BusinessMirror February 01, 2021 by BusinessMirror

PHL POSTS DECADE-HIGH

Monday, February 1, 2021 Vol. 16 No. 113

P25.00 nationwide | 2 sections 20 pages |

$12.8-B BOP SURPLUS IN ‘20 BICAM PANEL FINALLY OKS CREATE FINAL FORM By Jovee Marie N. dela Cruz @joveemarie

HE congressional bicameral conference committee has already settled all disagreements on the Senate and House of Representatives versions of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE), which seeks to erase the unpredictability in the country’s corporate tax and fiscal incentives system. House Committee on Ways and Means Chairman Joey Sarte Salceda said the bicameral report on CREATE is now awaiting signatures of the members after the bicameral panel successfully reconciled the two versions of the measure late Saturday.

@BNicolasBM

HE country’s transactions with the rest of the world last year registered a dollar surplus of US$12.8 billion, the highest since 2010. It was also the exact revised projection in December by the Central Bank.

Citing preliminary data from Bangko Sentral ng Pilipinas (BSP), Finance Undersecretary and Chief Economist Gil Beltran said the country’s overall Balance of Payments (BOP) surplus last year was

the highest since the country recorded a US$15.24- billion surplus in 2010. “The country generated a BOP surplus of US$12.8B in 2020, helped by slower imports and out-

PESO exchange rates n US 48.1210

Continued on A2

GDP to rebound by around 7% in 2021—economists

In a scene that reminds one of the popular children’s ditty, ‘Spaghetti pababa’ (noodles moving downward) linemen retire old electrical cables along Sitio Lipana, Barangay Pandayan, Inarawan in Antipolo City at the weekend. With summer approaching, a surge in electricity consumption is expected due to rising temperatures, and the Manila Electic Company (Meralco) says a typical household’s electricity consumption goes up by around 30 percent from January to June. BERNARD TESTA By Bernadette D. Nicolas

“I have no doubt that CREATE will bring changes. The influx of deferred investment due to 3 years of uncertainty over incentives will be a deluge. I have been talking with several groups of investors, and they’re ready with the money. They just need the rules,” said Salceda. According to Salceda, $18 billion in foreign direct investments (FDI) were lost over the past three years of uncertainty over the delays in passing the reform. “Now that it’s done, I expect the investment overhang to close. Investors can now stand on more solid footing,” Salceda said. The CREATE is part of Package 2 of the Comprehensive Tax Reform Package of the Duterte administration.

ward payments,” Beltran said in an economic bulletin. The country’s 2020 BOP surplus, which he said was the highest in recent history, was equivalent to 3.5 percent of GDP. In 2019, the country posted a BOP surplus of US$7.84 billion. While the BSP has yet to release the December BOP data this week, the Central Bank back in December revised upward its BOP surplus projection to US$12.8 billion for 2020, up from its previous forecast of US$8.1 billion in September.

Peso stable

Apart from the country’s strong BOP position, Beltran also attributed the Philippine peso’s

“continued strength and stability” to rising Gross International Reserves (GIR). Moreover, he said the peso remained as one of the most stable Asian currencies in 2020, despite rising risks in the global economy, including the Covid-19 pandemic. “During the year, the peso appreciated by 5.18 percent relative to the US dollar, in the middle of the pack of nine Asian currencies including the Taiwan dollar, Chinese yuan, Korean won and Japanese yen which appreciated by 6.33 percent, 6.26 percent, 6.07 percent and 4.94 percent, respectively,” Beltran said. Continued on A12

By Tyrone Jasper C. Piad

@Tyronepiad

FTER contracting by 9.5 percent in 2020, the Philippine economy is poised to rebound by around 7 percent this year, according to a recent economic forecast. Makoto Tsuchiya, economist at Oxford Economics, said in a recent report that the country’s gross domestic product (GDP) is anticipated to rise by around 7.7 percent this year amid eased lockdown restrictions. “We expect the recovery to continue through this year with growth set to gain a firmer footing in [second half] as the rollout of vaccines should allow for a sustained easing

in restrictions and the recovery in global trade broadens,” Tsuchiya said. “In particular, the recovery in construction should gather pace due to a catch-up in infrastructure investment as social distancing restrictions should ease further, barring another significant wave of outbreak,” he added. Bank of the Philippine Islands (BPI) Lead Economist Emilio Neri Jr., meanwhile, said that the baseline forecast this year stands at 6.8-percent GDP growth. “Assuming that the government will not impose additional restrictions on movement, double-digit GDP growth may be seen during some quarters of 2021,” he explained in a recent report.

n japan 0.4618 n UK 66.0316 n HK 6.2072 n CHINA 7.4606 n singapore 36.2111 n australia 36.9521 n EU 58.3467 n SAUDI arabia 12.8306

Continued on A4

Source: BSP (January 29, 2021)

News

BusinessMirror

A2 Monday, February 1, 2021

PHL, EU restarting trade talks as part of recovery boosters By Samuel P. Medenilla

@sam_medenilla

HE Philippines looks to restart trade talks with the European Union this year as part of efforts to secure economic deals that would boost national recovery. The Philippines and the EU on Friday convened their first subcommittee meeting on trade, investment and economic cooperation under their Partnership and Cooperation Agreement (PCA). The platform provided both sides the opportunity to present ways on how to improve their bilateral trade and investment activities.

DOT…

Likewise, it pave the way for the two camps to zero in on the Generalised Scheme of Preferences (GSP) Plus granted to the Philippines by the economic bloc. According to the EU Delegation to the Philippines, the discussions extended to market access issues, regulatory developments, regional trade agreements, reforms in the multilateral trading system and areas for future engagements and cooperation. The EU side also argued that the subcommittee meetings can be used to keep abreast of prospects on trade and development between the Philippines and the European

Continued from A12

The closure order stated, “The Provincial Epidemiologic and Surveillance Unit of the Province of Aklan, reported that one (1) employee of your hotel was found positive for the presence of SARS-CoV 2. Instead of bringing him out of the island you requested him to be quarantined in your “facility” found acceptable to the Municipal Health Officer, but upon inspection, said person is instead confined in a barracks for security personnel not conducive as a quarantine facility.” Two batches of staff “were tested at Ciriaco,” said the sources who

requested anonymity as they were not authorized to speak on the matter. “[Name of positive worker] was in the first batch. We’re still waiting for the results of the second batch.” All the hotel workers who had been tested, immediately went back to work. “We know after being tested, the staff should not work first until they get their results, but the LGU [local government unit] said it was okay to go back to work since most of the hotels have skeleton staff,” said one of the sources. This was the same thing that

bloc. Talks of a free trade agreement (FTA) had been put on hold during the pandemic, as Manila and Brussels focused on domestic recovery for their respective economies. The subcommittee on trade, investment and economic cooperation was formed after the PCA entered into force in 2019. The first PCA committee meeting took place that year, and that convention mandated the two parties to put up subcommittees to advance talks on trade and economic development. The Philippines and the EU are trying to iron out their issues to push through with their planned FTA that would upgrade, in effect,

the GSP Plus being enjoyed by the Philippines. The GSP Plus allows Philippine exporters to ship a total of 6,274 products to Europe at zero tariff rate. About 25 percent of the country’s exports to EU are covered by the trade privilege, and in 2019 this translated to at least $2.07 billion worth of shipments. However, the EU has repeatedly threatened to take away the country’s benefits over President Duterte’s human-rights record, as well as his administration’s plans to revive the death sentence and lower the minimum age of criminal responsibility.

happened when workers from Shangri-La’s Resort and Spa in Boracay were also tested; they immediately went to work. Fifteen of them were later found to be Covid-positive. (See, Shangri-La Boracay ‘not told’ to quarantine staff after Covid tests,” in the BusinessMirror, January. 26, 2021.)

been isolated in the workers’s staff house beside the hotel instead.” There were also concerns among the staff that an event was allowed to continue at the hotel despite the Covid-positive staff on the premises. “[Name of Worker] was still confined in one of the rooms of the hotel. The CCTV footage can prove this,” said one of the sources. Another source added, “Some managers had asked the GM if it was still wise to proceed with the event [of the Municipal Tourism Office] despite the Covid-positive worker. Of course, they were also concerned with the guests. That was about 50 persons.” But, the source said, the GM told the managers to proceed with the event.

Co-workers to the rescue

According to the sources, it was the hotel staff who had to contact officials so their Covid-positive colleague would be cared for properly. “That barracks [in Tulubhan] have very poor facilities, and not conducive for someone who is sick,” said the sources. “The conditions there were pitiful. Maybe he should have

www.businessmirror.com.ph

5.6-M Pfizer, AstraZeneca doses due in Q1 under Covax facility–Galvez By Claudeth Mocon-Ciriaco

Correspondent

T least 5.6-million vaccine doses produced by PfizerBioNTech and AstraZeneca are expected to arrive in the country within the first quarter to jumpstart the country’s national vaccination program for Covid-19, National Task Force chief and vaccine czar Secretary Carlito Galvez Jr. announced on Sunday. “Today, we received a letter from Aurélia Nguyen, managing director of the World Health Organizationled Covax facility, officially informing the Philippine government that the country stands to receive a total of 9,407,400 doses from the two pharmaceutical makers within the projected first and second quarters of this year,” the statement of Galvez sent to Health reporters read. The letter, according to NTF, added: “With the country demonstrating its preparedness to receive the vaccines, the regional review committees from the WHO, UNICEF, and Gavi have granted us two vaccine brands that have been authorized or very close to being authorized by WHO through an Emergency Use Listing (EUL).” Galvez said, “The arrival of these Covax vaccines is a welcome development as we await the vaccines that we have negotiated, which are expected to be delivered in the succeeding second, third, and fourth quarters of this year.”

The vaccines under Covax can now inoculate healthcare workers, medical-related personnel, and other frontliners, as laid down by the guidance provided by President Duterte to preserve the healthcare system and major institutions of the country. Galvez said the development affirms that under the Covax facility, equitable distribution of vaccines is assured throughout the globe, which bodes well with the administration’s line of “Walang maiiwan, walang iwanan” (No one will be left behind). In its letter, the Covax Facility said the Philippines will receive 117,000 doses of Pfizer-BioNTech vaccines. These are expected to be delivered in mid-February and will cover the first-quarter supply commitment. The delivery confirmation of the supplies for the succeeding quarters will be announced later. The Philippines will receive 5,500,800 to 9,290,400 doses of AstraZeneca vaccines. As the company awaits the issuance of its EUL, the “indicative” numbers of doses reflect only the supply for the first two quarters of 2021. The initial delivery is scheduled by mid to late February as stated in the letter. “I would like to emphasize that according to Covax the number of doses and the projected arrival of the vaccines are all indicative since it all depends on the global supply,” Galvez said. Continued on A4

BICAM PANEL FINALLY OKS CREATE FINAL FORM Continued from A1

The measure will lower corporate income tax from 30 percent, the highest in Asean, to 25 percent for large corporations, and 20 percent for small and medium corporations. Salceda said Congress is eyeing to ratify the bicameral report on Monday or Tuesday. “It’s finished. Both panels are now ready to sign. As far as investment uncertainty over tax regime is concerned, that’s finished. We will sign this weekend, and ratify by Monday or Tuesday,” Salceda added. Salceda said that on the part of the House, the major items the Senate concurred with are: shorter incentives for domestic enterprises, stringent controls against illicit trade in certain ecozones, and longer incentives for all areas outside of National Capital Region. “Once the revenue estimates are out, I believe we will have saved likely P100 [billion] to 120 billion in foregone revenues compared to the initial Senate version,” the House tax panel said. Salceda said that he is “particularly proud of the incentives for countryside enterprises, and tax savings from incentives for domestic enterprises.” Moreover, Salceda, one key concession his panel obtained from the Senate is a shorter—by five years— availment by domestic enterprises of the special corporate income tax (SCIT) or enhanced deductions, compared to the Senate version. Additionally, they have to have an investment capital of at least P500 million to qualify for the SCIT. As for critical domestic industries, they will be able to avail of incentives similar to those of export enterprises. The industries qualified as “critical” will be determined by the National Economic and Development Authority (Neda), as

“arbiter between fiscal health and industrial development,” as Salceda said.

Duty-free vaccine Salceda, meanwhile, said the final version will carry both a VAT exemption and a duty exemption for Covid-19 vaccines until 2025. The bill provides VAT-free importation and sale of Covid-19 medicines, PPEs and PPE components up to December 2023. This, Salceda said, will help expedite Covid-19 procurement, especially by the private sector. “Vaccine rollout is the most important economic stimulus measure. We are happy to report that CREATE/Citira will also help get it done,” Salceda said. The bill provides VAT exemption for medicines for cancer, mental illness, tuberculosis, HIV-AIDS, and kidney diseases beginning January 1, 2021.

The incentives The bill provides up to 17 years of incentives for exporters and for “critical” domestic enterprises, with 4 to 7 years of income tax holiday (ITH) and 10 years of special corporate income tax (SCIT). “Critical” industries will be defined by the Neda. The bill also provides incentives for domestic enterprises up to 12 years of incentives, with 4 to 7 years of ITH and 5 years of SCIT for enterprises with investment capital not less than P500 million, and 5 years of enhanced deductions otherwise. The measure also grants performance-based enhanced deductions to encourage job creation, value added, research and development, training, and the use of local materials with several performance-based enhanced deductions. These include depreciation allowance for assets acquired for the production of goods and services, deduction on labor expense, deduction on research and development, deduction on training expense, additional deduction on domestic input expense, additional deduction on power expense, reinvestment allowance for manufacturing. The bill also enhanced the net operating loss carryover (Nolco). It said the net operating loss not yet offset from gross income for the first three years of operations

can be carried over as deduction from gross income within the next five years following the loss. Also, CREATE lowers the minimum corporate income tax, typically charged against manufacturing corporations, from 2 percent to 1 percent from July 1, 2021 to June 30, 2023. The bill provides lower taxes on nonprofit hospitals and educational institutions. Proprietary educational institutions and hospitals which are nonprofit will pay a corporate income tax rate of 1 percent instead of the current 10 percent, from July 1, 2021 to June 30, 2023. It lowers taxes for small businesses exempt from VAT. Small businesses (sales under P3 million) will pay 1 percent of gross sales instead of 3 percent, from July 1, 2021 to June 30, 2023. The bill grants more incentives for relocation outside of NCR. Registered enterprises that fully relocate outside of NCR will be entitled to an additional 3 years of ITH. More incentives are given for locating in disaster/conflict area. Registered enterprises that locate in areas recovering from disasters or conflict will be entitled to an additional 2 years of ITH. The CREATE also requires the Department of Finance to review revenue regulations (RRs) for the withholding of creditable tax and direct BIR to amend RRs if adverse to taxpayers. It mandates the BIR to review processes for creditable withholding tax every three years to improve such processes if they materially impact the taxpayer. The bill, however, exempts crude oil intended for refining from duties and excise, and taxes the product upon removal once refined, to avoid stranded VAT credits, consistent with international practice. The CREATE includes the Home Development Mutual Fund (HDMF) in the Tax Code’s exemptions for government corporations. This will protect the dividends of Pag-IBIG fund account holders. It also provides higher VAT exemption threshold for sale of real property. The VAT exemption threshold for socialized and low-cost housing was raised to P2.5 million; and the VAT exemption for house and lot was raised to P4.2 million.

