STOCKS climbed on Friday after the massive sell-offs in the previous day.
The bellwether Philippine Stock Exchange index (PSEi) rose 155.34 points or 3.36% to close at 4,778.76 yesterday. The broader all shares index gained 67.07 points or 2.32% to 2,948.65.
“Local shares closed higher after a short but volatile trading session, partially erasing steep losses. Investors bought shares in the index which has not traded in these levels for around 8 years,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The local market is operating on shortened trading hours — 9:30 a.m. to 1 p.m. — while Luzon is on quarantine.
The main index climbed to as high as 4,936.2 intraday. It hit its lowest at 4,677.66 before settling at 4,778.76 at the close.
“Bargain hunters searched for names with value, hence most of our blue chips ending with more than 10% gains,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.
Some of the biggest gainers among PSEi-member stocks yesterday were Ayala Land, Inc. (14.60%); San Miguel Corp. (14.48%); BDO Unibank, Inc. (14.12%); Security Bank Corp. (12.20%); and DMCI Holdings, Inc. (12.16%).
But some closed lower, like GT Capital Holdings, Inc. (14.46%); PLDT, Inc. (6.87%); Megaworld Corp. (5.43%); and Globe Telecom, Inc. (4.99%).
All sectoral indices closed in green territory on Friday. Financials gained 72.74 points or 6.66% to 1,163.69; holding firms added 166.28 points or 3.74% to 4,602.06; property picked up 59.73 points or 2.48% to 2,468.33; services grew 11.03 points or 1.07% to 1,037.71; industrials climbed 47.22 points or 0.79% to 6,022.65; and mining and oil inched up 24.60 points or 0.66% to 3,745.47.
Value turnover stood at P6.66 billion with 659.47 million issues switching hands, slimmer from Thursday’s P9.42 billion with 1.25 billion issues.
Overseas investors trimmed their selling with net foreign outflows dropping to P654.7 million from P2.4 billion the previous session.
Advancers outpaced decliners, 117 against 85, while 30 names closed unchanged.
“We may have to see if the 4,000 support level holds next week, or if the gap near the 5,000 level shall be filled,” Mr. Pangan said. — Denise A.Valdez
As more millennials and Gen Zers begin climbing higher and higher rungs of the workforce, organizations may find their proverbial corporate comment sections heating up with disdainful ‘kids these days’ remarks met with flippant and devastating ‘ok boomer’s. While intergenerational conflicts can’t be completely eradicated, it’s possible to lessen them and even create a more inclusive environment. TELUS International Philippines (TIP) shares how they do it.
Making the right fit
As with most big changes in the workplace, it begins with fostering the right culture and mindset—in this case, recognizing and respecting diversity among employees and their ideas. For example, when TELUS observed that the younger generation employed a “fast is better than perfect” philosophy, and defined success as finding the right role rather than climbing the corporate ladder, they came up with initiatives that would complement these qualities.
Inspired by the principles of design thinking, meetings were made shorter to encourage quick ideation and faster decision-making. Apprenticeship programs encouraged employees to explore new roles in the company, and not necessarily the ones vertical to one’s designation.
They also have their own educational program, TELUS International University (TIU), so that employees can continue learning through a course of their choice. “It is rare to get an opportunity wherein a company supports working students like me to help earn a degree and still become a successful employee,” said Catherine Libante, part of a customer self-service outbound team, who earned a communication arts degree through TIU.
“Self-fulfillment means a lot to me. Because of the initiatives and programs that my company provides, I see greater value in staying since I can still reach my goals and continue to develop my skills.”
Weaving threads together
But adapting to one generation is only half the formula. Recognizing the baby boomers and Gen X-ers in the company, TELUS devised initiatives to strengthen team dynamics.
Through continuous coaching programs, employees are able to receive regular mentorship from their bosses and discuss how best to improve their operations. “The timeliness of our leaders in providing feedback [helped me become] a leader that knows how to handle difficult situations at work,” said Kimberly Catu, a learning services specialist. “[It] also helped me fuel my desire to always improve myself as part of the workforce and as an individual.
They also have regular employee engagement feedback programs where team members can share their concerns and insights, even those that aren’t necessarily work-related.
