BusinessMirror April 29, 2020 by BusinessMirror

Banks to maintain liquidity thru longer ECQ By Tyrone Jasper C. Piad

HE banking sector pledged to maintain liquidity and help economic recovery amid the coronavirus disease 2019 (Covid-19) pandemic as it remains committed to offering services to the public following another lockdown extension. “While the banking sector continues to provide critical support to the economy and the general public, efforts are now geared toward economic recovery of the country,” the Bankers Association of the Philippines (BAP) said in a statement on Tuesday. BAP said it was working with regulators and legislators to en-

PHILIPPINE Army soldiers escort volunteers delivering essential food supplies in Barangay Batasan in Quezon City from the food aid program “Bayan Bayanihan,” a partnership between the Asian Development Bank, the government and the private sector in coordination with the Army, for families affected by Covid-19. NONOY LACZA

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sure liquidity and recovery of industries significantly impacted by the pandemic. This, as the group noted that banks and financial institutions have already adapted their operations according to the “new normal” following the pandemic-induced lockdown. “The [BAP] reiterates the commitment of the industry to provide unhampered banking services and ensure the industry’s resiliency and cooperation as we go into another two weeks of extended quarantine,” it said. The lockdown is now imposed until May 15. “The public is likewise reminded to ensure that their information is protected against cybercrime

that can proliferate during this time,” BAP added. In separate advisories, banks announced that they would be offering continued relief to ease the burden of the customers amid the extended enhanced community quarantine in Metro Manila and other areas deemed high-risk owing to still-rising Covid-19 infections. BDO Unibank Inc. is extending free money transfers to other banks via InstaPay until May 15. Outside the platform, however, a service fee of P100 will be charged. Philippine National Bank (PNB) said that it was extending grace period for the loan payment of qualified PNB credit card holders and borrowers. This applies for

accounts with payment due dates within March 17 to May 15. “You also have the option to pay on your original due date,” the bank added. Security Bank Corp. is waiving all automated teller machine withdrawal fees. Rizal Commercial Banking Corp. is also waiving fees for money transfers via InstaPay and PESONet until May 15. Meanwhile, Bank of the Philippine Islands (BPI) reminded anew the public of phishing scams. “Remember that BPI will never ask for your one-time pin, credit or debit card details, and other account information to qualify for fee waiver or payment holidays,” it said.

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GOVT RAISES P119.1B FROM USD BOND SALE www.businessmirror.com.ph

Wednesday, April 29, 2020 Vol. 15 No. 202

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DTI PITCHES PHASED REVIVAL OF SERVICES, MANUFACTURING By Samuel P. Medenilla

HE government is now moving to start the cautious revival of the manufacturing and services sectors on Friday as it relaxes stringent quarantine measures against novel coronavirus disease (Covid-19) in most parts of the country. In an online press briefing on Tuesday, Presidential Spokesperson Harry Roque said the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) has approved the recommendation of the Department of Trade and Industry (DTI) to allow the resumption of manufacturing activities for “non-essential items” in areas that will be placed under general community quarantine (GCQ). The DTI is pushing to restore the manufacturing of the beverages (non-alcoholic and alcoholic drinks); cement and steel; electrical machinery; wood products, furniture; non-metal products; textiles/ wearing apparel; tobacco products; paper and paper products; as well as rubber and plastic products; Also on DTI’s list are coke and refined petroleum productions; other non-metallic mineral products; computer, electronic and optical products; electrical equipment; machinery and equipment; motor vehicles, trailers and semi-trailers; and other transport equipment. Continued on A2

FRONTLINERS at Santa Ana Hospital in Manila enjoy a little break as they celebrate its 10th founding anniversary. The hospital was built in 2010 through the partnership of the City of Manila and Lucio Tan’s Tan Yan Kee Foundation. The Manila Center for Infectious Disease Control is housed in the hospital. BERNARD TESTA

By Bernadette D. Nicolas

HE Philippines raised $2.35 billion (about P119.1 billion) in 10-year and 25-year dollar-denominated global bonds, marking its successful return to the international debt market for the second time this year despite investor jitters on the global economic fallout from the coronavirus disease 2019 (Covid-19) pandemic. The transaction was also a landmark deal for the government as it was able to achieve the lowest coupon ever for a 10-year and 25-year benchmark issuance of the country even amid an environment gripped with pandemic fear, National Treasurer Rosalia V. De Leon said. “This makes the Philippines, at least for the time being, a diamond in the sovereign issuance space for we were able to convert immense pressure into an opportunity to dazzle in brilliant shine,” De Leon said in a statement on Tuesday.

The Bureau of the Treasury (BTr) said $1.35 billion of the $2.35 billion was raised from the 25-year tenor, while $1 billion was from the 10-year tenor. “Proceeds of the issuance will be for the Republic’s general purposes, including budgetary support,” the BTr said.

Baa2 rating

MOODY’S Investors Service (Moody’s) said on Tuesday it has assigned senior unsecured ratings of Baa2 to the dollar-denominated global bond offerings by the gov-

PESO EXCHANGE RATES n US 50.7400

ernment of the Philippines, maturing in 2030 and 2045. According to the terms and conditions available to them, Moody’s said the bonds issued under the government’s existing shelf program filed with the Securities and Exchange Commission in the US “constitute direct, unconditional and unsubordinated obligations of the Philippines government.” Moody’s said the Baa2 rating it gave is characterized by the Philippines’s “sustained strong economic performance, a strengthening fiscal position and limited vulnerabil-

ity to external shocks.” “The Philippines’s relatively large economy and high growth potential support its capacity to absorb shocks. The country’s favorable demographics support steadily rising labor inputs and potential growth, while keeping the burden of ageing-related costs on government finances low,” Moody’s said. “At the same time, the Philippines’s per capita income, which is lower relative to peers, at roughly $8,900 in 2018 at purchasing power parity compared with around $26,000 for Continued on A2

AN elderly homeless woman takes a rest in a waiting shed in Manila. Restrictions enforced to stop the coronavirus pandemic are taking their toll on the elderly, leaving them emotionally as well as physically alone. NONIE REYES

n JAPAN 0.4732 n UK 63.0749 n HK 6.5468 n CHINA 7.1598 n SINGAPORE 35.7727 n AUSTRALIA 32.7933 n EU 54.9666 n SAUDI ARABIA 13.4947

Source: BSP (April 28, 2020)

News BusinessMirror

A2 Wednesday, April 29, 2020

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BIR cuts 2020 collection target by 12.3% as Covid hits business T By Bernadette D. Nicolas

HE Bureau of Internal Revenue (BIR) slashed its collection target this year to P2.260 trillion, down by 12.27 percent from its initial goal of P2.576 trillion, as businesses took the hit from the Covid-19 pandemic.

The BIR said in its newly released Revenue Memorandum Order No. 12-2020 signed by BIR Commissioner Caesar R. Dulay that their new collection target

was approved by the Development Budget Coordination Committee (DBCC) on March 26. The P2.260-trillion revised collection target is comprised of

P2.206-trillion BIR operations target and P54.584 billion for nonBIR operations target. By way of explaining the reduction in the BIR collection goal, Deputy Commissioner Arnel Guballa said in a text message to the BusinessMirror: “Businesses slowed down by Covid-19. Many industries affected, [such as] airlines, hotel, tourism, manufacturing. No importation and other non-essentials closed down due to ECQ (enhanced community quarantine).” According to the April 27 revenue memorandum order, the revised BIR operations target of P2.206 trillion was lower by 11.59 percent or P289.296 billion compared to the initial goal of P2.495 trillion. The non-BIR operations target

was also reduced by 32.45 percent to P54.584 billion from the initial goal of P80.807 billion. Of the revised BIR operations target this year, the bureau is now aiming to collect the bulk or P1.118 trillion from taxes on net income and profits, P413.336 billion from value-added tax, P364.206 billion from excise taxes, P137.403 billion from percentage taxes, and P172.801 billion from other taxes. As for the new non-BIR operations goal, the BIR is targeting to collect P44.071 billion from taxes on net income and profits and P10.513 billion from other taxes. As of mid-April this year, the BIR—which accounts for 78 percent of the state-tax collection capacity—only collected P480.64 billion, slipping by P398.54 billion or

45.3 percent of its P879.18-billion target for the period. The BIR’s actual collection as of mid-April this year is also 32 percent below or P226.15 billion lower than last year’s P706.79 billion due to the extension of deadlines for the filing and payment of income and other taxes. In terms of total excise tax collections across all categories, the BIR also failed to hit its P161.84billion target for the January to April 15 period as actual payments only amounted to P76.47 billion or 47.25 percent of the collection goal. Its actual excise tax collection for the period also dropped by 33 percent this year compared to P114.23 billion in 2019. The BIR suffered huge losses from excise tax collections across

all product categories, with tobacco and alcohol—consistent large excise tax collection drawers—recording significant declines. Excise tax collections from tobacco reached only P33.19 billion as of mid-April, dropping by 42.5 percent from last year’s P57.75billion collection. On the other hand, excise tax collection from alcohol products for the same period amounted to only P17.85 billion, a 26-percent dip from P24.09 billion in 2019. Despite the significant decline in the revenue collections of both the BIR and the Bureau of Customs, Finance Secretary Carlos G. Dominguez III earlier assured the public that the country remains “financially able” to meet the unexpected challenges of the Covid-19 pandemic.

A BARANGAY official reminds residents to practice physical distancing as a huge crowd of claimants gather to receive the government’s Social Amelioration Package (SAP) at Batasan Road in Quezon City. Under SAP, the DSWD will provide cash aid of from P5,000 to P8,000 to at least 18 million poor families, depending on the prevailing minimum wage rate in their area, for two months. NONOY LACZA

GOVT RAISES P119.1B FROM USD BOND SALE Continued from A1

the median Baa-rated sovereign, is an important constraint on both economic strength and the rating.”

Investor confidence

FINANCE Secretary Carlos G. Dominguez III said the strong demand for the bond issuance showed investor stance on the Philippine economy. “The success of this bond float despite the Covid-induced volatility is also reflective of the global recognition of, and support, for the [government’s] four-pillar strategy to mitigate the impact of the global health crisis,” he said. Finance officials expect the transaction is also expected to settle on May 5, 2020. The new 10-year global bonds have a coupon rate of 2.457 percent, while the 25-year tranche was priced at a coupon rate of 2.950 percent. The 10-year global bonds were priced at US Treasury spreads of T+180 basis points, after an initial pricing guidance of T+220 basis points area. On the other hand, the 25-year tranche was priced 42.5 basis points tighter than the initial pricing guidance of 3.375 percent. Citigroup, Credit Suisse, Goldman Sachs (Asia) Llc, Morgan Stanley, Standard Chartered Bank and UBS acted as joint book-runners for the transaction.

Matter of timing

THIS is the second time that the Philippines tapped the offshore bond market after it sold $1.33 billion (€1.2 billion) from euro-denominated global bonds early this year. In 2019, the government sold $1.5 billion in dollar-denominated global bonds and raised €750 million from its euro bond offering. “We have been expecting another successful USD-denominated bond issuance despite the challenges the global economy is currently facing,” Finance Undersecretary Mark Dennis Y.C. Joven said. “With the Sovereign’s credibility in the international market, coupled with its solid economic fundamentals and long-term growth prospects, this successful issuance has only been a matter of timing,” added Joven, who also heads the Department of Finance’s International Finance Group.

Infra spending down 21% as of end-Feb I

NFRASTRUCTURE spending as of end-February slid by P20.7 percent year-on-year mainly due to the base effect of high infrastructure spending in the same period in 2019. In its latest assessment report, the Department of Budget and Management (DBM) said infrastructure and capital outlays for the first two months of the year settled at P93.9 billion, down by P24.5 billion from P118.4 billion in the same period last year. “The decrease is mainly attributed to the base effect of high infrastructure expenditures in the same period last year brought about by the payment of prior year’s accounts payable for completed projects of the Department of Public Works and Highways (DPWH),” the DBM said. As of end-February, prior year’s

accounts payable of the DPWH for its capital outlays dropped to P35.2 billion from P82.2 billion a year ago. However, the DBM said this decline was partially offset by the nearly P13-billion increase in the DPWH’s current year accounts payable, the Department of National Defense’s Revised Modernization Program for the Armed Forces of the Philippines, and encashment of check floats. Overall government spending as of end-February reached P516 billion, up by 5.2 percent or P25.4 billion from P490.7 billion in 2019 on the back of higher allotment to local government units and spending for personnel services. For February alone, infrastructure spending also fell by 9.3 percent to P45.6 billion from P50.3 billion in the same month in 2019. Total government spending for Feb-

ruary also plunged by 12.2 percent yearon-year to P244.4 billion from P278.5 billion in 2019, attributed to the base effect of the Internal Revenue Allotment of local government units for January 2019—released in February—as well as lower interest payments. With the enhanced community quarantine (ECQ) to contain the spread of Covid-19, the DBM expects government spending to be lower than the program for March due to the temporary delays in project implementation. However, it projects that disbursements for March, and consequently for the first quarter of the year, to be higher compared to the same period last year. As of end-February, the remaining program balance amounts to P927.5 billion or 22.6 percent of the total P4.1-trillion obligation program for the year.

The budget department said it sees increased spending for the next few months as the government uses more funds for its Covid-19 response. This includes the purchase of medical supplies and equipment of the Department of Health, and release of cash subsidies to families and sectors affected by the ECQ. “Spending for the rest of the year will continue to be driven largely by implementation of Covid-19 related PAPs [programs, activities and projects], as well as other measures or strategies identified and recommended by the InterAgency Task Force for Emerging Infectious Diseases Technical Working Group on Anticipatory and Forward Planning on how to move forward with the ‘new normal’ situation given the pandemic,” it said. Bernadette D. Nicolas

DTI pitches phased revival of services, manufacturing Continued from A1

For the services sector, the DTI wants the resumption of the operations of malls and commercial centers; wholesale and retail trade and repair of motor vehicles and motorcycles; motion picture, video and television program production; sound recording; publishing activities; and even barbershops and salons. Related story on the “new normal” in malls, on page A8.

Establishments engaged in these activities will be allowed to open subject to minimum health standards set by the IATF. All government offices and big-tick-

et construction projects under the Build, Build, Build program will also resume in GCQ areas.

Limited ECQ

THE activities were previously banned for the entire Luzon, which was placed under enhanced community quarantine (ECQ), after a spike in Covid-19 cases on the country’s largest island. After the evaluation of the healthcare capacity and number of Covid-19 cases of each local government unit (LGU), the IATF decided to limit the ECQ, which will remain in effect from May 1 to 15, to 10 “high-risk” Covidaffected areas.

These include the National Capital Region (NCR); the entire Central Luzon except the province of Aurora; Calabarzon; the provinces of Pangasinan, Benguet, Iloilo, Cebu; as well as the cities of Baguio, Cebu and Davao. During the ECQ, all onsite business operations, except those which deal with essential goods and services like food production, logistics, utilities and health care, were not allowed to continue.

Moderate, low-risk

ROQUE said areas with moderate or low Covid risk will be placed under GCQ starting May 1, 2020. Some activities will remain banned

for both ECQ and GCQ areas until the end of the Covid-19 crisis. These include gyms/fitness studious and sports facilities; entertainment mass gatherings like theaters and cinemas; business-related mass gatherings like conferences and trade shows; and politically related mass gatherings, among others. The DTI’s proposal is contained in IATF’s Resolution 29, which remains subject to President Duterte’s approval during the IATF meeting on Wednesday. Roque said the DTI is confident that almost all of its recommendations will be eventually approved by Duterte.

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Popcom lists regions likely to ‘age faster’ than the rest By Cai U. Ordinario @caiordinario

HE population of the Ilocos region, Western Visayas, and Cagayan Valley would likely age faster than other regions nationwide, according to the Commission on Population (Popcom). Popcom head Undersecretary Juan Antonio Perez III told the BusinessMirror that this is based on the 2020 population projections of the Philippine Statistics Authority (PSA). Perez said the proportion of seniors in Ilocos is 10.68 percent; Region 6, 10.39 percent; and Region 2, 9.63 percent. These numbers are near the 14 percent that is needed to consider a population of a country, or region, as aging. “These are probably the regions that will be the first to see an aging work force. With 62 percent to 63 percent of our population in the work force, we have a young work force that could sustain GDP [gross domestic product] increase if most are employed, particularly women,” Perez said. Nationally, Perez said, Filipinos aged 60 years old and over only

represent 8.7 percent of the Philippine population. This means, he said, the country will not start aging until 2035. Further, he said the population of seniors in the mega-growth regions National Capital Region (NCR), or Metro Manila, Central Luzon and Calabarzon is around 8.78 percent. This is slightly higher than the 8.65percent proportion of seniors in the rest of the country. However, this is not that high compared to Ilocos, Cagayan Valley, and Western Visayas as well as the 14 percent needed to say that a certain population is aging. “The mega region [NCR, Central Luzon and Calabarzon] remains attractive for all ages because of low poverty. For older persons, the presence of health services of good quality is an added incentive,” Perez said. Data showed that there are 9.47 million seniors nationwide. Around 3.7 million are living in Calabarzon, Metro Manila and Central Luzon. There are 1.35 million Filipinos aged 60 years and above living in Calabarzon; 1.21 million in NCR; and 1.14 million in Central Luzon.

BI reminds foreigners to adhere to ECQ rules By Joel R. San Juan @jrsanjuan1573

HE Bureau of Immigration (BI) on Tuesday warned foreigners of possible arrest and deportation if they will be found disobeying protocols being imposed by the government for the implementation of the enhanced community quarantine (ECQ) to curb the Covid-19 outbreak. Immigration Commissioner Jaime Morente issued the warning after the agency said it would investigate the Dasmariñas Village incident in Makati City involving Spanish national Javier Salvador Parra and Makati policemen and will determine if the former had violated immigration laws. Makati Police M/Sgt. Roland Madrona filed criminal charges against Parra who resisted arrest following an altercation with the former over the implementation of ECQ inside the posh village. Madrona filed the complaint before the Makati Prosecutor’s Office accusing

Parra of direct assault, violation of Article 151 of the Revised Penal Code, or resistance and disobedience to person of authority, violation of Bayanihan to Heal as One Act, violation of Makati City ordinance on wearing of face mask in public areas and unjust vexation. Video footages of the confrontation between Parra and Madrona has gone viral in social media, soliciting mixed reactions from some individuals and groups, including Sen. Panfilo Lacson who called for Parra’s deportation. The case stemmed after Madrona and a Barangay Dasmariñas watchman reprimanded Parra’s helper for not wearing a face mask while watering their lawn. The househelp went inside the house to get the mask and apparently informed her employers about it. Parra and his wife went out to confront the police and questioned its “wrongful” implementation of the ECQ.

Editor: Vittorio V. Vitug • Wednesday, April 29, 2020 A3

Post-quarantine decorum: House leaders file ‘new normal’ measure By Jovee Marie N. Dela Cruz @joveemarie

OUSE leaders filed a bill on Tuesday that provides policies for the “new normal” in workplaces and public spaces after the lifting of the restrictions imposed by the government to contain the spread of the new coronavirus disease 2019 (Covid-19). House Bill 6623, or the proposed “New Normal for the Workplace and Public Spaces Act of 2020,” aims to prepare and educate Filipinos through new norms of social, or physical distancing and safety measures, in government and private offices, schools, commercial establishments and other public spaces. Speaker Alan Peter Cayetano and Deputy Speaker Luis Raymund Villafuerte, the principal authors of the bill, said the measure is anchored on strict mandatory safety and physical distancing protocols once containment measures are lifted and economic and social activities are resumed on a limited scale in Metro Manila and the rest of the country. Under HB 6623, the protocols under this new normal environment—where Covid-19 remains as a health risk worldwide—will be in place for three years depending on the official declaration by President Duterte upon recommendation of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) based on “the prevailing guidelines of the World Health Organization (WHO) and the consensus of the international medical community conclusively show that a viable vaccine has contained, or eradicated Covid-19.” Guided foremost by the principles of protecting the most vulner-

able, ensuring health and safety for all, guaranteeing respect for human rights, and facilitating the inclusive and holistic economic well-being of all sectors and industries, the bill envisions a wholeof-society approach in ushering a hopeful yet well-planned path toward the new normal. Villafuerte said among the measures to be imposed in public places under HB 6623 are the mandatory wearing of masks, the availability of handwashing or sanitizing stations in public areas, temperature checks and physical distancing of at least 1 meter, but preferably 2 meters, in all public spaces. He said in public transportation, physical distancing also applies during queuing for tickets and in the interiors of vehicles. Contactless payment mechanisms will be implemented, and passengers will be required to wash their hands, or sanitize, before boarding publicutility vehicles (PUVs). Villafuerte added the operation of motorcycle taxis will remain suspended to prevent the spread of the virus through the use of common helmets and close contact between drivers and their passengers.

Schools

FOR schools and other learning institutions, on-site classes, sports and other extracurricular activities shall remain suspended subject to consultation with the Department of Education (DepEd) and the Commission on Higher Education (CHED). Online learning platforms will, in the meantime, be the primary mode of learning for students in all public and private schools. Once on-site classes gradually resume, the number of classes should

be reduced and staggered class days should be implemented to enable students and teachers to comply with physical distancing protocols and other safety measures. “The continuing community transmission of the virus in Metro Manila and in other communities across the country and the risks of an even more dangerous resurgence demand that the resumption of certain aspects of the country’s economic and social life be governed by standards and protocols that would simultaneously protect the vulnerable from the disease and prevent transmission from asymptomatic or untested carriers of the virus, while ensuring the restoration of livelihood opportunities and sources of income for all,” the bill states.

Restaurants

UNDER the bill, restaurants and other food service places may resume operations under a new normal, but initially only for take-out and delivery. Buffets and salad bars would be prohibited once dine-in services are gradually introduced, 2-meter distancing between diners should be strictly followed, and disposable, or non-shareable menu booklets and cutlery, should be used as much as possible.

Other spaces

MEANWHILE, in banks, supermarkets, malls and most commercial spaces, the entry of people will be limited at any given time, and online transactions and shopping services, as well as cashless and contactless payments should be encouraged. Salons, parlors and spas, once allowed to reopen, should strictly observe frequent handwashing, disinfecting and cleaning practices,

including the sanitizing of scissors and other tools. Applicable safety and distancing measures should also be applied in construction sites, industrial workplaces, offices, call centers and other public spaces. To promote online transactions, contactless payments and services, and facilitate contact tracing, the bill calls for the fast-track and full implementation of the law on the establishment of a national ID system along with the National Broadband program of the Department of Information and Communications Technology (DICT), as well as the proposed bill on e-government systems, which Villafuerte authored. HB 6623 provides for the creation of a technical working group (TWG) composed of the secretaries (or the duly authorized representatives) of the Departments of the Interior and Local Government (DILG), Finance (DOF), Trade and Industry (DTI), Labor and Employment (DOLE); DICT; the National Economic and Development Authority (Neda) and the head of the IATF-EID to craft its implementing rules and regulations (IRR) after it is signed into law by the President. The bill also imposes cash fines and/or prison terms for violators. Under the bill, the Congressional Oversight Committee shall maintain its oversight function over the implementation of the act and shall monitor its implementation in local government units across the country. Aside from Cayetano and Villafuerte, HB 6623 was coauthored by House Majority Leader Martin Romualdez; Deputy Speakers Paolo Duterte and Loren Legarda; and Reps. Eric Yap, Michael Defensor, and Jose Antonio Sy-Alvarado.

‘Nothing irregular’ on AFP chief’s request for virus med from China, Lorenzana says By Rene Acosta @reneacostaBM

EFENSE Secretary Delfin N. Lorenzana on Tuesday said there was nothing irregular when Armed Forces of the Philippines Chief of Staff Gen. Felimon Santos Jr. recently sought the assistance of Chinese officials to buy a vaccine from China for friends afflicted with Covid-19. Lorenzana issued the statement following reports that Santos sought

the assistance of the Chinese embassy in Manila to purchase Chinesemade medicine for unidentified friends found positive for the novel coronavirus. The chief of staff made the request through a letter sent to the Chinese embassy through the Defense Armed Forces Attache (DAFA). “I see nothing wrong with General Santos writing a letter to the Chinese Ambassador for assistance to procure Carrimycin tablets, a cure for Covid, available only in China,

for his friends who are infected with Covid-19,” Lorenzana said. “But Gen Santos withdrew his request upon learning that our FDA [Food and Drug Administration] has not approved the drug for use in the Philippines,” he added. According to Lorenzana, Santos was infected with Covid-19, and although asymptomatic, “went through the fear and anguish of being infected with a deadly virus.” One of the medicines he took was Carrimycin, which was given to him

by a Filipino-Chinese friend. The medicine is controlled by the Chinese government. “What is wrong with wanting to help those infected with Covid?” Lorenzana asked. “The letter may have been out of place, i.e., should have been coursed through the DFA [Department of Foreign Affairs]. He had not violated any regulations nor imperiled the security of the country. Let us put the matter to rest,” he said.