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Monday, February 1, 2021 A3

‘Tariff cut to expand PHL sources of rice imports’ By Jasper Emmanuel Y. Arcalas @jearcalas

HE Department of Agriculture (DA) has filed a petition with the Tariff Commission to lower the most favored nation (MFN) tariff on rice imports to 35 percent. The move is aimed at expanding the options of traders for sources of rice imports, according to Agriculture Secretary William D. Dar, who kept his response short when asked about the petition. At present, the in-quota tariff for rice imports or those within the minimum access volume (MAV) is at 40 percent while those outside the

MAV (out-quota) are at 50 percent. “More sources,” Dar said in an SMS response to the BusinessMirror last Thursday when asked about the Cabinet-level Committee on Tariff and Related Matters’ (CTRM) endorsement of a petition to reduce pork and rice tariffs. The Tariff Commission is set to conduct a hearing on the DA’s petition this Thursday. However, the DA’s proposal to reduce tariffs did not sit well with industry groups, as they claimed there was no industry consultation conducted prior to submitting the petition. In a statement, the Federation

of Free Farmers (FFF) said the DA’s proposal to reduce tariffs on rice from non-Asean countries is “unwarranted and ill-timed.” FFF said that there is no need to reduce tariffs for rice imports outside of Asean since the country has ample supply as repeatedly pronounced by Dar. The group added that data from the Philippine Statistics Authority (PSA) showed that both well-milled rice (WMR) and regular-milled rice (RMR) prices are even lower than their 2019 levels. “From July 2020, prices had shown a continuous downtrend and reached their lowest level of P40.75

per kilo for WMR and P36.09 per kilo for RMR in December 2020,” it said. “The local price declines occurred despite the increase in international prices of rice, particularly those coming from Vietnam and Thailand.” FFF National Manager Raul Q. Montemayor said imports from countries like India and Pakistan, which will benefit from the lower applied MFN rates, “are still cheaper than comparable products from Asean countries like Vietnam and Thailand even if they are assessed a higher 50-percent tariff. “ Montemayor added that the savings from lower tariffs on rice imported outside of Asean would be

Senate, House panels to conduct probe on food price spikes By Butch Fernandez @butchfBM

& Jovee Marie N. Dela Cruz @joveemarie

HE Senate Committees on Agriculture, Food and Agrarian Reform and Trade, Commerce and Entrepreneurship and the House Committee on Agriculture and Food will conduct separate investigations into the “alarming” increase in the prices of food products. Quezon Rep. Mark Enverga, chairman of the House Committee on Agriculture and Food, said Speaker Lord Allan Velasco has directed the panel to conduct an immediate briefing on the concerns of rising prices of agricultural products, which has been set on February 2. “The committee is tasked to assess current data on current supply and demand of all agricultural goods and to find a solution to the current predicament of both suppliers and consumers,” said Enverga. Meanwhile, Deputy Speaker Bernadette Herrera has called out the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) on the increasing prices of meat and vegetables. “It is high time that the DA and DTI do something about the rising cost of food prices being complained by the general public,” the Bagong Henerasyon representative said. Herrera said it was as if the pandemic-induced economic crisis was not enough that people also

had to suffer from skyrocketing food prices. “It is not right that we let our people endure the soaring food prices since many of them have already lost their jobs and are facing a reduction in their income because of the pandemic,” Herrera said. Herrera said the artificial hike in food costs needs to be curbed by enforcing strict measures to regulate the prices imposed by traders. The DA has reported that the prices of most meats and vegetables have jumped by up to 66 percent in January. Accord ing to the Phi lip p i ne St at i s t i c s A ut hor it y, the increasing prices of food products already pushed the country’s inflation rate to 3.5 percent last December. Herrera said she is looking forward to hearing the explanation of DA and DTI on the rising food prices in the investigation to be conducted by the House of Representatives.

Joint inquiry

THE Senate opens Monday a joint inquiry by the committees on Agriculture, Food and Agrarian Reform with Trade, Commerce and Entrepreneurship to tackle “alarming increases” in prices of basic commodities and “soaring food prices.” This, as Senator Imee Marcos sounded an alarm Sunday alerting the Duterte administration to avert the impending death of the local pork industry “faster than African swine fever” due

ECHOstore to sell organic goods certified by Naturland

CHOstore said it will start selling Naturland-certified organic products following the forging of a partnership between the two sustainable lifestyle entities that seek to boost organic farming in the country. The company said it has partnered with Naturland, a Germany-based farmers association and organic agriculture certifier, with the former becoming the first store in the country to sell products certified by Naturland. The products that would be first sold at the ECHOstore are virgin coconut oil, turmeric powder and tea from Davao, and muscovado sugar from Negros. “Although having offered food products for some time now, we decided to replace them step by step by Naturland certified organic products to provide orientation for customers in this crowded market of natural and organic products,” ECHOstore Founder Pacita U. Juan said in a statement. Juan, who has been an advocate for organic products for 15 years, said Naturland’s organic certification standards “go clearly beyond government requirements.”

Juan said ECHOstore has dedicated a special section in its online store for Naturland certified organic products. She added that the products would also be available in the company’s physical store in Makati. Naturland International Development Manager Marco Schlueter said the partnership would “help boost organic farming in the Philippines and to create better livelihoods” for smallholder farmers. “We partnered with ECHOstore because of their long-standing commitment to the organic movement,” Schlueter said. “Moreover, in the midst of the worldwide Covid-19 crisis our more than 3,000 Naturland farmers in the Philippines can thus find new market opportunities. With ECHOstore they can now also sell their produce in the local market, additionally to their overseas exports.” Urmatt Group of Thailand Chairman Arvind Narula lauded the partnership noting that the Philippines is “now joining the club of Southeast Asian countries developing their domestic organic markets—after being mainly concentrated on exporting to European Union and the United States.” Jasper Emmanuel Y. Arcalas

to over importation. Marcos, who chairs the Senate Economic Affairs Committee, pressed concerned authorities to reconsider the plan of the Department of Agriculture (DA) allowing upward adjustment of the minimum access volume of pork imports “as much as three times the present 54,000 metric tons [MT].” Warning against its disastrous consequences, the Senator predicted pork importers will likely take over local market supply and “push Filipino producers out of business.” In a statement over the weekend, Marcos predicted that “the slaughter of our local hog raisers will begin if the Department of Agriculture executes its plan to raise the minimum access volume of pork imports by as much as three times the present 54,000 MT.” She surmised that the DA “may be overcompensating in its rush to increase imports to reduce consumer prices,” but added that “it may deal the coup de grace to our pork industry before Vietnam could release a vaccine against African swine fever [ASF] later this year.” The Senator suggested that the DA should instead step up its probe into the hoarding of pork products seen to trigger an artificial hike in market prices amid the spread of ASF in Luzon. At the same time, Marcos cited reports that “many local hog raisers have already shut down their business,” warning

that allowing importation amid the Covid-19 pandemic means “more local jobs will be lost and surrendering the country’s food security to foreigners.” She observed prices of pork imports from the United States, Canada, Spain, the United Kingdom, the Netherlands, and Brazil suggested “excessive profits” were being made at the expense of consumers, citing the import cost of a 40-foot container of frozen pork belly (liempo) from Spain was P117.87 per kilo, already including a 40-percent tariff. Marcos added: “Compare that to its market price of as much as P450 per kilo. Even if you add cold chain, storage and outlet delivery costs, the meat importer’s costs would only amount to about P153 per kilo.” Apart from arresting hoarders and profiteers, the Senator suggested the Duterte government can bring down meat prices by subsidizing the cost of transporting pork products to Luzon, which imports about 80 percent of its supply from the Visayas and Mindanao. Moreover, Marcos noted the DA got “the single biggest item for emergency and stimulus funding” under Bayanihan 2, amounting to P24 billion. In filing Senate Resolution 619, she suggested that probers must mount a full-blown inquiry into “DA’s spending, as well as the failure of the Department of Trade and Industry to implement its suggested retail prices.”

passed on to consumers. “This sudden proposal of the DA is totally unjustified. It is a stab in the back of our rice farmers, who are still reeling from the drastic fall in farm-gate prices caused by excessive imports in the last two years following the enactment of the Rice [Trade Liberalization] Law,” he said. “Why encourage more and cheaper imports now when local supply is more than enough, and prices are very stable?” Philippine Chamber of Agriculture and Food Inc. President Danilo V. Fausto said lowering the tariffs on rice imports outside of Asean

would pose competition to local producers who are adjusting to a new trade regime. Fausto argued that it will also cut the government’s revenues from rice tariffs, which are being earmarked for productivity support programs for the rice sector. “We have record production of crops, of palay. We have to sustain that. Pursuing this proposal would discourage farmers to [plant],” he told the BusinessMirror. Unmilled rice output last year rose to an unprecedented 19.294 million metric tons volume, slightly eclipsing the previous record of 19.28 MMT in 2017.

DAR, DA form team to identify govt lands for CARP coverage By Jonathan L. Mayuga @jonlmayuga

HE Department of Agrarian Reform (DAR) and the Department of Agriculture (DA) have agreed to form a joint validation team to identify government lands that may be covered by the Comprehensive Agrarian Reform Program (CARP). The DAR led by Secretary John R. Castriciones and the DA led by Secretary William D. Dar reached an agreement during a meeting last January 28 that only idle government-owned lands should be covered by the second phase of CARP or the Duterte administration’s agrarian reform program. The two officials also decided to work hand-in-hand in pursuit of the country’s food security program. The formation of the joint validation team came after Dar suggested that all government-owned lands be verified and validated first before deciding whether or not these should be placed under CARP coverage as provided for under Executive Order (EO) 75. Under the law, DAR is authorized to place under the CARP coverage all idle government-owned land for distribution to landless farmers. Castriciones then proposed the formation of a joint validation team between the DAR and the DA, to which his counterpart agreed to ensure that no government-owned farmlands that are being used in pursuit of the country’s food security program would be compromised.

Dar said there are lands owned by the DA that are being used as “farm laboratories” even as he raised concerns that these may be inadvertently placed under the CARP coverage during its implementation. Signed by President Duterte on February 15, 2019, EO 75 continues to face resistance from some government agencies. While the order directs all departments, bureaus, offices, and instrumentalities of government to identify lands owned by the government devoted to, or suitable for agriculture, for distribution to qualified beneficiaries, government agencies are giving DAR the runaround in submitting a list of potential CARPable land under their jurisdiction. During an online news conference in September last year, citing DAR’s own inventory, Castriciones said there are 217,120.98 hectares of government-owned land that can be covered by EO 75. However, only Technical Education and Skills Development Authority had executed a Deed of Transfer to over 289 hectares of government lands in Davao de Oro in favor of the DAR. Also in September last year, the Cagayan State University has donated 622 hectares of agricultural lands for distribution to landless farmers. Castriciones, during the said press conference, said “other agencies of the government are not cooperative but the department is exerting all efforts, including legal confrontation to cover these government-owned lands.”

Nestlé Philippines, WWF tackle plastic waste in Donsol

OOD and beverage manufacturer Nestlé Philippines has entered into an agreement with World Wide Fund for Nature—Philippines (WWF-PH) to tackle plastic waste in Donsol, Sorsogon, where whale shark watching is an ecotourism industry, and its coastal location includes many pathways for waste to end up in the sea. Under the agreement and in line with its urgent priority to tackle plastic waste towards a waste-free future, Nestlé Philippines will support the Plastic Smart Cities project of WWF-PH, an initiative that works with Philippine cities and municipalities to push circular solutions to stop plastic waste leakage in nature. WWF is currently working in 5 project sites where it generates and pilots solutions to increase waste reduction, segregation, collection, and recycling. Specifically, Nestlé Philippines will strengthen KALIPI operations and the pilot implementation of NAKAMOTO in six barangays in Donsol. KALIPI or Kalipunan ng Liping Pilipina was launched in September 2013 to empower Filipino women through community activities and the development of livelihood practices. Last October, KALIPI Donsol launched a line of souvenir products made from recycled plastics together with WWF-PH.

RECYCLED plastic waste is turned into a souvenir item in Donsol. CONTRIBUTED PHOTO

The province of Sorsogon shares a border with the Ticao-Burias Pass Protected Seascape (TBPPS). The TBPPS, a critical habitat, is home to the endangered whale shark. WWF-Philippines has been working with the municipal local government unit (LGU) of Donsol on the conservation of whale sharks since 1998. Human activity surrounding the TBPPS presents a threat to the integrity of the protected area. Plastic pollution is becoming a threat, ending up in the habitat of marine life. KALIPI Donsol is addressing plastic pollution with its product line. In order to combat the threat of plastic

pollution while creating new livelihood opportunities, the women’s rights organization has rolled out various handmade products. Each product is made of upcycled plastic, some of which are retrieved from the beach with the rest sourced from the local government waste collection service. Meanwhile, NAKAMOTO is a pilot solution to collect wastes through motorcycles in barangays that are not serviced by the municipal waste collection system. WWF, together with partner barangays and the Donsol LGU, will launch this solution whereby waste segregation will be

propagated in pilot barangays, with collection by means of motorcycles. Collected segregated wastes will be brought to the municipal composting area for biodegradables, partner junk shops for recyclables, and KALIPI for residual wastes. “This partnership with WWF —Philippines gives us the opportunity to work with K ALIPI and help pilot NAK AMOTO to advance waste collection, segregation, and recycling in Donsol. We strongly believe collaboration is indispensable in preventing plastic waste from ending up in landfills, the oceans, or as litter,” said Nestlé Philippines Chairman and CEO Kais Marzouki, “In this case, we welcome the chance to participate in piloting and expanding solutions that will help keep our oceans clean.” “We are thankful for this support from Nestlé Philippines in helping us expand our solution which aims to lessen plastic wastes by 20 percent in Donsol, while providing livelihood support to women. With this, we will be able to help create more upcycled products from plastics and reach a wider market. We, as a women’s group in Donsol, are excited to increase our support for our LGU in implementing our 10-year solid waste management plan,” said KALIPI President Wilma D. Arevalo.

A4 Monday, February 1, 2021 • Editor: Vittorio V. Vitug

News

BusinessMirror

Govt eyes expanding e-commerce industry contribution to economy By Elijah Felice E. Rosales @alyasjah

HE Department of Trade and Industry (DTI) said it plans to inflate the contribution of the electronic commerce (e-commerce) industry to 5.5 percent of gross domestic product (GDP), as it eyes to take advantage of the shift to digital during the state-imposed strict lockdown measures. Under the Philippine e-Commerce Roadmap 2022, the contribution of digital transactions to the economy is seen to rise to P1.2 trillion by 2022, from P599 billion last year. As such, this means the e-commerce industry is expected to take up 5.5 percent of GDP, from 3.4 percent in 2020. Likewise, the road map projects there would be 1 million firms engaged in online selling by next year, from roughly 500,000 last year. Trade Secretary Ramon M. Lo-

pez said the DTI is banking on the transition to digital as caused by the mobility restrictions to boost transactions done in online platforms. As the health crisis prevented people from leaving their houses, the e-commerce industry saw the opportunity to deliver goods and services with just the click on a phone. At the launching of the road map last Friday, Lopez reported there are now 93,318 online sellers registered with the DTI; bulk of these enterprises was recorded during the lockdown beginning March last year. According to Lopez, online business registration has already hit 93,318 for the month of January. “This is a clear indication of Filipino resilience as many of our countrymen adapted to the challenging times,” Lopez said. Under the new road map, the DTI is focusing on educating online retailers on the values of speed, security

and structure, with which, when combined, should equate to sales. “As our economy recovers from the pandemic, we can harness the fast-growing e-commerce in the country to boost our economic growth. We’ve already seen how e-commerce has come to our rescue—and was ready to fill the void left by brick and mortar businesses unable to serve our people—because of the lockdowns,” Lopez explained. The road map also seeks to bring the Philippines to the upper half of the Business to Consumer ECommerce Index by this year, and to the top one-third of the measure by next year, with the action plans and strategies the government is planning to enforce. Trade Assistant Secretary Mary Jean T. Pacheco disclosed the DTI was able to implement at least 70 percent, or 30, of the 53 agenda items listed in the e-commerce road map

for 2016 to 2020. Pacheco said the DTI has taken action on 13 of these items while three are awaiting trigger events. In the new road map, the government looks to improve infrastructure on information technology to encourage individuals to transact online, as well as initiate build logistics and convergence programs to accelerate service delivery. The government also eyes to speed up initiatives to upgrade business registration and license renewal, and plans to streamline rules and regulations for conducting operations. Authorities will also introduce changes to the dispute settlement procedures to show to consumers that the e-commerce industry can be trusted. For Pacheco, these effor ts will only work if the government takes a “whole-of-body” approach to improving the e-commerce landscape.

