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Filipino team bags grand prize at Finastra global hackathon

Manila-based Team WonderTech won the grand prize at Finastra Universe New York, a global fintech hackathon, last March 11. The competition, hosted by fintech player Finastra, saw more than 1,000 participants across 38 countries inventing over 240 new apps.

Team WonderTech is a team of young professionals and students composed of Michael Puzon, Vaniza Dagangon, John Robert Tubale, and Clyde Palattao. Their winning app, Agree Farm, aims to give rural Filipino farmers access to bank loans, and was built in just a few weeks using Finastra’s open development platform, FusionFabric.cloud.

Agree Farm also bagged an award for “Future of Payment & Banking for a Better Future”, one of five categories, namely “Future of Capital Markets”, “Future of Corporate Banking”, “Future of Retail Banking”, and “Best App by an Established Fintech”. Each winner will be able to continue refining their solutions, for promotion in Finastra’s FusionStore.

“Fintech is one of the hottest growth and innovation areas, with some serious investment from banks, private equity, VC and government,” said Shuki Licht, Chief Innovation Officer at Finastra. “Team WonderTech and all of the category winners have demonstrated an incredible ability to understand the needs of the market and have shown that the future of finance is truly open.”

Facebook calls for applicants to new Community Accelerator

Facebook recently unveiled Community Accelerator, a six-month program providing training, mentorship, and funding for community leaders from 13 different countries to help them grow their communities.

“We are extremely proud to launch the Community Accelerator, the natural evolution of our Fellowship program. Building community is at the heart of our mission and the program serves to invest in and support the community leaders who offer encouragement, build bridges, and drive change,” explained John Cantarella, VP of Social Good and Community Partnerships at Facebook.

“Our past participants have created positive, lasting change in their communities, which makes us all the more excited to welcome the next cohort through our new, purpose-built program,” he said.

“Last year, participants in the Facebook Community Leadership Program touched the lives of over 580,000 people in Asia Pacific through their community initiatives. In the Philippines, Jay Jaboneta from the Yellow Boat of Hope successfully brought together volunteers, schools, government, and nonprofit organizations from over 130 communities in the first HOPE Summit,” added Clapham.

Back in 2010, Jay Jaboneta learned that there are kids out there who have to swim just to get to school. Moved by the amazing lengths that these kids go just to get an education, he decided to post a status about it. The post caught the attention of people who wanted to get together and see how they can help these children, and thus, the Yellow Boat of Hope Foundation was born.

Jay Jaboneta pitching the HOPE Summit during Meet-up 2 of the Facebook Community Leadership Program (FCLP)

After being selected for the Facebook Community Leadership Program (FCLP) and going through the training process, Jaboneta found the learnings immediately useful for the Yellow Boat of Hope Foundation’s cause.

“The Yellow Boat of Hope started with one Facebook post and from there, we connected with people, and built a strong community of volunteers—HOPE Paddlers, who are passionate about bridging the gap in education. The Facebook Community Leadership Program helped us maximize Facebook tools to grow and strengthen our community while reaching more like-minded people, who are just as determined to make an impact in their communities,” said Jay Jaboneta, Co-Founder and Chief Storyteller of the Yellow Boat of Hope Foundation.

10 years later, the Yellow Boat of Hope Foundation has provided over 4,000 boats to nearly 200 communities nationwide and counting.

“Community leaders in the Philippines often tell us that some of the biggest challenges they face are a lack of access, training, and funding. We are excited to continue to invest in and support them through the Community Accelerator,” said Head of Community Partnerships for Facebook APAC, Grace Clapham.

If you run an impactful, established community, are ready to grow using Facebook’s apps, and have the time and energy to invest in this program, Facebook encourages you to apply here: https://www.facebook.com/community/accelerator/.

