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Uplifting the arts in challenging times

By Michelle Anne P. Soliman, Reporter

Cinemas, theaters, concert halls, and museums have all closed their doors since Luzon was placed on enhanced community quarantine due to the COVID-19 pandemic two weeks ago. Show openings, gigs, workshops, regional art festivals and conferences have either been postponed or canceled.

Since the government directive has restricted public movement to essential activities such as buying food, medicine, and bank transactions, it has also led to an indefinite loss of livelihood and income for people working in most industries, including the arts and culture sector.

THE INITIATIVE
A team of artists — made up of JK Anicoche, Laura Cabochan, Jopie Sanchez, and members of Komunidad, Sipat Lawin, and the Concerned Artists of the Philippines — realized the urgency of helping art freelancers, performers, artistic coaches and educators, and cultural workers. The team launched the #CreativeAidPH initiative, in collaboration with Nayong Filipino Foundation Inc. (NFPI).

“[The initiative] rose from the urgency of the situation, but at the same time foreseeing possible ways on sustainability,” Mr. Anicoche told BusinessWorld in a Facebook Messenger video call.

“Summer is coming. And summertime is the time when nakakabawi ang mga artists (when artists can make up for things) because it’s the workshop season, and events season. Then suddenly, the March to April [events] biglang nawala (suddenly vanished),” Mr. Anicoche said. “When we talk about arts, it’s not just about performers. It’s also about the technicians, teachers, [and] scholars behind it.”

The initiative’s first step was to gather data through a “Survey for Cultural Workers” online to map out losses and specific needs of cultural workers and creatives. The survey, which ran from March 17 and closed on March 23, gathered 499 responses.

#CreativeAidPH team member Laura Cabochan noted that respondents reported a loss of income and loss of livelihood. She cited that the former refers to cancelation of payments for canceled projects, while the latter refers to downtime from work or projects.

One respondent (respondents’ names and profiles have been withheld as data analysis is ongoing) noted that the quarantine affected their show dates. “I have technically finished my work but I don’t think I will get paid in full because the work will not be staged.” The respondent added that teaching and attending classes, and accepting gigs have stopped in the meantime.

Another respondent wrote that as a freelance artist, their income depends on art-related events.

“The situation that the country is dealing with right now [hampers] my activities to earn money. I can only think of opening digital commission artworks as an alternative way to earn possible income in the meantime, but to be honest it is really not enough to compensate for my usual earnings from events,” the freelance artist wrote.

Some artists have found an alternative through accepting commission works or hosting live performances and workshops online while in their homes.

Respondents have also noted that they are seeking health benefits and financial support from the government in order to support themselves and their families.

PLAN OF ACTION
The team noted that the gathered data will help them provide information for partner institutions in crafting specific programs.

“Once we have a complete report, we intend to submit it to the Arts and Culture Committee of the League of Corporate Foundations. Aside from that, we hope to send it to other arts organizations,” Ms. Cabochan wrote in subsequent correspondence via Facebook Messenger.

She added that in the works is the creation of a Facebook page that will serve as a venue for creatives to communicate and share relevant information and resources.

While the team behind #CreativeAidPH and the NFPI are currently analyzing the data, the National Committee on Cinema of the National Commission for Culture and the Arts (NCCA) has submitted a position paper for a disaster fund mechanism to aid the arts and culture industry. Endorsed by Subcommission on the Arts Head Roland B. Tolentino, the position paper is currently with the NCCA Board of Commissioners for feedback.

Ramon Alberto Garilao, secretary of the National Committee on Cinema, told BusinessWorld via Facebook Messenger that the committee “has been discussing ways to help alleviate the plight of our artists and cultural workers” since the implementation of the enhanced community quarantine.

“Our job is to identify the needs of our sectors and create proposals/recommendations to help address their concerns. Today, as we all combat the COVID-19 pandemic, we see the urgent need of the cultural and creative industry for assistance (in all forms: financial, platforms to continue creating art, promotions, publicity, etc.),” Mr. Garilao wrote.

The position paper presented local and international data, including appeals posted on social media by Mr. Anicoche and the Artists Welfare Project, Inc. (AWPI) to support and illustrate the urgency.

The letter’s recommendations of priorities include: a realignment of budget and creation of subsidy programs for those affected by the crisis; extending deadlines of grantees; spearhead initiatives to uplift the cultural and creative sector; and establishing a trust fund to ensure financial security.

“I believe this sporadic action from all involved parties (individuals, groups, etc.) is a good indication that our artists and cultural workers are becoming an active part of government policy-making,” Mr. Garilao wrote.