Courts in ECQ areas remain closed until May 15–SC

’19 Bar examination results out online today

HIEF Justice Diosdado Peralta said the physical closure of courts within the enhance community quarantine (ECQ) areas will remain until May 15. On the other hand, all courts under general community quarantine (GCQ) would be open starting May 4, but will function with skeletal staff to assist the judge and act only on urgent matters. In Administrative Circular 35-2020, Peralta said all courts in ECQ areas will remain physically closed until May 15, and may be reached only through their respective hot line numbers, e-mail addresses and/or Facebook accounts posted on the web site of the Supreme Court. But, the chief magistrate clarified that

HE wait is finally over for the 7,699 aspiring lawyers as the SC is scheduled to announce today (Wednesday, April 29, 2020) the result of the 2019 Bar examinations. However, due to the current state of public health emergency in the country brought about by the Covid-19 pandemic, the SC has advised the Bar examinees to just await for the results online. “In light of the government’s call for social distancing to prevent the spread of Covid-19, everyone is advised to stay in their respective homes and check the results online,” the Office of the Bar Confidant said. The Court is expected to hold a special en banc session to order the release of the names of the 2019 Bar passers. In the previous years, a LED wall was put up at the SC compound in Padre Faura to show the list

while all courts are physically closed until May 15 in areas under ECQ, their operations will continue from 9 a.m. to 3 p.m. (Monday to Friday). During this period, the SC said courts will continue accept and resolve cases filed online. “The online filing of criminal complaints and information [criminal charges], posting of bail, and submission of other urgent pleadings shall continue to be in effect until 15 May 2020 in the ECQ areas.” Covered by the extended ECQ issued by President Duterte are the National Capital Region, Benguet, Pangasinan, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac,

Zambales, provinces in the Calabarzon, Oriental Mindoro, Occidental Mindoro, Albay, Catanduanes, Aklan, Antique, Iloilo, Cebu City, Davao del Norte, Davao City, and Davao de Oro. The circular reiterated its previous directive for justices and judges to designate skeleton staff for the duration of the ECQ. All hearings in the ECQ areas, except urgent matters are still suspended. Night courts and Saturday courts remain suspended, including hearings except on urgent matters. While under ECQ, the justices and judges in these areas are still required continue drafting decisions and orders in their respective residences. Joel R. San Juan

of Bar passers. This year, no visitors shall be allowed to enter the SC compound. It added that Associate Justice Estela Perlas-Bernabe’s message as chairman of the 2019 Bar will only be uploaded in the SC web site. Passers were also advised to wait for further announcements on the clearance procedure, oath-taking ceremony, and roll-signing. A total of 7,699 out of the 8,245 candidates finished the exams held at the University of Santo Tomas last year. In 2018, a total of 1,800, or 22.07 percent, out of the 8,158 examinees who took the 2018 Bar Examinations passed. The percentage is lower than the 25.5 percent (1,724 out of 6,748) examinees who passed the 2017 Bar Examinations. Joel R. San Juan

With recent rebel attacks, Duterte says no peace talks with communists for now

RESIDENT Duterte on Monday declared there would no longer be a new round of peace talks with communist insurgent groups for now following the recent spate of rebel attacks against government forces. In a late night online public address, the President said he will defer any ne-

gotiations with the Communist Party of the Philippines (CPP) after its armed wing, the New People’s Army (NPA), attacked government forces on relief mission amid the novel coronavirus disease (Covid-19) pandemic. The CPP, through its spokesman Marco Valbuena, stated: “We were

not surprised with his declaration. Duterte’s policy has been an all-out war since 2017. Even in the face of a crisis, he does not want to touch his budget allotted to purchase guns, bombs, ammunitions, cannons, helicopters, drones and fighter jets.” “The people are very hungry, but

war still preoccupies the mind of Duterte,” he added. President Duterte declared, “There is no more peace talks to talk about. I am not and I will never be ready for any round of talks because simply the NPA, the Communist Party of the Philippines, has no respect either for their spoken

words, or in their deeds, of killing soldiers who are on humanitarian missions.” The latest reported attack happened in Davao City on April 22, wherein NPA members attacked government troops while distributing government cash aid to Covid-19 affected communities. Presidential spokesman Harry

Roque branded the NPA forces involved in the attack as “bandits.” To note, President Duterte declared a unilateral cease-fire with the NPA last month to allow military personnel to focus in assisting government’s antiCovid-19 measures. Samuel P. Medenilla and Rene Acosta

A4 Wednesday, April 29, 2020 • Editor: Vittorio V. Vitug

Economy BusinessMirror

UPSE prescribes ‘gradual reopening’ of economy to forestall virus spread

By Cai U. Ordinario

@caiordinario

HE reopening of the economy must be done gradually to prevent the spread of the coronavirus 2019 (Covid-19), according to a study released by the University of the Philippines School of Economics (UPSE). In the paper, titled “A Risk Assessment on the Covid-19 Situation in the Philippines: Implications on the ECQ Policy,” authors led by Marikina Rep. Stella Quimbo said the gradual reopening of the economy need to be accompanied by mass testing. The authors said the lockdown has been effective in containing the spread of the virus, based on their analysis. Mass testing can help ensure that the “gains” of efforts to curb the spread of Covid-19 are not wasted under the new normal. “Any degree of reopening of the economy, we must ensure that we maintain such manageable spread of the virus. This can be done most effectively by mass testing,” the authors said. “With mass testing, we are able

to ensure that as individuals leave their households, their physical presence in transportation networks and workplaces will not cause the further spread of the virus,” they added. The gradual opening up of the economy starts with the implementation of border control. The authors said provinces that are Covid-19 free must ensure that there are new entrants in their locality to maintain their status. The authors also said there is a need to achieve a 100 percent contact tracing for all Covid-19 cases. Based on their analysis, around 791 Filipinos who tested positive for the virus had “unknown residence” making contact tracing impossible. “DOH [Department of Health] must therefore review its contact

tracing protocol and demand its strict implementation by the local health offices,” the authors said. For provinces without Covid-19 cases, the authors said, there is a need to implement two one week phases in opening up their economies. The authors said Covid-19 free provinces with low and mediumrisk of getting infected by the virus should be prioritized to prevent overburdening the health system. This should be followed in the second week for provinces that are Covid-19 free but with high risk for infection. They said data set to be released on May 15 on disease surveillance can be used as guide to determine whether it is safe for provinces that are not Covid-19 free to reduce restrictions. Lifting restrictions, however, must be done gradually particularly in select areas of the economy, such as schools, farming and construction. This must also include the diligent practice of social distancing. “As we proceed with the gradual reopening of our economy and improve our knowledge on how to control virus spread, liberalizing workrelated policies can be achieved in stages. With the lifting of the ECQ [enhanced community quarantine

order], all economic activity can resume,” the authors said. Meanwhile, the authors also said a number of provinces placed under ECQ and general community quarantine (GCQ) need to be reassessed given that they are not high risk, medium risk or low risk. They said only 17 areas placed by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) under ECQ or GCQ can be retained. These 17 areas are Metro Manila, Rizal, Laguna, Cavite, Quezon, Camarines Sur, Aklan, Nueva Vizcaya, Agusan del Norte, Leyte, Ilocos Sur, Bukidnon, Romblon, Bohol, Camiguin, Northern Samar and Palawan. “Mass testing should be undertaken in geographic areas and workplaces so that hot spots are rapidly identified and contained,” the authors said. “In high-risk areas, such as NCR [National Capital Region], some increased economic activity can be tolerated provided that a protocol to ensure Covid-free workplaces, including Covid-free transport of workers to workplaces, is in place and can be properly enforced,” they added.

DOF presents spending breakdown of P352-B Covid-19 response fund

HE government has so far spent P258 billion on emergency subsidies and other forms of assistance to poor, low-income households and other vulnerable groups reeling from work stoppage due to the health crisis, the Department of Finance (DOF) said. In a news statement issued on Tuesday, DOF said the amount is 73 percent of the P352 billion that the government has released for Covid-19 response programs. Finance Secretar y Carlos G. Dominguez III said the P352-billion unplanned fund releases, which mostly involved reprogramming of existing appropriations in the 2019 and 2020 budgets to respond to the coronavirus disease 2019 (Covid-19) pandemic, came from the tax collections of state revenue agencies; income from actual dividend collections from governmentowned and -controlled corporations

(GOCCs); and concessional loans and grants provided by multilateral lenders such as the Asian Development Bank (ADB) and the World Bank. In a separate document released by the Department of Budget and Management (DBM) late Monday, the P352.29 billion was sourced from both the continuing appropriations under the 2019 national budget (P31.03 billion) and the 2020 national budget (P321.25 billion). Of the P352.29-billion cash allocations released for Covid-19 response, P214.37 billion was generated from discontinued programs, activities and projects under the programmed appropriations of the 2020 national budget, P9.10 billion was sourced from regular agency budget, P520.63 million from contingent fund, P500 million from National Disaster Risk Reduction and Management fund, and P41.1 million from trust receipts. The unprogrammed appropriations

under the 2020 national budget with a total of P96.72 billion was released from Support for Infrastructure Projects and Social Programs. Under the continuing appropriations of the 2019 national budget, P30.76 billion was sourced from discontinued programs, activities and projects while P274.45 million came from the regular agency budget. Meanwhile, the DOF also cited data from DBM, showing the government, as of April 23, has so far released a total of P200.42 billion for the Social Amelioration Program and other economic relief measures for poor households and other vulnerable groups. The amount was released by DBM to Department of Social Welfare and Development, which implements the SAP cash subsidies to some 18 million households. Another P6.435 billion was released to the Department of Labor and Employment (DOLE) for its assistance

program for affected workers. A total of P51 billion was released to the Social Security System (SSS) for the implementation of the Small Business Wage Subsidy (SBWS) program for some 3.4 million qualified workers of 1.6 million small businesses. The rest of P352 billion was spent by the government for its Covid-19 response efforts to the Department of Health (DOH) for the procurement of testing kits, and other essential medical supplies to contain the spread of the virus; the Department of Science and Technology (DOST) for the production of locally produced Covid-19 testing kits; other state agencies to finance the budget requirements for the temporary Covid-19 treatment and monitoring facilities, and the emergency repatriation of distressed overseas Filipino workers (OFWs); and the local government units for the allocation of the Bayanihan Grants to provinces, cities and municipalities. Bernadette D. Nicolas

Fuel-marking drive breaches 7-B liter mark, BOC reports By Bernadette D. Nicolas @BNicolasBM

HE volume of fuel marked by the government nationwide has breached the 7-billion liter mark as it continue to intensify efforts to plug revenue leakages amid the virus pandemic. Citing data from the Bureau of Customs (BOC), the bureau said in a news statement on Tuesday that the volume of petroleum products marked in all marking refineries and terminals nationwide has reached 7,041,752,018 liters from

September 2019 to April 23, 2020. By island group, Luzon has the highest share of marked fuel volume at 75 percent followed by Mindanao at 20 percent and Visayas at 5 percent. “BOC fuel marking operations will continue during the extended period of the community quarantine,” it said. Some 20 oil companies in the country participated in the program, BOC said. These include Pilipinas Shell Petroleum Corp., Petron Corp., Seaoil Philippines, Unioil Petroleum Philippines, Phoenix Petroleum Corp.,

Chevron Philippines Inc., Oilink International Bataan, Insular Oil Cor p., Total Philippines/Filoil, Jetti Petroleum Inc., PTT Philippines Corp., Marubeni Corp., Micro Dragon Petroleum Corp., Warbucks Industries Corp., High Glory Subic International Logistics, ERA1 Petroleum Corp., Golden Share Commerce and Trading Inc., SL Gas, Jade Link Subic Inc. and SL Harbor. The government aims to collect at least P20 billion this year, which is half the estimated P40 billion in revenue lost to oil smuggling in the country. Fuel marking makes use of a

unique chemical marker capable of being embedded at a molecular level in petroleum products—gasoline, diesel and kerosene—thereby enabling authorities to test, identify and distinguish petroleum products with paid excise taxes. Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law, petroleum products that are refined, manufactured, or imported to the Philippines, such as but not limited to unleaded premium gasoline, kerosene, and diesel fuel shall be marked by an official marking agent after payment of taxes and duties.

E-money to keep growth; ₧700-B inflow seen by 2021. . .

Sources

CUSTOMERS can get a hold of emoney through prepaid cards and mobile wallets, YCP said. “The former was introduced by the country’s top commercial banks and even by the established mobile wallet companies. The latter leads the e-money industry in terms of innovation,” it added. Majority or 31 of the 45 local commercial banks acquired an electronic money issuer license, introducing prepaid card alternatives to traditional bank accounts. YCP said

that this segment was being driven by Rizal Commercial Banking Corp. (RCBC) and BDO Unibank Inc. In terms of transaction volume, RCBC MyWallet took the lead with P55.7 billion in 2017, followed by BDO Cash Card at P52.4 billion the same year. Ayala-led G-Xchange Inc.’s GCash, meanwhile, is the front runner for the mobile wallet segment, recording most downloads and users. As of April 2019, the platform registered 991,200 downloads and 239,930 dai-

ly active users, according to Google Play data. “GCash is a clear leader in the mobile wallet segment, having approximately thrice the average downloads of its competitors,” YCP said. This was followed by Coins.ph and PayMaya Philippines Inc.

Toward financial inclusion

THE advisory firm noted that the Bangko Sentral ng Pilipinas (BSP) has been introducing initiatives to promote financial inclusion such as

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PESONet and InstaPay which allow electronic funds transfer service. “E-money may not carry the benefit of earning a deposit, but the ease of opening an e-money account and the variety of services it introduces, such as online bills payment and instant fund transfers, make it a key tool in achieving the BSP’s goal of financial inclusion,” YCP added. According to BSP’s Financial Inclusion Survey in 2017, only 22.6 percent or 22.8 million Filipinos have a bank account.

www.businessmirror.com.ph

‘Work from home’ trend climbs amid quarantine, study confirms By Roderick L. Abad Contributor

OR the second time around that the government-imposed enhanced community quarantine (ECQ) has been extended anew to May 15 in Metro Manila and other high-risks areas to contain the spread of the coronavirus disease 2019 (Covid-19), the Philippines joins the global trend of encouraging people to “work from home” (WFH) to ensure social distancing. According to the Lenovo global study, 87 percent of employees are ready to shift to WFH when required by their employers. Most had already been either encouraged (46 percent) or required (26 percent) to toil at the comfort of their homes as part of the mitigation measures against the virulent flu. What’s more, 77 percent of workers feel companies will be more open to, or push, to allow them work remotely once this global health emergency is over. “Our survey suggests that the employee experience was already changing before the pandemic hit,” said Michael Ngan, president and general manager of Lenovo Philippines. He cited, for instance, that in the United States the number of those regularly working from home has grown by 159 percent, and the same increase is mirrored in other markets. “While our current situation is extraordinary, we are seeing a real willingness from workers to adapt and adopt flexible work arrangements. This confirms that corporate technology investments are paying off, as most people now feel productive at home and believe that the work force will move more in this direction once the crisis has passed,” the top executive noted. Even when the lockdown period is lifted, the Philippine government sees a reduction in the economic activity due to the peoples’ hesitation to engage. Prior to Covid-19, WFH has already been pushed as a way to address the perennial traffic problem, particularly in Metro Manila. In fact, Republic Act 11165, oth-

erwise known as the Telecommuting Act, was signed into law so employees can work at home or remotely outside the workplace. Telecommuting also buttresses the nation’s rising gig economy that thrives on recruiting workers on a flexible and freelance setup via online platforms. At present, the Philippines is ranked sixth in the world and is the fastest-growing market for the gig industry, with a 35-percent hike in freelance income year-on-year, per the Payoneer’s 2019 Global GigEconomy Index report. The country’s gig economy is expected to expand further this year, mainly due to WFH that benefits workers to have flexible schedules and the opportunity to prioritize work based on their personal time, plus the ongoing pandemic. This call for investment of companies in smarter mobile technologies to help boost employee productivity at home or outside the office confines. Changing labor demographics, likewise, contribute to the popularity of WFH. The millennials and Generation Z employees comprise almost 60 percent of the work force today. Because they grew up with video on demand, networked video games, and video communication platforms, these digital natives propel the development and adoption of technology for remote working and collaboration. Given the “race for talent,” organizations now rethink their workspace, technology and culture to attract and retain the best people. A global study of Harvard Business School in 2018 that engaged 6,500 business leaders revealed that more than 60 percent of them predicted that employee expectations for flexible working will greatly affect the future of work. Recently, a human resources consulting firm disclosed that most of employers still hire talent notwithstanding the anticipated impact of Covid-19 on the business community. Late February this year, 44 percent of the survey respondents said that they already offered remote working as a benefit to either all of their staff or select employees and functions.

Canned fish craze: Group urges govt to adopt sardines conservation plan By Jasper Emmanuel Y. Arcalas @jearcalas

S Filipinos scramble to stock up on canned sardines during this time, international nongovernment organization (NGO) Oceana urged the government to adopt a national management plan that would conserve and protect the fish specie. In a statement on Tuesday, Oceana called on the Department of Agriculture (DA) and the Bureau of Fisheries and Aquatic Resources (BFAR) “to promulgate the longoverdue National Sardines Management Plan [NSMP].” Oceana argued that sardines remain as one of the most undervalued specie in the Philippines—maybe because of it size—in terms of protection and management mechanism. For one, it is one of the least pricey seafood sources of protein for most Filipinos, Oceana added. “Fisheries Management Plans are an excellent way to organize the existing biological, economic, and social information about sardines. It is also an ideal platform to make sure that all present and future governance and management mechanisms are coordinated, and part of a cohesive framework, especially as we now have the Fisheries Management Area system,” Oceana Vice President Gloria Estenzo Ramos said. “It also provides opportunities to set realistic goals for a fishery. Those who participate in a fishery can decide, for example, that their medium-term objective is to recover

the population of the target species, maintain employment structure in a community, or achieve the maximum economic yield,” Ramos added. Oceana said the Fisheries Management Plan (FMP) for sardines allows for the creation of a framework for monitoring and evaluation of its progress for the sardine fisheries managers and users to have information for timely decisions to be made. “Aside from being the preferred food for our urban households, our poor fisherfolks have been dependent on sardines [for] their food and livelihood. It is an important fish for the Philippines as we take pride in nine species found in different parts of the country. However, their life is finite. It is one of the victims of overfishing caused by the lack of a science-based, cohesive, sustainable management of sardines fisheries,” Ramos said. Oceana said the NSMP has went through several public dialogue in the past three years and it has been also endorsed by the National Fisheries and Aquatic Resources Management for approval. “The approval of the National Sardines Management Plan is not only imperative for the sectors dependent on this industry for their economic interests. With the Covid-19 pandemic, we saw again how important this is for our food security and health. Without sustainable management in place for this very important fish, our children may not be able to experience and even know that there is this nutrients-packed favorite food of our generation,” Ramos said.

www.businessmirror.com.ph • Editor: Angel R. Calso

The World

US plans to give Taiwan bigger role in global fight against coronavirus

he top US health official spoke to his Taiwanese counterpart about fighting the coronavirus outbreak, a rare Cabinet-level contact between the two governments that’s certain to anger Beijing. Health and Human Services Secretary Alex Azar discussed giving Taiwan a bigger role in the global fight against Covid-19 in a telephone call with health minister Chen Shih-chung on Monday. The two also discussed US support for Taiwan’s inclusion in the World Health Organization, according to a summary of the meeting released by Taiwan’s foreign ministry. The 30-minute phone call signals a strong display of support for Taiwan given that successive US administrations have limited high-level contacts. Relations between the US and China, already strained under President Donald Trump, have worsened further as a result of the outbreak, with American officials accusing China of refusing to cooperate in fighting the virus. C h ina v iews Ta iwa n as pa r t of its ter r itor y and opposes a l l of f ic i a l cont act w it h t he gover nment in Ta ipei. President Tsa i Ing-wen rejects C h inese c l a i m s to Ta iw a n, a sser t i ng t he isl a nd is a n independent, sovereig n nat ion.

Observer status

Tsai spoke to Trump shortly after his election victory in 2016 but before he had taken office, a move that elicited a warning from China. There have been other Cabinet-level contacts in the past, including when Environmental Protection Agency Administrator Gina McCarthy visited in 2014, and Taiwanese officials occasionally meet with senior aides in visits to the US. Trump and some of his top officials, including Secretary of State Michael Pompeo, have criticized China for not providing enough information about the outbreak early on and preventing US scientists from being able to take part in fact-finding trips to Wuhan, China, where it originated. Both men at one point repeatedly referred to Covid-19 as the “Wuhan virus” or “China virus.” Taiwan previously had observer status with the WHO but has been shut out in recent years. In a recent roundtable with reporters, Pompeo said the Trump administration supports Taiwan having an “appropriate role” with the body. Azar, in a Twitter post, said he thanked Chen “for Taiwan’s efforts to share their best practices and resources with the US.” China’s Taiwan Affairs Office and foreign ministry didn’t immediately reply to requests for comment on Tuesday. Bloomberg News

Oil slides below $11 as ETF sell-off exacerbates volatility

rude extended its slide below $11 a barrel after the big gest oil exchange-traded fund (ETF) unexpectedly began selling all its holdings of the most active contract amid rapidly dwindling storage capacity. Futures fell almost 17 percent in New York after losing a quarter of their value on Monday. The United States Oil Fund LP sold all of its West Texas Intermediate June contracts, significantly widening the spread between July WTI and raising concerns of a repeat of the collapse that sent oil below zero for the first time ever last week. US producers have started making crude deliveries to the nation’s emergency stockpile as storage space runs out. Oil has lost almost 80 percent this year as the coronavirus outbreak vaporized demand for everything from gasoline to crude despite global efforts to stem the spread. The world’s biggest producers have pledged to slash daily output from the start of next month to try and balance the market, but the collapse in consumption has led to a swelling glut that’s testing storage limits worldwide. South Korea, which holds the fourth-biggest commercial storage capacity in Asia, was said to have run out of onshore space run by two big operators, while Singapore’s coastline has become even more congested with oilladen tankers. In order to avoid the US hub of Cushing from becoming more than 90 percent full in May and June, total production shut-ins would have to equate to 1 million barrels a day this month, according to JPMorgan Chase & Co.

“The startling June sell-off is in part due to the reality of storage facilities filling up rapidly,” said Stephen Innes, chief global market strategist at AxiCorp Ltd. “The pressure on global storage capacity for oil and oil products remains in focus.” West Texas Intermediate for June delivery dropped $1.47 to $11.31 a barrel on the New York Mercantile Exchange as of 11:46 a.m. Singapore time after slumping as low as $10.64 earlier. Futures fell $4.16 on Monday to close at $12.78. The gap with the July contract widened to more than $7 a barrel. Brent for June settlement slipped 73 cents to $19.26 after declining 6.8 percent the previous day. Dated Brent, a reference for nearly twothirds of the world’s physical oil flows, dropped to $13.62 on Monday, from $16.01 on Friday, according to traders monitoring prices from S&P Global Platts. The US Oil Fund is moving its money to contracts spread between July 2020 and June 2021 due to new limits imposed upon it by regulators and its broker, according to a filing. The ETF has changed its investment policy five times in the last two weeks. US producers have delivered 1.1 million barrels of crude into the Strategic Petroleum Reserve this month. On April 14, the Energy Department said it was negotiating leasing deals with nine companies, with most of the oil to be delivered in May and June, and possibly early April. It’s part of a plan by the Trump administration to help drain the nation’s growing glut of crude as commercial storage quickly fills up. Bloomberg News

BusinessMirror

Wednesday, April 29, 2020

UN: $90 billion could protect 700 million poor in pandemic

NITED NATIONS—The UN humanitarian chief said on Monday that $90 billion could provide income support, food and a health response to the coronavirus pandemic for 700 million of the world’s most vulnerable people—a price tag just 1 percent of the $8 trillion stimulus package the 20 richest countries put in place to safeguard the global economy.

Mark Lowcock told a video briefing most experts agree that the peak of the Covid-19 pandemic hasn’t reached the poorest parts of the world, but may peak in the next three to six months. He said about 700 million people—10 percent of the world’s population—are most vulnerable and concentrated in about 30 to 40 countries which already receive humanitarian assistance and will see a big drop in incomes as the virus spreads and governments impose restrictive measures and lockdowns. “If you wanted to protect them against that drop in income, then probably for about $60 billion you

could do that,” Lowcock said. And for something like $30 billion, he said, people facing the threat of starvation can get food, and the health response to Covid-19 can be financed. Lowcock said probably twothirds of the $90 billion could come from international financial institutions like the World Bank and the International Monetary Fund. “They would need to change the terms on which they provide assistance to some people,” he said. “So, for example, they would need to reduce interest rates and provide some debt relief. But they have the firepower if they were given a bit more subsidy to probably meet

about two-thirds of the costs.” Lowcock said the remaining one-third could be financed by a one-time increase in government development assistance. He said the argument he’s making is that a one-off 20 percent increase “will save you having to deal with a 10-year problem.” “$90 billion is a lot of money but it is an affordable sum of money,” he said. The UN is not going to appeal for $90 billion, Lowcock said, but “what I am suggesting is a lot of the suffering and loss of life can be contained within sums of money which are imaginable.” UN Secretary-General Antonio Guterres did launch a $2 billion appeal on March 25 to help vulnerable and conflict-torn countries in the Middle East, Asia, Africa and South America tackle the coronavirus pandemic. Lowcock said he is encouraged the appeal has received a little over $1 billion in one month, including 300 million euros from Germany announced on Monday evening. On May 7, he said, a revised appeal will be launched seeking additional resources because the pandemic is growing and new countries need help. Lowcock stressed that many things about Cov id-19 aren’t known including how it spreads in countries that are warmer and more humid, how it interacts with

other illnesses like malaria and HIV/AIDS, how it acts in situations where there is a lot of malnutrition and hunger, its impact in low income countries where people on average are younger, and whether people who recover have some protection against a future infection. Lowcock, who is the UN undersecretary-general for humanitarian affairs, expressed hope that scientists will find the answers to these and other questions in the coming months. In the poorest parts of the world, he said, “the growth in case numbers is not yet as exponential as we’ve seen in, for example, in North America and Europe.” He said the curve is accelerating in Africa and cited some recent modeling by the London School of Hygiene and Tropical Medicine “suggesting that many African countries will have a thousand new cases a week by May 1, and a few weeks after that could be getting 10,000 cases a week.” Restrictive measures imposed by governments to tackle the pandemic are likely to have a bigger impact in poorer countries than wealthier ones because of the number of day laborers and hungry people who can’t survive on their own resources, he said. “ But t he big gest i mpac t s, we expect...will arise from the economic consequences of the pandemic,” he said. AP

Singapore boosts virus testing capacity as cases top 14,000

s part of Singapore’s strategy to bring down coronavirus infections in the weeks to come, the government said it has more than doubled its daily testing capacity since early April even as the number of cases jumped beyond 14,000. Once touted as an early success in containing the spread of the virus, Singapore now has Asia’s highest number of coronavirus cases after China and India. Much of the surge in infections has been driven by hundreds of new cases from migrant worker dorms daily. Singapore now has capacity to conduct over 8,000 tests per day, up from an average of 2,900 less than a month ago, the health ministry said

in a statement on Monday. To date, the Southeast Asian nation has tested about 2,100 per 100,000 persons, which its government noted is higher than US and the UK respectively testing 1,600 and 1,000 per 100,000 people. “The higher intensity of testing allows us to pick up far more cases than many other countries,” the ministry said in the statement. “We also conduct testing as a means of general surveillance to detect signs of community spread and to pick up unlinked cases.” Singapore has pivoted to a more aggressive coronavirus response strategy as cases jumped to 14,423 cases on Monday from less than 1,000 at the start of this month. Minister for Trade and

Industry Chan Chun Sing said last week that the government hopes to be able to “progressively reopen” its economy in about a month’s time and is planning mass testing for its population of 5.7 million people. Of the total number of confirmed cases, the overwhelming majority is from often-cramped, low-wage worker dormitories spread across the island. Roughly 200,000 of these migrant workers live in these dormitories, Manpower Minister Josephine Teo said in a Facebook post. According to the health ministry, more than 21,000 of these workers have been tested so far and close to 3,000 of them were being tested every day.