Asia-Pacific faces imminent recession

A RECESSION across Asia-Pacific is “now guaranteed” amid an unprecedented disruption in the flow of people, trade and supply chains in large economies like China and the United States, with emerging countries in the region like the Philippines also likely to see spillover effects, according to S&P Global Ratings.

But Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the impact of the Luzon-wide enhanced community quarantine on the Philippine economy is still uncertain, but added that adverse effects could be minimized if the government’s efforts to arrest the spread of coronavirus disease 2019 (COVID-19) are successful.

In a report sent on Wednesday, S&P said a recession across Asia-Pacific is “now guaranteed due to a deep first-quarter shock in China and the shutdown of activities across G7 economies.”

“By recession, we mean at least two quarters of well below-trend growth sufficient to trigger rising unemployment. Asia-Pacific growth in aggregate will likely more than halve to less than 3%,” it said.

S&P noted the Philippine economy has exposure to final demand from the US and Europe of 2.6% and 4.7%, respectively, totaling 7.3% of the country’s gross domestic product (GDP).

Moreover, S&P said the virus spread will be an issue in Asia’s emerging markets where health care infrastructures remain weak.

“Restrictions are now being imposed in some of these countries — for example, the lockdown of Metro Manila in the Philippines — reflecting that risks have increased,” the report said.

“As household and business confidence in these economies erode, we will start to see domestic demand suffer,” it added.

S&P already downgraded its 2020 growth outlook for the Philippines to 5.8% from the 6.2% penciled in last December. If realized, this would be slower than the 5.9% GDP growth in 2019 and also below the 6.5-7.5% government target for the year.

The debt watcher said the loss of household and business confidence in Asia Pacific will lead to “severe and more persistent supply and demand shocks,” paired with higher unemployment rates.

It noted that policy responses from governments across the world, including the emergency rate cuts from the US Federal Reserve and the scaled-up asset purchases of the Bank of Japan could “cushion but not quickly reverse these shocks”.

“Local measures aiming to support vulnerable sectors and workers, such as a payroll tax cut in China, may help but their effect will wane the longer the crisis lasts,” S&P said.

IMPACT OF LOCKDOWN
BSP’s Mr. Diokno said the impact of the Luzon lockdown is yet to be assessed.

“What’s the impact of the Luzon-wide community isolation on the economy? I don’t know yet. But it will definitely have an impact,” Mr. Diokno said in a text message.

“If it (quarantine) succeeds, the adverse impact will be minimal and we can expect a V-shape recovery; if it fails, the adverse impact can be large and protracted, and the recovery can be an elongated U,” Mr. Diokno said in a text message.

The central bank chief said the lockdown, which is a temporary move to arrest the further spread of COVID-19, falls within both the first and second quarter of the year.

“It will straddle two quarters — two weeks out of 13 weeks in Q1 and another two weeks in Q2,” Mr. Diokno said of the lockdown that is scheduled to end on April 12.

Meanwhile, citing data from the Philippine Statistics Authority, the Economic Research Unit (ERU) of UnionBank of the Philippines, Inc. said the Luzon-wide lockdown will affect 73% of the total GDP of the country.

“Thus the economic impact on these particular regions will be significant. Both Q1 and Q2 GDP growth will significantly slow down,” UnionBank’s ERU said in a report on Tuesday, noting that they expect first-quarter GDP growth to settle below five percent.

“If the local virus containment efforts succeed by April 12th and the parallel global efforts also succeed, then, a slight recovery can be expected in Q3 and a more robust one in Q4,” the report added.

“A major part of the Philippine economy is the Service Sector at 49% composed of services-related sub-sectors directly affected by the COVID-19 health scare like tourism, transport, airlines, real estate, retail, and other services,” it said.

It said trade-related firms in the manufacturing sector will also be affected as China’s shutdown has had an impact on export and import companies.

With the enhanced community quarantine in Luzon, UnionBank’s ERU said they expect the Build, Build, Build program — seen as a key growth boost by the government — to be disrupted as firms have to limit their activities.