BFAR: 20 areas tested positive for ‘Red tide’

TOTAL of 20 coastal areas in various parts of the country have tested positive for “red tide poisoning” This was revealed through Shellfish Bulletin 2 dated January 28, 2021, issued by the Bureau of Fisheries and Aquatic Resources (BFAR) Information and Fisherfolk Coordination Unit. The document said the conclusion was based on the latest laboratory results of the BFAR and Local Government Units (LGUs). Shellfishes collected in these areas are still positive for paralytic shellfish poison that is beyond the regulatory limit, the document said. These areas were identified as: Honda Bay and Puerto Princesa Bay in Puerto Princesa City, Palawan; Coastal waters of Inner Malampaya Sound, Taytay, Palawan; Sorsogon Bay, Sorsogon; Coastal waters Dauis and Tagbilaran City, Bohol; Tambobo Bay, Sianton, Negros Oriental; and the Coastal waters of Daram Island, Zumarraga, and Cambatutay, Western Samar. The areas also included the following: coastal waters of Calubian, Leyte, Carigara Bay, and Cancabato Bay, Tacloban City in Leyte; Coastal waters of Biliran Islands; Coastal waters of Guiuan and Matarimao Bay in Eastern Samar; Balite Bay, Mati City in Davao Oriental; Lianga Bay and Coastal waters of Hinatuan in Surigao del Sur; and Dumanquilas Bay in Zamboanga del Sur. Moreover, the San Pedro Bay in Western Samar is now positive for red tide toxin. As such, all types of shellfish and Acetes sp. or alamang gathered from these areas are not safe for human consumption, the BFAR said. The BFAR advised against harvesting, selling, buying and eating shellfish from these areas. Jonathan L. Mayuga

BACK AT WORK

A man appears oblivious to the goings-on below him at the construction site along Edsa corner Aurora Boulevard in Quezon City. According to the National Economic and Development Authority, both private and public constructions saw improvements last year. Government economists added that “international travel restrictions and the resurgence of the virus in advanced economies also affected the pace of construction as their experts had a difficult time coming to the Philippines.” NONOY LACZA

www.businessmirror.com.ph

SC to hear arguments vs Anti-Terrorism Act By Joel R. San Juan @jrsanjuan1573

FTER two postponements, the Supreme Court (SC) is finally set to hold an oral argument tomorrow on the legal issues being raised against the provisions of the controversial Anti-Terrorism Act of 2020 and its implementing rules and regulations. A total of 37 petitions have been filed by legal experts including former members of the SC, humanrights groups, constitutionalists, journalists, lawmakers, militant labor groups, students, even social-media inf luencers, indigenous groups and other advocacy groups seeking to declare Republic Act (RA) 11479, aka ATA of 2020, unconstitutional. The law was enacted into law last July 3 and implemented 15 days later last July 18. Aside from declaring the law unconstitutional, almost all the petitions also sought the Court’s immediate issuance of a temporary restraining order (TRO) to enjoin its implementation. However, the Court did not act on the plea but is expected to rule on it once the oral arguments are terminated. It can be recalled that the SC earlier set the oral argument on the petitions in the third week of September but the Office of the Solicitor General has suggested its cancellation in lieu of memoranda by the parties. Solicitor General Jose C. Calida cited logistical restrictions, health threats posed by the Covid-19 pandemic, as well as the provisions of the Internal Rules of the Court and pertinent jurisprudence in its motion. Aside that it is “unsafe and impractical” to hold the oral arguments as Covid-19 continuous to rise, Calida said the Court has no jurisdiction to hear and resolve the case since the petitions raised factual allegations. He noted that under Section 2, Rule 3 of the Internal Rules of the SC, the High Tribunals’ role is to decide cases based on findings of fact before it. But the Court eventually decided to push through with the oral argument and set it anew last January 19. However, Calida again sought the resetting of the oral argument after his assistant solicitor-general and some staff tested positive for Covid-19. Thus, the Court resolved to reset the oral argument on February 2 at 2:30 p.m., stressing that strict

Issues to be tackled

THE SC has confined the issues to be discussed during the oral argument under two categories, the preliminary issues and the substantive issues. The petitioners have agreed to divide the issues into six clusters. Cluster 1 focuses on the preliminary issues such as whether the petitioners have legal standing to sue and if Anti-Terrorism Act (ATA) or RA 11479 should be declared unconstitutional in its entirety if the Court finds the definition of terrorism as well as the powers of the Anti-Terrorism Council (ATC) are constitutionally infirm. Cluster 2 is whether facial challenge is proper; and if the definition of “terrorism” in Section 4 is void for being vague and overbroad which is in violation of constitutional rights such as free speech and expression. It also asks if Section 5-14 defining and penalizing threats to commit terrorism and others are void for vagueness and overbroad and violate constitutional rights. These issues will be discussed by lawyers Jose Anselmo I. Cadiz, Jose Manuel I. Diokno with Theodore O. Te as his alternate, and Alfredo B. Molo III. Cluster 3 raises the questions on whether the powers of the ATC are unconstitutional. Issues under this cluster will be tackled by lawyer Evalyn G. Ursua with lawyer Josalee S. Deinla as alternate. Lawyer Neri J. Colmenares (lawyer Ephraim as alternate) will argue on the issues under Cluster 4, which is whether Section 16 violates the constitutional rights to due process and against unreasonable searches and seizures, privacy of communication and freedom of speech and freedom of religion. Cluster 5, which inquires about the ATC’s power to detain without judicial warrant based on mere suspicion, was assigned to Rep. Edcel C. Lagman, with lawyer Howard M. Calleja as his alternate. Cluster 6 is about whether RA 11479 violates the Indigenous People and Moro’s rights to self-determination and self-governance under the Constitution. This will be argued by lawyer Algamar A. Latiph with lawyer Bantuan Lacman as alternate.

5.6-M Pfizer, AstraZeneca doses due in Q1 under Covax facility–Galvez

Major shake-up in PNP bared

EARLIER, the Philippine Food and Drug Administration (FDA) granted both Pfizer-BioNTech and AstraZeneca Emergency Use Authorizations (EUA), which means these vaccines can be safely administered once they become available. “Over the past week, we have been visiting cities in Metro Manila to monitor the ongoing preparations being carried out by our local government units (LGUs) and the private sector for the arrival of the vaccines, specifically the crafting of their respective

EN. Debold M. Sinas undertook a major shake-up in the Philippine National Police (PNP) over the weekend involving 21 senior police officers. The major reorganization was ordered over the weekend by Sinas and has affected key positions in the directorial staff, regional offices and national support units. However, the PNP said the movement was triggered by the retirement of some senior officials that prompted an upward movement of third-level officers to the higher echelon. PNP Health Service director, Brig. Gen. Nolasco K. Bathan retired on Sunday while PNP former Director for Intelligence, Major General Amado Clifton B. Empiso and Criminal Investigation and Detection Group director, Major General Joel Napoleon Coronel are set to retire from the police service on February 6 and 11, respectively. “We are infusing new blood into the command structure to fill the void created by the retirement of some senior officials and ensure continuity of command,” Sinas said.

continued from a2

EUAs granted

local vaccine implementation plans,” he added. Galvez said they will visit other areas across the country, especially now that the Philippine National Deployment and Vaccination Plan for Covid-19 vaccines has been finally approved for immediate implementation. Their visits showed many local government units (LGUs) and the private sector are ready for the vaccine roll-out—from their vaccination sites, to their cold storage equipment and facilities, to their personnel, Galvez noted,

adding, “We hope that these kinds of preparations will be replicated nationwide.” The vaccine czar assured Filipinos “that under the leadership of President Rodrigo Roa Duterte, your government will secure the targeted 148 million doses of safe, effective, and free vaccines to inoculate 70 million people by 2021 and realize our nation’s goal of achieving herd immunity within this year.” The NTF chief also urged all Filipinos “to set their fears aside” and have themselves inoculated once these vaccines are available.

“Again, we would like to assure our countrymen that all the vaccines the government will be administering must pass the stringent selection and evaluation process of the Vaccine Expert Panel, FDA, and the Department of Health.” ªMeanwhile, he said, even the vaccine provides an extra layer of protection, the public must observe the “vaccine plus” or the strict observance of minimum health standards—the wearing of face masks, maintaining social distancing, and practicing proper hygiene.

GDP to rebound by around 7% in 2021–economists continued from a1 The Palace recently announced that Metro Manila, Cordillera Administrative Region, Batangas, Tacloban City, Davao City, Davao del Norte, Lanao del Sur and Iligan City are placed under general community quarantine in the entire month of February. Neri said a mild GDP contraction is still expected in the first quarter, but noted that consumer confidence is recording some

compliance with existing health protocols would be observed, which include limiting the number of people who would be allowed to enter the session.

uptick according to recent mobility data. Consumers learned to follow necessary precautions so they can “confidently” go out, the BPI economist said, adding that easing transport protocols helped as well. Moreover, Neri said that online shopping has gained more traction, which can boost consumer spending recovery this year. “However, even at this brisk pace, economic output will not be able to return

to the 2019 level yet, and a full recovery may only happen in 2022,” he said. “On the other hand, uncertainties still remain and another lockdown may prevent the economy from reaching more than 6-percent growth.”

Q4 GDP performance

IN the fourth quarter, Neri said that while the contraction was lower than their estimate, it was still quite “sizable.” GDP fell by 8.3 percent

in the last quarter. Mobility in public places began increasing only by last week of November last year, he said, even though relaxed restriction protocols were already implemented in the previous months. The December’s mobility surge amid the holidays prevented the economy from plunging by double-digits in the last quarter, he added. Apart from lockdown restrictions,

Oxford Economics said that “adverse weather conditions also weighed on the economy” during the fourth quarter. A recent series of typhoons devastated several parts of the country. The Cabinet-level Development Budget Coordination Committee is anticipating the GDP growth to be at 6.5 percent to 7.5 percent in 2021 and 8 percent to 10 percent in 2022.

By Rene Acosta @reneacostaBM

News BusinessMirror

www.businessmirror.com.ph

DENR allows quarrying in Rizal to operate again By Jonathan L. Mayuga @jonlmayuga

HE Department of Environment and Natural Resources (DENR) Mines and Geosciences Bureau (MGB) has lifted the temporary suspension issued against 10 of the 11 quarrying operations in Rizal Province. In his order dated January 26, Dondi M. Sarmiento, Regional Director (Officer-in-Charge) of the MGB Calabarzon, virtually absolved quarry operations for the flooding in Marikina City and other parts of Metro Manila and low-lying areas in Rizal towns in December last year during the onslaught of Typhoon Ulysses. DENR Secretary Roy A. Cimatu suspended effective December 2 quarry operations for five Mineral Production Sharing Agreements (MPSA) and six Mineral Processing Permits (MPPs). These include the MPSAs of the following: Asencio-Pinzon Aggregates Corp. (APAC); San Rafael Development Corp. (SRDC); Montalban Millex Aggregates Corp. (MMAC); Hardrock Aggregates Inc. (HAI); and, Rapid City Realty and Development Corp. (RCRDC). The suspension order was also levied against the MPPs of the following: Oxford Mines Inc. (OMI); Viba Aggregates & Marketing (VAM); Amiterra Aggregates Corp. (AAC); Dream Rock Resources Phils. Inc. (DRRPI); Superior Aggregates Inc.; and, ATN Holdings Inc. (AHI) All operations with MPSAs, except that of the APAC, that was found to have gone outside its mining tenement are now allowed to resume operations. The submission of work plan and the validation conducted by the DENR-MGB, according to separate orders, addressed the conditions of the DENR-MGB for the lifting of the temporary suspension order dated December 3, 2020, Sarmiento said.

The conditions include the construction of drainage system with appropriate multiple silt traps to cover the entire area being developed by the company, construction of settling pond or catchment basin and the desilting of the creek affected by siltation caused by its entire operation. Sarmiento said in his order that quarrying operations in the Province of Rizal are just a fraction of the land disturbance and connote that the contribution of the quarry operation to the flooding and siltation of the Marikina River is only minimal. He based this on the findings of the composite team sent to investigate the flooding in Marikina City and its connection to the quarry operations in Rizal. “Several factors including the rapid urbanization, natural erosion, and deforestation of portions of the Sierra Madre Mountain Range and other disturbances contribute to the siltation of the Marikina River and subsequent flooding along the floodplains,” Sarmiento said. Further, Sarmineto said that the flooding on November 12, 2020, in Marikina City vicinities was primarily caused by the enormous amount of rainfall generated by the typhoon. “The heavy surge of run-off from the headwater of Wawa Dam specifically coming the Sierra Madre Mountains which were oversaturated in the occurrence of the previous typhoons Quint, Rolly, Siony and Tonyo, prior to Ulysses, greatly contributed to the swelling of the Marikina River that tends to backflow from its channel towards the confluence of its tributaries causing the rise of riverine floodwater and consequent flooding in adjacent areas,” Sarmiento said. According to Sarmiento, flooding within the low-lying areas in the Marikina River Basin has historically been and will remain as a natural hazard due to its geomorphologic setting.

Editor: Vittorio V. Vitug • Monday, February 1, 2021 A5

PSA data shows majority of babies born before pandemic illegitimate

By Cai U. Ordinario

@caiordinario

ORE than half of babies born before the pandemic were illegitimate children, according to data released by the Philippine Statistics Authority (PSA). The data on “Registered Live Births in the Philippines” showed there were 1.67 million live births in 2019, a 0.3-percent increase from 166.8 million in 2018. More than half representing 917,242 (54.8 percent) of the total registered live births in 2019 were born to unwed mothers. “Eleven regions reported at least half of its registered births in 2019 as illegitimate, led by Eastern Visayas region (66.4 percent), National Capital Region (66.2 percent) and Davao

region (59.1 percent),” the PSA added. “On the other hand, ARMM [Autonomous Region in Muslim Mindanao] recorded the highest proportion of legitimate births at 95.2 percent.” The data showed that children born to mothers who are under 15 years old were 95.9 percent illegitimate and 4.1 percent were legitimate. Of those born to mothers aged between 15 years old and 19 years old, 89.4 percent were illegitimate and 10.6 percent were legitimate. Births to mothers aged 20 years old

to 24 years old were 71.6 percent illegitimate. On the other hand, the least proportion of illegitimate babies at 25.6 percent were to mothers aged 45 years old and over. In terms of contribution to all illegitimate births in 2019, children born of mothers aged 20 years old to 24 years old accounted for 34.4 percent or 315,620 of the total illegitimate births in 2019. This was followed by mothers aged 25 years old to 29 years old, who contributed 227,411 or 24.8 percent of the total illegitimate births in 2019. Overall, a total of 191 babies per hour or 3 babies per minute were born in 2019, according to data from PSA. Of the total live births, 58.1 percent were born in Luzon, 18.7 percent in Visayas and 23.2 percent in Mindanao. “The number of registered live births showed a generally decreasing trend, noticeably from 2013 to 2018. A decline of 6.5 percent in the registered live births was noted in the past seven years, from 1.79 million in 2012 to 1.67 million in 2019,” the PSA said. Further, in 2019, more males or 871,750 babies or 52.1 of the total were born. There were 802,173 or 47.9 percent were female, resulting in a sex ratio at birth of 109 males per 100 females. Meanwhile, of the total live births, 58.1 percent were born in Luzon, 18.7 percent in Visayas, and 23.2 percent in Mindanao. Among regions, the National Capital Region (NCR) recorded the highest number of birth occurrences with 14.5 percent share. This was followed by Calabarzon (13.6 percent) and Central Luzon (11.3 percent). “Areas with relatively large populations reported the highest number of live births by place of occurrence

and by usual residence of mother,” the PSA said. “The same regions recorded the highest number of live births by usual residence of mothers, collectively sharing 39.3 percent or about two in every five babies born in 2019,” it added. Earlier, millions of Filipinos are caught in a poverty trap because of teenagepregnanciesthatpreventmany womenfrommaximizingtheeconomic opportunitiesavailabletothem,according to the Commission on Population and Development (Popcom). Popcom Executive Director and Undersecretary Juan Antonio Perez III told the BusinessMirror last Thursday that 57 percent of teen moms already belong to the bottom 40 percent of the population. This will become a problem in terms of poverty estimates, particularly next year. Estimates made by the University of the Philippines Population Institute (UPPI) showed that the lockdowns increased teen pregnancies by 21.04 percent. Based on the UPPI estimates, the community quarantines will lead to 102,000 adolescents aged 15 to 19 years olds could become pregnant. This is 18,000 more than the 84,000 expected teen pregnancies without the lockdowns. One of the things that should also be monitored with this number, Perez said, is the observation that there is a high chance that a second or third pregnancy could follow. With this, Perez said, there is a need to attain zero repeat pregnancies nationwide. In order to address this, Perez said that apart from national governments, local government units have an important role to play to prevent even more adolescents from getting pregnant.

Govt waives fees for job safety and health seminars E

MPLOYERS and workers of micro, small, and medium enterprises (MSME) will no longer have a reason not to comply with the mandatory occupational health and safety (OSH) training after it was made free by the Department of Labor and Employment.