“Some of the most impactful improvements we’ve implemented in the past years were fueled by team members’ feedback,” said Anne Muñoz, site director for TELUS Araneta and TELUS Discovery Centre. “These include the introduction of gender-neutral washrooms across all TIP sites, expanding our health benefits to cover same sex and domestic partners as dependents, and introducing benefits and programs to support mental and financial well-being.”
“More than focusing on just succeeding business-wise, it is vital for every company to promote collaboration and respect in all aspects of the workplace,” said Muñoz. “Initiatives focused on marrying the needs of the multigenerational workforce with the culture of the company will more often than not, engage everyone and promote a healthy, happy work environment.
First Shoshin Holdings, Inc. (FSHI) today announced their plans to develop a FinTech Hub in the next twelve months, with the goal of creating an integrated financial services space to serve as a one-stop shop where Filipinos can perform financial transactions on-the-go.
The concept for the hub takes inspiration from an open floor model where financial providers are arranged in a “counterless” and “tellerless” environment and customers can queue via self-service kiosks to complete transactions such as pay bills, open an account, or send money.
A first of its kind, the hub will support products and services that will cater to over two million Filipinos in a 5-km radius to further power a digitally-enabled society via partnerships across financial providers such as Western Union, JoJo, cryptocurrency exchange providers, and core banking.
“In essence, we’re modernizing the way OTCs operate by creating a spread of financial services that address a wide spectrum of financial needs, all under one roof,” said Jack Ponce-Enrile, Chairman of First Shoshin Holdings. Strategically located along EDSA Makati, it is central to business districts with high foot traffic such as Rockwell, outer BGC, and Makati. First Shoshin will be investing $5M USD in the next twelve months to begin the development of the project.
Pushing FinTech progress amidst the COVID-19 crisis
Despite the current health crisis affecting the world, First Shoshin remains steadfast in its efforts to push FinTech progress as it recognizes the importance of effective access to a wide range of financial products and services for all Filipinos. “Promoting greater financial inclusion in the Philippines remains a pressing challenge. Our aim is to innovate and provide holistic and safe solutions to allow not just cashless payments but contactless as well, and the FinTech hub that we’re planning to build is something to look forward to. We’re positive that when the situation improves, we’ll be ready to be of service to the public,” said Ponce-Enrile.
Challenging the status quo with a tech-driven mindset
Apart from the FinTech Hub, First Shoshin has exciting plans in the pipeline including new product launches and initiatives to ramp up research and development of technologies like blockchain. Established in 2017, First Shoshin’s diverse portfolio brings together top innovators and problem solvers to create the future of financial technology, leveraging experience in different industries including logistics, banking, blockchain, crypto-exchange, fintech, gaming, software development, and real estate.
“We seek to disrupt, challenge, and transform the way things are done in our key industries and build solutions that harness the power of the latest technologies to make better experiences for everyone,” said Ponce-Enrile.
According to the latest customer journey data from AutoDeal.com.ph, car buyers spend up to four months researching vehicles online before they purchase and on average, typically request a quote or schedule a test drive around 45 days before they buy. Online automotive marketplaces give access to relevant information, such as lifestyle fit, price range, special features, and vehicle comparisons — particulars that consumers can conveniently find on AutoDeal.com.ph. The online vehicle platform garnered a record-breaking site visit of 3,000,000 in January 2020.
AutoDeal.com.ph has been serving as a reliable go-to platform for car buyers in the country. Backing up this trust is the brand’s more than 350 partner dealers and more than 2,000 participating sales agents nationwide who are committed to delivering quality customer service in the digital space. In recognition of the hard work of their partners and their abilities on digital sales, the AutoDeal Awards recently cited its best performing dealer, brand, and sales agents for 2019.
The AutoDeal Awards program started in 2017 to recognize outstanding customer service in the Philippine automotive industry. Awards are given under three categories: Sales Agent of the Year, Dealer of the Year, and Online Customer Service Award. Awardees are determined purely by AutoDeal.com.ph’s online customer data which indicates who excelled in converting online sales and provided the very best digital customer service experience through the AutoDeal marketplace.
