end of May.

Outsourced healthcare set to rise

May 18, 2020 | 12:08 am

By Jenina P. Ibañez
Reporter

THE healthcare outsourcing sector is seeing increased demand due to the coronavirus disease 2019 (COVID-19) pandemic, with the industry now making plans to boost automation systems as the global healthcare sector shifts to digital.

Healthcare Information Management Association of the Philippines (HIMAP) President Roger Salazar Jr. in an online interview on Wednesday said that most member companies are seeing growth in the industry post-lockdown, with some of the 70 members looking at a 10-15% growth.

The sector has been re-channeling voice teams to handle COVID-19 calls.

The industry, which had focused on medical transcription in the early 2000s, had shifted to higher-value medical outsourcing such as clinical operations, pharmacy benefit management, and clinical provider calls, among others.

“All of [the clients] are experiencing some level of growth, an uptick in their demand because of the nature of the pandemic at this time. That has led to repurposing some resources as a result of this to focus on the pandemic,” Mr. Salazar said.

He said the industry may now shift to further its technological tools, including analytics to assess and predict voice calls and improve screening for the healthcare needs of patients. The industry can also automate some processes in informing clients of their healthcare plans.

“One of the things we realized, because of the cost of healthcare — it keeps going up. People want to get more and more involved in deciding what kind of care they want. So by putting this information into their hands, whether we use technology like mobile phones or computers, they can see the options available for them, they can help decide what kind of healthcare they want,” he said.

He said that as senior citizens and other vulnerable groups stay at home to avoid infection, healthcare services will need to be more portable.

“We’ll have to provide more home service. We have to see what we can do to improve in terms of portability of the services we do for them rather than have them come to the clinics, because they will be exposed there. As a result we have to arrange for healthcare providers to come to see them, [resulting in] more house calls,” he said.

“As a result of this pandemic — it has really transformed a lot of the things we do. Digitalization of our business will increase. People will learn to order their medicines online and have it delivered. Telehealth, healthcare through video conferencing…that will take it to the next level: make it more interactive, more consultative,” he said.

He said there will be a shift in the healthcare outsourcing workforce, which will require retraining for more complex work.

In the meantime, Mr. Salazar said some members have reached out to the government to offer their telemedicine services for domestic healthcare.

“Especially in the provinces that have limited healthcare, maybe through telehealth, we’re able to help them in our own way,” he said.

He said the industry must prepare for a “new type of growth” that focuses on automation instead of traditional services, or on growth that does not just focus solely on the cost-advantages of the Philippines.

“The kind of growth will change as a result of this [pandemic] and we have to prepare our teams, our people to be able to handle the new growth. Retraining them will have to be very strong, because the needs of the market are changing. [The markets] will have their new normal, and we will also have our new normal,” he said.

NLEX Corp. ‘restarts’ construction activities

May 18, 2020 | 12:07 am

NLEX Corp. has resumed the construction of its major projects as the National Capital Region shifted to a more relaxed community quarantine.

“We have restarted the construction of major Build! Build! Build! projects. We resumed work on the almost complete Harbor Link C3-R10 expressway early this week,” NLEX Corp. Senior Vice-President for Communication Romulo S. Quimbo, Jr. told BusinessWorld in a phone message on Saturday.

He added that the company has also “restarted” the rehabilitation of the five-kilometer Candaba Viaduct in Pampanga.

The company will also resume “by this week” the expansion of the Subic Freeport Expressway (SFEx) and the construction of the North Luzon Expressway (NLEx) connector road.

Mr. Quimbo also said that there would be “slight adjustments” in the projects’ timelines to completion.

“Our planning teams are now confirming the delivery dates. We are always ready to accelerate the project delivery,” he added.

Public and private construction projects have been allowed to resume under the modified enhanced community quarantine (MECQ) but workers must be housed and fed onsite and observe physical distancing rules, among other requirements for construction work during the pandemic.

Public Works Secretary Mark A. Villar’s Department Order 35 sets rules for carrying out infrastructure projects during the coronavirus pandemic.

The elevated NLEX Harbor Link C3-R10 is the 2.6-kilometer segment that goes through the new Caloocan Interchange in C3 Road, Caloocan City to Radial Road 10, and Navotas City. This connects to the previously opened NLEX Harbor Link Segment 10 that traverses Karuhatan, Valenzuela City, Governor Pascual Avenue in Malabon City, and 5^th Avenue/C3 Road, Caloocan City.