As of March 29, Mr. Tolentino wrote in an e-mail to BusinessWorld that “there is [as] yet [no] feedback received from the NCCA Board [of Commissioners].”

GT Capital net income up 54%

EARNINGS of GT Capital Holdings, Inc. (GT Capital) surged 54% to P20.31 billion in 2019, driven mostly by gains from the redemption of its shares in real estate subsidiary Property Company of Friends, Inc. (PCFI).

In a presentation to stockholders on its website, the Ty-led conglomerate said its growth last year was supported by double-digit expansions across its business units.

GT Capital saw a P3.58 billion total income from the redemption of its investment in PCFI. Minus this and the P1.28 billion share in the non-recurring gain of its stake in Metro Pacific Investments Corp. (MPIC), and adding the P330 million amortization of fair value adjustments, GT Capital’s core net income last year is 22% higher at P15.78 billion.

The company’s total revenues grew 8% to P222.9 billion, largely driven by its banking and automotive segments.

By business units, banking unit Metropolitan Bank & Trust Co. (Metrobank) added the biggest chunk to the pie with a net income contribution of P28.06 billion, up 28% from a year ago.

In a regulatory filing, GT Capital attributed the growth of Metrobank to the expansion of net interest margin to 3.84%, strong trading and forex gains, and a 6.7% growth in loans and receivables.

Automotive unit Toyota Motor Philippines Corp. (TMP) booked the second biggest net income contribution at P9.08 billion, higher by 15% from a year ago. The increase was traced to a 6% revenue growth to P168.62 billion, primarily due to larger sales volume, price increases and higher export and spare parts profit.

The company’s stake in MPIC generated P23.86 billion in net income contribution, a 69% jump from the previous year. This is due to revenue increases in MPIC’s energy, toll roads and hospital businesses.

Property unit Federal Land, Inc. (FLI) booked a net income of P1.61 billion, 56% up from a year ago. This is largely due to “higher revenues arising from faster percentage-of-completion coupled with lower cost adjustments.”

Life and non-life insurance unit Philippine AXA Life Insurance Corp. recorded a net income growth of 23% to P2.37 billion, which it said was due to the improvement in premium margins, increase in asset management fees and higher investment income.

For 2020, GT Capital is allocating P28.5-30.5 billion for capital expenditures, to be sourced from a mix of internally generated funds and debts.

Metrobank will take P3-5 billion for information technology (IT) investments. FLI will have P7.4 billion for land banking, project development and IT investments. TMP will get P4.9 billion for the introduction of a new model, upgrading of specs and special projects. AXA will have P300 million for refurbishments, computer and IT upgrade, and office equipment.

The parent company will have P12 billion for acquisitions and other investments. The remainder will be divided among Toyota Manila Bay Corp., Toyota Financial Services Philippines Corp. and Sumisho Motor Finance Corp.

Shares in GT Capital at the stock exchange increased 17 centavos or 4.36% to P407 each yesterday. — Denise A. Valdez

Treasury turns down all bids for 35-day T-bills as rates increase

THE GOVERNMENT rejected all bids for the one-month Treasury bills (T-bills) it auctioned off on Tuesday as investors continue to ask for higher yields amid uncertainties caused by the coronavirus disease 2019 (COVID-19) pandemic.

The Bureau of the Treasury (BTr) rejected all bids for the 35-day T-bills it offered yesterday even as total tenders reached P29.617 billion, nearly twice as much as the P15 billion it had planned to raise.

Had it made a full award, the reintroduced 35-day tenor would have fetched an average rate of 3.39% with the highest bid at 3.5%, both above the 3.098% rate at the secondary market yesterday.

National Treasurer Rosalia V. de Leon said the BTr turned down all bids as the rates investors were asking for were higher than the PHP Bloomberg Valuation (BVAL) Service yields.

Despite the four consecutive full rejections in previous auctions since the enhanced community quarantine in Luzon started, Ms. De Leon said the government can still support its funding requirements despite an expected surge due to COVID-19-related expenses.

“Plenty of ammo — that’s why we rejected,” the official told reporters via Viber message yesterday.

Meanwhile, a bond trader said the result of the auction was expected due to high rates, adding that the Treasury seemed to be funded as it just received on Monday the payment for P300 billion worth of three-month government securities the central bank had agreed to buy last week at a zero interest rate.

“Also, not much demand given that time deposit rates for big accounts are high at mom (month on month). We might expect better demand for bills once BSP’s (Bangko Sentral ng Pilipinas) reserve cut materializes,” the trader added.

