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Toyota suspends operations

By Jenina P. Ibañez, Reporter

TOYOTA Motor Philippines Corp. (TMP), the largest automotive company in the country, has suspended its operations amid the Luzon-wide enhanced community quarantine.

The move is in line with the decision of global carmaker Toyota Motor Corp. to suspend operations in several vehicle plants, including those in Europe and Asia, as the new coronavirus disease 2019 (COVID-19) impacts businesses worldwide.

Philippine operations will remain suspended until mid-April, as the enhanced community quarantine is expected to be lifted on April 13.

“We follow government guidelines,” TMP First Vice-President Rommel R. Gutierrez said in a mobile message.

“For now, non-production team members follow a work-from-home scheme,” he said.

TMP head office and manufacturing plant are inside the 82-hectare Toyota Special Economic Zone (TSEZ) in Santa Rosa City, Laguna.

President Rodrigo R. Duterte on Monday announced an enhanced community quarantine on Luzon in response to the COVID-19, enforcing strict home quarantine and suspending public transportation.

The quarantine limits the private establishments that may remain open, sparing those that provide basic necessities such as supermarkets, hospitals, pharmacies, and banks. Business process outsourcing and export-oriented companies may also remain operational under minimized workforce arrangements.

Toyota halted operations at its plants in Britain and Poland on Wednesday, while operations in the Czech Republic and Turkey will also be suspended this week. Operations in Malaysia are suspended from next Monday until the end of March.

Toyota on Thursday also announced temporary suspension of North American automobile and components plants production, including facilities in the USA, Canada and Mexico, from March 23-24.

“This action is being taken to help ensure the health and safety of our employees, and due to an anticipated decline in market demand related to the economic impact of the COVID-19 pandemic,” the statement said.

“We will conduct a thorough cleaning at all of our manufacturing facilities during the shutdown. This also will allow Toyota employees to prepare and adjust family plans in relation to regional directives to close schools,” it added.

Ayalas’ IMI on ‘partial’ shutdown

AYALA-LED Integrated Micro-Electronics, Inc. (IMI) is suspending work at some of its facilities in Luzon due to the government’s month-long lockdown to contain the spread of the new coronavirus.

In a disclosure to the stock exchange yesterday, the electronics manufacturer said it will be implementing a “partial shutdown” of its plants from March 17 to April 13.

However, it will still be observing a skeletal workforce system in “critical business operations” in Luzon.

“Given the Philippine government’s approval for export-oriented companies to remain operational, IMI is collaborating with units in the local and national levels to explore the ability to maintain the appropriate production levels within its factories,” it said.

“IMI will continue to ensure the health, safety and welfare of its employees and will abide by the guidelines mandated by government,” it added.

Among the authorized persons to leave their residences during enhanced community quarantine are personnels of “export-oriented businesses,” based on the guidelines by the Joint Task Force Corona Virus Shield released Wednesday.

IMI is an exporter of electronic materials such as printed circuit board assembly, flip chip assemblies, electronic sub-assemblies, box build products and enclosure system. It has factories in the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Mexico, Serbia, the United Kingdom and the United States.

Before the Luzon-wide quarantine to fight the rising cases of coronavirus disease 2019 (COVID-19) in the Philippines, IMI’s facilities in China have shut down in late January when the country was hit with the outbreak.

IMI posted a net loss of $7.78 million in 2019, a turnaround from a net profit of $47.19 million a year ago, due to lower revenues from a declining market environment.

Shares in IMI at the stock exchange lost 82 centavos or 19.52% to P3.38 each on Thursday. — Denise A. Valdez

BPO firms try to stay open after quarantine

BUSINESS process outsourcing (BPO) companies are racing to comply with requirements to remain operational under minimal workforce arrangements amid the enhanced community quarantine in Luzon.

The country’s business process outsourcing group advised its member companies to continue operations under the conditions outlined by the government.

In a statement on Thursday, the Information Technology and Business Process Association of the Philippines (IBPAP) said it has circulated advisories released by the labor and transportation departments and the Interagency Task Force for the Management of Emerging Infectious Disease to member companies.

