House approves ₧162-B Bayanihan II By Jovee Marie N. Dela Cruz
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HE House of Representatives on Monday approved on third and final reading the proposed Bayahinan to Recover as One Act or the Bayanihan II, which seeks to mitigate the economic cost and losses from the Covid-19 pandemic. Voting 242 affirmative, 6 negative and zero abstention, lawmakers approved House Bill 6953 providing for a standy fund to support the response measures to the pandemic. Six members of the Makabayan bloc voted against the bill as they want first the national government to fully disclose how it spent the P3.7 trillion of the 2020 national budget before “it can be trusted to
MANILA Police Traffic Department personnel do a routine check of the 20 patrol cars donated by the Federation of Filipino-Chinese Chambers of Commerce to be used for patrolling the streets of the capital city. BERNARD TESTA
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spend the P162 billion under the proposed Bayanihan II.” The bill provides assistance, subsidies and other socioeconomic relief while restoring public trust and confidence in social economic institutions. The measure seeks to arm President Duterte with continued special powers and funds to deal with Covid-19. Speaker Alan Peter Cayetano said the bicameral conference committee is set this week to reconcile gaps between the House and Senate versions of the bill. The House version provides for P162 billion in funding for the government’s response measures; the Senate version sets a smaller budget of P140 billion. According to Cayetano, Congress is eyeing to ratify the Bayanihan II on Tues-
day next week. After the ratification by both houses, the bill will immediately go to Duterte for signature. Deputy Speaker Luis Raymund Villafuerte, sponsor of the bill, said the government is targeting to implement Bayanihan II in September. Villafuerte said the next step after enactment is to “work closely with the government to raise revenues” so it could sufficiently bankroll the Covid-19 response. He described it as a “stop-gap measure,” deeming it inadequate to prepare the economy for recovery. He said swift action by the House on Bayanihan II was in response to the President’s appeal in his State of the Nation Address (Sona) for urgent passage so the government could continue to effectively
address the international health emergency and economic fallout arising from the pandemic. House Committee on Ways and Means Chairman Joey Sarte Salceda said the approval of the bill, hopefully, begins to turn the economic tide for the better. “This will not be the beginning of the end. Certainly, until we have a vaccine, we cannot let our guard down. But this, I hope, will be the end of the beginning, the start of a new phase where we make significant economic and public health gains,” he said. While the enactment of the Bayanihan II is already a significant win, Salceda still called for the passage of a “bigger package” in the future.
See “Bayanihan II,” A2
BusinessMirror A broader look at today’s business
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EXPORTS NIGHTMARE IN ’20: A 21.4% PLUNGE www.businessmirror.com.ph
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Tuesday, August 11, 2020 Vol. 15 No. 306
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LOCALLY stranded individuals whose return to their home provinces was further delayed by the reimposition of a modified enhanced community quarantine (MECQ) make use of available space as temporary shelter at the Manila North Port terminal at Pier 2 in Manila, as they wait for government-sponsored ships to ferry them. ROY DOMINGO
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By Elijah Felice Rosales
HIS is the worst time to be an exporter, even worse than in the 2008 financial crisis.
Just as China and the United States are beginning to settle their trade conflict, the coronavirus pandemic erupted this year to thwart all hopes of stabilizing the global economy. Governments had
to order people to remain home to contain the spread of the virus, leaving factories shut down, their workers locked in homes, many without pay and at the mercy of government doles—if they come at all.
Shipments in the process were interrupted and supply chains were severed, as vessels arriving in docks were placed in quarantine and flights in almost every airport were canceled. In the case of the Philippines, it is safe to say exports for the full year of 2020 will decline. The Department of Trade and Industry (DTI) is expecting shipments of goods and services to crash by more than a fifth on uncertainties fueled by the pandemic. Senen M. Perlada, director at
the DTI’s Export Marketing Bureau, said the worst-case scenario for exports is to plunge 21.37 percent to $74.1 billion, from $94.25 billion last year. With the collapse, Perlada admitted it will now be challenging to reach the medium-term target set by the Duterte administration in its Philippine Export Development Plan (PEDP) 2018-2022. In the PEDP, the government stated its goal to bring exports of goods and services to at least $122 billion by 2022.
DAR TO BIZMEN: MINE BIG OPPORTUNITIES FOR AGRI INVESTORS
Continued on A2
House cuts on tourism recovery assailed By Ma. Stella F. Arnaldo Special to the BusinessMirror
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ORKING capital. That is what the tourism industry needs the most to get back on its feet, according to 17 of the biggest stakeholder groups in the country. In separate letters to House Speaker Alan Peter Cayetano and Senate President Vicente Sotto III dated August 9, 2020, the groups asked both chambers to review the provisions of House Bill 6953 (An Act Providing for Covid-19 Response and Recovery Interventions and Providing Mechanism to Accelerate the Recovery and Bolster the Resiliency of the Philippine Economy, Providing Funds therefor, and for other Purposes). This, they said, had “stripped” the Department of Tourism (DOT) the needed funding to “[support] tourism
enterprises through low-interest loans, credit facilities, funding for marketing and product development, grants for capacity building for the industry in the new normal, funding for the use of information technology in tourism and establishing Covid-testing centers, and other similar programs”—the intent of said bill. They pointed out, “In Section 4 (g) of Senate Bill 1564, the DOT had been allocated P10 billion to implement these programs. Instead, in Section 7 of HB 6953, the congressmen “allocated that crucial funding” to the Tourism Infrastructure and Enterprise Zone Authority (Tieza),” the infrastructure arm of the DOT. They said Tieza “is not mandated to provide this kind of broad-based assistance to the industry.” HB 6953 is the House of Representatives’ version of SB 1564, or Bayanihan 2 bill. The groups said, “While we understand
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the infrastructure is important to tourism development, it is not the need of the stakeholders at this time. We have been consistent from the beginning of the pandemic, in consultations with the DOT and even with the House of Representatives, that financial assistance for our working capital is what will be needed as we navigate through this situation. The country cannot afford a collapse of the tourism industry.” Both letters were signed by the presidents of the Tourism Congress of the Philippines, Philippine Tour Operators Association, the Philippine Travel Agencies Association, the Hotel Sales and Marketing Association, Philippine Association of Congress/Exhibition Organizers and Suppliers, Pacific Asia Travel Association-Philippines Chapter, Cebu Association of Tour Operators, Bohol Federation of Travel and Tour Operators, Eastern
Visayas Tour Association, Cebu Tours and Travel Association, Davao Travel Agencies Association, Davao Association of Tour Operators, Philippine IATA Agents Travel Association, Bulacan Association of Travel Agencies, Quezon City Travel Agencies Association, Philippine Association of Amusement Parks and Attractions. In a separate text message to the BusinessMirror, Philippine Hotel Owners Association President Arthur Lopez stressed, “What we need is working capital. It’s useless to give [that P10 billion funding] to Tieza. And P100 million to train tour guides??? What a waste.” The House approved HB 6953 on third reading late Monday. Bicameral conference committee meetings start on Wednesday to reconcile the House and Senate versions of Bayanihan II.
AGRICULTURE Secretary William D. Dar during a virtual meeting with BusinessMirror reporters.
By Jasper Emmanuel Y. Arcalas
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HE Department of Agriculture (DA) is encouraging businessmen to explore the numerous investment opportunities in the local farm sector considering the consumers’ and manufacturers’ huge requirements for food and raw materials. Agriculture Secretary William D. Dar enjoined the private sector to invest in agriculture through industrialization and the establishment of agri-aqua industrial business corridors (ABCs). ABCs was recently unveiled by the DA as one of its key projects in industrializing the agriculture sector. See “Agri,” A2
See “Tourism,” A2
n JAPAN 0.4634 n UK 64.0913 n HK 6.3331 n CHINA 7.0449 n SINGAPORE 35.7610 n AUSTRALIA 35.1231 n EU 57.8628 n SAUDI ARABIA 13.0924
Source: BSP (August 10, 2020)
News BusinessMirror
A2 Tuesday, August 11, 2020
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DOJ: All PhilHealth execs tied to anomalies should go on leave J By Joel R. San Juan
USTICE Secretary Menardo Guevarra on Monday called on all officials of the Philippine Health Insurance Corporation (PHIC) being linked to multibillion-peso anomalies in the agency to go on leave voluntarily.
These included, according to Guevarra, the 36 high-ranking and low-ranking officials earlier recommended by the Presidential AntiCorruption Commission (PACC) to be charged and be fired over alleged irregularities in the state firm. The DOJ secretary said those whose operations are currently under investigation or special audit should vacate their post to give way for an impartial investigation. “I hope they would voluntarily
Agri… Continued from A1
The project, which is in partnership with the Bases Conversion and Development Authority, aims to disperse agri-based industries to the regions and decongest Metro Manila, according to the DA. Based on Dar’s presentation, ABCs seek to entice the private sector “to invest and to allow great application of modern farm technology and knowledge that aims to dramatically raise agricultural productivity.” Higher budget and investment for the farm sector is one of Dar’s paradigms in leveling up Philippine agriculture. The Covid-19 pandemic, in particular, has highlighted the need for higher investments in agriculture to boost and sustain local food supply and diversify sources of food nationwide, experts said. Based on Dar’s presentation, there are various investment opportunities in agriculture such as in the industries of abaca, coconut, mango, seaweeds, cacao, coffee, shrimp and rubber. Majority of the possible investments in these industries are geared toward agri-businesses such as manufacturing, processing, logistics, post-harvest, among others. For example, in the abaca industry, there is a huge opportunity to establish a local industry for the production of tea bags, sausage casing, bank notes, fiber-reinforced construction materials that utilize abaca since the country lacks such facilities. Dar also told the BusinessMirror that investors could also explore venturing into industries of malunggay, yellow ginger and virgin coconut oil, due to their health benefits. Recently, the Department of Trade and Industry (DTI) asked Indian drug makers to consider the Philippines as their manufacturing hub in Southeast Asia due to the abundance of farm raw materials like malunggay and yellow ginger.
P200-billion budget
IN a virtual roundtable with the BusinessMiron Monday, Dar vowed that they will do their best to boost food output by 3 percent if the DA will be given at least P200 billion for next year. Dar disclosed that DA got a P86-billion allocation under the 2021 National Expenditure Program (NEP), which is 7.5 percent higher than its nearly P80 billion budget this year. The DA pitched for a P284-billion budget for 2021 to revitalize and boost food production amid the Covid-19 pandemic. Dar has repeatedly said the agriculture sector has been neglected in terms of budgetary allocation, and argued that it should get at least 10 percent of annual budget as it contributes 10 percent to GDP. Dar said that P20 billion out of the proposed P66-billion agriculture stimulus package has been included in the latest version of the Bayanihan to Act as One 2. They suggested to lawmakers, he said, that the remaining balance of P46 billion be included in the DA’s 2021 budget. “We are hoping to get P132 billion next year, which is the barest minimum. But we are willing to go to at least P200 billion [instead of P284 billion],” he said. Noting that “the President himself announced” support for the Plant, Plant, Plant program, Dar added, “agriculture is one of the sectors of economy that is key to Philippine economic recovery. There is a Presidential directive to fund the Plant, Plant, Plant program and increase the agriculture budget,” he added. ror
take a leave while their agency is under intense investigation,” Guevarra said. “If they are not hiding anything, they can take a leave of absence to enable the investigators/ auditors to freely complete their inquiry or examination,” he added. PhilHealth president Ricardo Morales has also filed a medical leave while undergoing treatment for lymphoma as advised by his doctors.
Guevarra noted that the Data Privacy Act may not be used to hinder the conduct of legitimate government investigations. The DOJ chief made the call as he convened on Monday the task force that he would be leading to conduct a thorough probe of alleged fraud and corruption in the government-run health insurer. The task force is composed of representatives from the Office of the Ombudsman, Commission on Audit, Civil Service Commission, Office of the Executive Secretary, Office of the Special Assistant to the President and the PACC. It was given 30 days to conduct an investigation, including lifestyle checks on PhilHealth officials, and to submit its report and recommendations to President Duterte. Malacañang said Duterte is fed up by persistent allegations of corruption in PhilHealth following Morales’s admission at a Senate hearing that about P10.2 billion of
the agency’s budget was “potentially lost” to fraudulent transactions and schemes in 2019. Guevarra said since the task force was given only 30 days to come up with a recommendation, thus, it would zero in on alleged anomalies already under investigation by other agencies. “The team will convene today [Monday] to finalize the strategy for the consideration of the task force, considering that the President directly assigned me to create the task force,” Guevarra explained. “I will personally oversee its operation to ensure coordinated government action, with support from my undersecretaries and assistant secretaries and a team of DOJ lawyers acting as secretariat,” he added. Guevarra said the members of the task force are currently identifying which specific investigations or audits, other than on the Wellmed issue, could be reasonably accomplished within the limited
period given to the task force Wellmed is among those being implicated in the P154 billion in bogus claims for dialysis and other medical treatment. In August 2019, the National Bureau of Investigation (NBI) filed criminal cases against 21 officials and employees of PHIC before the DOJ in connection with the fraudulent claims for payment of dialysis and other medical treatment of PhilHealth members and beneficiaries. The respondents, according to the NBI, gave unwarranted benefits to Wellmed in violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act. Aside from violation of the Anti-Graft and Corrupt Practice Act, the NBI is also seeking the prosecution of the respondents for violation of the provision of RA 10606 and RA 6713 also known as the Code of Conduct and Ethical Standards for Public Officials and Employees.
As oil firms hike gas and cut diesel, kerosene prices, DOE says supply steady amid closures By Lenie Lectura
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IL firms will increase the price of gasoline products and reduce diesel and kerosene prices this week. They announced a P0.25 per liter increase in gasoline. Diesel price will go down by P0.20 per liter and kerosene by P0.35 per liter. Seaoil, Cleanfuel, PTT Philippines, Phoenix Petroleum, Pilipinas Shell and Petron Corporation said Monday they would adjust their prices at 6 am of Tuesday, August 11. Other oil firms are expected to follow suit. The Department of Energy (DOE), meanwhile, assured a stable fuel supply in the country amid the re-imposition
of the modified enhanced community quarantine (MECQ). Oil refiners are required to keep a minimum inventory requirement of 30 days for crude oil, 15 days for finished products and seven days for LPG. DOE Director for Energy Resources Development Rino Abad noted that oil refiners, such as Petron and Shell, continue to post declining profit margins because of low fuel consumption with the implementation of stricter quarantine protocols in the country. “They post losses if their production is not bought [because of reduced demand]. The latest minimum inventory report shows a 63 days’ supply of petroleum products. So, that is too much… our refineries will be losing so much [if
that rises further],” explained Abad, in a mix of English and Filipino. Petron, the country’s largest oil refiner, posted a net loss of P14.2 billion in the first half of the year compared to its P2.6-billion net loss in the same period last year. Revenues went down to P152.4 billion from P254.8 billion during the period. Also, sales volume dropped 28 percent due to reduced consumption, particularly in aviation and retail. Abad said on Monday that oil refineries of Petron and Shell remain on temporary shutdown. Since May 5, Petron’s 180,000-barrel refinery in Bataan has been on a scheduled turnaround to give way to maintenance activities on major process units. Also, the plant shutdown will
mitigate the impact of low fuel demand and poor refining margins. Nonetheless, Petron assured the public that it has enough inventory to supply domestic market requirements, which will be replenished through importation of finished products. Shell’s 110,000-barrel-a-day refinery in Batangas is also on shutdown since May 24 as part of its “cash conservation measures.” “It’s an economic decision whether or not to shut down the refinery. Their inventories in the gasoline stations are full and they have a formula in place if they will resume their refinery operations or keep on importing,” explained DOE Undersecretary Felix William Fuentebella.
Exports nightmare in ’20: A 21.4% plunge Tourism… Continued from A1
Continued from A1
“[Before] Covid-19, we had a fighting chance of reaching the $122-billion total export target as early as December 2020, as a mere $28 billion is needed for us to produce,” Perlada explained, sighing at the lost opportunity to achieve an objective before its deadline. The DTI assumption for this year is $38.1 billion for export of goods and $36 billion for services, that is, if the cycles of lockdowns persist and no stimulus package is legislated. Under the PEDP, shipments should breach $102 billion by the end of 2020.
BSP data
RECORDS from the Bangko Sentral ng Pilipinas (BSP) indicate how much damage the health crisis is doing to the export sector. According to BSP data, the last time exports fell nearly double digits was in 2009, just as the world was recovering from the global financial crisis the prior year. Shipments that year declined over 9 percent to $43.22 billion, from $47.73 billion in 2008. Surely, there must be a messiah of some sort for Philippine exports, and that savior could just be the old reliable semiconductor industry.
Medical revolution
THE industry is poised to gain from the medical revolution resulting from the pandemic, Perlada said. Economies will make health breakthroughs, develop new technologies and mass-produce hospital equipment to prevent a repeat of this health crisis, and this will boost the demand for electronic parts. While there may be a surge in the market for medical electronics, this will just offset the slowdown in other categories, particularly automotive parts, according to the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi).
Seipi President Danilo C. Lachica said the industry will likely suffer a reduction of 20 percent in exports this year. He added recovery will depend on the quarantine situation which is hindering a full resumption of work, especially in manufacturing. “There was increase in medical electronics demand, [but] there was softening in other sectors, such as automotive electronics,” Lachica told the BusinessMirror. Likewise, the Philippines is far from benefiting from the import upswing in medical equipment parts. Data from the Philippine Statistics Authority (PSA) showed exports of electronic products for health instruments slid roughly 9 percent to $53.44 billion in the first semester, from $58.47 billion during the same period last year. And although automotive electronics grew double digits in the first half, market outlook for this category is flipping for the worse by the day. According to the Asean Automotive Federation, production of motor vehicles in the region fell by about 41 percent to 1.23 million units, from 2.08 million units, in the first semester. Even vehicle manufacturing hubs Thailand and Indonesia endured steep declines, signaling an uphill battle for the automotive industry and mainly its suppliers.
Poor badly hit
FOR Maria Ella C. Oplas, economics professor at the De La Salle University, the poor will suffer most if the government misses out on its export goals, as this will drag down the country’s economic profile to the detriment of investment inflows and job generation. “Missing our export goals would mean lesser firms [and] investor operations. These investors provide employment opportunities in the local labor market; without them, we experience high unemployment,” Oplas warned,
adding “poverty incidence will worsen” in the event workers go jobless. DTI’s Perlada disclosed that hundreds of export firms are now on the brink of either shutting down for good or relocating to another country. In the heat of a pandemic, no country can afford losing any of its investors, more so the Philippines, a developing economy. In its April Labor Force Survey, the PSA reported there are now 7.25 million jobless Filipinos, of whom 5 million were unemployed by the health crisis—and this could just blow up if investors choose to pack up and leave. Oplas said it may be wise for the government to reassess its export strategies in the aftermath of this pandemic, to look beyond Asia and its traditional trading partners in the continent, such as China. “The key is to diversify,” she said. “If you look at the trade performance of the country, we still have not fully maximized economies in the European market.” Under President Duterte, Manila’s renewed ties with Beijing expanded from the political to the economic, proof of which the country’s imports from China jumped nearly two-thirds to $25.59 billion in 2019, from $15.56 billion in 2016, according to PSA data. This backfired, though, when Covid-19 broke out in China. With the closure of factories in the mainland, Philippine exporters were left scrambling for basic units and components, distorting their operations, draining their inventory and delaying their shipments. Whether the Philippines is ready to reduce its purchases from China and expand its network of sources beyond Asia is a question only policymakers can answer.
Separately, the DOT also sent a position paper to the principal authors of both bills, i.e., Senators Imee Marcos, Sonny Angara, Ralph Recto, Sotto, Miguel Zubiri, Pia Cayetano, Cynthia Villar and Reps. LRay Villafuerte, Martin Romualdez, Mike Defensor, Jose Antonio Sy-Alvarado, and proposed the reconciliation of the conflicting provisions. The DOT proposed that the reconciled version of the bills instead provide P9.5 billion to finance DOT programs to assist the critically impacted businesses in tourism through low-interest loans or issuances of loan guarantees through GFIs (government financial institutions), for maintenance and operating expenses; and credit facilities through GFIs for upgrading, rehabilitation, or modernization of current establishments or facilities to be compliant with the new health and safety standards. The balance of P500 million is for setting up Covid-19 testing centers in tourist destinations as identified by the DOT, to stimulate tourism and generate employment, in partnership with local government units and the DOH (Department of Health) and/ or private entities. The DOT said the Development Bank of the Philippines and the Land Bank of the Philippines can be the conduits for the low-interest credit facilities. The tourism stakeholders reminded lawmakers of their industry’s huge contribution to the economy, having accounted for 12.7 percent of the gross domestic product and 13.5 percent of national employment in 2019. The economy shrank by 16.5 percent in the second quarter of 2019 yearon-year, led by the contractions in industry (22.9 percent) and services (15.8 percent), as well as a 15.5-percent drop in consumer spending.
Bayanihan II… Continued from A1
“Our most immediate next task is the enactment of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The House already has its version, so we are just waiting for the Senate. Together with the Bayanihan to Recover as One Act, CREATE will help stem negative sentiment in the market and instill more confidence in our economy,” he said. “In the coming weeks, we will continue working on economic reforms to build more resilient industries, capitalize on our strongest sectors, and assist sectors in great need. This is the hardest I’ve worked in my whole life in public service. Rest assured that I will continue to study and listen and work as hard,” he added. Cayetano said the government still needs both a roadmap and a pragmatic plan that can be funded and implemented effectively. “We have put the people—their lives and livelihood—first in this law. And at its center we have placed public health, MSMEs, OFWs, our athletes, the creative industry, social amelioration, and jobs, jobs, jobs. We want Bayanihan II to be a living piece of legislation that will power our industries and revitalize sectors of society that have been decimated by this virus, or were otherwise forgotten and neglected in the past,” added Cayetano. According to Cayetano, agriculture and tourism sectors, essential to the country’s economy and which can create employment and livelihood for tens of millions of Filipinos in the countryside, will receive a boost in Bayanihan II. “So too will the manufacturing industry, which, with the right elements to create the environment wherein manufacturers will return and thrive, will form the third leg in this triumvirate. These three sectors will form the spear-tip of our recovery effort, and underlies our key philosophy of putting people back to work so that we can all get back on our feet,” he added. Minority Leader Bienvenido Abante Jr. said proper planning and execution, or PPE, is needed to ensure that P162 billion earmarked for the Bayanihan II is fully utilized to contain the Covid-19 outbreak and address the adverse economic effects of the pandemic. “We do not have a lot of money to begin with, and this pandemic is not a problem we can simply throw money at,” the lawmaker added.
