BusinessMirror August 25, 2021 by BusinessMirror

₧101.4-B revenue from CTRP eyed in ’22

HE government expects to raise P101.42 billion next year from its fiscal measures but projects this will go down to P67.07 billion by 2023. Based on the 2022 budget document, the expected revenues next year from fiscal measures will be 63.9 percent higher than the programmed P61.88 billion this year. For 2022, the Tax Reform for Acceleration and Inclusion (TRAIN) law is seen to generate P169.85 billion, up by 7.5 percent from P157.94 billion program this year. On top of this, “sin” tax laws will also give the government P52.33 billion in revenues, a 21.4-percent

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jump from this year’s P43.1-billion program. However, these revenue gains will be offset by the losses from the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) and the Financial Institutions Strategic Transfer (FIST) Act amounting to P118.79 billion and P1.97 billion, respectively. T he ex pected revenue loss next year from CREATE is lower than this year’s projection of P138.19 billion. On the other hand, the foregone revenues for FIST law in 2022 are bigger than the P995million projection for this year. By 2023, revenues from fiscal measures are expected to settle at

P67.07 billion, dropping by 33.9 percent from P101.42 billion projected in 2022. Revenue take from TRAIN law will settle at P117.98 billion, lower by 30.5 percent compared to the 2022 projection. Finance Undersecretary Maria Teresa Habitan told the BusinessMirror the expected decline in revenue collection from TRAIN law in 2023 is due to the implementation of relatively lower personal income tax (PIT) rates in 2023. “In 2023, the second tranche of PIT adjustments under the TRAIN Law will take effect,” Habitan said in a message. Revenues from sin tax laws in 2023, however, are seen to rise

to P66.99 billion, higher by 28 percent compared with P52.33 billion in 2022.

Smaller revenue loss

Meanwhile, the government projects losing P115.01 billion under the CREATE law, which is smaller than the projected P118.79 billion foregone revenues because of the program by 2022. Touted by the DOF as the “largest fiscal stimulus to firms in recent history,” the CREATE law is expected to provide P1 trillion in tax relief to businesses in 10 years. See “CTRP,” A2

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Wednesday, August 25, 2021 Vol. 16 No. 315

P25.00 nationwide | 2 sections 20 pages | 7 days a week

BUDGET GAP NARROWS 13.6% TO P121B IN JULY n

‘SHIFT TO INDUSTRY 5.0 MAY CAUSE JOB LOSSES’ By Cai U. Ordinario @caiordinario

HE shift to Industry 5.0 could lead to job losses if workers are not retooled and reskilled, the Asian Development Bank (ADB) has warned. In a special supplement titled, “Capturing the Digital Economy: A proposed measurement framework and its applications,” experts also said shifting to Industry 5.0 from Industry 4.0, however, would still lead to increased consumption and job opportunities if workers are able to adapt.

People looking to get their Covid-19 jab through the walk-in offer of the Antipolo City local government wait for their turn at the cinema-turned-vaccination site of the SM City Masinag in Antipolo City, August 24, 2021. In order to ramp up the vaccination of citizens, some LGUs allow walk-in clients to get vaccinated as long as supply lasts. Some cities in Metro Manila, especially those that have finished inoculating their citizens, are accepting residents living outside their city. NONOY LACZA By Bernadette D. Nicolas

@BNicolasBM

HE national government’s budget deficit in July narrowed to P121.2 billion from last year’s shortfall of P140.2 billion, the Bureau of the Treasury said. According to the Treasury, the budget deficit in July this year, which was down by 13.57 percent year-on-year, resulted from the growth in revenue collection

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outpacing the increase in government expenditures. Revenues in July this year rose See “Budget,” A2

“Data suggest that, while effects of technolog y improvements observably reduce labor demand as a result of substitution, positive job impacts coming f rom consumption and new labor requirements may compensate,” the ADB said. Efforts to reskill and retool workers are important given the rise of the digital economy. During the pandemic, ADB said the digital economy, particularly electronic commerce, surged. In some digitally dependent countries, the digital economy See “Job,” A2

Pandemic survival modes: Cut food, pawn stuff

IX in 10 Filipino households that experienced financial difficulties had to reduce their food intake or pawn their possessions to survive in the pandemic, according to the Asian Development Bank (ADB). ADB’s Key Indicators for Asia a nd t he Pac i f ic 2021 repor t showed 64 percent of households were in financial distress and had to employ coping strategies. These strategies, which included skipping meals as well as selling and pawning their possessions,

were necessary to survive, given that only 36.7 percent of these families were covered by at least one social protection benefit. “Asia and the Pacific has made impressive strides, but Covid-19 has revealed social and economic fault lines that may weaken the region’s sustainable and inclusive development,” ADB Chief Economist Yasuyuki Sawada said. “ To achieve the 2030 Sustainable Development Goa ls, decision-makers need to harness high-quality and timely data as a

guide for actions to ensure that the recovery leaves no one behind—especially the poor and vulnerable,” he added. ADB data also showed these coping strategies have led to food insecurity and undernourishment. In the Philippines, ADB said undernourishment per population reached 9.7 percent, the highest in the Asean-5. Further, 41.2 percent of the Philippines’s total population experienced moderate or severe food insecurity—the second highest

after Cambodia’s 44.1 percent. ADB estimated that in the region, about 36 percent of households with financial difficulties decided to skip meals or reduce their food intake. Data showed 30.4 percent of these households reduced their consumption of non-essential goods and services; 27.4 percent declined their non-essential daily expenditure; 25.9 percent cut their expenses for going out; and 25.4 percent slashed their utilities spending.

n US 50.2300 n japan 0.4580 n UK 68.9457 n HK 6.4462 n CHINA 7.7496 n singapore 37.0428 n australia 36.2209 n EU 59.0052 n SAUDI arabia 13.3939

See “Pandemic,” A2

Source: BSP (24 August 2021)

Wednesday, August 25, 2021

BusinessMirror

Rising demand, talent pool to fuel 5-10% growth in healthcare BPO By Tyrone Jasper C. Piad @Tyronepiad

HE Philippine healthcare information management system (HIMS) industry, a subsector of the business-process outsourcing (BPO) segment, is seen to grow by 5-10 percent this year amid increasing demand and talent pool. Healthcare Information Management Association of the Philippines (Himap) Vice President Vincent Remo shared this bullish outlook for the HIMS sector—which employs 147,000 fulltime equivalent and has $3.1-billion revenues—in a virtual event on Tuesday. In pandemic, Remo said that companies have been dealing with rising cost and margin pressures, making outsourcing a viable choice for them. The rollout of Covid-19 vaccination programs also “means the volume of transactions will dramatically increase, and there will be a need for more workers in the HIMS sector,” he added.