Workers who report sick or show acute respiratory infection are immediately pulled aside and isolated, the ministry said. One urgent priority is to test migrant workers who have moved out of the dormitories but are continuing to work in essential services. Further testing is done across hospitals and clinics with a focus on high risk groups showing symptoms of acute respiratory infection. The ministry is also doing more testing to protect vulnerable groups including staff at nursing homes where there is close contact with seniors, heath-care workers and frontline officers who have regular contact with confirmed cases. Bloomberg News

Covid-19 spreads fear through Latin America’s unruly prisons

ANTIAGO, Chile—The spreading specter of the new coronavirus is shaking Latin America’s notoriously overcrowded, unruly prisons, threatening to turn them into infernos. The Puente Alto prison in downtown Santiago, Chile, had the largest of Latin America’s largest prison virus outbreaks so far, with more than 300 reported cases. The prison’s 1,100 inmates are terrified. Social distancing is hard to practice in jail. “They are all in contact with each other,” said prison nurse Ximena Graniffo. Any efforts at reducing contact were blown away in El Salvador over the weekend when authorities crammed prisoners—albeit wearing masks—tightly together in prison yards while searching their cells. President Nayib Bukele ordered the crackdown after more than 20 people were murdered in the country on Friday and intelligence suggested the orders came from imprisoned gang leaders. Latin America’s prisons hold 1.5 million inmates, and the facilities are often quasi-ruled by prisoners themselves because of corruption, intimidation and inadequate guard staffs. Low budgets also create ideal conditions for the virus to spread: There is often little soap and water and cell blocks are crowded. So far, national officials have reported close to 1,400 confirmed cases of Covid-19 among inmates and prison staff. The worst hit has been Peru, with 613 cases and at least 13 deaths, though the extent of testing to determine the full scale of infections differs from country to country. When the Dominican Republic tested more than 5,500 inmates at the La Victoria prison, which has been producing protective facemasks for the public, officials reported at least 239 tested positive. Perhaps the most complete testing appears

In this photo released by the El Salvador Presidency Press Office, inmates are lined up during a security operation under the watch of police at the Izalco prison in San Salvador, El Salvador on April 25. Authorities crammed the prisoners, albeit wearing masks, tightly together in prison yards while searching their cells. President Nayib Bukele ordered the crackdown after more than 20 people were murdered in the country on Friday and intelligence suggested the orders came from imprisoned gang leaders. El Salvador President Press Office via AP

to be taking place in Puerto Rico, where the Department of Corrections said on Friday it will test all the nearly 9,000 inmates being held across the US territory, as well as 6,000 employees, including prison guards. Fear of the virus itself already has proven deadly. There have been 23 deaths in prison riots in Colombia since the pandemic started. More than 1,300 inmates have escaped prisons in Brazil after a temporary release program was canceled due to the outbreak, and more than 1,000 have been on hunger strikes in Argentina. All over the region, the demands are the same: protection against contagion. With most family visits canceled, inmates feel exposed, vulnerable, alone—and exploited.

Inmates report that prices at informal and formal prison stores have increased during the pandemic, and relatives can no longer bring them food and hygiene items from the outside. “Right now, a bag of soap powder costs 29 pesos [$1.20], when before it was 20 [80 cents]” said a prisoner in Mexico, who lives in a 12 foot by 12 foot (4 meters by 4 meters) cell with a dozen others. He spoke on condition of anonymity because he was using a banned cell phone. Human Rights Watch says conditions are even worse in countries like Haiti, Bolivia or Guatemala. UN Human Rights High Commissioner Michelle Bachelet, the former president of

Chile, has called sanitary conditions in the region “deplorable” and called for releases of less dangerous inmates. Countries like Chile and Colombia have already released about 7,500 inmates and Mexico’s Senate last week approved a measure to free thousands, though Brazil has not yet acted. Regional security analyst Lucía Dammert says releasing a few thousand inmates won’t significantly reduce the threat of contagion, however, and some urge more sweeping releases. “Prisoners have been sentenced to loss of liberty, not to death, and the state has to take measures at its disposal,” said José Miguel Vivanco, Americas director for Human Rights Watch. And in many countries, such as Bolivia, most of those behind bars have not yet been sentenced or are awaiting trial. In Chile, the head of the prison guard system, Christián Alveal, said the prisoners’ fears “are totally reasonable,” and he said officials are working “to minimize the worries of the inmates.” Some prisons have tried to do that by allowing prisoners more calls to relatives, and Argentina, with 13,000 prisoners, has allowed videocalls. Buenos Aires has even allowed prisoners to use cellphones, which are normally banned because they are sometimes used in extortion schemes. Inmates at the San Pedro prison in Bolivia’s capital, La Paz, have taken their own measures against contagion. While inmates elsewhere have rioted over bans on family visits, the Bolivian inmates themselves decided on such a ban. And they turned what are normally punishment cells into 14-day quarantine lockups for newly arrived prisoners. Ximena Graniffo, the nurse at Puente Alto, seemed resigned to a struggle. “You do what you can with what you have,” she said. AP

A6 Wednesday, April 29, 2020 • Editor: Angel R. Calso

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editorial

Devastating effects of export restrictions

he agriculture sector’s limitations notwithstanding, the Philippines has been able to augment its food supply with the help of foreign producers. In recent years, Southeast Asian neighbors—specifically Thailand and Vietnam—helped plug our shortage in paddy production. The gap in output is estimated at 1 million metric tons per year, and rice from the two countries helped ensure that domestic prices would not spiral out of control. The country’s accession to the World Trade Organization (WTO) also opened a lot of opportunities for traders to buy and sell food. The conversion of quantitative restrictions into tariffs allowed the government and the private sector to increase foodstuff sold in the Philippines and made previously expensive items more affordable. For instance, the availability of imported mechanically deboned meat, used by our meat processors, allowed local businesses to offer more food choices. The relative ease with which the Philippines has been able to secure essential food items from other countries in recent years is now under threat because of the Covid-19 pandemic. The global health crisis is not only affecting food producers, such as farmers and factory workers, in many countries; it is also forcing governments to impose restrictions on food exports. Lockdowns, which limited transportation options, have exacerbated the food supply issues of many cities all over the world. While the government has given the public assurances that the country has enough food supply during the enhanced community quarantine and general community quarantine, the easing of restrictions in the Philippines and in other parts of the world does not mean that food will just magically appear in warehouses. Farmers and food producers will have to work doubly hard to make up for lost output and productivity during the pandemic. Also, it will take time for crops to grow and for factories to return to normal operations. We join the call of the WTO and the United Nations for food-exporting governments to reconsider their restrictions on shipping foodstuff to other countries. The WTO Secretariat said in a report that 80 countries and customs territories have introduced export prohibitions or restrictions as a result of the Covid-19 pandemic. These export prohibitions and restrictions mostly cover medical supplies, but some of the measures have extended controls to food products. The 2007-2008 rice crisis has given the world a preview of the damage that a ban on food exports can inflict on food markets. The peaking of world cereal prices in 2007 and 2008, during the economic slowdown, pushed an estimated 100 million people into hunger, according to the Asian Development Bank (ADB). This raised the total number of undernourished people globally to over 1 billion. Export restrictions as a means of ensuring food security will cause shocks to food markets, according to the UN. The lockdowns, labor shortages, and logistical constraints could put pressure on prices. ADB economists had warned that a 10-percent rise in domestic food price inflation in developing Asia could push 64 million more Asians into poverty. Prohibitions will adversely impact global food supplies and exacerbate efforts to reduce hunger and poverty all over the world. Since 2005

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SSS: Every working Filipino’s protection from various contingencies Aurora C. Ignacio

All About Social Security

N December 2019, a pneumonia of unknown cause detected in Wuhan was first reported to the World Health Organization country office in China. Then the WHO declared the outbreak a Public Health Emergency of International Concern on January 30, 2020. On February 11, 2020, a name for the new coronavirus disease was announced: Covid-19. On March 11, the WHO characterized Covid-19 as a global pandemic affecting more than 200 countries. In the Philippines, the virus has caused human suffering and the loss of lives. As of this writing, the virus has infected more than 7,700 Filipinos and killed 511 others. The Covid-19 pandemic is an extreme example of a health risk. Our susceptibility to this kind of risk jeopardizes our livelihood and our ability to participate and contribute to the labor market and to the country’s economy. When we get sick, we can’t work. We only report back to work after we have fully recovered. Thus, sickness cripples our potential as earning individuals and the pandemic, if prolonged, could bring us to the deathbed of poverty, hunger and inequality. This is where social protection

policies and agenda play a significant role. Since 1957, the Social Security System has been mandated by law to extend equitable and meaningful social security protection to our members and their beneficiaries in times of contingencies such as sickness. Sickness benefit, as one of SSS’ short-term benefits, is a daily cash allowance paid for the number of days a member is unable to work due to sickness. To qualify, a member must have paid at least three contributions within the last 12 months prior to the semester of sickness; has been sick for home or hospital confinement for at least four days; has exhausted all his paid company sick leaves; and has notified his employer regarding his sickness.

The SSS, being true to its mandate, recognizes that access to social protection is a fundamental human right. Its various programs, suited for the work force, allow the agency to help cushion the impact of certain risks and recurring adversities that workers may experience along the way.

In this time of public health crisis, the SSS is one with the country’s commitment to respond to the growing and varying needs of the Filipino people through the “Bayanihan to Heal as One Act.” During the first week of the implementation of the enhanced community quarantine in the National Capital Region and the entire Luzon area, SSS has offered various Covid-19 Relief Programs. One of this is the extended filing period of all sickness benefit claims with contingencies starting on March 1 until April 30, 2020. Under the temporary extension, employed members are given 60 days after the end of their home confinement to submit their sickness notification to their employers. Likewise, employers are also given 60 days after their receipt of notice from the employee to submit the sickness notification to SSS. This also includes individual members such as self-employed, overseas Filipino workers (OFWs) and voluntary

Covid-19 threatens to starve Africa By Jessica Fanzo | Bloomberg Opinion

‘I

T is easy to see the beginnings of things and harder to see the ends,” Joan Didion wrote in “Goodbye to All That.” Her words resonate in the midst of the Covid-19 pandemic, when no one has a clue whether we’re at the beginning, in the middle or near the end. In sub-Saharan Africa the not knowing is especially worrisome, because it’s difficult to tell whether the continent’s fragile food supply systems will weather the strain.

While the continent has made great strides toward economic security over the past several decades, Covid-19 could stymie that progress. Conditions vary greatly from country to country, but many struggle to ensure that their citizens have access to basic essentials: soap to clean hands, potable water and nutritious food to keep immune systems strong. Hunger and food insecurity have not gone away. Twenty three percent of people in sub-Saharan Africa are under-

nourished. Because of the global economic fallout from Covid-19, the number of people worldwide facing acute food insecurity could nearly double this year to 265 million, the United Nations World Food Program estimates, and much of that impact will be felt in Africa. At the same time, obesity and noncommunicable diseases (heart disease and diabetes, for example) are rising in many low-income countries, Africa included, and both are proving to be serious complications

Food supply chains are starting to falter. Lockdowns in 30 African countries have made it very challenging for farmers to sell their goods in markets or for workers to get to fields. Food assistance is not always making it to those most in need. Many informal markets—the infamous wet or open-air markets, where most Africans shop for food—are closed, further imperiling food insecurity and threatening malnutrition. for people infected with Covid-19. Much of the continent is also still dealing with other complex infectious diseases—HIV/AIDS, tuberculosis, malaria and other neglected tropical illnesses—that will make it more difficult to treat Covid-19 infections.

members who are given the same 60day extension for the submission of their sickness benefit application. On the other hand, employers and SE/VM/OFW members whose sickness benefit/reimbursement claims are due for filing on March 1 until April 30, 2020 may still file their sickness claims until June 30, 2020, without any reduction and/or denial of their claims. Moreover, employers are also reminded to advance the payment of the sickness benefit of their respective employees, which is one of their primary and legal obligations under Republic Act 11199 (Social Security Act of 2018). The SSS, being true to its mandate, recognizes that access to social protection is a fundamental human right. Its various programs, suited for the work force, allow the agency to help cushion the impact of certain risks and recurring adversities that workers may experience along the way. The Filipino workers can be assured that the SSS can and will always be a responsive and adequate system of social security protection. As we always say, buti na lang, may SSS! Aurora C. Ignacio is SSS president and chief executive officer. We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss. gov.ph for topics that you might want us to discuss.

As it expands on the continent, Covid-19 will put further stress on already strained health systems— with limited numbers of ventilators and proper beds, minimal personal protective equipment and, in some places, too few health-care workers. At the same time, food supply chains are starting to falter. Lockdowns in 30 African countries have made it very challenging for farmers to sell their goods in markets or for workers to get to fields. Food assistance is not always making it to those most in need. Many informal markets—the infamous wet or open-air markets, where most Africans shop for food—are closed, further imperiling food insecurity and threatening malnutrition. Reports from the Global Alliance for Improved Nutrition’s offices in Nigeria and Mozambique note that prices of food, particularly See “Covid-19,” A7

Opinion BusinessMirror

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Wednesday, April 29, 2020 A7

Questions over Kim Jong College graduates may end up delivering your milk tea One reason 174 million workUn’s health highlight ers have been forgotten is that policy-makers see them as flexible. After all, they did manage intelligence limits I to shift from one low-skilled gig By Shuli Ren | Bloomberg Opinion

By Kim Tong-Hyung | The Associated Press

EOUL, South Korea—North Korean leader Kim Jong Un’s prolonged public absence has led to rumors of ill health and worries about how it could influence the future of what one analyst calls Northeast Asia’s “Achilles’ heel,” a reference to the North’s belligerence and unpredictable nature.

But there’s a basic question debated by the media and government intelligence services: Are the rumors even true? The exact state of Kim’s health matters because it could determine the stability of the dynastic government in Pyongyang and the security of nuclear weapons that the nation has repeatedly threatened to use on its neighbors and the United States. It’s a problem that outside nations have faced for decades. Gathering intelligence on perhaps the world’s most secretive, suspicious and difficult-to-read country is incredibly difficult. And there’s probably nothing North Korea guards more closely than information on Kim’s health, which is only likely shared among a small portion of the elite, including his powerful sister, Kim Yo Jong. At the heart of the intelligence shortcomings about North Korea is its extremely closed nature. But there is also plenty of blame leveled in South Korea at efforts there. Supporters of South Korea’s liberal government, which remains eager for inter-Korean engagement, lament the previous decade of conservative rule, when exchanges between diplomats, government and business leaders, aid groups and others stopped under hardline policies toward North Korea’s nuclear ambitions. This, they say, deprived spies of high-quality information sources. Conservatives, meanwhile, blame liberals for supposedly downsizing espionage operations while pursuing inter-Korean rapprochement. They say such networks have been difficult to rebuild. South Korea’s government has repeatedly played down unconfirmed media reports that Kim is in fragile health following heart surgery, saying it has detected no unusual activity in North Korea or any emergency preparation by its ruling Workers’ Party, military and Cabinet. Without specifying its sources, South Korea’s presidential office said it believes Kim is handling state affairs normally at an unspecified site outside the capital, Pyongyang. US President Donald Trump told reporters on Monday that he has a “very good idea” about Kim’s health but couldn’t talk about it and wished him well. “I do know how he’s doing, relatively speaking,” Trump said at the White House. “You’ll probably be hearing in the not-too-distant future.” Some experts say South Korea, as well as its regional neighbors and ally Washington, must begin preparing for high-level instability that could come if Kim is sidelined by health problems or even dies. That could include North Korean refugees flooding South Korea or China or military hard-liners letting loose nuclear weapons. Planning for those worst-case scenarios is crucial because nobody knows for sure what’s happening, said Nam Sung-wook, a North Korea expert at Seoul’s Korea University who termed the situation the “Achilles’ heel of international politics in Northeast Asia.” “He could very well be OK and reappear in North Korean state media again, but considering his weight and worsening shape, the risks linked to his health will sharply increase as he gets older,” said Nam, a former director of a think tank affiliated with South Korea’s main spy agency. Kim is overweight, reportedly smokes heavily and has other health problems. Questions about Kim’s health have been raised since he missed

The National Intelligence Service, Seoul’s spy agency, has said it can’t confirm whether Kim had surgery. If Kim emerges well in state media, he would join past North Korean officials who were incorrectly reported incapacitated by outside media. the birthday celebration of his late grandfather and state founder Kim Il Sung on April 15, the country’s most important holiday. Kim, who is in his mid-30s, was last seen in public on April 11, when he presided over a meeting discussing coronavirus prevention and electing his sister as an alternate member of the political bureau of the ruling Workers’ Party. State media have since reported that he sent greetings to Syrian President Bashar Assad, Cuban President Miguel Díaz-Canel and South African President Cyril Ramaphosa. On Monday, the official Rodong Sinmun newspaper said Kim sent a message of gratitude to workers building tourist facilities in the coastal town of Wonsan, which is where some speculate he is staying. No photos of him were published. South Korean intelligence and North Korean state media reports suggest that Kim could have suffered some sort of medical setback but likely not a life-threatening one, said Du Hyeogn Cha, a senior researcher at Seoul’s Asan Institute for Policy Studies. The root problem may be the shaky nature of South Korean intelligence. “Even after decades of work, South Korea has yet to build a reliable intelligence network to gather information on the North,” said Cha, an ex-intelligence secretary to former South Korean President Lee Myung-bak. “It’s clear our government has some level of information on the North, but not enough to make a confident statement about where he is and whether he’s fully healthy.” Finding out is important because incapacity at the top could lead to bogged-down decision-making that could boost the hardliners who emerged following the collapse of Kim’s second summit with Trump in February last year. The Americans at that summit rejected North Korean demands for major sanctions relief in exchange for a partial surrender of the North’s nuclear capabilities. The National Intelligence Service, Seoul’s spy agency, has said it can’t confirm whether Kim had surgery. If Kim emerges well in state media, he would join past North Korean officials who were incorrectly reported incapacitated by outside media. “Kim Il Sung shot dead” remains perhaps the most famous newspaper headline in South Korean history. The 1986 Chosun Ilbo story was initially backed by a South Korean military statement that North Korea had announced the demise of its founder over loudspeakers at the mine-strewn border between the rival nations. But hours later, Kim Il Sung appeared at Pyongyang’s airport to greet a Mongolian delegation. Another big problem is that for decades South Korea didn’t have a strong grip on the location and health of North Korea’s top leadership, according to Cheon Seong Whun, a presidential secretary during the South’s previous conservative government. “Anybody who says they know something for certain is just writing a novel,” Cheon said.

S it possible that socialist China gives its workers less job security, satisfaction and protection than the US, the world’s most capitalist society? In the coronavirus age, that certainly seems to be the case.

While Americans are getting showered with helicopter money, the Chinese have been left emptyhanded. Of Beijing’s various stimulus policies, only 500 billion yuan ($70.7 billion), or 0.5 percent of gross domestic product, is slated for social security expense relief. The funds that are getting doled out have ended up in the wrong places. Instead of paying salaries, some entrepreneurs are using the 1.8 trillion yuan of re-lending facilities earmarked for small-business loans to buy apartments and invest in wealth management products. China could say its labor market is more resilient and that jobs-forlife still exist at its state-owned enterprises. The urban unemployment rate came in at 5.9 percent in March compared with 6.2 percent in February. Meanwhile, Americans are losing jobs at the fastest pace since the Great Depression. But China’s jobless number is a sham. Of the 442 million urban workers, over one-third, or 174 million, are migrants. The statistics bureau doesn’t consider them unemployed; rather, they’re outside the local labor force altogether, now that tens of millions are not able to return to cities because of lockdowns or dismal job prospects. This is a gross

omission, because many still hope for employment in the city. Many speculated that China only launched its 4 trillion-yuan stimulus package in 2008 after 20 million migrants lost their jobs. Infrastructure projects gave them new opportunities to work. So why is China being so stingy this time? A decade on, Beijing is clearly worried about its debt pile and balancing the fiscal budget. Unlike the US, personal income tax is tiny, accounting for roughly 4 percent of fiscal revenue. Corporate, valueadded and social security taxes, on the other hand, make up over one-third of China’s coffers. This explains why the government is a lot more comfortable cutting taxes for businesses and refunding their social security contributions, instead of laying out unfunded benefits for the unemployed. But where there’s a will, there’s a way. While China’s total debt-toGDP ratio is among the highest in the world, the central government is less burdened than Washington. Delivering helicopter money to the unemployed would be feasible. One reason 174 million workers have been forgotten is that policymakers see them as flexible. After all, they did manage to shift from

to another—morphing from construction workers in the post-crisis building frenzy to the delivery boys of the e-commerce boom.

one low-skilled gig to another—morphing from construction workers in the post-crisis building frenzy to the delivery boys of the e-commerce boom. So what’s wrong with them going back to their villages and picking up farming again? They could be fully employed there, the thinking goes. They are “more able to absorb labor market shocks,” mused HSBC Holdings Plc. Instead, policy-makers have been fussing over university students. A whopping 8.7 million will graduate this year. What will Beijing do to this highly educated and possibly mutinous corps of fresh blood? It’s perhaps no coincidence that Beijing shifted its tone just ahead of International Workers’ Day on May 1. Last week, Premier Li Keqiang emphasized the need to help migrants during a speech at the State Council, urging local governments to provide unemployment benefits and “minimum living guarantees.” These laborers are currently ineligible because they don’t have the city hukou, or a permanent residency card. But there are plenty of holes in

this plan. For instance, where exactly can a migrant worker collect his check? Different cities give different amounts of cash. For instance, in the laborer’s hometown outside Wuhan, it’s 680 yuan per month, yet it’s 1,050 yuan in Shenzhen, where he last worked. Municipal governments, whose fiscal receipts were growing at the slowest pace in a decade even before the outbreak, will have little incentive beyond squirming out of their obligations. Ultimately, the blame lays on the hukou system, which divides Chinese society into castes at birth. Beijing has been talking about reforming it for decades, with little progress. Chances are, Li’s speech was just a few slogans. All will be forgotten in a few weeks. This is a dangerous level of neglect from the urban elites. Even before the virus outbreak, the supply of new migrant workers had trickled to just about 2 million a year compared with 8 million a decade earlier. That’s partly because they are treated so badly. These laborers are kicked out of megacities on short notice whenever local officials in Beijing or Shanghai fancy capping the urban population. Meanwhile, not having a city hukou, they don’t have access to public health-care or education. This lockdown may have been the last straw for migrant workers who’ve tried to make ends meet. At least there’s land, food and shelter in the countryside. Why bother putting in long hours for a few extra bucks and having nothing to fall back on? Soon, our milk tea delivery boys will

The pandemic will make big companies more dominant than ever By Peter R. Orszag | Bloomberg Opinion

ment policy responses so far may be insufficient to avoid a cascade of resulting bankruptcies. It’s entirely possible that many small companies won’t survive, or return after the crisis subsides. At the same time, Covid-19 has hit different regions with varying force, policy responses have also varied, and these differences are likely to continue through the summer and beyond. Because larger companies are more diversified across markets, they’re better able to survive shocks whose force varies from place to place. Another reason the pandemic will hasten the growing dominance of large companies is that it will push supply chains to become vertically integrated, as larger firms exert more control over their supply and smaller companies in the chain need help. The crisis has exposed the vulnerabilities of depending on other companies for crucial supplies; many larger ones may be inclined to move production in house while also diversifying their geographic locations. At the same time, as many smaller suppliers face

financial distress, they will find it more attractive to combine with larger companies. Antitrust authorities have often viewed this kind of vertical integration more favorably than horizontal mergers between companies in the same business— especially if a supply chain is in danger of collapse. (A caveat is that increased nationalism may impede certain potential combinations.) One more reason that larger companies may now expand their market shares is simply that, during a crisis, people trust them more. Workers are more comfortable accepting jobs at bigger firms, where employment appears more secure, while customers are more trusting of products and services from larger companies, whose name brands seem safer. Both kinds of trust allow larger firms to grow. Note that, as a result of the pandemic, the social

value of two sectors with numerous large firms—biopharma and technology—may come to be viewed more favorably. Conventional wisdom suggests that smaller companies can benefit when economic activity shifts to the virtual world, as it has been with people staying home and as it likely will remain even after the pandemic ends, because they are more nimble in using information technology. In reality, the effect may be the opposite, because larger companies are often positioned to use IT better than smaller ones do. Indeed, one analysis of pre-pandemic trends in productivity concluded, “It is sometimes argued that information technology ‘levels the playing field’ by providing inexpensive tools to small and young firms. This paper finds that much of the impact of IT may be, instead, to tilt the playing field in favor of those firms who are able to use it most effectively.” The stock market reaction to the pandemic highlights the financial strength that comes with size: Among the top 1 percent of publicly traded firms ranked by their 2019 revenue—those with more than $52 billion—the weighted-average total stock return so far this year has been minus 9 percent. For companies with revenue of $200-$550 million, the return has been closer to minus 40 percent. As we emerge from the Covid-19 pandemic, the size distribution of companies will probably continue to shift toward large.