“These guidelines allow our sector to be more agile despite the restrictions imposed by the enhanced community quarantine — catering to the needs of our people, clients, and other stakeholders while taking preventive measures to protect them from COVID-19,” IBPAP Chief Executive Officer Rey C. Untal said.

President Rodrigo R. Duterte on Monday announced a month-long enhanced community quarantine on Luzon, enforcing strict home quarantine and suspending public transportation.

In addition to companies that provide basic necessities, business process outsourcing and export-oriented companies are allowed to remain operational under minimized workforce arrangements, and on the condition that the companies apply social distancing measures and provide temporary accommodation.

These arrangements need to be set up by March 20, according to a memorandum from the Office of the President released on Wednesday.

Concentrix Philippines, in an e-mailed response to questions, said on Thursday that the suspension of public transport has disrupted the mobility of majority of staff who rely on the services to reach work.

“We have various offices in Luzon that were all impacted,” it said.

The company said that a work-from-home model is “highly unusual” for the outsourcing industry, as its operations require complex tools and high-level data security.

“But we are working very fast with our staff and clients on enabling the work-at-home set up for those who are eligible,” it said.

Concentrix is working on giving the remaining on-site staff temporary accommodations, either in their offices or in nearby hotels.

The company is also releasing P1 billion in temporary support for the staff, including advanced provision of pro-rated 13th month pay, a zero-interest calamity loan for medical, house rental, utilities, and tuition fee expenses, and salary advances for Luzon staff who are unable to go to work.

Teleperformance Philippines in a statement on Wednesday said that the company is offering on-site accommodation, meals, and transport for as long as it is allowed.

The company is also releasing a portion of 13th month pay, offered enhanced premiums for on-site staff, and assured staff of access to health maintenance organization services.

Employees who are unable to report to work were advised to stay home.

Transcom Asia Philippines on Monday suspended its Metro Manila operations, and released pay in advance of two weeks to employees. The company said it will be “ready to resume work immediately within the given parameters.”

Accenture Philippines and Telus International Philippines declined to comment. — Jenina P. Ibañez

DTI ensures free movement of cargo

THE Department of Trade and Industry (DTI) released its memorandum ensuring the free movement of cargo amid the enhanced community quarantine in Luzon.

DTI said in a memorandum on Thursday that the free movement covers all types of cargo, whether food or non-food, in entire Luzon. Earlier reports said that non-food items had been barred at checkpoints.

“If subjected to random inspection (with cargo before delivery or empties after delivery), the movement of cargoes shall not be delayed, upon presentation of the cargo manifest or delivery receipt indicating the destination, nature and quantity of the loaded goods/cargoes,” the memorandum said.

As enterprises that manufacture food, essential hygiene products, medicine, and medical supplies are allowed to continue operations, the distribution and logistics operations supporting these may continue. This includes cargo handling, warehousing, trucking, and port operations.

The workforce at establishments in operation must present a valid company ID card, proof of residence, and certification of employment at checkpoints.

An official ID will be issued by the DTI, and must be presented at checkpoints starting on March 22, unless extended.

Export and business process outsourcing operations are allowed to continue under minimal staffing. Equipment transfer for work from home arrangements and movement of people arranging lodging for employees in these companies are allowed until March 20.

A copy of the memorandum circular will be presented to the Philippine National Police and Local Government Units at checkpoints.

The DTI in a separate memorandum is also limiting the sale and purchase of a set of goods to a quantity that meets their needs of up to seven days. These goods include face masks, medical devices, alcohol, hand sanitizers, and other disinfectants.

DTI also set limits to disinfectant alcohol, hand sanitizer disinfecting liquids, bath soap, toilet paper, face masks, locally produced instant noodles, locally produced canned sardines, canned regular milk, milk in sachet, instant coffee loaf bread, and mineral water.

The memorandum takes effect immediately. — Jenina P. Ibañez

Firms extend more support amid virus

MORE companies are giving back amid the Luzon-wide lockdown being implemented due to a new coronavirus disease.