Job. . .

Continued from A1

accounted for 17 to 35 percent of their GDP. These economies included

Apart from demand, the Himap official said the industry growth will also be driven by the large pool of professionals in the medical field, including US-licensed nurses. He noted that some 42,000 from medical and allied courses are graduating yearly in the country. “Lately, the services offered from the Philippines have also expanded to cover higher value services, such as clinical research, analytics and life sciences,” Remo said. The HIMS sector, which comprises over 10 percent of the BPO industry, provides services to companies processing medical billings, doing medical coding, case management, and all aspects of revenue cycle management; companies doing benefit management and fraud and abuse management; and pharmacy benefit management, among others. “Beneath all of these services is technology, from hospital systems, intelligent AI assistance, data analytics and

robotic process automation. There are even new services and solutions being created or customized for every new engagement,” Remo said. Remo said that the Philippines is also attractive for investors in the HIMS industry given its resilience and adaptability amid the pandemic. “During the pandemic in 2020, companies prov iding healthcare information management ser v ices in the Philippines were able to create the shift to working-from-home, a testimony to the reliability of the infrastructure for f lexible working model,” he explained. Investors, the Himap official said, are also looking into areas outside the capital region to expand operations considering the availability of talent, infrastructure and ease of doing business. In addition, Remo cited the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which provides tax perks to investors. Trade Secretary Ramon Lopez, in

the same event, confirmed that HIMS and the information technology-business process management (IT-BPM) sectors are both included in the investment priorities plan under CREATE, making them eligible for tax perks. Some perks include availment of income tax holidays of four to seven years, depending on the level of technology and location of the project, Lopez said. This will then be followed by 10 years of enhanced deductions or 5-percent special corporate income tax for export-oriented firms. “Presently, IT-BPM remains as one of the top industry investments in the Philippines by US firms, with HIMS as one of the fastest-growing sub-sectors achieving a double-digit growth despite the pandemic,” Lopez said. This year, the majority or 87 percent of the IT-BPM firms expect to book 5-percent to 15-percent growth while 13-percent anticipate f lat growth, according to a survey by the IT and Business Process Association of the Philippines. Employment in the IT-BPM industry grew by 1.8 percent to 1.32 million while revenues rose by 1.4 percent to $26.7 billion last year.

Southeast Asian countries Thailand, Indonesia, and Malaysia as well as ot her A sian countr ies l i ke Ind ia, Japan, Korea, and China. However, the pandemic was able to fasttrack the growth of the digital economy in other countries like the Philippines.

Quoting the results of a survey by Bain & Company, Google, and Temasek in 2020, ADB said the average Internet use in the Philippines increased to 5.2 hours per day during the pandemic from the pre-pandemic baseline of 4 hours. It also noted the growth of digital

communication platforms which experienced exponential growth in traffic and subscription during the pandemic. ADB said Zoom Video Communications Inc. reported an estimated 467,100 paying customers at the end of the fourth quarter of 2020, increasing by 470 percent year-on-year. Further, the report said Microsoft Teams’ daily active users jumped to 115 million in October 2020 from 20 million users in November 2019. The report also noted that based on the 2020 financial reports, revenues of Zoom increased 325.8 percent; Netflix 24 percent; Facebook, 21.6 percent; and Microsoft, 13.6 percent. “Large firms that operate videoconferencing, business processes, social media, streaming, ecommerce, delivery, and other digital services platforms have recorded revenue growth during the pandemic,” the Manila-based multilateral development bank said. However, efforts to better measure the digital economy are also crucial. ADB said a consensus must be reached in terms of establishing a framework to estimate the digital economy. The report proposed a definition of the core digital economy and an input-output analytical framework to measure it. Applying this framework to selected economies and years, it finds that the digital economy and digitally dependent industries contribute a significant portion of gross domestic product. The report also examined key digital economy phenomena and trends in relation to sectoral links, temporal price changes, jobs, global value chains, the Covid-19 pandemic, and Industry 4.0.

CTRP. . .

Continued from A1

The law also cuts the regular CIT rate by 10 percentage points, from 30 percent to 20 percent, for domestic corporations with a taxable income of P5 million and below, and with total assets of not more than P100 million. Domestic corporations that earn a taxable income above P5 million benefit from an immediate reduction of the CIT rate from 30 percent to 25 percent. Foreign corporations currently paying the regular rate will also enjoy a reduced 25-percent CIT rate. As for the FIST law, it is seen to dent revenues by P2.89 billion in 2023, bigger than the projected P1.97 billion foregone revenues in 2022. Seen to cushion the impact of the pandemic on the financial sector, the FIST bill allows financial institutions to off load nonperforming assets (NPAs) by selling them to asset management firms so they could lend more to pandemic-hit businesses. Bernadette D. Nicolas

www.businessmirror.com.ph

Budget. . .

Continued from A1

by 9.21 percent to reach P256.1 billion from P234.5 billion in the same month last year. Most of the revenues for the month came from tax sources at P229.8 billion and the rest, from non-tax sources at P26.3 billion. Expenditures in the same month stood at P377.3 billion, inching up by 0.69 percent from P374.7 billion in July 2020. The Treasury attributed the “modest increase” in government expenditures” to higher personnel services expenditures and infrastructure outlays which were offset by the one-off Social Amelioration Program implemented in July last year. Apart from this, the timing of subsidy releases to the Philippine Health Insurance Corporation and National Housing Authority also weighed down on the growth of disbursements for the period.