The report also said countries like Italy, China, Iran, Korea, Spain, Germany, France, the US, Switzerland, and the UK, which have recorded the highest number of COVID-19 patients, make up 50% of remittance flows to the Philippines.

“This is a significant portion of overall levels and future remittance inflows may be affected consequently for the coming months,” the report said.

Data from the BSP showed cash remittances in January, when the virus had yet to reach pandemic level, grew 6.6% year on year to $2.648 billion. Analysts have, however, warned the next months’ inflows could be strained due to the impact of the virus.

BSP’s Mr. Diokno has said the central bank is ready to use its policy tools to battle the impact of the outbreak on financial markets and the country’s growth prospects.

The Monetary Board will have its second policy-setting meeting for the year today (March 19). Mr. Diokno earlier said they might slash rates by more than 25 basis points following easing moves and stimulus from central banks in the US, Japan, New Zealand, South Korea, and Vietnam, among others.

The overnight reverse repurchase rate of the central bank is currently at 3.75%, while overnight lending and deposit rates are at 4.25% and 3.25%, respectively.

There were 202 confirmed COVID-19 cases in the country as of 4 p.m. Wednesday, with 17 deaths recorded. — L.W.T. Noble

Trouble in paradise: Foreign tourists gone amid coronavirus outbreak

By Jenina P. Ibañez
Reporter

STAND UP paddle board instructors on a stretch of beach on the world-famous Boracay island have not had a client for three days.

Some of them including Jerry Arebalo, who moved to the island from Kalibo City seven years ago, have been collecting coconuts from the trees along the shore, stringing them together and tying them to an umbrella tree.

“Ma’am, coconut?” he calls to a tourist, hoping to come home with P50 instead of nothing. Mr. Arebalo said he used to earn P1,200 on a good day, but those days are gone.

Boracay’s tourists have been declining as governments across the globe imposed travel bans and people voluntarily canceled their trips amid a novel coronavirus outbreak that has killed more than 7,000 people and sickened about 183,000 more worldwide, mostly in China.

President Rodrigo R. Duterte postponed his promotional visit to Boracay last week, staying in Metro Manila to announce a community quarantine limiting entry and exit from Manila, the capital and nearby cities.

He later expanded the lockdown to the entire Luzon island to contain the outbreak, suspending work and public transportation and regulating food and health services.

The President ordered a so-called enhanced community quarantine as the coronavirus disease 2019 (COVID-19) infections rose to 202, killing at least 17.

Some provinces and cities outside Luzon have also closed their borders including Aklan province, where Boracay is.

The average daily port arrivals to the island were down to a thousand people since the start of March, from 5,600 last year, Tourism Undersecretary Arturo P. Boncato, Jr. said.

As the local tourism industry plummets, the reality of losing their jobs was just starting to sink in for Boracay island’s 30,000 workers.

“I’ve been trying to find some extra work here and there,” paddle board instructor Anthony Pampusa said in an interview.

The tourists on the island have been mostly street smart locals who know their way around, Mr. Arebalo said.

Most of the tourists in Boracay used to be Chinese and Korean, but that’s no longer true after the Philippines banned travel to and from mainland China and its administrative regions in February as COVID-19 cases in those regions rose.

South Korea has been aggressively testing citizens as cases topped 8,000 with at least 84 deaths.

Jojo Candas, who rents out paddle boards at Boracay’s Station 1, said he had lost about 90% of his clients. Rent per hour is P600, which is divided 60-40 between the owner and instructor, respectively “Before we regularly got six clients a day,” Mr. Candas said. “Now, we’d be lucky to have one.”

SLOW DEMAND
Meanwhile, Flora Ramon sits under a tree next to massage therapists and sunglass vendors watching for tourists passing by. Ms. Ramon, who braids hair as a profession, said she had not seen client numbers this low since Boracay was closed for rehabilitation in 2018.