Red Cross rescues nurse thrown out for Covid-19 Continued from A8
The barangay was apparently not trained to handle such cases, Gordon said of reports that personnel at Barangay Olympia in Makati allegedly did not help her when she sought their assistance. Other reports said someone in the barangay hall simply gave her the number of the nearest health center and told her to call it. Gordon said there are facilities where local government units can turn over residents who tested positive for the disease, and local government units, down to the barangay level, should be trained on the proper protocols for such. “This is why we have isolation wards. We can’t allow people like Gem to wander on the streets. Landlords should not be kicking out people” just like that, he said. The nurse said she informed her family in Batangas of her plight, but they said they could not come and get her because it was already late. She left her boarding house at around 9 p.m. and looked for a temporary shelter. Meanwhile, Makati City Mayor Abigail Binay ordered an immediate investigation of the incident. Binay noted that Makati has an ordinance that prohibits and penalizes all forms of discrimination against persons with infectious diseases as well as frontliners and nurses. Moreover, Makati has existing facilities and protocols to handle Covid cases. “It is unfortunate that this happened to the nurse in this case,” Atty. Don Camiña, spokesperson of Makati City LGU, quoted Binay as saying. Gem said her family, meantime, told her she should have negative test results before she can return home. Claudeth Mocon-Ciriaco
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DA chief taps PSAU for animal vaccine research, development
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HE Department of Agriculture (DA) has invested P6.4 million in a state university research that seeks to provide vital information in the development of vaccines against animal diseases such as African swine fever (ASF) and bird flu. In a news statement issued on Monday, the DA said it has signed a memorandum of agreement (MOA) with the Pampanga State Agricultural University (PSAU) to provide the agri-fishery sector with access to cuttingedge technologies in accurately detecting and effectively addressing emerging animal diseases. “The launch of this project is both timely and relevant, as it marks a new milestone in our efforts to boost our capacity to accurately detect and effectively manage emerging animal diseases, including that of transboundary diseases, here in Central Luzon and nearby regions,” Agriculture Secretary William D. Dar said during the MOA signing last August 8. “Supporting this project can help us in a big way in the future. Let us tap the best of molecular science and all biotechnology tools available for the very problems we have in the country. Let us not waste time,” Dar added. The DA said PSAU’s project, titled “DNA Analysis for Accurate Diagnosis of Emerging Deadly Viruses among agri-fisheries of Central Luzon” will receive a P6.4-million funding from its attached agency, the Bureau of Agricultural Research (BAR). “[PSAU’s project] is expected to provide
information that can be used by drug manufacturing industries to build custom design vaccines that specifically target the viral strains present in a locale,” the DA added. The DA explained that the project will use reverse transcription-polymerase chain reaction (RT-PCR) and DNA sequencing to “determine the true-to-type species, or genotypes, on the causative agent of emerging deadly viruses, including ASF, Newcastle Disease, avian flu, tilapia lake virus, and white spot syndrome virus.” The project would also measure disease occurrence, reduction, severity as well as analyze their transmission, according to DA. Dar commended PSAU’s contribution in managing the ASF outbreaks in Central Luzon but challenged the university “to continually develop and enhance its capacities in research and development.” Dar has instructed BAR and PSAU “to reassess the availability and capacities of various animal disease diagnostics research facilities in effectively addressing and managing diseases not only in livestock but also in fisheries.” “Enhance your capacity through this existing facility because we need to start working now for that potential pandemic that may come from zoonotic animal diseases. If you have the best minds, the younger generation who has the right training, then you are ready and we shall be able to solve any problems along with those issues of transboundary animal diseases,” he said. Jasper Emmanuel Y. Arcalas
Expert pitches for creation of ‘travel bubbles’ to revitalize tourism industry
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@butchfBM
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EN. Joel Villanueva endorsed on Monday the mid-year release of a P5-billion supplemental budget of the Department of Labor and Employment (DOLE) to bankroll a comprehensive labor recovery package amid the Covid contagion. Villanueva, chairman of the Senate Committee on Labor, noted that the P5-billion assistance fund the Duterte administration released to the DOLE would “go a long way in its continued effort to repatriate overseas Filipino workers displaced by the Covid-19 pandemic.” The senator added that the supplemental fund that Labor Secretary Silvestre H. Bello III confirmed to have been released on Sunday would enable the DOLE to “continue providing the one-time cash grant of P10,000 to repatriated OFWs, aside from covering the cost of repatriation, testing, lodging and transportation to their home provinces.” Villanueva added: “Mapagpapatuloy pa po ng gobyerno ang pagpapauwi ng mga OFWs natin na kasalukuyang stranded sa iba’t ibang bahagi ng mundo sa tulong ng P5 billion na karagdagang pondo para sa DOLE.” At the same time, the senator said he was encouraging the DOLE to join him in pushing his bill providing for a comprehensive labor recovery package to provide livelihood for OFWs who want to come home. “Wealsoexpressourgratitudetoourgovern-
In an Asian Development Blog, ADB Economic Research and Regional Cooperation Department Economist Matthias Helble said travel bubbles are created through an exclusive travel partnership among countries that have controlled the virus to allow tourism between them. Helble said these agreements will open borders to nationals of travel bubble partner countries. These can be created for business travel only or may also include leisure travel. “They often specify provisions on health protocols that need to be followed when leaving and entering
mentforheedingourcallforadditionalfunding, which we have raised since May in the course of the weekly reports to Congress as provided by the Bayanihan 1 law,” the senator said. He noted that the initial funding of DOLE’s Abot Kamay Ang Pagtulong (AKAP)— amounting to P2.5 billion—is nearing depletion with the agency disbursing around P2.388 billion as of August 8 to over 233,000 OFW beneficiaries. Both the Overseas Workers Welfare Administration (OWWA) and Philippine Overseas Labor Offices around the world have processed and approved 267,584 applications, according to the department. The senator recalled that AKAP had intended to help 250,000 OFWs initially, but the number of applications swelled to about 597,469, prompting Bello to seek additional funding. Villanueva acknowledged that fresh funding would also enable OWWA to continue providing for the needs of repatriated OFWs, “particularly seafarers who called the government’s attention in June for supposed unequal treatment between land-based and sea-based workers.” Earlier, seafarers’ groups took issue with DOLE’s guidance that recruiters of sea-based workers must take care of their recruits, while land-based workers can run straight to OWWA for repatriation, testing, and transportation, prompting Villanueva, at the Senate labor committeehearing,tocallDOLE’sattentiontoensure “equal treatment and assistance to all OFWs.”
October, November licensure exams moved to 2021–PRC
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ICENSURE examinations for 15 professions scheduled to be held in the last quarter of the year have been moved back by the Professional Regulation Commission (PRC) to 2021. The decision, which is expected to affect around 65,000 aspiring professionals, was made amid the prevailing nationwide community quarantine due to the Covid-19 pandemic that has restrained public movement and gatherings. In an SMS, PRC Chairman Teofilo S. Pilando Jr. told the BusinessMirror the rescheduling was based on the recommendation of concerned Professional Regulatory Boards and stakeholders “due to lack of time to prepare for exams because of the community quarantines.” He also noted the safety of the examinees and PRC personnel, as well as the “complexity of exam administration due to guidelines adopted against Covid-19” were also taken into consideration for the resetting of the exam dates. Among the exams which will be affected by the new development are those for chemical engineers (October 2, 3, and
By Cai U. Ordinario
@caiordinario
REATING “travel bubbles” will help the tourism industry recover from the ongoing pandemic, according to the Asian Development Bank (ADB).
Villanueva backs approval of P5-B labor recovery package for repatriated OFWs By Butch Fernandez
Editor: Vittorio V. Vitug • Tuesday, August 11, 2020 A3
4, 2020); naval architects and marine engineers (October 6, 7, and 8, 2020); metallurgical engineers (October 6, 7, and 8, 2020); certified public accountants (October 10, 11, and 17, 2020); optometrists (written: October 13, 14,and 15, 2020) (practical: October 18, 19, 20 and 21, 2020); ocular pharmacologists (October 13, 2020); chemists (October 20 and 21, 2020); chemical technicians (October 22, 2020); electronic engineers (October 24 and 25, 2020); electronic technicians (October 26, 2020); geodetic engineers (October 28 and 29, 2020); fisheries technologists (October 28 and 29, 2020). The test for customs brokers (November 4 and 5, 2020) and agriculturists (November, 10, 11, and 12, 2020) will also be affected by the new arrangement. “The examinees are advised to check the PRC web site and social-media accounts for important updates,” PRC said in its advisory. For additional inquiries on changes on the dates of the said exams, applicants could send an e-mail to PRC Licensure Division at licensure.office@prc.gov.ph and licensure.division@prc.gov.ph. Samuel P. Medenilla
the territory. Access can be reciprocal or only in one direction. They can be formed between two or more partners,” Helble said. Helble added that the first travel bubble in Asia and the Pacific was established between the People’s Republic of China and the Republic of Korea on May 1, 2020. He explained that the agreement is limited to business travelers who are invited by a company in the receiving country. When traveling to travel bubbles, visitors need to monitor their health for two weeks and get tested for the
virus 72 hours before departure from their home country. Upon arrival, they are tested again and quarantined until the results are obtained. Helble said the China and Korea are currently discussing expansion of this program. Other travel bubbles under negotiation, Helble said, aim to allow movement of cross-border commuters such as the one between Malaysia and Singapore, while a travel bubble termed “bula bubble” is being created for tourism purposes among Australia, Fiji and New Zealand. “Our research simulated possible travel bubbles. For example, most tourists in Fiji are from Australia. If Fiji opened to Australia, the gap left by international tourists that could not be filled by domestic tourists would fall from 84 percent to 44 percent, a significant reduction,” Helble said. However, travel bubbles for tourism can pose challenges since the spread of Covid-19 has not been brought under control in most economies. Helble said with this, a travel bub-
ble can only be ideal for economies that are already well beyond their probable peak of new infection. In these instances, Helble said, economies would fare better in the promotion of domestic tourism. He said economies like the Philippines invested $8.5 million in a domestic tourism campaign in early 2020. In some cases in the region, Helble said domestic tourism has the potential to fully replace foreign visitors. However, if economies are more dependent on the tourism industry, the impact of domestic tourism may not be significant. “As the pandemic remains unpredictable, maintaining the bubbles will not be a simple undertaking. Even with these two strategies, the tourism industry is therefore likely to struggle until a vaccine is widely available,” Helble said. “Prior to Covid-19, the tourism industry was one of the region’s most dynamic sectors. Once the pandemic is over, there are many reasons to believe that tourism will resume its vibrancy,” he added.
The need to develop the Covid-19 vaccine supply chain now! Vaccines are complicated to manufacture, even compared to other pharmaceutical products. Producing the antigen, which provokes the body’s immune response, uses different techniques depending on the vaccine’s design. The vaccine candidates use different technology types, like protein-based, non-replicating viral vectors, or DNA vaccines. This means the equipment and processes to produce the vaccine differ. The filling and packaging materials vary as well, whether in multi-dose vials, or single syringes. All of this is done in a highly sterile environment with temperature controls and using skilled personnel. Equipment and processes must be tested and governmentapproved, along with testing the finished product.
By Henry J. Schumacher
I
T is exciting to read every day that the hunt for a Covid-19 vaccine is heating up. Scientists and pharmaceutical companies globally are researching and developing around 100 vaccine candidates, with at least 10 currently in early phases of human testing, according to the World Health Organization. One, or two vaccine, doses are anticipated per person, immunizing 60 percent to 80 percent of the population to achieve herd immunity globally. At least 5.6 billion people need inoculations, meaning development of a lot of vaccine doses in a short amount of time. Pharmaceutical companies and a host of other parties, including governments, nonprofit organizations and pharmaceutical suppliers, are busy readying the supply chain to handle that high number of vaccines. This is taking place while trying to maintain production of other inoculations—including the seasonal flu—and other medical products using some of the same materials and manufacturing capacity. The vaccine supply chain involves not only manufacturing the vaccine contents, but storage and packaging components, cold chain transit, domestic and global shipping, distribution strategies and storage.
Speeding the development timeline
COVID-19 vaccines could be ready for some frontline workers and at-risk populations later this year, or early 2021. Unlike with traditional development timelines, interested parties are throwing money at this development process to speed up availability. After lab testing, researchers move to animal testing and ultimately to humans. Then they build up manufacturing capability depending on the vaccine technology used. They need to start the manufacturing capacity today, and the problem is it requires significant investment.
Sourcing at scale presents shortage concerns
AS a regulated product, vaccines manufacturers have limits on what they can use, making sourcing more complicated: Glass and stoppers Needles and syringes Chemicals and vaccine components Vaccines can use thousands of ingredients, including adjuvants which strengthen the body’s immune response to an inoculation. Many of the chemicals used in pharmaceuticals come from China and India.
Nimble manufacturing capacity
MANUFACTURING billions of anything in a short time frame is a feat under normal circumstances. But there are no available manufacturing facilities just waiting for the coronavirus vaccines. Globally, manufacturers produce 5 billion vaccine doses annually, including 1.5 billion flu vaccines. And without excess capacity, production of a new coronavirus vaccine will cut into current vaccine production. The vaccine technology platform matters for packaging and delivery, and for manufacturing, as the vaccine candidates use different approaches. Vaccine producer Johnson & Johnson said it was committing $1 billion to expand manufacturing at its four facilities, and Sanofi also is scaling up.
Transportation and the vaccine supply chain
DISTRIBUTING and storing vaccines through the cold chain is easily done across the country, provided logistics and transportation are moving continuously. However, it requires adequate cool storage facilities, refrigerated containers, and experience in handling vaccines. And that’s a big issue: most of the vaccines under development now need to be stored at minus 80 degrees Celsius! That logistic infra-
structure is not available. It is essential that the research find ways to bring the storage and transport temperature to a significantly higher level. The Covid-19 vaccines would not all be available at once, giving suppliers and manufacturers additional time to ramp up and continue production. Initial doses would likely go to frontline health workers and vulnerable populations. Initially government entities would help distribute vaccines, but likely companies would then take over that role. What does this mean for the Philippines? You saw the recent headlines? PHL seeks access to Covid-19 vaccine The government will spend P20 billion to buy vaccines for Covid-19, as soon as these become available later this year Manila ready to procure vaccine—Isko. It is high time for government and the private sector to get together and discuss the vaccine handling from arrival in the country through cold storage and nationwide refrigerated container distribution to the Filipinos that need to be vaccinated. As mentioned above, also in the Philippines storage and distribution at minus 80 degrees Celsius is not available. But the good news is that one logistics company can handle the storage and distribution at minus 18 degrees Celsius!
Who should be on this interagency/ private sector committee?
ON the government side: Department of Health, Food and Drug Administration, Bureau of Customs (BOC), Department of the Interior and Local Government, including local government units, government hospitals, etc. On the private sector side: pharmaceutical companies, logistics experts handling, storing and distributing vaccines already, private hospitals, etc. Other issues that need to be considered by the joint committee: Cost of the vaccines Clearance of the vaccines by the BOC without delays, tax and duty exempt Special areas must be assigned at airports for flights carrying vaccines Cost of storage and distribution of vaccines Transportation equipment Logistic hubs Distribution tracking and security And many more… As can be seen from this article, the supply chain issues of the vaccines need to be addressed by government and the involved private sector now. If not, the Philippines may have access to vaccines but being unable to handle them which would be disastrous for the Filipinos who need them badly. Feedback is more than welcome; contact me at schumacher@eitsc.com
A6 Tuesday, August 11, 2020 • Editor: Angel R. Calso
Opinion BusinessMirror
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editorial
Clergymen are citizens, too
‘R
ender unto Caesar what is Caesar’s and unto God what is God’s.” Governments and leaders who bear the brunt of the Church’s criticism often pull out this quote from the New Testament when Jesus pointed to Caesar’s image on a coin. A Palace official recently grumbled about the Catholic hierarchy combining religion with politics instead of getting on with what he perceives as the clergy’s real business: the spiritual realm and not the secular. Chief presidential legal counsel Salvador Panelo said that a pastoral letter of the Catholic Bishops’ Conference of the Philippines (CBCP) on the anti-terrorism law “appears to have” violated the constitutional provision on the separation of church and state. Panelo accused the CBCP of pressuring the Supreme Court in “calling for prayers” and appealing to the conscience of the court’s members. A total of 25 petitions have been filed so far asking the Supreme Court to declare Republic Act 11479 or the Anti-Terrorism Act of 2020 unconstitutional to stop its implementation. Bishop Broderick Pabillo, the apostolic administrator of Manila, answered Panelo by saying Catholic Church leaders are well within their rights to call out the government. “Don’t we have the right to speak about the government’s shortcomings because we are members of the church? We are also citizens,” Pabillo said in a news conference. “If it really is violative, they should file a case against us. We are challenging them if our letter really violates that. We did that in order to raise awareness among Filipinos. Our call is clear in the text. It is a call to prayer.” CBCP acting president Bishop Pablo Virgilio David also said that the bishops never intended to influence members of the Supreme Court or interfere with the operations of government. “Our only influence is on conscience, because it is our duty to form consciences, and we are accountable to God for this. We draw inspiration from both the Scriptures and the magisterium of the church,” David said. “What we hope and pray for is that both our legislature and judiciary remain truly independent and continue to function as designed by our constitution.” We do not and cannot claim to know more about theology than our Doctors of Divinity. But it is clear from the Gospels that while Jesus taught nonviolence and love for enemies, he was not a conservative who defended the traditions of the law in the manner of the Pharisees. He was not a collaborator who supported social indifference or political quietism in the face of corruption and social ills that he saw during his time—and Jesus lived during one of the most corrupt periods in history. Historical records say that the Caesar Jesus referred to in the Biblical passage was Roman emperor Tiberius Caesar, who was known as a pedophile, a sexual deviant and a murderer; who as emperor claimed to be a god and oppressed and enslaved millions of people, including the Jews. Surely Jesus never meant his quote to be interpreted as an endorsement of Caesar’s reign. Surely he never wanted people to simply close their eyes when there were so many victims of corruption and injustice. Faith should not sedate people. Prayers should always come with action and good deeds. There is nothing un-Christian or un-Catholic about denouncing corruption, the lack of democracy and human-rights violations. Perhaps the Jesus quote about Caesar speaks more about people and institutions who go beyond their authority and the responsibility of Christians to stand in their way. If the state—Caesar—exerts authority beyond its jurisdiction, if its leaders abuse their power and use their authority to perpetrate tyranny and injustice, then they do not render unto God what is God’s. In such cases, it is but Christianly to be politically engaged, to speak out and work against an unjust and tyrannical state or leader or government. And one need not be a bishop to do so. Since 2005
BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua
Recession signals need for vigorous reopening Manny B. Villar
THE Entrepreneur
T
he sharp decline of the Philippine economy in the second quarter is not totally unexpected. The harsh lockdown measures implemented in the April-to-June period across Metro Manila and the rest of the nation shuttered many business operations and put millions of Filipinos out of work. The gross domestic product dropped 16.5 percent in the second quarter year-on-year. Simply put, the lower economic output during the period means factories, restaurants, malls and other industries were churning out less. The reduced production, in turn, means the economy employed less in response to the weak demand from consumers. Household consumption, according to the Philippine Statistics Authority, dropped 16.5 percent in the second quarter as the prolonged pandemic lockdown and the impaired mobility of our workers curbed the spending power of consumers. It is very clear that many Filipino workers had little purchasing power despite financial assistance from the state. Along with the 0.7-percent contraction in the first quarter of the year, the second-quarter slump officially put the Philippines into a recession. The economic slump, however,
is not exclusive to the Philippines. The world’s biggest economies registered the same sharp decline in GDP output. The United States, the world’s biggest economy, registered a secondquarter slump of 9.5 percent compared with the same period a year ago, the worst figure on record. Record contractions were posted in Germany (10.1 percent), Belgium (12.2 percent), Austria (10.7 percent) and Mexico (17 percent). France’s economy declined by a record 13.8 percent in the second quarter, Italy plunged 12.4 percent, Spain fell 18.5 percent and Portugal slumped 14.1 percent. Unfortunately, the Philippines fared worse than its peers in Southeast Asia, where many implemented a more effective contact tracing strategy. The Philippines’s GDP fell 9 percent in the first six months of 2020 compared with a contraction of 1.2 percent in Indonesia, 6.5
Home delivery is the future
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percent in Thailand and 3.9 percent in Malaysia. Vietnam escaped the regional slump with a 2.1-percent GDP growth. Our GDP numbers are not good in the second quarter but we may have seen the worst as we started reopening the economy. I share the cautious optimism of our economic managers after the gradual reopening of the economy. Acting Planning Secretary Karl Chua has noted that while the decline in the second-quarter GDP was steep, signs of recovery were emerging. Government data support’s Mr. Chua’s observation. Manufacturing production, exports and imports are taking a U-turn from their rapid drop. The volume of production index was -39 percent in April but improved to -19 percent by June. The second quarter contraction averaged -29 percent, and Mr. Chua expects it to gradually recover in the coming months. Exports and imports are also beginning to recover. Export shipments improved from -50 percent in April to -13 percent in June and averaged -30 percent in the second quarter. Shipments to China, one of the Philippines’s largest trading partners, improved from -55 percent in April to a 2.8-percent growth in June. “As China’s economy improves in the second semester, we can expect export growth to follow,” says Mr. Chua. Imports, which are backing both
T
he world has changed. King Umberto I of Italy and Queen Margherita of Savoy were visiting Naples, Italy around 1889. Legend has it that the poor Queen was sickened by food poisoning and wanted “local” food.
Raffaele Esposito was a local that owned a tavern called Pizzeria di Pietro e basta così (Pietro’s Pizzeria and that’s enough), which you have to admit is a very cool name. “Pietro” opened the place a hundred years earlier. Chef Raffaele gets the word and creates a pizza in the colors of the Italian flag using mozzarella, basil, and tomatoes. Have you ever ordered a “Margherita pizza”? But you couldn’t expect the King and Queen to sit around with a bunch of college kids eating pizza and drinking wine. So Raffaele took the pizzas to the Royals himself and the first home delivery of pizza was made. McDonald’s started home deliv-
ery in 1993. Now some American in Bundók City, USA calls an agent in the Philippines to have a pizza delivered from one kilometer away. We have become comfortable with having everything from food to fancy underwear brought directly to our doorstep. While attending a ThreeDay Sale at the mall might be fun, the cost for home-delivered goods can often be lower because the seller does not have the overhead costs of a brick and mortar operation. How do you think Jeff Bezos became a multibillionaire? The last several months of pandemic has moved companies that would have never thought about home delivery into that service. This
has created a new term: the “Stay at Home” economy. The foundation of this new economy is the Fast-Moving Consumer Goods (FMCG). These are products that sell quickly at relatively low cost and include food from canned goods to perishable items like fresh meat and fruits and vegetables. Other staples in the FMCG arena are everything from office supplies to cleaning products. Consumer comfort and confidence with E-Commerce has been obvious for a long time. However, this has been somewhat limited to both a narrow market and relatively narrow range of products. That all changed in 2020. A study released in May 2020 by market research firm Kantar Worldpanel makes it clear that companies that are not onboard with this new trend are going to be losers. And note, this is from May, really before the pandemic went ballistic. Kantar reports that more than 50 percent of Asia’s total population has used e-commerce. Fastest e-commerce growth has been recorded in North Asia; Philippines and Indonesia has the lowest until now. Projects and comparisons are difficult. The Philippines previously had high “spending power” only behind Taiwan, Korea and Japan. Further,
household consumption and investment, are gradually recovering from a deep contraction of -65 percent in April to a slower drop of -25 percent in June. Bangko Sentral ng Pilipinas Governor Benjamin Diokno shares Mr. Chua’s optimism. The economy tumbled largely due to the comprehensive lockdown during the quarter. But Mr. Diokno noted that economic activity has started to pick up as the government gradually reopened the economy. It is time perhaps to reopen the economy further and move away from debilitating lockdowns that exacted a heavy toll on the economy, jobs and livelihoods. We can aggressively reopen the economy and contain the spread of Covid-19 at the same time through a more systematic approach. As I’ve written here before, we should impose lockdowns only on a localized or cluster level and further strengthen our contact tracing capacity. We can build similar isolation facilities in other major urban areas and large municipalities outside of the capital region to effectively contain the spread of Covid-19. With widespread lockdowns, we are penalizing workers who have abided with health protocols. Let us give them a chance to reclaim their jobs and help in the economic recovery.