7-month deficit widens

Despite the narrower budget deficit in July, the cumulative budget deficit for the seven-month period widened to P837.3 billion, up by 19.5 percent compared to P700.6 billion in the same period in 2020. Government expenditures from January to July this year jumped by 8.18 percent to P2.58 trillion from last year’s P2.39 trillion. Meanwhile, revenues in the seven-month period went up by 3.47 percent to P1.75 trillion from P1.69 trillion in the same period last year. The bulk of revenues came from tax sources—90 percent or P1.573 trillion of the total revenue collection; the balance of P173.2 billion came from non-tax sources. For the first semester, the Treasury said the deficit-to-GDP ratio rose to 7.86 percent from last year’s level of 6.53 percent as expenditure growth outpaced revenue collection. In 2020, the government’s budget deficit more than doubled to a record-high 7.6 percent of GDP or P1.37 trillion, from only P660.2 billion or 3.4 percent of GDP in 2019. The Department of Finance sees the government returning to its pre-pandemic budget deficit and debt levels as early as 2024 or by 2025. From a record-low debt-to-GDP ratio of 39.6 percent in 2019, the country’s debt as a share of the economy surged to a 14-year-high of 54.6 percent in 2020, as the government ramped up borrowings to fund the Covid-19 pandemic response war chest. Finance Secretary Carlos Dominguez III said they are working on a fiscal consolidation plan to bring down the government’s debt and budget deficit levels as a share of the economy.

Pandemic. . .

Continued from A1

Based on ADB’s survey data from eight developing countries from the Association of Southeast Asian Nations (Asean), including the Philippines, 54.9 percent of households reported financial difficulty. Of these households, 83.3 percent reduced their consumption or expenditures; 49.6 percent used their cash and savings; 38.4 percent borrowed money from friends and relatives; 35.4 percent deferred their payments and debt reimbursements; and 33.7 percent applied for social or government aid. Regional data also showed 20 percent of these households had to craft self-homemade food or items to sell online; 18.2 percent sold or pawned properties; 14.5 percent borrowed funds from money lenders; 14.2 percent borrowed from commercial and policy banks; 13.8 percent sold merchandise stock at low prices; 12.9 percent borrowed from microfinance institutions; and 1.6 percent said they could not take action as the lockdown was imposed. ADB said data showed the pandemic is threatening Asia and the Pacific’s progress toward critical targets under the SDGs. The pandemic pushed an estimated 75 million to 80 million more people in developing Asia into extreme poverty as of last year, compared with what would have happened without Covid-19. Assuming that the pandemic has increased inequality, the relative rise in extreme poverty—defined as living on less than $1.90 a day—may be even greater. Progress has also stalled in areas such as hunger, health, and education, where earlier achievements across the region had been significant, albeit uneven. Key Indicators presents comprehensive economic, financial, social, and environmental statistics for ADB’s 49 regional members.

Extreme poverty According to the report, about 203 million people or 5.2 percent of developing Asia’s population lived in extreme poverty as of 2017. Without Covid-19, that number would have declined to an estimated 2.6 percent in 2020. Asia and the Pacific’s economy has grown at a robust pace in recent years and contributed as much as 35 percent to global gross domestic product (GDP)—in current US dollars—in 2019. Covid-19, however, took a toll just when weaker domestic investment and slowing global trade and economic activity were starting to challenge this momentum. Among reporting economies in Asia and the Pacific, only about 1 in 4 posted GDP growth last year. The region lost about 8 percent of work hours due to mobility restrictions, deeply affecting poorer households and workers in the informal economy. The Key Indicators report includes a special supplement introducing a practical framework for measuring the digital economy and its growing role in modern life, which has been particularly evident during the pandemic. Cai U. Ordinario

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The Nation BusinessMirror

Editor: Vittorio V. Vitug • Wednesday, August 25, 2021 A3

Health-care institutions told: Stop ‘defrauding’ PhilHealth By Joel R. San Juan @jrsanjuan1573

HE Supreme Court has warned health-care institutions to stop employing unscrupulous methods and schemes just to be able to avail of benefits from the Philippine Health Insurance Corp. (PhilHealth), the country’s national health insurer. In a 13-page decision penned by Associate Justice Ramon Paul Hernando in the case of PhilHealth versus Urdaneta Sacred Heart Hospital (USHH), the Court’s Third Division noted that the current Covid-19 pandemic has

“stretched to its limit” the financial resources of not only of PhilHealth, but of the entire nation as a whole. Thus, the Court said, all sectors in the health industry should use the current health crisis as “a platform to better ourselves and an opportunity to craft and implement needed reforms in our public health-care system.” “At this juncture, it’s well to remind accredited health-care institutions to deal with PhilHealth responsibly, honestly, and with integrity and refrain from employing unscrupulous methods like actively recruiting patients just so they could avail of PhilHealth benefits,” the SC said.

“Likewise, PhilHealth members and its officials are similarly exhorted to act with prudence and without any corrupt motives. Medical practitioners should not also allow themselves to be drawn into this unethical practice,” the Court added. The SC issued the call after it reversed and set aside the Court of Appeal’s decision issued on March 21, 2014 and resolution dated September 17, 2014, which affirmed the ruling issued by the lower court directing PhilHealth to reimburse USHH the amount of P1.47 million plus legal interest from May 2010 as actual damages and P100,000 in attorney’s

fees and P3,500 per hearing, as ad by way of appearance fees. The USHH filed the complaint against PhilHealth for its failure to pay or act upon its remaining 160 reimbursement claims for cataract treatments or surgeries underwent by its patients. In upholding the lower court’s decision, the Appellate Court noted that contrary to PhilHealth’s contention, USHH’s claims, which involved surgeries or treatments done in December 2008 up to March 2009, were not performed during medical missions, as declared by PhilHealth’s own fact-finding verification report. This prompted PhilHealth to el-

evate the issue before the SC, arguing that USHH clearly violated the laws, rules and regulations under the National Health Insurance Act of 1995 as the treatments and surgeries were actually performed in the course of medical missions. PhilHealth also pointed out that some of the claims of USHH were still subject for review, investigation and processing and that administrative cases had been filed against the USHH and several of its affiliated ophthalmologists for violation of the provisions of NHI Act of 1995, particularly for breach of warranties of accreditation, which involve the same issues in the instant case.