“The awarding process scores sales teams on how well they interact with customers and how efficient they are at closing sales. Metrics like inquiry response time, lead-to-sales conversion, and feedback from thousands of confirmed buyers are tracked through the AutoDeal system and used to determine the winners of the AutoDeal Awards,” AutoDeal.com.ph Co-Founder and Chief Operations Officer Christopher Franks said.
For the latest iteration of the awards, AutoDeal accorded the Sales Agent of the Year to Arline Aguirre of Chevrolet Batangas. Ms. Aguirre tallied 1.72 hours in reply speed and 11.32% rate of conversion.
For Ms. Aguirre, the online vehicle platform has helped her achieve her sales target. “AutoDeal has a big contribution in the car dealership industry. As a sales agent, it opens a lot of doors and I get to know a lot of clients from different places,” she said.
Eunice Kaye Ravanera of Nissan Cagayan De Oro ranked 2nd place; while James Benedict Dima of Ford Pampanga ranked 3rd. All the top sales agents have a perfect 5/5 average review score.
In 2019, more than 28,000 car buyers used AutoDeal to make their purchase; the most popular vehicle categories were the pickup truck, subcompact car, multi-purpose vehicles, and mid-size SUV categories. While market leader Toyota accumulated the highest-grossing sales; mid-market brands like Nissan, Ford, and Suzuki also remained firm favorites among buyers shopping on AutoDeal.com.ph. When it comes to efficiency and customer service though; it was the smaller and more premium market brands like Mazda and Chevrolet who proved to be the most efficient — combining a high sales conversion rate with a highly customer-centric approach to online sales.
Chevrolet Batangas received the Dealer of the Year Award for its remarkable scores of 1.72-hour reply speed, 11.32% conversion rate, and 4.9/5 average review score.
The Customer Service Award, given to the automotive brand with the best overall performance, was won by Mazda, which garnered a reply speed of 3.55 hours, a conversion rate of 8.93%, and an average review score of 4.9/5.
This annual recognition of AutoDeal for its partners serves as a motivation for them to perform better and more consistently. But on top of these accolades, the added reach and publicity they receive from the company’s external communication efforts further promote their business and consequently drives more customers to shop directly from the agent or their dealership.
“Through these efforts, we extend the winners’ recognition among their peers in the automotive industry; hence, their stories will serve as an inspiration to their colleagues and partners,” added Mr. Franks.
Connecting and supporting partners
Right from the start, the company is very supportive of its partner brands, dealerships, and agents.
“AutoDeal specifically partners with manufacturers, importers, multi-branded dealership groups, and individual dealerships who subscribe to sell on our platform,” Mr. Franks explained. “These partners then enroll a select number of top-performing sales agents to connect with prospective car buyers who inquire through the AutoDeal marketplace.”
Aside from helping generating sales for its partners, the online vehicle platform also helps automotive companies recognize sales teams who excel in the specialized field of digital sales.
“We help train and orient our partners on the best processes for generating digital sales and provide a regular feedback loop on the performance of dealerships and agents in relation to metrics such as inquiry response time and lead-to-sale conversion. We also provide quantitative and qualitative feedback from confirmed buyers who purchase with their sales teams via our platform,” Mr. Franks said.
Likewise, the company has a dedicated team that travels from dealer to dealer to train sales teams on how to use the platform and drive digital sales.
AutoDeal’s comprehensive real-time online data analytics suite helps partners monitor their agents’ performance across multiple dealerships, and it enables manufacturers to better understand their consumers through a wide variety of automated reports.
Much of the company’s data culminates in a regular Industry Insights Report that covers the latest trends in customer behavior, market segments, and new developments. Among the data it gathered from 2019, AutoDeal tracked more than 28,000 industry sales that occurred on the platform, accounting for around 7% of all industry sales. “With that said, since a large volume of our sales often go unreported, we estimate that our total industry impact is more in the region of 15-20%,” Mr. Franks pointed out.
As it keeps providing its reliable services to automotive consumers, the online vehicle platform shared that it will welcome several new car brands as partners on their platform. It will also initiate enhancements to their technology to maximize engagement levels on the dealership and sales agent levels.
Moreover, AutoDeal looks forward to additional growth coming from its recently launched motorcycle counterpart, MotoDeal.com.ph, as well as from enhancing its auto-loan, auto-insurance, and used-car business units.