nearly $110 billion, according to the World Bank. In sub-Saharan Africa, they may drop by 23 percent. This will push more people to go to work, increasing their exposure. To be sure, African countries have a few things working in their favor. For one, they have experience with massive infectious diseases—HIV/ AIDS, Ebola and polio, to name a few—and public health systems have been strengthened over the past decade. The Democratic Republic of the Congo has been hard hit by Ebola, but there are signs of progress with a declining case load in early 2020. In the current crisis, African governments can take some early lessons from the rest of the world that has been grappling with the pandemic a month or two longer, and work to keep the food supply

moving. The continent is still 60 percent rural, and many urban Africans have close ties to the countryside, owning land or family plots. With luck, lower population density in rural areas may slow the spread of Covid-19, allowing farmers to continue to grow food—that is, if they can get access to seeds and the technologies needed to plant and harvest. Support to food producers is an absolute necessity. Sub-Saharan Africa is also fortunate to have a relatively young population, which may make it better able to weather outbreaks of Covid-19 with less hospitalization and death. Still, it remains hard to see the end. Some people hypothesize, with little evidence, that Africa may not be hit as hard as other places because of its warm climate. Perhaps, they say,

the spread will be slower in Africa, and that will buy extra time. Given how easily Covid-19 has spread in other warm places such as Singapore and Thailand, that’s not something to count on. To ensure that Africa doesn’t starve, and that it can weather the Covid-19 storm, it is essential to make sure people are guaranteed access to food, water, soap, masks, and cash transfers to support their families. The poorest and most vulnerable should be the priority. World governments with their donor partners, including the World Bank and the World Food Program, will be counted on for support over the next four months. Businesses that make food products need support as well. We must all help to make sure they come through.

he Covid-19 pandemic will likely leave us with an economy in which larger companies play an expanded role, representing a higher share of both employment and revenue. The stock market illustrates the phenomenon: The biggest firms have seen smaller stock market declines, on average, than smaller ones have. It’s the corporate version of the Matthew effect: The strong get stronger. This shift began before the pandemic came along. From 1995 to 2013, the share of US workers employed by firms with 10,000 or more employees increased to about 28 percent, from 24 percent. McKinsey has found that “superstar” firms (whose average revenue is seven times the median) raised their employment share to 30 percent in 2014-2016, from 28 percent in 1995-1997. There’s been much debate over why this is happening, especially the role that higher productivity plays. The International Monetary Fund recently concluded that “technology-driven changes in the structure of many product markets” have made a bigger difference than have individual countries’ regulations or antitrust policies. The trend may be accelerated now because, during the pandemic, bigger companies are less likely to run aground: They are perceived to have more liquidity than smaller companies do, and to be more spread out geographically. The pandemic has hit small and medium-sized businesses, which often have little cash on hand, very hard—and govern-

Covid-19. . .

continued from A6

fruits and vegetables, have increased significantly. In many African cities, social distancing and self-isolation are a recipe for disaster. Slums and informal settlements are overcrowded and lack basic services such as running water, cooking facilities and electricity. And even if people infected with the coronavirus had safe places to isolate, some feel they must work to keep their families fed. Commutes to work often involve overfilled buses and long traffic jams—which increase the spread of disease. With global unemployment rising, remittances worldwide are also expected to fall—by 20 percent, or

Conventional wisdom suggests that smaller companies can benefit when economic activity shifts to the virtual world, as it has been with people staying home and as it likely will remain even after the pandemic ends, because they are more nimble in using information technology. In reality, the effect may be the opposite, because larger companies are often positioned to use IT better than smaller ones do.

A8 Wednesday, April 29, 2020

New normal: Malls will be hotter, offer no free WiFi, to ban seniors

By Cai U. Ordinario

@caiordinario

HE Filipinos’ penchant for hanging out, or doing most of their activities in malls, may have to be greatly tempered as the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) decided to impose restrictions on mall facilities. After the lockdown or enhanced community quarantine (ECQ) is lifted, Socioeconomic Planning Secretary Karl Kendrick T. Chua said in an online briefing that malls will be allowed to operate with restrictions. For one, the temperature in malls will be increased and offering free WiFi services will be prohibited to prevent Filipinos from prolonging their stay in malls. “There are 865 malls in the country. Malls are like mini-economies. You can actually do everything you want except sleep,” Chua, the head of the National Economic and De-

velopment Authority (Neda), said on Tuesday. “We limit the number of people by increasing the temperature so that people will not hang around because it’s summer and it’s hot. We will [also] have a no WiFi policy so that people who go to the mall will just buy [what they need] and then go home,” he explained. Apart from the facilities, Chua said only Filipinos aged 21 to 59 years will be allowed to enter provided they do not have comorbidities or are not living with people who have these co-

THE Pacific Explorer cruise ship operated by P&O Cruises Australia is seen docked at Pier 15 in Manila. The first flotilla of eight cruise ships dropped anchor in quick succession off Manila Bay on April 22 to bring home Filipino seafarers. Dozens of cruise ships were denied permission to call on ports at various locations around the world over coronavirus concerns. ROY DOMINGO

morbidities. They must also wear their face masks and are not sick. Their temperatures will still be taken when they enter malls. Apart from malls, Chua said limitations have also been imposed

on the implementation of construction projects, including the government’s “Build, Build, Build” (BBB). Chua said selected infrastructure projects will be allowed to operate subject to minimum health standards, physical distancing, and the provision of barracks for workers. However, Chua said, these barracks should not be cramped and must still allow workers to continue observing physical distancing while on the job site. Minimum health standards should be imposed in job sites such as the use of face masks and the use of disinfectants. Meanwhile, in terms of mass transportation, Chua said the Department Transportation (DOTr) will provide the details but in general, traditional modes of transportation such as jeepneys and tricycles would see significant reduction in passengers.

Jeepneys

CHUA said jeepneys may only take on half the number of passengers they used to ferry while tricycles will not be allowed to have as many as four passengers. In buses, Chua said, the government will no longer allow any passengers to stand. There is also a significant reduction in the number of passengers they can accommodate to ensure that physical distancing is observed. To allow Filipino workers to work despite limitations in public transport, Chua said the IATFEID recommends that companies provide shuttle services to their

employees. Chua said this will also allow easier contact tracing. He said one of the risks of commuting is not knowing who you are coming in contact with while in transit. However, if companies are the ones who provide the shuttle, Chua said it is easier to do contact tracing since all those in shuttles work for the same company.

Recovery plan

EARLIER, Chua said crafting the national recovery plan was one of the President’s marching orders when he was appointed to replace former Neda Chief Ernesto M. Pernia. In order to craft the plan, Chua said, Neda will have to take stock of the trade-offs especially given Covid-19’s impact on the economy. While some experts say the Philippine economy will recover immediately as in a V-shaped recovery while others say it will be a W-shaped recovery—characterized by a double-dip recession—the situation is greatly uncertain at this point, in Chua’s view. In order to come up with the national recovery plan, Chua said Neda will be crunching numbers based on a survey of larger firms to accompany the Neda’s recent online survey on the “New Normal.” The Neda’s online survey conducted two to three weeks prior to Chua’s appointment gathered 44,000 responses. It gave Neda a qualitative view of the needs of micro, small and medium enterprises (MSMEs) nationwide.

E-money to keep growth; P700-B inflow seen by 2021 By Tyrone Jasper C. Piad

@Tyronepiad

-MONEY is seen to continue flourishing in the Philippines, with transaction volume and wallet inflow reaching P370 billion and P700 billion by 2021, respectively, according to a strategic advisory firm. YCP Solidiance, in its report titled “The Digitization of the Philippine Wallet: E-Money’s Emergence in the Philippines,” said that growth in e-wallet usage will be supported by service offerings of financial technology players and banks, such as bills and merchant payment capabilities. “This highlights the significance for these mobile wallet companies to fortify their existing capabilities by acquiring more merchants for their platforms and to continue introducing new use-cases geared towards making the lives of Filipino people easier,” the firm said. Citing data from the Bangko Sentral ng Pilipinas (BSP), YCP noted that e-money had an 8-percent compound annual growth rate (CAGR) in amount flows and 15 percent in amount usage during 2014-2018. Usage, in terms of transaction count, had 36-percent CAGR during the same period. “Such is indicative of an e-money and digital wallet industry that will continue to grow in the next few years,” it added. The advisory firm said that bulk, or 81 percent of the e-money inflows, came from universal and commercial banks, registering P443.26 billion in 2018. This was 8.12 percent higher than the P407.25 billion notched the previous year. It had a CAGR of 9 percent in 2014-2018. This was followed by e-money issuers, comprising 16 percent or P89.29 billion of the total e-money inflows in 2018. It recorded 11-percent CAGR within a five-year period beginning 2014. “Fund transfer remains to be the largest use-case for e-money, but the high growth rates for merchant and bill payments indicate that these use-cases will be on a par in terms of size within the next decade,” YCP said. In 2018, fund transfers accounted for 74 percent of the total e-money usage, amounting to P182.07 billion. Combining bill and merchant payments, they comprised 16 percent or P38.63 billion of the total e-money transactions in 2018. Continued on A4

BTR RAISES P30B IN REISSUED 2-YR T-BONDS ON RUSH TO SAFE HAVENS By Bernadette D. Nicolas

@BNicolasBM

HE Bureau of the Treasury on Tuesday raised P30 billion in reissued twoyear Treasury bonds (T-bonds) as investors still flock to secure safe-haven assets amid the uncertainty posed by the pandemic. The T-bonds with one-year and nine months residual maturity fetched an average rate of 3.052 percent. Showing off robust market demand, the auction attracted tenders amounting to P109.5 billion, more than 3.5x the P30 billion offer. With the auction result, total outstanding IOUs for the series now stands at P105 billion. National Treasurer Rosalia V. de Leon told reporters they ob-

served “lower rates and appetite now going beyond one year” following Tuesday’s auction. On top of the P30-billion award, the Treasury also decided to open the tap facility for an additional P15-billion offering with a coupon rate of 4 percent and average rate of 3.052 percent. Asked if there is no need for the Philippines to issue renminbi-denominated “panda” bonds or yen-denominated “samurai” bonds, De Leon said: “Auctions have been on full awards and are able to mobilize more from tap because of low rates and oversubscription.” Sought to clarify if the panda and samurai bonds will be removed from this year’s financing program or deferred to the second half of the year, De Leon said they have yet to see the market devel-

opments and assess the funding costs versus other markets. Early last month, the government shelved its plans to issue panda bonds, also due to the pandemic. Last year, the Philippine government raised 2.5 billion renminbi from its second panda bond sale. The country first issued its first panda bonds in March 2018, raising 1.46 billion renminbi. From the samurai bonds, the Philippines raised ¥92 billion last year. In August 2018, the Philippine government returned to the yen-denominated samurai bond market after an eight-year hiatus, with a multitranche ¥154.2-billion transaction which yielded a weighted average spread of 34.7 basis points above benchmark.

www.businessmirror.com.ph

Companies BusinessMirror

Wednesday, April 29, 2020

Car importers expect sharp drop in sales due to virus

By Elijah Felice E. Rosales

@alyasjah

ales of imported cars in the first quarter crashed by more than 34 percent on double-digit slides on all segments, prompting vehicle importers to say that sales this year could decline by 40 percent. The Association of Vehicle Importers and Distributors Inc. (Avid) on Tuesday reported that sales for the first quarter fell 34.37 percent to 14,404 units, from 21,949 units during the same period last year. All three brackets posted steep declines that signal depressing months ahead. Sales of passenger cars (PC) slipped nearly 43 percent to 4,506 units, from 7,848 units, while those of light commercial vehicles (LCV) dropped over 29 percent to 9,806 units, from 13,862 units,

according to Avid. Further, commercial vehicle (CV) sales in the first quarter plunged by close to two-thirds to just 92 units, from 239 units during the same stretch last year. Practically all of dealerships and their repair and maintenance facilities were closed since March 16, the start of the implementation of enhanced community quarantine (ECQ) in the whole of Luzon. In terms of PC sales, Hyundai Asia Resources Inc. (Hari) topped the segment with 2,724 units sold to

lead Suzuki Philippines Inc. (SPI) and Ford Group Philippines Inc. (FGPI) with 1,127 and 415 units sold, respectively. FGPI had the largest share in the LCV bracket at 3,479 units, trailed by Hari at 2,797 units and SPI at 2,740 units. Hari accounted for all CV sales in the first quarter. Avid President Maria Fe PerezAgudo said the automotive industry is reeling from the stoppage of vehicle manufacturing, importation, distribution and maintenance under the ECQ, as well as from the decline in demand for automobile as households focus spending on essentials. “Demand has likewise declined as consumers spend on more urgent needs,” Agudo explained. “With this disruption, we estimate that car sales may drop by around 40 percent this year.” “The industry is no stranger to adversity, but this pandemic will be our toughest challenge yet,” she added, estimating that it would take at least 12 months for industry players

to recover from the losses incurred from the health crisis and its consequential lockdown. In preparation for the ECQ aftermath, Avid members took advantage of the work suspension to reform its procedures, structures and organizations, Agudo said. They are now readying to put in place health measures and safety strategies for workers and clients, taking into account the protocols on social distancing, wearing of appropriate protective equipment, among others. Moreover, some industry players will conduct antibody testing on their personnel to ensure that they are free from Covid-19 before returning to work. Citing official data, Agudo said that the automotive industry employs about 408,000 direct and indirect workers. As such, she argued the timely restart of its operations is crucial in alleviating the impact of the health crisis to the tens of thousands of individuals and their families relying on the industry.

SEC flags 3 unlicensed investment entities By VG Cabuag

he Securities and Exchange Commission (SEC) flagged three more entities selling investment schemes to the public and operating without the necessary licenses as the agency continues to monitor several groups offering get-rich-quick schemes amid the pandemic. In its latest advisories, the SEC warned the public against OnlineBiz or OnlineBiz Ecommerce; Accelerare Car Main Ph or Accelerare Ph, or Accelerare/Accelerare Car Trading/ Accelerare Forex Trading; and Legit Payout or Legit Pay Out. Records of the SEC showed the three groups are not registered as corporations or partnerships and none of them secured the requisite

licenses to solicit investments from the public, as required under Republic Act 8799, or The Securities Regulation Code. OnlineBiz engages in investment-taking activity by offering an investment scheme for a minimum of P19,000 in exchange for weekly earnings of P5,000 to P50,000 plus insurance plan and free travels. In its advisory dated April 23, the SEC noted the similarity of OnlineBiz’s investment scheme with that of Elite Entrep Blue Print. The Facebook page of OnlineBiz also bears the logo of Elite Entrep Blue Print, whose scheme has been flagged earlier. Accelerare, meanwhile, taps loan investors called “Certified Accelerare Partners” for its business ventures in car trading and foreign exchange. It promises interest income, as well as

Security Bank posts higher profits in Q1

AirAsia carries fewer passengers in Q1

@villygc

riven by robust revenue growth and higher tradinggains,SecurityBankCorp.endedfirst quarterwitha21-percentgrowthinnetearnings at P2.9 billion despite increasing provisions for credit losses. The listed bank set loan loss buffer at P5.7 billion during the period, which already surpassed the 2019 full-year provision of P4.2 billion. Eliminating this, operating profit could have reached P8 billion, whichwas129percentbetterthanthepreviousyear for the same period. Security Bank cited the following reasons behind the hike in loan loss provision: adjustment in credit model amid the current situation, challenges in consumer and commercial lending and more consumer loans in the portfolio mix. Amid the coronavirus disease 2019 pandemic, the bank conducted review of portfolio and provisions, among others, to assess its impact. First quarter topline figures skyrocketed 75 percent to P13.2 billion on the back of core business income and trading gains. Total net interest income surged 41 percent to P8.1 billion while non-interest profits nearly tripled to P5.1 billion in January-March period. Securities trading gains, meanwhile, exponentially grew to P3.5 billion in the first quarter of 2020 from P671 million year-onyear. Net interest margin in the first three months stood at 4.68 percent, higher by 219 basis points year-on-year. The bank’s loan portfolio grew by 14 percent to P468 billion in the first quarter. Retail loans, which account for 29 percent of the total loans, rose by 44 percent; while wholesale loans jumped by 6 percent. Gross nonperforming loan (NPL) ratio stood at 1.59 percent, which was better than industry average of 1.79 percent. Its NPL reserve cover was at 128 percent. Tyrone Jasper C. Piad

bonuses and commissions. One may invest a minimum of P1,000 in the car trading business and receive a 20-percent interest after 28 days, or 150 percent after 90 days, up to 5 percent rolling commission and another 5 percent commission for car agents. In the forex trading business, one may invest a minimum of P10,000 and earn 30 percent daily, weekly or monthly, depending on the trade. As in the car trading business, only those investing P50,000 and above will be provided a contract. An investor is entitled to receive passive income from investments gathered, and active income from recruitment bonuses, the SEC noted in an April 22 advisory against the group founded by Harlou Angelo Crampatanta Bolima and with principal office

in Don Bosco, Parañaque City. As for Legit Pay Out, the SEC said it entices the public to invest by promising a high return in a short period. Under the scheme, one would pay P1,000 to secure a slot. In two weeks, the amount invested for every slot would supposedly grow by 60 percent to P1,600. Legit Pay Out is operated by a certain Wilme Joe Vergara, also known as Joe de Vergara. The investment scheme’s operator is not associated with any corporation or partnership registered with the SEC or allowed to engage in investment-taking activities, the SEC said in its advisory. “The SEC reiterates its advice for the public to exercise caution when dealing with individuals or groups promising ridiculous rates of return on investment with little or no risks,” the agency said.

By Lorenz S. Marasigan @lorenzmarasigan

U DGET c a r r ier A i rA si a Philippines carried fewer passengers in t he f irst quarter of 2020, as the impact of coronavirus disease 2019 (Covid-19) started to seep into the airline’s operations in March, which is typically the start of the peak season for air travel in the country. Based on its preliminary operating statistics, AirAsia Philippines carried 1.8 million passengers, a 9-percent decline from 1.97 million the year prior, as its number of flights also dropped by a single percentage point to 11,857 flights, from 12,007 flights. Its capacity also dipped slightly by 1 percent to 2.13 million seats from 2.16 million seats, bringing total load factor to 84 percent, a seven-point drop from 91 percent from the previous year. A irAsia Philippines ranked second among AirAsia Group’s subsidiaries that saw the worst declines during the said period. Malaysia AirAsia recorded a 27-percent drop in traffic, followed by AirAsia Thailand at 23-percent, then Indonesia at 7 percent. Its Indian and Japanese subsidiaries posted positive numbers during the said period.

“Despite the weak travel demand amid increasing and unprecedented travel restrictions due to the Covid-19 pandemic, AirAsia reported a healthy group-wide load factor of 80 percent, which was better than its expected 77 percent. This was achieved through proactive capacity management, particularly in the months of February and March, with the cuts most notable in AirAsia Malaysia and AirAsia Thailand,” the document read. At the end of the first quarter, AirAsia had announced a temporary fleet hibernation across its

subsidiaries in view of the Covid-19 pandemic causing largescale border restrictions in many countries. “The effort to assist in containing the spread of Covid-19 is in line with the movement and travel restrictions imposed by governments of the markets that the group fly to. While the safety and well-being of passengers and employees remain the highest priority, AirAsia continues to proactively assess the situation and is prepared to gradually resume its flights as soon as possible,” the document read.

URC income drops 32% on forex losses

niversal Robina Corp. (URC) said its net income dropped by a third to P2.1 billion in the first quarter, from the previous year’s P3 billion due mainly to nonoperating foreign exchange losses on its balance sheet items. The food group of the Gokongwei family said it had a strong start in January and February, which helped cushion the operational disruptions caused by the enhanced community quarantine implemented in the Philippines in mid-March, on top of the continuing impact of the pandemic in other countries where URC operates. Net sales rose 7 percent to P33.5 billion from last year’s P31.2 billion. “As we closed the first quarter in March, our growth momentum was impacted by Covid-19 [coronavirus disease 2019] related disruptions. We have made immediate steps to adjust to this crisis—protecting our employees’ safety and health, maintaining essential food and drinks supply to the public, and providing additional resources to communities and societies in need,” said Irwin Lee, URC president and CEO.

“We are also now evolving our operating model to adapt to the new normal. We are fortunate to be in the food industry and in a better situation than other companies amid this crisis. With a strong balance sheet and healthy cash position, we can weather these short-term challenges and emerge even stronger,” he added. Domestic and international branded consumer foods contributed P25.7 billion to its total sales. Domestic revenues increased by 3 percent while operating income grew faster by 17 percent versus last year, as sales from snack foods and noodles drove growth for the quarter. International revenues fell 2 percent on a constant currency basis and by 8 percent in peso terms to P9.7 billion, while operating income declined by 26 percent, as a result of weakness in Indochina and the negative impact of foreign exchange devaluations in international currencies. Sales from the agro-industrial and commodities businesses amounted to P7.8 billion, up by 9 percent versus last year while operating income declined by 4 percent. VG Cabuag

E-commerce sales hit $26T—UN report

-commerce sales in 2018 climbed to about $26 trillion on strong digital consumption from the world’s largest economies, and this is seen to increase further with most of transactions going online at the time of social distancing in the coronavirus pandemic. In a report, the United Nations Conference on Trade and Development (Unctad) disclosed that sales from e-commerce transactions in 2018 grew by close to 8 percent to $25.6 trillion, from $23.8 trillion in 2017. This means that businesses done by way of digital platforms contributed to at least 30 percent of the world’s GDP that year. By economy, the United States registered the largest e-commerce sales at $8.64 trillion, fueling 42 percent of its GDP in 2018, according to the Unctad. Next to the US are East Asian nations with Japan posting $3.28 trillion worth of sales from the e-commerce space, followed by China’s $2.3 trillion and South Korea’s $1.36 trillion. Rounding up the leading economies on e-commerce sales is the United Kingdom with $918 billion. A mong the f ive countr ies, South Korea recorded the largest share of e-commerce sales to GDP at 84 percent, the Unctad report showed. Notably, e-commerce sales in 2018 in the US, Japan, South Korea and the UK relied heavily on business-to-business deals. The case was different for manufacturing powerhouse China, as its e-commerce is dominated by business to consumer (B2C) transactions. “Developing and transition economies account for about half of the top 20 economies by B2C e-commerce sales in 2018,” the report read. In relation to GDP, B2C is the largest in Hong Kong, China and the UK, but it is the smallest in India, Brazil and Russia. Further, the extent to which internet users engage in online purchases varies considerably among the largest e-commerce

economies, the Unctad observed. In the case of the UK, 87 percent of its internet users shopped online in 2018, whereas it’s just 14 percent in Thailand and 11 percent in India. Among Southeast Asian nations, Thailand and Malaysia headed the pack in terms of B2C sales with $27 billion and $19 billion, respectively. In 2016 e-commerce in the region contributed less than 2 percent—at $14 billion—to its $786.45 billion retail market, according to figures cited in the Philippine E-Commerce Roadmap 2016-2020. As to how the pandemic will affect e-commerce worldwide, Unctad Director of Technology and Logistics said it is difficult for now to forecast the effect, but admitted one thing’s for sure: the lockdown policy in many nations is increasing utilization of digital platforms. In the Philippines, most of br ic k- a nd- mor t a r stores a re closed for the duration of the enhanced community quarantine imposed on Luzon for up to April 30, and was extended until May 15 in many areas of the country, including in Metro Manila. As such, delivery services through mobile apps became in demand, particularly for the transport of food. “The coronavirus crisis has accelerated the uptake of digital solutions, tools and services, but the overall impact on the value of e-commerce in 2020 is still hard to predict,” said Sirimanne. Under the road map, the government is trying to boost e-commerce in the country, targeting to raise its contribution to GDP to 25 percent by this year, from 10 percent in 2015. In doing so, a list of indicators was set to measure the utilization of e-commerce here. By 2020, t here shou ld be 100,000 micro, small and medium enterprises doing e-commerce, at least 40 percent of Internet users shopping online, Internet speed that is fast and competitive, among others, to achieve the objective of the road map. Elijah Felice E. Rosales

Companies BusinessMirror

Wednesday, April 29, 2020

PSE STOCK QUOTATIONS

April 24, 2020

Net Foreign Bid Ask Open High Low Close Volume Value Trade (Peso) Stocks Buy (Sell) FINANCIALs

ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PB BANK PHIL NATL BANK PSBANK RCBC SECURITY BANK UNION BANK BRIGHT KINDLE COL FINANCIAL FERRONOUX HLDG IREMIT MEDCO HLDG MANULIFE NTL REINSURANCE PHIL STOCK EXCH SUN LIFE

48 99.95 59.5 19.84 7.8 38.8 8.5 23.45 41.05 17.5 102 54 0.64 16.4 2.83 0.9 0.29 601 0.57 163 1520

48.5 100 59.55 19.9 7.85 39 8.8 23.5 42.35 17.52 103.4 54.6 0.88 16.42 2.98 0.94 0.3 639 0.66 165 1640

48.5 101.9 60 19.9 7.96 39.45 8.65 23.4 41.2 17.94 106 54.8 0.88 16.2 2.84 0.94 0.295 600 0.65 162.5 1510