But back then, the local government had helped workers who lost their jobs. “It would be nice to be offered jobs from the Labor department, as well as cash for work,” she said in Filipino.

Ms. Ramon has been braiding hair on Boracay’s beach front for two decades. “Before, it was easy to get customers. Now, I go home with nothing.”

Further into the island, behind Boracay’s beach-front hotels, Rosie Casimiro is worried about slow demand for cigarettes and soft drinks from the mom-and-pop store that she manages. She said she’s been buying fewer goods for resale as demand from tourists and locals dips.

“Most of my customers are workers from here,” Ms. Casimiro said. “What happens once they lose their jobs?”

Not too far from Ms. Casimiro’s store, Henann Prime Beach Resort General Manager Keevin Cepe sits at the lobby after helping tourists check in.

“We are affected by (COVID-19),” he said in an interview. “We’ve probably lost 60-70% of our occupancy.”

Most Boracay tourists who check in at hotels and resorts are from South Korea and China, he said, adding that European backpackers who stay for a month choose cheaper hostels.

Since February, resort employees have been asked to go on leave without pay for about a week each month. The company has also cut room rates by more than 60%.

Terence Ang, resident manager at Lime Hotel Boracay, said they have lost 90% of their guests, most of whom were from travel agencies bringing in Chinese and Korean tourists.

To manage losses, the hotel has asked the Labor department to let the company enforce days-off without pay. The hotel has also sought discounts from cable, water and internet providers.

The hotel had planned to add 200 more rooms to its existing 42 before the tourist slump. The plan would probably have to wait for now, he said.

Aaron Fabiano, a dive instructor at Milky’s Water Sports, said he was not worried because most of their clients are vacationing Filipinos. But that was before Mr. Duterte locked down Metro Manila — and the entire Luzon island later — to contain the novel coronavirus outbreak that the World Health Organization has since called a pandemic.

Henann Prime’s Mr. Cepe said Boracay’s resort industry probably won’t survive a nationwide lockdown

The resort, he said, was still working on contingency plans in case a COVID-19 case was reported on the island.

Mr. Arebalo, mentioned at the outset, said he’d rather wait it out. “We need to bear this and I’ll be staying for a few more months. I might still get my job back.”

WB extends $100-M loan to PHL for coronavirus fight

THE WORLD BANK Group (WB) is extending a $100-million loan to the Philippines to allow the Health department to buy test kits and protective equipment for health care workers, among others, as the country tries to contain the coronavirus disease 2019 (COVID-19) outbreak, according to the Department of Finance (DoF).

In a statement on Wednesday, DoF said the funds will be sourced from the multilateral lender’s fast-track COVID-19 facility and is expected to made be available to the Department of Health (DoH) within weeks.

The funds can be used to pay for “personal protective equipment (PPE), testing materials and equipment, subnational lab equipment, isolation rooms, and quarantine areas,” according to Achim Fock, World Bank acting country director for Brunei, Malaysia, Philippines and Thailand.

“[World Bank] would take every step to make procurement as fast as possible, fully appreciating that rapid response in health emergencies is key to limiting the spread of COVID-19 and providing care to those affected,” Mr. Fock said in a March 17 letter to Health Secretary Francisco Duque III.

He also said that World Bank office in Manila is ready to support the DoH in sourcing the needed medical goods and equipment as soon as possible.

A team led by Finance Undersecretary Mark Dennis Y. C. Joven met with World Bank’s Mr. Fock last week to discuss financing options that will help the country’s efforts to contain the outbreak.

Under the Washington-based lender’s COVID-19 facility, DoF said the country is eligible for a $100-million loan at “International Bank for Reconstruction and Development (IBRD) regular terms, with a waiver of the first year of commitment fees.”

“As an IBRD member-country, the Philippines is also eligible to receive further financing assistance from the IBRD within its normal exposure limits,” it added.

IBRD is a member of the World Bank group that focuses on assisting middle-income and creditworthy countries.