For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.
the Philippines had the highest frequency of outside shopping trips for FMCG items. The country also saw the greatest decline in “outside trips” of any Asian country through May. As a result, Filipinos dramatically reduced purchases of “Beverages & Dairy” and “Home & Personal Care” products. Here is the takeaway that every Philippine company selling any sort of FMCG—particularly goods and all food items—better understand. The penetration of the “home delivery” business in the Philippines is lower in comparison to other economies. Therefore the growth potential is huge and larger. Fifty-percent of Filipinos are willing to shop more online and expect to do it in the future. However, if companies do not meet that demand for more home delivery, they will not sell their products until and unless Filipinos start doing their “normal” outside shopping. Further, if a competitor is moving swiftly into direct delivery, your business may never recover.
E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.
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A refresher on some technical defenses against assessments Fulvio D. Dawilan
Tax Law for Business
T
he best defense against any assessment is always the proof that tax reports had been accurately filed and that taxes had been correctly paid. But taxpayers should also be aware that in the conduct of an assessment, there are obligations and responsibilities on both the part of the tax authority and the taxpayers. Procedures missed by the tax authority may affect the validity of an assessment, and serve as defense for the taxpayer. On the other hand, failure on the part of the taxpayer to observe some procedural rules may lead to the imposition of an assessment that otherwise should be invalid. And there are also some avenues where taxpayers may recover payments of taxes that were invalidly assessed. Some of these rules are clearly defined, but some would require judicial pronouncements for clarity. Most of these judicial precedents had been applied and reiterated in a number of cases and therefore serve as reliable references when taxpayers are faced with similar issues. Basic as they may be, there is a need to refresh ourselves as any taxpayer may be faced with similar circumstances as the examination by the tax authority intensifies. This brings me to a recent decision by the Court of Tax Appeals (CTA Case Nos. 9577 and 9739), reiterating these principles, some of which I’ve discussed here. 1. The CTA may not entertain an appeal against an assessment that had become final and executory. However, it may take jurisdiction on a timely filed claim for refund on payments made upon application for compromise settlement on the same assessment, if the application for compromise is denied. Payment of an assessment through a compromise is an option available to a taxpayer for the settlement of an assessment. When this option is resorted to, the taxpayer usually disregards the procedures for contesting and assessment, leaving the same to attain finality. That assessment may no longer be appealed to the CTA as the latter may not have jurisdiction to act on the appeal. What if the application for compromise is also denied—what is the remedy of the taxpayer? Should there be basis for the invalidity of an assessment but which can no longer be questioned before the CTA through an appeal on the assessment, a claim for refund of the amount paid on the supposed compromise may be an option. This gives the tax court the opportunity to rule on the validity of the assessment itself. Under this scenario, a taxpayer may, instead of contesting an assessment, pay the same and then apply for a refund on the basis of the invalidity of an assessment. 2. In the absence of a false or fraudulent return, the threeyear prescriptive period for the issuance of an assessment remains. For the 10-year prescriptive to apply as an exception to the three-year prescriptive period, the tax authority should allege and prove that the taxpayer filed false or fraudulent returns. Falsity or fraud has to be alleged and proven by the tax authority. The imposition of a 50 percent surcharge does not equate to an allegation of falsity or fraud, absent an explanation for claiming the same. 3. A second assessment for the same type of tax covered by a previous assessment is void. The present rules allow the issuance of more than one letter of authorities for the examination of a taxpayer for the same period. An example is the examination by a taxpayer for VAT by the Value-Added Tax Audit Group (VATAG). A separate letter of authority may be issued for the regular examination of all other
Some of these rules are clearly defined, but some would require judicial pronouncements for clarity. Most of these judicial precedents had been applied and reiterated in a number of cases and therefore serve as reliable references when taxpayers are faced with similar issues. taxes, other than VAT. It sometimes happens, however, that the same period is again subjected to another round of examination for the same type of tax. If this happens, the second assessment is without basis. As emphasized by the Court, when the tax authority had already sifted through a taxpayer’s books of accounts and thus had ample opportunity to make a complete assessment, and come up with findings of deficiency taxes, it may not undertake another assessment for the same type of tax for the same period already covered by the previous assessment. It is also unfair for a taxpayer to be subjected to another round of tax audit and assessment especially if the second assessment is already beyond the prescribed period to assess. I believe this principle should apply to all types of examination, including those supposedly covered by fraud audit, if the tax authority had been given the opportunity to conduct a complete audit during the first examination. 4. Absence of a letter of authority renders an assessment void. Pursuant to Revenue Memorandum Order 12-98, only one letter of authority for each taxable year should be issued. The tax authority may not circumvent such limitation by carrying out an assessment only by virtue of a mere letter notice and giving the latter the effect of an LOA. The absence of an LOA is tantamount to a denial of a taxpayer’s right to due process. 5. A compromise settlement made pursuant to an invalid assessment is without legal basis. An invalid assessment cannot be used as a basis for the perfection of a tax compromise. Any payment may therefore be the subject of a refund. These are a number of available defenses and options that taxpayers may avail in case of tax examinations. The items enumerated above are just among them. Each assessment case, however, has its own peculiarity. The defense should be tailored to the uniqueness of the case. The author is the Managing Partner of DuBaladad and Associates Law Offices (BDB Law), a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at fulvio.dawilan@bdblaw.com.ph or call 84032001 loc 310.
Tuesday, August 11, 2020 A7
RIP: Recession, inflation and pandemic Manny F. Dooc
TELLTALES
R
ecession is a dreaded term in politics. No leader of his country can have a sound sleep if the economy has gone south. Our economy took a nosedive when it plunged into a recession after the gross domestic product (GDP) contracted by a whooping16.5 percent in the second quarter. This is the steepest economic decline our country has seen in the past four decades, even surpassing the worst scenario the economists had forecasted. Our worst nightmare is now upon us and we are now facing its dire consequences. On top of this, we continue to struggle against the devastation of Covid-19 and there appears to be no end in sight to this global health problem. Now the Philippines has become the hot spot of the pandemic in Southeast Asia after overtaking Indonesia as the country with the highest number of Covid-19 infections. Whether the surge was due to our country’s significant increase in our testing capacity, bigger than any of our neighboring nations, getting the most number of infected cases is a matter of serious concern. In fact, it’s the main reason why the IATF reimposed the modified enhanced community quarantine (MECQ) to lower the incidence of infections and give a breather to our medical frontliners who have been bearing the brunt of the coronavirus. On top of this, our annual inflation rate went up unexpectedly to 2.7 percent, the highest in 6 months. The costs of transportation, food, alcoholic beverage, to-
bacco, and health services, among others, accounted for the increase. With inflation, people worry about the future value of their earnings, savings and investments. So they would rather enjoy consumption now instead of foregoing it for better returns later. Price stability enables our people to live within their means, spend more efficiently and work and enjoy the fruits of their labor wisely. Workers find satisfaction in real wages. Definitely, we will not hit the all time high inflation rate of 62.8 percent in 1984 after Ninoy Aquino was assassinated. Our economic team succeeded in taming inflation in 2018 and they can employ similar sound monetary and fiscal policies to prevent inflation from running away. But there’s a limit to what they can do. For instance, I doubt if we can
still slash the interest rate since the MB has already cut it down to a record low of 2.25 percent. That’s lower than the current inflation rate of 2.7 percent. There would be no more incentive to save and for those who heavily rely on interest income, like the retirees, it would be tough to make both ends meet. We have not hit the bottom and it’s too early to talk of recovery, in whatever shape of the alphabet it takes. The worst is not yet in our rear view mirror. We really have to learn how to survive with this pandemic. We cannot be prisoners forever in our own homes. Meanwhile, let’s follow all the health protocols and social distancing to contain the spread of the virus. But we expect Congress to pass a meaningful stimulus package to deliver our people and businesses from the perditious clutches of this pandemic. Moreover, it is incumbent upon the authorities to keep close watch of our key economic metrics such as the unemployment, GDP, inflation, interest rate, debt levels, balance of payments, and deficit to keep our economy on an even keel. There is no silver bullet to address the pandemic unless they produce the vaccine. Likewise, there is no panacea to our economic woes. Alan Greenspan had once said that no one can stop a recession or any major economic downturn. In a speech he made on March 16, 1995 before the realtors of America, he admitted that “the Federal Reserve has no magical power to eliminate economic fluctuations. But we endeavor to minimize them, and in doing so, seek to improve the environment for long-term
economic growth.” We used to be an economic wonder in Asia. Now, with the highest number of coronavirus infections, surging unemployment, widening fiscal deficit, inflation and worst recession in decades, we are in a position where no people in our region would be happy to trade place with us. With the reimposition of the MECQ, our way to recovery has been stalled. It delays the gradual reopening of the economy which poses another hardship and suffering for our people—many of whom are unemployed and dependent solely on government subsidy. This will again require further financial relief from the government, which is now reeling from relief fatigue. What will our new economy look like after the pandemic? The ideal set up is to have an economy with low inflation and high employment. But is that achievable? If yes, how soon? Until we get the vaccine, it would be an uphill climb. That is the challenge posed before President Duterte and his team with barely 22 months left in office. This begs the question: can we continue to weather this pandemic and avert the collapse of our economy? Can we afford the enormous cost of the stimulus package? Crises produce great leaders. They say that “there is no better time to emerge as the leader than in a middle of a crisis.” More than ever, we need a leader who is bold, not a bully; strong but not rude; blunt but not vulgar, and brave but not oppressive. These are the leadership qualities that we need at the moment, and President Duterte with his firm resolve can be equal to our people’s trust.
Can the finance industry be trusted this time? By Elisa Martinuzzi | Bloomberg Opinion
L
ike the rest of us, the world’s finance industry is still wrestling with the huge uncertainty of a pandemic that doesn’t yet have an end. The sector’s reputation took a battering after the financial crisis, and it’s too early to say how things will go this time.
One area in the spotlight is insurance, with myriad claims being pursued by small businesses seeking redress for their Covid-related losses. In one of many cases around the world, the U.K.’s financial market regulator is taking on the insurance industry in a High Court battle that could affect as many as 370,000 customers—predominantly small companies—and cost the sector billions of dollars in payouts. If the insurers win, they’ll avoid those huge expenses. But the broader cost might be even bigger. Once again, people working in the real economy would feel that the financiers don’t have their back in a crisis, and the knock-on effect on economic confidence would be severe. At the center of the UK dispute
are policies that were designed to cover the loss in income for businesses from the impact of physical damage. The contention is whether the policies also apply to a pandemic. The Financial Conduct Authority argues that companies lost money under lockdown—even if they remained technically open—because people were told to stay home. Insurers say the government’s guidance was only a warning, similar to what the public is told about cigarettes and alcohol consumption, and they are therefore not liable. A judgment is expected in September. Similar cases elsewhere have gone in the claimant’s favor. In France, an insurer was ordered to pay a restaurant owner for loss in income because of the coronavirus, and in Canada a
court ruled physical damage could include viral contamination. The extent to which the costs of a natural disaster are shared with the finance industry can hinder and, perhaps more surprisingly, support economic recovery, a recent study has shown. Academics at Washington University in St. Louis analyzed how people’s sentiment toward financiers responded to more than 50 severe natural disasters between 1870 and 2009 and looked at the economic trends that followed. To do so, they gleaned inputs from the texts of millions of books from eight large economies, creating an index to measure attitudes and the impact of people’s confidence in the finance sector on gross domestic product. They found that epidemics and earthquakes tend to lower people’s regard for finance, while droughts and floods typically improved views toward the industry. The researchers put this down to insurance coverage. Epidemics and earthquakes are often treated as uninsured, which means
losses for policyholders and resentment about the industry. That in turn can affect GDP growth, according to the report. The academics acknowledged that it’s impossible to calculate the exact impact on GDP of diminished trust in the finance industry, but Asaf Manela, one of the authors, told me individuals’ respect for insurers and other financiers in a crisis is clearly a factor for the economy. Trust in finance was only just recovering in the aftermath of the financial crisis. While banks have been granting payment holidays and handing out billion of loans to small companies, this has been driven largely by government (that is, taxpayer) guarantees. “The way the industry responds to the crisis in the next phase will determine how it is seen,” says Antony Elliott of the Fairbanking Foundation, a charity that aims to improve financial well-being. The finance sector can’t hide behind governments and central banks forever.
What people fear most about ‘cancel culture’ By Ramesh Ponnuru Bloomberg Opinion
‘C
ancel culture” is a phenomenon with almost no defenders. Instead there are people who lament and assail it, and people who deny it exists. It “isn’t real,” it’s “a patchwork monster invented to scare children,” it’s “a spooky campfire story.” In case you missed the point, New York Times columnist Charles M. Blow put it in capital letters: “Once more: There is no such thing as cancel culture.” His work of persuasion not quite done, he offered an alternative explanation: “The rich and powerful are just upset that the masses can now organize their dissent.” What this school of thought has going for it is the fuzziness of the concept of “cancel culture.” The same was true of its predecessor “political correctness,” which was also denied to exist rather than defended. The line between criticism and intolerance, like the line between sensitiv-
ity and oversensitivity, is subjective. That’s why a recent survey about self-censorship is so clarifying. It shows that a very large number of Americans—one might call them “masses,” borrowing from Blow— are thinking twice before speaking their minds about politics; that the number of the fearful is rising; and that the fear rises as one moves right on the political spectrum. The Cato Institute, a libertarian think tank, asked people whether “the political climate these days prevents me from saying things I believe because others might find them offensive.” In 2017, 58 percent agreed; in 2020, 62 percent did. Conservatives were most likely to agree, but moderates agreed too (64 percent to 36 percent). “Strong liberals” were the only group that had a majority in disagreement, and even 42 percent of them agreed. This sentiment is not confined to the rich and the privileged. It’s not just an aversion to criticism, either. Cato also asked, “Are you worried about losing your job or miss-
ing out on job opportunities if your political opinions became known?” A third of employed respondents said yes—including 22 percent of blacks and 38 percent of Latinos. They don’t seem to be reacting to a hardening of taboos against comments that nearly everyone sees as bigoted. They’re not registering increasing concern for “simple politeness.” They’re not Boomers who can’t handle social media, the dismissal former President Barack Obama bizarrely received when he criticized left-wing purity enforcers. Cato found that 18-29-year-olds were the most worried about job repercussions from their opinions. The findings are more consistent with what the critics of cancel culture are saying. The line of unacceptability is constantly, rapidly and unpredictably shifting; sanctions for crossing it are applied arbitrarily but sometimes harshly. Another set of surveys has asked Americans if they feel less free to speak their minds than they used
to. Over the last few years, the percentage that says they feel less free has been much higher than it was in past decades. To deny a rising climate of intolerance in the face of such findings requires believing that the campfire story has been accepted by tens of millions of Americans of varying races and political views. You would have to maintain that all of these people are wrong, and not about some technical point or some abstract matter far removed from their daily experiences. Or you could acknowledge that the campfire story is real. We are becoming less tolerant of differing opinions, less inclined to judge them with open minds or at least charity. It may not be the most urgent problem in the world. One commentator on cancel culture has sagely observed that Covid-19 is worse. But that it is a problem is becoming increasingly hard to deny. And we may find that our efforts to solve all kinds of problems do not benefit from fear of candid discussion.
A8 Tuesday, August 11, 2020
PHL in fine balance between US, China in S. China Sea–DND By Rene Acosta
@reneacostaBM
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HE country is protecting and keeping its stake in the West Philippine Sea by balancing its relationship with superpowers in the South China Sea, Defense Secretary Delfin Lorenzana said on Monday. He said this as the Philippines refuses to be dragged into the rivalry between China and the United States. “Maybe, it’s okay if the Americans are there [South China Sea], but they cannot always stay here, in South China Sea. They have to come here from their nearest base in Guam and in Okinawa and have to travel, and they have to leave. We would be left here,” the defense chief told Karen Davila of ANC’s Headstart. “So we have to balance our relationship with each of these superpowers to protect our interests. We could not conduct exercises there with them. First, we have no equipment to draw on, our frigates are not armed and we have limited ships. So we cannot actually participate with them,” he added. Lorenzana said maintaining relations with China and the United States, whose goal is to keep the waters of the Indo-Pacific open to international navigation, is the best way for the country to protect its interests—primarily its enjoyment of natural resources in the West Philippine Sea. While the defense secretary does not agree with China’s labeling of the US as a “trouble maker” because of its presence in the region, he said this is just a part of the accusations and counteraccusations
of both sides, and a “problem between the two superpowers.” Lorenzana continued: “They were throwing accusations against each other, and I don’t think we should be involved in those kinds of big power rivalry,” The country is cautious in dealing with both countries, because, as Lorenzana out it if the US would leave the region or even the South China Sea, it will be left to fend for itself. “If they leave, we have to deal with the Chinese whether we like it or not, and they are, of course, neighbor. They are always there. So I think we have to manage our relationship with the Chinese, and that’s what the President is trying to do actually since the start of his presidency,” Lorenzana explained. While the country could not take part in any war games with the US in the South China Sea just like other countries such as Australia, New Zealand, France and the United Kingdom, the military could do it on a smaller scale with Americans and within the country’s territory. “We can do it [in] some other places within our territorial waters like the Sulu Sea and our other areas within the territorial waters, not in the disputed area,” Lorenzana said. The defense secretary said that if President Duterte said he could not do anything against China, he meant it militarily. “Really, we could not do anything. Let us accept it. Even if the Americans will back us up, we cannot do anything there because the Americans are not permanent here,” he said.
With ABS-CBN closure, MECQ, displaced hit 15k
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By Samuel P. Medenilla
@sam_medenilla
HE declaration of the modified enhanced community quarantine (MECQ) in some areas as well as the mass retrenchment at ABS-CBN Corp.—shut down by Congress’ refusal to renew its franchise—contributed to the spike in the number of jobless workers last week, which reached over 15,000.
This was the first time permanent displacement figures breached the 10,000 mark in the last four weeks. During the said period, the
average number of unemployed workers was 7,386. “We are looking at the MECQ as the possible reason,” Labor Assistant Secretary Dominique Tutay told BusinessMirror in a Viber message. The National Capital Region (NCR), Bulacan, Cavite, Laguna, and Rizal were placed under MECQ last Tuesday, which led to the temporary banning of public transportation and limited business operations in the said areas. The MECQ, which is expected to last up to August 18, 2020, aims to grant exhausted medical workers in the affected areas some reprieve amid rising infections, and enable the government to improve its response to the novel corona-
virus disease (Covid-19). Tutay noted the latest displacement report also includes the over 4,500 employees, who were retrenched by ABS-CBN after Congress rejected renewal of its franchise. Besides the 4,500 regular employees, the Lopez-led network provides various forms of employment to 6,500 others.
New trend
IN it latest report, the Department of Labor and Employment (DOLE) reported the number of displaced workers displaced from August 2 to August 9, 2020, rose to 157,000 from 141,958 in the previous week. Of these figures, 143,200 were retrenched by 6,163 companies, while the remaining 13,484 were left jobless with the permanent closure of 680 establishments. As in previous weeks, the NCR still registered the highest number of displaced workers with 75,178. It was followed by Calabarzon with 32,421 and Central Luzon with 17,368. In terms of industries, the top 3 industry groups with the most number of displacements are still the administrative and support services activities (36,578); other services activities (20,689), and the manufacturing (20,179). To note, the industry with the biggest increase in displacement was the information and communication sector. The number of its unemployed workers soared to 12,895 from 6,808 in the previous displacement report of DOLE.
Red Cross rescues nurse thrown out for Covid-19
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OLLOW ING an incident involving a Covid-infected nurse who was kicked out of her boarding house and was seen roaming the streets of Makati City, Sen. Richard J. Gordon called for well-defined policies on the Covid-19 response of local government units (LGUs). The senator, who is also Philippine Red Cross (PRC) chairman and CEO, said that whatever is lacking in the present setup should be improved. The PRC rescued on Sunday night nurse “Gem,” who was infected with Covid-19. Gem, a customer care representative nurse under a health maintenance organization, was told to vacate her room within the day after informing her landlady last August 9 that she had contracted the virus. Gem said she was eventually referred to the Red Cross through a friend. The nurse was found sitting on the pavement along Southville Makati corner JP Rizal, according to Zenaida Beltejar, consultant of the PRC’s Welfare Services. “Ito ay istorya ng discrimination [This is a story of discrimination]. ‘Wag n’yong gagawin ito sa kapwa natin Pilipino.... Lahat ng tao, dapat tinutulungan natin [Don’t do this to our fellow Filipino.... We should be helping all persons]. Mukhang mali ang polisiya ng gobyerno [There may be something wrong in the policy of the government ]. Isang nurse na magagamit natin sa paglaban sa Covid, lumalabas, walang policy ang gobyerno [A nurse whom we marshall to combat Cov id-19 [but was discriminated] shows t hat t he gover nment has no policy],” Gordon said, particularly referring to barangay officials near the woman’s boarding house, who could not help her, forcing her to roam the streets late at night. Continued on A2
Stricter lockdown rules to hurt consumer spending recovery By Tyrone Jasper C. Piad @Tyronepiad
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ITH the Philippines returning to a stricter lockdown, the path to recovery of consumer spending— one of the major economic growth drivers—may be bumpy after quarantine measures ease. Moody’s Analytics noted in a report on Monday that the country’s gross domestic product (GDP) fell by 9 percent in the first half because most expenditure components declined sharply, including private consumption. The Philippine Statistics Authority (PSA) reported last week t hat household consumpt ion plummeted by 15.5 percent already in the second quarter—after only inching up by 0.2 percent three months earlier—as spending in transport, restaurants and hotels, recreation and culture, clothing, a lcoholic beverages and education, among others, decreased as well. “The risks arise from the renewed restrictions on Manila and nearby provinces to contain an increasing trend of new Covid-19 cases, and the significant deterioration in employment conditions, which will hold back the pace of rebound in consumer spending in the post-restrictions phase, given
the severe dent to household incomes,” Moody’s Economist Shahana Mukherjee said. Metro Manila, Cavite, Laguna, Rizal and Bulacan were placed under a modified enhanced community quarantine (MECQ) again from August 4 to 18 following the announcement on August 2. On Monday, there were around 130,000 confirmed cases, over 67,000 recoveries and more than 2,200 deaths. Mukherjee said that “one of the significant fallouts from the strict and protracted lockdowns is the sharp deterioration in employment prospects,” which led to reduced income and spending. Latest data shows that the unemployment rate soared to 17.7 percent in April from 5.1 percent during the same period last year. It meant at least 5 million Filipinos were left jobless that month, bringing the total number of unemployed to 7.25 million. This is expected to get worse, according to Asian Development Bank, projecting the unemployment rate to reach 22 percent in the second quarter in Luzon alone as more job losses are seen due to the pandemic.