In a statement, Labor and Employment Secretary Silvestre H. Bello III said the Occupational Safety and Health Center (OHSC) will no longer charge the P5,500 fee per person for the said training starting this year. Bello said the measure aims to ensure each workplace will remain

Covid-free and productive amid the ongoing novel coronavirus disease (Covid-19) pandemic. “We are waiving the training fees being charged to micro[-scale] and small[-scale] businesses and those companies in distress. The workers in those enterprises have to be assured of their safety and health

Palace offers condolences to family of Dante Jimenez

Flag carrier complies with IATF directives By Recto Mercene

ALACAÑANG expressed its condolences to the loved ones of anticrime crusader Dante Jimenez, who passed away last Friday due to a heart problem at the age of 68. In a statement, Presidential Spokesman Herminio “Harry” L. Roque Jr. confirmed Jimenez suffered an aortic aneurysm last January 29, which proved fatal for the chairman of the Presidential Anti-Corruption Commission [PACC]. The statement said Jimenez will be missed in the government for being among those who led its anti-corruption campaign. “He believed and shared President Rodrigo Roa Duterte’s centerpiece program, which is the campaign against illegal drugs, crime and corruption, and had served the

Duterte Administration as Chair of PACC and Co-Chair of the Inter-Agency Committee on Anti-Illegal Drugs [ICAD],” Roque was quoted in the statement as saying. Even before his stint in the government, Jimenez was among the founding chairman of the Volunteers Against Crime and Corruption (VACC) as well as a firm Duterte supporter. “PACC Chair Jimenez spent most of his productive life advocating a just and peaceful society for Filipinos by fighting criminality and corruption,” Roque said through the statement. Chief Presidential Legal Counsel Salvador S. Panelo also lamented the death of Jimenez, whom he described as close friend. Samuel P. Medenilla

while at the workplace,” the labor secretary said. “This is a big factor to their productivity.” The labor department earlier said most of the training-seminars of the OHSC are now conducted online. The labor chief said those participating in the OSHC training should not only be free-of-charge

@rectomercene

TARTING February 1, passengers of Philippine Airlines (PAL) flights arriving in the country would be encouraged to undergo polymerase chain reaction (PCR) testing on the sixth day of quarantine at a facility or hotel accredited by government’s tourism and health agencies. This in line with the latest directives of the Inter-Agency Task Force for Emerging Infectious Diseases (IATF-EID), the flag carrier said in a statement. Those allowed for travel to the Philippines, subject to the presentation of required travel documents are: Filipino citizens, foreign nationals with long-term visas, diplomats and dignitaries, and those with medical emergency cases, including medical escorts. Philippine Airlines Inc. said it is reminding arriving passengers to observe the following revised arrival and quarantine protocols. The passenger must register on the Electronic Case Investigation Form (e-CIF) as early as the days before the flight to Manila. Those not designated as overseas Filipino workers (non-OFWs) are advised to pre-book a hotel accredited by tourism and health agencies for a 6-night accommodation. During check-in for the flight to Manila, the passenger must present a QR code, “Affidavit of Undertaking” and the “Traze” mobile application. He or she must sign the declaration and waiver formindicatingthats/heishealthyandfittotravel.

for workers but must also be considered compensable working time as stipulated in Republic Act 11058 (Occupational Safety and Health Law). Violators of the OSH laws could be fined between P10,000 a day to P100,000 a day. Last year, the labor depart-

ment reported that 23 percent of the 72,000 companies it inspected failed to initially-comply with OSH standards. After providing technical assistance and advice to the erring companies, their compliance rate rose to 92 percent, according to the labor department. Samuel P. Medenilla

Monday, February 1, 2021

BusinessMirror

www.businessmirror.com.ph

BusinessMirror

Monday, February 1, 2021

The World BusinessMirror

Monday, February 1, 2021

Fearing China crackdown, thousands flee HK for UK

ONDON—Cindy had a comfortable lifestyle in Hong Kong: she owned several properties with her husband, they had a good business going. But last year she made up her mind to leave it all behind and move her family to Britain, and not even a global pandemic was going to sway her decision. “To uproot ourselves like this is definitely not easy. But things got uglier last year, the government was really driving us away,” said the businesswoman and mother of two young children who didn’t give her family name because she feared repercussions for speaking out against the Chinese government. “Everything we value—freedom of speech, fair elections, liberties— has been eroded. It’s no longer the Hong Kong we knew, it’s no longer somewhere we can call home.” Cindy, who landed in London last week, is one of thousands of Hong Kongers fleeing their hometown since Beijing imposed a draconian national security law on the territory last summer. Some are leaving because they fear punishment for supporting pro-democracy protests. But many others, like her, say China’s encroachment on their way of life and civil liberties has become unbearable, and they want to seek a better future for their children abroad. Most say they don't plan to ever go back. Many firmed up their exit plans after Britain announced in July that it would open a special immigration pathway for up to 5 million eligible Hong Kongers to live, work and eventually settle in the UK. Prime Minister Boris Johnson said this week the offer shows Britain is honoring its “profound ties of history” with Hong Kong, a former colony that reverted to Chinese rule in 1997 on the understanding that it would retain its

Western-style freedoms and much of its political autonomy not seen on mainland China. Applications for the British National Overseas visa officially opened on Sunday, though many like Cindy have already arrived on British soil to get a head start. Eligible Hong Kongers can currently come to the UK for six months, but from Sunday they can apply for the right to live and work in the country for five years. After that, they can apply for settled status and then British citizenship. Britain’s government said some 7,000 people with British National Overseas (BNO) status have arrived since July. It estimates that over 300,000 people will take up the offer of extended residency rights in the next five years. Cindy said she wanted to leave as soon as possible because she feared Beijing would soon move to halt the exodus. “The Chinese government said it hasn't ruled out harsher tactics," she said. "I think they could lash out if tens of thousands of young professionals start leaving, because that would surely upset Hong Kong’s economy and they wouldn't like that at all.” Beijing said Friday it will no longer recognize the BNO passport as a travel document or form of identification, and criticized Britain's citizenship offer as a move that “seriously infringed” on China’s sovereignty. It was unclear what effect the announcement would have because many Hong Kongers

In this July 7, 2019 file photo, thousands of protesters carrying the British flag march near the harbor of Hong Kong. Thousands of people from Hong Kong are fleeing their hometown since Beijing imposed a draconian national security law on the territory in the summer 2020. Many say China’s encroachment on their way of life and civil liberties has become unbearable, and they want to seek a better future for their children abroad. AP Photo/Kin Cheung

carry multiple passports. Beijing drastically hardened its stance on Hong Kong after massive anti-government protests in 2019 turned violent and plunged the city into a months-long crisis. Since the security law’s enactment, dozens of pro-democracy activists have been arrested, and the movement’s young leaders have either been jailed or fled abroad. Because the new law broadly defined acts of subversion, secession, foreign collusion and terrorism, many in Hong Kong fear that expressing any form of political opposition—even posting messages on social media—could land them in trouble. “I think if you knew when to shut up, you’ll be OK staying in Hong Kong,” said 39-year-old Fan, who also recently arrived in London. Like Cindy, he didn't want to provide his full name. “But I don't want to do that. I can complain about the queen if I wanted to—I can say anything here.” Fan, an animator, had sold his flat in Hong Kong and plans to slowly build a new life in Britain - a country he had never even visited before. He won't be alone in start-

ing from scratch. “This is a really unique emigration wave – some people haven't had time to actually visit the country they're relocating to. Many have no experience of living abroad,” said Miriam Lo, who runs Excelsior UK, a relocation agency. “And because of the pandemic, they couldn't even come over to view a home before deciding to buy.” The British government estimates there are 2.9 million BNO status holders eligible to move to the UK, with a further 2.3 million eligible dependants. The UK introduced BNO passports in the 1980s for people who were a “British dependent territories citizen by connection with Hong Kong.” Until recently, the passports had limited benefits because they did not confer nationality or the right to live and work in Britain. Cindy, the businesswoman, was still recovering from jetlag, but she's upbeat about her future. “We want to bring Hong Kong's energy, our resources and our finances here,” she said. “The move is for our kids, sure. But we want to build a whole new life here for ourselves too.” AP

WHO teams visits Wuhan food market in search of virus clues

UHAN, China—A World Health Organization team looking into the origins of the coronavirus pandemic on Sunday visited a market known to be the food distribution center for the Chinese city of Wuhan during the 76-day lockdown last year. The team members were seen walking through sections of the Baishazhou market—one of the largest wet markets in Wuhan— surrounded by a large entourage of Chinese officials and repre-

sentatives. The members, with expertise in veterinarian, virology, food safety and epidemiology, have so far visited two hospitals at the center of the early outbreak—Wuhan Jinyintan Hospital and the Hubei Integrated Chinese and Western Medicine Hospital. On Saturday, they also visited a museum exhibition dedicated to the early history of Covid-19. The Geneva-based WHO said on Twitter last Thursday that the team plans to visit hospitals and

markets like the Huanan Seafood Market, which was linked to many of the first cases. They also listed the Wuhan Institute of Virology and laboratories at facilities including the Wuhan Center for Disease Control. The mission has become politically charged, as China seeks to avoid blame for alleged missteps in its early response to the outbreak. A single visit by scientists is unlikely to confirm the virus's origins. Pinning down an outbreak's animal reservoir is typically an exhaus-

tive endeavor that takes years of research including taking animal samples, genetic analysis and epidemiological studies. One possibility is that a wildlife poacher might have passed the virus to traders who carried it to Wuhan. The Chinese government has promoted theories, with little evidence, that the outbreak might have started with imports of frozen seafood tainted with the virus, a notion roundly rejected by international scientists and agencies. AP

Editor: Angel R. Calso

World Bank commits $12 billion for emerging countries’ vaccines

he World Bank has committed $12 billion to emerging countries, supporting vaccination programs that have failed to keep pace with those of developed nations. The World Bank money will be in the form of grants or on “highly concessional terms,” said David Malpass, president of the World Bank, in a statement following a January 27 virtual meeting on the Africa Covid-19 vaccine financing and deployment strategy. “We’re preparing emergency vaccine financing projects in 21 countries in Africa, including the Democratic Republic of Congo, Ethiopia, Niger, Mozambique, Tunisia, Eswatini and Cabo Verde to name a few,” said Malpass. “The funds are available now,” he said. The cost of vaccinating 60 percent of Africa’s 1.3 billion people would be between $10 billion and $15 billion, according to the Africa Centers for Disease Control. The continent has secured 36 percent of its vaccine needs, with 25 percent of the doses to come from the Covax initiative and 11 percent from a separate African Union program, Africa’s CDC said. But it’s far behind the rest of the world in terms of acquisition and inoculations, with richer nations having secured the scarce shots early.

BLOOMBERG NEWS

“Since the outbreak of Covid-19 last March, the bank has committed $25 billion to African countries to support their health and economic recovery, and we expect to commit an additional $15 billion by June,” Malpass said. “We urge leaders of African countries to move quickly to secure vaccinations for their populations, and to avail themselves of the financing available from us.” South Africa, the continent’s most industrialized nation, is one country that didn’t move quickly to secure vaccines. The first doses are due to arrive on Feb. 1 after widespread criticism of the government’s failure to sign bilateral agreements with drug makers in 2020. Bloomberg News

Myanmar military denies coup threats over vote fraud claims

AYPYITAW, Myanmar—Myanmar's military on Saturday denied its chief was threatening to stage a coup over complaints of election fraud, saying the media had misinterpreted his words. Political tension in the Southeast Asian nation soared this past week after a spokesman for the military, which had ruled Myanmar for five decades, said a coup could not be ruled out if its complaints of widespread fraud in November's election were ignored. The commander-in-chief, Senior Gen. Min Aung Hlaing, told senior officers in a speech Wednesday that the constitution could be revoked if the laws were not being properly enforced. Adding to the concern was the unusual deployment of armored vehicles in the streets of several large cities. Saturday's statement from the military, known as the Tatmadaw, said that "some organizations and media" wrote without foundation that the military threatened to revoke the constitution. The statement said Min Aung Hlaing's speech was taken out of context, and was actually an observation to senior officer trainees on the nature of the constitution. The ruling National League for Democracy party captured 396 out of 476 seats in the Nov. 8 election, allowing it to form a government led by State Counsellor Aung San Suu Kyi for another five years. The military-backed Union Solidarity and Development Party won only 33 seats. The military has publicly complained several times of electoral fraud and called on the government and the Union Election Commission to review the results. It has said it has found 8.6 million irregularities in voter lists in 314 townships that could have let voters cast multiple ballots or commit other “voting malpractice.”

The election commission said there was no evidence to support the fraud claims. Parliament's new session is set to open Monday in the capital Naypyitaw. The military ran Myanmar for some 50 years before beginning a transitioning to democracy in 2010. The current constitution ensures the country's generals maintain considerable influence in the country's affairs by guaranteeing them a quarter of the seats in parliament and control of a number of key ministries. Alarmed diplomatic missions in Myanmar reacted Friday to the military's statements by issuing a joint statement urging calm. “We urge the military, and all other parties in the country, to adhere to democratic norms, and we oppose any attempt to alter the outcome of the elections or impede Myanmar’s democratic transition,” said the statement issued by the EU, the US, the United Kingdom, Australia and others. Peaceful protests have been held in the past few days by supporters of the military and the Union Solidarity and Development Party. In Yangon, the country's biggest city, about 1,000 demonstrators gathered Saturday next to the famous Shwedagon pagoda. The military has not been alone in criticizing the election. Independent rights groups before and after the polls criticized the disenfranchisement of Rohingya Muslims and the cancellation of the vote in some areas. The election commission cited the dangers of ongoing combat between government forces and ethnic minority guerrillas, but critics suggested specific areas were singled out for cancellation because they were certain to elect lawmakers from parties hostile to Suu Kyi's government. AP

Trump parts with impeachment lawyers a week before Senate trial

ASHINGTON—Former President Donald Trump has parted ways with his lead impeachment lawyers just over a week before his Senate trial is set to begin, two people familiar with the situation said on Saturday. Butch Bowers and Deborah Barbier, both South Carolina lawyers, are no longer with Trump's defense team. One of the people described the parting as a "mutual decision" that reflected a difference of opinion on the direction of the case. Both insisted on anonymity to discuss private conversations. One said new additions to the legal team were expected to be announced in a day or two. The upheaval injects fresh uncertainty

into the makeup and strategy of Trump's defense team as he prepares to face charges that he incited the insurrection at the US Capitol on Jan. 6. However, all but five Senate Republicans this week voted in favor of an effort to dismiss the trial before it even started, making clear a conviction of the former president is unlikely regardless of his defense team. Greg Harris and Johnny Gasser, two former federal prosecutors from South Carolina, are also off the team, one of the people said. According to a different person with knowledge of the legal hires, Bowers and Barbier left the team because Trump wanted them to use a defense that relied on allegations of election fraud, and the lawyers

were not willing to do so. The person was not authorized to speak publicly about the situation and requested anonymity. Trump has struggled to find attorneys willing to defend him after becoming the first president in history to be impeached twice. He is set to stand trial the week of Feb. 8 on a charge that he incited his supporters to storm Congress before President Joe Biden's inauguration in an attempt to halt the peaceful transition of power. After numerous attorneys who defended him previously declined to take on the case, Trump was introduced to Bowers by one of his closest allies in the Senate, South Carolina Sen. Lindsey Graham. Bowers, a familiar figure in Republican legal circles, had years of experience repre-

senting elected officials and political candidates, including then-South Carolina Gov. Mark Sanford against a failed impeachment effort that morphed into an ethics probe. Bowers and Barbier did not immediately return messages seeking comment on Saturday evening. Republicans and Trump aides have made clear that they intend to make a simple argument in the trial: Trump's trial is unconstitutional because he is no longer in office. While Republicans in Washington had seemed eager to part ways with Trump after the deadly events of Jan. 6, they have since eased off of their criticism, weary of angering the former president's loyal voter base. CNN was first to report the departure of the lawyers. AP

A cyclist bikes past a signboard with an image of Myanmar leader Aung San Suu Kyi, in Yangon, Myanmar on Friday, January 29, 2021. Myanmar's election commission rejected allegations by the military that fraud played a significant role in determining the outcome of November's elections, which delivered a landslide victory to Aung San Suu Kyi's ruling party. AP Photo/Thein Zaw

www.businessmirror.com.ph

Banking&Finance BusinessMirror

Asia’s re-engineering

AFTER all, Asia is in a different place to where it was even a year ago. COVID-19 has wrought structural changes, but it is these exact shifts that are presenting underrated opportunities for businesses. Through a wider lens, I see in Asia new supply chain dynamics and digital innovation creating jobs, transforming skills requirements, and remaking economies. Experiencing last year’s growing fragility of the international supply chain, those businesses quick to adapt have re-engineered their approach to sustain growth. With certainty of supply now valued as highly as costs and speed-to-market, supply-chain participants have rebalanced their priorities, focusing on a “just-in-case” model with greater emphases on selfsufficiency and business continuity. The pandemic has also brought digitalisation to the fore, compelling traditional and new players alike to adopt technology to ensure resilience and sustainability. Everything from education, shopping, food and healthcare are shifting online. Asia has already surpassed North America and Western Europe in terms of the share of e-commerce retail sales, with the fast-

Benjamin Hung

est growth coming from India, China and Indonesia. Governments are also accelerating digital interconnections. China’s digital currency, Singapore’s Networked Trade Platform and Hong Kong’s eTradeConnect all serve to bring greater connectivity to facilitate trade and payment flows.

Act now, act decisively

A year from now, the world could look vastly different from what it is today, just like how it did from the last 12 months. At the heart of a resurgent Asia will be fast-changing digitalisation dynamics against a rapidly evolving context. For the bold and decisive, it is this backdrop in Asia that provides a unique, broad, and exciting canvas–albeit a fragmented one. No single business player has dominated any sector in Asia as Google, Amazon or Apple have in the US and around the world. Take messaging apps: LINE dominates in Taiwan and Japan, whereas Telegram, WeChat, Signal, and WhatsApp are popular in other parts of Asia. Likewise for e-commerce platforms, ridehailing apps, and payment wallets. Recognising that this gap exists is key–it’s indicative of the potential opportunities that are available. Businesses that act upon what Asia has to offer today will be well-placed to emerge as tomorrow’s leaders. And that reinforces another element: time is of the essence, and the first-mover advantage is real. Prospective players, then, need to approach this market with an aggressive, dominant-player and failfast-learn-fast mentality. Companies that look to revamp their strategies now while factoring in the profound structural shifts underway will make a meaningful impact. Success in Asia is unlikely to be straightforward. Much will also depend on extraneous factors, including regional stability, US-China relations, the speed by which the pandemic can be controlled, and how governments implement their public policies. Asia also faces substantial risks in climate change, where public and private sectors’ ability to heed sustainability considerations to generate long-term economic growth will be critical. Caveats aside, Asia is the beating heart of the world and I have no doubt that it will pump vibrancy back into the global economy. My message, then, is simple: Watch this space, but don’t wait too long to act. For Asia beckons! Benjamin Hung is Chief Executive Officer for Asia of Standard Chartered plc. and is the Chairman of Standard Chartered Bank (China) Ltd. The views expressed by Mr. Hung in this column do not necessarily reflect those of the BusinessMirror’s.