Jollibee Foods Corp. told the stock exchange on Thursday that it was donating P100 million-worth of food products to health workers and checkpoint personnel.

The homegrown food giant is also allocating an emergency response fund amounting to P1 billion for its employees.

Meanwhile, Metropolitan Bank & Trust Co. and GT Capital Holdings, Inc. said they will provide assistance to their customers, employees, and partners.

“[Also], a pledge of a P200 million-fund will go towards initiatives that directly support the fight against the virus,” they said in a statement.

Fruitas Holdings, Inc. said it is donating 1,000 bottles of fresh buko juice daily to the frontliners battling the virus.

Cebu Landmasters, Inc. said it will provide additional financial support to its 5,000 construction workers in Cebu, Mandaue, Mactan, Davao, Cagayan de Oro, Dumaguete, Bacolod, Iloilo, Bohol and Ormoc as business activities continue in the said areas.

For its part, PayMaya Philippines, Inc. said it has partnered with the Philippine Red Cross to allow direct donations from any PayMaya Account via QR to the humanitarian organization.

San Miguel Corp. said it will distribute Nutribun, its vitamin-packed bread product, to charitable groups and critical communities in the capital. The company continues to deliver canned food, coffee and biscuits to local government units, checkpoints and hospitals within the metro.

GMA Network, Inc. said all its employees will receive their full salaries and the cash equivalent of their rice benefits. — Arjay L. Balinbin

AC Energy merges local and overseas entities

AYALA-LED AC Energy, Inc. is transferring its stake in renewable energy projects abroad to its Philippine-listed unit in exchange for more shares in the latter.

AC Energy Philippines, Inc. (ACEPH) said on Thursday that its board had agreed to inject additional primary shares to its parent company, which will own 85% of the former, in exchange for the latter’s shares in its international renewables unit, Presage Corp.

“This transaction will firmly establish the company as Ayala’s energy platform both in the Philippines and around the region,” AC Energy Chairman Fernando Zobel de Ayala said in a statement.

The combined platform is valued at approximately P97 billion with a perceived attributable capacity of around 1,500 megawatts (MW) in operating and under-construction power plant projects, 60% of which are renewables.

“The company shall continue to focus on renewables expansion, as we move towards our 2025 goal of reaching 5 GW (gigawatts) of renewables capacity,” AC Energy President and Chief Executive Officer Eric T. Francia said.

The listed firm said the deal is expected to close within the year.

Meanwhile, ACEPH’s board agreed to change the company name to AC Energy Corp. It is set to increase the energy platform’s authorized capital stock by P24 billion. It also approved a $200-million potential investment in the 160-MW Balaoi wind project in Pagudpud, Ilocos Norte, with partner UPC Renewables, which runs wind and solar projects globally.

The company is set to invest $100 million in new technologies and a renewable energy laboratory project in Mariveles, Bataan. — Adam J. Ang

SBS founder, chairman Sytengco dies

Necisto U. Sytengco, Chairman of SBS Philippines Corporation

NECISTO U. Sytengco, founder and chairman of chemical trading company SBS Philippines Corp., had passed away.

The company told the public of his death through a regulatory filing to the stock exchange on Wednesday.

Mr. Sytengco was chairman of the board of SBS at the time of his death. He built the company in the 1970s and served as its president from its incorporation in July 2001 until January 2016. He became chairman in March 2015.

Forbes named Mr. Sytengco the 39th richest man in the Philippines last year with a net worth of $210 million (about P10.75 billion) as of September 2019.

SBS was originally a single proprietorship merchandising firm that dealt with the import-wholesale trade of chemicals and other products. Mr. Sytengco led its growth and transformation. — Denise A. Valdez

LT Group earnings hit post-listing record

LT GROUP, Inc. reported record earnings of P23.12 billion in 2019, the highest since its re-initial public offering seven years ago.

In a statement yesterday, the holding firm of taipan Lucio C. Tan said its attributable net income last year was 43% higher from the P16.19 billion it recorded in 2018.

