Biz Buzz: Professor MVP

The new coronavirus pandemic is schooling PLDT Inc. in more ways than one. The scale of COVID19’s impact has forced PLDT and other companies to rethink their business models.

PLDT chair and CEO Manuel V. Pangilinan said it had even forced them to rethink their boardroom.

Time was when boardrooms of large companies were dominated by a vast table to accommodate their distinguished directors and even senior management. A new era of social distancing has ended those days, at least until a vaccine or cure is found.

Musing on this during PLDT’S annual meeting, Pangilinan said they have looked at several models and the best approach was for a “classroom design.”

It will be a classroom like no other. Pangilinan said it should have “very nice” chairs that would allow their occupants to swivel and engage with each other.

For now, we presume Pangilinan will be the teacher for the foreseeable future until he finds a successor to lead PLDT. —MIGUEL R. CAMUS

Recovering demand

Cargill, fast food giant Jollibee’s major supplier of chicken for its famous Chickenjoy, also saw a decline in the demand for its products in the past months as food establishments closed.

But the American agribusiness giant is now seeing an improvement in its operations following the easing of the community quarantine here.

“Initially, we do see a level of ramping up of demand across some of the sectors we operate in—perhaps on account of more industries reopening after the stricter lockdowns— but we have yet to see if this is a trend signaling the sustained reversal of the economic downturn or just an initial response to months of being closed,” the company said in an email interview with the Inquirer.

“We remain hopeful that sustained improvement will come around in due time, but this may be a gradual process that will parallel the speed at which general consumption recovers in the economy,” it added.

Due to restrictions imposed to contain the new coronavirus pandemic, Cargill has decided to enter the retail space and stretched its services to commercial outlets and grocery stores to make its products available to more consumers.

It currently operates five business units across the country, including poultry meat production, animal nutrition, and grains and oils.

But even if restrictions have been relaxed, Cargill continues to apply strict precautionary measures, including work-fromhome arrangements, quarantine measures, rotating skeleton workforce and the provision of sanitary and disinfection kits and appropriate personal protective equipment for employees.

For its poultry meat production plant in Sto. Tomas, Batangas, where C-joy, its joint venture with Jollibee is operating, the company also continues to provide shuttle services and on-site accommodation for employees. —KARL R. OCAMPO

Helping hand

The Sugar Regulatory Administration (SRA) has received a major grant aid from Japan in the form of farm machinery and implements amounting to 800 million Japanese yen (P373 million), bringing the sector one step closer to mechanization.

A statement released by the SRA stated the equipment would be distributed to qualified Sra-accredited planters’ organizations and block farms, with the primary objective of developing the sugarcane industry.

The program development was two years in the making, according to SRA administrator

Hermenegildo Serafica. The agency is now preparing the implementing guidelines for the project, which was based on an initial agreement with the Department of Finance and the government of Japan.

The sugar industry has been bogged down by many problems, the biggest of which are the erratic weather patterns stifling production.

Sugar output declined in the last two crop years after yielding a record-high volume of 2.5 million metric tons (MT) in crop years 2016-2017.

This year, sugar output could fall to 2.03 million Mt—the lowest level in nearly a decade—due to the combination of El Niño and rains in the country’s key sugar-producing areas.

The use of technology is expected to help the industry become less vulnerable to such risks. —KARL R. OCAMPO

Best house

The Metrobank group’s First Metro Investment Corp. (FMIC) is the “Best Investment Bank in the Philippines” while brokerage arm First Metro Securities brokerage Corp. is the “Best Broker,” according to Hong Kong-based publication Financeasia.

In 2019, FMIC received the same award from Asiamoney, another Hong Kong-based international publication.

“The competition is always fierce, but this year it also took place against an unprecedented global backdrop thanks to COVID-19. What stood out was the banks’ resilience and their ability to adapt to fast-changing conditions, not least in enabling most of their employees to successfully work from home,” Financeasia said.

FMIC president Jose Patricio

Dumlao said: “The honor we received from Financeasia speaks of First Metro’s in-depth understanding of the Philippine capital markets and remarkable ability to provide sound market guidance and innovative financial solutions to clients particularly in a volatile and uncertain market environment. Despite a difficult market condition, First Metro managed to pull off a number of landmark deals during the award’s covered period.”

During that period, FMIC accomplished 11 bond market transactions, two initial public offerings, and two M&A (merger and acquisition) deals. Among the notable deals are the maiden bond offerings of Orix Metro Leasing and Finance and Asia United Bank, the Premyo Bonds of the Bureau of the Treasury, the stock market debut of Axelum Resources and Fruitas Holdings, and the asset-for-share swap between GT Capital Holdings and Property Company of Friends.

“This award only inspires us to continue to work harder and deliver best in class investment banking services, help our clients seek opportunities and pursue their growth aspirations even through this challenging business climate,” Dumlao added.