By Tyrone Jasper C. Piad

porations for the purchase of modern jeepneys. The LandBank introduced last year a credit facility for bus operators to finance their vehicle acquisition. The bank lodged an initial fund of P3 billion in this borrowing program. The loan facility can lend up to 80 percent of the acquisition cost. Fixed interest rate is set at 5 percent per annum for the first three years. The state-run bank said it also teamed up with the Department of Transportation (DOTr) and its attached agencies in launching various programs related to transport modernization initiatives. The bank said it has distributed over P795-million worth of direct cash grants under the fuel subsidy scheme. Over

“Monetary policy support will still be there,” he added. “The Central Bank has been very good in terms of acting very quickly cutting policy rates and implementing other unconventional monetary policy tools.”

@Tyronepiad

Bank of the Philippine Islands (BPI) unit is upbeat with the potential developments in the financial markets, which play a vital role in the smooth operation of capitalist economies, as the state moves to further relax lockdown measures that led to the economic recession. BPI Asset Management and Trust Co. (BPI-AMTC) Chief Investment Officer Smith L. Chua said in a recent online news briefing that the “worst is over for this recession,” noting that the economic decline has been slowing down in the past quarters. Last year, the Philippine economy suffered the deepest cut in the second quarter with -16.9 percent. This eased to -11.5 percent in the quarter and -8.3 percent in the fourth quarter. On average, the economy contracted by 9.5 percent for 2020. “Our economy is already gradually reopening and this is something, perhaps, that we can look forward

‘Financial maturity’

to,” Chua said. He explained that further improvement in business activities highly depends on the availability and inoculation of Covid-19 vaccines to a big portion of the population to allow safe reopening of the economy. The gross domestic product (GDP) is expected to bounce back by 6 percent this year, he said, given that fourth quarter figures already showed milder contraction. Inflation is seen to continue being benign though higher at 3.2 percent on average this year, Chua said. In 2020, consumer price growth was at 2.6 percent.

DESPITE Chua’s bullish sentiment, BPI AMTC President Sheila Marie U. Tan warned there might still be some uncertainties in the market. “We are going to see more risk and continued volatility brought about by the pandemic, as well as global, economic, and social upheavals, even political upheavals,” Tan said. Local investors, however, continue to park their funds in various investments, she noted, adding that BPI already breached the P1-trillion mark in terms of assets under management (AUM). The Ayala-led bank reached the P1-trillion mark by mid-November last year, which showed 14-percent year-to-date growth. The bulk of the AUM amounting to P832 billion was accounted for by BPI-AMTC while BPI Investment Management Inc. registered P190 billion. “We are happy that this is an indication of the Filipinos’ financial maturity,” Tan said. “Filipinos definitely showed last year that they have

embraced the investment culture.”

Offshore, local markets

TO maximize profits, the investing public is urged to put their money in both local and offshore markets due to expected positive developments despite the ongoing coronavirus pandemic. “There is marriage to both markets,” Chua said, referring to equity funds. Locally, Chua is seeing a recovery of corporate earnings this year, which is seen supporting the stock market. He projected the Philippine Stock Exchange index to settle within 7,600 to 8,000 in 2021. On Friday, the benchmark index fell by 3.49 percent to P6,612.62 from the previous day. “I think we might have to anticipate that pent-up demand...will also accrue to those corporations in next year and the year after,” he explained. “For long-term investors, there is a room for you to invest over time.” Meanwhile, Chua explained that offshore markets will allow investors to tap stocks whose companies are operating with the best practices in different fields, including technology and green industries. “We want to be able to tap those industries,” he said, noting that “tremendous” profits are expected from these investments.

‘Amended Amla to boost investor trust, aid OFWs’ By Butch Fernandez @butchfBM & Samuel P. Medenilla

earned money of our overseas Filipino workers go through the legitimate channels when sent to their families in the country.” “It is only fitting to protect the remittances of our OFWs, who help keep our economy afloat,” Poe emphasized.

@sam_medenilla

HE signing into law of the amended Anti-Money Laundering Act (Amla), embodying better safeguards against fraud and organized crime, will signal investors to put more money in the Philippines while helping millions of migrant workers avert stringent rules for transacting, the head of the Senate’s Banking committee said over the weekend. The “fortified Amla,” according to Sen. Mary Grace Natividad S. Poe, “is a fresh signal to investors to put their trust and money into the financial system to help bring around the economy.” With a more effective means for “catching fraudsters, businesses, creditors and the international community can look to the Philippines anew with renewed confidence,” Poe added. This boost is vital in recovering from the impact of the Covid 19 pandemic, at a time “we need the resources of people willing to put in their investments to enliven our sectors, generate jobs and give our people sustainable income,” she said. The new Amla “also sends a clear message to the world that the hard-

LBP OKs ₧1.2-B loan for purchase of PUVs HE Land Bank of the Philippines (LandBank) announced it approved P1.2-billion worth of loans to fund the purchase of modern vehicles last year. The state-run bank said in a statement that the loans were extended to 25 borrowers, allowing them to acquire 574 modern units. Over 40 loan applications, amounting to P2.53 billion, are currently in the bank’s pipeline for the acquisition of 1,126 modern units. This includes the government subsidy of P160,000 per vehicle. The financing support is under the bank’s support package for public utility vehicles, which it said is aimed at providing affordable lending to transport cooperatives and cor-

Bankers: Further reopening economy to halt recession

Asia beckons! VERY day, we are bombarded with headlines and news flashes. Reading these pings, we could all be forgiven for asking “will this year be any different from the last?” Infection rates are hitting record highs, with travel restrictions being further tightened and jobless rates facing a lagged hit. The geopolitical landscape appears as febrile as ever. Amid the lacklustre news flow, it is easy to overlook the profound shifts which are rapidly taking shape. Here in Asia, there are increasing reasons for optimism. Already home to over half of the world’s population and a rising middle class, Covid-19 and geopolitics have accelerated seismic shifts in the region’s business landscape, much of which are structural and enduring. Globalisation is giving way to regionalisation. Fundamental changes are happening in supply chain approaches, trade pacts, digital and consumption patterns, and financial innovation. A lthough Cov id-19 set back progress, we have seen the region’s policymakers act decisively to mitigate its impact, protecting economies from their worst ravages. As it stands, Asia is rebounding faster than the rest of the world. Research estimates Asia’s growth of 7.5 percent in 2021, with China and India leading at 8 percent and 10 percent, respectively, spearheading the global economic revival. Slingshotting the comeback will be the Regional Comprehensive Economic Partnership (RCEP). The RCEP is expected to boost intra-Asian trade, which already accounts for half of Asia’s trade volume. With a harmonisation in trade standards, RCEP’s added connectivity will bolster a rapidly rising north-south corridor. Supply chain shifts precipitated by US-China tensions on top of the already revved-up engine of Asia’s emerging consumer base will bring about a structural rebalancing of global trade corridors. The East will increasingly be producing for the East. And other advances—including enhanced connectivity within the Greater Bay Area and across Asean— will add whirls of vitality.

Monday, February 1, 2021

122,300 transport operators received P6,500 worth of subsidy each. The distribution of cash grants is eyed to be completed by April. The bank said in a statement released last Sunday it provided appraisal services for the North-South Commuter Railway Extension Project. It has also delivered cash entitlements to eligible residents and other projectaffected persons of the said project, which is designed to expand the mass transportation in Metro Manila and adjacent areas. In addition, the bank said its partnership with the DOTr includes the pilot production testing of the automatic fare collection system in public transport. Tyrone Jasper C. Piad

More teeth

WITH the new law, the Anti-Money Laundering Council (AMLC) could now go after more anomalous transactions and impose additional restrictions. President Duterte finally signed into law last Saturday the Republic Act (RA) 11521, or the Act further Strengthening the Anti-Money Laundering Law. The law gives additional powers to the AMLC. It amended provisions of the AntiMoney Laundering Act of 2001 so it will now cover real estate developers and offshore gaming operators accredited by the Philippine Amusement and Gaming Corp. (Pagcor). The new law is expected to prevent the country from being “gray-listed” with the Financial Action Task Force for insufficient safeguards against money laundering transactions.

New coverage

THE law also lowered the amount of “covered transaction” the AMLC

could flag from P4 million, or an equivalent amount in foreign currencies within five consecutive banking days to an amount in excess of P500,000 within one banking day. Also now covered by AMLC jurisdiction are any amount in excess of P5 million or its equivalent currency. Specifically for real estate brokers, the AMLC can investigate transactions involving an amount in excess of P75,000 or its equivalent currency. RA 11521 also specified the AMLC could probe “suspicious transactions” but on the condition it applies for the necessary search and seizure order from competent court.

Account, property freeze

FOR financial transactions in relation to proliferation of weapons of mass destruction and its financing, the AMLC could impose financial sanctions including an ex parte freeze. The freeze order or asset preservation will only be limited to the amount of cash monetary instrument or value of property that court finds there is probable cause to be considered as proceeds of a predicate offense. The Court of Appeals (CA) will look into the said ex parte freeze

from AMLC and conduct hearings within 20 days if it modify or lift the freeze order. The freeze order from CA is capped to six months by RA 11521. The power of the AMLC to freeze monetary instruments and property was extended from 15 days to 20 days.

Data breach

BESIDES the said powers, the new law also imposed restrictions on members of AMLC and its secretariat, barring them from revealing any information on their investigation even after their separation from the council. Those who engage in breach of information security from AMLC could be jailed for three to eight years and fined not less than P500,000 but not more than P1 million. If the violator is a government official, he or she could also face perpetual to temporary absolute disqualification from holding public office. Provisions on violation of information security will also apply to media entities that publish secured information from AMLC. RA 11521 will take effect immediately after being published in the Official Gazette or in a newspaper of general circulation.

Pagcor’s 2020 net income plummets by nearly 84% By Bernadette D. Nicolas @BNicolasBM

AST year’s suspension of the gaming operations of Philippine Amusement and Gaming Corp. (Pagcor) dragged the regulator’s net income in 2020 to its lowest in at least seven years. Based on its statement of comprehensive income, Pagcor’s net income plummeted by 83.75 percent to P1.57 billion last year from P9.659 billion in 2019. The latest net income posted by state-run Pagcor was the lowest since it registered a net income of P3.09 billion in 2013, the oldest available record of its annual statement of comprehensive income posted on its web site. However, Pagcor’s actual net income in 2020 was way above its downgraded target for the year at only P6.33 million. In a message to the BusinessMir-

ror, Pagcor Chairman Andrea Domingo attributed the significant decline in its net income to the “pandemic and problems encountered by the offshore gaming operations.” However, Domingo did not elaborate further. Pagcor’s total income net of gaming taxes and contributions plunged by 51.99 percent to P20.259 billion in 2020 from P42.2 billion in the previous year but managed to exceed its P19.49 billion-target by 3.94 percent. Pagcor, nonetheless, was able to slash total expenses last year by 42.05 percent to P18.68 billion from P32.24 billion the previous year. The figure was also below its P19.44-billion target. Pagcor suspended its gaming operations mid-March last year when government imposed stricter lockdowns to prevent the spread of Covid-19. However, by late August, Pagcor allowed some casinos in the country to reopen limited to a maximum of 30 percent

capacity. The Duterte administration also allowed the partial resumption of operations of Philippine Offshore Gaming Operators (POGOs) in May. Those government tagged as not taxcompliant were prohibited from resuming operations. It was reported in June last year that two POGOs—SC World Development Group Ltd., a unit of Macau’s gambling giant SunCity Group, and Don Tencess Asian Services Solutions Inc.—were also identified by Pagcor to have signified their intention to exit the country and officially asked for cancellation of their offshore gaming licenses. These POGOs brought to 15 the number of entities that have closed down. Pagcor had warned that more POGOs will follow suit, blaming the “stringent” tax rules of the Bureau of Internal Revenue and the restriction of mobility during the lockdown.

A10 Monday, February 1, 2021 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Looking backward and looking forward

ast week we closed the financial books on 2020 and it was not a pretty picture. Of course, it did give those with perfect 20/20 hindsight something to talk, even gloat, about. Even in adversity, there is something good for everyone. Our local economic forecasters had widely different predictions for the final results, proving once again that economics—and financial predictions—are less of a science and more of a religion. Yes, that is too harsh, but you have to admit that it seems like “faith” plays a factor in these forecasts. All of our economic team properly expected the growth numbers would be negative. But the most optimistic was that the Fourth Quarter 2020 economic growth would come in at negative 5 percent. The most pessimistic was at negative 12.2 percent. What one thinks makes quite a difference. The actual result was a negative 8.3 percent. For the full year, “The Optimist” saw a negative 8.6 percent and the “The Pessimist,” negative 10.6 percent. The actual number was a negative 9.5 percent. What is interesting though is that the median—the value separating the higher half from the lower half—was almost spot on at negative 8.5 percent for the fourth quarter and an exact negative 9.5 percent for the full year. As always, it is necessary to look at the details and internals of the GDP numbers. If you are easily bored by numbers, maybe you will want to skip the next two paragraphs. No one will blame you. For the Fourth Quarter 2020 and for the full year, here are the results: Agricultural production was down 2.2 percent and 0.2 percent, respectively. Industrial production contracted by 9.9 percent and 13.1 percent. The service sector shrank by 8.4 percent and 9.1 percent. Household Final Consumption—consumer spending—retreated by 7.2 percent and 7.9 percent. Government spending did go up by 4.4 percent in the fourth quarter and by 10.4 percent for the full year. But “Gross fixed capital formation”—money spent by business for fixed assets like machinery, equipment, and buildings—and new inventory collapsed by 29 percent and by 35.8 percent, respectively. Likewise, “Exports” and “Imports” were also “Dead On Arrival.” The yearlong lockdown created this vicious cycle: no economic activity equals no job growth equals no economic activity. Sad but simple. Now, turning to 2021. Last week, the local press carried the following items. “Philippines among fastest to recover this year. S&P Global Ratings sees the Philippine economy rebounding with a growth of 9.6 percent this year. The economy will rebound strongly in 2021.” By contrast, “Fitch Solutions forecast real GDP growth of 7.6 percent in 2021. Fitch said risks are tilted heavily to the downside.” This is more than the glass being half full or half empty because both forecasts are dependent on reopening the economy. No one can predict with any accuracy when this will happen. The difference comes down to thinking how fast consumers will react when the economy finally does start breaking the “no economic activity equals no job growth equals no economic activity” cycle. That is not simple. Much will depend on the vaccination rollout and progress. The government still is walking a tightrope on its debt situation. Business expansion will depend on consumer spending. The next six months are going to be as difficult as the past six months. No bright light yet at the end of the tunnel.

When life gives us lemons Atty. Jose Ferdinand M. Rojas II

RISING SUN

hile the lockdowns have definitely caused restrictions in movement and disrupted calendars, they have given positive opportunities for some members of society. We have seen many people take up sports and give more time to exercising, and some have used the time to cultivate their home gardens. Others are cooking more meals for the family, or have taken up a new hobby like painting or baking. In a survey of more than 3,000 people conducted in Scotland in May last year, the researchers tried to find out what positive changes resulted from the lockdowns, and who were the groups of people that were able to make these changes. Another study was conducted in Australia among more than a thousand people to find out the same things. Here is a summary of the important results arising from these two studies.

In the survey conducted in Scotland, more than half of the people said that they were able to make positive changes. Some 83 percent reported that they became more appreciative of things that they usually took for granted. And 67 percent said that they had more time to do enjoyable things. Some 65 percent reported that they were able to spend more time in nature/outdoors. Another 62 percent said that they could

BusinessMirror A broader look at today’s business

Thomas M. Orbos

STREET TALK

✝ Ambassador Antonio L. Cabangon Chua Publisher Editor in Chief Associate Editor News Editor Senior Editors

Online Editor Creative Director Chief Photographer Chairman of the Board Ombudsman President Advertising Sales Manager Group Circulation Manager

T. Anthony C. Cabangon Lourdes M. Fernandez Jennifer A. Ng Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Dennis D. Estopace Angel R. Calso Ruben M. Cruz Jr. Eduardo A. Davad Nonilon G. Reyes D. Edgard A. Cabangon Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Aldwin Maralit Tolosa Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–Sun Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

give more attention to their personal health. And 54 percent agreed and said they did more physical activities, while 53 percent said they were able to spend more time with their partner or spouse. For those surveyed in Australia, majority (70 percent) reported having experienced at least one positive effect of the pandemic. Some of these were: more time to spend with loved ones, greater flexibility at work, and appreciation of a less busy life. I would venture to guess that a similar pattern may be observed in

the Philippines. And although many members of our society definitely had a difficult time coping with the pandemic-related challenges (and continue to do so), there are also many positive changes that came out and are coming out of this experience. The lockdowns have definitely afforded us the time and opportunity to take a closer look at our lives, our time, and the activities that we choose to spend our hours on. Many of us were able to determine what’s truly important and see things that we may have missed if the lockdowns didn’t happen because we would have been so busy with the usual things. In a separate paper, many of those surveyed reported that they were able to maintain the changes made even after the lockdowns were eased. Some were even able to improve them further. This is very inspiring for the rest of us. And it definitely teaches us that something good can come out of a difficult situation as long as we recognize opportunities and grab the chance to make the best out of whatever situation presented to us.