48.5 101.9 61.5 19.98 7.98 39.5 8.65 23.9 42.45 17.94 106 54.8 0.88 16.42 2.84 0.94 0.295 600 0.65 163 1510

48 99.6 59.2 19.84 7.78 38.75 8.5 23.4 41 17.5 102 54 0.88 16.2 2.84 0.9 0.29 600 0.65 162.5 1510

48 100 59.5 19.84 7.85 39 8.5 23.5 41 17.52 102 54 0.88 16.4 2.84 0.9 0.29 600 0.65 163 1510

1300 2092570 1272440 113300 283600 4574900 26200 68500 2500 34600 347160 12100 1000 74400 6000 3000 40000 20 10000 350 500

63000 209750110.5 75838087 2252210 2220026 178774415 223027 1614620 103735 610264 35729060 653465 880 1213312 17040 2780 11650 12000 6500 56980 755000

-4800 -42652834.5 -47880128.5 -1188038 -728505 46749265 -277880 -15768 -21143652 -

INDUSTRIAL AC ENERGY 2.3 2.31 2.28 2.36 2.24 2.31 9113000 20899340 ABOITIZ POWER 26.55 26.85 27.4 27.4 26.35 26.55 883500 23458280 BASIC ENERGY 0.17 0.18 0.17 0.18 0.17 0.18 50000 8700 FIRST GEN 18.48 18.5 18.56 18.66 18.24 18.48 2901400 53643628 FIRST PHIL HLDG 55.5 56.2 55.9 56.05 55.5 55.5 9910 554356 MERALCO 256 256.4 258 262.4 255 256 146090 37457966 MANILA WATER 10.7 10.84 10.9 10.94 10.7 10.7 1426100 15382756 PETRON 3.14 3.15 3.2 3.26 3.12 3.14 2520000 7972900 2.34 2.35 2.5 2.5 2.35 2.35 25000 59050 PETROENERGY PHX PETROLEUM 11.24 11.38 11.96 11.96 11.1 11.38 499900 5852878 18.2 18.38 18.66 18.8 18.18 18.2 609900 11179250 PILIPINAS SHELL 7.82 7.95 7.9 7.95 7.8 7.95 30000 237642 SPC POWER AGRINURTURE 8.3 8.31 7.68 8.36 7.68 8.31 2294200 18644508 2.67 2.7 2.61 2.72 2.6 2.67 1955000 5222020 AXELUM 12.56 13.94 13.96 13.96 13.96 13.96 100 1396 CNTRL AZUCARERA CENTURY FOOD 14 14.08 14 14.06 14 14 640200 8975352 DEL MONTE 3.5 3.65 3.5 3.52 3.36 3.52 43000 150090 DNL INDUS 5.47 5.5 5.6 5.69 5.45 5.5 1501500 8253596 EMPERADOR 7.9 7.97 7.98 7.98 7.9 7.9 3070400 24377604 SMC FOODANDBEV 57.7 57.95 59 59 57 57.7 346220 19860791 ALLIANCE SELECT 0.53 0.54 0.52 0.54 0.52 0.53 1148000 606320 FRUITAS HLDG 1.4 1.41 1.44 1.45 1.39 1.4 11107000 15673980 JOLLIBEE 134.3 134.4 137.8 137.8 133.7 134.3 1040620 140113927 MACAY HLDG 6.34 6.35 6.34 6.34 6.31 6.34 4800 30318 6.03 6.06 6.08 6.09 5.85 6.05 467700 2803310 MAXS GROUP 0.126 0.144 0.115 0.144 0.115 0.144 120000 14670 MG HLDG 1.9 1.91 1.91 1.91 1.87 1.91 3120000 5928190 PEPSI COLA 5.97 5.99 6.12 6.12 5.87 5.97 386200 2312577 SHAKEYS PIZZA 1.59 1.63 1.45 1.7 1.44 1.63 9927000 14864980 ROXAS AND CO 4.4 4.5 4.5 4.5 4.49 4.5 9000 40490 RFM CORP 1.39 1.44 1.39 1.44 1.38 1.43 27000 37810 ROXAS HLDG UNIV ROBINA 118.4 118.5 120 120 116.5 118.4 1141500 135349064 VITARICH 0.8 0.81 0.83 0.83 0.8 0.81 2443000 1984590 CONCRETE A 51.05 59.85 59.9 59.9 49.05 50.5 430 22099 CONCRETE B 52.05 69 69.8 69.8 69.8 69.8 110 7678 CEMEX HLDG 1.04 1.05 1.03 1.05 1.03 1.04 2555000 2657520 EAGLE CEMENT 8.2 8.45 7.97 8.47 7.97 8.45 58300 483044 EEI CORP 5.08 5.1 5.12 5.24 5.05 5.08 5018600 25612643 HOLCIM 11 11.28 11.4 11.4 10.9 11.28 578600 6487928 MEGAWIDE 6.65 6.75 7.2 7.2 6.55 6.65 1871100 12533703 8.5 8.88 8.88 8.88 8.88 8.88 1300 11544 PHINMA TKC METALS 0.75 0.79 0.74 0.8 0.74 0.79 41000 31780 VULCAN INDL 0.69 0.71 0.7 0.72 0.69 0.69 315000 218980 140.3 188.6 140.3 140.3 140.3 140.3 50 7015 CHEMPHIL 1.76 1.79 1.79 1.79 1.76 1.79 109000 193740 CROWN ASIA EUROMED 2.9 2.91 2.94 3.3 2.9 2.9 22867000 70292340 4.6 4.93 4.6 4.6 4.6 4.6 1000 4600 LMG CHEMICALS MABUHAY VINYL 3.4 3.5 3.5 3.5 3.4 3.5 7000 24100 CONCEPCION 23.55 24 24.3 24.3 23.55 24 21900 525730 GREENERGY 1.21 1.22 1.17 1.22 1.12 1.22 5407000 6356510 INTEGRATED MICR 5.8 5.9 5.91 6 5.7 5.8 621500 3605959 IONICS 1.15 1.16 1.13 1.15 1.13 1.15 260000 298270 SFA SEMICON 1.04 1.06 1.04 1.06 1.03 1.06 528000 555340 CIRTEK HLDG 8.39 8.4 8.68 9.1 8.32 8.4 11502600 100745375

2797519.9997 -17933145 19495904.0004 -138290.5 -21490256 -6479612 -1442530 -600808 -7884576 -253821 643800 -127440 -41590 -3212794 -11962890 4327383.5 -123910 13388699 -631769 -4320 4699800 576086 14050 -4490 -55474289 -76230 -49720 -50634 -2681394 -3696224 -8518267 1400 7015 -97270 -304700 -328250 -35847 -252870

HOLDING & FRIMS ARTHALAND CORP 0.57 0.59 0.59 0.59 0.57 0.59 1472000 855760 AYALA LAND 28.9 28.95 30.25 30.5 28.9 28.9 17380700 511353825 ARANETA PROP 1.02 1.09 1.03 1.08 1 1.02 84000 88580 BELLE CORP 1.3 1.31 1.31 1.32 1.31 1.31 73000 95750 A BROWN 0.56 0.57 0.55 0.56 0.54 0.56 1598000 880440 CITYLAND DEVT 0.72 0.75 0.72 0.74 0.72 0.74 31000 22720 CEBU HLDG 5.9 5.99 5.9 5.99 5.9 5.9 3000 17709 CEB LANDMASTERS 3.92 3.98 3.95 3.98 3.92 3.98 170000 674630 0.35 0.365 0.365 0.365 0.35 0.35 3580000 1274850 CENTURY PROP 15.9 16.1 16.1 16.1 15.9 16.1 88800 1423000 DOUBLEDRAGON 7.05 7.18 7.15 7.2 7.1 7.17 49200 352180 DM WENCESLAO 0.29 0.3 0.3 0.3 0.3 0.3 60000 18000 EMPIRE EAST FILINVEST LAND 0.9 0.92 0.94 0.94 0.9 0.9 10052000 9133200 0.8 0.81 0.8 0.83 0.8 0.83 12000 9900 GLOBAL ESTATE 8990 HLDG 10.22 10.94 11.48 11.48 10 10.5 52100 585218 0.81 0.82 0.85 0.85 0.81 0.82 448000 369480 PHIL INFRADEV MEGAWORLD 2.59 2.62 2.68 2.71 2.59 2.59 24782000 64849460 MRC ALLIED 0.162 0.164 0.165 0.166 0.157 0.164 13250000 2141370 PHIL ESTATES 0.3 0.325 0.325 0.325 0.325 0.325 10000 3250 PRIMEX CORP 1.5 1.51 1.52 1.65 1.49 1.51 691000 1043380 ROBINSONS LAND 15.38 15.5 15.6 15.6 15.2 15.5 5214900 80599468 PHIL REALTY 0.234 0.238 0.24 0.24 0.233 0.235 160000 37690 ROCKWELL 1.5 1.54 1.55 1.55 1.54 1.54 127000 195910 SHANG PROP 2.68 2.69 2.67 2.7 2.67 2.69 30000 80620 1.85 1.88 1.89 1.89 1.85 1.88 18000 33740 STA LUCIA LAND SM PRIME HLDG 28.6 28.65 30.25 30.25 27.5 28.65 16089200 465182705 3.93 4 3.96 4.09 3.93 4 57000 228830 VISTAMALLS SUNTRUST HOME 1.25 1.28 1.2 1.33 1.2 1.28 3194000 4064270 VISTA LAND 4.04 4.07 4.1 4.15 4.02 4.06 713000 2,892,200(

-239048170 -3930 5500 -575670 -10800 -605036 164580 -733450 -62886 -30536610 1580 -18937226 -53770 -153417450 1,264,190.0001)

PROPERTY ARTHALAND CORP 0.56 0.57 0.56 0.57 0.55 0.57 732000 407710 AYALA LAND 30.2 30.3 30.6 31.15 30.2 30.2 5184700 158624895 ARANETA PROP 1.04 1.08 1.08 1.08 1.04 1.04 54000 56200 BELLE CORP 1.31 1.34 1.31 1.34 1.3 1.31 119000 156140 A BROWN 0.54 0.55 0.54 0.57 0.53 0.55 1671000 914090 CITYLAND DEVT 0.72 0.75 0.75 0.75 0.74 0.74 12000 8890 CROWN EQUITIES 0.121 0.131 0.134 0.134 0.134 0.134 10000 1340 CEBU HLDG 5.92 5.99 5.9 6 5.9 5.99 65200 390563 3.92 4.02 4 4.02 3.98 4.02 376000 1509300 CEB LANDMASTERS 0.36 0.365 0.355 0.36 0.355 0.36 5310000 1901700 CENTURY PROP DOUBLEDRAGON 16 16.08 16 16.1 15.9 16.08 58300 935424 7.1 7.15 6.98 7.15 6.95 7.15 11800 83813 DM WENCESLAO 0.29 0.325 0.29 0.29 0.29 0.29 90000 26100 EMPIRE EAST FILINVEST LAND 0.92 0.94 0.93 0.94 0.92 0.94 2236000 2077880 0.83 0.85 0.8 0.87 0.79 0.83 444000 361010 GLOBAL ESTATE 8990 HLDG 11.5 11.52 11.56 11.56 11.5 11.5 9300 106956 PHIL INFRADEV 0.8 0.82 0.8 0.83 0.79 0.8 1112000 892740 MEGAWORLD 2.67 2.71 2.74 2.77 2.67 2.67 8556000 23250880 MRC ALLIED 0.165 0.166 0.171 0.171 0.162 0.165 17690000 2934970 PHIL ESTATES 0.305 0.325 0.33 0.33 0.3 0.325 1010000 320500 PRIMEX CORP 1.53 1.66 1.68 1.68 1.53 1.65 32000 49650 ROBINSONS LAND 15.54 15.6 15.32 15.8 15.3 15.6 2365700 36701108 PHIL REALTY 0.233 0.242 0.231 0.248 0.23 0.241 320000 75780 ROCKWELL 1.51 1.53 1.51 1.56 1.51 1.53 266000 410950 2.65 2.7 2.7 2.71 2.65 2.65 43000 115420 SHANG PROP 1.85 1.87 1.89 1.89 1.85 1.85 35000 65430 STA LUCIA LAND SM PRIME HLDG 30.25 30.4 30.2 30.45 30.05 30.25 8418700 254802130 3.9 4.1 4.19 4.5 3.87 4.1 300000 1233160 VISTAMALLS SUNTRUST HOME 1.2 1.23 1.23 1.26 1.18 1.2 1893000 2310870 VISTA LAND 4.07 4.08 4.1 4.17 4.06 4.08 3564000 14550680

-32247860 -37400 8140 307287 -598040 265319.9997 -8393 -99170 -11500 -9651510 2888486 -26420 -63074950 -522650

SERVICES

ABS CBN GMA NETWORK MANILA BULLETIN MLA BRDCASTING GLOBE TELECOM PLDT APOLLO GLOBAL DFNN INC DITO CME HLDG ISLAND INFO JACKSTONES NOW CORP TRANSPACIFIC BR PHILWEB 2GO GROUP ASIAN TERMINALS CHELSEA CEBU AIR INTL CONTAINER LBC EXPRESS LORENZO SHIPPNG MACROASIA METROALLIANCE A METROALLIANCE B PAL HLDG HARBOR STAR ACESITE HOTEL BOULEVARD HLDG DISCOVERY WORLD WATERFRONT IPEOPLE STI HLDG BERJAYA BLOOMBERRY PACIFIC ONLINE LEISURE AND RES PH RESORTS GRP PREMIUM LEISURE ALLHOME METRO RETAIL PUREGOLD ROBINSONS RTL PHIL SEVEN CORP SSI GROUP WILCON DEPOT APC GROUP EASYCALL GOLDEN BRIA PRMIERE HORIZON

16.6 4.92 0.36 10.22 2208 1225 0.037 2.85 2.28 0.071 1.48 1.87 0.199 2.45 10.92 15.54 3.42 47.55 78 13 0.7 5.09 2.63 2.51 7 0.9 1.11 0.029 1.51 0.405 6.04 0.355 2.43 5.49 1.68 1.5 2.86 0.315 5.75 1.72 46.3 60.8 130 1.19 13.98 0.3 6.9 320 0.265

16.74 4.93 0.375 10.68 2210 1227 0.039 3.03 2.29 0.08 1.96 1.88 0.203 2.48 10.98 16 3.45 47.6 79.9 13.5 0.79 5.1 2.64 2.59 7.3 0.91 1.23 0.03 1.84 0.42 8.4 0.36 2.49 5.5 1.69 1.51 2.99 0.32 5.8 1.73 46.4 61.3 135.9 1.2 14.1 0.32 7 330 0.27

16.78 4.93 0.37 10.68 2200 1174 0.039 2.81 2.27 0.08 1.78 1.9 0.196 2.6 10 16.88 3.6 47.05 82.2 13 0.79 4.78 2.17 2.1 7.29 0.93 1.24 0.03 1.32 0.415 8.4 0.35 2.27 5.71 1.68 1.51 2.81 0.31 5.9 1.73 46.95 61.6 137.8 1.22 14.1 0.31 7.67 320 0.24

16.8 4.93 0.37 10.68 2216 1230 0.039 3.03 2.33 0.08 1.78 1.91 0.206 2.6 12.5 16.88 3.68 48 82.2 13.5 0.79 5.09 2.89 2.82 7.35 0.95 1.24 0.03 1.51 0.42 8.4 0.36 2.6 5.71 1.69 1.51 3.1 0.315 5.9 1.75 46.95 61.6 137.8 1.24 14.4 0.32 7.67 320 0.275

16.6 4.92 0.36 10.68 2172 1172 0.038 2.81 2.22 0.079 1.78 1.85 0.196 2.42 9.5 15.4 3.42 47 78 13 0.79 4.69 2.06 2.1 7 0.89 1.11 0.029 1.32 0.4 8.4 0.335 2.27 5.46 1.65 1.5 2.81 0.305 5.7 1.71 45.95 60.8 130 1.2 13.8 0.31 6.8 320 0.24

16.6 4.93 0.36 10.68 2208 1227 0.039 3.03 2.28 0.079 1.78 1.88 0.203 2.45 10.92 16 3.42 47.55 78 13.4 0.79 5.09 2.64 2.51 7.3 0.91 1.11 0.03 1.51 0.42 8.4 0.355 2.49 5.5 1.69 1.5 2.99 0.315 5.75 1.72 46.4 60.8 130 1.2 14.1 0.32 7 320 0.265

74000 54000 290000 100 54135 371905 1500000 27000 40507000 550000 3000 1637000 9000000 2277000 5156200 8500 3472000 137800 797280 1700 22000 10297000 31020000 1012000 16900 1244000 9000 7600000 2000 1550000 1000 9710000 1145000 4701000 211000 122000 35000 6020000 1637000 1620000 3980300 475570 72450 2532000 4922800 480000 320900 60 47690000

1237072 266030 104600 1068 119128610 -37620160 452470040 102133905 57600 80620 92115680 -3141750 43800 5340 3082600 -19290 1810460 5648290 123090 58618684 -526768 134516 12240010 -22520 6525800 -1576845 63779560 -10370622.5 22650 -1300 17380 51,003,150( 13,842,260.0003) 80695900 2577640 -303500 122763 1131670 10120 227800 2830 628800 8400 3371950 34000 2827990 25917961 -1854096 348770 87450 183260 103920 1851650 9488023 4507734 2787810 184528275 10495555 28992740 -9303856 9648138 -231570 3059240 -2222650 68737970 20178186 151300 2267630 19200 -12800 12472330 -299800

MINING & OIL

ATOK 10.06 10.6 10.7 10.7 10.7 10.7 500 5350 APEX MINING 1.01 1.02 1.03 1.05 1 1.02 3706000 3827380 ABRA MINING 0.001 0.0011 0.001 0.0011 0.001 0.0011 144000000 145000 ATLAS MINING 1.78 1.9 1.9 1.9 1.9 1.9 3000 5700 BENGUET A 1.04 1.1 1.03 1.03 1.03 1.03 10000 10300 COAL ASIA HLDG 0.201 0.205 0.209 0.209 0.205 0.205 160000 33060 CENTURY PEAK 2.69 2.72 2.71 2.71 2.71 2.71 50000 135500 6.5 6.6 6.7 6.7 6.5 6.5 4600 30350 DIZON MINES FERRONICKEL 0.74 0.75 0.75 0.75 0.73 0.75 1009000 747170 GEOGRACE 0.203 0.207 0.198 0.218 0.196 0.203 940000 190840 LEPANTO A 0.083 0.084 0.079 0.085 0.079 0.083 15530000 1259720 LEPANTO B 0.081 0.094 0.088 0.094 0.088 0.094 1370000 121380 MANILA MINING A 0.0066 0.0067 0.0065 0.0066 0.0065 0.0066 87000000 570900 MANILA MINING B 0.007 0.0075 0.0075 0.0075 0.0075 0.0075 5000000 37500 MARCVENTURES 0.57 0.58 0.58 0.58 0.56 0.58 325000 185100 56999.9999 NIHAO 0.9 0.96 0.89 0.96 0.89 0.96 12000 11400 NICKEL ASIA 1.62 1.63 1.63 1.69 1.6 1.62 7987000 13122180 -3760480 ORNTL PENINSULA 0.475 0.5 0.495 0.495 0.48 0.48 490000 236400 PX MINING 2.28 2.32 2.33 2.34 2.29 2.32 564000 1306660 -302830 SEMIRARA MINING 11.82 11.88 12 12.02 11.82 11.82 956500 11367590 -4990594 UNITED PARAGON 0.004 0.0041 0.004 0.004 0.004 0.004 16000000 64000 ACE ENEXOR 6.75 7.03 7.22 7.22 6.7 6.75 240700 1656293 -673 PHILODRILL 0.0082 0.0084 0.0083 0.0084 0.0083 0.0084 14000000 117300 4.45 4.46 4.52 4.74 4.31 4.46 1242000 5565350 -206200 PXP ENERGY PREFFERED AC PREF B2R 495 504 495 504.5 495 504.5 1550 769845 CPG PREF A 98 100 99.5 99.5 99.5 99.5 500 49750 DD PREF 99 100 100 100 100 100 6720 672000 FGEN PREF G 103 107.4 107.5 107.5 103.2 103.2 3420 353030 MWIDE PREF 99.7 100 100 100 100 100 130 13000 PNX PREF 3A 98.85 99.5 98.8 98.8 98.8 98.8 380 37544 PNX PREF 4 1000 1010 1005 1010 1005 1010 555 558050 1001 1010 1000 1000 1000 1000 100 100000 PCOR PREF 3A PCOR PREF 3B 1020 1035 1011 1020 1011 1020 230 234510 SMC PREF 2C 76.5 76.9 76.5 76.5 76.4 76.4 2200 168280 SMC PREF 2D 74 74.5 74.9 74.9 74.9 74.9 10 749 SMC PREF 2E 74.2 74.9 74.2 74.2 74.2 74.2 30 2226 SMC PREF 2F 75.05 75.5 75.5 75.5 75.5 75.5 40000 3020000 SMC PREF 2G 74.4 75.05 74.4 75.05 74.4 75.05 11160 831057 SMC PREF 2H 74.1 75 74.1 74.1 74.1 74.1 3720 275652 SMC PREF 2I 75 75.5 75.5 75.5 75 75.5 7000 526000 PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 15.5 15.9 15.78 15.9 15.78 15.9 510000 8108212 8106622 WARRANTS LR WARRANT 0.78 0.79 0.79 0.79 0.78 0.79 4000 3150 SMALL & MEDIUM ENTERPRISES ITALPINAS 2.18 2.2 2.25 2.33 2.13 2.18 9011000 19911690 177470 KEPWEALTH 7.15 7.19 7.2 7.25 6.9 7.15 89800 632729 XURPAS 0.63 0.64 0.66 0.66 0.61 0.64 4150000 2613230 -64270 EXHANGE TRADE FUNDS FIRST METRO ETF 83.5 85 86 86 83.5 83.5 27770 2344917.5 115552.5

www.businessmirror.com.ph

Meralco asks DOE to delay bidding for 1,800-MW supply

By Lenie Lectura

@llectura

HE Manila Electric Company (Meralco) is asking the Department of Energy (DOE) to delay the conduct of a competitive auction for 1,800 megawatts (MW) of power capacity requirement. Meralco President Ray Espinosa said the DOE has approved the terms of reference (TOR) for the 1,800MW power supply agreement (PSA). The company wants to schedule the bidding at a still undetermined date amid the Enhanced Community Quarantine (ECQ). He explained that Meralco’s biggest concern is the volatility of fuel prices and uncertainty of prices going forward. “While the DOE has cleared our terms of reference for the 1,800 MW CSP, we are in dialogue with DOE to discuss with them a possible push to a later date of this CSP given the volatile fuel prices in the market today. The volatility is so high that it would be difficult for us to have a

proper valuation, which is a distinguishing criteria to determine who will win in the CSP,” said Espinosa. He meant that if the bids are evaluated now using artificially low fuel prices, this could be disadvantageous for consumers because when the PSA is implemented in 2025, fuel prices go back up to normal levels. Also, bidders may raise concerns about submitting binding bids given prevailing uncertainty. “The other problem with CSP today is the ECQ, which actually prevents us from holding face to face meetings with the bidders for conducting and receiving voluminous documents that will accompany each bid,” added Espinosa. The DOE has yet to act on Meral-

co’s request. “We are addressing the details with the DOE and we will just inform everyone on the decision of the DOE once we get it,” he said. The 1,800MW PSA consists of the 1,200MW PSA that was supposed to undergo a second round of CSP combined with “portions from 1,000MW and 500MW baseload CSPs that were supposed to be conducted this year.” According to Meralco utility economics head Lawrence Fernandez, the company was supposed to conduct three CSPs this year. These are 1,000MW baseload for 2025, 500MW baseload for 2027 and 600MW mid-merit for 2023. Last year, Meralco conducted three CSPs. These are the 1,200MW baseload capacity starting 2020, 500MW mid-merit starting 2020 and the 1,200-MW baseload starting 2024. The first two CSPs were successful but the last one resulted in a failed bid. Meralco had pushed for the conduct of a second round of CSP for the 1,200-MW baseload starting 2024 but later on decided to discontinue this. “On top of the 1,200MW last year, we were supposed to have two more baseload CSPs this year. We just com-

bined the 1,200MW and portions [600MW] from the two other baseload CSPs this year to make it to one new CSP of 1,800MW,” he explained. He added Meralco will review the line up after the 1,800MW is bidded out to consider the effect on present and future power demand of the current situation. Meanwhile, Meralco said it provided living quarters for frontliners of the Medical City. Meralco offered the company’s Multi-Purpose Hall (MPH) at the Meralco Fitness Center in Ortigas, just a 10-minute walk from TMC, for its frontliners who had been living at the hospital since the ECQ was announced. Initially, 32 TMC frontliners were welcomed by Meralco to stay in their MPH as long as they needed, providing them beddings, amenity kits, home-cooked hot meals four times per day, refrigerator, microwave, exercise equipment, shower and toilet facilities, internet access, 30 Smart SIM cards, including a TV with Netflix. “These frontliners treat Covid-19 [coronavirus disease 2019] patients and we wanted to do our best to make them feel loved, cared-for, safe, and comfortable,” said Espinosa.