This is fueled by the robust growth in income across its businesses: P15.56 billion or 67% from its tobacco segment, P5.57 billion or 24% from its banking segment, P896 million or 4% from its property segment, P667 million or 3% from its spirits segment, and P398 million or 2% from its beverage segment. The remainder is the P251 million from LT Group’s stake in Victorias Milling Co., Inc.

Broken down, net income from the tobacco business grew 78% to P15.56 billion. This was traced to the price increase implemented in late August 2019 and the growth in market share of its premium Marlboro brand. It noted that volume dipped 3% last year.

Banking unit Philippine National Bank posted a net income of P9.94 billion under the pooling method. Core net income was up 61% to P9.51 billion, which excludes non-recurring gains from real and other properties acquired in 2018.

Earnings from property unit Eton Properties Philippines, Inc. reached P900 million, up 88% from the previous year. It focused on expanding its leasing portfolio, closing 2019 with 181,000 square meters of office space and 43,500 square meters of retail space.

The spirits business under Tanduay Distillers, Inc. saw a 26% drop in net income of P676 million, of which P667 million is attributable to the LT Group. The decline was attributed to the slightly lower margins from higher alcohol costs and interest expenses.

Earnings of beverage segment Asia Brewery, Inc. hit P398 million, 5% up from the previous year. It was driven by higher volumes of energy drinks, bottled water and soymilk sold last year.

Shares in LT Group at the stock exchange closed 95 centavos or 14.73% down to P5.50 each yesterday. — Denise A. Valdez

Alsons income up 67%

MINDANAO-BASED Alsons Consolidated Resources, Inc. saw its attributable net income jump by 57% to P148 million in 2019 after a slight growth in revenues, the Alcantara-led holding firm said on Thursday.

Consolidated income rose by 67% to P939 million. Revenues slightly rose to P6.8 billion.

The revenue and income increases continued to be driven by Sarangani Energy Corp., its 210-megawatt (MW) coal-fired power plant in Maasim, Sarangani province. The power plant serves around six million customers across the island.

With four power plants, Alsons has a total capacity of 468 MW, catering to over eight million people in 14 cities and 11 provinces in Mindanao.

The company is building its first renewable energy power plant, a P4.5-billion 14.5-MW hydroelectric power plant in Sarangani, and a 105-MW coal-fired power plant project under its unit San Ramon Power, Inc. in Zamboanga City. Both projects are expected to become fully operational by 2022 and 2023, respectively. — Adam J. Ang

GMA news channel suspends airing

GMA News TV (GNTV) has “temporarily signed off” due to the state of national calamity amid a novel coronavirus disease pandemic.

“Due to the state of calamity, GMA News TV is temporarily signing off. Please stay tuned to GMA for all news updates,” GNTV said in a statement on Thursday.

In a social media post on Wednesday night, GNTV’s news anchor Raffy Tima said: “No Balitanghali and State of the Nation With Jessica Soho starting tomorrow (March 19) until further notice as GMA scales down its operation for the duration of the lockdown.”

In a news release, GMA Network, Inc. said all its employees will be receiving their full salaries and the cash equivalent of their rice benefits.

“These are on top of the year-round medicine allowance and health card benefits accorded to all regular employees and their eligible dependents,” the media company said.

It also said that its talents and project employees will still receive their salaries on March 25 and 30, 2020, respectively.

“A cash advance will be made available for them for their April 10 and 15 pay-outs,” the network said. — Arjay L. Balinbin

Time spent streaming spiked 20% worldwide this past weekend

FOR years, TV executives have fretted there is too much TV. Now, with the coronavirus looming large, they are worried there might not be enough.

Because of the pandemic, streaming surged this past weekend, according to Wurl Inc., a company that delivers video and advertising to connected TVs. The amount of time people spent streaming spiked by more than 20% worldwide, including more than 40% in Austria and Spain.

While streaming services haven’t commented on any increases in traffic, researchers are seeing more activity in places like Netflix Inc. and Twitch, the online gaming network owned by Amazon.com Inc. Installs of the Netflix app leaped 34% last week in Spain and 57% in Italy, according to SensorTower. Italy has the second-most coronavirus cases worldwide, after China.