The trader said the trend of high rates and full rejections will likely continue in the next auctions “until banks can actually feel liquidity is coming in.”

The trader explained that most lenders are holding on to their cash in the meantime amid a spike in withdrawals, since the date for lifting the enhanced community quarantine (ECQ) will remain uncertain.

The BSP announced last week a cut in universal and commercial banks’ reserve requirement ratio (RRR) by 200 basis points (bps) to 12% effective Friday to release more liquidity. The cut is expected to free up some P180-200 billion in fresh cash into the financial system.

BSP Governor Benjamin E. Diokno has been authorized by the Monetary Board to cut banks’ RRR by a total of 400 bps this year. The central bank last week said reductions in the reserve ratios of other banks and nonbank financial institutions are also being studied.

Luzon is under a month-long ECQ until April 12 to contain and slow the spread of the virus which infected 2,084 and killed 88 in the country as of Tuesday. Officials have said the quarantine period can be extended or shortened as needed.

The Treasury has set a P190-billion local borrowing program for April, broken down into P130 billion in T-bills and P60 billion in Treasury bonds.

The government plans to raise P1.4 trillion this year from local and foreign lenders to plug its budget deficit, which is capped at 3.2% of gross domestic product. — B.M. Laforga

What a drag! Self-isolating Aussie queen takes routine online

SYDNEY — An Australian drag queen has shifted her performances from stage to personal screens during coronavirus lockdown in Sydney to ensure she’s not all dressed up with nowhere to go.

Penny Tration — born Daniel Floyd — is a professional artist who has appeared on radio and TV shows. She has also entertained at shopping malls and corporate functions and, when not in drag, worked for an airline for 12 years that only recently let her go as the global virus outbreak grounded flights.

Like many fellow Australians, Tration is in 14 days of mandatory self-isolation as she was on an overseas holiday. That hasn’t stopped her from attracting a global audience by live streaming her show, Tration in Isolation, via Facebook every Friday and Saturday night

“I’m grounded because of the coronavirus. My airline has stopped all international flights from the 30th of this month (March),” Tration told Reuters via webcam.

“Now, with the airline not flying, we’re all on stand down. No pay. No prospect of when we will go back,” she said, adding that some viewers sent her donations at the end of the show.

During the largely unrehearsed show, Tration sings, dances, and mixes herself cocktails while answering questions from viewers as they write in.

Even when isolation ends in a few days, Tration says she is not venturing outside anywhere too soon.

“I’m not going out until this virus is under control and I know that my actions can’t impact anyone else. I think, if other people knew this, when this was all kicking off, they would have done the same,” she said. — Reuters

SEC to firms: use digital platform

THE SECURITIES and Exchange Commission (SEC) is encouraging the public to make use of its digital platform for corporate registration while its physical office is closed due to the Luzon quarantine.

In a statement yesterday, the corporate regulator said it is welcoming applications for registration of corporations and partnerships through its Company Registration System (CRS).

The SEC CRS is a digital platform that allows applicants to give their proposed company name, generate articles of incorporation, bylaws and other company registration documents, and upload all required documents for processing, review and approval through the system.

The SEC said at least 2,500 applications have already been processed since Luzon was put on lockdown mid-March. Of this, 314 were already promoted for the generation of their certificates of registration. Some 1,014 have been assessed for payment while the remaining 1,172 are being asked to submit additional requirements.

“We are working to ensure the CRS will remain accessible in order to facilitate the registration of companies while the enhanced community quarantine remains in force,” SEC Chairperson Emilio B. Aquino said in the statement.

The SEC CRS is accessible by logging on to https://crs.sec.gov.ph/.

Aside from new corporate registrations, the SEC is also welcoming name verification appeals, applications for monitoring clearance for amendments to the articles of incorporation and bylaws, and applications for increase or decrease of capital stock and merger and consolidation.

“We will continue finding ways to limit the disruption in our everyday operations and to ensure our stakeholders can cope with the impact of the COVID-19 pandemic,” Mr. Aquino said.

Luzon is under enhanced community quarantine until midnight of April 13 due to the coronavirus disease 2019 (COVID-19) pandemic. — Denise A. Valdez

Security Bank seeks to raise P50B via LTNCDs

SECURITY BANK Corp. is looking to raise P50 billion via long- term negotiable certificate of deposit (LTNCD) which will be used to lengthen the maturity of its liabilities.

In a regulatory filing to the local bourse on Tuesday, Security Bank said its board of directors approved on Tuesday the issuance of P50-billion LTNCDs now up for central bank’s approval.