DoH reported 202 confirmed COVID-19 cases and 17 deaths as of March 18.

Late Monday, the administration’s economic team has rolled out a P27.1-billion economic package to help affected sectors and to contain the spread of the COVID-19. Finance Secretary Carlos G. Dominguez III also said they are seeking a $1-billion loan to boost efforts against the coronavirus.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the P27.1-billion spending package, which translates to 0.15% of gross domestic product (GDP), is “decent enough as an initial stimulus measure.”

In an e-mail interview, Mr. Ricafort said the government may need “additional spending, stimulus measures and other interventions to counter the adverse effects of the coronavirus,” particularly during the enhanced community quarantine for Luzon.

“The expanded quarantine in Luzon may be necessary and prudent, as part of stringent measures in an effort to prevent the spread over the coronavirus in the country, considered a cost/sacrifice needed for the greater good, the benefits of which more than offset any potential harm/costs that is being prevented/controlled,” he added. — B.M.Laforga

Traders expect stocks to slide as market opens

By Denise A. Valdez, Reporter

THE local market is set to come back today after a two-day shut down, and traders anticipate it to stay on the decline.

The Philippine Stock Exchange, Inc. (PSE) announced Tuesday night it has been allowed to reopen the market while the rest of Luzon is on lockdown. Trading resumes today on shortened hours: 9:30 a.m. to 1 p.m.

Clearing and settlement at the Securities Clearing Corporation of the Philippines will also resume today.

The PSE made the mark of being the first stock market in the world to close due to the effects of the coronavirus disease 2019 (COVID-19) pandemic.

While it opens for trading today, the PSE trading floor will remain closed as the government maintains strict implementation of the enhanced community quarantine over Luzon island. Participants may remotely join trading activities at the PSE for the mean time.

After the main index closed at 5,335.37 on Monday — a 7.92% drop from last Friday — analysts said investors may still keep selling when the market reopens today.

“Investors may express negative sentiment… This is as equity markets around the world continue to trend downward amid escalating cases of COVID-19,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message yesterday.

He added the closure of the market over the past two days “may prompt feelings of uncertainty for the local market due to the abrupt decision made regarding the financial markets in the country.”

Philstocks Financial, Inc. Research Associate Claire T. Alviar thinks so too. In a text message yesterday, she said selling pressure is expected from investors today “as investor’s confidence is dented after the market closed for two days — pushing (them) to be liquid or to stay in the sidelines.”

She added the downgraded Philippine growth forecast to 5.4% by Moody’s Investors Service may further affect negative investor sentiment.

“Forecast cut is not surprising anymore since most companies are reporting that COVID-19 pandemic would significantly affect their business operations… Other than that, consumer spending (the major contributor to the Philippines’ growth) might also decline since non-essential goods and services are discouraged,” Ms. Alviar said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan added that the need to keep cash on hand while under enhanced community quarantine may force investors to sell.

“Funds may want to remain liquid and weather out the storm first,” he said in a mobile message yesterday.

Ms. Alviar is pegging psychological support for the market at 5,000. Ms. Limlingan puts it within 5,100-4,500, with resistance level at 5,600.

ABS-CBN Convergence’s franchise expires

THE franchise of ABS-CBN Convergence, Inc. expired on March 17, 2020 while it was awaiting the provisional authority from a government agency that will allow the Lopez-led company to operate, its parent firm said on Wednesday.

“In the meantime, Convergence has suspended operations which require a legislative franchise or provisional authority,” ABS-CBN Corp. said in a disclosure to the stock exchange.

The media network said ABS-CBN Convergence was looking forward to receiving the provisional authority from the National Telecommunications Commission (NTC) “that will allow it to continue to provide service to all Filipinos.”