Driving growth and enriching human experience

Since 2005

Founder

The lockdowns have definitely afforded us the time and opportunity to take a closer look at our lives, our time, and the activities that we choose to spend our hours on. Many of us were able to determine what’s truly important and see things that we may have missed if the lockdowns didn’t happen because we would have been so busy with the usual things.

uman history is all about travel, exploration and discovery, leading to much growth and the deepening of our collective and individual human experience. From Roman times when an organized network of roads propelled not just trade and commerce but the exchange of ideas, to this age of motorized vehicles, the level of condition and extent of roadways is directly connected to the growth of any city or country. This is very true and I have seen this myself, traversing the old McArthur road in my youth to my home province of Pangasinan, then seeing the ease and efficiency of travel when the North Diversion toll road was built. This roadway, initially constructed and operated by the Construction and Development Corp. of the Philippines, the precursor of the Philippine National Construction Corp., is now in the hands of Manuel Pangilinan, with his Nlex Corp., the tollways group of Metro Pacific, bringing in the needed private sector brand of management that translates to better service and efficiency for the public. In a quick discussion with their group, I took note of the following: Mobility for all. All its expressways—rural-bound or urban-bound —accommodate all classes of vehi-

cles, which are: passenger cars (class 1), buses (class 2), and trucks (class 3). This may not mean much now, but there was a time when certain classes of vehicles were not allowed, thus curtailing overall mobility and growth. Continuing its path to make our lives better. Just two week ago, DPWH Secretary Mark Villar together with the Nlex team headed by its president, J. Luigi Bautista, inspected the P23 billion Nlex Connector Road. Definitely a game changer, this will connect the Nlex and Slex, reducing what was once a two-hour trip to just 20 minutes. This road will have interchanges in C3 and España and will provide better access to the Manila Ports (North Harbor) and airports (Naia and Clark). See the trucks lined up along Quirino and Roxas Blvd? This will all be gone with

With all the problems around us now—the pandemic, the biggest drop in our economy, and the uncertainty of our future, we need all the good news we can get. Definitely, the Nlex Connector is one project worth waiting for.

this new roadway, as well as with the newly built Harbor Link. This will not just reduce traffic but will, moreover, greatly increase commerce as trucks coming to and from the port areas would not need to deal with the restrictive truck bans. Innovation is key. One of the structures inspected by Secretary Villar were the Super T Girders, a new structural design first developed and used in Australia. Incorporated in the construction of the Nlex Connector, these girders are more flexible, structurally efficient, and, yes, aesthetically appealing. Measuring 30 meters long, and weighing 543 tons, over 1,400 girders will be used for the 8-kilometer Nlex Connector project. “Innovation is one of the core values of Nlex, and our use of the Super T beams will speed up construction while assuring us of its integrity,” said Nlex’s big boss J. Luigi Bautista. Distributing progress, reducing traffic. Nlex is certainly geared to pump prime the general economy and stimulate development in long neglected areas in the cities of Manila,

Caloocan, Malabon and Navotas. Traffic will also be greatly reduced. The elevated roadway will traverse the new Caloocan interchange on 5th Avenue/C3 Road in Caloocan City, and will pass over major thoroughfares, notably Abad Santos, Blumentritt, Dimasalang, España and Magsaysay Blvd. The Nlex Connector’s Section 1, which ends at España, will be completed in December 2021. Section 2 ends up in Sta. Mesa, and which will see completion in April or May 2022, before President Duterte’s term ends. The Connector Road will eventually link up with the Metro Manila Skyway Stage 3 of San Miguel at PUP in Sta. Mesa, Manila thus further providing convenience to our motorists. This is the beauty when private conglomerates have the shared vision and of working together. Kudos to MVP and RSA. There is no competition here, only cooperation. All for the common good. With all the problems around us now—the pandemic, the biggest drop in our economy, and the uncertainty of our future, we need all the good news we can get. Definitely, the Nlex Connector is one project worth waiting for.

Thomas “Tim” Orbos is currently a transport policy advisor for an international organization and worked in government on transport and urban development matters. He is an alumnus of Georgetown University and the MIT Sloan School of Management. He can be reached via e-mail—tmo45@ georgetown.edu /thomas_orbos@sloan.mit.edu

www.businessmirror.com.ph

Opinion

Bonanza for local govt

Exposing the bête noire

BusinessMirror

Siegfred Bueno Mison, Esq.

Joel L. Tan-Torres

THE PATRIOT

DEBIT CREDIT First of a series

isual images speak louder than written testimonies. The growing use of CCTV cameras and widespread availability of videos have recently become part of a mounting concern for law enforcers abusive of their powers, as their actions can now be easily recorded. And thanks to social media, the footage can be exposed wide-scale.

Looming as a major hurdle in these efforts of the local government units is the adequacy of the funding for this purpose. Funding sources of LGUs principally come from their tax collections from business and real property impositions, and subsidies or support from the national government, including the Internal Revenue Allotment (IRA). The tax collections of the LGUs are adversely affected by the slowdown in the economy caused by the pandemic. Business enterprises will be paying less and less taxes due to their dwindling operations. The finance officers of the local governments are offering various reliefs to assist the business taxpayers, including the grant of amnesties for tax delinquencies, extended payment deadlines, discounts on full tax payments, and others. The IRA has been a substantial contributory to the finances of the LGUs since this was mandated under the Local Government Code (LGC) of 1992. Recent developments in the IRA system provide much promise for increased funding from this source. Foremost is the Supreme Court decision on GR 199802 promulgated in July 2018. This case originated from the petitions in 2012 of then Congressmen Hermilando Mandanas and Enrique Garcia. The petitioners questioned the manner of determination of the IRA of the local governments and claimed that the LGUs are entitled to a larger amount of IRA compared to what they are receiving. The decisions affirmed most of the petitions of Congressmen Mandanas and Garcia. The major points of the decision are as follows: 1. The pertinent provisions of the LGC are modified to reflect the deletion of the phrase “internal revenue taxes” and instead refers thereafter to National Taxes. 2. All collection of national taxes shall be considered in the computation of the base of the just share of the

Of late, images of a vendor in Paranaque City being handcuffed, pressed to the ground, and kicked in the face by a member of the city’s Task Force during clearing operations, which circulated on social media, spoke piercingly better than words. In the not so distant past, video documentation and social media also showed how a peddler in Quezon City was beaten up when he was accosted by police for violating quarantine restrictions. Another police abuse, despite being caught on camera via CCTV, occurred when police officers were released from detention despite the seemingly overwhelming evidence that showed them summarily killing Army intelligence agents in Jolo. Of course, the case of 17-year-old Kian delos Santos who was fatally shot by police officers conducting an anti-drug operation in Caloocan City became controversial when the official police reports differed from witness accounts and CCTV footage. I think the most alarming display of police arrogance was the case of Sergeant Jonel Nuezca, who, in the presence of his young d aughter, br ut a l ly mu rdered a 52-year-old mother and her 25-year-old son in Tarlac. Nuezca knew he was being filmed; he knew his minor daughter could see what he was doing; yet he did what brutal barbarians do in medieval times. I think these few episodes of police brutality have been happening around the country quite a few times, as part of the lingering aftermath of martial law when law enforcement agents, given that much power, abused it to the detriment of the ordinary Juan. I am not saying

he local executives of our provinces, cities and towns have been and continue to be tested on their response to the challenge posed by the Covid-19 pandemic. Forthcoming is rolling out the vaccination efforts to provide protection against Covid infection, which involves a lot of intervention by the local governments. In addition to securing the logistical and financial requirements for the vaccination initiatives, there is a need for the governors and mayors to conduct an awareness campaign on the unconvinced segment of their constituents on the benefits and the need to be vaccinated. LGUs. For this purpose, the collections of national government shall include the following: (a) The national internal revenue taxes enumerated in Section 21 of the National Internal Revenue Code, as amended, collected by the Bureau of Internal Revenue and the Bureau of Customs; (b) Tariff and customs duties collected by the Bureau of Customs; (c) 50 percent of the value-added taxes collected in the Autonomous Region in Muslim Mindanao, and 30 percent of all other national tax collected in the Autonomous Region in Muslim Mindanao. (d) 60 percent of the national taxes collected from the exploitation and development of the national wealth. (e) 85 percent of the excise taxes collected from locally manufactured Virginia and other tobacco products. (f) The entire 50 percent of the national taxes collected under Sections 106, 108 and 116 of the NIRC as provided under Section 283 of the National Internal Revenue Code; and, (g) 5 percent of the 25 percent franchise taxes given to the National Government. Is this the financial bonanza that the local governments have long been aspiring for?

To be continued Joel L. Tan-Torres is the Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the chairman of the Professional Regulatory Board of Accountancy and partner of Reyes Tacandong & Co. and the SyCip Gorres and Velayo & Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979. This column accepts contributions from the business community. Articles not exceeding 600 words can be e-mailed to boa.secretariat.@ gmail.com.

that impunity and abuse by state agents are getting worse: They are just getting filmed. This abusive mentality being demonstrated by state authorities is not limited to our country. France has struggled with tensions leading to police brutality. Ordinary citizens, the minority youth in most instances, suffer from the iron hands of law enforcers. Adama Traore was one of said French youth who was detained by the police in Beaumont-surOise, north of Paris, after he resisted an ID check and died while in police custody. An infection was initially blamed but later examinations indicated he died of asphyxiation. His death in July 2016 led to a widespread protest. Such an expression of dislike, or repugnance to something, could indeed cost one his life! The incidents follow a proverbial pattern: the blueprint commences at the height of a citizen’s resistance or display of disgust against police brutality. Tensions rise, confrontations take place, and violence is born and committed by the very same people who took an oath not to resort to it. After the fact, the brutality is blamed on the citizen, sometimes red-tagged as enemies of the state or outright liquidated, using the term—“nanlaban kasi.” At best, said events are followed by minute measures devised to illustrate that government has taken into account the excesses committed by certain scalawags in the uniformed service and assurances to improve an obvious yet unconfessed oversight. At worst, the government’s paralysis and abiding support for law enforcers mark the end of the chapter of “lost lives, on to the

Monday, February 1, 2021 A11

The French have a word for a person or thing regarded with aversion. A bête noire may be anything from a one-time annoyance to something that disturbs you persistently over time. Police arrogance and abuse can be the bête noire of Juan’s existence these days. However, the ordinary Juan will likely not call out these authorities for their conceit and cruelty, out of fear of rebuke and contempt. next.” Sadly, there seems to be no definitive and consistent public policy response that can directly attend to the underlying causes of these tensions that spawn generally from a citizen’s dislike for something. Interestingly, the French have a word for a person or thing regarded with aversion. A bête noire may be anything from a one-time annoyance to something that disturbs you persistently over time. Police arrogance and abuse can be the bête noire of Juan’s existence these days. However, the ordinary Juan will likely not call out these authorities for their conceit and cruelty, out of fear of rebuke and contempt. Everyone is aware of the government response against some of its most vocal critics in the persons of Sen. Leila de Lima and journalist Maria Ressa. Humanrights violations being their bête noire, these ladies pounded the drum of opposition to the current administration. Yet, some “extraordinary Juan,” such as Tony Lavina, Marites Vitug, Inday Espina, and even my own daughter Regina Elena, have done their share in pointing out and exposing what can be deemed as their own bête noire: government inefficiencies and inadequacies. Exposing the abuses of government is like walking on a thin rope. You are either vulnerable to falling into a pit of danger or you continue to walk with anxiety and stress, internally deliberating whether a poisonous dart or a long-range spear will hit you from somewhere. Images, live and digital, showing how student activism and

media critics have merited the maltreatment from a few arrogant public officials are a cause for alarm. No wonder the ordinary Juan has shrunk into a cave of anxiety. Exposing the bête noire that ills our society can come with fear. Not everyone can be a Leila de Lima who opted to be vocal in her dissent and thus remain in confinement for four years during her six-year term as senator. No sufficient safety nets seem to be in place for the protection of one’s freedom of speech. Understandably so, since in this earthly realm, we all stand to face harm one way or another. And nothing, except our faith in our Creator, can allay our fears. Speaking out the truth, enforcing one’s right, resisting and exposing every bête noire, when done in the sphere of righteousness, should not make us cower with fright. When we recognize that we are in the comfort of God’s wings, we fear no one. Under His shadow, we find peace, and refuge. Our Creator’s comfort sows confidence not apprehension, protection not peril. In the Bible, Psalm 91:4 tells us: “He will cover you with his feathers, and under his wings you will find refuge; his faithfulness will be your shield and rampart.” As the ordinary Juan may now find it risky to post his grievances on social media, he can be reminded of one of my go-to verses in the Bible: “Even when I walk through the darkest valley, I will not be afraid, for you are close beside me. Your rod and your staff protect and comfort me.” (Psalms 23:4) If only our citizenry can have that same assurance of fortification and guarantee of security from our government, then all can be an extraordinary Juan. And anyone can go ahead and expose that bête noire. A former infantry and intelligence officer in the Army, Siegfred Mison showcased his servant leadership philosophy in organizations such as the Integrated Bar of the Philippines, Malcolm Law Offices, Infogix Inc., University of the East, Bureau of Immigration, and Philippine Airlines. He is a graduate of West Point in New York, Ateneo Law School, and University of Southern California. A corporate lawyer by profession, he is an inspirational teacher and a Spirit-filled writer with a mission. For questions and comments, please e-mail me at sbmison@gmail.com.

Faced with a vaccine emergency, the EU made an enemy of everyone By Alberto Nardelli, Dara Doyle, Suzi Ring & Nikos Chrysoloras Bloomberg Opinion

S soon as the plan was published, senior officials in Brussels could see that their boss had made a terrible mistake. They understood the rationale for vaccine restrictions on shots shipped from the European Union, but they could hardly believe that Ursula von der Leyen had missed the bigger picture and how the proposals would land in Ireland. The European Commission president had been among those insisting through four years of Brexit negotiations that Irish border checks could jeopardize the island’s peace settlement. Less than a month after the trade deal with the UK went into effect, the EU was now the one threatening to put up barriers and unilaterally trigger emergency clauses in its accord with the UK. As opprobrium rained down, officials who’d painstakingly negotiated those agreements and were barely consulted on von der Leyen’s decision sensed the EU’s moral authority being shredded. The proposals swiftly united in condemnation natural enemies across the sectarian divide in Northern Ireland as well as the World Health Organization and the pharmaceutical industry. The events leading up to the decision to control exports show von der Leyen’s team buckling under the immense pressure to fix its vaccination program. Beginning the week under fire for moving too slowly, they ended up possibly making things much, much worse by moving too fast.

On top of the faltering vaccine program, which is likely to cost thousands of lives and billions in lost output, von der Leyen and her team have done real damage to the EU and its self-image as a champion of open markets and the rule of law.

Question of competence

Several officials lamented that her predecessor, Jean-Claude Juncker, would never have let events run out of control in such a way and wondered whether von der Leyen would be forced to bring back some of his advisers to steady the ship. One speculated that EU Health Commissioner Stella Kyriakides is likely to be made the scapegoat. Even those close to von der Leyen acknowledge mistakes were made. In a sign of the lack of foresight at play, officials in Dublin only found out about the move on social media. Some worry the furor may have done permanent damage to the complex arrangements designed to prevent the return of a hard Irish border by handing a free hit to critics of the Brexit agreement and the EU. One official in Brussels said this is what happens when policy making is done too quickly. Von der Leyen’s spokesman, Eric Mamer, said it’s an institutional reality that all decisions go through the president’s cabinet and the college of commissioners. No decisions are taken without college consensus, he added. As von der Leyen and her team fought to contain the crisis, their thinking was shaped by a burning sense of injustice at how AstraZeneca Plc has handled its vaccine contract worth an initial €336 million ($408 million). Bloomberg

spoke to officials across the EU bureaucracy and national governments, most of whom expressed frustration, anger and sadness at the way the commission has handled the situation. But they all signaled a strong conviction that Astra Chief Executive Officer Pascal Soriot had done them wrong, with some even suggesting Astra had breached its contract with the bloc. An exercise that began life as an expedition to bring transparency and gather evidence against the company has quickly spiraled into chaotic mud-slinging that some fear could lead to a trade conflict in the middle of a pandemic.