People stockpile groceries at a supermarket in Quezon City, amid a Luzon-wide lockdown. — REUTERS
THE Bangko Sentral ng Pilipinas (BSP) fired a widely expected rate cut on Thursday to shield the economy against the impact of the coronavirus disease 2019 (COVID-19) outbreak, joining central banks around the world that have eased to help boost activity amid an expected slowdown.
The central bank also imposed additional regulatory relief measures to prop up the banking system amid business disruptions due to the enhanced community quarantine in Luzon meant to contain the spread of the virus.
On Thursday, the BSP’s Monetary Board (MB) slashed policy rates by 50 basis points, reducing the overnight reverse repurchase rate to 3.25%. Overnight lending and deposit rates have likewise been trimmed to 3.75%, and 2.75%, respectively.
“With a manageable inflation environment and stable inflation expectations, the Monetary Board sees enough policy space for an assertive reduction in the policy rate at this juncture to cushion the country’s growth momentum and uplift market confidence amid stronger headwinds,” BSP Governor Benjamin E. Diokno said in a statement on Thursday.
“The monetary policy easing is also aimed at mitigating the risk of financial sector volatility in light of unfolding global developments by ensuring adequate domestic liquidity and credit in the financial system as well as lowering borrowing costs for affected firms and households,” Mr. Diokno added.
A BusinessWorld poll last week saw 12 out of thirteen economists expecting a rate cut of at least 25 bps, with some also penciling in a 50-bp reduction amid heightened economic risks due to the spread of COVID-19.
This latest rate cut follows the 25-bp reduction in February. This means the central bank has already slashed rates by a total of 150 bps since 2019, almost completely unwinding the 175 bps in hikes implemented in 2018.
Aside from the rate cut, Mr. Diokno said the MB also “authorized the time-bound, temporary relaxation of BSP regulations on compliance reporting by banks, calculation of penalties on required reserves, and single borrower limits (SBL).
The central bank has a 25% SBL for big banks to manage their loan exposure.
“The Monetary Board also approved a temporary reduction in the term spread on rediscounting loans relative to the overnight lending rate to zero,” Mr. Diokno added.
The central bank chief said they will be “data-driven” in assessing the need to roll out more initiatives “to support non-inflationary and sustainable growth over the medium term.”
He assured that the BSP is prepared to use its range of monetary tools and deploy regulatory relief measures in line with their mandate to support price and financial stability.
“These supplemental actions may include, but are not limited to, recalibrating the interest rate corridor settings; reducing the reserve requirement ratios (RRR), suspending the term deposit facility (TDF) auctions; and ensuring access to liquidity-enhancing facilities such as the rediscounting windows,” Mr. Diokno said.
The BSP has previously made off-cycle reductions in the RRRs of lenders. Currently, the reserve ratio for big banks is at 14%, while those of thrift and rural banks are at four percent and three percent, respectively.
In a note sent to reporters on Thursday, ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa said the month-long enhanced community quarantine covering Luzon affects 74% of gross domestic product, which could dim the growth outlook in the coming months.
“Given the imminent downturn in economic activity and the softening of the inflation outlook due to the drop in global crude oil, the BSP was afforded even more scope to cut policy rates,” Mr. Mapa said.
“Lower rates would do little to ignite loan demand given that more than half of the workforce is holed up in their homes given strict curfews and restrictions for movement,” he added.
Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the rate cut is a welcome development and a move in the right direction, but said this is “not the only weapon to quash the symptoms of the virus spread.”
“Thus, the BSP has to be ready, and generally, the government, in coordinating policy moves, both monetary and fiscal ones,” Mr. Asuncion said in an e-mail.
Security Bank Corp. Chief Economist Robert Dan J. Roces, meanwhile, noted the regulatory relief measures from the BSP will help lenders “roll out transmission into the financial system much faster, especially with the latest cut.”
“A heavy fiscal response to match the monetary stimulus is being readied by the authorities, and that will prove to be ample as a response to this pandemic,” he added.
INFLATION TO DROP
Meanwhile, the BSP now forecasts headline inflation to average at 2.2% this year from 3% in the previous meeting. The 2021 view was likewise downgraded to 2.4% from 2.9% previously. Both are closer to the lower end of the 2-4% target of the BSP for both years.