“The objective is to lengthen our deposit liabilities. We always want to have a portion of our deposit liabilities go beyond a certain tenor, so this is one of those activities. And the proceeds will also be in preparation for future growth. Admittedly, the conditions are a bit different. We are just getting ready for when things normalize,” Security Bank Executive Vice-President and Treasurer Raul Martin A. Pedro told BusinessWorld in a phone interview on Tuesday.

Mr. Pedro said the bank has yet to set a target date on the issuance of the first tranche of the program as this will be subject to market conditions.

“The market conditions aren’t very clear at this moment. We’d like to see normalization soon enough. When conditions are normal, definitely we’ll try to go for it,” he said.

He said the bank has yet to determine the tenor for the issue, but will likely be around 5.5 years, based on the bank’s previous LTNCD issuances.

In February, the bank raised P2.07 billion worth of 5.5-year LTNCDs out of its P20-billion program set to expire in May.

“We still have some room to issue off that program but really, the market conditions are a bit unclear, so I’m not certain that we’ll be able to finish what has been approved by May. So what we did was already to seek the approval to issue up to P50 billion,” Mr. Pedro said on Tuesday.

So far, he said the bank has raised more than P11 billion from its current P20-billion program.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

Security Bank saw its net earnings jump 17% in 2019 to P10.1 billion on the back of wider margins and robust growth in retail lending.

Shares in Security Bank went up P5.50 or 5.42% to end at P107 apiece on Tuesday. — Beatrice M. Laforga

Elton John’s coronavirus ‘living room’ show raises $8 million for US charities

LOS ANGELES — A weekend benefit broadcast featuring recording stars performing live music online from home raised nearly $8 million for two charities serving first responders and Americans facing economic hardship amid the coronavirus crisis, sponsors said on Monday.

The Sunday night show, hosted by Elton John from his kitchen, featured Billie Eilish, the Backstreet Boys, Lizzo, Alicia Keys, Mariah Carey, Lady Gaga and Tim McGraw — all appearing by way of smartphones, home cameras, or online platforms.

The Fox broadcast network carried the hour-long show, dubbed the iHeart Living Room Concert for America, live without commercial interruption, drawing 8.7 million television viewers, Fox said.

The songs were interspersed with short personal stories from nurses, doctors, truckers, grocery staff, and other essential workers as millions of Americans entered a second full week subjected to stay-at-home orders designed to curb the spread of the coronavirus that causes COVID-19.

The concert, also broadcast on iHeart radio stations nationwide, urged listeners to donate to two charities, Feeding America and First Responders Children’s Foundation.

As of Monday evening, the benefit special had raised nearly $8 million for the two organizations, including $500,000 donated by household products giant Procter & Gamble and a matching sum from Fox.

YouTube, which also made a donation in support of the cause, will continue streaming the benefit show through Wednesday on iHeart Radio’s YouTube channel. — Reuters

Nickel Asia units suspend operations

TWO SUBSIDIARIES of mining company Nickel Asia Corp. (NAC) announced the temporary suspension of their mining operations, amid the coronavirus disease 2019 (COVID-19) pandemic.

In a statement yesterday, Surigao Del Norte based mining companies Taganito Mining Corp. and Hinatuan Mining Corp. have temporarily suspended their mining and mineral processing plant operations, in accordance with the executive order issued by Governor Francisco T. Matugas on March 28.

Effective April 1, the executive order issued by the Surigao Del Norte local government will also temporarily ban the entry of foreign vessels except for those carrying basic necessities.

Nickel Asia projected that the temporary suspension may have adverse effects on its two subsidiaries depending on its duration. It may affect their revenues for the second quarter of this year and disturb the schedule of ore shipments for the two mining companies.

The two mining subsidiaries are implementing necessary measures to protect their employees. Both companies also assured the public that adjustments will be made to lessen the effects of the suspension.

Taganito and Hinatuan accounted for 59% of Nickel Asia’s total nickel ore shipments for 2019. — Revin Mikhael D. Ochave

Stuff to do at home (04/01/20)

One Night Stand cabaret

One Night Stand, in partnership with Open House, presents an online concert called Bedroom Voices on April 1, 8 p.m. Hosted by Joaquin Pedro Valdes and Missy Maramara, it features Reb Atadero, Tanya Manalang, Kim Molina, Jerald Napoles, Rissey Reyes, Vic Robinson, with Red Concepcion, and Aynrand Ferrer. For more information, visit https://www.facebook.com/onenightstandcabaret/. The project aims to help members of the performing arts community that have been displaced by COVID-19. To donate, visit http://bit.ly/DonateOpenHouse.