The NLEX Harbor Link C3-R10 is intended to improve commuter mobility between airports, seaports, and growth corridors in the north and south.

NLEX opened the Malabon Exit of the Harbor Link C3-R10 expressway in February. The entire expressway was expected to be operational in March, but it did not materialize when President Rodrigo R. Duterte locked down the entire island of Luzon to contain the coronavirus pandemic.

Meanwhile, the NLEx connector road project is the eight-kilometer toll road linking the tail of NLEx Harbor Link Segment 10 at C3 Road, Caloocan City to Polytechnic University of the Philippines in Sta. Mesa, Manila. The project aims to provide an alternate route for trucks coming from the port area.

NLEX targets to open the expressway by December next year. Once operational, it is expected to cut travel time from NLEx to SLEx (South Luzon Expressway) to 20 minutes from the usual two hours. It will have a daily capacity of 35,000 motorists.

The SFEx capacity expansion project in Zambales involves the construction of two additional lanes, two new bridges at Jadjad and Argonaut, and a new tunnel on the 8.2-kilometer toll road. NLEX said last year that it was expecting to complete the P1.6-billion project by September this year.

NLEX Corp. is under Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Two unlicensed groups flagged by SEC

May 18, 2020 | 12:06 am

INVESTORS are reminded to be wary of investment-taking groups as the Securities and Exchange Commission (SEC) found two that run such businesses without regulatory authorization.

In separate advisories on its website, the SEC named Aquitek Food Trading (Aquitek) and Mr. Lifestyle E-Comm Company (Mr. Lifestyle) as examples of unlicensed groups offering investment opportunities without licenses.

Based on the SEC’s investigation, Aquitek operates from Laguna and claims to be a manufacturer of all natural healthy products. It offers “marketing plans” priced P599 and P2,000 that include getting Aquitek products and entitlement to bonuses from direct selling and recruitment.

“Aquitek lures the public to invest in their scheme through a referral system designed to encourage its members to recruit others in order to earn income instead of selling on the merits of the coffee or juice products… In the instant case, the scheme of Aquitek has the characteristics of a Pyramid scheme,” it said.

It added that since investors are not required to exert effort to generate income than by putting their money in Aquitek, the scheme qualifies as selling securities in the form of investment contracts, which in order to be legal must be authorized by the SEC.

“Per record of the commission, Aquitek is not registered with the commission as a corporation or partnership nor is it authorized to solicit investments from the public…,” it said.

Similarly, Mr. Lifestyle masks as an e-commerce business by offering packages of dietary supplements and beverages. The SEC said it found the company to be offering bonuses through recruitment of members, which it said is equivalent to selling securities.

Going through its records, the SEC said Mr. Lifestyle was formerly named Don Heraldo Mr. Lifestyle E-Comm Company. It is registered with the commission as a partnership, but it is not authorized to solicit investments as such activity requires a secondary license.

“The public is advised not to invest or stop investing in any investment scheme being offered by (Mr. Lifestyle) and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it,” it said.

The activities of both Aquitek and Mr. Lifestyle violate the Securities Regulation Code, and are punishable with a fine of up to P5 million, imprisonment of up to 21 years, or both.

The names of salesmen, brokers, dealers or agents behind the companies will also be reported to the Bureau of Internal Revenue for penalties. — Denise A. Valdez

In the midst of the pandemic, two PHL bars make it to Asia’s Best Bars list

May 18, 2020 | 12:06 am

YOU may not be able to visit them anytime soon, but two Philippine bars made it to the list of Asia’s 50 Best Bars which William Reed Business Media released via Facebook Live last week.

Considering the pandemic, the formerly grand party that would have launched the list was replaced instead with a webcast. Mark Sansom, Content Editor of Asia’s 50 Best Bars said, “Even though we don’t yet know when we will be able to share a few drinks together again, we can almost imagine how sweet the first few moments would be.”

It’s strange to think of bars when several cities are still under lockdown. “We decided that the hard work that the bars and their teams put in over the last 18 months deserves to be appreciated,” said Mr. Sansom. “Today’s list is not a celebration; the objective is one of recognition.”

Mr. Sansom also announced the launch of 50 Best for Recovery, which aims to raise money and awareness to help the hospitality industry get up after the pandemic.

“The hospitality world will come through this crisis. The bonds we’ve forged over the years are too strong to break. The community is too tight to allow a virus to come between us for long.”