Q3 outlook
RCBC Chief Economist Michael Ricafort, meanwhile, said that
consumer spending is likely to plunge again in the third quarter in view of the two-week MECQ in the capital region and nearby areas that could slow down business activities anew. “Still possible,” he said when asked if the decline would be double-digit again. “Moving forward, it would be a function of reducing the new number of Covid-19 cases before quarantine measures would be eased further from MECQ after August 18, 2020, and even in the coming weeks/months,” Ricafort added. ING Bank Manila Economist Nicholas A ntonio T. Mapa said he was not optimistic either that household spending w il l recover any time soon, noting that most of the ex penses were a l located for basic goods and hea lth care. “This means that even if Filipinos are spending on food and health items, gaping holes remain from last year’s transport and leisure expenses, which will not return any time soon,” he explained. Mapa said those who were “lucky” to still have jobs during the lockdown are likely to channel their income to savings and basic goods or health care, with discretionary spending at the bottom of their lists.
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Lower spot prices, IPP prices cut Meralco’s Aug power rates By Lenie Lectura
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@llectura
OWER spot market prices and a reduction in charges from Independent Power Producers (IPPs) resulted in a decrease of P0.2055 per kilowatt hour (kWh) in overall power rates this month for residential consumers of the Manila Electric Co. (Meralco). From last month’s P8.6966 per kWh, August power rates are now down to P8.4911 per kWh. This is equivalent to a reduction of around P41 in the total bill of residential customers consuming 200 kWh. The drop was traced to lower generation charges, which have declined for five consecutive months. Meralco said this month’s overall rate is significantly lower than that of August 2019, which was P9.5674 per kWh, and is also the lowest in nearly three years, since September 2017. From P4.3344 per kWh in July,
the generation charge decreased by P0.2103 per kWh to P4.1241 per kWh this August. Meralco said lower rates from the Wholesale Electricity Spot Market (WESM) and the IPPs mainly caused this. The share of WESM to Meralco’s supply needs is 15.5 percent. IPPs, on the other hand, accounted for 33.9 percent of Meralco’s total supply. WESM charges were P1.1200 per kWh lower this month due to improved supply situation in the Luzon grid with lower average plant capacity on outage. There were also
no Yellow Alerts in July versus one alert in June. Cost of power from the IPPs decreased by P0.3284 per kWh due to lower natural gas prices as a result of quarterly repricing. The price of natural gas from Malampaya is indexed to international crude oil prices. The significant reduction in crude oil prices in the first half of the year was reflected in the Malampaya natural gas price this month. Peso appreciation also contributed to this month’s reduction in IPP rates. Meanwhile, purchases from PSAs inched up by P0.2722 per kWh due to lower average plant dispatch and lower Force Majeure (FM) claims this month, compared with the previous month. Because of the reduced power demand in its service area during the community quarantine period, Meralco continued to invoke the FM provision in its PSA with First Gen Hydro Power Corporation (FGHPC). This August, the FM claim reached a total of about P82 million, equivalent to customer savings of P0.0285 per kWh in the generation charge. For the past five months, the savings from FM claims reached around P1.9 billion.
PSAs accounted for 50.6 percent of Meralco’s total supply. During a virtual press briefing Tuesday, Meralco utility economics head Lawrence Fernandez said electricity demand started recovering in June and July, albeit not as strong as the same months a year ago. “At the start of the community quarantine, we saw a sudden reduction in demand. But this gradually went up in June and July but still very much below 2019 level. The reduction from June 2019 to June 2020 was a little more than 6 percent,” explained Fernandez. Transmission charge for residential customers registered a slight reduction of P0.0081 per kWh due to lower ancillary service charges. This more than offsets the P0.0129 per kWh net increase in taxes and other charges. Collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC. Meralco’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 61 months, after these registered reductions in July 2015.
@villygc
T
he United Coconut Associations of the Philippines (UCAP) said the production of coconut oil production in the country is not an environmental and biodiversity threat. UCAP issued the statement after the recent publication of articles which indicated that the process of producing coconut is an environmental threat and is “worse” than palm oil production. The group quoted a report from the United Kingdom’s University of Exeter, which claimed that the production of coconut oil threatens around 20 animal species for every million tons made. UCAP said what is happening at the local scene is the opposite. The group said the main problem facing the local industry is the near extinction of coconut trees, most of which were planted during the Spanish colonial period that started in the 1600s when local coconuts were already exported to other countries, such as Mexico, as these were also ruled by the Spaniards. “We are pleading to government reg-
Photo from Philippine Coconut Authority
ulators to immediately address and avert the collapse of the industry,” UCAP said. Export earnings of locally-harvested coconuts amount to about $2 billion annually, making the Philippines one of the world’s top coconut suppliers. The Philippine coconut sector also provides livelihood to about 3.5 million Filipino farmers, the group said. UCAP said only Indonesia and Malaysia are open to corporate farming in the region, but involving mostly palm trees. Palm oil, meanwhile, corners nearly
45 percent of the global market while coconut oil accounts for just about 2 percent, UCAP said. “But coconut’s usefulness compared to palm goes beyond oil. Coconut, many times referred to as a low-cost but nutritious poor man’s food, is being used to manufacture oil health supplements, beauty products, biodiesel, and even aesthetic decors. Palm, on the other hand, is solely for industrial usage only. The use of palm oil as biodiesel ingredient is banned
in the European Union.” Victoria Espaldon, former Dean of the University of the Philippines-Los Baños School of Environment Science and Management, said the transformation of Philippine landscapes to coconut began hundreds of years ago. “At the moment, it is not expanding, rather, coconut areas are receding and being transformed into other land uses or mixed uses (agroforestry),” she said, adding that coconut-based diversified farms are turning into habitats for wildlife, particularly for birds and insects.” “Coconut oil processing plants are now much improved and have been more environmentally conscious as much as palm oil production. Wastes from coconut production like husks are now being turned into big enterprises— garden media, coco coir, coco-dusts.” Espaldon said, however, that all agricultural production for commercial uses has adverse environmental impacts. “If we do not do anything, the negative impacts can be devastating; however, like all human managed enterprises, these environmental issues can be mitigated.”
UK agency to probe Barclays Jollibee opens first cloud kitchen in Singapore
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arclays Plc. faces a United Kingdom privacy investigation over software that checks on what staff are doing, the Information Commissioner’s Office said Monday. “We have an ongoing investigation relating to Barclays’ alleged use of employee monitoring tools,” the ICO said in an emailed statement. The probe was earlier reported by the Daily Telegraph, which said the bank used a Sapience Analytics program to study workers anonymously for 18 months. While UK privacy rules don’t forbid companies monitoring employees electronically, people are entitled to a degree of privacy, the ICO said. “If organizations wish to monitor their employees, they should be clear about its purpose and that it brings real benefits,” the dataprotection authority said. “Organizations also need to make employees aware of the nature, extent and reasons for any monitoring.” Despite leaving the EU earlier this year, Britain still adheres to the General Data Protection Regulation, one of the world’s strictest privacy laws. This gives watchdogs such as the ICO tough powers and raises potential fines for companies to as much as 4 percent of global annual sales. Barclays referred to a statement it made in February, saying it “always intended to listen to colleague feedback as part of this limited pilot, and we have taken steps to ensure that no individual data is visible to managers.” The software allowed managers to measure the length of time employees were away from their desks or how long they took to finish tasks, the Telegraph said. The bank switched on additional functions in February that allowed managers to pick out individuals, the report said. After protests from employees at the time, the bank stopped the monitoring later that month, and informed the ICO of its actions, according to the Telegraph. Bloomberg News
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ast-food company Jollibee Foods Corp. on Monday said it opened its first cloud kitchen in Singapore for its flagship Jollibee brand. The opening of the company's inaugural cloud kitchen comes as demand for its food delivery continues to grow significantly, the company said. The business contribution of Jollibee Singapore’s delivery has more than quadrupled compared to last year—from 10 percent in 2019 to 45 percent in 2020, the company said. Tampines is a residential area in the region of Tanah Merah located in the east region of Singapore. The Jollibee cloud kitchen in Singapore is open from 10 am to 8 pm. “As cloud kitchens roll out, we will be able to reach more consumers and fulfill more orders. The Jollibee Group is able to expand more quickly and cost-efficiently through this innovative store model, while maintaining the same safety and quality standards of our food,” Ernesto Tanmantiong, the company’s CEO, said. Cloud kitchens are unmarked food production and delivery hubs without any dine-in facility in discreet and lower rent urban locations. The cloud kitchen in Singapore is the third cloud kitchen to open in the Jollibee Group, with more slated to open soon. Cloud kitchens are part of the Jollibee Group’s overall transformation strategy to adapt to new customer habits and meet the continued strong demand for delivery amid the pandemic.
Contributed Photo
Jollibee Group opened its very first cloud kitchen in the United Arab Emirates last March, which continues to outperform targets. In the United States, its recently opened cloud kitchen in Chicago’s River North neighborhood was also well-received. VG Cabuag
B1
Eagle Cement’s income plunges 61% in first half
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AGLE Cement Corp. said its income for the first half of the year ending June fell 61 percent to P1.3 billion from last year's P3.33 billion on steep drop in economic activity due to Covid-19 lockdown measures. Net sales fell 44 percent to P5.9 billion from last year's P10.49 billion, the company said. “These are very difficult times but we remain confident that the economy will recover from this pandemic and emerge stronger. The government’s steady push for the completion of major infrastructure projects and the private sector’s readiness to bounce back offer encouraging signs for our Company’s prospects moving forward,” Eagle President and CEO Paul Ang said. Eagle said it expects the strong performance it saw early in the year to resume once the government eases further the quarantine restrictions, especially in Luzon. For the second quarter alone, the company said it had a net profit of merely P128 million, or just a fraction of the P1.74 billion it earned last year. Net sales dropped 73 percent to P1.4 billion from last year's P5.12 billion.
Ang said the pandemic that has gouged the economy this year has created a highly competitive cement market that could squeeze profits. “More aggressive strategies in pricing and marketing will be undertaken in the remaining half of the year,” he said. He said the company still has a strong financial position as of end June to withstand any external adversities amid the crisis. Total assets amounted to P45.8 billion, a 7-percent drop from the end of last year's figure while total liabilities declined by 13 percent to P10.2 billion. “Our balance sheet remains strong and well-capitalized and the company is well-positioned to take advantage of a rebound in the construction industry. We continue to expand our production capacity despite the pandemic, underscoring our confidence on the economy’s ability to recover once quarantine restrictions are further eased,” Ang said. Eagle said its Bulacan expansion is under way and is slated to be completed in the first quarter of 2021. It will increase its cement production capacity by 1.5 million metric tons to 8.6 million MT a year. VG Cabuag
More Power to Peco: Let’s set aside row for sake of Iloilo electricity consumers
UCAP defends PHL coco oil production M By VG Cabuag
Tuesday, August 11, 2020
ORE Electric and Power Corp. (More Power) urged Panay Electric Co. (Peco) to cooperate and set aside their differences for the benefit of the Iloilo City power consumers. More Power President Roel Castro said it has been two years since the company extended a “reconciliation hand” to Peco, but the former power distributor of Iloilo City has refused to cooperate. “The relationship of More Power and Peco should not be viewed as a corporate war. More Power has nothing to do with Peco. We are here in Iloilo City not because we are after Peco, but we are after the sorry state of facilities here, plagued with complaints of poor service, customer case and high electricity rates,” Castro said on Monday. Castro said he understands that it is difficult for Peco management to lose its franchise after nearly 100 years in the business but, as a public utility, it should put the interest of consumers and Iloilo City above everything else. “There are consumers involved here; if Peco looks at that perspective then they really should give way. We respect and understand that what they’re going through is painful, but at the end of the day, it’s the court and the regulator that will decide on the matter.
Whatever and whoever is affected should respect the decision,” Castro said. Congress did not renew the legislative franchise it issued to Peco on the basis of numerous complaints about its service, including pole fires and brownouts caused by its dilapidated facilities and overbilling. The Energy Regulatory Commission also revoked its certificate of public convenience while the Iloilo City government did not issue a business permit to Peco. Castro also disputed Peco’s claims that More Power has no technical expertise to run the distribution system of Iloilo City. He said MORE currently has 142 employees, 70 of which are former technical personnel of Peco. “There’s no point of saying that More has no technical knowledge. Management and resources may have changed, but we have the same technical people and engineers,” Castro said. Castro also lambasted Peco’s claim that MORE’s outage incidents reached 412 hours from February 16, 2020 to July 16, 2020. He said the power interruptions reached only 182 hours. “Honesty is the best policy. I don’t know what their tactics are. MORE Power will not go to that extent of lying,” Castro said. Lenie Lectura
Italy’s richest family builds $3-B side bet to candy giant
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ichele Ferrero helped introduce Nutella and Kinder chocolate to the world, turning his family’s Italian confectionary business into a global giant with annual sales of about $10 billion. Now his son, Giovanni, is charting his own path. Net assets of Giovanni’s investment firm, CTH, surged 40 percent last year to 2.8 billion euros ($3.3 billion), filings show. The increase was boosted by its $300 million purchase of Danish cookie baker Kelsen Group, an acquisition designed to help preserve Italy’s biggest fortune by investing beyond the confectionary industry. Giovanni has “established his presence in the wider sweet packaged-food market” with CTH, said Guido Giannotta, a director of the Brussels-based firm, who helps manage the Ferrero family’s fortune. Such a move will “represent an important de-risking solution, both in terms of product categories and geographical reach,” he added. Like the Ferreros, many of the world’s richest individuals are diversifying their fortunes as they seek to grow wealth across generations. Zara founder Amancio Ortega—Spain’s richest person—invested the proceeds from his clothing business Inditex SA into real estate worldwide, while Microsoft Corp. co-founder Bill Gates’s holdings range from railroads to agricultural
businessess to construction firms.
Pastry shop
The Ferreros’ business began as a family pastry shop in northern Italy that used hazelnuts as a way to stretch limited cocoa supplies. After World War II, it grew into a confectionary firm, opening production facilities and offices abroad. It launched the Nutella and Kinder Chocolate and Tic Tac mints brands in the 1960s and then expanded with products including Ferrero Rocher. CTH was created in 2016 and owns Belgian cookie maker Delacre and US candy company Ferrara in addition to Kelsen Group. Ferrero Group—the family’s confectionary business —has also invested beyond candy, completing a $1.3 billion deal last year for Kellogg Co.’s cookies and fruit snack brands. Giovanni, 55, is executive chairman of Ferrero Group and owns a controlling stake in the Alba, Italy-based company, which is now valued at $23 billion, according to the Bloomberg Billionaires Index. It makes up the bulk of the Ferrero family’s $32.9 billion fortune. Investing in cookies “makes sense as chocolate and biscuits fight for the same space in our stomachs,” said Duncan Fox, a consumer products analyst at Bloomberg Intelligence. “If you can get the right innovation, you get far greater distribution if you have exposure to both.” Bloomberg News