It said the NTC previously declared that it would issue a provisional authority, consistent with Senate Resolution No. 40 adopted on March 4, 2020, and a letter to the NTC dated Feb. 26, 2020 from Chairperson Franz E. Alvarez of the House Committee on Legislative Franchises, which was adopted by the committee in a meeting on March 10, 2020.

ABS-CBN said the provisional authority is also consistent with the letter to the NTC dated Feb. 26, 2020 from the Secretary of Justice, statements of the NTC commissioner during the House committee meeting on March 10, 2020, and the statement of Deputy Commissioner Edgardo Cabarios on March 11, 2020 to ABS-CBN Convergence, among other companies.

CNN Philippines goes off-air for building disinfection

Building where the network is housed will be disinfected. — CNNPHILIPPINES.COM

LOCAL news channel CNN Philippines on Wednesday said it had to go off the air for at least 24 hours as the Worldwide Corporate Center where it is housed needed to be disinfected after an employee of another company in the same building tested positive for the coronavirus disease 2019 (COVID-19).

CNN Philippines, operated and owned by Nine Media Corp., said in a statement: “CNN Philippines will go off air for at least 24 hours as the building where the network is housed will be disinfected.”

“Employee of another company in the same building, but on a different floor, tests positive for COVID-19,” it added.

It said it would still continue to deliver news through its website, Facebook, Twitter, and Instagram pages.

The building is along Shaw Boulevard in Mandaluyong.

“We have prepared for this emergency. For more than two weeks, many of our colleagues have been isolated and working from home already,” the company said in a statement. “We took that step in anticipation of something like this to happen. CNN Philippines still has a team working to gather stories that matter and to bring them to you as they happen,” it said.

The Health department on Tuesday afternoon reported 45 new confirmed cases of coronavirus, bringing the total to 187.

The government on Monday placed the entire island of Luzon under “enhanced community quarantine” until April 12. During this period, classes and public transportation are suspended, while businesses are asked to stop operations or implement work-from-home schemes. Malls in Luzon have also been shut down. — Arjay L. Balinbin

Big business groups join fight vs virus spread

MORE billionaires are joining to help fight the spread of the coronavirus disease 2019 (COVID-19) across the Philippines.

After San Miguel Corp., Ayala Corp., the Manuel V. Pangilinan (MVP) Group, the SM Group and Udenna Corp., the Gokongwei, Araneta and Villar families and Andrew L. Tan’s Alliance Global Group, Inc. (AGI) also announced their own initiatives to assist the health sector yesterday.

In a statement, the Gokongwei Brothers Foundation, Inc. (GBF) of JG Summit Holdings, Inc. said it formed a P100-million fund targeting two key beneficiaries: national and local frontline health providers.

“The fund earmarked by GBF is over and above the ongoing initiatives that the various companies under the Gokongwei Group… are spearheading on their own,” it said.

The foundation committed to provide personal protective equipment such as surgical masks for health care frontliners. It is also supporting the distribution of rapid test kits to hospitals.

GBF identified the U.P. Medical Foundation, Inc. and PGH Medical Foundation, Inc. as among the institutions in its priority list.

Other companies within the Gokongwei group are also lending a hand. Food unit Universal Robina Corp. is donating food products like coffee, crackers, cup noodles, bottled water and milk drinks to health workers in hospitals.

Aside from helping buy test kits, real estate arm Robinsons Land Corp. will waive the rental fees for non-operational tenants in its malls that are closed during the quarantine period. It will also offer rent condonation to tenants to help “reallocate funds and allow them to extend financial assistance to their employees for this emergency.”

Robinsons Bank Corp. will be extending the payment deadline for its customers under various loan products.

Retail unit Robinsons Retail Holdings, Inc. will help by keeping its necessity stores such as groceries, convenience stores, drugstores and hardware shops operational during quarantine period.

Airline arm Cebu Air, Inc., which operates Cebu Pacific, will offer flight rebookings for scheduled flights until April 30. Customers will also be given the option to put the cost of a ticket in a “travel fund” for future use.