PhilHealth discovered that from December 2008 to March 2009, the period covered by the claim, USHH and several of its doctors conducted the screening of patients from several municipalities in Pangasinan. It noted that USHH and its doctors employed seekers who went from one barangay to another, recruiting patients with cataract problems. The petitioner added that the free cataract screenings and subsequent operations were conducted under suspicious conditions as to constitute as medical missions given that these procedures were performed pursuant to USHH’s Sagip Tanaw Project.

WHO profits from mega parking lot for funds? Recto wants to know “What happened is this: the PSDBM and PITC have become like cryogenic chambers that deep-freeze funds. The PITC for example, still has P355 million worth of goods and projects to be delivered out of orders made in 2016,” he said.

Recto added, “The RITM building with a project cost of P864 million, it was only in 2017 when the funds were transferred, and the opening of bids took place in March.” Noting that the same delays plagued subcontracted procure-

ments to PS-DBM, Recto said: “So the mystery is, if PS-DBM has been plagued with delays in the delivery of goods. If it has this huge backlog of deliverables, then why would the Department of Health contract them to buy things we urgently need to

defeat the pandemic?” The senator said, “it also boggles the mind on why agencies would surrender their funds to a small agency which does not have the expertise to vet highly technical purchases.” He added: “Trains, planes and

ships have been procured by DBM, which is way over their head as they are more familiar with common-use office supplies like paper and pen.” Recalling that in 2020, PITC booked an income of P199.8 million, of which P137 million came

from outsourced procurement, Recto added that PS-DBM’s 2020 revenue on the other hand reached P1.02 billion, with sales accounting for P877 million and service fees as procuring agent contributing P21.6 million.

PhilHealth circular halting payments of claims reviewed

“Perhaps, PhilHealth can walk us through the rationale of this circular, especially on its impact on the hospitals and health-care institutions or providers and in the delivery of health services; while the hospital groups can tell us what they see as the possible repercussions of the circular and what compromise can be made so we can move on to address the more pressing concerns of delivering health services to the public amid the Covid-19 health crisis,” she added. Moreover, PhilHealth acting senior manager Dr. Lambert David said the temporary suspension of payment of claims was merely updated and the recent circular was “issued in the spirit of proper fund management and fraud control.” David also said PhilHealth is following several guidelines before issuing TSPCs. PhilHealth also assured its members and accredited providers

that all valid claims would not be affected by the policy. According to David, only 0.21 percent of the total 9,496 accredited health-care providers were issued TSPC as of July 31, 2021. He said PhilHealth will continue to receive and process all claims with TSPC but the payment will be put on-hold. Under the circular, the PhilHealth has 120 days to investigate unless extended to warrant investigation, which will not exceed 90 days. It will be automatically lifted after 120 days when, after investigation, no evidence of an offense is found. PhilHealth acting senior manager Ernesto Barbado said their Fact Finding Investigation and Enforcement Department is resolving issues with hospitals with urgency, “that is why we imposed a three-day period for the hospital to answer the allegations of the findings.”

‘Strong doubt’

PHILIPPINE Hospital Association President Jaime Almora expressed “strong doubt” on the timing of the release of the TSPC circular. Almora said the PhilHealth circular was released amid mounting pressure for them to pay hospitals. From January 2020 to June 2021, he reported a total of P86.1 billion of PhilHealth claims not paid to hospitals—comprising inprocess claims with P25.7 billion, return-to-hospital claims with P46.6 billion, and denied claims with P13.8 billion. “ T he hospita ls and doctors were alarmed. They were naturally piqued. The circular came at a time when hospitals and health-care providers are suffering...from fatigue and exhaustion, financial hardship,” he added. “The circular was released amid mounting pressure for PhilHealth

to pay the hospitals. The pressure is from government-regulating bodies,” Almora added. With this, Almora said the Board of Directors and Officers of the PHA, the Private Hospital Associations of the Philippines, and the President of the Philippine Medical Associations and other health-care providers, decided to review their engagement with PhilHealth and continue negotiating with PhilHealth. He said the circular will not only affect health-care providers but patients as well. Meanwhile, Almora recommended measures to resolve the issues with PhilHealth, including the removal of policies that create too much financial risk for hospitals, administration of due process by hiring a third party composed of medical experts as jury, and installing a representative of health-care providers in the governing board of the PhilHealth.

continued from a12

A4 Wednesday, August 25, 2021 • Editor: Vittorio V. Vitug

Economy BusinessMirror

SB Corp. readies shipping loan facility for exporters By Tyrone Jasper C. Piad @TyronePiad

HE Small Business Corporation (SB Corp.) is set to open a lending facility for exporters this week to assist their financing needs for the shipping of their products, the Department of Trade and Industry (DTI) said. Trade Secretar y R amon M. Lopez told the BusinessMirror that the financing firm will soon start accepting applications for the shipping loans, which is payable up to 90 days from shipment date. The trade chief said the Export Development Council requested for the financing program, targeting the exporters who are ready to ship their products as the borrowers. “The SB Corp. financing will

help our exporters get a reservation slot in the ship carriers in a timely manner,” Lopez said. “Due to global need for vessel space, some shipping companies are asking for advanced payment so these financing are really needed at these challenging times to sustain our export growth momentum.” The global supply chain has been dealing with constraints in shipment deliveries brought about by container imbalance amid the pandemic. This has resulted in major delays, affecting the exporters’ revenues and production. According to industry sources, the shipment delays are seen to persist even after the Christmas rush, noting that the second half of the year is the peak shipping season. The Philippine Exporters Confed-

eration Inc. (Philexport) welcomed the opening of the lending window for the exporters amid surging freight costs. “The shipping rates were already high [in the] first half of the year from 3 to 4 times previous freight cost,” Philexport Chairman George T. Barcelon told the BusinessMirror. Exporters from different sectors, including furniture and garments, have previously raised the alarm on the freight increase as this adversely impacts their financials. Ma. Flordeliza C. Leong, Philexport vice president for advocacy, communications and special concerns, even recently told the BusinessMirror that “many food orders had been canceled already due to the huge freight rate increase.” The current situation was even exacerbated by the closure of a

port in China, Barcelon said, as this is seen to further increase freight rates. “The SB loan would help financially tide exporters over, both small and medium establishments,” he added. In June, SB Corp. and the Alliance of Concerned Truck Owners and Organizations (ACTOO) inked a memorandum of agreement, extending a loan program to qualified truck owners as aid to the logistics sector’s recovery. Over 2,000 ACTOO members may apply for loans, which are not subject to interest and collateral. Those who can submit financial statements may secure loans amounting to P600,000 to P5 million, while those without may apply for borrowings between P10,000 to P200,000.