Pryce Corp. Q1 net income rises by 9.4% P

ryce Corp. reported a net income of P396.36 million in the first three months of the year, up by 9.4 percent from the level posted in the same period last year. Revenue for the period also rose to P3.18 billion, 24.2 percent higher from last year’s P2.56 billion. The growth was attributed to the strong sales of its liquefied petroleum gas (LPG), along with its cylinders and accessories, and LPG gensets. LPG products accounted for 95.3 percent of total revenues, while the balance was covered by sales of industrial gases, real estate, and pharmaceutical products. “The rise in revenue is mainly due to the 15.1-percent growth in LPG sales volume, to 58,745 metric tons [MT] compared to year-ago volume

of 51,047 MT,” it said. Pryce Corp. said it expects its performance in the succeeding quarters to be affected by the coronavirus disease 2019 (Covid-19) pandemic as government enforces the enhanced community quarantine (ECQ). “The government’s ECQ only slightly affected the company’s first quarter performance since the ECQ was implemented near the end of the quarter. However, the company expects the succeeding quarters to be adversely affected by the [Covid-19] pandemic,” it said. It estimated a decline of anywhere between 5 percent and 10 percent in sales volume (compared to 2019 levels) if the pandemic continues throughout the year. Lenie Lectura

SMC donates testing machines, kits to DOH

an Miguel Corp. (SMC) on Tuesday said it is donating five sets of testing machines and test kits to critical government centers in the country, through the Department of Health (DOH), to help boost capacity and efficiency to mass test for the coronavirus disease 2019 (covid-19). The company said its machines called RT-PCR machines and highthroughput automated RNA extraction systems will allow government to conduct additional 11,000 tests per day. It would also allow beneficiary laboratories to test faster, using less time and human intervention. Testing kits will also be distributed for DOH to be able to conduct additional 20,000 tests. The machines, which arrived Monday via a chartered flight, will be distributed by the DOH to the Research Institute for Tropical Medicine, which will get two sets of equipment. The rest will be delivered to San Lazaro Hospital, Vicente Sotto Medical Center in Cebu and Southern Philippines Medical Center in Davao. “We are one with the government in wanting to curb the spread of the virus, and with enough capacity to test a greater number of people, we are optimistic we will be able to gradually

and safely restart the economy,” said Ramon S. Ang, company president and COO. The company has began preparations for a gradual back-to-work scenario with a wide-ranging plan that includes, among others, testing for its over 30,000 frontliners within the organization along with strict regulations on good hygiene, social distancing, mass gatherings. “It is essential that we take early action to ensure our working conditions are safe to return to for our employees and affiliates when government relaxes restrictions,” said Ang. He said the company is working closely with the government to be able to certify who is clear to return to work. “We are committed to getting the economy back and running without risking a second wave of Covid-19 cases,” said Ang. San Miguel’s facilities have remained open throughout the quarantine period, to make sure that essential goods and services are available. These include food, beverages, power, fuel, expressways, among others. The company has also repurposed its liquor plants to be able to produce ethyl alcohol for donation to medical health workers and other government frontliners. VG Cabuag

mutual funds

April 28, 2020

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 180.39 -31.39% -12.45% -8.82% -28.39% ATRAM Alpha Opportunity Fund, Inc. -a 0.9486 -40.47% -14.21% -8.96% -31.36% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.4054 -41.67% -17.24% -11.46% -34.6% Climbs Share Capital Equity Investment Fund Corp. -a 0.629 -32.26% n.a. n.a. -29.89% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6493 -25.39% n.a. n.a. -23.55% First Metro Save and Learn Equity Fund,Inc. -a 3.9327 -28.41% -9.67% -7.87% -26.19% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.609 -30.51% -13.77% n.a. -28.66% MBG Equity Investment Fund, Inc. -a 73.43 -42.28% n.a. n.a. -28.94% PAMI Equity Index Fund, Inc. -a 35.9949 -30.88% -11.11% n.a. -29.81% Philam Strategic Growth Fund, Inc. -a 388.05 -28.65% -10.37% -7.83% -27.17% Philequity Alpha One Fund, Inc. -a,d,5 0.8244 n.a. n.a. n.a. -19.97% Philequity Dividend Yield Fund, Inc. -a 0.9294 -29.18% -10.22% -6.96% -27.78% Philequity Fund, Inc. -a 27.1959 -29.66% -9.66% -6.93% -28.24% Philequity MSCI Philippine Index Fund, Inc. -a 0.7133 -31.42% n.a. n.a. -29.94% Philequity PSE Index Fund Inc. -a 3.6661 -30.49% -10.59% -6.95% -29.82% Philippine Stock Index Fund Corp. -a 612.71 -30.4% -10.59% -7.17% -29.74% Soldivo Strategic Growth Fund, Inc. -a 0.5551 -40.61% -14.69% -11.15% -34.8% Sun Life Prosperity Philippine Equity Fund, Inc. -a 2.876 -33.61% -11.39% -8.1% -31.67% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.703 -30.55% -10.74% n.a. -29.76% United Fund, Inc. -a 2.6073 -30.29% -8.52% -6.05% -28.63% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 82.1445 -30.25% -10.11% -6.35% -29.76% ATRAM AsiaPlus Equity Fund, Inc. -b $0.8787 -14.84% -2.36% -4.25% -14.56% Sun Life Prosperity World Voyager Fund, Inc. -a $1.2082 -6.94% 2.51% n.a. -12.37% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.4905 -13.47% -5.44% -5.21% -4.63% ATRAM Philippine Balanced Fund, Inc. -a 1.932 -16.7% -6.14% -3.98% -11.42% First Metro Save and Learn Balanced Fund Inc. -a 2.2862 -13.33% -3.8% -5.02% -13.12% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1816 n.a. n.a. n.a. -20.53% NCM Mutual Fund of the Phils., Inc. -a 1.7651 -7.97% -2.17% -2.12% -10.09% PAMI Horizon Fund, Inc. -a 3.2494 -11.6% -4.23% -3.77% -14.24% Philam Fund, Inc. -a 14.5238 -12.48% -4.43% -3.87% -14.37% Solidaritas Fund, Inc. -a 1.8078 -15.58% -5.3% -3.53% -14.96% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.0632 -20.52% -6.3% -4.9% -20.72% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.8795 -11.91% n.a. n.a. -13.41% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.7673 -22.95% n.a. n.a. -22.99% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.744 -25.17% n.a. n.a. -25.09% Sun Life Prosperity Dynamic Fund, Inc. -a 0.75 -23.62% -7.62% -6.68% -23.06% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -b $0.03791 5.1% 2.21% 1.33% -0.84% PAMI Asia Balanced Fund, Inc. -b $0.9093 -8.84% -1.34% -2.8% -12.39% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.5192 -5.66% 1.86% 0.98% -10.01% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.0486 -3.66% 0.68% n.a. -7.1% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 361.96 4.04% 2.98% 2.39% 1.16% ATRAM Corporate Bond Fund, Inc. -a 1.928 2.32% 0.86% -0.24% 1.37% Cocolife Fixed Income Fund, Inc. -a 3.1663 4.87% 5.19% 5.12% 1.6% Ekklesia Mutual Fund Inc. -a 2.266 4.92% 2.71% 2.12% 1.84% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4103 6.92% 2.86% 1.65% 2.17% Philam Bond Fund, Inc. -a 4.4652 10.79% 3.32% 1.98% 2.11% Philam Managed Income Fund, Inc. -a, 6 1.2733 6.38% 3.53% 1.9% 1.32% Philequity Peso Bond Fund, Inc. -a 3.8592 6.94% 3.57% 1.83% 1.87% Soldivo Bond Fund, Inc. -a 1.0152 10.5% 3.18% 1.37% 5.28% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1117 7.81% 4.48% 2.72% 1.16% Sun Life Prosperity GS Fund, Inc. -a 1.7216 7.63% 4.03% 2.34% 1.21% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $467.29 2.86% 2.23% 2.32% -0.2% ALFM Euro Bond Fund, Inc. -a Є213.65 -1.15% 0.5% 0.51% -2.77% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.1786 0.97% 1.78% 1.72% -2.37% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0256 1.59% 0.93% 0.96% -0.78% PAMI Global Bond Fund, Inc -a $1.0445 -1.69% -0.75% -0.95% -4.63% Philam Dollar Bond Fund, Inc. -a $2.3807 5.38% 2.59% 2.07% -0.96% Philequity Dollar Income Fund Inc. -a $0.0594755 2.21% 1.43% 1.35% -1.39% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1359 5.39% 1.94% 1.94% -1.24% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 127.3 3.87% 3.08% 2.32% 1.21% First Metro Save and Learn Money Market Fund, Inc. -a 1.0367 2.76% n.a. n.a. 1.01% Sun Life Prosperity Money Market Fund, Inc. -a 1.2772 3.4% 3% 2.52% 1% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0411 1.68% n.a. n.a. 0.38% Feeder Fund Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.9 n.a. n.a. n.a. -9.09% a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago. c - Listed in the PSE. d - in Net Asset Value per Unit (NAVPU). 1 - Launch date is January 3, 2019. 2 - Launch date is January 28, 2019. 3 - Launch date is February 1, 2019. 4 - Launch date is November 15, 2019. 5 - Launch date is September 28, 2019. 6 - Renaming was approved by the SEC last October 12, 2018 (formerly, One Wealthy Nation Fund, Inc.). 7 - Adjusted due to stock dividend issuance last October 9, 2019. 8 - Launch date is December 09, 2019. "While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa. com.ph to see the latest NAVPS/NAVPU."

Entrepreneur BusinessMirror

Nearly 200,000 SBs qualify for wage subsidy

early 200,000 small business employers have prequalified for the government’s wage subsidy program for workers affected by the implementation of the enhanced community quarantine (ECQ). This was disclosed in President Duterte’s fifth weekly report submitted to Congress on Monday night on his use of additional powers in dealing with the coronavirus disease 2019 (Covid-19) crisis. “As of 22 April 2020, the Bureau of Internal Revenue [BIR] has notified 199,377 small business employers that they are prequalified for the Small Business Wage Subsidy (SBWS) program,” Duterte said in his report. Duterte noted that to date, around 6,403 employers have completed the application process on behalf of 130,188 employees. The SBWS program will provide around 3.4 million workers in the formal sector with salary subsidies amounting to a combined P51 billion for two months. The wage subsidies range from P5,000 to P8,000 per month per employee for two months, depending on the minimum wage levels in the regions where the workers are employed. Of the 3.4 million employees, 2.6 million are in the BIR alpha list and will be given priority to incentivize compliance of registering businesses with the Bureau and with the Social Security System (SSS). The remaining 800,000 employees are not on the alpha list and will be given second priority. Actual payouts are scheduled on May 1 to 15 for the first tranche, and May 16 to 31 for the second tranche. Duterte also highlighted in his report that the government is studying a proposal to Congress to amend the National Internal Revenue Code (NIRC) to stretch the net operating loss carry-over (Nolco) period from three years to five years to help smallsized enterprises to cope with losses and a credit guarantee program to cover loans worth P120 billion to grant easier access to bank financing even during crises. In a separate statement, Finance Secretary Carlos Dominguez III said stretching the Nolco by two more years, which, under the NIRC, is up to three taxable years only, would require congressional approval. “We will propose to Congress an extended Nolco of five years for net losses that will be incurred in 2020. This means that small business’ losses this year may be deducted from their income for up to the next five years for tax purposes. The purpose of extending Nolco is to give them more time to recoup their losses arising from the implementation of the enhanced community quarantine [ECQ] and other measures to contain the spread of Covid-19,” Dominguez said. Dominguez said Department of Finance estimates that financial losses of small businesses will amount to P465.3 billion as a result of the ECQ and other containment measures that have forced them to temporarily close shop, or to continue operating but with only a skeletal force. PNA

Editor: Vittorio V. Vitug • Wednesday, April 29, 2020 B3

In time of Covid-19, finding the right logistics partner is key to biz survival By Roderick L. Abad

@rodrik_28

Contributor

IFFERENT factors must be considered to ensure the success (or in these times even survival) of any business—whether big or small and medium enterprise (SME). But one thing for sure is that running a profitable enterprise needs the right logistics partner, especially in difficult times like this unprecedented coronavirus disease 2019 (Covid-19) pandemic.

Supply chains are complicated to handle because of the ever-changing demands and concerns on the transport system. Implementing efficient logistics is a key to cope with the requirements of the market and staying ahead of the competition. For JP Marzan Project Ventures Inc. (JPMPVI), one of the leading logistics firms in the Philippines, it’s important to get a suitable partner with proven track record since vast knowledge, skills and professional management experience are needed to provide logistics services effortlessly.

But how can the right logistics ally help a business to succeed? The unique logistics network of supply chains best deals with various processes, such as production, shipment, warehousing, construction, trade, and delivery of supplies. Any business that lack proper logistics would find it hard to race against its counterparts. Based on a study conducted by Accenture, more than 70 percent of supply chain officers agree that the supply chain will be a major driver for better services in their companies this year.

WORKERS prepare the heavy-lift support truck of JP Marzan Project Ventures Inc. for heavy cargo transport needs of its partner-clients.

“Building and maintaining a positive reputation through proper supply chain management would draw success for the business,” said Jay Marzan, chairman and chief executive officer of JPMPVI. This critical part of logistics is “used to plan and coordinate supply movements safely, timely and effectively,” he added. Hence, it’s crucial to recruit competent personnel, or partner with an experienced service provider to handle their supply chains seamlessly and to reach the supplies’ destination here and abroad. International business leaders know that having established logistics partners can help them lessen transportation and warehousing costs. In fact, Bain Research shows

that there is about a 6 percent to 10 percent hike in the total margins of firms with maximized distribution networks due to reliable logistics partners that manage the shipping of goods. JPMPVI recognizes that Filipinos value professionalism and relationship in partnerships. The firm believes that cooperation among the people helps a business grow, or a nation to progress. The company has always lived up to its commitment to be a partner for the country’s development, especially in these trying times that the flu pandemic has left most of the industries and businesses paralyzed. This is apparent in the global road freights sector’s underperformance lately.

The International Road Transport Union reveals that there was a decrease of 20 percent in activity and accumulated losses of $1 trillion in the industry. The 0.7-percent growth of global container volumes from last year has been rapidly erased due to the virus with an estimated loss of $350 million per week, according to Baker McKenzie. “The current Covid-19 situation is showing us that implementing efficient logistics is a key factor when keeping up with the demands of customers, especially in crucial times when the economy is at its lowest and in need of dire recovery,” said Marzan. “As a reliable logistics partner, we want to let our partners know that we will help them to get back from this challenge through our safe, fast, and efficient services.” Incepted in 1972, JPMPVI started as RV Marzan Brokerage and used to handle customs brokerage and deliveries around Luzon. It has since then established itself as a reputable logistics company, consistent with the best business practices. The company has also expanded its services befitting the needs of companies, such as heavy-lift support, trucking, forwarding, logistics, domestic distribution, warehousing, rigging works, plant transfer, factory machine installation, power plant assembly, project consultation, equipment rental, civil engineering, and trading of industrial equipment and services.

Europe confronts reality that many companies won’t survive virus

N central Germany, a couple in their mid-60s running a travel agency is seeing retirement drift at least a decade into the future. In a small town in southern Italy, a wellknown restaurant is closing for good. And on France’s northwestern coast, a bistro owner is concerned the majority of restaurants around him will simply disappear. The economic damage wrought by the coronavirus is clear in countless stories across Europe, from business owners furiously fighting to keep their firms afloat to those who see no hope. In France, where more than half of small firms fear bankruptcy, the crisis led to a public showdown on live television between entrepreneurs and the country’s finance minister. Even with massive government financial support, countries face the prospect of countless businesses going under, destroying livelihoods and jobs, as well as weakening a key part of the economy. Europe’s 25 million small and medium sized enterprises (SME)—officially defined as having fewer than 250 staff - employ more than 90 million people. “We can and should even massively support these businesses if only because they represent a huge

source of job creation,” said Nadine Levratto, a research director at the French National Centre for Scientific Research. “They really are a precious public good.” Often with low margins and few reserves, small businesses are more vulnerable than bigger groups. SMEunited, an employers’ association representing SMEs at a European level, showed in a recent survey that about 90 percent report being hit by the pandemic, with an EU-wide average 50 percent loss in turnover. Country-level data is similarly grim: France’s small business federation CPME says 55 percent of small firms are concerned about bankruptcy, and a group representing Irish SMEs says close to 30 percent won’t survive if the situation doesn’t improve within the next two months.

Debt worries

IN Weimar, Germany, Guenter Conrad and his wife have scrapped plans to hand their travel agency to a successor after running it for three decades. With no money coming in, he says the mounting debt they’ll have to take on will mean closing one of their two shops, cutting staff, and juggling most of the workload them-

selves to make their business viable. Germany has promised unlimited loan guarantees for struggling small businesses, alongside €50 billion ($54 billion) of free cash injections. In Italy, subsidies and loans have proven harder to come by, and some don’t see a point in fighting on. They include Mariagrazia Ferrandino, a restaurant owner in the southern town of Apricena. She plans to keep her business shut and apply for unemployment support. “I don’t need another mortgage,” she wrote in an open letter to Italy’s prime minister, Giuseppe Conte. The crisis raises grim questions for policy makers—often keen to defend “the little guy” and hold up SMEs as the backbone of the economy, but hesitant to ramp up more debt and ultimately put the bill on the taxpayer. In France, the dilemma came to a head one night on national television. A gym owner, a construction entrepreneur, and a Michelin-starred chef bombarded Finance Minister Bruno Le Maire with questions, arguing that many small businesses will go bust if they are forced to pay rents or loans. Le Maire responded the govern-

ment would consider tax forgiveness instead of just delays, but warned the cost for the state would be huge. “We will need to be able to help businesses with capital, what we call their solvency,” Bank of France Governor Francois Villeroy de Galhau said Thursday on BFMTV. “But that will have to be done with much more selectivity.” Erasing debts could be justified both in terms of protecting jobs and the economy. One question is whether governments want to set conditions. In the US, for instance, small companies are able to receive forgivable loans that convert into grants if at least 75 percent of the funding is spent on payroll. Lucia Cusmano, who leads the SME and Entrepreneurship Division at the OECD Center for Entrepreneurship, says the scale of the challenge and the speed needed in interventions is such that conditionality is difficult to apply. But even with broad support, “some destruction of business as a result of the crisis is inevitable.” A number of countries have begun easing tough restrictions, but the experience from China, where lockdown rules have been loosened

since March, shows consumers are reluctant to go out and spend. Monthly revenues of Chinese SMEs are down about 60 percent from a year ago, according to a study by the PBC School of Finance at Tsinghua University. That’s a worry for retailers, restaurants and bars. Hubert Jan, owner of the Bistrot Chez Hubert on the south Brittany coast in France, is also concerned about rules imposing bigger distances between diners. There will be no point in restaurants reopening if they can’t break even at half the normal capacity, he expects. “We might find ourselves with a catastrophe of 60 percent of restaurants disappearing from one day to the next.” But despite the threat that will linger even after restrictions are lifted, SMEunited Secretary General Veronique Willems is hopeful that many companies will show resilience, and is calling on governments to do their utmost to contain the pandemic. “We are now discussing recovery strategies already, but if the emergency strategies don’t work out, we won’t need recovery strategies for SMEs anymore because there won’t be any left,” she said. “It would be an economic massacre.” Bloomberg News

Small business loan program in US restarts, runs into snags

EW YORK—The second round of loan applications for the US government’s small business relief program has been slowed by computer issues at the Small Business Administration (SBA). Lenders complained on Monday that they couldn’t get their applications into the SBA system known as E-Tran that processes and approves loans. The agency said it notified lenders Sunday that it was limiting the number of applications any lender could submit at once. The SBA began accepting applications at 10:30 a.m. Eastern time for $310 billion in funding. The program’s initial $349 billion was exhausted in less than two weeks after more than 1.7 million loans were approved. That first round was also slowed by computer issues at the SBA.

Banks had thousands of applications ready to go Monday. Richard Hunt, president of the trade group Consumer Bankers Association, said the SBA’s announcement on application limits was too last-minute—bankers had already sent large batches of applications to the agency, not knowing that a new procedure was being planned. “We learned at the 11th hour that SBA had changed its process. They could have told us well ahead of time,” Hunt said. He said the agency’s computers weren’t able to accept even the reduced number of applications per hour that it had planned. The E-Tran system normally handles under 60,000 applications in a year and wasn’t built to handle the volume of applications it has been receiving this month.

The fresh round of funding was expected to go quickly because banks already had thousands of applications in hand and were accepting more as they waited for Congress to approve the additional money. If the new funds do get depleted, it’s feared that many companies will be shut out unless lawmakers are willing to approve a third round. The loans offer forgiveness for the money owners spend on workers’ pay. Millions of workers lost their jobs as companies such as restaurants, retailers, gyms and entertainment venues were forced to close to curb the spread of the virus. On Monday, bankers around the country were having trouble getting into the SBA’s system, said Paul Merski, a vice president at the Independent Community Bankers of America.

“Some have been trying all day since it opened,” Merski said. “It’s not different from what happened in the original launch.” President Donald Trump was asked about the computer issues during a White House news conference. “I heard there was a glitch. We’ll find out whether or not that’s so. Certainly it did work out very well for the original amount of money. This is the second amount,” Trump said. “We’re relying on the banks to go out and do an accurate job.” Carol Wilkerson, a spokesman for the SBA, said that the agency had created a mechanism that slowed the pace of applications from any one lender at a time. “If a lender goes above the pacing limit they will get timed out,” she said. AP

IN this April 2 file photo, “For Sale By Owner” and “Closed Due to Virus” signs are displayed in the window of a store in Grosse Pointe Woods, Michigan. The second round of loan applications for the government’s small business relief program has been slowed by computer issues at the Small Business Administration. Lenders complained on Monday, April 27, that they couldn’t get their applications into the SBA system known as E-Tran that processes and approves loans. AP

Show BusinessMirror

Wednesday, April 29, 2020

www.businessmirror.com.ph

Today’s Horoscope

blind spot bruce c.

By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Andre Agassi, 50; Uma Thurman, 50; Michelle Pfeiffer, 62; Jerry Seinfeld, 66. Happy Birthday: Assess and reassess before making a decision. Too much, too quick and too time-consuming should all be considerations when thinking about what you want to accomplish this year. You are best to concentrate on what’s reasonable and likely to bring a safe and beneficial return. Refuse to let someone take over or push you in a direction that is not suitable. Your lucky numbers are 9, 11, 20, 26, 34, 38, 46.

DIFFERENT RULES FOR DIFFERENT FOLKS

THESE times call for social distancing and authorities are going around and making sure that the new normal— including banning social gatherings and wearing masks—is being observed. But how does one explain this socialite celebrity who has been spotted many times at the supermarket for the rich with a group of friends? How do authorities explain how she and her friends can gather and still hold parties when some areas in Metro Manila are on total lockdown? Why is the imposition of social distancing selective? Is it because the socialite is close to the powers-that-be? Whenever she is spotted out, the socialite is accompanied by a driver, several bodyguards and her nanny? She is also always with a group of friends. How is this allowed? Isn’t there only one quarantine pass issued per household? Why are things different for the rich and for the poor?

ARIES (March 21-April 19): Be creative. Use your skills differently. Spend less time talking about what you want to do and more on finishing what you start. Make physical improvements. Time spent with someone you love will lead to new developments. HH

TAURUS (April 20-May 20): Make a positive change at home that will encourage you to have more time to relax or spend time with your lover, family or friends. Someone you help will give you something unexpected in return. An opportunity will not turn out as planned. HHHH

GEMINI (May 21-June 20): Someone will mislead you if you are gullible. A business trip, educational pursuit or get-together with peers will prompt you to make a change. Consider your motives before you take action. HHH

HELPING HAND

THE celebrity’s dad managed her career and finances for a long time, with the dad giving up his job years ago to do it. The celebrity is now married with her own family while her parents have their own business, which also came from her showbiz earnings. They don’t depend on her for their livelihood. But recent events have changed this. The business of the celebrity’s parents closed because of something that happened early this year, and they’ve been forced to ask her for help, not just for themselves but also their employees. The Covid-19 pandemic has aggravated the situation because now, the celebrity’s regular source of income has also dried up momentarily. She is finding it difficult to support her family and her parents at the same time. She has to and she feels bad not helping them because they have been always good to her and have never taken advantage, even when her career was at its peak. Right now, she supports them regularly because she knows they need her desperately.

A CUT FOR HER

ALSO hit by the Covid-19 pandemic is the wedding of this beautiful couple. It was supposed to be grand and beautiful. The couple and a relative had planned it for years. The relative was in charge of getting principal sponsors and some guests. She wanted the wedding to be the one to beat. The couple just wanted it to be grand. The relative had other plans. She wanted to have the highest officers of the land, and also the most influential and moneyed businessmen. Alas, the wedding was not meant to be because of the pandemic, and the couple was forced to cancel the wedding. The relative was supposed to get a cut from the cash gift of sponsors and guests she invited, so she was irate about the cancellation (the pandemic had yet not forced all of us into ECQ at the time). To appease the relative and keep the peace, the couple gave her a check for her efforts and got married quietly. But the relative still wants the grand wedding to go through someday, when things are better.

CONDITIONAL HELP

THE celebrity has many bashers. For some reason, a lot of people dislike her. But recently, she and her family went out of their way to hold a donation and distribution drive for the less fortunate, many of whom don’t have a source of income during this pandemic. But while her family really tried to be helpful, the celebrity seemed to be selective. She only wanted to help those who supported her family during the last elections and it showed. It got to a point where people simply didn’t even try to get their donations for fear that the celebrity would turn them away, which is so very wrong at a time like this. Apparently, the celebrity is still mad at many people for their nonsupport and she isn’t going to make them forget it. Perhaps she should remember it happened because she showed her true political colors.