For the Aranetas, social development arm J. Amado Araneta Foundation, Inc. pledged donating locally produced COVID-19 test kits to the Quezon City General Hospital.

It said in a statement yesterday it has committed giving help to the local government of Quezon City by providing test kits that will accommodate 500 samples at the identified hospital.

“Araneta City values the health and safety of the entire community. This is our way of showing our cooperation to the government in this time of crisis,” Araneta City Senior Vice-President Antonio T. Mardo was quoted in the statement as saying.

The test kits, which are developed by scientists from the University of the Philippines-National Institute of Health, will be procured as soon as they are made commercially available.

For the Villars, the family is donating disinfecting apparatus to nine government hospitals in Metro Manila, 200,000 face masks and a daily supply of bottled water to the government through the Health department.

For Mr. Tan’s AGI, the company said it is donating one million liters of alcohol to the government agencies at the frontlines. These include the Health department, the Philippine National Police, the Armed Forces of the Philippines and local government units.

“Through the Department of Health, we hope to distribute disinfectant alcohol to as many, if not, all the hospitals and clinics that are treating COVID-19 patients all over the country,” AGI Chief Executive Officer Kevin Andrew L. Tan said in a statement.

While the SM Group had earlier announced setting aside P100 million for its assistance program, its co-living property MyTown also said yesterday it is providing temporary staff housing for businesses that require emergency staff accommodation.

SM Supermalls is also waiving the rental fees of all its tenants nationwide for the Mar. 16 to April 14 period.

For the MVP Group, its social responsibility arm Tulong Kapatid also supplemented the group’s previously announced employee support with grocery assistance to frontliners.

In a statement yesterday, the group said it sent more than 1,000 grocery packs to the families of health workers and personnel of V. Luna Hospital, as well as to the checkpoint officers of the Armed Forces of the Philippines.

“We salute our frontline heroes for the courageous work that they are doing… We join the growing number of Filipinos who are coming together to help our health workers during this critical time,” PLDT Chairman and CEO Manuel V. Pangilinan was quoted in the statement as saying.

On Monday evening, President Rodrigo R. Duterte called on the private sector to help in mitigation efforts against COVID-19. The Health department reported 202 confirmed cases, 17 deaths and seven recoveries from the COVID-19 in the Philippines as of Wednesday afternoon. — Denise A. Valdez

How hotels are dealing with the lockdown

WHILE several hotels have sent us statements regarding their operations during the COVID-19 pandemic, the rules have changed as swiftly as the statements were issued. While hotels such as The Peninsula Manila and Marco Polo assured us of their food safety procedures a few days ago, they, as most of the hotels in the National Capital Region have since been closed, or are currently closing.

The Edsa Shangri-La has advised its guests to check out by March 19. If guests are still within the premises within March 19, they will be urged to stay within the hotel. At present, meals are served à la carte or through room service.

The Peninsula Manila, meanwhile, is “closing its doors” on Thursday, at 11:59 p.m. The restaurants have been closed, and as of the time of writing, the remaining guests are being advised to go back to their homes.

Over at the Marriott, a call placed Wednesday morning said that the Marriott Cafe and the Marriott baker are still serving breakfast, and the concierge on the phone said that they are not allowed to disclose any more information.

The City of Dreams Manila sent a statement that its casino operations stopped beginning March 15, but effective March 18, its three properties, Nuwa, Nobu, and Hyatt Regency will suspend operations. As of the time of writing, remaining guests have also been advised to return to their homes. — Joseph L. Garcia

2GO trims losses to P892M

2GO GROUP, Inc. posted a net loss of P892 million for 2019, a 39% improvement from its net loss of P1.47 billion for the previous year as it completed “a series of restructuring activities.”

“During 2019, 2GO completed a series of restructuring activities as part of the management’s plan to focus on improving core services and profitability,” the listed shipping and logistics provider told the stock exchange on Wednesday.