DA lifts ban on poultry products from Ukraine By Jasper Emmanuel Y. Arcalas @jearcalas

HE Department of Agriculture (DA) has lifted the temporary import ban on poultry products from Ukraine after the country regained its freedom status from highly pathogenic avian influenza (HPAI) or bird flu. Agriculture Secretary William D. Dar issued Memorandum Order (MO) 47 that authorized the lifting of the temporary import ban on

domestic and wild birds and their products from Ukraine. The DA based the MO on the final report submitted by Ukrainian veterinary authorities to the World Organisation for Animal Health (OIE), disclosing that its previous HPAI outbreaks are now “closed and resolved.” Citing the OIE Terrestrial Animal Health Code of 2019 Chapter 10.4 article 10.4.3, the DA noted that Ukraine is now free from HPAI. “Based on the evaluation of the

Department of Agriculture, the risk of contamination from importing poultry meat, day old chicks, eggs and semen is negligible,” Dar said in the MO dated August 23. “By the power vested in me by law, do hereby lift the temporary ban on the importation of domestic and wild birds and their products originating from Ukraine,” he added. The MO stipulated that poultry imports from Ukraine “shall be in accordance with existing rules and regulations” of the DA and the Bu-

reau of Animal Industry. Ukraine was temporarily banned from exporting any poultry products to the Philippines from January 30, 2020 after it confirmed and reported bird flu outbreaks. Ukraine is not a major source of the country’s poultry imports. The Philippines imposes a temporary import ban on countries that have confirmed bird flu outbreaks to prevent the entry of the animal disease in the country and protect domestic poultry population.

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Govt urged to cap WESM prices, allow players secure financing for RE projects By Lenie Lectura

@llectura

N energy finance analyst has recommended that government adopt a price “guarantee” for merchant plants that sell their output at the Wholesale Electricity Spot Market (WESM) in order to secure financing for their renewable-energy (RE) projects. Sarah Jane Ahmed of the Institute for Energy Economics and Financial Analysis (IEEFA) said last week in a webinar on energy transition implications on the fiduciary responsibilities of corporate directors that this move could satisfy operators of merchant plants and banking sector’s requirements, while government hits its goal of boosting RE capacity in the Philippines. “Perhaps a guarantee that is within the spot market system for merchant plants so, in that way, they have their minimum price, whatever that is, to be determined by the regulator [Energy Regulatory Commission], DOE [Department of Energy], as well as feedback from the banks,” she said. Ahmed explained that this proposal would further unlock the power spot market to function, while bringing in financial surety. Further, she pointed out, this will not support any specific players. “Anyone could have this opportunity and that’s what we want to bring in—new participants in the market. We want to encourage new recognition that renewables has a role to play in our system,” she said. RE players, particularly those that do not have power-supply contracts, are having difficulty in securing bank financing. If the power plant is not covered by any offtake agreement, the power project’s viability is put at risk. As such, no bank will take a chance to extend financ-

ing because most of the banks fund projects that actually make money and are profitable. For those that do not have supply contracts, they have no choice but to sell their output at the electricity spot market. WESM prices, however, are volatile. For August, WESM prices hover at P5.03 per kilowatt-hour (kWh), lower than July’s P6.52 per kWh. According to the Independent Electricity Market Operator of the Philippines (IEMOP), WESM price is somehow attributable to supply and demand. The WESM operator noted that the colder weather and implementation of the community quarantine resulted in the lowering of prices as opposed to summer. There was also an increase in average supply for August compared to the previous month. Bank of the Philippine Islands (BPI) Vice President Jo Ann Eala said WESM prices should be above the borrower’s break-even cost. “If WESM prices will not give them sufficient money to pay the monthly amortization then that is a problem. To pay, WESM prices should be above your break even cost since you also have to account other possible expenses that have to be added to that break-even production cost,” he said. Eala added: “We would not take our chances because WESM is a market and there is no floor price. At the end of the day, banks like BPI and BDO are also listed companies and owned by the public. If we get into trouble because of lending left and right, without taking into account those who may not be able to pay, then we will forego our responsibilities to the public as well.” “If you talk to a private bank with responsibilities to public stakeholders, there are certain limitations as to what we could take,” he said. Eduardo Francisco, president of BDO C apital, said BDO would continue to look for ways on how it can help RE firms finance their projects. But hav ing no contract makes it difficult to extend financing. “The size of the debt is not a problem. We can amortize it anyway, but if there is no cont rac t, I guess that’s the issue. You have to protect the bank. We want to get paid. Otherwise, it will just be a stranded asset.” DOE Undersecretary Fe l i x W i l liam Fuentebella recognized these c h a l lenges. Nonetheless, he urged, everyone to be more understanding. “I know that a lot of RE committed and indicative projec t s fa i led to secure financing or achieved financial closing. This is a tough task. There should be a give and take,” he said.

BusinessMirror

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Wednesday, August 25, 2021

Republic of the Philippines

DEPARTMENT OF LABOR AND EMPLOYMENT Regional Office No. IV-A 4th Flr. Andenson Bldg. II, Brgy. Parian, Calamba City Telefax No.: (049) 545-7362

Mr. LONG WANG Chinese

Mandarin Customer Service Manage incoming calls and customer service inquiries.

Php30,000.00+++/month

Mr. TIANWEN ZHENG Chinese

Mandarin Customer Service Manage incoming calls and customer service inquiries.

Php30,000.00+++/month

Name and Citizenship of Foreign National

Position and Job Description

Salary Range

Mr. NAOKI YAMAMOTO Japanese

Executive Coordinator (Quality Management) Report major problems concerning the production to the top management for proper action.