‘Vaccine hijacking’

Astra triggered the crisis just over a week ago when it revealed it was cutting back planned vaccine supply to the EU by a reported 60 percent to 31 million doses following disruption at a plant in Belgium. At the same time, deliveries in the UK have mostly met expectations, helping the British vaccination program race ahead of the continent. The most recent data show that the EU has administered 2.6 doses per 100 people, compared to the UK’s 12.5 doses and the US’s 8.8. News of the delays sent a jolt of fear and outrage across the continent. “Vaccine diplomacy has turned into vaccine hijacking,” said Croatian Premier Andrej Plenkovic. Astra has indeed used its EU supply chain to fulfill the UK contract. The UK vaccines task force said in December that some of Britain’s initial supply would be coming from Germany and the Netherlands, while German MEP Peter Liese said that even in recent days, vac-

cine going to the UK was being bottled in Germany. The EU is determined to take a closer look at those movements. The Commission’s health services told ambassadors from member states this week that millions of vaccines had been shipped out of the EU in recent months to countries including the UK, China, Israel and Canada, according to a diplomatic cable of the meeting seen by Bloomberg. Some EU officials suspect that Astra was responsible for a portion of those shipments and should have kept back doses for European buyers. But they don’t have the evidence to prove it because the data aren’t broken down by manufacturer.

Export controls

Getting that information was the goal on Monday when the commission’s trade service began drafting plans for a system that would have obliged companies to simply flag their exports. It would also require firms to provide data for exports carried out since December, clearing up just how many doses Astra has already exported. “We’re not planning to impose an export ban or export restrictions,” EU Trade Commissioner Valdis Dombrovskis told reporters on Tuesday. “It’s a matter of transparency.” That was also the moment the Astra CEO chose to go on the offensive with an extensive interview to European newspapers including La Repubblica in Italy. He said the delays were partly due to the EU signing its supply contracts after the UK and rejected accusations of profiteering.

“I’m European, I have Europe at heart,” he said. “So we want to treat Europe as best we can. You know, we do this at no profit, remember?” By Tuesday evening, pressure began to mount from Germany, first, and then France, for a more stringent approach. By Wednesday morning the tensions between the two sides were so bad that they couldn’t even agree if a phone call scheduled for that evening was going ahead. Soriot’s interview enraged officials and member states. Ambassadors were told at a briefing that day that the claims made by the Astra CEO were shocking and not in line with contractual obligations, a diplomatic note seen by Bloomberg says. At a press conference later, health commissioner Stella Kyriakides rejected the drugmaker’s first come, first served arguments. “That may work at the neighborhood butchers, but not in contracts,” she said. At that point, von der Leyen decided that the commission needed to flex its muscle and the focus shifted to a tougher regime that would oblige companies with contracts to supply the EU not just to notify, but also to obtain permission before exporting doses outside the bloc.

Series of blunders

Still, EU commissioners, who normally take decisions collectively, were deeply divided on whether to adopt it. Ultimately, the decision to go for a stronger approach was taken by von der Leyen and her cabinet. And so began a mad rush to draft a plan ahead of a self-imposed Friday deadline. The haste and pressure to de-

liver led to a chain of blunders. Reporters were invited to a technical briefing on Thursday before a proposal was even finalized, something the Commission almost never does. On Friday morning, the EU published its contract with Astra, with confidential sections clumsily redacted in a way that meant the information was easily uncovered by amateur sleuths online. Dombrovskis and Kyriakides were wheeled out to present the new regulations before several elements, including its decision-making clauses, were properly fully firmed up. While the crucial sections on Northern Ireland were a late addition to the document, all relevant senior officials had been involved and had sight of the plan before it went live. Final signoff was the responsibility of von der Leyen’s office. Michel Barnier, who led Brexit negotiations, was not involved in the decision, a person familiar with the process said. Another said that other members of the Brexit task force only were called in at the end of the process and asked about how to notify the U.K. on a measure that had already been agreed. When the mechanism finally hit the Internet, Irish Taoiseach Micheal Martin and U.K. Prime Minister Boris Johnson were both outraged by the decision to usher in temporary export vaccine controls between the EU and Northern Ireland and voiced grave concerns. Von der Leyen quickly spoke to both Martin and Johnson over the phone to try to clear things up. The EU removed the regulation from its website and was forced to backtrack in a statement just before midnight. Von der Leyen followed up with a series of late night tweets.

A12 Monday, February 1, 2021

D.O.T. PROBES BORACAY HOTEL’S POSSIBLE HEALTH VIOLATIONS By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Department of Tourism (DOT) is investigating reports of possible health and safety violations by another hotel in Boracay Island, after one of the latter’s workers was found positive for Covid-19. Tourism Secretary Bernadette Romulo Puyat told the BusinessMirror, “We will verify [the report],” on learning of the case. Co-workers of the Covid-positive patient had raised the matter over the weekend. The Covid-positive staff works in the housekeeping department of Hue Hotels and Resorts Boracay, one of the properties managed by Hospitality Innovators Inc. The Hue staff, who was tested at the Ciriaco Tirol Memorial Hospital on January 26, was found positive with the novel coronavirus two days later. He was initially confined in a guest room on January 28, then brought to the security guard barracks the following day, according to separate sources. The staff was finally

brought to the Aklan Training Center in Kalibo for quarantine on Sunday. If found guilty for not following health and safety protocols in handling Covid-19 patients, this will be the second violation for Hue Hotel. In June 2020, the DOT found the hotel to have accommodated 24 staff from the Bureau of Fire Protection, one of whom turned out Covid-positive. At the time, the island was still closed to leisure tourism. (See, “Boracay hotel may lose business permit for hosting partying staff of BFP,” in the BusinessMirror, June 19, 2020.)

Hotel closed for disinfection

Aklan Gov. Florencio T. Miraflores, through his provincial administrator lawyer Selwyn C. Ibarreta, ordered the “temporary stoppage of operation of Hue Hotels and Resorts in Boracay Island for two (2) days starting January 31, 2021, to February 1, 2021 and subject the Hotel to disinfection procedures,” in a letter dated January 30, 2021 to the hotel’s general manager Sheryl Chan. See “DOT,” A2

Mobility curbs, Covid risks hold back PHL’s outlook

By Bianca Cuaresma

@BcuaresmaBM

HE Philippines is only expected to register a “partial recovery” this year, as continued movement restrictions limit the potential of a domestic consumption-dependent economy to fully recover, an international think tank said.

In a recent research note, Fitch Solutions—the research arm of the Fitch Group—said that since the country’s growth is heavily reliant on consumer spending, the continued mobility restrictions will nip the country’s growth potential in the bud. Fitch Solutions said they forecast the Philippine economy to “only partially recover its losses in 2020,” with their forecast for growth “at just 7.6 percent in 2021.”

“Indeed, a high reliance on domestic consumption made the economy particularly vulnerable to lockdown measures imposed by authorities to contain outbreaks and will limit the ability of the economy to rely on rebounding global trade to kickstart the recovery,” Fitch Solutions said. “With Covid-19 cases averaging over 1,700 a day as of January 26 and the threat of more contagious strains, authorities will likely have

to maintain some elements of mobility restrictions through the course of the year,” it added. Fitch Solutions also warned that a major downside risk to the Philippine outlook is another domestic surge in Covid-19 cases. “As highlighted, the re-imposition of lockdown measures would be highly damaging to the economy. While Philippine authorities have reportedly secured 100 million doses of Covid-19 vaccines, the timeline for the rollout and participation rates in the vaccination programme remain less clear,” Fitch Solutions said. “Vaccinations should begin in February but with a population of around 109 million and distrust towards vaccines, the economy’s vulnerability to further Covid-19 outbreaks will remain high through 2021,” it added. Aside from Fitch Solutions, more and more economists are looking to mobility as a crucial indicator

‘PHL can enlist other nations vs China’s new coast guard law’ By Butch Fernandez

@butchfBM

ENATOR Francis Tolentino suggested Sunday that the Duterte administration enlist support of other countries to join the Philippines in taking a common stand protesting China’s recent passage of a new Coast Guard law that heightens the risk of armed confrontation in the West Philippine Sea. Besides backing the filing of a diplomatic protest last week by Foreign Affairs Secretary Teodoro L. Locsin Jr., Tolentino added that “all affected nations can hold an informal meeting and “agree to file the Joint Resolution affirming a common stand among Asean” that the Philippines can initiate. In a radio interview on Sunday, he added that even as foreign ministers in the regional bloc consult on their next moves, President Duterte could also “talk with his China counterpart.” In a privilege speech last week, Tolentino reminded his peers that the National People’s Congress of the People’s Republic of China recently passed a law, called the Coast Guard Law of the People’s Republic of China, taking effect on Monday. “The law, for the first time explicitly allows its coast guard, under certain circumstances, to fire on foreign vessels, fishing boats, coast guard boats, naval boats, or any peace-seeking NGO boats to defend China’s maritime rights and interests,” Tolentino said. He noted that ‘”this law will take effect on February 1, six (6) days from now.” In his speech at the Senate, Tolen-

tino said he was compelled to bring up the issue in plenary “because a lot of our fishermen are out there. Some of our fishermen, including those from Zambales, Mindoro, Palawan, Batangas, and Cavite, will go fishing not knowing the existence of this newly passed law by the National People’s Congress of China, allowing its coast guard to take, and I quote, ‘all necessary measures including the use of weapons when national sovereignty rights and jurisdiction are being illegally infringed upon by foreign organizations or individuals at sea.’” On Sunday, Tolentino warned the fishermen from these areas to be extra vigilant as they set out to sea, and avoid any encounters with Chinese elements. He said relevant Philippine authorities should also step up their monitoring to ensure no Philippine boat or fisherman is left alone to fend for himself. In his speech last week, the senator warned that China’s law is “very specific,” noting that “it specifies the circumstances under which the different kinds of weapons handheld [I’m referring to pistols or rifles], shipborne missiles, or airborne coming from planes—can be used.” Moreover, Tolentino said, “the law as passed allows the Chinese coast guard personnel to demolish other countries’ structures built on Chinese-claimed reefs and to board and inspect vessels in waters claimed by China.” Airing his concerns in open session, Tolentino said: “ . . . The law further provides that the Chinese coast guard is empowered to set up temporary exclusion zones. These are lockdown zones as needed to stop other vessels and personnel from entering.

of recovery. Just last week, Bangko Sentral ng Pilipinas (BSP) governor Benjamin Diokno said they are starting to adopt so-called user-based “mobility indicators” to track economic activity in the country, especially in relation to pre-Covid levels. An early assessment from the BSP using Apple mobility data showed that the Philippines is among the slowest in the Asean-5 to regain its mobility in 2020. As of December, the Philippines has the lowest mobility indicator followed by Singapore and then Thailand. Malaysia, Vietnam and Indonesia are already back to preCovid mobility levels. “These indicators provide a more granular and real-time look at consumer and business activity. They complement the usual macroeconomic indicators like manufacturing indices and Gross Domestic Product [GDP],” Diokno said.

Reagents’ lack slows PGC work on UK variant tests

MPACTED by the global shortage of sequencing reagents, the University of the PhilippinesPhilippine Genome Center (PGC) was able to sequence only 48 samples for the fourth batch of sequencing of Covid patients, but none of which was positive for the B.1.1.7 or the new UK variant, the Department of Health (DOH) said. Health Undersecretary Maria Rosario Vergeire said that usually, 750 specimens are being sequenced. “But due to shortage we had to use the smaller machine which can only run 48 samples per process,” Vergeire said. Of the 48 samples, 23 cases came from the National Capital Region, mostly from Quezon City; 19 from Calabarzon with most cases from Laguna; 4 from the Cordillera Region; and 2 were returning overseas Filipinos (ROFs). The DOH also reported that seven of these cases have already been tagged as recovered, while the rest are active, either asymptomatic or mild cases. In their report, the UP-PGC said that they were only able to sequence samples from two ROFs, as these two are the only samples that met the minimum amount and cycle threshold value required for sequencing. Moreover, the PGC is also set to sequence another 48 samples this coming week, including samples from CAR and other targeted areas, while waiting for the kits and reagents for genomic sequencing. “Thus, the public is urged to strictly adhere to these standards, especially when going to public places, by properly wearing face masks and face shields, maintaining a 1-meter distance from other people, limiting the time of interaction to others, ensuring proper air circulation in any establishments or venues, and to regularly sanitize hands,” the DOH said. On Sunday, the DOH logged 2,103 additional Covid-19 cases, bringing the total number of infections in the country to 525,618. There were also 11,653 recoveries and 80 deaths posted through the “Oplan Recovery,” a time-based and symptom-based recovery strategies program, which is an initiative that the DOH activated to monitor the status of confirmed Covid-19 deaths and recoveries. Of the total number of cases, 5.2 percent (27,318) are active, 92.8 percent (487,551) have recovered, and 2.05 percent (10,749) have died. Claudeth Mocon-Ciriaco

PHL POSTS DECADE-HIGH $12.8-B BOP SURPLUS IN ‘20 Continued from a1

Likewise, he said the peso-dollar exchange remained stable and was also in the middle of 12 regional currencies. The peso-dollar exchange rate’s coefficient of variation stood at 2.11 percent, better than the 2.24 percent regional average. A higher coefficient of variation means higher volatility of the exchange rate. On top of the Covid-19 pandemic, Beltran said other economic risks include

the collapse of the global markets, the extreme volatility in currencies, and the downgrading of credit ratings of many economies. While Beltran said the peso depreciated slightly in the first month of 2021, he argued this is in line with regional currencies which also depreciated at a slightly higher 0.11 percent average.

GIR up 21.6%

To recall, the country’s GIR rose US$109.8 billion in 2020, up by 21.6

percent from US$87.84 billion in 2019. “As a ratio of imports of goods and services, it rose to 11.7 months from 7.7 months in 2019. These, in turn, boosted the confidence in the Philippine peso,” he said. The country’s GIR is the level of foreign exchange holdings being managed by the Central Bank during a given period. The GIR is a crucial component of the economy as it is often used to manage the country’s foreign-exchange rate against excess volatility.

www.businessmirror.com.ph

Companies BusinessMirror

Monday, February 1, 2021

Toyota remains optimistic about 2021 automotive industry outlook

By Randy S. Peregrino

OYOTA Motor Philippines (TMP) has put their cards on the table for 2021, and it is nothing short of optimistic for the automotive industry. The previous year may have brought severe challenges, but the country’s leading automaker is more than ready this year to do its part in helping move the country forward. At a mini-press conference on Friday, TMP Chairman Alfred Ty sounded an upbeat tone: that the economy is improving and that businesses will recover in no time. He also cited government and industry partners’ efforts to improve market conditions and the overall environment for both businesses and consumers. Likewise, Ty sees 2021 bringing a lot of hope and optimism but conceded that it would not be all smoothsailing moving forward. “While the automotive industry as a whole may have seen challenging sales at the onset of the pandemic, we also saw gradual growth from the lowest point in May. We expect this increase to continue as Filipinos ease back into their daily routines and resume pursuing the life goals that had to take a backseat in 2020,” said Ty. Further, TMP recognized the government’s “Build, Build, Build” Project for the unceasing construction of new roads and highways, which will enable economic recovery efforts. Welcomed, as well, was the administration support by way of recent pronouncements by Board of Investments (BOI) officials on possibly extending the Comprehensive Automotive Resurgence Strategy (CARS) Program, considering badly the pandemic had dented car manufacturing and sales.

“We thank the government for considering the extension of the CARS Program. This is very crucial for the existence of local production not only for the existing players but also in attracting additional investment in the industry. In this automotive industry business, where the market is still at a growing stage and lower-priced vehicles dominate new cars sold, the key to survival is volume. Economies of Scale is much needed to make investments sustainable, whether a Completely Built-Up (CBU) or Completely Knocked Down (CKD) player or both” said Ty.

Expanded market share

Meanwhile, TMP President Atsuhiro Okamoto shared what the company achieved in vehicle sales. Despite the challenges, TMP sold 100,019 units in 2020. That also translates to an expanded share of the market at 41.3 percent. Okamoto also said that based on favorable market factors, the auto industry is forecasted to recover to 320,000 units. Toyota sales are estimated at 130,000 units. However, the TMP president views with caution the recent announcement of safeguard duties and its effect on car companies and the local car manufacturing sector’s entire supply chain. Okamoto pointed out the healthy balance of the company’s CBU and CKD business, emphasizing its position as a significant player for CBU and CKD operations. “With the recent announcement of Safe-

TMP officers are seen in Friday’s mini-press conference at Grand Hyatt-BGC (from left): Atty. Rommel Gutierrez, First Vice President; Masatoshi Toiya, Senior Vice President of Marketing Division; Atsuhiro Okamoto, President; Alfred Ty, Chairman; David Go, Vice Chairman and Treasurer; Vice Socco, Director; and Jing Atienza, SVP. NONIE REYES guard duties, market recovery will be adversely affected, and growth may be much more limited, as early as when provisional duties are implemented. As you know, however, TMP operates on the basis of a combination of locally-produced and imported vehicles. We will maximize efforts to promote our Vios and Innova sales to cushion the impact of safeguard duties. We are counting on the support of Filipinos to buy Filipino,” said Okamoto.