Educational TV shows return to ABS-CBN

ABS-CBN brings back 1990s educational TV shows every Saturday. Sineskwela (8:30 a.m.) explains topics on science, Bayani (9 a.m.) is about historical figures and events, and Hiraya Manawari (9:30 a.m.) focuses on values.

Cirque Du Soleil online

Enjoy free 60-minute specials from shows such as Kurios — Cabinet of Curiosities, O, and Luzia. To watch, visit https://www.cirquedusoleil.com/cirqueconnect.

Ayala Museum online

Continue learning at home with the Ayala Museum’s resources available online. Enjoy previous exhibitions and performances, coloring pages, and playlists. Visit here.

E-books for kids

Expand your kids’ library at home through the BuriBooks app. Titles include books from publisher Adarna House, reviewers, and Filipino textbooks. Access the app via iOS, Android, or a web browser. Sign-up via https://buribooks.com/. Enjoy it free for 30 days.

National Gallery of Victoria virtual tours

The National Gallery of Victoria has developed several virtual tours. Audiences can view exhibitions such as Companionship In The Age Of Loneliness of New York-based artist Brian Donnelly, a.k.a. KAWS; and the world premiere of Crossing Lines, featuring the works of Keith Haring and Jean-Michel Basquiat. Visit https://www.ngv.vic.gov.au/channel/.

Banks’ foreign currency loans inch up on firms’ capital requirements

FOREIGN CURRENCY loans disbursed by local banks inched up in the last quarter of 2019 on the back of borrowing firms’ higher working capital requirements.

Outstanding loans by foreign currency deposit units (FCDU) of banks inched up to $18 billion as of end-December 2019, up by 1.2% from the end-June 2019 level of $17.8 billion, according to data from the Bangko Sentral ng Pilipinas (BSP).

FCDU loans also climbed by 8.7% year-on-year from the $16.1 billion logged at end-December 2018.

“The growth in loans may be attributed to borrowing firms’ higher working capital requirements,” the central bank said on Tuesday.

FCDUs are central bank-approved bank units which performs transactions involving foreign currencies, mainly by accepting deposits and handing out loans.

According to BSP data, the biggest chunk of outstanding loans went to power generation companies (17.8%); merchandise and service exporters (14%); public utility firms (8.1%); towing, tanker, trucking, forwarding, personal and other industries (5.9%); and producers/manufacturers, including oil companies (5.2%).

Gross credit disbursed during the October to December period dropped 23.5% to $13.5 billion due to a decrease in funding requirements of a foreign bank unit.

Likewise, loan repayments went down 22.9% which resulted in overall net disbursements.

BSP data showed that FCDU deposit liabilities stood at $41.1 billion as of end-December 2019, unchanged from its third- quarter level.

Sy group allots P170M to fight virus

THE SM GROUP is increasing its donations to more than P170 million to aid the country in fighting the spread of the coronavirus disease 2019 (COVID-19).

In a statement yesterday, the Sy-led group said the fund will prioritize the procurement of personal protective equipment (PPEs) for health workers, acquisition of locally developed test kits to widen testing, and purchase of ventilators for hospitals with patients in severe conditions.

The SM Group earlier announced a P100-million allocation to support COVID-19 mitigation efforts. It said it has so far distributed PPEs in hospitals such as the Philippine General Hospital, Lung Center of the Philippines and Jose N. Rodriguez Memorial Hospital.

Other major government hospitals have also been recipients of the group’s assistance, such as the Research Institute for Tropical Medicine, National Kidney and Transplant Institute, San Lazaro Hospital, East Avenue Medical Center and Philippine Heart Center.

Aside from those located in Metro Manila, the SM Group said it is also sending PPEs to hospitals in Rizal, Pampanga, Bataan, Quezon, Pangasinan, Catanduanes, Cebu, Iloilo, Samar, Tacloban, Surigao del Sur, Cagayan de Oro, Davao, Marawi and Zamboanga, among others.

“SM has committed to be of service to the Filipino public, its hospitals, and its government, in ensuring that we all contain and overcome the COVID-19 crisis together,” it said.

SM Investments Corp., the holding family of the SM Group, booked a 20% jump in earnings last year to P44.6 billion. Its shares at the stock exchange gained 48 centavos or 6.23% to P818 apiece yesterday. — Denise A. Valdez

Growth forecasts for select East Asia and Pacific economies

Growth forecasts for select East Asia and Pacific economies