ANDREW LLOYD WEBBER

A ‘Phantom of the Opera’ contest seeks singer with style

By Mark Kennedy The Associated Press

EW YORK—Andrew Lloyd Webber has launched a virtual competition that could lead to one fan singing on Broadway or the West End when musicals resume playing. The composer has invited singers to make up their own little vocal showcase at the end of the song “Think of Me” sung by the character Christine Daaé from The Phantom of the Opera. There’s a little 13-second pocket—called a cadenza—where freestyle vocal gymnastics are encouraged. The winning contestant will be introduced onstage by Lloyd Webber at either the home of The Phantom of the Opera on Broadway or London—whichever opens first—and sing after the performance. “I just thought, ‘Wouldn’t it be fun to find a cadenza that we could do when finally we reopen in 2047,’” he joked during an interview with The Associated Press. “Everybody is needing something to lift the spirits at the moment.” Lloyd Webber has tapped talk show host Graham Norton and singer Sierra Boggess, who played Christine in a number of productions of The Phantom of the Opera, to help him judge the entries, which have

come in over Twitter, Facebook and Instagram. He said he’s been impressed by all of them. “Some of them are very funny. Some of them are very good. And one or two of the girls who sent in things, I think we ought to actually see, because I think they could just possibly be Christines,” he said. “It’s delightful.” The Cadenza Challenge competition—with no end date yet on submissions—is just one way that Lloyd Webber has been interacting with fans and encouraging donations to those battling Covid-19. He’s been holding virtual listening parties, revealing details of his thoughts on some of his shows. He’s also been streaming free recordings of his shows every Friday on YouTube as part of his “The Shows Must Go On” series. The streams encourage viewer donations to support The Actors Fund and other international organizations. The one Friday is a 2012 production of Love Never Dies starring Ben Lewis and Anna O’Byrne. Last Friday’s screening of The Phantom of the Opera was watched by 12.6 million people. “I think it’s the least one could do. Musical theater has been incredibly good to me. And I always feel that one has to give something back,” Lloyd Webber said. n

CANCER (June 21-July 22): Lend a helping hand, and you will make a difference. The decisions you make will have an impact on the way people view you. Creative input and original ideas will help you advance. HHH

LEO (July 23-Aug. 22): Observe what others do, but don’t follow them. Take care of your interests and health. Channel your energy, and make no mistake when it’s time to make a decision. Being upfront about the way you feel will make a difference. HHH

VIRGO (Aug. 23-Sept. 22): Someone you deal with has ulterior motives. It’s OK to do for others, but don’t become a martyr. Set boundaries, ask questions and honor promises. A positive change will encourage new beginnings. HHHH

LIBRA (Sept. 23-Oct. 22): Watching documentaries about distant lands, taking online courses or being a part of something that matters is the right route for you. Express yourself through your actions, and minimize what isn’t necessary. Concentrate on what matters most to you, and you will make a difference. HH

SCORPIO (Oct. 23-Nov. 21): Refuse to let anger or frustration get to you. Separate yourself from the people who push your buttons. Look for opportunities, and stick to those who share your beliefs and concerns. HHHHH

SAGITTARIUS (Nov. 22-Dec. 21): Refuse to let your emotions take over when it comes to money, health and legal matters. Do what’s right, stick to the truth and prepare to move along quickly. Treat yourself to something special, or take on a physical challenge that exhilarates you. HHH

CAPRICORN (Dec. 22-Jan. 19): Put your plans in place. Do the work yourself, and reap the rewards. An emotional incident will bring you closer to someone you love. Don’t dismiss an unusual or unexpected opportunity. HHH

AQUARIUS (Jan. 20-Feb. 18): Sit tight; if you make an abrupt move, you will miss an important detail. Don’t argue with someone who is looking for a fight. Time is on your side, and concentrating on what you can accomplish will be in your best interest. HHH

PISCES (Feb. 19-March 20): Get together with old friends. Use your experience to help you make a better decision regarding money, health or a legal situation. What you do to help others will reflect your reputation. HHHHH Birthday Baby: You are optimistic, original and sensitive. You are intellectual and patient.

‘dress for success’ by enrique henestroza anguiano The Universal Crossword/Edited by David Steinberg

ACROSS 1 Drained of color 6 Smidgen 10 Bit of bourbon 13 Oil-producing rock 14 What a V-sign symbolizes 15 www.dartmouth.___ 16 Oasis trees 17 Knight’s protection 18 Drained of color 19 Shoes for seminarians? 22 Hard HS courses 23 Pierre’s pal 24 Adagio and allegro 27 Pants for pianists? 31 Place for two brides, perhaps 34 Took a load off 35 Person you look up to 36 Overtake 39 Musical repetition 41 James who wrote A Death in the Family 42 Job listing letters 44 Finishes ahead of 45 Hats for wildlife photographers?

9 Super Bowl spot seller 4 50 Dover’s state: Abbr. 51 Indian honorific 54 Perfectly qualified, or like the people in the starred clues? 59 Landers of advice 61 Eighth Grade star Fisher 62 Push 63 Cleaning cloth 64 Groups of gamers or families 65 Jabs playfully 66 Angie Tribeca channel 67 Word you may have tattooed opposite “love” 68 Wheat in some health foods DOWN 1 Pet welfare org. 2 Quick on the uptake 3 They’re over angels’ heads 4 Stately shade trees 5 Loch ___ Monster 6 Sidetracks, like plans 7 Malek who played Freddie Mercury 8 File folder or recycle bin 9 Floppy caps

0 Journalism, collectively 1 11 Filmmaker Lupino 12 Play on words 14 Italian cheese city 20 Little bit 21 Brings back on staff 25 German’s “Cheers!” 26 Spots in the ocean 27 Decorated, as a wall 28 Notable period 29 72, on many golf courses 30 Colorado tribe member 31 Carne ___ 32 Sledded supinely 33 Age indicators in a forest 37 Movie filming area 38 “...two if by ___” 40 Inexpensive beer, for short 43 Well-established 46 Valedictorian’s talk 47 Apt surname for a locksmith? 48 Loopy cursive letters 51 Add fuel to 52 Eat, drink and be merry 53 That is, in Latin

5 Ragu ___ Bolognese 5 56 Exam for a future D.A. 57 Mail carrier’s grp. 58 It uses 1.5 million gallons of maple syrup per year 59 Objects of appreciation? 60 Catch red-handed

Solution to yesterday’s puzzle:

Image BusinessMirror

www.businessmirror.com.ph

Wednesday, April 29, 2020

SAFE HAVEN AMID CRISIS

Sink or swim SUI GENERIS CARLO ATIENZA

biblisko@gmail.com

‘M

Y company is letting me go.” These are not the words my friends wanted to hear especially with the uncertainty of the economy in the wake of the ongoing global pandemic. One has been considered in “floating status” for some time, while the other one relocated his entire family to Manila and, to top it all off, he is the sole breadwinner. Some companies have started to put in mitigating measures to stave off costs and, sadly, their companies have decided the best way they can deal with the situation is to redundate people. It is unfair when you work so hard for a company and when push comes to shove, you are let go. Which just goes to show that you really need to take care of yourself and strike a work-life balance. Even if everything seems to be working well, any company can experience unexpected downturn in profits or clients resulting in downsizing or even the demise of the company itself. Nobody was expecting a pandemic to hit the globe on such a scale, but here it is—and it leaves a trail of despair everywhere. As early as last week, companies have started talking to people who will be redundated or let go altogether. When you have been performing well and force majeure happens, understand that this is not your fault. Even if companies plan well and have redundant systems in place to mitigate financial losses, some things are just beyond the foresight of even the best leaders and managers. So stop thinking you could have done something when it has already happened. The best thing for you to do is to not take anything personally. Be a professional and refrain from badmouthing the company or saying anything which might put them in a bad light. Always keep yourself

respectable and dignified when you are told you are being let go. A good rule of thumb is—if you have nothing good to say, keep it to yourself. But take the time to also process what happened and talk to a trusted friend about how you feel about it, including your fears and concerns. It is not healthy bottling up negative feelings so you need to let it out in a safe environment where you can feel secure that it will not go back to haunt you later on. It would be best if you can find a safe person you can talk to and, at the same time, provide you with guidance on planning what to do after being laid off. Start looking at it as an opportunity to pursue something you would really like to do, or a stepping stone to another chapter in your professional development. Whatever the reason, it has happened and there is nothing you can do about it. As much as possible, get it in writing that you were redundated and you were not terminated because of any performance issues. This will help a lot in making prospective employers understand the urgency of your situation and your availability to start anytime. If you cannot get it in writing, ask your manager or human resource what they will tell prospective employers about your employment. This will give you a general idea of what to say when you are asked during the interview. Again, never say anything bad about your previous employer but, rather, focus on what the company has provided to contribute to your personal and professional growth. Be ready to cite projects you handled, problems you encountered, and how you were able to overcome them. The interview is about you anyway, and not your previous employer. Before accepting that pink slip or signing anything, do not be afraid to ask for the computation of your final pay. There might be legal requirements and other benefits which have accrued in your favor while being with the company. Review your total benefits and ask for a computation of what you will receive when you are redundated. This will also help you plan your finances properly while looking for new work. Do not forget to ask when you are going to receive your final pay. Have all of these in writing as much as possible so you can follow up with the right people when the need arises. Before you go looking for a new employer, ask if

you are being let go because of restructuring within the company. Ask from your manager or recruitment officer if they can place you somewhere else in the organization where your current skills can be used. For all you know, there might be an available position within the organization you are qualified for. This is also the reason why it is important to develop different skills and learn new ways of working so you can continue being relevant to other business units within the same organization. But if there are no internal positions suited for you, then it is time for you to update your resume and activate your network. Review and edit your resume before you start looking for work. You need to note successful projects you have handled and the challenges you encountered so you can highlight your strengths and, at the same time, showcase how you are overcoming your weaknesses. Talk in terms of how your previous employer gave you opportunities in developing your character and advancing your career. Rehearse also what you are going to say about being redundated so you do not have to think of any lingering negative feelings you might have. And you also might like to update your professional network that you are open to job opportunities. Depending on your network, you might get numerous proposals from friends or previous coworkers who feel the need to help by offering work which you are not qualified for or something you do not like. To avoid this, come up with a checklist of your requirements for the new work and divide it to must-haves and negotiables. This will help you get a better idea of what you want to do next but at the same time filter the ones which will help your professional development. If there is one thing this pandemic has taught us, it is that there are many uncontrollable things in life. And there are those who find themselves suddenly having to keep themselves afloat. For things we cannot control, we let go. But for those we can control, we tread water, and fight and push on especially if we know we will come out better in the end. It is just a matter of setting our minds on the possible good that will come out from all of this until we find a better ship to take us where we need to be. ■

TAGAYTAY Highlands, (www.tagaytayhighlands.com) remains a safe haven with its relaxed and tranquil setting as quarantine protocols are in place to ensure health and safety in this exclusive mountain resort. Set amid wide open spaces, calming views, and top-notch facilities which have been touted as main attractions, the residential complex lends renewed comfort to its residents during these challenging times. It has quickly adapted to the current situation, implementing stringent health and safety measures for their benefit. Following the Department of Health’s (DOH) guidelines, Tagaytay Highlands created its own Covid-19 task force for the duration of the Luzon-wide enhanced community quarantine, which has been extended until May 15. A skeletal force also continues to operate under the guidelines to service its residents. Led by Tagaytay Highlands’ company physician, the task force closely monitors the situation inside and outside the complex, provides updates, and participates in collective efforts to maintain cleanliness and safety in the property. In line with this, all club frontliners are mandated to wear face masks for protection. And alcohol and hand sanitizers are available in key areas of the property. Meanwhile, Tagaytay Highlands’ medical clinic is accessible 24/7 with doctors and trained nurses, ambulance service, and an isolation facility. Other protective measures are likewise being observed in the premises. For instance, all individuals undergo thermal scanning upon entering the property. Temperatures are again checked at all main entrances in Tagaytay Highlands. In all of these, DOH protocols are being strictly followed. Residents and personnel under work-from-home arrangements are also urged to follow health and safety precautionary measures in their respective places. Access to emergency hotlines for estate and residential communities, and other club concerns, are made available for easy reference. All public areas of Tagaytay Highlands, including entrances/exits and frequently touched surfaces, are routinely disinfected and equipped with foot baths. For food services, Tagaytay Highlands’ popular dining places accept take-out and delivery orders. Its resident convenience store 7-Eleven is also open. These establishments’ operating hours are regulated in compliance with ECQ rules. Safety guidelines, including mandatory temperature checks and social distancing, are also implemented at residential amenities. Within the estate, homeowners’ mobility is limited to accessing basic services and loitering is highly discouraged. Finally, all construction works in the property have been suspended until further notice.

DELLA VALLE FAMILY DONATES 5 MILLION EUROS FOR COVID-19 RELIEF

THE Della Valle Family that is behind luxury brand Tod’s and Hogan, and also on behalf of their employees, has allocated the sum of €5 million to support the family members of health personnel who lost their lives in the fight against Covid-19. Their selflessness and courage will forever be an example to all of us. The administration of the fund will be entrusted to Italy’s Protezione Civile, which the company thanks for the immense work it does every day in the fight against the virus. The fund will be called “Sempre con Voi” and, for anyone wishing to contribute, can be accessed via an account opened by the Protezione Civile: IBAN IT66 J030 6905 0201 0000 0066 432. In the Philippines, Tod’s is exclusively distributed by Stores Specialists Inc. (www.ssilife.com.ph).

Lead with empathy during the Covid-19 crisis BY LESLIE HAMME� Oregon Health & Science University IN these uncertain and highly stressful times, there is heightened reliance on managers and supervisors to maintain the well-being, health and safety of their work force. In this Covid-19 crisis, leaders are performing their typical roles under the additional stress of work force instability and escalated safety and health risks, while also managing their own mounting work-life challenges and staying informed about rapidly changing policies. And, with an increased prevalence of mental health issues experienced by workers on the frontlines of the coronavirus pandemic, supervisors and managers have been called upon to recognize when their employees may need additional psychological help as well. It feels like a lot because it is. Employers will not be able to lead effectively if they are also struggling. On an airplane, passengers are told to put on their oxygen masks before helping others with theirs. The same is true here. As scholars of health, with more than 30 years specializing in supervisor support behaviors, we created an online training on supervisor support strategies to help staff during a pandemic. We believe that, in order to model self-care and support staff, leaders have to continue taking care of their own needs.

LEADERSHIP IN A PANDEMIC EXTREME stress can affect the way we act. Typically coolheaded employees may suddenly seem frazzled. Teams formerly consistent in meeting deadlines and turning in highquality work may become less predictable. This is not a time for the “tough love” approach to management to get a team functioning well again. Our research into supervisor support for Total Worker Health has revealed that, for most employees, social support and understanding are key ingredients to helping alleviate stress and adjust work-life expectations. It is important for supervisors and managers to model self-care while supporting and responding to their employees’ mental health needs during the Covid-19 pandemic. This can be done using two evidence-based methods of effective leadership: emotional support and role modeling. SUPPORT EMOTIONAL HEALTH EMOTIONAL support involves letting employees know that they are being cared for and that they should feel comfortable discussing work- and nonwork-related challenges. A boss should convey that they are sensitive to the impacts the Covid-19 pandemic has on employees’ lives and work. Emotional support techniques include:

■ Providing comfort and monitoring for signs of struggle, such as distress, social withdrawal and poor performance, and knowing when to refer an employee to professionals. ■ Recognizing that some employees may have families and loved ones who are requiring additional attention, so openly asking employees how they are managing both work and nonwork. ■ For those without others in the house during physical distancing ordinances, offering check-ins and encouraging them to virtually connect with colleagues, friends and family. ■ Reinforcing to your employees that you are sympathetic and that you'll maintain an open-door policy—virtually—for them to talk through issues when needed. MODEL HEALTHY WORK HABITS ROLE modeling requires supervisors to display, through their own behaviors and guidance, how to integrate work-life obligations and engage in self-care during a crisis. Simply put, leaders should be setting an example for their teams. Effective role modeling behaviors include: ■ Making sure you stay up-to-date on safety and public health Covid-19 responses relevant to your team. ■ Knowing about the most up-to-date wellness resources available to you and your workers. Remind people of these resources regularly in meetings and consider posting

information about wellness resources in your virtual workspaces, employee web sites and other shared spaces. ■ Defining your own boundaries and preferences regarding work hours, response times and disclosure around family obligations. Then, projecting consistency in your ability to adhere to these boundaries. ■ Using paid time off and sick leave when needed, and encouraging your staff to do the same, or helping your staff to find state and national level resources to assist with leave. PROMOTE WORK-LIFE BALANCE ADDITIONAL ways supervisors can support employees’ work-life balance and reduce undue burden include identifying projects with flexible deadlines, helping prioritize the most important tasks, removing irrelevant tasks and discouraging newly remote employees from feeling like they need to be “on the clock” constantly. Research shows that employees with home-based caretaking responsibilities (e.g., children, aging parents) also perform better and maintain higher levels of well-being when work-family issues are factored into policies and protocols. When communicating with staff during this time, it is critically important to lead with empathy, strive for flexibility and model ways to prioritize health and well-being. THE CONVERSATION

B6 Wednesday, April 29, 2020

Globe employees raise P27.5M for COVID-19 assistance; includes PPEs, face shields for 50 hospitals

Staying productive: Robert Walters shares tips on effective remote work scheme

PPEs ready for delivery

LOBE Telecom employees have raised over P27.5 million from a fundraising initiative primarily aimed at providing much-need personal protective equipment, face shields, and face masks to healthcare workers in 50 hospitals across the country. The #OneGlobeVsCOVID project of the company’s over 8,000 workforce realized a total employee donations of P13.79 million which was 100% matched by Singtel and Globe. Singtel is one of the shareholders of Globe. “We are extremely proud of our employees for their generosity. Our efforts as OneGlobe have seen support for our fellow Filipinos coming together not only from our employees and shareholders but even our customers as well," said Ernest Cu, Globe President and CEO. The list of intended beneficiaries of face shields, face masks, and/or PPEs include: Sta. Ana Hospital, Veterans Hospital, National Kidney Transplant Institute, Dr. Jose Fabella Memorial Hospital, Manila Naval Hospital, General Trias Doctors, UHBI- Parañaque Doctors' Hospital, Perpetual Succor Hospital, UST Medical Center, San Juan De Dios, Philippine Children's Medical Center, Manila East Medical Center, Las Pinas General Hospital and Satellite Trauma Center, National Center for Mental Health, San Lorenzo

Ruiz General Hospital, Amang Rodriguez Hospital, Rizal Medical Center, National Children's Hospital, Ortigas Hospital and Health Center, St. Lukes BGC, Quirino Memorial Medical Center, Tondo Medical Center, Philippine Orthopedic Hospital, and San Juan Medical Center. Others are: Ospital Ng Makati, Ospital ng Maynila, Ospital ng Tondo, Pasig City General Hospital, Rosario Maclang Bautista General Hospital, Caloocan City Medical Center, Valenzuela Medical Center, Notre Dame Hospital Baguio, St. Pascal De Baylon, Bicol Regional Training & Teaching Hospital, Vicente Sotto Memorial Medical Center, Southern Philippines Medical Center, Roxas Memorial Hospital, Manila Doctors Hospital, The Medical City, UERM Memorial Hospital Cardinal Santos, Ace Medical Center Pateros, Marikina Valley Medical Center, Perpetual Help Medical Center- Binan, South City Hospital and Medical Center, Bataan General Hospital Catarman Doctors, Cagayan Valley Medical Center, Dr. Ricardo Y Ladrido Memorial District Hospital, Lambunao Iloilo, and Zamboanga Medical Center. “Maraming maraming salamat po sa Globe Telecom. Kasama po namin kayo sa mabigat na laban na ito. Sabi po nila ang COVID-19 Virus ay INVISIBLE, pero po pag tayong lahat ay sama sama at tulong tulong,

INVINCIBLE po tayo. Muli maraming salamat po sa suporta. Mabuhay po kayo,” said Dr. Fernando Santos, Caloocan City Medical Center. On the other hand, in her letter to Globe, Joy C. Luna, Head, Central Supplies Department and Member, Board of Directors of Manila East Medical Center said that the hospital “has been lucky to be chosen as one of your beneficiaries of your generous donations. Today, you blessed our frontliners again with your generosity and thoughtfulness. Your donation of 100 pcs. PPEs and 100 pcs face shields will be of great value in helping us protect our frontliners and health workers. God bless your hearts for these! On behalf of the Management of Manila East Medical Center, please accept our heartfelt gratitude to your company. May God reward you more for your generosity.” Aside from the PPE donation to hospitals, part of the employee donations went into the AC Health project involving the construction of a COVID-19 facility for Ayala Group of Companies employees in Nuvali EvoLiving. At least P5 million was also donated to Project Pananagutan, a program led by Ayala Foundation, Inc. to provide assistance to no work, no pay talents of partner companies as well as frontliners and partner communities.

COVID hospitals get decontamination services

ITH social distancing the catchphrase of the times, public and private companies locally and overseas are implementing work from home. In the Philippines, where the government has put the entire island of Luzon under enhanced community quarantine to curb the spread of the COVID-19 virus, government work is largely suspended while most private establishments enforce remote work. Robert Walters, a global recruitment specialist group headquartered in England and with regional offices in Southeast Asia, shares tips on how businesses and organizations can ensure efficiency and productivity even while working from home. Be clear on the work arrangement. Guidelines on how to execute a new work setup are vital, especially for employees who will be working from home for the first time. A clear plan can mean the difference between disrupted work and continuous operation. Robert Walters urges managers to execute a contingency plan for remote work or customize an approach that works best for their teams, and to announce such plan as soon as possible during an emergency to avoid confusion as to how work should be conducted. This plan should include how reporting will be done, how meetings with clients may be conducted and what other changes will be implemented during the temporary work arrangement. Some employees experiencing a disruption in their regular office schedule – stuck at home alone with no more water cooler chats and lunchtime banter with colleagues – might feel alienated by the lack of structure in a new schedule. Managers are expected to rise to the occasion and guide their employees in establishing a new daily setup and parameters for ensuring deliverables are met. Preset weekly KPIs, regular calls or even video conferences will be of great help in keeping everyone updated and sustaining the team spirit, especially for highly collaborative jobs. These also foster a sense of normalcy. Ensure productivity. Let’s face it: Out of sight, out of mind can be the case with many team members on remote work setup. Some staff could be carried away by being at home and neglect their tasks, thinking no one will be checking anyway. Managers and business heads must be ready to address this. One way is through an output-based system that can be monitored online. Managers can do daily morning reviews for each team member either through a conference call or online

Flying safe: AirAsia's on-ground, in-flight measures follow govt rules

OVID-19 hospitals and their health workers have received a fresh dose of help in the form of decontamination services and packages of hygiene and food items from telecoms and digital services provider PLDT Inc. and the Makati Medical Center Foundation. PLDT sponsored the provision of high-level decontamination services using Steramist Asia’s Binary Ionization Technology (BIT) for The Research Institute for Tropical Medicine in Muntinlupa City and the National Kidney and Transplant Institute in Quezon City. BIT is a powerful disinfectant that has been certified by the Environment Protection Agency (EPA) as being effective in eliminating the novel coronavirus. This

is applied in parts of the hospitals in need of specialized sanitation such the laboratories, COVID wards, ambulances and even the reprocessing of N95 masks and personal protective equipment (PPEs). Working with the Makati Medical Center Foundation, PLDT also turned over care packages containing hygiene and food items to the personnel of these hospitals including their sanitation team, maintenance staff and security officers. The rest of the care packages will be distributed to the frontline staff of quarantine facilities of the National Task Force. The company also donated 210 blankets to Paco Catholic School which serves as a temporary shelter for over 200 people.

This includes street dwellers and stayin volunteers and staff. PLDT also gave financial assistance to the school to procure some immediate needs such as medicines and food supplies. Moreover, PLDT is supporting the Kaagapay: Protect our Healthcare Heroes proje ct. This is a fundraising initiative that provides life-saving medical equipment which includes PPEs, test kits and ventilators for the healthcare sector. This is spearheaded by the Philippine Disaster Resilience Foundation, Zuellig Pharma, ABS-CBN, Metro Drug and Go Negosyo. To know more about the efforts of the PLDT Group in beating the COVID-19 pandemic, please visit https://beta.pldt. com/covid19/.

group chat, clarifying deliverables to lessen the instances of delay and to have end-of-day catch-ups to check what they’ve accomplished. Make the most of free apps online for employee supervising and progress monitoring. “Evaluating where the gaps are and focusing on results are very important. The team may be unable to meet present weekly KPIs as before given the stressful situation and change in most business operations, so it’s best to do a weekly analysis of activities that yield weak results and shift to a different approach that works for employees in this unique situation,” shared Andrea Dela Casa, associate director for Technology & Transformation/Sales & Marketing at Robert Walters. “It’s about having a mindset around agility and flexibility toward productivity more than just being operational. Leaders must know the pulse of the team and manage frustrations early. We should remember that this crisis is temporary, and we as leaders should create ways for the team to keep delivering results.” Be tech-ready . Lack of proper office equipment and an unstable internet connection are two challenges some employees could face if tasked to work from home. These can be exacerbated by the lack of access to company data essential to operations. Managers and team leads can make an audit of the technical requirements of their respective teams on a regular basis. This helps prepare them for any emergency as they know what their team members have, do not have and will need in case they have to work remotely. “Preparedness for sudden changes in the work setup is what sets good managers apart from the rest. Business continuity strategies and contingency plans laid out even without a pandemic determines the future of a business,” said Dela Casa. Keep open communication. In this digital age, keeping communication lines open has become a lot easier. Regular communication between managers and employees about work, each other’s well-being and other issues outside of work increases productivity and reduces professional isolation. It also strengthens team spirit, which can be even more difficult to build and sustain when people work apart. Managers can utilize any of the suite of messaging and videoconferencing applications to constantly keep in touch with their teams. Ensuring that calls are a forum where employees can consult and share concerns with managers makes the communication even more successful, something Robert Walters does as consultant workforce is often very mobile and working from locations such as their clients’ office, cafes where they meet their clients or candidates and of course, home. For HR managers, a handy list of all the contact information of the whole company would be very useful. Effective and early employer intervention in the face of a pandemic could save lives and help companies and organizations earn the trust and loyalty of their employees at the same time. Dela Casa says: “Managers should know the pulse of the team and manage possible hurdles early on and manage them more efficiently. When planned and executed properly, teleworking could change the way we view and experience work while supporting company goals.”