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Companies BusinessMirror
Tuesday, August 11, 2020
PSE STOCK QUOTATIONS
August 10, 2020
Net Foreign Stocks Bid Ask Open High Low Close Volume Value Trade (Peso) Buy (Sell) FINANCIALs
ASIA UNITED BDO UNIBANK BANK PH ISLANDS CHINABANK EAST WEST BANK METROBANK PHIL NATL BANK PSBANK RCBC SECURITY BANK UNION BANK BRIGHT KINDLE COL FINANCIAL FERRONOUX HLDG MEDCO HLDG MANULIFE NTL REINSURANCE PHIL STOCK EXCH SUN LIFE
45.05 89 62.05 20.1 7.75 34.75 19.98 47.7 15.82 90.7 53 0.78 21.6 2.72 0.265 680 0.64 155 1820
46.65 89.1 62.15 20.2 7.76 34.8 20 48.9 15.98 90.95 53.8 0.87 22 2.84 0.27 739 0.65 157 1840
45 90 62.7 20 7.58 35.1 19.94 47.5 15.98 91.2 53.1 0.9 22 2.84 0.27 739 0.63 159.5 1800
46 90 63.15 20.2 7.75 35.1 20.2 48 15.98 91.85 53.8 0.92 22 2.84 0.27 739 0.68 159.5 1820
45 88.7 62 19.9 7.58 34.5 19.94 47.5 15.8 90.5 52.95 0.87 21.6 2.75 0.265 739 0.6 155 1800
45.05 89 62.05 20.2 7.75 34.75 20 47.5 15.8 90.7 53.8 0.87 22 2.84 0.265 739 0.64 155 1820
5300 3458720 3411440 207100 596200 1350100 58000 600 6000 450960 7160 127000 2600 138000 740000 10 190654000 2400 400
243505 308126573.5 212184352 4154710 4564233 46826975 1159942 28600 95108 41006304 383603 114210 56905 380220 197000 7390 117307730 375770 727900
INDUSTRIAL
AC ENERGY ALSONS CONS ABOITIZ POWER BASIC ENERGY FIRST GEN FIRST PHIL HLDG MERALCO MANILA WATER PETRON PETROENERGY PHX PETROLEUM PILIPINAS SHELL SPC POWER VIVANT AGRINURTURE AXELUM CNTRL AZUCARERA CENTURY FOOD DEL MONTE DNL INDUS EMPERADOR SMC FOODANDBEV ALLIANCE SELECT FRUITAS HLDG GINEBRA JOLLIBEE MACAY HLDG MAXS GROUP SHAKEYS PIZZA ROXAS AND CO RFM CORP ROXAS HLDG SWIFT FOODS UNIV ROBINA VITARICH VICTORIAS CONCRETE A CONCRETE B CEMEX HLDG EAGLE CEMENT EEI CORP HOLCIM MEGAWIDE PHINMA TKC METALS VULCAN INDL CROWN ASIA EUROMED LMG CHEMICALS PRYCE CORP CONCEPCION GREENERGY INTEGRATED MICR IONICS PANASONIC SFA SEMICON CIRTEK HLDG
2.66 1.21 25.2 0.166 26 58.6 264.8 12.74 3.06 3.3 11.22 17.5 7.98 13.52 7.98 2.34 11 16.12 5.04 5.01 9.84 62.5 0.66 1.18 38 137.5 6.92 4.59 5.4 1.16 4.23 1.54 0.103 138 0.77 2.23 51.65 52.1 1.06 10 5.21 5.09 6.15 8.41 0.67 0.79 1.86 2.05 4.76 4.03 18.5 1.68 4.7 1.01 4.21 1.47 5.91
2.69 1.24 25.25 0.169 26.1 58.8 266 12.78 3.09 3.35 11.4 17.52 8.02 14.96 7.99 2.35 11.48 16.2 5.05 5.05 9.85 64.6 0.67 1.19 38.2 138 7.48 4.6 5.45 1.17 4.5 1.65 0.108 139.7 0.78 2.3 56 56.85 1.07 10.02 5.22 5.1 6.17 9 0.69 0.8 1.88 2.06 4.98 4.15 19 1.72 4.71 1.02 4.7 1.48 5.92
2.66 1.22 24.9 0.17 26.95 58.55 266.6 12.52 3.06 3.38 11.38 17.5 7.97 14.96 7.57 2.19 10.9 15.82 5.2 4.78 9.48 63.2 0.63 1.16 35.55 133 6.8 4.6 5.59 1.17 4.5 1.5 0.104 135 0.77 2.3 51.55 53 1.02 10.24 5.22 5.12 6.32 8.45 0.69 0.73 1.88 1.96 4.54 4.03 19 1.71 4.85 0.95 4.69 1.35 5.99
2.75 1.23 25.2 0.171 26.95 58.65 266.6 12.84 3.06 3.38 11.4 17.6 8.03 14.96 7.99 2.37 11 16.22 5.34 5.12 10.04 64.6 0.68 1.21 38 138.5 7.48 4.65 5.59 1.18 4.5 1.64 0.104 140 0.78 2.3 56.45 56.95 1.08 10.36 5.22 5.2 6.32 9 0.69 0.81 1.88 2.05 5.02 4.1 19 1.73 5 1.03 4.7 1.48 5.99
2.62 1.2 24.6 0.161 26 58.55 264.2 12.52 3.04 3.3 11.22 17.42 7.96 14.96 7.57 2.19 10.9 15.82 5 4.78 9.4 62 0.62 1.16 35.55 131.2 6.8 4.58 5.4 1.15 4.45 1.5 0.104 135 0.76 2.23 51.55 52 1.02 10 5.09 5.08 6.05 8.45 0.65 0.72 1.88 1.95 4.54 4.03 19 1.68 4.68 0.94 4.69 1.35 5.81
2.66 1.21 25.2 0.169 26 58.6 264.8 12.74 3.06 3.35 11.4 17.5 8.02 14.96 7.99 2.34 11 16.2 5.04 5.01 9.85 64.6 0.67 1.19 38 137.5 7.48 4.6 5.4 1.16 4.45 1.6 0.104 139.7 0.78 2.3 56.45 56.85 1.06 10 5.22 5.09 6.15 9 0.69 0.79 1.88 2.05 4.98 4.05 19 1.72 4.7 1.01 4.7 1.47 5.91
15192000 1172000 554100 126970000 431100 148040 123770 1120100 1000000 88000 22000 874000 155400 800 410100 23083000 16700 2892700 376600 6935000 27101300 75380 3127000 5185000 82300 1094390 200 721000 2192000 1214000 4000 82000 250000 1436170 1144000 4000 220 3580 14773000 1535400 2000500 859000 3334300 176800 104000 985000 11000 974000 238000 121000 400 1389000 402000 528000 2000 5127000 905200
225495 -176527855 -101318727 -961785 -611786 -36708395 -522158 17518 -10661130 -74700 -72550 718900
40990290 1420270 13886040 20657630 11271325 8675489 32789342 14183270 3051190 291540 250626 15379518 1239204 11968 3229823 53104620 183620 46780240 1919996 34538880 266556186 4819117 2047070 6136250 3080330 147282503 1428 3324920 11947968 1412850 17950 128550 26000 198746305 881140 9060 11390 186373.5 15656230 15428822 10377044 4419455 20462734 1494400 68800 774290 20680 1962440 1176520 495250 7600 2368020 1930110 524160 9390 7375550 5316771
2439330 -545580 2179620 -4006500 -8406119 -19443632 -3897706 -1733590 -89546 98295 -2330000 -16090164 -372031 -22734750 25683132 -3369621 23600 1983765 32918832 110840 -4326300 -244330.0001 93605061 -3850 846660 -15200940 15440 -4056127 454949.9998 -7600 -211100 -373620 -15020 -284799.9997 -164860
HOLDING & FRIMS ABACORE CAPITAL 0.475 0.48 0.485 0.49 0.48 0.48 6700000 3232850 7.6 7.84 7.85 7.85 7.48 7.85 2900 22058 ASIABEST GROUP AYALA CORP 716 730 700 730 699 730 179340 129201400 47.4 48.45 47.85 48.45 46.55 48.45 318600 15332075 ABOITIZ EQUITY ALLIANCE GLOBAL 5.79 5.8 5.59 5.85 5.59 5.8 20772100 119711594 AYALA LAND LOG 1.8 1.82 1.77 1.85 1.77 1.8 2018000 3642140 0.54 0.55 0.48 0.66 0.48 0.54 101480000 49228000 ANGLO PHIL HLDG ATN HLDG A 0.57 0.58 0.57 0.59 0.57 0.58 1354000 782310 0.58 0.6 0.57 0.6 0.57 0.6 23000 13170 ATN HLDG B 4.96 4.99 4.95 5 4.91 4.96 2723000 13498770 COSCO CAPITAL DMCI HLDG 3.56 3.6 3.68 3.68 3.56 3.56 3423000 12332760 8.5 8.98 8.32 8.5 8.27 8.5 39300 333668 FILINVEST DEV GT CAPITAL 401.6 402.8 401 403.8 400.6 401.6 69060 27736498 HOUSE OF INV 2.88 2.9 2.9 2.9 2.9 2.9 13000 37700 62.3 62.5 61.95 62.95 60.95 62.3 907250 56419423.5 JG SUMMIT JOLLIVILLE HLDG 4.41 5.09 5.19 5.19 5.19 5.19 1000 5190 0.6 0.61 0.62 0.63 0.59 0.6 192000 116700 LODESTAR 2.32 2.33 2.33 2.33 2.32 2.33 629000 1462610 LOPEZ HLDG LT GROUP 7.55 7.73 7.44 7.73 7.4 7.73 637300 4835201 0.475 0.49 0.455 0.5 0.455 0.49 1094000 499120 MABUHAY HLDG METRO PAC INV 3.25 3.26 3.25 3.31 3.24 3.26 18508000 60706820 PACIFICA HLDG 2.84 3 2.82 3 2.82 3 1888000 5325240 0.72 0.76 0.72 0.77 0.72 0.77 7000 5210 PRIME MEDIA SOLID GROUP 0.98 1 0.97 1 0.96 1 23000 22210 854 862 850.5 865 835 862 227790 193224790 SM INVESTMENTS 98.9 99 98.9 99 97.1 98.9 58650 5792783 SAN MIGUEL CORP SOC RESOURCES 0.65 0.7 0.65 0.7 0.65 0.65 299000 205390 1.82 1.97 1.82 1.82 1.81 1.81 6000 10870 SEAFRONT RES TOP FRONTIER 123.6 128 124 128 124 128 4030 515720 WELLEX INDUS 0.188 0.201 0.201 0.201 0.201 0.201 10000 2010 0.147 0.151 0.152 0.152 0.151 0.151 100000 15190 ZEUS HLDG
-231500 8228 -5797805 5128835 -44766147 358100 -590040 310920 -18591904 -37700 -20768730.5 -511140 1172596 -22979150 -40888210 134916 -6400 -
PROPERTY ARTHALAND CORP 0.52 0.53 0.5 0.53 0.5 0.53 508000 258910 8.11 8.2 8.2 8.2 8.2 8.2 800 6560 ANCHOR LAND AYALA LAND 32.6 33.2 32.2 33.2 32 33.2 2919000 95733245 0.98 0.99 0.98 1.05 0.98 0.99 36000 35490 ARANETA PROP BELLE CORP 1.38 1.39 1.37 1.39 1.37 1.39 114000 157390 A BROWN 0.8 0.81 0.77 0.81 0.77 0.8 4479000 3535220 0.74 0.77 0.76 0.76 0.76 0.76 20000 15200 CITYLAND DEVT CROWN EQUITIES 0.121 0.124 0.117 0.124 0.117 0.124 2200000 263610 4.98 5 5 5 4.97 5 867100 4330131 CEB LANDMASTERS 0.35 0.355 0.36 0.36 0.35 0.355 2020000 709500 CENTURY PROP CYBER BAY 0.255 0.265 0.245 0.265 0.245 0.265 81070000 20681000 15.96 16 16 16.02 15.94 16 242400 3875622 DOUBLEDRAGON DM WENCESLAO 6.07 6.1 6.15 6.15 6.1 6.1 12000 73560 0.27 0.275 0.248 0.275 0.248 0.27 231440000 57914410 EMPIRE EAST 0.091 0.098 0.09 0.1 0.09 0.098 1320000 130880 EVER GOTESCO FILINVEST LAND 0.88 0.89 0.87 0.89 0.86 0.88 38109000 33227240 0.79 0.8 0.81 0.81 0.81 0.81 48000 38880 GLOBAL ESTATE 8.01 8.08 8.14 8.14 8.03 8.12 31200 251854 8990 HLDG PHIL INFRADEV 0.9 0.91 0.9 0.93 0.88 0.9 1740000 1572040 0.68 0.72 0.68 0.68 0.68 0.68 6000 4080 CITY AND LAND MEGAWORLD 3 3.01 2.94 3.02 2.94 3 4004000 12010790 MRC ALLIED 0.239 0.24 0.244 0.246 0.236 0.239 27840000 6698420 0.3 0.33 0.3 0.3 0.3 0.3 100000 30000 PHIL ESTATES PRIMEX CORP 1.29 1.3 1.26 1.37 1.26 1.3 25653000 32796460 14.2 14.22 13.86 14.26 13.7 14.2 2793600 39168828 ROBINSONS LAND 0.225 0.233 0.222 0.233 0.222 0.233 14520000 3238390 PHIL REALTY ROCKWELL 1.51 1.58 1.5 1.58 1.5 1.58 68000 102800 2.7 2.72 2.72 2.72 2.72 2.72 36000 97920 SHANG PROP STA LUCIA LAND 1.81 1.85 1.8 1.85 1.8 1.85 6000 10950 29.65 29.7 29.2 29.85 29.2 29.7 2388600 70918810 SM PRIME HLDG 3.75 3.83 3.89 3.9 3.74 3.75 113000 428340 VISTAMALLS SUNTRUST HOME 1.14 1.15 1.13 1.17 1.11 1.15 730000 828480 3.16 3.18 3.08 3.19 3.07 3.16 2696000 8462180 VISTA LAND
-13606955 -37260 183300 15200 41300 6000 -3600 -2088030 -2990030 -155600 -3206530 -4000 -7211100 97920 30946380 152760
SERVICES ABS CBN 7.66 7.67 7.65 7.98 7.65 7.67 361600 2805124 5 5.01 4.95 5.02 4.95 5.01 918000 4573800 GMA NETWORK MANILA BULLETIN 0.395 0.405 0.415 0.415 0.4 0.4 1130000 454900 2146 2200 2110 2200 2110 2200 38720 83462970 GLOBE TELECOM PLDT 1389 1395 1398 1400 1385 1389 154525 214690020 APOLLO GLOBAL 0.05 0.051 0.05 0.051 0.049 0.051 7310000 364600 2.81 2.9 2.85 2.85 2.85 2.85 1000 2850 DFNN INC DITO CME HLDG 2.97 2.98 2.8 2.97 2.78 2.97 31283000 91,171,190( 1.6 1.63 1.62 1.65 1.59 1.6 46000 74040 JACKSTONES 2.1 2.11 2.07 2.14 2.02 2.1 9591000 20074620 NOW CORP TRANSPACIFIC BR 0.173 0.174 0.172 0.177 0.171 0.173 4570000 798310 1.93 1.94 1.91 1.97 1.89 1.94 447000 862650 PHILWEB 2GO GROUP 8.47 8.54 8.4 8.56 8.4 8.54 17300 147453 3.3 3.34 3.33 3.36 3.3 3.3 415000 1378210 CHELSEA 37.4 37.5 37.6 38 36.75 37.5 71400 2664850 CEBU AIR INTL CONTAINER 104.6 105.9 103.1 105.9 102.4 105.9 1179770 123704827 14.6 15.5 14.22 15.8 14.22 15.5 70400 1022602 LBC EXPRESS 0.72 0.75 0.72 0.72 0.72 0.72 6000 4320 LORENZO SHIPPNG MACROASIA 5.59 5.6 5.5 5.66 5.45 5.6 6215500 34548624 1.69 1.7 1.65 1.72 1.64 1.69 417000 700170 METROALLIANCE A PAL HLDG 5.89 5.9 5.92 5.92 5.88 5.88 66500 391468 0.77 0.78 0.77 0.77 0.74 0.77 36000 27000 HARBOR STAR 0.033 0.034 0.034 0.035 0.032 0.033 94500000 3170200 BOULEVARD HLDG DISCOVERY WORLD 1.55 1.6 1.55 1.55 1.55 1.55 10000 15500 0.385 0.39 0.385 0.385 0.385 0.385 310000 119350 WATERFRONT 551.5 605 580 605 580 605 30 17900 FAR EASTERN U IPEOPLE 7.18 8.48 7.2 7.2 7.18 7.18 2400 17260 0.295 0.3 0.295 0.3 0.295 0.295 470000 139250 STI HLDG BERJAYA 2.11 2.16 2.1 2.17 2.1 2.16 30000 63490 BLOOMBERRY 6.12 6.13 6.34 6.34 6.11 6.13 3688100 22654510 2.01 2.05 2.07 2.1 1.98 2.05 84000 169340 PACIFIC ONLINE LEISURE AND RES 1.23 1.28 1.25 1.29 1.25 1.28 50000 63260 2.16 2.22 2.16 2.22 2.16 2.22 9000 19740 MANILA JOCKEY 2.06 2.15 2.18 2.18 2.14 2.14 17000 36990 PH RESORTS GRP PREMIUM LEISURE 0.295 0.3 0.29 0.3 0.285 0.3 2960000 867200 6.36 6.38 6.39 6.44 6.2 6.38 1559100 9915451 ALLHOME METRO RETAIL 1.47 1.49 1.43 1.49 1.42 1.47 667000 977000 PUREGOLD 49.8 50 49.35 50 48.1 50 3633500 179089085 58.4 58.5 59 59 58.25 58.4 562100 32808766 ROBINSONS RTL PHIL SEVEN CORP 120.7 125 125 125 125 125 52090 6511250 1.02 1.04 1.02 1.07 1.02 1.03 2521000 2609010 SSI GROUP 15.1 15.24 15.24 15.3 14.88 15.24 705400 10741304 WILCON DEPOT APC GROUP 0.305 0.31 0.3 0.34 0.3 0.305 78610000 23744900 6.1 6.35 6.04 6.35 6.03 6.1 6900 42283 EASYCALL GOLDEN BRIA 281.2 289.8 281.2 289.8 281.2 289 130 37204 4.11 4.79 4.5 4.5 4.5 4.5 1000 4500 IPM HLDG 0.234 0.236 0.228 0.238 0.228 0.236 13540000 3168480 PRMIERE HORIZON
-15826230 -113809205 1,520,939.9997) 308430 58200 -713210 -2780558 1323713 -3000 -16800 -5655668 -1117553 485910 -72532010 -27385233.5 51250 -1093020 -3803996 -93260
MINING & OIL ATOK 7.9 8.09 8.08 8.08 7.62 8.08 1800 14268 APEX MINING 1.73 1.74 1.75 1.75 1.7 1.73 11993000 20690040 -393220 0.0011 0.0012 0.0009 0.0013 0.0008 0.0011 73267000000 64543300 71400 ABRA MINING ATLAS MINING 2.67 2.75 2.71 2.71 2.64 2.68 665000 1767620 146470 BENGUET A 2.15 2.3 2.14 2.35 2.12 2.3 285000 635850 2.13 2.25 2.21 2.3 2.08 2.28 22000 48760 BENGUET B COAL ASIA HLDG 0.197 0.202 0.195 0.202 0.192 0.202 270000 53850 2.61 2.67 2.6 2.69 2.6 2.67 5017000 13075230 534000 CENTURY PEAK 7.96 7.99 7.82 8 7.71 7.99 45600 362719 DIZON MINES FERRONICKEL 1.15 1.16 1.13 1.18 1.12 1.15 17039000 19692020 550889.9999 0.238 0.242 0.243 0.243 0.237 0.238 420000 100000 GEOGRACE LEPANTO A 0.159 0.16 0.156 0.159 0.151 0.159 43580000 6789120 0.157 0.16 0.156 0.16 0.154 0.16 2780000 433560 LEPANTO B 0.01 0.011 0.011 0.012 0.01 0.011 1329200000 14123800 MANILA MINING A MANILA MINING B 0.011 0.012 0.01 0.012 0.01 0.012 198300000 2317000 0.97 0.98 1.01 1.02 0.93 0.97 7945000 7743850 MARCVENTURES 1.74 1.75 1.76 1.79 1.73 1.74 1696000 2960200 NIHAO NICKEL ASIA 3.03 3.04 3.02 3.12 2.96 3.03 50229000 152106150 -5677000 0.395 0.41 0.39 0.425 0.39 0.41 41390000 16167850 OMICO CORP ORNTL PENINSULA 0.61 0.63 0.65 0.65 0.61 0.63 1841000 1153560 3.62 3.63 3.55 3.68 3.55 3.63 31923000 115590180 -5201480 PX MINING 9.4 9.42 9.5 9.6 9 9.4 11131100 104732925 -18141964 SEMIRARA MINING UNITED PARAGON 0.0059 0.006 0.0056 0.0061 0.0056 0.0059 2067000000 11630100 72000 5.8 6 5.74 6 5.74 6 9000 52169 -8700 ACE ENEXOR 0.0088 0.009 0.0083 0.0093 0.0083 0.0092 151000000 1274500 ORNTL PETROL A ORNTL PETROL B 0.0085 0.0092 0.0092 0.0092 0.0082 0.0082 16000000 139200 0.0098 0.01 0.0094 0.01 0.0079 0.0099 4307000000 40910100 7800 PHILODRILL PXP ENERGY 5.52 5.54 5.55 5.6 5.43 5.51 732100 4039868 -299790 PREFFERED AC PREF B1 507 519 508 509 508 509 50 25420 506.5 518 506.5 506.5 506.5 506.5 10 5065 AC PREF B2R CPG PREF A 100.7 101 101 101 100.1 100.1 24040 2425090 104.2 106 104 104 104 104 30 3120 FGEN PREF G GLO PREF P 510 517 510 510 510 510 140 71400 -71400 MWIDE PREF 100.5 101.5 100.5 100.5 100.5 100.5 10 1005 100.6 102 102 102 102 102 100 10200 PNX PREF 3A PNX PREF 3B 106 107.9 108 108 108 108 500 54000 1010 1015 1014 1014 1010 1010 1000 1011440 PNX PREF 4 1056 1060 1060 1060 1056 1059 5600 5929600 PCOR PREF 3A PCOR PREF 3B 1090 1105 1090 1090 1090 1090 10 10900 1.4 1.6 1.4 1.4 1.4 1.4 25000 35000 SFI PREF SMC PREF 2C 78.25 78.5 78.1 78.1 78.1 78.1 110 8591 75.3 75.6 75.25 75.3 75.25 75.3 29070 2188836 SMC PREF 2D 75.55 76.5 75.55 75.55 75.55 75.55 70000 5288500 SMC PREF 2E SMC PREF 2F 77.1 78.8 77.1 78 77 77.1 42200 3275550 75.65 76.95 75.75 75.75 75.55 75.55 53400 4037318 SMC PREF 2G 78.3 79 78.3 78.3 78.3 78.3 36300 2842290 SMC PREF 2I PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 7.1 7.15 7.15 7.3 7.02 7.1 167000 1183704 -146168 4.55 4.59 4.55 4.6 4.55 4.55 465000 2,117,300( 1,788,279.9997) GMA HLDG PDR WARRANTS LR WARRANT 0.63 0.65 0.62 0.65 0.62 0.63 20000 12750 SMALL & MEDIUM ENTERPRISES ALTUS PROP 13.22 13.3 12.62 13.4 12.56 13.3 918300 12018226 -1904 1.85 1.88 1.85 1.9 1.84 1.85 1445000 2689920 55970 ITALPINAS KEPWEALTH 5.13 5.2 5.1 5.2 5.1 5.2 42100 216233 2.9 2.91 2.88 2.94 2.86 2.9 29011000 84201720 -2379240 MERRYMART XURPAS 0.56 0.57 0.57 0.58 0.56 0.57 575000 323930 EXHANGE TRADE FUNDS FIRST METRO ETF 89.75 90 90.45 90.45 89.1 89.5 11810 1059145 936
www.businessmirror.com.ph
Weak performance of units drags down DMCI income
E
By VG Cabuag
@villygc
ngineering conglomerate DMCI Holdings Inc., the holding firm of the Consunji group, said its income in the first half fell 69 percent to P2 billion, from last year’s P6.5 billion, as most of its subsidiaries registered a decline in profits. For the second quarter alone, the company said its income fell 62 percent to P1.4 billion, from last year’s P3.7 billion. “Most of our businesses showed resilience during the lockdown period since they belong to essential industries like power, mining and water distribution,” DMCI Holdings Chairman and President Isidro A. Consunji said.
“Semirara [Mining], DMCI Power, DMCI Mining and Maynilad remained profitable in the first and second quarters. Unfortunately, we were severely affected by low market prices.” Excluding non-recurring items, core net income in the second quarter slipped 59 percent to P1.6 billion from P3.9 billion, bringing core net income from the January-to-June
period to P2.6 billion, a 61-percent drop from last year’s P6.7 billion. It said the first half core net income contributions from Semirara Mining and Power Corp. dropped 64 percent to P1.3 billion, from P3.5 billion last year as coal sales and average selling price dropped 27 percent and 21 percent, respectively. Its power segment also sustained sharp declines with electricity sales and average selling price falling 10 percent and 32 percent, respectively. Property developer DMCI Homes contributed core earnings of P38 million to the parent company, a 97-percent plunge from P1.2 billion last year as quarantine restrictions dragged down construction accomplishments and consequently, revenue recognition. Earnings from D.M. Consunji Inc., the construction firm, fell 79 percent to P92 million, from last year’s P440 million, as the 76-day lockdown and staggered workforce build-up affected productivity and
revenue recognition. Off-grid energy supplier DMCI Power contributed P256 million, a 10-percent jump from P233 million last year. Higher energy sales in Palawan and lower fuel costs accounted for the growth. Attributable net income from DMCI Mining improved 6 percent to P184 million, from P173 million on the back of a 25-percent increase in nickel ore exports. Net income contributions from affiliate Maynilad Water Services Inc. fell 24 percent to P847 million, from the previous year’s P1.1 billion mainly due to the sharp drop in commercial and industrial sales volume during the lockdown. Higher depreciation and amortization for its capital expenditure program also contributed to the decline. The parent firm and others booked P57 million in losses during the first half compared to P126 million last year due to lower interest income.