2GO reported a 9% increase in revenue for 2019 to P21.41 billion from P19.67 billion. But the cost of services and goods sold grew 7% to P19.67 billion from P18.44 billion.

The company attributed its revenue growth to the continued demand for services and goods.

“Revenue from the non-shipping business (logistics and distribution) increased year-on-year by 15% in 2019 and decreased by 2% in 2018,” it said, as it also noted 26% growth in its revenue from distribution business and 5% growth in the logistics business.

2GO said the non-shipping segment accounted for 67% of its 2019 revenues. The shipping business, whose revenue decreased by 2% last year, “discontinued the operations of its interisland freighter vessels and short-haul fast ferry passenger vessels as part of the management’s plan to focus on improving core ROPAX (roll-on/roll-off passenger) services and profitability.”

The 7% increase in costs of services and goods sold was driven by inventory goods sold by the distribution business, which increased by 23%, and bunker fuel oil consumed by the shipping business. The company said fuel costs increased by 14% last year due to an increased number of roundtrips by ROPAX vessels.

Chelsea Logistics and Infrastructure Holdings Corp. had acquired 100% of the The SuperCat Fast Ferry Corp. (SFFC) from 2GO in October last year.

The company said that for 2020, it will continue to focus on improving core services and profitability.

It added that it “aims to gradually build expertise for new services and industry verticals to better respond to market demand.”

“The group plans to achieve this through streamlined operations and collaboration within its business units, investments in technology, and synergies and best practices from its shareholders.” — Arjay L. Balinbin

Pag-IBIG grants extension for borrowers’ payments

PAG-IBIG FUND is giving some borrowers more time to pay their loans. — BW FILE PHOTO

RESIDENTS OF Luzon and the National Capital Region will be given a three-month payment extension to repay loans from the Home Development Mutual Fund (Pag-IBIG Fund) as the region has been placed under enhanced community quarantine, which has forced some businesses to shut down, leaving employees with no wages.

“Our Board of Trustees saw this as an urgent measure and immediately voted for the grant. This moratorium will help alleviate our members’ worries so that they could focus on providing for the basic necessities and safety of their families,” Pag-IBIG Fund Chairman and Department of Human Settlements and Urban Development Secretary Eduardo D. del Rosario said in a statement.

Fund members eligible to apply for the moratorium are borrowers with housing, multi-purpose and calamity loans with payments due on March 16 to June 15. During the moratorium, members will not incur interest or penalties for their late payments.

The agency said they will receive loan applications after the lifting of the enhanced community quarantine which is set on April 13. By then, members can file their application at Pag-IBIG branches until June 15.

On Tuesday, Mr. Del Rosario said that other government agencies that will grant a three-month moratorium on housing and multipurpose loans also include the National Home Mortgage Finance Corp., Social Housing Finance Corp., and the National Housing Authority.

He added that those who will opt to pay on time despite the grace period can still pay their dues online and through accredited payment centers.

Moreover, Pag-IBIG Fund Chief Executive Acmad Rizaldy P. Moti earlier said members looking for financial assistance can file for a calamity loan.

“[W]e will do what we can to ensure that they will not be put in a difficult situation especially in trying times such as these,” Mr. Moti said in a statement on Wednesday.

President Rodrigo R. Duterte on Tuesday placed the entire country under a state of calamity for six months due to the spread of coronavirus disease 2019 (COVID-19) in the country.

COVID-19 has infected 193 in the country as of Wednesday noon, with casualties rising to 14 as of press time.

In 2019, Pag-IBIG Fund’s net income inched up by 4% year on year to P34.37 billion. Its assets likewise jumped by 13% to a record high P603.39 billion.

Funds disbursed for housing loans increased by 15% to P86.74 billion from P75.31 billion in 2019. Meanwhile, cash loans worth P53.83 billion were released to over 2.5 million members. — L.W.T. Noble

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