Php480,000.00+++/ annum

August 25, 2021

NOTICE OF FILING OF APPLICATION FOR ALIEN EMPLOYMENT PERMIT (AEP)

Notice is hereby given that the following employers have filed with this Regional Office application/s for Alien Employment Permit/s. Name and Address of Employer: KONGENT INC. Amaya I, Tanza, Cavite Name and Citizenship of Foreign National

Mr. QUNMING CAI Chinese

Position and Job Description

Salary Range

Warehouse Manager Maintain warehouse, receiving and distribution Php600,000.00+++/ operations by initiating, coordinating and enforcing annum program, operational and personnel policies and procedures.

Name and Address of Employer: SJ E&I INC. Brgy. Pinamucan Ibaba, Batangas City, Batangas

Name and Address of Employer: PILIPINAS KYOHRITSU INC. Bo. Inosloban, Lipa City, Batangas

Name and Citizenship of Foreign National

Position and Job Description

Salary Range

Mr. SEONGGON YOO Korean

Material Manager Manage inventory and purchasing procedures of materials based on construction plans.

US$2,000.00+++/month

Name and Address of Employer: HEWTECH PHILIPPINES CORP. CIP II, Calamba City, Laguna

Name and Address of Employer: SMART WIN TECHNOLOGY, INC. San Francisco (Halang), Biñan City, Laguna Name and Citizenship of Foreign National

Position and Job Description

Name and Citizenship of Foreign National

Position and Job Description

Salary Range

Mr. KAZUAKI SHIOZAWA Japanese

Tube Assembly Manager/Operations Manager Manage and supervise production flow.

US$1850.00+++/month

Name and Citizenship of Foreign National

Position and Job Description

Salary Range

Mr. MING CHANG Chinese

Chinese Customer Service Manage incoming calls and customer service inquiries.

Php50,000.00+++/month

Mr. BIN CHEN Chinese

Chinese Customer Service Manage incoming calls and customer service inquiries.

Php50,000.00+++/month

Mr. ELVIN WONG Malaysian

Chinese Customer Service Manage incoming calls and customer service inquiries.

Php50,000.00+++/month

Mr. JIUMING GUO Chinese

Chinese Customer Service Manage incoming calls and customer service inquiries.

Php50,000.00+++/month

Mr. FEI LI Chinese

Chinese Customer Service Manage incoming calls and customer service inquiries.

Php50,000.00+++/month

Mr. PENG LU Chinese

Chinese Customer Service Manage incoming calls and customer service inquiries.

Php50,000.00+++/month

Salary Range 1.

Mr. JIHUI ZOU Chinese

Mr. SHUO SONG Chinese

Chinese Customer Service Representative Field incoming help requests from end users from the People’s Republic of China via telephone and work orders in a courteous manner.

Mandarin Customer Service Representative Field incoming help requests from end users from the People’s Republic of China via telephone and work orders in a courteous manner.

Php40,000.00+++/month Name and Address of Employer: MOA CLOUDZONE CORP. Binakayan-Pulvorista, Kawit, Cavite

Php40,000.00+++/month

Mr. XUHANG ZHANG Chinese

Mr. WEI LIANG Chinese

Mr. CHUANXIAO GU Chinese

Mr. XIANG CAO Chinese

Ms. TONG CAO Chinese

Chinese Customer Service Representative Field incoming help requests from end users from the People’s Republic of China via telephone and work orders in a courteous manner.

Php40,000.00+++/month

Chinese Customer Service Representative Field incoming help requests from end users from the People’s Republic of China via telephone and work orders in a courteous manner.

Php40,000.00+++/month

Chinese Customer Service Representative Field incoming help requests from end users from the People’s Republic of China via telephone and work orders in a courteous manner.

Php40,000.00+++/month

Name and Address of Employer: CANON BUSINESS MACHINES (PHILIPPINES), INC. FPIP, Tanauan City, Batangas

Name and Address of Employer: SEIWA KAIUN PHILIPPINES, INC. Phase II Golden Gate Business Park, CEPZ, General Trias, Cavite

Name and Citizenship of Foreign National

Position and Job Description

Salary Range

Mr. TSUTOMU KIRIHATA Japanese

Production Control Department 2 (PDC2) Manager Oversee production schedules and activities.

Php167,079.00+++/ month

Name and Citizenship of Foreign National

Position and Job Description

General Manager Mr. TAKERU HASEGAWA Manage the day-to-day operations, assign daily Japanese performances and assure their completion, while accomplish own goals.

Salary Range

Php75,000.00+++/month

Name and Address of Employer: BRICKHARTZ TECHNOLOGY INC. Lot 4044 Molino Blvd. Niog III, Bacoor, Cavite Name and Citizenship of Foreign National

Position and Job Description

Salary Range

Mr. MEISHAN ZHU Chinese

Mandarin Customer Service Manage incoming calls and customer service inquiries.

Php30,000.00+++/month

Mr. XU ZHU Chinese

Mandarin Customer Service Manage incoming calls and customer service inquiries.

Php30,000.00+++/month

Any person in the Philippines who is competent, able and willing to perform the services for which the foreign national is desired may file an objection at the DOLE Regional Office within 30 days from the date of publication. Please inform the DOLE Regional Office if you have an information of any criminal offense committed by the foreign nationals.