The Philippines has two entries on the list this year. Coming in at 45 and 42, respectively, are The Back Room (at Shangri-La at The Fort), and The Curator (in Legazpi Village). The Curator also takes home the distinction of being the Best Bar in the Philippines for 2020. The World’s 50 Best Bars website goes on to say: “Third-wave coffee by day and kick-ass cocktails by night is a winning combination, judging by the popularity of this cool bar. Staff treat ingredients with the utmost respect, whether it’s coffee beans or small-batch spirits, attracting a young, up-for-it crowd of cocktail lovers and caffeine fiends.” (Read more about The Curator and other “hidden bars” at https://www.bworldonline.com/manilas-hidden-bars/.)

Jigger & Pony in Singapore earned the top spot at this year’s list. “Its fun-time ethos and relaxed style of hospitality is complemented by an excellent classic drinks list, as the bar goes about its business in a refreshingly old-school way,” said the list.

The complete list of Asia’s 50 Best Bars follows:

1. Jigger & Pony (Singapore)

2. The Old Man (Hong Kong, China)

3. Coa (Hong Kong, China)

4. Indulge Experimental Bistro (Taipei, Taiwan)

5. Atlas (Singapore)

6. Native (Singapore)

7. The Bamboo Bar at Mandarin Oriental (Bangkok, Thailand)

8. Manhattan (Singapore)

9. The SG Club (Tokyo, Japan)

10. Aha Saloon (Taipei, Taiwan)

11. Vesper (Bangkok, Thailand)

12. Sober Company (Shanghai, China)

13. Bar Mood (Taipei, Taiwan)

14. Bar Trigona (Kuala Lumpur, Malaysia)

15. Bar Benfiddich (Tokyo, Japan)

16. Quinary (Hong Kong, China)

17. Tippling Club (Singapore)

18. The Wise King (Hong Kong, China)

19. Speak Low (Shanghai, China)

20. High Five (Tokyo, Japan)

21. Bee’s Knees (Kyoto, Japan)

22. The Old Man (Singapore)

23. D.Bespoke (Singapore)

24. Tropic City (Bangkok, Thailand)

25. Gibson (Singapore)

26. Draft Land (Taipei, Taiwan)

27. Room By Le Kief (Taipei, Taiwan)

28. 8 1/2 Otto e Mezzo Bombana (Hong Kong, China)

29. Charles H (Seoul, South Korea)

30. 28 HongKong Street (Singapore)

31. Rabbit Hole (Bangkok, Thailand)

32. Nutmeg & Clove (Singapore)

33. Backstage Cocktail Bar (Bangkok, Thailand)

34. Caprice Bar (Hong Kong, China)

35. The Pontiac (Hong Kong, China)

36. Hope & Sesame (Guangzhou, China)

37. Junglebird (Kuala Lumpur, Malaysia)

38. The Odd Couple (Shanghai, China)

39. Bar Trench (Tokyo, Japan)

40. Sidecar (New Delhi, India)

41. Bar Orchard Ginza (Tokyo, Japan)

42. The Curator (Manila, Philippines)

43. Union Brasserie, Bakery & Bar (Jakarta, Indonesia)

44. Lobster Bar & Grill (Hong Kong, China)

45. The Back Room (Manila, Philippines)

46. MO Bar (Singapore)

47. Alice (Seoul, South Korea)

48. Coley (Kuala Lumpur, Malaysia)

49. Le Chamber (Seoul, South Korea)

50. Bar Cham (Seoul, South Korea)

— Joseph L. Garcia

Storytelling through the digital space

May 18, 2020 | 12:05 am

THE Philippine Educational Theater Association (PETA) revisits the tradition of storytelling, this time online.

Following the weekly online workshop series, Let’s Get Creative, and an online workshop for kids called Let’s Get Creative PLUS, PETA has launched Storytelling Sundays which showcases stories focusing on Filipino values for families during quarantine.

Performances are livestreamed on PETA’s official Facebook page and YouTube channel.

The first episode, which premiered on May 17, is a tribute to award-winning playwright and author Rene Villanueva (1954-2007). The session features the Palanca award-winning short story for children “Nemo, Ang Batang Papel,”told by Ian Segarra with shadow play animation by John Moran; and “Ang Mga Zimbragatzee ng Planetang Zing,”narrated by Norbs Portales with live creative sound by Ada Tayao and, illustrations by Mikou David.