“While video streaming is far from the most important thing on the world agenda, it is an industry that indirectly will see a major shift due to the crisis,” said Sean Doherty, Wurl’s chief executive officer.

Driving that growth is the collapse of many leisure and entertainment activities because of the virus, from restaurants and movie theaters to professional sports and concerts.

The swift expansion of streaming use comes with some challenges. Austrian regulators are considering suspending neutrality rules to let network operators throttle Netflix bandwidth, after a rise in data congestion complaints from people working at home, an Austrian newspaper reported.

Media companies have torn up their normal strategies to satisfy growing demand for programming from people stuck at home. Universal Pictures, the studio division of cable giant Comcast Corp., will offer three movies for rental at home before they leave theaters, while Walt Disney Co. released Frozen 2 on its streaming services months ahead of schedule.

PRODUCTION HALTED
While viewing of live TV is also on the rise thanks to 24/7 coverage of the virus outbreak and more people being stuck at home, production of most TV shows and movies has halted for the foreseeable future, creating a potential shortage of new programming.

Streaming services are in a good position because consumers look to them for their libraries of titles on demand — not a live feed — and they have already banked programs for release in the weeks ahead.

Traditional TV networks must be on the air 24 hours a day, and outlets such as CBS, Turner, and ESPN have scrambled to replace the live sports that have gone on hiatus.

That’s opened the door to unconventional forms of programming, from marble rolling to live in-home concerts. Singer John Legend performed from his home Tuesday, streaming live on Instagram for an audience that reached almost 100,000 people.

STREAMING OF GAMES
One industry that may face minimal disruption from the pandemic is video games, which participants have long enjoyed and played without being in the same place.

The audience at Twitch, which lets viewers see gamers compete via livestreams, has increased 10% in the past few days, according to Doron Nir, CEO of StreamElements, a provider of tools and services to the industry. And YouTube Gaming is up 15%, he said.

“With more stay-at-home mandates being issued around the world and the entertainment industry finding new ways to migrate their offerings to livestreaming platforms, we expect to see these numbers rise,” he said in an e-mail.

David Steinberg, who is 27 and streams himself playing video games, saw an influx of viewers in recent weeks as more people have been staying home.

“Now that sports are canceled — NBA, PGA — they are just out of stuff to watch,” he said. “I am a one-man army here in my basement and I can still create content. And with so many people looking online — especially on Facebook, where they check how is their family is doing — it’s been good.”

An increase in viewers could translate into more revenue from advertisers or sponsors looking to reach that captive audience, unless, that is, those companies tighten their belts, too. Steinberg says his total audience across sites like Facebook and YouTube is 3.5 million.

“I’ve gotten thousands of messages from people,” Steinberg said. — Bloomberg

Companies warned on virus patient’s privacy

THE National Privacy Commission (NPC) has warned companies against disclosing the identities of employees under investigation or confirmed positive for the new coronavirus disease 2019 (COVID-19).

In an information sheet released to the press on Thursday, the commission said companies can collect employee data, but added that companies may only collect what is necessary.

“Once collected, reasonable and appropriate safeguards should ensure the security of the forms and personal data contained therein,” it said.

Employers may collect data elements such as name, contact details, and travel history, only as needed by the Department of Health (DoH) for contact tracing. NPC encourages companies to coordinate with the DoH, and to give employees’ privacy notices informing them of the purpose of the data collection. It said contact tracing should be done only upon the authority, guidance, and instruction of the DoH.

Companies should only disclose personal data to the DoH and other relevant agencies, NPC said, adding that announcements to the public should come from the DoH instead of company press releases. The commission added that companies may make internal notices that an employee has been tested positive for COVID-19, but should not disclose the identity of the patient except to DoH personnel.

“Revealing the identity of the COVID-19 patient offers no benefit to the patient nor any advantage to other members of the company in assessing their exposure,” NPC said.

NPC said that the DoH should weigh potential harm to the patient and to trust in medical institutions if information is disclosed against potential harm to the public if information is not released. — Jenina P. Ibañez

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