To avail of free job referral, placement, and employment guidance services, visit the nearest Public Employment Service Offices (PESO) or log on at http://www.philjobnet.gov.ph

Wednesday, August 25, 2021

TheWorld BusinessMirror

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

Harris blasts China’s coercion, intimidation in South China Sea I

India to resume Covid vaccine exports in 2022, official says

INGAPORE—US Vice President Kamala Harris delivered a sharp rebuke to China for its incursions in the South China Sea, warning its actions there amount to “coercion” and “intimidation” and affirming that the US will support its allies in the region against Beijing’s advances. “We know that Beijing continues to coerce, to intimidate and to make claims to the vast majority of the South China Sea,” she said in a major foreign policy speech Tuesday in Singapore in which she laid out the Biden administration’s vision for the Indo-Pacific. “Beijing’s

actions continue to undermine the rules-based order and threaten the sovereignty of nations.” Harris, who is on a weeklong swing through Southeast Asia, declared that the US “stands with our allies and our partners” in the face of threats from China. The speech sought to cement the US commitment to supporting its allies in an area of growing importance to the Biden administration, which has made countering China’s influence globally a centerpiece of its foreign policy. And it came during a critical moment for the United States, as the

Biden administration seeks to further solidify its pivot towards Asia while America’s decades-long focus on the Middle East comes to a messy end with the chaotic withdrawal from Afghanistan. Harris underscored this shift, calling the Indo-Pacific “critically important to our nation’s security and prosperity.” She said that while the US is focused on closing out its Afghanistan engagement by evacuating as many people as possible, “it is also imperative that as we address developments in one region, we continue to advance our interests in other regions, including this region.” Her rebuke to Beijing amounted to her sharpest comments yet on the US foe. But Harris was careful to emphasize that the US is seeking greater engagement in the IndoPacific region not just to counter China, but also to advance an “optimistic vision that we have for our participation and partnership in the region.” In deference to Singapore’s staunch neutrality in the US-China dispute, Harris also affirmed that the US isn’t looking to “make anyone choose between countries.” Speaking in a country that serves as the anchor of the US naval presence in Southeast Asia, Harris emphasized the significance the region holds for US defense. She also emphasized the significant US economic ties there, noting that Southeast Asia represents America’s fourth largest export market. On Monday, Harris told sailors aboard a US combat ship at the Changi naval base in Singapore that “a big part of the history of the 21st century will be written about this very region” and that their work defending the region was pivotal. “It is in our vital interest to stand united with our allies and our partners in Southeast Asia in defense of a free and open IndoPacific,” she said. Harris also met Monday with Singapore President Halimah Yacob and Prime Minister Lee Hsien Loong. The vice president’s office announced a number of agreements out of that meeting aimed at combating cyberthreats, tackling

climate change, addressing the Covid-19 pandemic and alleviating supply chain issues. After her speech Tuesday, Harris held a roundtable discussion with business leaders on supply chain issues. Later, she planned to t ravel to Viet na m, where she’ ll meet with top officials Wednesday. President Joe Biden himself has repeatedly emphasized his focus on China as one of America’s main adversaries. In recent months, his administration has ramped up outreach to the Indo-Pacific region, with Defense Secretary Lloyd Austin and Deputy Secretary of State Wendy Austin both visiting the area in the spring and summer. Secretary of State Antony Blinken also held a number of virtual meetings with Southeast Asian officials earlier this month. The chaotic US withdrawal from Afghanistan, however, complicated that message of support to the region, raising questions about the US commitment to its allies. While Biden said last week that an indefinite engagement would have benefited “true strateg ic competitors” China and Russia, China has seized on the images of violence from the evacuation to slam the US for its engagement there. C h i nese Foreig n Mi n i st r y spokesperson Wang Wenbin said Monday that the US had done “unscrupulous and dishonest things” in Afghanistan and called on the nation to help rebuild. “The United States is the root cause and the biggest external factor in the Afghan issue,” Wenbin said. “It cannot just run away like this.” But Harris, during a joint news conference with Prime Minister Lee on Monday, said that her presence in the country, combined with the agreements around greater cooperation that the Biden administration has pursued with Indo-Pacific countries, speak “volumes in terms of the integrity of the relationships that the United States has around the world on many issues.” AP

More evacuations ordered ahead of Minnesota wildfire

SABELLA, Minn.—Authorities ordered more evacuations Monday near a quickly spreading wildfire that’s one of several burning in northeastern Minnesota. The Lake County Sheriff ’s Office said the new evacuations were happening near Grouse Lake and Mitewan Lake because of the growing Greenwood Lake fire, about 15 miles (24 kilometers) southwest of the town of Isabella in the Superior National Forest. Around 50 homes and cabins were covered by the order. The evacuations follow the clearance of more than 100 homes and cabins in the area last week. The lightning-caused fire, which was first detected Aug. 15, had burned around nearly 14 square miles (36 square kilometers) as of Monday morning, which was unchanged from Sunday. But Clark McCreedy, public information officer for the interagency team managing the fire, said there was “substantial fire growth” Monday afternoon. The Greenwood Lake fire is one of several fires burning within the Superior National Forest. They prompted the closure of the Boundary Waters Canoe Area Wilderness in Saturday for the first time in 45 years. Authorities said

the closure allows crews to focus on existing and new fires and not camper safety. Rangers continued Monday to paddle and hike out to visitors in the vast wilderness area to alert them of the closure, which is scheduled to run at least through Friday. Meanwhile, firefighters were working Monday to contain a dozen large northern California wildfires that have destroyed hundreds of homes and forced thousands of people to flee to safet y. A nd a w i ldf ire that’s burned about 200 acres on Michigan’s remote Isle Royale prompted the National Park Ser vice to close some trails and campground areas on the wilderness island in Lake Superior. The Greenwood Lake fire was threatening to cross Minnesota Highway 1, an east-west route through the forest that connects Ely with Lake Superior near Silver Bay. The highway had been closed near the fire as a precaution since last week. Also closed is Lake County Highway 2, which the fire jumped Friday. A new Red Cross evacuation center was opened at the ice arena in Babbitt, well west of the fire, to complement one set up last week in the town of Finland, safely east of the fire. AP

ndia will likely restart exporting Cov id-19 vaccines next year once it has immunized its own adult population, the head of an influential government expert panel said. “Almost 60 countries are hardly having any access to vaccine and India should be able to provide a substantial portion in 2022,” N.K. Arora, chairman of the National Technical Advisory Group on Immunization in India, said in an interview with Bloomberg Television on Tuesday. “As soon as we are through with our adult population we should have sufficient vaccine to share with the rest of the world.” The South Asian nation, which has the second-largest Covid outbreak with 32.5 million infections, should have six locally developed shots by the end of 2021, Arora said. As the head of vaccine advisory group, he helps the Indian federal government evaluate new vaccines as well as review data from those already rolled out. Home to the world’s biggest vaccine-producing industry, India earlier this year was shipping out shots to poorer nations amid Prime Minister Narendra Modi’s muchtouted vaccine diplomacy. There was also an expectation that the country would be a major supplier to the World Health Organizationbacked Covax effort for global equitable access to these vaccines. But the onset of a devastating second-wave of infections and local supply delays prompted the government to prioritize its own citizens and halted overseas shipments in April. Covax has since struggled to make up for the shortfall, looking instead to countries such as China to fill the gap as India slowly bolsters its own capacity. A boosted portfolio of vaccines by the year-end should cover Indian government’s plans to fully

immunize 920 million adults, Arora said. “That means our requirement will be 1.8 million doses by that time,” he said. “The way our pipeline is we should be able to reach and meet our target by the end of the year.”