Axa weighs sale of Singapore business A
xa SA is considering a sale of its Singapore business as it seeks to raise funds divesting peripheral operations, according to people familiar with the matter. The French insurer is working with an adviser on the potential sale, the people said, asking not to be identified because the matter is private. The Singapore unit, which offers life and property and casualty insurance, could draw interest from rivals seeking to expand in Southeast Asia, the people said. It generated 615 million euros ($723 million) of revenue in 2019, according to Axa’s annual report. A sale process could start as soon as the next few weeks, the people said. No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said. A representative for Paris-based Axa declined to comment. Axa and a local partner are also considering a potential sale of their life and general insurance venture in Malaysia, which could fetch about $650 million, Bloomberg News re-
ported last year. Axa said this month that an agreement it struck to sell its Axa Life Europe business to Cinven had been terminated after certain conditions weren’t met. Chief Executive Officer Thomas Buberl is trying to shift Axa’s focus on property and casualty insurance following its $15.3 billion purchase of XL Group Ltd. in 2018. Since then, the CEO has been reviewing options for smaller businesses across the world, including in the Middle East, to help pay for the XL deal. Profit at Axa sank in the first half as it booked a 1.5 billion-euro charge for claims related to Covid-19. Axa also warned of further shocks from the pandemic, scrapped growth targets and canceled a payout to shareholders. Dealmaking in the insurance industry has remained resilient amid a slowdown in broader mergers and acquisitions activity amid the coronavirus pandemic. Insurers have been involved in $99 billion of acquisitions this year, up 77 percent from the same period in 2019, according to data compiled by Bloomberg. Bloomberg News
US stock futures rise after S&P 500 ended week near record
U
nited States stock futures edged higher, adding to an advance that left the S&P 500 on the brink of a record high, a day after President Donald Trump moved to extend special unemployment benefits even as the fate of further stimulus remained in doubt. September contracts on the S&P 500 were up 0.3 percent as of 2:40 p.m. in Tokyo. The index closed Friday about 1 percent away from its all-time high reached in February. Futures on the Nasdaq 100 were little changed. The modest moves suggest “that the market doesn’t view the president’s executive action as the solution to cushioning the economy,” said Quincy Krosby, chief market strategist for Prudential Financial. “Expectations are that both sides of the aisle will continue the wrangling that have become associated with negotiations surrounding fiscal help.” Rallies in five of the last six weeks have lifted the benchmark gauge for American equities almost 50% above the low it reached on March 23 during the coronavirus panic. While gains exceeding 60 percent in consumer discretionary, technology and commodity companies have led the advance, every major industry in the index has participated. The rebound has been aided by trillions of dollars in government and Federal Reserve stimulus, huge jumps in companies perceived as
benefiting from the stay-at-home economy, and increased buying by individual investors. “Positive momentum begets positive momentum, and that’s all we’re experiencing right now,” said Phil Toews, chief executive officer of asset manager Toews Corp. “It’s the stance of the Fed, it’s the fact we are in a trend and there’s positive momentum and there’s nowhere else to invest.” Equity markets have stayed buoyant despite the worst economic data in a generation. While Friday’s U.S. jobless report was slightly better than analysts had forecast, the unemployment rate remains above 10 percent. On Sunday, economists at Goldman Sachs Group Inc. revised higher their estimates for the US economy in 2021 on the back of stronger consumer spending but left forecasts unchanged for this year. They expect US GDP growth of 6.2 percent on an annualized basis versus a previous projection of 5.6 percent. The team, led by chief US economist Jan Hatzius, sees the unemployment rate declining to 6.5 percent by the end of 2021. Trump announced four executive actions on Saturday, including a temporary payroll tax deferral for some workers and continued expanded unemployment benefits, as the coronavirus pandemic continues to hobble the US economy. Bloomberg News
mutual funds
August 10, 2020
NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 192.69 -26.2% -11.25% -6.32% -23.49% ATRAM Alpha Opportunity Fund, Inc. -a 1.0098 -37.78% -13.71% -6.47% -26.93% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.574 -37.02% -15.95% -9.04% -30.02% Climbs Share Capital Equity Investment Fund Corp. -a 0.6628 -30.47% -13.01% n.a. -26.19% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6621 -23.69% n.a. n.a. -22.04% First Metro Save and Learn Equity Fund,Inc. -a 4.1393 -23.86% -9.54% -6.06% -22.31% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.6484 -25.75% -12% n.a. -24.04% MBG Equity Investment Fund, Inc. -a 77.36 -35.41% n.a. n.a. -25.06% PAMI Equity Index Fund, Inc. -a 38.5525 -26.04% -9.96% -5.29% -24.82% Philam Strategic Growth Fund, Inc. -a 415.97 -23.74% -9.04% -5.38% -21.92% Philequity Alpha One Fund, Inc. -a,d,5 0.8625 n.a. n.a. n.a. -16.27% Philequity Dividend Yield Fund, Inc. -a 0.9845 -25.54% -9.34% -5.05% -23.5% Philequity Fund, Inc. -a 28.8746 -25.49% -8.97% -4.79% -23.81% Philequity MSCI Philippine Index Fund, Inc. -a 0.7659 -25.96% n.a. n.a. -24.77% Philequity PSE Index Fund Inc. -a 3.9231 -25.85% -9.5% -4.66% -24.9% Philippine Stock Index Fund Corp. -a 657.64 -25.57% -9.43% -4.82% -24.58% Soldivo Strategic Growth Fund, Inc. -a 0.5916 -36.49% -13.46% -8.88% -30.51% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.0432 -29.95% -10.79% -5.98% -27.7% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.7537 -25.77% -9.62% -4.81% -24.69% United Fund, Inc. -a 2.773 -25.58% -8.24% -4.22% -24.09% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 88.2806 -25.4% -8.97% -4.01% -24.52% Primarily invested in foreign currency securities ATRAM AsiaPlus Equity Fund, Inc. -b $1.0686 15.86% 0.79% 2.31% 3.91% Sun Life Prosperity World Voyager Fund, Inc. -a $1.4993 18.84% 8.08% n.a. 8.75% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.5708 -9.19% -4.24% -3.5% 0.51% ATRAM Philippine Balanced Fund, Inc. -a 2.0307 -12.93% -5.08% -2.39% -6.9% First Metro Save and Learn Balanced Fund Inc. -a 2.3756 -10.86% -3.64% -3.46% -9.72% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.182 n.a. n.a. n.a. -20.35% NCM Mutual Fund of the Phils., Inc. -a 1.8183 -7.08% -1.75% -0.69% -7.31% PAMI Horizon Fund, Inc. -a 3.4512 -9.39% -2.82% -1.81% -8.92% Philam Fund, Inc. -a 15.371 -10.01% -3.14% -2.01% -9.37% Solidaritas Fund, Inc. -a 1.8877 -12.19% -4.46% -1.98% -11.05% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.2179 -17.8% -5.53% -3.31% -16.71% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9296 -9.39% n.a. n.a. -8.48% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.8242 -18.84% n.a. n.a. -17.28% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.7963 -21.32% n.a. n.a. -19.82% Sun Life Prosperity Dynamic Fund, Inc. -a 0.7931 -21.08% -6.56% -4.42% -18.64% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.0397 3.82% 3.49% 2.24% 3.93% PAMI Asia Balanced Fund, Inc. -b $1.0527 9.97% 1.36% 2.49% 4.02% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $4.1257 11.36% 5.76% 4.81% 5.5% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.1672 5.68% 3.23% n.a. 3.41% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 367.69 4.19% 3.19% 2.58% 2.72% ATRAM Corporate Bond Fund, Inc. -a 1.9475 2.05% 0.93% -0.06% 2.39% Cocolife Fixed Income Fund, Inc. -a 3.1982 4.48% 5% 5.04% 2.58% Ekklesia Mutual Fund Inc. -a 2.3119 4.26% 3.22% 2.39% 3.98% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4633 4.97% 3.64% 2.08% 4.42% Philam Bond Fund, Inc. -a 4.6932 9.17% 4.85% 2.79% 7.32% Philam Managed Income Fund, Inc. -a,6 1.3063 5.68% 4.29% 2.39% 3.95% Philequity Peso Bond Fund, Inc. -a 3.9667 6.53% 4.38% 2.36% 4.71% Soldivo Bond Fund, Inc. -a 1.0388 8.97% 3.83% 1.86% 7.73% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1857 5.43% 4.94% 2.84% 3.58% Sun Life Prosperity GS Fund, Inc. -a 1.7528 4.46% 4.39% 2.37% 3.04% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $478.85 3.73% 2.65% 2.83% 2.24% ALFM Euro Bond Fund, Inc. -a Є216.94 -1.21% 0.7% 1.07% -1.3% 3.4% 2.81% 3.33% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2474 4.74% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0266 3.1% 2.23% 1.74% 3.1% PAMI Global Bond Fund, Inc -b $1.0997 0.17% 0.64% 0.82% 0.56% Philam Dollar Bond Fund, Inc. -a $2.5247 5.74% 4.16% 3.56% 5.04% Philequity Dollar Income Fund Inc. -a $0.0611303 2.22% 2.17% 1.95% 1.38% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.263 3.84% 2.63% 2.82% 2.77% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 128.66 3.55% 3.27% 2.48% 2.25% First Metro Save and Learn Money Market Fund, Inc. -a 1.0435 2.36% n.a. n.a. 1.68% 2.91% 3.03% 2.6% 1.7% Sun Life Prosperity Money Market Fund, Inc. -a 1.2865 Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0468 1.6% n.a. n.a. 0.82% Feeder Funds Primarily invested in Peso securities Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a,d,7 1.021 n.a. n.a. n.a. n.a. Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.95 n.a. n.a. n.a. -4.04% 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 September 28, 2019. 2 - Launch date is November 15, 2019. 3 - Adjusted due to stock dividend issuance last October 9, 2019. 4 - Renaming was approved by the SEC last October 12, 2018 (formerly, One Wealthy Nation Fund, Inc.). 5 - Launch date is December 09, 2019. 6 - Re-classified into a Bond Fund starting February 21, 2020 (Formerly a Money Market Fund). 7 - Launch date is July 6, 2020. "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."
Banking&Finance BusinessMirror
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Longer tenor T-bills lure investors amid recession By Bernadette D. Nicolas @BNicolasBM
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he Bureau of the Treasury (BTr) raised another P20 billion in Treasury Bills (T-bills) on Monday as investors continue to park their funds on government securities even after the record sale of P516.3-billion five-year Retail Treasury Bonds (RTBs). The auction was oversubscribed with total bids, reaching P60.2 billion, more than thrice the P20 billion-offer. Rates across all tenors were also lower than the previous auction as well as secondary market benchmark rates. Following the auction, National Treasurer Rosalia V. De Leon told reporters there is “continued strong buying interest on [the] front-end of curve at lower rates amidst RTB record issuance.” De Leon said they also decided to offer another P5 billion in 364-day T-bills through the tap facility auction for all 11 government securities eligible dealers-market makers. This after strong demand for the tenor was seen as it attracted tenders of as much as P26.285 billion, more than twice the P10-billion offer. The security also fetched an average rate of 1.746 percent, slipping by 0.3 basis points from the previous average rate of 1.749 percent. Meanwhile, total bids for the 182-day T-bills reached P17.078 billion, more than three times the P5-billion offering. Its average rate slid to 1.386 percent, a 6.8 basis-point drop from 1.454 percent previously. Lastly, the tenders for the 91-day T-bills amounted to P16.935 billion, three times as much as the P5-billion offer. The tenor’s average rate settled at 1.113 percent, plunging by 10.8 basis points from 1.221 percent in the previous auction. For this month, the Treasury is set to borrow P170 billion from the local debt market. Last Friday, the Treasury closed the 3-week offer period for its 24th RTB issuance that started on July 16. De Leon said strong market liquidity conditions propelled the healthy demand for the RTBs during lockdown measures against the Covid-19 pandemic. Of the P516.3 billion, P488.5 billion in new money was raised while the remaining P27.8 billion was raised from the switch tender offer. Proceeds from the RTB issuance will be used by the government for its budgetary support. Aside from strong market liquidity conditions, the Treasury said the Bonds.PH mobile application (app) also enabled the success of the RTB issuance. The app reached almost 25,000 downloads from 85 countries and around 80 percent of more than 2,500 transactions through the app are P10,000 and below. “Market liquidity, great timing and our attractive interest rate were the drivers of success for this year’s offering of RTBs. As our economy expands and more people become financially capable to save, it is rewarding for the BTr to see a wider set of the public put their trust in our almost annual fund-raising exercise,” De Leon said. To note, the economy contracted in the second quarter and brought it to a technical recession. RTBs are generally considered low risk for investors as these allow them to earn on a fixed interest based on prevailing market rates.
House committee approves bill giving incentives to GFIs By Jovee Marie N. dela Cruz
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Albay Rep. Joey Sarte Salceda said committee members approved the Guide bill to strengthen the capacity of GFIs by providing incentives and exemptions to Philippine Guarantee Corp. (PGC), LandBank of the Philippines (LBP) and Development Bank of the Philippines (DBP). The same perks are also sought for the special holding company that will be created through the measure the committee dubbed as the “Accelerate Recovery to Intensify Solidarity and Equity,” or Arise, Inc. Salceda said the proposal also authorizes additional funding to be utilized by the PGC, LBP and DBP in undertaking their expanded roles of credit-refinancing under the proposed Guide Act. “The programs that [the] Guide [Act] will authorize and enable [seek] to encourage distressed enterprises to continue operations and to maintain employment levels,” Salceda said. “The refinancing and equity rescue portions of [the] Guide [Act] are critical to economic recovery.” Under the substitute bill, transactions of the DBP, LBP and special holding company and its subsidiaries shall be exempt from the following: documentary stamp tax; capital gains tax; creditable withholding income tax; value-added tax; gross receipts tax; and, other taxes that may be imposed under Republic Act 8424 (National Internal Revenue Code of 1997 as amended), whichever is applicable pursuant to the regulations to be issued by the Department of Finance, upon the recommendation of the Bureau of Internal Revenue. Moreover, Salceda said the creation of the holding company will infuse equity “under strict conditions” to strategic enterprises and make more loans available to micro-, small- and medium-scale enterprises (MSMEs). According to Salceda, the proposed Guide Act “was the culmination of our work on structural credit reforms, starting with what I then proposed to be the National Emergency Investment Corp., which became the Arise Inc. under this proposal.” The lawmaker was referring to the holding company for “too-big-to-fail” enterprises that he proposed created in his stimulus proposals last March. “When my office was studying the core ideas that became [the] Guide [Act], we wanted to ensure that no strategic enterprise would go bankrupt. Many businesses—either by their size or by their relationship with other enterprises—are systemically important; and their
Y
How the life insurance for children works
There are two basic forms of coverage for kids. First is whole life or VUL (variable universal life) insurance, and the second is term life insurance. Most parents and grandparents select whole life or VULs to provide permanent coverage for their kid. It means that a child will have insurance for the whole life, and the sum of the coverage will increase as time passes by. When a kid reaches for adulthood, a parent or grandparent is allowed to give the ownership of the coverage. On the other hand, term life insurance coverage works for the chosen period and may last for ten or more years—it’s up to you. Parents may pay some extra sum to prolong the existing insurance for their kid. This cover-
Fitz Gerard Villafuerte
personal finance age costs less than the one that covers the entire life.
To buy or not to buy
@joveemarie
he House Committee on Ways and Means on Monday approved the tax exemptions of government financial institutions under the proposed “GFIs Unified Initiatives to Distressed Enterprises for Economic Recovery,” or Guide, Act.
Life insurance for children: Pros and cons of buying one
ou probably heard from an insurance agent that you need to buy life insurance for your child. Getting life insurance for your kids has advantages and disadvantages. Buying life insurance for children has become a debated issue in financial circles. Those who are for it assure parents and grandparents that thinking of coverage is a wise thing to do. They say that it improves children’s insurability and the chance to buy more such insurances in future. And, of course, it’s a nice move to save the family’s budget if any unfortunate incident happens to the child. However, financial advisors who are against it insist that the value of such documents is often overstated. They think that it’s wiser to instead use the money to prepare for emergencies and invest for financial goals first, before purchasing life insurance policies for their child.
Tuesday, August 11, 2020 B3
Below are some statements related to this issue, and the corresponding arguments of those who are FOR and AGAINST buying life insurance for children. The insurance may cover expenses connected with the funeral. For: In case a child dies, the coverage includes medical bills, funeral money waste, and supportive sums that help the family to live in case parents had to leave their jobs for some time; Against: The percentage of children’s deaths is too small, and it’s better to think of building an emergency fund instead, than life insurance. And getting a memorial plan is a more affordable tool to cover funeral expenses. The early insurance multiples the chance to get more policies in future. For: A kid might get an illness or medical problem later on that will restrict them from getting life insurance, especially when they become an adult. This is why many parents try to buy coverage now. Moreover, they’ll need to buy an insurance policy in future for their own family’s financial security, so why not buy when it’s most affordable. Against: There’s a low percentage of chances that an adult person
is restricted to have coverage due to medical or health reasons. The family’s medical history should provide insights if it’s truly needed. There’s an investment or moneysaving option that may be used later. For: There can be cash value in the insurance that grows in value through the years. This can be taken from the policy in the future to fund their college education, or other pertinent needs. Against: There are better ways to grow your money. You can invest money directly and avoid spending on insurance premiums altogether for your child. The money going to paying the insurance can instead be used as funds for the child’s present needs and a portion towards investments that will be spent on college expenses, which can just be directly invested in the stock market or mutual funds.
What should you consider before buying the insurance?
First of all, you have to explore your budget and find out if there’s enough money to cover more important risks. Talking to a financial advisor who’s not connected with an insurance company will be beneficial to get an objective advice. Buying life insurance is a means to reduce financial risks and losses. It’s necessary for the parents to have coverage. However, getting a policy for your child is optional and solely depends on the family’s circumstances.
Fitz Villafuerte is registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 84th RFP program this August 2020. To inquire, e-mail info@rfp.ph or text <name><e-mail> <RFP> at 0917-9689774.
closure carries systemic risks,” Salceda explained. “That’s why it is important that we establish a national emergency investment vehicle.” However, Salceda said parts of the proposed Guide Act, particularly additional funding for the GFIs, are already incorporated in the Bayanihan to Recovery as One bill. Salceda said that two weeks ago, he recommended to the Speaker via an aide memoire, “that we just incorporate Guide provisions in the Bayanihan to Recovery as One bill.” “That was adopted by the House leadership. We heard the substitute bill to Guide still, as a matter of the committee’s regular practice,” the lawmaker said. “This also manifests that we fully support the provisions in the proposal.” By approving the substitute bill, Salceda said the committee manifests its clear support for the Guide Act’s elements incorporated in the Bayanihan package.
Loss of competition?
Meanwhile, former Philippine Competition Commission (PCC) commissioner and now Marikina Rep. Stella Luz A. Quimbo expressed concerns on the provision under the proposed law exempting all mergers and acquisitions undertaken by Arise Inc. from PCC scrutiny.
“This poses the risk of anti-competitive behavior,” Quimbo said. “An Arise-owned company can end up with undue competitive advantage simply because it is state-owned.” She cited as an example that the company can avail of government loans and guarantees with greater ease compared to its private sector competitors. “They can also be exempt from regulatory fees and other requirements, even payment of taxes,” Quimbo added. According to her, this “loss of competition will ultimately harm consumers “because this state-owned dominant firm can end up providing more expensive goods and services yet with poorer quality.” “That has been our constant experience with state-owned corporations. Thus, I object to completely exempting Arise Inc from the jurisdiction of the PCC,” Quimbo said. If the intention of the Guide Act is to ensure that swift action can be taken to rescue distressed firms, Quimbo said the PCC should continue to have the power to conduct a motu proprio review of the holding firm’s transactions and can fully enforce Section 14 on anti-competitive agreements and Section 15 on abuse of dominance of the Philippine Competition Act against any of the Arise-acquired entities or holdings. “While the interventions proposed under [the proposed] Guide [Act] seek to promote accelerated economic recovery and, thus, are laudable, the additional funds proposed for LBP, DBP and PGC for purposes of helping MSMEs during the pandemic is best done under a singular and comprehensive economic stimulus package,” she said. “This way, Congress can do a proper monitoring of all interventions, from loan programs, unemployment assistance, subsidies for critically impacted sectors, regulatory relief, to infrastructure,” Quimbo explained. “Having a singular platform that will address the most important economic concern today which is the unprecedented level of unemployment is needed to boost confidence. Without confidence of businesses especially the MSMEs, no one will take out the loans anyway.”
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Art
BusinessMirror
Tuesday, August 11, 2020
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Today’s Horoscope By Eugenia Last
z
CELEBRITIES BORN ON THIS DAY: Alyson Stoner, 27; Chris Hemsworth, 37; Ben Gibbard, 44; Hulk Hogan, 67. Happy Birthday: Focus on what you can do this year. Put your time, thoughts and energy into learning, preparing and modifying whatever needs an update to fit into the life you are trying to create for yourself. Changes shouldn’t be drastic this year. Ease into the adjustments you feel are most likely to help you reach your goal. Your numbers are 5, 12, 23, 28, 32, 41, 47.
a
ARIES (March 21-April 19): Channel your energy into work, getting along with your peers and rethinking some of the decisions that are causing uncertainty. Get back to basics, and don’t hesitate to ask for a favor if it pertains to work and advancement. HHH
b
TAURUS (April 20-May 20): Set high standards, and put your energy into projects that make you feel passionate. Pull in people who stimulate your creative imagination and encourage you to explore new territory. Don’t let trivial matters set you off. Make peace and love priorities. HHH
c Mask Off 3, Maverick Abac, oil on canvas, 18” x 24”
Maybe, Happy, Baby Evil, acrylic on canvas, 6” x 9”
The bright and the black in three polarities M
Rough Rides, Reybert Ramos, acrylic and graphite on canvas, 48” x 36”
ARKETERS and trend forecasters painted a clear day’s picture in projecting the future of Generation Z, or those born between 1995 and 2010. They said these true digital natives, characterized by innate technological savvy and competitiveness, were primed to make the most of a to-be inherited strong economy and record-low unemployment. The bright outlook, of course, has now been wiped out by a devastating pandemic, where a murky present makes it impossible to peer even into the near future. Amid the uncertainty, some of the young generation’s most promising artists render their thoughts on this crucial moment, or turning point, in an ongoing group exhibition by Galerie Stephanie at Shangri-La Plaza. Titled Visions at the Turn, the exhibit opened over the weekend and features the works of Gen Z artists Maverick Abac, Gelo Cinco, DanCho, Georgina Pomarejos and Xjin. The group is mentored by artist and educator Anton del Castillo. Abac and Xjin present characters donning PPEs in highly textured oiled-on-canvas depictions. On the one hand, Abac shows a dreamy image of a person in a panda suit who takes his mask off and lets out streams of smiley-pinned fluffy clouds that floats into a larger, colored cluster. On the other, Xjin is more dark and direct with a diptych of a man in full-body equipment from masks to gloves, shadowed
creases and all. Aside from the group show, the gallery has mounted two more exhibitions. One is a two-man show, titled Indulgence, which explores the dual meaning of the word. The first refers to the act of allowing one’s self to partake in pleasure, while the other pertains to a grant of pardon. Taking on the hedonistic sense of the word is Raha Rodriguez. The artist is also a professional industrial designer who utilizes industry practices, such as 3D modeling, material handling and fabrication in creating distinct sculptural forms. For the show, Rodriguez bakes and frosts King Racha, his signature character, as a layered cake, which is often associated with the idea of superfluity. Meanwhile, the more benevolent definition of the exhibition title is interpreted by emerging artist Baby Evil. The name befits the works as Baby Evil is being recognized for provocative themes that pops even more in bright tones. Such is the case for the heaven-and-hell scenarios for the show where angels and demons are mere children who are free from the preconceptions of good and evil. What only matters to them, fiery boots and immaculate white shirts be damned, is playtime. Rounding up the gallery’s trio of new shows is a Reybert Ramos solo. The artist is a TV art director who has established himself in the realm of contemporary conceptual visual art, wherein he serves delicious symbolisms by infusing the depth of realism with surreal eccentricities and influence from pop culture and mass media. In his ongoing show, titled Unnatural Civility, Ramos works his magic with acrylic and graphite on canvas in portraying hybrid characters comprised of animal heads and human bodies that, as the sophisticated clothing and activities indicate, are of the elite class, hinting of sociopolitical undertones. Unnatural Civility, along with Indulgence and Visions at the Turn, are on view at Galerie Stephanie until August 22. n
GEMINI (May 21-June 20): Keep your thoughts and plans a secret. It’s best to put everything in place before you share with others. An emotional situation will escalate, leading to changes you didn’t anticipate. Work with what you have, and do the best you can. HHH
d
CANCER (June 21-July 22): Separate work from pleasure. Enforce changes that are in agreement with what others want. There is no point in fighting a losing battle. Stick to what is possible, and do your best. An energetic exercise will be uplifting. HHHH
e
LEO (July 23-Aug. 22): A change that takes place at work or in your community may not be something you expect, but acceptance will be the first step to discovering how best to move forward. Branch out, and try something new and exciting. HH
f
VIRGO (Aug. 23-Sept. 22): Follow the rules. Don’t let anyone railroad you into something that doesn’t sit right with you. Do your due diligence, gather the facts and be ready to make adjustments if someone gets in your way. HHHHH
g
LIBRA (Sept. 23-Oct. 22): Make your surroundings more accommodating. Clear a space that is conducive to the projects you want to get under way. If you need help, rely on someone who is always supportive and willing to do his or her part on your behalf. HHH
h
SCORPIO (Oct. 23-Nov. 21): What you do will make a difference. Choose to let your actions speak for you, and allow your dedication and desire to do things prevail. Use your imagination, and associate with people who share your sentiments. HHH
i
SAGITTARIUS (Nov. 22-Dec. 21): Take the initiative, and follow through with your plans. Having the proper documents in order and your plan in place will give you the edge you need over someone trying to oppose or criticize what you are trying to accomplish. HHH
j
CAPRICORN (Dec. 22-Jan. 19): Take into consideration concerns presented to you. It’s best to find a way to keep the peace by finding an alternative way to reach your goal. Mixing the old with the new will be more acceptable to someone who doesn’t like change. HHHHH
k
AQUARIUS (Jan. 20-Feb. 18): Don’t feel you have to accommodate someone who is not heading in the same direction. Assess your situation, and do what feels right. You have to look out for your interests if you want to get ahead. HH
l
PISCES (Feb. 19-March 20): Personal improvements will make you feel good and grab attention and compliments that will boost your confidence. Hard work will lead to a chance to delve into something new and exciting. HHHH Birthday Baby: You are brave, spontaneous and entertaining. You are aggressive and resourceful.