IRASIA is working closely with regulators, local governments, civil aviation and health authorities, including the World Health Organisation (WHO) and the International Civil Aviation Organisation (ICAO) and adhering to their expert advice. But first and foremost, it is the traveler's responsibility to ensure that he or she is eligibl e to travel, be it international or domestic before booking a flight. Refer here to check on travel restrictions and special requirements. - All AirAsia guests will be required to bring their own mask and wear it properly before, during and after the flight, including during check-in and bag collection. Guests without a mask will be denied boarding. - Carry-on cabin baggage - to facilitate social distancing especially during embarkation and disembarkation, we will only allow ONE piece of cabin baggage not exceeding 5 kg for each guest. This will help minimise unwanted contact between you and another guest’s baggage and vice versa. More details are available here. Please arrive early at the airport - preferably 3 hours before departure - to allow for enough time for all the necessary processes to take place.To ensure that the highest standards of safety and hygiene are maintained at all times, here are some of the measures AirAsia is taking on the ground and in the air:Aircraft cleaning: -Aircraft will undergo disinfection including a deep clean performed using cleaning agents in accordance with Airbus Aircraft maintenance Manual (AMM) by professional cleaning teams -Every night stop, aircraft goes under a thorough 2-hour cleaning procedure, in compliance with instructions from health authorities -Pre-flight: Temperature screening will take place at different checkpoints, including boarding gates -Cabin crew will go through temperature checks after every shift - Social distancing will be observed with floor markers at queuing areas, including check-in counters & kiosks - Alternate check-in counters will be opened to keep social distancing - Hand sanitizers will be available through journey processing point for guests and staff - Cabin will be disinfected via aerosol spraying before

departure of all domestic and international flights - Pre-flight briefings on safety and hygiene will be conducted for all boarding cabin crew to ensure we are consistently following the most up-to-date advice - Contactless web and mobile check-in to reduce surface and physical contact in check-in and boarding processesIn-flight: - All AirAsia aircraft are fitted with HEPA filters normally used in hospitals, which filter out particles and airborne contaminants such as viruses and bacteria - All cabin crew will be in protective equipment including masks and gloves - We will observe seat distancing, when flight occupancy allows, for guests to move within respective zones, under cabin crew’s guidance - Food Safety - All meals are produced and packaged hygienically following strict food safety requirements - All production staff will regularly be monitored on COVID-19 guidelines - Cabin crew handling menu items will wear disposable gloves - Cabin crew are well trained to assist with any medical situation inflight including identification and isolation of anyone onboard who may feel unwell - Temperature checks will occur before arrival to destinations where temperature screening is mandatoryArrival: - Health declaration forms will be handed out to be filled out before or on arrival - Thermal screening will take place upon arrival - Transit passengers will be asked to stay at the airport - Mandatory quarantine may take place as per regulations at your destination country. How can you do your part? We ask that you observe the universally recommended protective precautionary measures, including practising high personal hygiene. Please be reminded, once again, that you are required to bring your own mask and wear it properly before, during and after the flight, including during check-in and bag collection; failing which, you will not be accepted on the flight. Read also: Keeping Flying Safe in ‘New Normal’ Environment - A Q&A with Captain Ling Liong Tien

BusinessMirror

Editor: Tet Andolong

Wednesday, April 29, 2020 B7

BRIA Homes responds to the new normal By Rizal Raoul S. Reyes

@brownindio

S the Philippines struggles to contain the spread of the Covid-19 pandemic, majority of Filipinos are quite feeling restless, stressed and apprehensive about their well-being—the state of their health, livelihood, security, and finances, among other critical matters. In response, Bria Homes, one of the leading housing developers in the Philippines, has introduces measures to help ease their homeowners’ anxiety about the many mundane things going on in their lives. For one, Bria assured its residents that it is maintaining an aggressive presence online throughout the monthlong “enhanced community quarantine,” answering online inquiries 24/7, nationwide. More o ve r, Br i a w i l l a l s o continue implementing its digital campaigns and promotions.Bria will also carry on with its digital campaigns and promotions at this time, including product presentations that w ill keep a spi r i n— ga nd its c u r rent— homeowners informed about the upcoming Bria projects.

The company said this is in sync with its goal of providing comfortable and affordable homes to all Filipinos. To further support its residents during this health crisis, Bria Homes is urging them to use online channels for remittance of their monthly amortization. Online/OTC banking options (under bills payment) include UnionBank, Metrobank, BDO, Security Bank, RCBC, PNB and AllBank. They can also use GCash (under ePrime biller), an e-wallet that can be accessed via mobile phone. On the community front, Bria is doing its utmost best to keep their properties in all regions clean and routinely disinfected to protect residents and homeowners from exposure to the virus. Bria also provides its hom-

eowners a healthy environment. Residents may savor fresh and clean air while observing social distancing in its eco-friendly green spaces. They are, likewise, constantly encouraged to do frequent handwashing, using alcohol-based hand rubs, and boost their resistance to disease through a healthy diet.

Finally, following stringent quarantine protocol, Bria communities have guarded entrances and exits, with 24/7 CCTV coverage, ensuring that only Bria residents are allowed into their premises. Bria Homes is a subsidiary of Golden Bria Holdings Inc., considered the third-largest

real-estate company in terms of market capitalization valued at more than P250 billion. One of the leading housing developers in the Philippines, Bria Homes is primed to bring quality and affordable house-and-lot packages and condominium units closer to ordinary Filipino families.

Disiplina Village tenants given 120-day rental reprieve

By Roderick L. Abad

OOD news for the residents of Disiplina Village Bignay and Disiplina Village Ugong in Valenzuela as the local government granted them a four-month grace period to settle their rental bills via a city ordinance. The moratorium aims to ease the financial burden of tenants who are reeling from the effects of the Luzon-wide enhanced community quarantine. For the second time, the lockdown has been extended anew by President Duterte to May 15. Ordinance 691, Series of 2020, otherwise known as the “Rental Payment Moratorium Ordinance for Disiplina Village Residents,” gives the residents of the two Disiplina Villages a temporary reprieve of 120 days from their monthly rental dues covering the period of March 17 to July 15 of this year. The lease fee accumulated during the 120-day moratorium period shall then be divided into equal installments to be paid in four months following the rent freeze period. The amortized amount will be added to rental fee due in the next months with no interest, surcharge, or penalty. The city government reiterated that the tenants will still have to pay their water, electricity, Internet, and other utility bills during the moratorium period. The ordinance, likewise, extends authority to Mayor Rexlon Gatchalian to prolong the moratorium period given that the national government decided to extend further the ECQ. This is reflective of the local government’s commitment to uphold the current living condition of the tenants and provide them with decent housing amid the challenges brought about by the coronavirus disease 2019 (Covid-19) pandemic. Disiplina Village is the flagship in-city resettlement site and public rental housing project for the informal settler families (ISFs) of Valenzuela City. Both communities now house 4,594 ISFs in 143 buildings. Built like mini cities, they have city hall annexes or Sentro ng Sama-Samang Serbisyo (3S Centers), day-care centers and schools, health stations and activity centers.

The resilience of the real-estate LG launches new line of commercial industry in the face of a pandemic air-conditioners designed to combat air pollution Home

‘I

T should be business as usual for [property] investors,” said Prof. Enrique Soriano III, Wong + Bernstein Advisory Group’s executive director, in a recent interview on the effects of the Covid-19 pandemic and corresponding enhanced community quarantine (ECQ) protocol to the real-estate industry. For those interested in investing in property, “managing the risk as a result of the current uncertainty is the only hurdle for property players to overcome.” Even after local economists (like those from the UnionBank of the Philippines) and global firms (such as JP Morgan Chase and JLL Global) lowered their local GDP forecasts because of fluctuating real-estate investment, Soriano is one of the people who would still “bet their last centavo on real estate.” The local real-estate market is overall seen to be quite resilient, with the large unmet demand for housing a large contributing factor. It is seen to continue being a local, long-term play with attractive relative returns compared to other asset classes. “Behaviorally, in any downturn, the real-estate market will naturally correct itself. In due time, it will start picking up again,” Soriano added. “The upside is clear: it is a very resilient sector struggling to cover more than 6 million housing units; all these housing requirements are based on real demand.”

services company Santos Knight Frank (SKF) identified key trends that would help shape the industry as a whole throughout the year. These include office-sector-driven growth, mainly from the BPO sector as it expands within and outside the metropolis. Real-estate companies like AboitizLand continue to prepare for this expected upswing with its continuous planning of integrated townships, such as LIMA Estate in Lipa, Batangas, where it plans to develop commercial buildings and sell commercial lots in its upcoming business district. The industrial and logistics sectors are also seen to expand outside Manila with the increasing demand for warehouses and distribution centers, especially as e-commerce booms. The hot spots for expansion are seen to be Calabarzon, Cebu and in the Nlex-SCTEx-TPLEx corridors in North Luzon. AboitizLand, one of the premier property developers in the country, remains prepared for this inevitable expansion amid the pandemic with industrial hubs like LIMA Technology Center in Batangas, and MEZII and West Cebu Industrial Park (WCIP) both located in Cebu. Plans are under way for LIMA and WCIP expansions to create additional inventory to take advantage of this demand.

Commercial and office real estate mainly resilient

Opportunities are also present for the homeowners looking to invest in, live in and rent out properties. With buyers wary of current stock values, relatively stable realestate investments are becoming more attractive. According to SKF, real-estate investment trusts or REITs, which

According to a Cushman & Wakefield report dated February 2020, commercial real estate would be the most resilient, owing to the longterm nature of properties that will allow losses to be regained sooner than later. In addition, real-estate

What about the homebuyers and other investors?

may help democratize the Philippine property market by allowing smaller investors to participate in high-value real-estate assets, are seen to pick up this year. Environmentally conscious developments will also become more attractive to people who look toward low-density areas that offer houseand-lot type properties with green, open spaces. Best-of-both-worlds developments that are located away from but accessible to dense Metro Manila cities are eyed as the best in this area. AboitizLand developments such as Seafront Residences, The Villages at Lipa in Batangas, and Ajoya, a mid-market horizontal development in progressive areas in Central Luzon, are examples of these developments. And for those wishing to stay in the bustling city, Metro Manila remains to be a prime residential market especially with the rising popularity of co-living spaces. Micro-studios such as Point Blue Microstudios built in partnership with AboitizLand, will increasingly become the accommodation of choice for employees and young professionals who work in CBDs but require the cozy privacy of a studio.

Real estate bounce back

Once things go relatively back to normal, consultancy Colliers International Philippines noted that high demand and low interest rates will benefit the residential market greatly. The general consensus from various other sources? Buy property now versus when economic recovery from Covid-19 begins. People with cash on hand, especially, could benefit from being able to negotiate for better, discounted prices on select properties.

s technology, innovation, and industry continue to grow at a steady pace, companies have set their focus on proactively combatting environmental issues and climate change, both for their customers, as well as their corporate social responsibility. One of the biggest, perhaps most dangerous issue is air pollution. In fact, the European Heart Journal announced 8.8 million annual premature deaths from air pollution. This number is more than 6 million deaths caused by smoking each year. In May 2018, WHO reported that 9 out of 10 people breathe air containing high levels of pollutants while in January 2019, Unicef announced that over 130,000 children die every year because of air pollution. In particular, Asean member-states, such as Vietnam and Indonesia are suffering from fine dust. According to the “World Air Quality 2018 Report” published by AirVisual, an air quality monitoring web site, Indonesia ranked 10th and Hanoi ranked

12th in the overall global ranking for air pollution in Asean. On the local front, the volcanic particles from Taal Volcano’s recent phreatic explosion have greatly impacted the air quality in Luzon for the worse. Recognizing the immediate need for clean air, especially in institutions where there’s always large groups of people for long periods of time, LG launches their new air purifying cassettes that have exercised the company’s technological capabilities and enable to filter out the smallest particles among the conventional products in the market. LG’s new air purifying cassettes will be good news not only for hospitals, schools, kindergartens, and nursing facilities for air purification but also for building owners of retail shops and restaurants. LG offers more choices to building owners and consultants with the new 1 Way and 4 Way cassette options, which gives them the versatility to pick based on design or budget considerations.

Both of the new LG cassettes feature the 4-step air purification process: prefilter, dust electrification, ultrafine dust filter, and deodorization filter. In the first step, the multilayer structure of pre-filter removes the particle, which has 2.5x higher efficiency than general pre-filters. Next up, dust electrification increases the electrostatic force of particles, improving the filter’s collecting efficiency. Third is eliminating even the slightest dust level of PM1.0 ultrafine particles with the ultrafine dust filter. Last, deodorization filter removes odor and harmful gases with high-efficiency gas absorption technology. To find out more about the new 4 Way cassette, please visit LG’s Global Air Solutions microsite. Reni Salvador

Sports BusinessMirror

B8 Wednesday, April 29, 2020

mirror_sports@yahoo.com.ph / Editor: Jun Lomibao

NADAL: I DON’T SEE TENNIS BACK SOON M

RAFAEL NADAL is also worried that the risk of new injuries will increase when players return to action.

ADRID—Rafael Nadal says it will be “very difficult” for tennis to return to action any time soon and is concerned about the risk of injuries when the sport resumes. Nadal spoke in a joint interview with National Basketball Association (NBA) player Pau Gasol that was published by Spanish newspapers on Monday. “I don’t think training would be a problem, but competing...I see it very difficult,” Nadal said. “It’s a moment to be responsible and coherent, so I don’t see how we can travel every week to a

different country. “I would be OK playing without fans, even though that’s not what we want, but unfortunately, from what I’m seeing, even though things are improving, for our sport I don’t see it prudent to be competing again any time soon.” Nadal pointed out that even though there is a smaller risk of contagion in tennis compared to team sports, there are many people involved in the organization of tennis tournaments, from hotels to other sectors of society. “As far as competing, maybe our sport is the most complicated one, having to move a lot of people week after week,” he said. Nadal, who has had to deal with a series of injuries throughout his career, is also worried that the risk of new injuries will increase when players return to action. “When I hit a ball again, my arm is going to hurt in several places...my wrist, my elbow,” the 19-time Grand Slam champion said. “When you are out of action, the risk of an injury is a lot greater than when you are exercising, even if just a bit. “If I could have a tennis-related training for half an hour every day, If I could at least exercise the specific muscles that are needed in tennis, I think that would help get the rust off my body when we get back to action.” Gasol also spoke about his concerns in the interview

with newspapers that was conducted through a Zoom session and also included other Spanish athletes such as golfer Sergio Garcia, motorcycle rider Marc Márquez, F1 driver Carlos Sainz, cyclist Alejandro Valverde and soccer Coach Julen Lopetegui. The interview was promoted to help Nadal’s and Gasol’s campaign to encourage donations to the Red Cross and help during the health crisis prompted by the coronavirus pandemic. The interview was published by the Spanish sports newspapers Marca, As, Mundo Deportivo and Sport. Gasol, who has been out of action for more than a year because of a foot injury, also expects a tough time on his body when the NBA returns to action. “The idea was for me to prepare myself for the Tokyo Games, but that has changed and there is a lot of uncertainty now,” he said. “When I get back to a basketball court, it’s not only my foot that is going to hurt, it’s also my hip, back, shoulder, knee...everything.” Gasol said the NBA wants a training period of at least three to four weeks for players before the league can restart. Nadal also spoke about how he has been paying special attention to his tennis academy in Mallorca, where there are about 150 people confined, including 85 kids. Spain has been in a lockdown since March 14 and the confinement is expected to continue at least until May 9. AP

Adidas earnings slammed by virus

RANKFURT, Germany—Sports apparel and shoe company Adidas saw its earnings fall sharply in the first quarter as the virus outbreak closed 70 percent of its global store base. Net profit from continuing operations fell 97 percent to only €20 million from €631 million in the same period a year ago. The company, based in Herzogenaurach, Germany, said Monday that first quarter revenues fell 19 percent in currency neutral terms. E-commerce did pick up as the outbreak shutdowns spread in March, rising 55 percent in March and was continuing to climb. “Our results for the first quarter speak to the serious challenges that the global outbreak of the coronavirus poses even for healthy companies,” adidas CEO Kasper Rorsted said. Revenue development reflected the phasing of the global outbreak, with a sales decline of 58 percent in China, where the outbreak started, followed by downturns elsewhere. The company said it had incurred costs in the three-digit millions

over product take backs to manage inventory. It said its revenues were recovering in China during the first three weeks of April after the quarter ended, and global e-commerce revenues were showing another significant acceleration. However, store closures in Europe, North America, Latin America, emerging markets, Asia-Pacific and Russia and the former Soviet Union mean that revenue development remained “severely impacted.” The company said the situation regarding the outbreak was so uncertain that it could not provide an outlook for earnings for the full year. CEO Rorsted said in a statement that “despite the current situation, I am confident about the attractive long-term prospects this industry provides for Adidas. Consumers are developing an increased appreciation of well-being. They want to stay fit and healthy through sports.” He said that the company’s focus on accelerating its own retail and e-commerce businesses “will serve us even better in the future. We are well positioned as a global company with strong brands.” AP

STORE closures in Europe, North America, Latin America, emerging markets, Asia-Pacific and Russia and the former Soviet Union mean that revenue development remains “severely impacted.”

Czech soccer set P to restart in May

THE top 2 leagues in the Czech Republic are set to restart on May 25 as the country has been easing its restrictive measures to contain the coronavirus pandemic. AP

Sports withdrawal SPORTS WITHOUT BORDERS Vincent Juico | @VJuico Instagram vpjp_j, vince.juico@gmail.com

EVER since the quarantine started, I’ve had a sports withdrawal and a fitness withdrawal. Sports events here and abroad have been grounded to a halt. The gym close to my home is closed and will remain shut until the quarantine is lifted. To address the fitness withdrawal, I’ve been doing full body cardio HIIT workouts from Fitness Blender and Body Project. To face these challenges and issues, I finished reading two books, Success Is The Only Option: The Art of Coaching Extreme Talent by John Calipari (head coach of the University of Kentucky Wildcats and former head coach of the New

Jersey Nets) and Michael Sokolove. I also finished reading From The Outside: My Journey Through Life And The Game That I Love by the National Basketball Association’s (NBA) alltime leader in threes made, Ray Allen with writer Michael Arkush. I enrolled in an online sports marketing course at Northwestern University and it’s been very interesting so far and that sports marketing isn’t just sponsorships and endorsements, there’s a lot more to it. On Tuesday, I’ll be watching a webinar on “Entrepreneurship in Basketball and Tennis and the effects of Covid-19” organized

by SPIA Asia as part of their webinar series. I’ve already watched four episodes of The Last Dance which chronicles and narrates the exploits of the 1997-1998 Chicago Bulls before then-General Manager Jerry Krause did an overhaul of the whole team. Everyone from the world of sports has been contributing to the fight against Covid-19. NBA team owners making sure home playing venue employees and their families are financially sustained during the quarantine period. The DeVos family, owners of the Orlando Magic, according to nba.com, “backed a $2-million compensation fund for hourly employees of the Magic, Amway Center, Lakeland Magic and Solar Bears while their seasons are suspended due to the Covid-19 outbreak. Approximately 1,800 part-time employees will be benefited and receive paychecks for missed games through what would have been the end of the regular season based on data related to previous individual games worked. “The people behind our teams are family to us and it’s our honor to provide assistance to those adversely impacted during this trying time,’’ Magic Chairman Dan DeVos said. CNN.com reported that, “Basketball players such as

RAGUE—The top soccer divisions in the Czech Republic plan to restart on May 25 as the government eases restrictions to contain the coronavirus, the leagues said on Monday. The clubs must approve the plan at a meeting May 12 because the competitions would not be completed until July. Some sponsorship deals and player contracts expire by the end of June, when the leagues were originally scheduled to conclude. Six rounds of games in the regular season and the playoffs remain in the first division. All players will be tested for the virus and all games will be without spectators. The decision to restart is in line with UEFA’s recommendation for leagues to “explore all possible options” to complete their seasons. The organizers said government approval is needed because games would require the presence of some 130 people, including players, referees, club officials and others at the stadium. The government said it will allow team sports competitions to restart on May 25 but it’s not clear yet how many people can gather at stadiums. The Czech Republic has not been as badly hit by the pandemic as some other European nations. Italy, Spain, France and Britain all have recorded more than 20,000 deaths. In the Czech Republic, 221 people have died of Covid-19 and more than 7,400 have tested positive. AP

reigning NBA MVP Giannis Antetokounmpo [Milwaukee Bucks], rookie sensation Zion Williamson [New Orleans Pelicans] and former NBA champion Kevin Love [Cleveland Cavaliers] are just a few of those names.” Football superstars Sadio Mane of Liverpool and AC Milan’s Zlatan Ibrahimović are just a small sample of the footballing community who have contributed to help the cause, while women tennis icons Li Na and Simona Halep and National Football League player JJ Watt are also doing their bit.” In social media, professional athletes have been posting their workouts and coaches have been conducting webinars to share and pass on their knowledge and best practices with fellow bench tacticians. I’m an admin of a fan page of a semiprofessional women’s volleyball league and it’s been a challenge to be constantly on the lookout for content that will keep fans updated, informed and engaged. Finding the cure for this pandemic won’t be a slam dunk. Several countries like the US, UK, Japan and Israel are in a race to find a vaccine. The whole process will be a marathon not a sprint. Hopefully, we can pole vault and dive into a cure so that all of us can go back to being of service to God, family and country.

THAT’S ALL Al Mendoza | alsol47@yahoo.com

A bit of PBA lore and June Mar AFTER it opened its 2020 season on March 8, the Philippine Basketball Association (PBA) shut its door to the public— indefinitely. The move was to heed the government call for all crowd-inducing activities to stop due to the Covid-19 pandemic gripping the world for nearly three months now. The closure signaled the PBA’s shortest stint since the league’s birth 45 years ago. OK, you want history? On April 9, 1975, the PBA was born, becoming the first play-for-pay loop in Asia. Of its nine original teams, only San Miguel Beer remains. If Ossie Schectman was the first to score the first two points in the National Basketball Association (NBA) of the United States, Gregorio “Joy” Dionisio took that honor in the PBA. Schectman’s basket helped give the New York Knicks a 68-66 win over the Toronto Huskies on November 1, 1946. Schectman, then 27, died in 2013 at age 94. I was there covering the PBA’s birth for Bulletin Today when Dionisio scored the league’s first basket before 18,000 fans at the Araneta Coliseum. A wily guard, the Tondo-born Dionisio drove through traffic and banked a lay-up for Concepcion Carrier, his first team before moving to Crispa several seasons later. A month after the PBA opener, on May 8, 1975, before 11,000 fans at the Rizal Memorial Coliseum, Crispa and Toyota clashed for the first time to start what would become the most storied rivalry in Philippine basketball. Baby Dalupan, who mentored Crispa to its first PBA Grand Slam in 1976 before Tommy Manotoc coached the Redmanizers to their second Slam in 1983, is gone now but not Dante Silverio, the flamboyant Toyota coach who now dabbles in painting. The PBA landscape has pretty much changed as the league has morphed rather radically since the Crispa-Toyota days. There are 12 teams now, many of which are title-fit in contrast to that time when Crispa was practically dynastic in the nine-team format, with only the Toyota Comets almost always the only real challengers against the Redmanizers. Times change, indeed. But if there’s one chapter that tugs at the heart, it’s the current. Covid-19 is such a poor sport. But if there’s one smiling soul, morbidly it seems, rising from all the dark virus-produced narratives, it is San Miguel Beer’s June Mar Fajardo, the reigning MVP the last five straight years. For, if June Mar is out of the season due to his leg injury, so does the Covid-crippled league. Some guys have all the luck. THAT’S IT Eugene Labadan, a former photographer of the Philippine Airlines (PAL), succumbed to a heart attack on Monday. He was 63. We’ve had many memorable moments together during our stints in the PAL Golf Interclub tournaments, like killing a bottle of Carlos Primero after a hard day’s work with unabashed glee. Eugene helped me find Cebu’s best Spanish guitar, which I bought at a highway shop on our way to the Mactan airport. We almost missed our flight that afternoon. After that, we started addressing each other, “Guitara.” So long, Guitara. Please say hi to Pareng Jess. Enjoy your vacation.

NCAA family donates PPEs to hospitals

HE National Collegiate Athletic Association (NCAA) donated P500,000 worth of personal protective equipment (PPE) for health workers at the forefront of the Covid-19 pandemic. Peter Cayco, the league’s management committee chairman, said that the NCAA schools initiated the donation drive that intends to distribute PPEs to Metro Manila hospitals. “Each member-school of the NCAA have done its part in the relief effort with donations of food and equipment for the frontliners,” Cayco said.”This is the first time that as a whole, as one NCAA family, we’re giving our donation.” NCAA members earlier contributed to the fight against the virus on an individual basis. The league’s Season 95 was scrapped following the outbreak. Matches in eight sports—volleyball, beach volleyball, football, tennis, table tennis, soft tennis, athletics and under-15 basketball—were discontinued, along with the cheerleading competition. The University Athletic Association of the Philippines also terminated its season. The NCAA is composed of Arellano University, Letran, College of Saint Benilde, Emilio Aguinaldo College, Jose Rizal University, Lyceum of the Philippines University, Mapua University, San Beda University, San Sebastian College and University of Perpetual Help System DALTA. The Covid-19 outbreak has caused major effects on sports, but that doesn’t mean the member-schools of the NCAA are pulling away from their social responsibility. “In our own little way, this is the NCAA’s contribution in the fight against the pandemic,” Cayco said. “This is part of the NCAA’s advocacy, and as the oldest collegiate tournament in the country, as an institution, we’re extending our help to our brave frontliners.” Ramon Rafael Bonilla