“The latest forecasts are (substantially) below the February monetary policy meeting projections…due to lower-than-projected inflation outturns in recent months, a sharp decline in global crude oil prices, and the adverse effects of COVID-19 on global and domestic economic activity,” Mr. Diokno said.
Inflation averaged at 2.9% in 2019. In February, inflation eased to 2.6% from the 2.9% logged in January and the 3.8% seen a year ago on the back of lower food, transport, and utility prices.
Mr. Diokno said the balance of risks to the inflation outlook is still geared towards the downside for this year and next, as uncertainties caused by the “potentially protracted pandemic” could affect aggregate demand.
“The Monetary Board noted that while the enforcement of the quarantine measures could help in slowing the spread of the virus, the resulting disruptions to industries and private spending are likely to reduce economic growth in the near-term,” he said.
The central bank chief said COVID-19 has also dampened prospects for tourism and trade, remittances, and foreign investments.
The government targets economic growth of 6.5-7.5% after a below-target 5.9% expansion in 2019. However, Socioeconomic Planning Secretary Ernesto M. Pernia has already warned gross domestic product growth could drop by as much as 1.2 percentage points if the outbreak persists for a year.
There were 217 confirmed COVID-19 cases in the country and 17 reported deaths as of Thursday afternoon. — Luz Wendy T. Noble
THE Philippine Stock Exchange index closed 711.95 points or 13.34% lower to 4,623.42 on Thursday. — PHILSTAR/KRIZ JOHN ROSALES
THE Philippine Stock Exchange index (PSEi) plunged by a record 13.34% on Thursday, erasing P1.16 trillion in market value.
Investors rushed to the exit once trading opened on Thursday morning, after a two-day closure due to the Luzon-wide lockdown meant to contain the coronavirus disease 2019 (COVID-19) outbreak.
The circuit breaker was triggered shortly after stocks slumped 12.4% immediately after the market opened. Since it is only triggered once a day, the PSEi went into free fall, plummeting as much as 24.29%.
The main index closed 711.95 points or 13.34% lower to 4,623.42 — its largest-ever one-day drop in both points and percentage. This was also the lowest close since Jan. 26, 2012 when it hit 4,611.68.
PSE Chief Operating Officer Roel A. Refran said the bourse operator is looking at revising its circuit breaker rules in an attempt to curb market volatility. He said in a text message they are looking at a multi-level circuit breaker, similar to other markets.
“The numbers show us the intensity of the pessimism in the volatile market today,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.
He noted investor sentiment across the world is at a low amid fears of a recession in advanced economies, while in the Philippines, investors are concerned over the economic disruptions due to the Luzon-wide lockdown.
During Thursday’s shortened trading session, foreign net selling surged to P2.40 billion from P741.72 million on Monday.
Trading volume spiked to 1.25 billion issues valued at P9.42 billion from 618.19 million issues worth P6.44 billion in the last session.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said investors rushed to sell after two days of no trading.
“This sell-off will continue until we see some improvement on the containment of the COVID-19 virus on our shores,” Mr. Mangun said in an e-mail.
Philstocks’ Mr. Tantiangco advised investors to “sell positions for now” and “wait for the local bourse to consolidate first or show a sustainable recovery before taking positions.”
For PNB Securities, Inc. President Manuel Antonio G. Lisbona, investors must remain on close watch for opportunities to benefit from the situation.
“It is hard to be optimistic especially after seeing declines of this magnitude day after day but in hindsight, it’s events like these are what provide golden opportunities for investors with the liquidity, fortitude and patience,” he said in a text message yesterday. — Denise A. Valdez
THE DEADLINE for filing annual income tax returns has been moved to May 15 due to the Luzon-wide lockdown. — PHILIPPINE STAR/ KRIZ-JOHN ROSALES
THE Bureau of Internal Revenue (BIR) extended the deadline for the filing of income tax returns (ITR) by one month to May 15, but the Finance department said this may result in an “estimated delay and shortfall in tax collections of around P145 billion.”
BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular (RMC) No. 28-2020 dated March 18 which moved the deadline of the filing of 2019 annual ITRs to May 15 from April 15, amid the Luzon-wide lockdown over the spread of the coronavirus disease 2019 (COVID-19).