‘in pique condition’ by paul coulter The Universal Crossword/Edited by David Steinberg
ACROSS 1 Nun’s garment 6 Island in Honolulu County 10 “Cool!” 14 Grads 15 Boardwalk walk 16 Ashtabula’s Great Lake 17 The irritated tugboat captain ___ 20 Italian wine center 21 Aces, sometimes, in blackjack 22 Varieties 23 Howls like a wolf 25 Word after “inner” or “vacuum” 27 The irritated snake handler ___ 33 Nay’s opposite 34 Billionaire Musk 35 Caped Crusader 37 Dorm overseers: Abbr. 38 “Get a room” elicitor, for short 40 Season opener? 41 Bear witness 45 Singer whose Irish first name is Eithne 48 Pupil’s organ 49 The irritated lumberjack ___ 52 Fortitude
3 Casablanca heroine 5 54 One may not be upside-down after you flip it 56 Polio vaccine pioneer 58 Fed. accident investigators 62 The irritated actor ___ 65 Has a mortgage, e.g. 66 Alder or ash 67 Up, score-wise 68 (Check this out!) 69 His partner, often 70 Hammer partner DOWN 1 “Funny!” 2 “Sad to say...” 3 Reynolds of Boogie Nights 4 Drink 5 Chinese culinary general 6 Nonunion workplace 7 Elizabeth Warren staffer 8 Safe jobs, perhaps? 9 Internet address 10 1960s-1970s movement concerned with civil rights and feminism 11 Killmonger’s first name in Black Panther
2 Afflicts 1 13 Abbr. before a number 18 Kind of pain? 19 Chad’s northern neighbor 24 Wowed feeling 26 PC port type 27 Emmy winner Banks 28 Toffee bar choice 29 Certain Bob Marley fan 30 The Dow, e.g. 31 Late Chinese-American architect 32 Manning of Orange Is the New Black 36 Require 39 “Lesser” or “Greater” islands 42 Most provocative 43 Steam bath 44 Atlanta-based station 46 Like rich custard 47 Janet Reno and Eric Holder, once: Abbr. 50 Guarantee 51 Southwestern spread 54 Cornfield cries 55 Glorifying poems 57 Golden-___ (senior) 59 Twentysomething’s little sibling,
maybe 60 Unforeseen problem 61 They may be made before breakfast 62 Floor cleaner 63 Advanced degree? 64 Stopped standing, say
Solution to Friday’s puzzle:
Show BusinessMirror
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Tuesday, August 11, 2020
B5
ALDEN STAR-CROSSED DRAMA, HIT THAI ROMCOM ‘MADAM PUSHY AND I’ ON GMA
BRACE for giddy mornings as GMA Heart of Asia airs the hit romantic comedy Madam Pushy and I from Thailand featuring the first team-up of Thai superstars Mario Maurer and Ploy Laila Boonsayak, which premiered yesterday, August 10. Madam Pushy (Ploy Laila Boonsayak) is an ambitious talent agent and manager who searches for a new potential star as she goes against her rival Jeric (Chai Chatayodom Hiranyatithi) in the industry. Madam Pushy blames Jeric for her best friend’s death and since then has vowed to bring Jeric down. With the help of her assistant, she finds Next (Mario) in the countryside, a young man who was adopted by a childless couple. Next agrees to work with Madam Pushy to build his finances to search for his biological parents. Will Madam Pushy be successful in turning Next into a superstar? Find out in Madam Pushy and I on weekdays at 11:30 am, and every Saturday at 10:45 am on GMA. Also making a return on GMA on August 10 in the afternoon block is the drama series One True Love, top-billed by Alden Richards and Louise delos Reyes. The original soap features the enduring power of love between two people from two different walks of life. The series, which was rewarded several extensions for its phenomenal ratings success during its initial airing in 2012, propelled both Alden and Louise to stardom and they became household names with the popularity of their characters as Tisoy and Elize. The story of One True Love begins with Ellen (Jean Garcia), a hardworking janitress who falls madly in love with Carlos (Raymond Bagatsing), a successful businessman who is already married to Leila (Agot Isidro). Unknown to Ellen, Carlos is not serious about their whirlwind romance and only becomes aware of his true feelings after finding out that she is pregnant. Ellen agrees with Carlos for him to raise their child. Leila, however, vehemently resents the idea of rearing her husband’s illegitimate child and plots a scheme to switch the child with someone else’s. Many years later, star-crossed lovers Elize (Louise), who has no knowledge of her falsified identity, and Tisoy (Alden), Ellen’s orphaned son who grew up to be a kind and hardworking man in the docks of Manila, cross paths. Tisoy is completely smitten with Elize’s beauty, and soon a secret romance blossoms between the two. With Carlos and Ellen threatening to tear them apart alongside Leila’s wicked secret, how long can Tisoy and Elize weather the odds of their forbidden romance? Directed by Andoy Ranay, One True Love airs weekdays after Stairway to Heaven on GMA.
TV5 ramps up entertainment programming, inks new deal with Cignal TV By Pauline Joy M. Gutierrez
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V5 is doubling down on lifestyle and entertainment content as it strikes a new partnership with Cignal TV, an effort TV5 CEO Robert Galang said will provide producers an opportunity to enter their programs on the network in a block-timer capacity. The network head added that with this, they are making “significant investments on creating more shows that [they] can run and utilize across multiple platforms” like free-to-air and subscription television (through Cignal), as well as over-the-top (OTT) streaming services. “We aim to redefine the entertainment scene by offering top-notch shows and talents that can greatly boost TV5’s re-programming goals which have been an ongoing plan since late 2019, and now bolstered by Cignal TV’s other digital asset,” said Galang in a statement, emphasizing that the partnership will allow TV5 to focus on its own strength: news and sports. The first series of the network’s new programs begins on Saturday, August 15, with the premiere of Fill in the Bank hosted by Paolo Ballesteros, and Bawal na Game Show hosted by Pokwang and Jose Manalo,
both to air three times a week. Its new morning show Chika, BESH! (Basta Everyday Super Happy), hosted by Pokwang, Pauleen Luna and Ria Atayde, will air weekdays, while Jessy Mendiola’s fitness program, Fit For Life, premieres on Sunday, August 16. TV5 will also relaunch its original talent search Bangon Talentadong Pinoy, hosted by Ryan Agoncillo, who will be joined by “talent scouts” John Arcilla, Janice de Belen and Joross Gamboa in the pilot episode, and the magazine talk show Real Life with Luchi Cruz-Valdes. A major new asset for the network is the acquisition of the rights to broadcast the National Basketball Association (NBA) games. The deal covers the remainder of the 2019-2020 season to be played at the ESPN Wide World of Sports Complex in Orlando, Florida. Games will be aired live on free TV through One Sports (Channel 41 on free TV, channel 6 on Cignal TV) twice a week on Fridays and Mondays. TV5, on the other hand, will show games live on Saturdays and Sundays. “The NBA coming to Cignal TV and TV5 only strengthens our position of bringing the best sports to our Filipino viewers throughout the country,” the
CEO said. With its ongoing program expansion, can TV5 provide job opportunities for hundreds of ABS-CBN employees who have been laid off following the closure of the Lopez-owned network, which was denied renewal of its franchise by lawmakers? Galang said, “With this massive push toward entertainment programming, we will of course need creatives.” He added that they are “open to everybody” and points out that independent productions like APT use their facilities for their shows. Nevertheless, Galang affirmed Cignal TV and TV5 Chairman Manuel V. Pangilinan’s earlier statement wherein he mentioned his intention to hire retrenched cameramen, directors, and scriptwriters from ABS-CBN: “If they are willing and able to work with us, we’re prepared to offer alternative jobs for the relevant displaced workers over time.” “Our commitment is to celebrate the lives of today’s Filipinos by providing informative as well as inspiring and uplifting entertainment content, and hopefully in so doing we are able to make lives a little better, a little safer, and a little easier in these changing times,” concluded Galang. n
Alisah Bonaobra continues to share her golden voice
HER name remains familiar to those who have followed the UK edition of the popular X-Factor singing competition. Filipino singer Alisah Bonaobra rose to fame when she flew to the UK in 2017 to audition for the contest. Her powerful vocals wowed the judges and stunned the live audience. In her journey to the finals, she experienced being eliminated in the early rounds, but her persistence did her good, and the judges gave her another chance. Bonaobra did not get to reach the victory line but she made an indelible mark and showed the entire UK, and perhaps the world, what stuff she is made of as a vocal artist. Losing broke her heart, but the twentysomething
singer is not one who’d easily give up on her dreams. “I have been competing practically all my singing life—from small-town contests to big-time talent searches. I’ve had my share of winning and losing, happiness and heartbreak. I’d acknowledge my emotions after each contest and move on the next. That was my life as a struggling singer growing up, and I’ve never let go of my dream of becoming a grand winner in a big competition,” she told us in a recent virtual chat. The singer with fierce vocals was a standout during the second season of The Voice of the Philippines in 2014. She then represented the country at the always controversial World Championship of Performing Arts in 2016 where she brought home a few medals. But winning the grand title has been elusive. “I used to think that winning was everything. But as I mature, gain experiences and meet people, I have come to realize there is more than just winning. What I need is to continuously improve my gift of voice, and use it as an instrument for a bigger purpose,” she said, adding that her eight-month stay in the UK gave her a lot of time to look at life from a different perspective. Now back in Manila, Bonaobra shared with us that she has just released her new single, titled “Gintong Tinig,” composed by Kiko Salazar. It’s a fitting follow-
up to her earlier single, “Gintong Sandali,” which has attracted more than 300,000 views already on YouTube. The quality of Bonaobra’s voice has prompted both her camp and followers to give her the title of “The Golden Voice.” One of her biggest blessings is becoming an artist of RJA Productions, owned and managed by businessman Rosabella Jao-Arribas. “My management team has been overseeing the progress of my career, and even during these challenging times, when the live-performance circuit has been put on hold, my teams at RJA, both in the US and here in Manila, are making sure to guide me every step of the way. And for that, I am thankful.” Bonaobra said she will be busy promoting her new single on every available platform online, and she hopes that the pandemic will soon come to an end. “Life has been difficult for every one. The new normal is not something that we can all easily adjust to, especially those who are in the live performance and entertainment business. But I remain hopeful, in faith and in people, that things will get much better soon.” Indeed, at the end of this excruciating health crisis confronting the world, Alisah Bonaobra, the young dreamer with a golden voice, believes that she will get to see her golden sky.
Selena Gomez takes the heat in new cooking show SELENA GOMEZ is taking the heat in the kitchen. The singer-actress slices and dices in Selena+Chef, debuting August 13 on the new HBO Max streaming service. The 10-episode series was shot in the kitchen of Gomez’s new Los Angeles-area house. Her grandparents and two friends, who have been quarantining with her, serve as taste testers. “I really thought this would be something lighthearted because I was getting definitely down,” she said in a video conference Wednesday. “Of course, there’s more important things going on but this was an
opportunity to make something that could make people smile.” Guiding Gomez remotely are chefs Nyesha Arrington, Roy Choi, Tonya Holland, Daniel Holzman, Jon & Vinny, Candice Kumai, Ludo Lefebvre, Antonia Lofaso, Nancy Silverton and Angelo Sosa. They coach her through making such dishes as Korean breakfast tacos, matcha chocolate chip cookies, spicy miso ramen, seafood tostada and cheese souffle. There was no one off-camera perfectly prepping the ingredients and Gomez didn’t
glam up her clothing or makeup while chopping and stirring. Remote cameras set up in her kitchen captured Gomez’s mishaps that include flames in the oven and squirting juices. She wields sharp knives while struggling with a slimy octopus and pulls organs out of a raw chicken. “I hope you’re going to laugh because I look like a fool,” she said. “I love cooking, I just don’t know how to do it all the time.” Her go-to recipe? “I make a killer PB&J,” she said, laughing. Gomez learned to use a wet towel to adjust
the shape and position on the plate of a classic French omelette. “I’ve never cared more about presentation than I do now,” she said. Cooking at home has skyrocketed during the global pandemic, with people using it to alleviate boredom and anxiety. “It’s not easy for anyone to be walking through what we’re walking through. It’s affecting people, specifically with mental health,” Gomez said. “It’s just confusing. It was hard but I tried to find what I needed to get me through it. I have great friends, I see a therapist. Just try to keep my mind positive.
I’ve learned more about my country than I ever have from school or anything.” Each episode highlights a food-related charity and invites viewers to follow along at home with lists of ingredients and tools needed. “You don’t have to be a great cook to enjoy this show,” coexecutive producer Aaron Saidman said. Since filming ended, Gomez said she’s made the chocolate chip cookies and French omelette again. “I didn’t burn my house down,” she said. AP
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Asia CEO's Forum 'The Future of Work' highlights the pivotal role of HR professionals
Coronavirus Portable PCR Test now in the Philippines
ASIA CEOS (top row, from left:) Richard Mills, Chief Executive Officer, Chalre Associates; Mitch Locsin, First Vice President and Sales Head, PLDT Enterprise; Cary Lagdameo, Head, Demosa Land; (second row L-R) Ruth Owen, Founder, Connected Women; Brad Sinnatamby, Global Operations Head, Orca; Gemma Gaerlan, Chief Operations Officer, EY Global Services; Lars Wittig, SVP-Asean, Regus Spaces; Haidee Enriquez, Chief People Officer, Sitel Ph-ANZ
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S of August 6, the Philippines has overtaken Indonesia for the most number of Covid-19 cases in Southeast Asia. Government officials say the rapid rise in cases owes partly to the Philippines's expanded testing capacity. However, also possibly contributing to the rapid rise in the number of cases is inadequate, delayed and wrong kind of testing, according to some experts. Dr. Antonio Dans, spokesperson of The Healthcare Professions Alliance Against Covid-19, has been quoted as saying that the use of rapid antibody tests to screen for coronavirus disease gave a false sense of security and could have aggravated the outbreak in the Philippines. He said that such tests are able to detect only half of those who are actually sick of the virus. The group that Dr. Dans represents and several medical societies are asking the public and private sectors to stop using rapid antibody tests and are pushing for the use of Reverse TranscriptionPolymerase Chain Reaction or PCR testing, the gold standard of Covid-19 testing for its accuracy. However, PCR testing is also sometimes hounded by issues like results being delayed because of testing backlogs or lack of chemicals, or when the tests are not done at all because of high cost and distance of the patient to the laboratory. Bill Gates, one of the world’s richest
men and at the forefront of Covid-19 vaccine development has been quoted as saying, “Right now, this thing where you wait more than three days, sometimes seven days to get a test, nobody should pay $1 for that. That’s insane,” Gates said in a recent interview. “You need to get it back as soon as possible so that somebody can change their behavior, so they’re not infecting other people.” Amid fears that the Philippines has become the epicenter of the corona virus in Southeast Asia, a test that combines the accuracy of PCR with the lower cost, speed and convenience of rapid antibody tests has recently been unveiled. Such a test is now available in the Philippines. The Shineway Marcus Portable PCR system combines the 99-percent accuracy of PCR without needing a laboratory so it can be used at point of care and off-site. Being truly portable, the size of a carry-on bag, the said PCR system can be brought where numerous people need to be tested quickly and accurately, for example in workplaces, airports and other transportation hubs, and in infection hot spots. Thus, the point-of-care PCR test can complement the 99 Covid-19 labs presently licensed in the Philippines. “A technological leap in the Gold Standard of testing, the Shineway Marcus Portable PCR system was designed for offsite testing that can give test results in 45
minutes," according to Yaying Hong, VP for sales and marketing of Shenzhen Shineway Technology Corporate, the manufacturer of the system. According to its Philippine distributor, the PCR system can perform 32 to 96 tests every 45 minutes using the WHO-EUL detection kit. Regular PCR testing requires the use of laboratories with a high degree of biosecurity because they handle and transport live viruses. On the other hand, the point-ofcare PCR system tests swabs where they are obtained. The viruses in the swabs are chemically inactivated prior to processing, thus enhancing safety of the process, according to its distributor in the country. The PCR system was developed by a team of researchers at Hong Kong University of Science and Technology (HKUST), the 27th top ranked university in the world. The researchers designed the PCR system from the start for off-site use, affordability with system costs half the price of conventional analyzer, and lower operating cost with less reagent consumption. The Shineway Marcus Portable PCR system has obtained various certifications, including the CE mark from Europe, and is currently in use in the US, Italy, Sweden, Norway in Europe, Saudi Arabia, Kuwait, Palestine and Israel in the Middle East, Hong Kong, Malaysia, and Korea in Asia and in Australia.
LONGSIDE industry experts at the recently concluded Asia CEO Forum, Haidee Cabanag Enriquez, Chief People Officer of Sitel PHANZ, and Chair of the Contact Center Association of the Philippines highlighted the need for HR leaders to be at the forefront of balancing business interest with the health and welfare of associates, and in addressing the immediate needs of the organization while steering the path towards longer-term recovery and sustainability. To ably fulfill that role, Enriquez emphasized the importance of retooling and taking time to learn new skills, reinventing the business through innovation, leveraging technology, and reviewing and realigning HR strategies, initiatives and processes. “I believe that it is in difficult situations like the one that we are facing now that HR leadership really shines through”, Enriquez shared. The virtual forum entitled “The Future of Work” was broadcasted to over 500 participants on social media and highlighted the latest industry developments in light of the pandemic. Business leaders showcased how they were
adjusting, innovating, and revamping operations. “This forum is exceptionally important as workers navigate working from home in these unprecedented times,” related Richard Mills, Chief Executive Officer, Chalre Associates. “We’ve learned so much about what is possible and every company has had unique experiences in this new way of working. This timely forum brings together experts from top companies in the Philippines to share their experiences and best practices in light of the current global health crisis.” Speakers discussed new advances in work-from-home protocols, the various ways they prioritized communication between teams and boosting organization productivity. “It has been said that necessity is the mother of invention and that has never been more accurate than it is now. Sitel, as well as the entire BPO industry, have displayed agility and resiliency during these trying times, quickly shifting to new ways of working, collaborating, and providing services. And because of that, I am confident that the industry will emerge stronger and will continue to be a major driver of the country’s economic recovery, ” Enriquez concluded.
Cook your way to greatness with Enchanted Kingdom’s Kiddie Chef Challenge 2020
Security Bank hosts its first online economic forum
Veteran Financial Journalist Cathy Yang acts as the moderator for the Q&A portion of the 2020 Security Bank Economic Forum.
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ecurity Bank Corporation (SBC) held its first online forum today, August 6, 2020, to discuss the impact of COVID-19 in the economy, economic outlook and recovery plans. Appearing as the main keynote speaker of the event is Finance Secretary Carlos G. Dominguez, who projected a strong economic rebound of around 6.5-7.5% GDP growth in 2021. Secretary Dominguez, who has been vocal on its projection on the country’s economic curve, reiterated the need to find the balance between safety and the economy to ensure the country’s continued growth at the time of the pandemic. “Even as we navigate through ongoing circumstances, we intend to maintain fiscal discipline, make our financial sector more inclusive and introduce more reforms that will help us consolidate and progress this environment,” Dominguez said. Dominguez highlighted the four legislative imperatives to revive the economy and bring it back to its robust position. This includes seeking congressional approval to infuse additional capital to government financial institutions, allowing banks to dispense of non-performing loans and
assets through asset management companies, immediate passing of the CREATE Act, and providing greater support to the agriculture sector. “CREATE is not industry-specific. It is to reduce the tax rate for all companies, not only big foreign companies. That is a reduction from 30% CIT to 25%, and further reductions down the road. That will provide the economy with the biggest stimulus if ever. This proves that the government is trusting the private sector,” Dominguez added. Meanwhile, Security Bank President & CEO Sanjiv Vohra, said that the Philippines is in a better position to withstand the economic impact of the pandemic, citing reports from The Economist as well as the country’s improved revenue flows, tax reforms and wise spending. “Overall, the Philippines is said to be in a good position to withstand the economic impact of COVID-19. We’ve been ranked sixth by the UK’s Economist newspaper among other emerging global economies. The country’s fiscal and economic strength borne out of improved revenue flows, tax reforms, debt management, and wise spending and investing, have served us well.” Security Bank’s Chairman Alfredo S. Villarosa
opened the forum by describing the situation through the acronym VUCA and thanking the event’s guest for allowing Security Bank to make them more informed of the situation and be wellequipped to handle what’s coming. “We are certainly facing something we have not faced before, at least not in our lifetime. This is something totally new and unknown. What best describes this current situation comes from the US Military College, the acronym VUCA: volatility, uncertainty, complexity and ambiguity,…We believe that the more you know, the better your chances to not only survive, but thrive in these trying times.” Each year, the bank organizes an economic forum as part of it s efforts to arm business leaders with information that will guide them in making the best business and financial decisions. The bank conducted its first economic roadshow last year and visited six key investment hubs nationwide to provide insights straight from the experts. Due to the COVID-19 pandemic, the bank decided to hold its forum online. Over 700 clients and stakeholders nationwide joined the forum.
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T’S time to give your little ones a break from their usual home activities and let them discover the joys of cooking! Unleash the little chef in your kids and join Enchanted Kingdom’s Kiddie Chef Challenge 2020: Recipes from Home Edition! Prepare their aprons, gather all the cookery essentials, and get ready for a virtual cooking challenge! This fun online challenge is open to all aspiring little chefs ages 4-12 years old who want to show off their incredible culinary skills. Share your kids’ food entry until August 11, 2020 using Purefoods Tender Juicy Hotdog, SPAM Luncheon Meat and/or Magnolia products inspired by one of EK’s seven themed zones (you may check out our official website for info on EK’s zones www. enchantedkingdom.ph). Terms and Conditions: Like Enchanted Kingdom’s official Facebook page. All entries must have the following: Complete recipe (including the participating
products used) Photo collage of the finished dish with participant’s photo while cooking Post the photo at EK Kiddie Chef Challenge FB post’s comment section. Use the hashtags: #EKKiddieChef, #iloveEK and #EKatHome. Winners will be announced on August 14, 2020 and will receive four (4) Regular Day Passes each plus a special gift basket from EK partners. Enchanted Kingdom is excited to see your kids’ tasteful treats and mouth-watering creations! Come and join in the culinary fun! For more information, visit Enchanted Kingdom’s official website and Facebook page at www.enchantedkingdom.ph and www.facebook.com/enchantedkingdom.ph or click https://web.facebook.com/notes/ enchanted-kingdom/kiddie-chef-challengerecipes-from-home/3624944944200412/?_ rdc=1&_rdr to know the complete contest mechanics.