“He was one of the key writers for Batibot, our version of Sesame Street,” PETA Artistic Director Maribel Legarda, who directed the premiering shows, said of Mr. Villanueva. “He was very involved with PETA and I think this would be a wonderful platform to be able to give tribute to this man who passed away too soon.”

The second episode of Storytelling Sundays on May 24 will feature Bodjie Pascua whom kids and most viewers know as Kuya Bodjie from the television series Batibot. Mr. Pascua will be reading Jeanette Patindol’s “Tight Times,” about how families cope during times of scarcity. Joining Mr. Pascua is the 10-year-old winner of the 2019 Lampara Storytelling Competition, Frances Villadarez, who will be reading Segundo Matias, Jr.’s “Sikat ang Mommy Ko!.”

The third episode, which will be held on May 31, will feature Felinda Bagas’ “Girl in a Box,” directed and performed by Ian Segarra.

To watch the storytelling sessions, visit PETA’s Facebook page www.facebook.com/petatheater and YouTube Channel www.youtube.com/petatheateronline. — MAPS

Investors remain upbeat on Ayala Corp.

May 18, 2020 | 12:05 am

By Lourdes O. Pilar
Researcher

IMPROVED investor sentiment made Ayala Corp. one of the most actively traded stock in the exchange last week after President Rodrigo R. Duterte’s apology to the Zobel brothers earlier this month.

Ayala Corp. was the fourth most actively traded stock with a total of 1.860 million shares worth P1.282 billion having exchanged hands on the trading floor during the trading week from May 11 to 15, data from the Philippine Stock Exchange showed.

Shares in Ayala Corp. closed at P670 apiece on Friday, down 4.8% on a week-on-week basis. Since the start of the year, the stock has fallen 13%.

“The upbeat momentum [last] week was driven by improved investor sentiment supported by President Rodrigo R. Duterte’s public apology after months of tirades over the company’s water concession agreement with the government,” Charlene Ericka P. Reyes, officer-in-charge of trading and research at First Resources Management and Securities Corp., said in an e-mail.

Earlier this month, Mr. Duterte apologized to the Zobel brothers and the group of Manuel V. Pangilinan for the “hurting words” he said against their companies in recent months. The apology was prompted by the businessmen’s assistance during the coronavirus disease 2019 (COVID-19) crisis.

Ayala Corp. Chairman Jaime Augusto Zobel de Ayala was among the first businessmen who responded to Mr. Duterte’s call to ease the plight of workers during the crisis.

Late last year, Mr. Duterte threatened to file economic sabotage cases against east zone concessionaire Manila Water Co., Inc., in which the Ayalas hold a 51.4% stake, and Maynilad Water Services Inc., the company led by Mr. Pangilinan’s holding firm which serves Metro Manila’s west zone and nearby provinces.

“I think among the conglomerates Ayala Corp. was the least affected with the drop in their annual and quarterly report,” said Jeff Radley C. See, analyst at Mercantile Securities Corp., in a separate e-mail.

The oldest conglomerate in the country’s net income attributable to owners of the parent company fell by 17% to P6.66 billion during the first three months of 2020 from P8.03 billion in the same period reported a year ago as the COVID-19 pandemic pulled down its property, banking and industrial business segments.

“Looking forward, the company will be regaining its momentum once operation will be back to normal starting end of second quarter. The move by Ayala Corp. to focus on other companies such as hospital and energy was a good move since those industries are the ones resilient to this pandemic,” Mr. See said.

“What we expect with Ayala Corp. is to map out a new normal direction to survive for now due to the volatile situation caused by COVID-19,” Summit Securities, Inc. President Harry G. Liu said in a Viber message.

First Resources’ Ms. Reyes, meanwhile, expects weaker earnings for the second quarter attributed to a longer enhanced community quarantine implementation.

“With the diversified business of Ayala Corp., the coronavirus pandemic is expected to drag its earnings performance with (1) decreased rental income and lower foot traffic from its malls, and hotels; (2) decreased recurring income from its office business segment; (3) lower residential sales and delayed project launches this year; and (4) large loan loss provisions for its banking segment tempering its bottom line,” Ms. Reyes said.

This week, Ms. Reyes gave Ayala Corp. an immediate support level at P660 followed by the next-level support at P600 with an immediate resistance at P709, followed by a resistance at P762.

For Mr. See, he pegged the stock’s support levels at P675, P600, and P507, while resistance levels are at P705, P750, and P856.

Summit Securities’ Mr. Liu placed Ayala Corp.’s support between P550 and P600 and resistance between P700 and P750.

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