“This emergency measure is being offered to provide relief to Filipino taxpayers who will not be able to prepare, let alone file, the necessary ITR documents on or before the original annual deadline of April 15 because of skeletal workforce arrangements and enhanced community quarantine rules that the national government has implemented to contain the pandemic,” the DoF said in a statement.
The government targets to collect P3.49 trillion this year to fund its P4.1-trillion spending plan, with the remaining funds to be sourced from its borrowing activities. The BIR is tasked to collect P2.576 trillion.
Asked if the delay in collecting P145 billion in taxes would affect the government’s spending plan, Finance Secretary Carlos G. Dominguez III said in a Viber message that there will be “no impact” to government expenditures.
The DoF urged those who are able to file their ITRs on or before the original April 15 deadline to still do so, to allow the government to raise funds for efforts to contain the COVID-19 outbreak and to help affected sectors.
Taxpayers who are enrolled in the electronic filing and payment system may settle their tax liabilities with authorized agent banks. Other payment options include over-the-counter payments through authorized agent banks and electronic/online payment platforms.
Digital payments firm Paymaya Philippines has waived its P20-convenience fee for BIR payments through the platform until May 31.
Also, the BIR, through RMC 27-2020, extended the deadline for filing applications for value-added tax (VAT) refunds for those falling due on March 31 to April 30.
The bureau also suspended the 90-day period processing of VAT refund claims for ongoing claims, and those received between March 16 to April 14. The counting of the number of processing days will resume after the lifting of the Luzon-wide lockdown.
BIR Deputy Commissioner for Operations Arnel S.D. Guballa said in a mobile phone message that the bureau is “rushing” to work on extending other tax deadlines.
Tax Management Association of the Philippines, Inc. (TMAP) has welcomed the 30-day extension of ITR filing and payment as this will give accountants ample time to prepare amid the Luzon lockdown.
TMAP President Romeo H. Duran said they will still appeal to the BIR for a 30-day extension to deadlines of other returns which will fall under the quarantine period.
“We are very much in favor of the extension… [as well as on the] VAT refund, processing of claims. It’s so difficult to meet the March 31 deadline… We’re also looking at asking the BIR for other tax types also whose due dates will fall during the quarantine period,” he said in a phone interview.
He said they will also request the BIR to revisit the deadlines on other filing requirements such as administrative protests and replies since preparing these requires sifting through documents and onsite operations.
RMC 26-2020 dated March 17 reminded taxpayers that other returns with deadlines falling during the 30-day quarantine period can file “tentative returns” and “tax payers are given 30 days… to file the final tax returns and pay taxes due thereon.”
The entire Luzon island has been placed under enhanced community quarantine until April 12 in the government’s attempt to slow the spread of the virus that infected 217 and killed 17 people in the country, as of Thursday. — Beatrice M. Laforga
THE Securities and Exchange Commission (SEC) is further easing its requirements for companies that are seeking an extension of the deadline for filing of 2019 annual reports and audited financial statements.
In a notice on its website, the corporate regulator said it is dispensing with previously announced rules that a sworn statement is needed to be allowed to submit annual reports and audited financial statements beyond the deadline.
“In light of the implementation of an enhanced community quarantine for the entire Luzon…, the commission en banc…resolved to dispense (its) requirements, both for publicly listed and non-publicly listed companies,” it said.
One of these requirements is the submission of a sworn certificate signed by the company’s president and treasurer to confirm that the company was significantly affected by the coronavirus outbreak, whether through business operations or the preparation of the financial statements.
Another requirement is the sworn certification by the company’s external auditor.
These requirements were laid out in Memorandum Circular No. 5 issued last week. It sought to extend the filing period of annual reports and audited financial statements to the end of June.
In a statement, the SEC said the adjustment of the rules seeks to give more time to companies to prepare and file their reports as the island of Luzon has been placed under enhanced community quarantine until April 13.
Companies that operate domestically may submit their filings until June 30. Those that have both domestic and foreign operations may submit filings until June 30 or 60 days from the date of lifting of travel restrictions, whichever comes later.
The adjusted rules and deadline applies to companies that have fiscal years ending Dec. 31, 2019 and Nov. 30, 2019. — Denise A. Valdez
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.
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
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