Editor: Angel R. Calso
The World BusinessMirror
Bill Gates: US virus testing has ‘mind-blowing’ problems
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icrosoft Corp. founder and billionaire philanthropist Bill Gates said it’s “mind-blowing” that the US government hasn’t improved Covid-19 testing that he described as slow and lacking fair access. “You’re paying billions of dollars in this very inequitable way to get the most worthless test results of any country in the world,” Gates said on CNN’s “Fareed Zakaria GPS” on Sunday. “No other country has this testing insanity.” “A variety of early missteps by the US and then the political atmosphere meant that we didn’t get our testing going,” he said. Gates cited long lines at commercial labs and delays in obtaining test results, meaning “you pay as much for the late result as the timely result.” Meanwhile, “very wealthy people have access to these quick-turnaround tests,” he said. “It’s mind-blowing that you can’t get the government to improve the
testing because they just want to say how great it is,” Gates said. Public officials have regularly cited delays in testing results in the US as an impediment to quick contact tracking and isolation of people infected with the virus. President Donald Trump has defended the US record on testing as “the best ever, the best in the world,” telling Fox News last week that half of the country’s testing is “short-term.” Gates reiterated that he expects the US to largely get through the pandemic by the end of next year as therapeutics and a vaccine become available. In a Bloomberg interview last week Gates said he’s funded vaccine development efforts by AstraZeneca Plc, Johnson & Johnson and Novavax Inc. The Bill & Melinda Gates Foundation has pledged more than $350 million toward Covid-19 research. Much of that has gone toward funding research and manufacturing capacity that will help a vaccine be distributed globally. Bloomberg News
Azar-Tsai meeting seen fueling China tensions
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AIPEI, Taiwan—US Health and Human Services Secretary Alex Azar met with Taiwanese President Tsai Ing-wen on Monday during the highest-level visit by an American Cabinet official since the break in formal diplomatic ties between Washington and Taipei in 1979. Tsai said to reporters at the Presidential Office Building that she looked for “even more breakthroughs and fruits of cooperation” in dealing with the coronavirus pandemic and other issues to “ jointly contribute to the sustained peaceful development of the Indo-Pacific region.” Azar praised Taiwan’s response to Covid-19 and said its success was a tribute to the “open, transparent, democratic nature of Taiwan’s society and culture.” “It’s a true honor to be here to convey a message of strong support and friendship from President Trump to Taiwan,” Azar said. Azar is due to hold consultations with health officials and deliver a speech later in the day. Beijing has protested Azar’s visit as a betrayal of US commitments not to have official contact with the island that China claims as its own territory and threatens to use force to bring
under its control. Azar’s visit was facilitated by the 2018 passage of the Taiwan Travel Act, which encouraged Washington to send higher-level officials to Taiwan after decades during which such contacts were rare. China cut contacts with Tsai over her refusal to recognize China’s claim to the island and has brought increasing diplomatic, economic and military pressure against her, including by poaching away several of its remaining diplomatic allies and excluding it from international gatherings including the World Health Assembly. That, in turn, has increased already considerable bipartisan sympathy for Taipei in Washington and prompted new measures to strengthen governmental and military ties. Closer relations come as Washington is enmeshed in a series of disputes with Beijing over trade, technology, the South China Sea and Beijing’s crackdown on opposition voices in Hong Kong. Taiwan, an island of 23 million people, moved swiftly and aggressively to contain Covid-19 and has recorded just 277 cases and seven deaths from the illness. AP
Hong Kong media tycoon Jimmy Lai arrested under security law
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ONG KONG—Hong Kong police arrested media tycoon Jimmy Lai and raided the publisher’s headquarters on Monday in the highest-profile use yet of the new national security law Beijing imposed on the city after protests last year. “Jimmy Lai is being arrested for collusion with foreign powers at this time,” Mark Simon wrote on Twitter. Hong Kong police said seven people between 39 and 72 years old had been arrested on suspicion of violating the new security law, but the statement did not reveal the names of those arrested. Lai, 71, owns popular tabloid Apple Daily and is an outspoken pro-democracy figure in Hong Kong who regularly criticizes China’s authoritarian rule. The security law came into effect June 30 and is widely seen as a means to curb dissent after antigovernment protests rocked Hong Kong last year. Simon said that police searched both Lai and his son’s home, and detained several other members of media group Next Digital, which
Lai founded. Over a hundred police also raided Next Digital’s headquarters in Hong Kong, entering the newsroom and searching the desks. Simon said in a tweet that the police were executing a search warrant. Next Digital operates the Apple Daily tabloid, which Lai founded in 1995, ahead of Britain’s handover of Hong Kong to China. Like Lai, Apple Daily has a strong prodemocracy stance and often urged its readers to take part in prodemocracy protests. The security law outlaws secessionist, subversive and terrorist acts, as well as collusion with foreign forces in the city’s internal affairs. The maximum punishment for serious offenders is life imprisonment. Last month, Chinese broadcaster CCTV said prodemocracy activist Nathan Law and five others were wanted under the law, although all six had fled overseas. Law had relocated to Britain in July to continue international advocacy work for Hong Kong. AP
Tuesday, August 11, 2020
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US tops 5 million confirmed virus cases, Europe alarmed
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OME—With confirmed coronavirus cases in the US hitting 5 million on Sunday, by far the highest of any country, the failure of the most powerful nation in the world to contain the scourge has been met with astonishment and alarm in Europe.
Perhaps nowhere outside the US is America’s bungled virus response viewed with more consternation than in Italy, which was ground zero of Europe’s epidemic. Italians were unprepared when the outbreak exploded in February, and the country still has one of the world’s highest official death tolls at over 35,000. But after a strict nationwide, 10week lockdown, vigilant tracing of new clusters and general acceptance of mask mandates and social distancing, Italy has become a model of virus containment. “Don’t t hey c a re about t heir health?” a mask-clad Patrizia Antonini asked about people in the United States as she walked with friends along the banks of Lake Bracciano, north of Rome. “They need to take our precautions. They need a real lockdown.” Much of the incredulity in Europe stems from the fact that America had the benefit of time, European experience and medical know-how to treat the virus that the continent itself didn’t have when the first Covid-19 patients started filling intensive care units. More than four months into a sustained outbreak, the US reached the 5 million mark, according to the running count kept by Johns Hopkins University. Health officials believe the actual number is perhaps 10 times higher, or closer to 50 million, given testing limitations and the fact that as many as 40 percent of all those who are infected have no symptoms. “We Italians always saw America as a model,” said Massimo Franco, a columnist with daily Corriere della Sera. “But with this virus we’ve discovered a country that is very fragile, with bad infrastructure and a public health system that is nonexistent.” With America’s world ’s-highest death toll of more than 160,000, its politicized resistance to masks and its rising caseload, European nations have barred American tourists and visitors from other countries with growing cases from freely traveling to the bloc. France and Germany are now imposing tests on arrival for travelers from “at risk ” countries, the US included. “I am very well aware that this impinges on individual freedoms, but I believe that this is a justifiable intervention,” German Health Minister Jens Spahn said last week. Mistakes were made in Europe, too, from delayed lockdowns to insufficient protections for nursing home elderly and critical shortages of tests and protective equipment for medical personnel. Hard-hit Spain, France, Britain and Germany have seen infection rebounds with new cases topping 1,000 a day, and Italy’s cases went over 500 on Friday. Some scientists say Britain’s beloved pubs might have to close again if schools are to reopen in September. Europe as a whole has seen over 207,000 confirmed virus deaths, by Johns Hopkins’ count. In the US, new cases are running at about 54,000 a day—an immensely high number even when taking into account the country’s large population. And while that’s down from a peak of
well over 70,000 last month, cases are rising in nearly 20 states, and deaths are climbing in most. In contrast, at least for now Europe appears to have the virus somewhat under control. “Had the medical professionals been allowed to operate in the States, you would have belatedly gotten to a point of getting to grips with this back in March,” said Scott Lucas, professor of international studies at the University of Birmingham, England. “But of course, the medical and public health professionals were not allowed to proceed unchecked,” he said, referring to President Donald Trump ‘s frequent undercutting of his own experts. When the virus first appeared in
the United States, Trump and his supporters quickly dismissed it as either a “hoax” or a scourge that would quickly disappear once warmer weather arrived. At one point, Trump suggested that ultraviolet light or injecting disinfectants would eradicate the virus. (He later said he was being facetious). Tr u mp’s f requent compl a i nts about Dr. Anthony Fauci have regularly made headlines in Europe, where the US infectious-disease expert is a respected figure. Italy’s leading Covid-19 hospital offered Fauci a job if Trump fired him. Trump has defended the US response, blaming China, where the virus was first detected, for America’s problems and saying the US numbers are so high because there is so much testing. Trump supporters and Americans who have refused to wear masks against all medical advice back that line. “There’s no reason to fear any sickness that’s out there,” said Julia Ferjo, a mother of three in Alpine, Texas, who is “vehemently” against wearing a mask. Ferjo, 35, teaches fitness classes in a large gym with open doors. She doesn’t allow participants to wear masks. “When you’re breathing that hard, I would pass out,” she said. “I do not want people just dropping like flies.”
And health officials watched with alarm as thousands of bikers gathered on Friday in the small South Dakota city of Sturgis for an annual 10-day motorcycle rally. The state has no mask mandates, and many bikers expressed defiance of measures meant to prevent the virus’s spread. Dr. David Ho, director of the Aaron Diamond AIDS Research Center at Columbia University Irving Medical Center, who is leading a team seeking treatments for Covid-19, decried such behavior, as well as the country’s handling of the virus. “There’s no national strategy, no national leadership, and there’s no urging for the public to act in unison and carry out the measures together,” he said. “That’s what it takes, and we have completely abandoned that as a nation.” When he gets on Zoom calls with counterparts from around the globe, “everyone cannot believe what they’re seeing in the US and they cannot believe the words coming out of the leadership,’’ he said. Amid the scorn from other countries, Trump national security adviser Robert O’Brien, newly recovered from a bout with the virus, gave an upbeat picture Sunday on CBS’ “Face the Nation.” AP
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Sports BusinessMirror
Tuesday, August 11, 2020
MORIKAWA, 23, FINISHES WITH A BANG! By Doug Ferguson
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The Associated Press
IT will be a special challenge for Tiger Woods, who at 44 has a balky back and hasn’t played on back-to-back weekends since the President’s Cup in December.
Woods, his back face tough sked
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IGER WOODS doesn’t know how the strange, compressed schedule will affect him for the rest of the year. Then again, no one else does, either. “No one has ever experienced this, having a shutdown during the year,” Woods said as he looked ahead to the FedEx Cup playoffs that will be followed two weeks later by the US Open. “It is very different. This is unlike any other year that we’ve ever experienced in golf.” Woods shot a three-under 67 on Sunday in the final round of the Professional Golfers’ Association (PGA) Championship to finish the tournament at minus-1—10 strokes behind leader Dustin Johnson as he waited to tee off. Woods will take next week off before the three-week stretch of the playoffs that begin outside of Boston on August 20—the US Open, which was postponed from June, will be two weeks after the tour championship. Although the schedule is new for everyone, it will be a special challenge for Woods, who at 44 has a balky back and hasn’t played on back-to-back weekends since the President’s Cup in December. “We’ve been training for that. Trying to get my strength and endurance up to that ability to making sure that I can handle that type of workload,” Woods said. “We’ll be pushing it hard to make sure that I can stay strong and have the endurance to keep on going.” Woods struggled at TPC Harding Park for the first three rounds before putting together a solid round on Sunday, when he was already out of contention. He had five birdies and two bogeys, including a 5 on the par-four 18th hole that left him signing for a 67. If only it had happened sooner. “If I would have made a few more putts on Friday early on, and the same thing with Saturday, I felt like I would have been right there with a chance come today,” he said. “It didn’t happen, but I fought hard, and today was more indicative of how I could have played on Friday and Saturday if I would have made a few putts early.” AP
AN FRANCISCO— The shot will be remembered as one of the best under pressure that hardly anyone witnessed. It made Collin Morikawa a major champion Sunday in a thrill-a-minute Professional Golfers’ Association (PGA) Championship that not many will forget. Morikawa hit driver on the 294yard 16th hole that was perfect in flight and even better when it landed, hopping onto the green and rolling to 7 feet for an eagle that all but clinched victory on a most quiet Sunday afternoon at Harding Park. In the first major without spectators, the 23-year-old Californian finished with a bang. “I was hoping for a really good bounce and got it,” he said. “I hit a really good putt,
and now we’re here.” He closed with a six-under 64, the lowest final round by a PGA champion in 25 years, for a two-shot victory over Paul Casey and Dustin Johnson, two of 10 players who had a chance on the back nine. Morikawa was among seven players tied for the lead, as wild as any Sunday in a major. He took the lead when he chipped in for birdie from 40 feet short of the 14th green. And then he delivered the knockout with one swing along the shores of Lake Merced, The Covid-19 pandemic that moved the PGA Championship from May to August was allowed to be played only if spectators were not allowed. But there was one person who won’t forget what he saw. Casey, with his first good shot at winning a major, birdied the 16th to tie Morikawa for the lead. Standing on the tee at the par-3 17th, he looked back and saw the ball roll toward the cup. “What a shot,” was all Casey could say. “Nothing you can do but tip you cap to that.
CURRY ‘GUEST REPORTER’ I F you’re a three-time National Basketball Association (NBA) champion and two-time league MVP, you can skirt the ban on fans at the Professional Golfers’ Association (PGA) Championship. Golden State Warriors guard Stephen Curry was deputized as a “guest reporter” for the final round of the tournament, making him one of
the few outsiders allowed on the course at TPC Harding Park in San Francisco on Sunday. Curry, who is not in the NBA bubble in Florida because the Warriors didn’t qualify for the NBA restart, asked the first two questions at winner Collin Morikawa’s news conference. He even offered to carry Morikawa’s bag if caddie J.J. Jakovac was busy. (Jakovac is a Warriors fan
COLLIN MORIKAWA wins a major champion in a thrilla-minute Professional Golfers’ Association Championship that not many will forget. AP
Collin had taken on that challenge and pulled it off. That’s what champions do.” Golf’s latest major champion was still in the vicinity of Harding Park just over a year ago, finishing up his degree at California and his All-American career, part of a new cast of but Morikawa, who went to school at Berkeley but is a Los Angeles-area native, declared himself a Lakers fan.) “I’m free for the next three months if you need a caddie or replacement,” said Curry, who was wearing a mask but Morikawa still recognized him on the course. “J.J. is a great guy, but if you need me, I’m available.” Curry also asked Morikawa if he watches the leaderboard when he’s playing in a tournament. “I want to know where I’m at. Why not?” Morikawa said. “I don’t think it affects me.” AP
Usual suspects in NBA MVP race L
AKE BUENA VISTA, Florida—This season’s National Basketball Association (NBA) Most Valuable Player (MVP) candidates has won the award before. A trio of past winners of the award—reigning MVP Giannis Antetokounmpo of the Milwaukee Bucks, four-time MVP LeBron James of the Los Angeles Lakers and 2017-2018 winner James Harden of the Houston Rockets—were announced over the weekend as the finalists for this season’s top NBA individual honor. James would join Kareem Abdul-Jabbar (a six-time winner), Michael Jordan and Bill Russell as the NBA’s only five-time MVPs. Antetokounmpo is bidding to become the 12th back-to-back winner of the award, and Harden is vying for his second MVP in three seasons. “He’s an incredible teammate, plays unselfishly, does everything,” Bucks Coach Mike Budenholzer said of Antetokounmpo last month, stating his best player’s MVP case. “And I think that’s kind of what the MVP is, so we certainly feel like he’s very deserving and we’ll be excited to support him.” Antetokounmpo is also a finalist for Defensive Player of the Year, while Utah’s Rudy Gobert is bidding to win that trophy for a third consecutive season. The league announced the top 3 vote-getters in six individual
young stars in a sport filled with them. He only played Harding Park about a dozen times while in college, but never set up with rough like this or with the tees all the way back. Now he has three PGA Tour victories and is No. 5 in the world, taking his place among the young stars by beating a cast of world-class players on the public course in San Francisco. For Johnson, it was another major that got away. He had a one-shot lead and didn’t do too much wrong on the day except for not keeping it in the fairway for better chances of birdie. He drove into the hazard on the 16th and chipped in for birdie when it was too late, and a birdie on the 18th gave him a 68 and a tie for second. It was his fifth runnerup finish in a major—his only title is the 2016 US Open—and his second straight runner-up in the PGA Championship. Brooks Koepka proved to be all talk. He looked at the crowded
Antetokounmpo
James
Harden
categories. Voting has already taken place by a global panel of sportswriters and broadcasters. The NBA has not set specific dates when the winners will be announced. None of the games taking place at the NBA’s restart at Walt Disney World factored into the voting, because ballots were due before games began again July 30. The league took the step of saying games played before the league suspended the season on March 11 because of the coronavirus pandemic could factor into award consideration, out of fairness to the eight teams that were not invited to the restart. AP
UASON Racing joined forces with Phoenix Fuels and FamilyMart Philippines in providing personal protective equipment (PPE) and health and food supplies for frontline health workers of partner barangays in TRS’ Race for Frontliners program. The virtual Race for Frontliners raised P408,906 which were used in purchasing PPEs and medical supplies such as masks, gloves, sanitizing agents and gowns for health-care workers battling Covid-19. Tuason Racing wanted racing enthusiasts and gamers alike to keep their excitement in motorsports alive as they wait for the reopening of racetracks, and at the same time help frontliners by providing them supplies they need in fighting the virus.
Among the partner beneficiaries of Tuason Racing’s Race for Frontliners were Barangays Valencia in Quezon City, Malagasang II-B in Imus, Tunasan in Muntinlupa City, Western Bicutan in Taguig City, San Antonio in Sucat (Parañaque) and Caa, San Isidro and Tatalon Dos in Las Piñas City. The other beneficiaries are the Philippine General Hospital, Armed Forces of the Philippines, Philippine National Police Maritime Group, Philippine Coast Guard and Ospital ng Muntinlupa. Since the start of the quarantine, TRS transitioned to online activities and worked closely with its partners in the National Capital Region, including STET-VIP.
TUASON Racing officials turn over donations for frontliners in Barangay Valencia in Quezon City.
leaderboard on Saturday night and didn’t see anyone with his experience of four major championships, even dishing on Johnson because he has “only won one.” Koepka didn’t make a birdie until the 12th hole. He went from two shots behind to a 74, tying for 29th. “It’s my first bad round in a major in a while,” said Koepka, who said he spent the back nine mostly trying to cheer on Casey and his bid to win a first major at age 43. Youth rules these days. Morikawa finished at 13-under 267, and left so many others wondering how close they came. Matthew Wolff, who grew up with Morikawa in Southern California and turned pro last summer with him, shot a 65 and joined Jason Day, Bryson DeChambeau, Tony Finau and PGA Tour rookie Scottie Scheffler at 10-under 270. Cameron Champ, among eight players who had a share of the lead at some point, lost momentum with a double bogey at the turn. DeChambeau dropped two shots at the turn and never caught up until it was too late. Morikawa, in only his 28th start as a pro and his second major, played bogey-free. His only mistake was at the end, when it was time to hoist the Wanamaker Trophy, the heaviest of the four major trophies. The lid came off and tumbled to the grass as Morikawa’s eyes bulged. If that was his only mistake, consider it a good day. A major day.
PSA Forum on 3x3, jump rope
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NEW sports association and the recently christened professional basketball league Chooks-to-Go Pilipinas 3x3 make up Tuesday’s two-part session of the Philippine Sportswriters Association (PSA) webcast edition. Commissioner Eric Altamirano and top player Alvin Pasaol will talk about the 3x3 league and its planned “bubble” when it debuts at the Inspire Sports Academy in Calamba, Laguna, in September. Noel Agra, meanwhile, will expound on the newly-established Philippine Jump Rope
Association which he heads. The 10 a.m. session is presented by San Miguel Corp., Go For Gold, Milo, Amelie Hotel Manila, Braska Restaurant and the Philippine Amusement and Gaming Corp. and is powered by Smart with Upstream Media as webcast partner. The Forum will be aired live via the PSA Facebook page fb.com/ PhilippineSportswritersAssociation and will be shared on Radyo Pilipinas 2 facebook page.
Bernal calls for calm after Froome, Thomas dropped in three-day race
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Tuason Racing, partners donate supplies to medical frontliners
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mirror_sports@yahoo.com.ph / Editor: Jun Lomibao
OUR de France champion Egan Bernal called for calm at the finish of the Tour de l’Ain despite finishing second to his main Primož Roglič and seeing his team outclassed on every stage of the three-day race. Roglič finished second, first and first again in each stage to seal the overall title by 18 seconds with Nairo Quintana rounding out the podium. With the Tour de France only several weeks away, Roglič’s domination—and that of his team Jumbo Visma—stood out. The Dutch team finished the race with three riders in the top 5 as Tom Dumoulin returned to racing for the first time since last June. On Stage 3, Bernal had his team set a blistering pace on the approach to the final climb of the Grand Colombier, with Thomas used up before the road began to point upwards. Andrey Amador, Froome and then the impressive Jonathan Castroviejo all took turns on the front as Bernal looked to put Roglič’s race lead under pressure. But the quartet of Roglič, Dumoulin, George Bennett and Steven Kruijswijk held firm. Bernal was put in difficulty at several points on the long ascend of the Grand Colombier but he was able to rally towards the end and his attack at least isolated Roglic from the rest of his team. The race leader responded with an acceleration of his own and it was enough to drop Bernal before the line. “Today we showed that we’re here to ride a very fast pace as well,” Bernal said at the finish. “We did our race and we should he happy with how it went, not just here but in La Route d’Occitanie. Our big goal is the Tour.”
When asked if he was worried by the performances of both Thomas and Froome, the Colombian looked to ease the pressure on his team’s shoulders. The 2019 Tour winner instead reminded the media that the Tour de France was still several weeks away and that the Tour de l’Ain was only a warm-up race ahead of the main event. “No, I don’t think so. This is a race to prepare for the Tour. Some other big riders from other teams were also dropped early today. That doesn’t mean that they won’t be up there in the GC at the Tour de France,” he said. Cyclingnews TOUR de France champion Egan Bernal looks to ease the pressure on his team’s shoulders.