Upcoming production

Already vaccines from AstraZeneca Plc—churned out by the Serum Institute of India Ltd.—and Bharat Biotech International Ltd. are being widely deployed in the country, while doses from Cadila Healthcare Ltd. and Russia’s Sputnik V are expected to begin local production in coming months. Serum, the country’s largest supplier, should be raising its monthly contribution to about 150 million doses from almost 120 mi l l ion shots cur rent ly, Arora said. By September, Bharat Biotech will provide about 120 million doses after “some initial glitches.” Other Indian vaccine makers, Biological E. Ltd. and Genova Biopharmaceuticals Ltd., should also start contributing to the supplies, he said. India has so far administered more than 589 million doses, but even that huge coverage has only fully vaccinated about 10 percent of the population, according to Bloomberg’s vaccine tracker. Arora said that India isn’t looking to imported vaccines to help boost its own supplies. The country has been negotiating with foreign vaccine makers, such as Pfizer Inc., over legal indemnity clauses that the companies are demanding but there’s been no breakthrough yet. “We are totally, kind of, banking on indigenously manufactured vaccines,” he said. “Our estimates on supply lines do not take into account any of the vaccines from abroad.” Bloomberg News

US regulators give full approval to Pfizer’s coronavirus vaccine

ASHINGTON—The US gave full approval to Pfizer’s Covid-19 vaccine on Monday, potentially boosting public confidence in the shots and instantly opening the way for more universities, companies and local governments to make vaccinations mandatory. The Pentagon promptly announced it will press ahead with plans to force members of the military to get vaccinated amid the battle against the extra-contagious Delta variant. The University of Minnesota likewise said it will require its students get the shot, as did Louisiana’s major public universities, including LSU, though state law there allows broad exemptions. More than 200 million Pfizer doses have been administered in the US under emergency provisions—and hundreds of millions more worldwide—since December. In going a step further and granting full approval, the Food and Drug Administration cited months of real-world evidence that serious side effects are extremely rare. President Joe Biden said that for those who hesitated to get the vaccine until it received what he dubbed the “gold standard” of FDA approval, “the moment you’ve been waiting for is here.” “Please get vaccinated today,” he said. Pfizer CEO Albert Bourla called the FDA’s action “an important milestone that I think will unlock some of the more skeptical minds.” Pfizer said the US is the first country to grant full approval of its vaccine, in a process that required a 360,000-page application and rigorous inspections. Never before has the FDA has so much evidence to judge a shot’s safety. The formula, jointly developed with Germany’s BioNTech, will be marketed under the brand name Comirnaty.

Moderna has also applied to the FDA for full approval of its vaccine. Johnson & Johnson, maker of the third option in the US, said it hopes to do so later this year. Just over half of the US population is fully vaccinated. Vaccinations in this country bottomed out in July at an average of about a half-million shots per day, down from a peak of 3.4 million a day in mid-April. As the Delta variant fills hospital beds, shots are on the rise again, with a million a day given Thursday, Friday and Saturday. Full approval of Pfizer’s Covid-19 vaccine means it meets the same “very high standards required of all the approved vaccines we rely on every day,” said Dr. Jesse Goodman of Georgetown University, a former FDA vaccine chief. That should help “anyone who still has concerns gain confidence” in the shots. Earlier this month, Defense Secretary Lloyd Austin said he would seek the president’s OK to make the vaccine mandatory by mid-September or once the FDA grants final approval, whichever comes first. On Monday, after the FDA acted, the Pentagon said guidance on vaccinations will be worked out and a timeline will be provided in the coming days. The approval also opened the way for swift action by colleges to require vaccines and solidified the legal ground for hundreds of universities that have already issued mandates for students and staff. The public university systems in Louisiana and Minnesota had been waiting for FDA action before making vaccinations mandatory. Louisiana has become a Covid-19 hot spot, repeatedly breaking records for the number of people hospitalized with the virus. But certain other states forbid universities to require shots, including Texas and Florida. AP

BusinessMirror

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ESTABLISHMENT / ADDRESS No.

NAME OF FOREIGN NATIONAL , POSITION AND BRIEF DESCRIPTION

24 INCH GAUGE CONSTRUCTION INC. L4 Blk. 4 Near Kay Buboy Bridge San Dionisio Parañaque City

CAO, JINE Marketing Specialist 1.

Brief Job Description: Responsible for coordinating with other marketing and sales professionals to implement innovative campaigns for branding or product launches

HONG, QIAOJUAN Marketing Specialist 2.

Brief Job Description: Responsible for coordinating with other marketing and sales professionals to implement innovative campaigns for branding or product launches

WU, YOU-FU Marketing Specialist 3.

Brief Job Description: Responsible for coordinating with other marketing and sales professionals to implement innovative campaigns for branding or product launches

24/7 BUSINESS PROCESSING INC. 5th-6th-7th Flr. 81 Newport Bl Newport City Brgy. 183 Pasay City

CHANG, SEN-TING Customer Service Representative (Chinese Accounts) Brief Job Description: Assists clients will all their concerns.

KHOR CHEE HOI Customer Service Representative (Chinese Accounts) Brief Job Description: Assists clients will all their concerns.

YOO JAY VEN Customer Service Representative (Chinese Accounts) Brief Job Description: Assists clients will all their concerns.

8 STONE BUSINESS OUTSOURCING OPC 5-10/f Tower 1 Pitx Kennedy Road Tambo Parañaque City AYE SANDAR NAING Customer Service Representative Mandarin Speaking 7.