Mobility for all

Ultimately, TMP believes that as the largest mobility company in the Philippines, it has the responsibility to help push the local automotive industry forward and steer the country towards economic recovery. Citing a statement from Toyota Motor Corporation President Akio Toyoda, TMP Chairman Ty stressed the automotive industry’s role as the backbone of every country’s economy. “The automotive industry provides mobility for all of us. And when we talk of the automotive industry, this does not only cover vehicle production and sales but also includes parts, logistics, and public transportation. Mobility brings us a new wind, a change in landscape, and, most importantly, it brings us closer to tomorrow. This 2021, I hope we can continue to support each other as we brave the challenges and seize the opportunities the new year will bring,” Ty concluded.

Batangas logistics hub

Aside from being optimistic, TMP is also beefing up its logistic operations. The company is set to start operating its P4.5-billion Batangas

Vehicle Logistics Hub this year. The cost of the initial phase was estimated at P420 million. The 32-hectare logistics hub will house a Pre-delivery Inspection and Post Production Installation facility situated near Batangas Port. “TMP remains committed to supporting the goal of the government to stimulate the economy and to prepare for the eventual resumption of motorization in the country. The auto industry is a key driver of economic activity and an essential part of the drive to increase mobility. At the heart of the Batangas, Vehicle Logistics Hub is our promise of making ever-better cars for our customers. Preserving the quality of our vehicles, from production in various plants all over the world to delivery dealers and customers, efficient logistics is necessary,” said Okamoto. Capacity-wise, it can accommodate at least 4,500 units at a time and up to 160,000 units per year. Like the Santa Rosa facility, the new site will have a covered 18-truck lane car carrier loading/unloading area. Since TMP is an ardent supporter of the environment, about 6 hectares of this property will remain green.

New SVP of Marketing Division

TMP also introduced its new Senior Vice President of Marketing Division, Masatoshi Toiya. Starting out in 2007 at Toyota Motor Corporation, he also had a stint at Toyota Motor Asia Pacific division. Toiya’s fields of expertise are Demand and Supply, Pricing and Profit, and Human Resources. “This is my first time to work as part of a Toyota distributor, and I am excited that it is with Toyota Motor Philippines. While I don’t have a specific role that I would consider my favorite, I am always up for anything that will challenge me,” he said.

PayMaya: More consumers shifting to digital payments By Lorenz S. Marasigan @lorenzmarasigan

ayMaya said digital payments have “reached a tipping point in 2020,” as half of online shopping transactions based on value were coursed through cashless means. Orlando B. Vea, the founder and chief executive of PayMaya, said digital payments have “overtaken cash as the preferred mode of payment” for online transactions, citing data from Google, Temasek, Bain & Co., and Euromonitor. “From cash on delivery, today COD now means cashless orders and delivery. In 2020 alone, we processed over P95 billion worth of online shopping transactions across all of our platforms, which only shows that consumer preference for cashless payments and online shopping is overwhelmingly present,” he said. Vea said this means that the country is now “on the cusp of an online shopping explosion in the next two years.” The collaboration among financial technology (fintech) providers, digital players, businesses, and the government will likely accelerate the pivot to digital, he added. The Department of Trade and Industry (DTI) on Friday updated the ecommerce Philippines Roadmap 2022, increasing its target of bringing the

number of e-commerce merchants in the country to 1 million from 500,000 and its target of bringing the contribution of the industry to GDP from 3.4 percent to 5.5 percent. “As we recharge our economy and build back better in the post-pandemic era, let us create a ‘Better Normal’ by taking advantage of the benefits of e-commerce. And as we aim for fast, convenient, and easy commerce in a digital world, let us remember that more e-commerce means more jobs and employment generated for our countrymen,” Trade Secretary Ramon M. Lopez said. Vea added that while the conditions created by the pandemic accelerated the development of online trade, the industry also needs to bond together and support the entire ecosystem. This, he said, “will turbo-charge its growth all the way to 2022.” “With the guidance of DTI and the push to make e-commerce easy for all players involved, we are seeing online shopping and cashless payments boom in the country like never before. Consumers are now used to ordering online or via their phones and paying via cashless, and many businesses have accelerated their migration to digital, so there’s no turning back now when it comes to digital payments and e-commerce in the Philippines.”

Companies BusinessMirror

Monday, February 1, 2021

PSE STOCK QUOTATIONS

January 29, 2021

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

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

43.6 100.7 79.45 24.2 7.46 9.76 45 21 25.5 55.5 17.2 126.3 71.35 0.93 3.78 3.38 1.52 0.395 0.72 151.5 2,100 1.05

43.75 102.1 80.05 24.3 8.49 9.78 45.45 23 25.7 56 17.56 129.9 71.45 0.94 3.79 3.55 1.57 0.42 0.74 153.8 2,188 1.08

43.6 103.9 82.5 24.2 7.41 9.85 45.9 23 26.9 55.6 17.2 125.1 71.05 0.94 3.84 3.42 1.42 0.385 0.8 153.9 2,100 1.05

43.75 104.5 82.5 24.5 8.49 9.86 45.9 23 26.9 56 17.64 129.9 71.35 0.94 3.84 3.42 1.6 0.42 0.8 153.9 2,102 1.05

43.5 100.7 79.45 24.15 7.41 9.77 45 23 25.45 55.2 17.2 125.1 71.05 0.93 3.76 3.38 1.42 0.365 0.7 151.3 2,100 1.05

43.75 100.7 79.45 24.3 8.49 9.78 45 23 25.5 56 17.64 129.9 71.35 0.93 3.78 3.38 1.58 0.42 0.72 153.8 2,100 1.05

6,600 287,675 3,657,860 372,904,576 4,762,370 383,390,568.50 149,000 3,616,655 1,200 9,972 136,800 1,340,581 10,421,500 472,862,115 700 16,100 1,035,600 27,075,460 2,570 142,798 700 12,084 341,560 43,741,476 19,940 1,420,965.50 5,000 4,680 663,000 2,508,920 45,000 152,450 329,000 494,940 680,000 266,100 491,000 349,960 1,440 218,562 250 525,090 25,000 26,250

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 AGRINURTURE AXELUM BOGO MEDELLIN CNTRL AZUCARERA CENTURY FOOD DEL MONTE DNL INDUS EMPERADOR SMC FOODANDBEV ALLIANCE SELECT FRUITAS HLDG GINEBRA JOLLIBEE LIBERTY FLOUR MAXS GROUP MG HLDG SHAKEYS PIZZA ROXAS AND CO RFM CORP ROXAS HLDG SWIFT FOODS UNIV ROBINA VITARICH CONCRETE A CEMEX HLDG DAVINCI CAPITAL EAGLE CEMENT EEI CORP HOLCIM MEGAWIDE PHINMA TKC METALS VULCAN INDL CROWN ASIA EUROMED LMG CORP MABUHAY VINYL PRYCE CORP CONCEPCION GREENERGY INTEGRATED MICR IONICS PANASONIC SFA SEMICON CIRTEK HLDG

6.39 1.29 24 1.05 29.6 75.5 261 14.5 3.5 3.67 11.3 20.1 9.91 7.36 3.1 70.95 14.22 17.26 8.08 6.63 9.98 67.95 0.62 1.42 56.55 177.6 32 6.25 0.33 6.81 1.13 4.62 1.63 0.125 135 0.87 51.35 1.33 6 13.06 7.3 5.98 7.12 9.75 1.16 1.74 1.8 2.14 4.55 4.52 5.64 20.1 2.98 12.86 1.17 5.82 1.52 7.27

6.4 1.3 24.8 1.06 29.8 75.95 267 14.56 3.54 3.75 11.68 20.2 9.95 7.37 3.11 76.8 14.5 17.5 8.3 6.64 9.99 68 0.63 1.43 57.7 177.7 34.35 6.3 0.335 6.85 1.14 4.71 1.74 0.132 135.6 0.88 52.9 1.34 6.05 13.98 7.32 5.99 7.14 9.8 1.17 1.75 1.85 2.16 4.87 4.56 5.85 20.3 3 12.88 1.18 5.9 1.53 7.28

5.8 1.32 25.6 1.02 29.25 75.5 280 14.72 3.56 3.68 11.26 20.3 9.9 7.42 2.9 71.15 14.8 17.2 8.16 6.99 9.98 68 0.62 1.44 58.05 179.6 32.8 5.93 0.33 6.96 1.13 4.74 1.64 0.125 142 0.87 52.95 1.36 6.05 13.4 7.2 6.04 7.3 9.7 1.2 1.76 1.85 2.15 4.54 4.56 5.18 20.2 3.07 12.3 1.2 5.55 1.56 6.99

6.52 1.32 25.8 1.16 29.95 78 282.8 15 3.56 3.75 11.68 20.35 9.98 7.59 3.2 71.15 14.8 17.5 8.45 6.99 9.99 68 0.64 1.48 59.7 180.5 33 6.4 0.34 7.1 1.15 4.74 1.64 0.133 142.2 0.89 52.95 1.37 6.05 13.98 7.5 6.04 7.3 9.8 1.2 1.93 1.85 2.16 4.54 4.56 5.88 20.3 3.07 13.5 1.23 6 1.64 7.29

5.75 1.28 24 0.99 29.25 75.45 261 14.5 3.5 3.67 11.26 19.6 9.86 7.36 2.9 70.95 14.2 17.12 8 6.6 9.9 67.05 0.62 1.4 56 177.7 30 5.93 0.3 6.85 1.09 4.62 1.63 0.125 135 0.86 51.35 1.31 5.85 13.06 7.2 5.98 7.1 9.7 1.11 1.69 1.8 2.13 4.54 4.56 5.17 20.05 2.83 12.3 1.17 5.55 1.53 6.85

6.4 1.3 24 1.05 29.8 75.5 261 14.5 3.54 3.7 11.68 20.2 9.92 7.36 3.1 70.95 14.22 17.5 8.3 6.63 9.99 67.95 0.62 1.43 57.7 177.7 33 6.25 0.33 6.85 1.14 4.62 1.63 0.125 135 0.88 51.35 1.34 6.05 13.98 7.32 5.99 7.12 9.8 1.16 1.74 1.85 2.16 4.54 4.56 5.85 20.3 3 12.88 1.18 5.9 1.53 7.28

199,448,100 1,805,000 6,887,300 508,548,000 988,600 19,330 984,720 2,603,100 1,360,000 119,000 43,000 338,200 86,300 203,700 2,698,000 440 9,000 2,607,600 304,500 2,123,700 1,104,800 60,160 1,578,000 10,400,000 220,110 1,333,720 3,200 362,500 17,050,000 1,199,600 3,186,000 19,000 110,000 750,000 2,687,560 2,339,000 850 2,749,000 80,100 63,600 83,800 597,600 1,029,500 28,000 763,000 16,717,000 84,000 52,000 1,412,000 2,000 375,300 14,500 30,156,000 12,031,200 1,345,000 10,400 3,150,000 10,021,400

43,750 -270,500,232 -117,126,214.50 -82,620 -512,397 -125,566,770 -9,539,355 27,986 -1,764 15,914,861 -585,783.50 593,160 -63,000 -141,590 7,625 409,500 26,250

1,233,377,721 2,328,210 169,186,075 547,774,380 29,286,610 1,462,631 263,875,280 38,040,852 4,780,780 439,240 500,868 6,782,291 855,936 1,510,276 8,387,560 31,252 131,440 44,909,210 2,454,676 14,339,537 11,011,504 4,074,814 978,690 14,972,680 12,913,709 238,327,214 101,180 2,248,291 5,465,500 8,336,731 3,548,940 89,490 179,570 94,550 369,302,773 2,050,860 44,687.50 3,701,090 476,035 850,706 611,487 3,584,507 7,346,611 272,150 876,370 30,962,460 153,300 111,300 6,410,480 9,120 2,101,224 292,530 89,610,450 152,913,414 1,621,910 61,825 4,938,630 72,167,761

119,513,970 64,500 -125,248,715 -3,923,510 3,872,485 -663,162.50 -209,052,998 -4,684,360 -1,767,300 106,430 -4,672 233,851 37,158 -171,230 1,962,812 440,000 -6,062,457 2,203,349 95,657.50 -150,290 7,794,282 -77,975,138 579,089 -235,700 -7,328,489 -1,590,500 -56,790 -189,307,053 483,500 1,385,480 -27,010 -158,038 -2,075,798 -2,360 -185,450 -177,300 -2,618,410 -47,885,630 266,300 59,070 -5,971,935

HOLDING & FRIMS ABACORE CAPITAL 0.9 0.91 0.88 0.96 0.88 0.9 35,304,000 32,279,720 ASIABEST GROUP 8.04 8.39 8.12 8.72 8.04 8.09 35,100 284,591 AYALA CORP 770 776 785 791.5 760 770 560,020 434,266,940 ABOITIZ EQUITY 39.8 40 42.5 42.9 39.5 39.8 3,977,700 160,619,070 ALLIANCE GLOBAL 9.89 9.9 9.57 10.38 9.4 9.9 10,743,200 106,692,065 2.75 2.77 2.81 2.85 2.74 2.75 1,286,000 3,585,650 AYALA LAND LOG 6.6 6.94 6.58 6.6 6.58 6.6 2,300 15,160 ANSCOR 0.77 0.79 0.8 0.82 0.75 0.79 1,086,000 840,430 ANGLO PHIL HLDG ATN HLDG A 0.87 0.89 0.9 0.92 0.85 0.87 4,044,000 3,554,650 ATN HLDG B 0.86 0.92 0.93 0.93 0.86 0.92 231,000 200,250 COSCO CAPITAL 5.02 5.15 5.18 5.19 4.96 5.15 1,702,300 8,585,749 DMCI HLDG 5.2 5.23 5.26 5.26 5.09 5.23 2,809,400 14,505,226 FILINVEST DEV 8.56 9.05 8.56 8.56 8.56 8.56 6,000 51,360 0.225 0.242 0.225 0.225 0.225 0.225 500,000 112,500 FORUM PACIFIC GT CAPITAL 532 534 531 534 522 534 226,850 120,277,965 3.41 3.89 3.8 3.8 3.8 3.8 1,000 3,800 HOUSE OF INV JG SUMMIT 60.8 61 66.3 66.5 60.8 60.8 8,679,720 542,554,561 JOLLIVILLE HLDG 4.6 5.42 5.55 5.55 5.55 5.55 1,000 5,550 LODESTAR 1.39 - 0.92 1.39 0.89 1.39 106,121,000 140,180,700 LOPEZ HLDG 3.72 3.73 3.73 3.73 3.72 3.72 1,086,000 4,043,460 LT GROUP 13.2 13.26 13.14 13.26 12.9 13.26 3,189,900 41,576,240 0.53 0.54 0.5 0.55 0.47 0.55 786,000 399,070 MABUHAY HLDG 1.8 2.04 1.9 2.45 1.9 2.04 78,000 160,610 MJC INVESTMENTS METRO PAC INV 4.04 4.09 4.1 4.18 4.03 4.04 30,957,000 125,918,360 PACIFICA HLDG 4.5 5 4.52 5 4.3 5 263,000 1,209,880 PRIME MEDIA 0.85 0.89 0.89 0.89 0.81 0.85 43,000 37,540 SOLID GROUP 1.16 1.2 1.17 1.2 1.16 1.2 152,000 177,700 SYNERGY GRID 311 337 311 311 311 311 870 270,570 SM INVESTMENTS 985 995.5 1,016 1,033 985 985 472,445 470,527,195 122.1 123.6 124.5 124.5 122 122.1 188,370 23,111,460 SAN MIGUEL CORP 0.79 0.8 0.82 0.82 0.72 0.8 815,000 632,550 SOC RESOURCES SEAFRONT RES 2.4 2.42 2.41 2.43 2.4 2.42 86,000 208,550 TOP FRONTIER 137 139.4 136 139.4 136 139.4 2,230 310,800 WELLEX INDUS 0.23 0.235 0.225 0.235 0.225 0.235 1,750,000 394,590 ZEUS HLDG 0.215 0.225 0.211 0.225 0.211 0.225 550,000 117,970

154,530 -185,556,170 -61,428,970 -18,580,836 -288,500 1,978 -895,841 -6,727,554 34,240 -78,902,145 -398,767,801.50 -12,050 -2,752,430 -29,359,358 500 -66,741,260 -48,000 -228,436,030 -11,452,640 -2,410 2,760 -

PROPERTY ARTHALAND CORP 0.68 0.69 0.71 0.71 0.67 0.69 660,000 446,680 AYALA LAND 37.7 39 38.6 39.7 37.7 37.7 18,671,800 717,422,500 ARANETA PROP 1.3 1.34 1.34 1.34 1.3 1.34 70,000 93,560 AREIT RT 32 32.05 31.8 32.1 31.8 32 1,166,700 37,303,495 1.58 1.6 1.6 1.6 1.58 1.58 278,000 442,240 BELLE CORP 0.89 0.9 0.91 0.92 0.88 0.89 1,246,000 1,113,080 A BROWN 0.78 0.8 0.78 0.78 0.78 0.78 12,000 9,360 CITYLAND DEVT CROWN EQUITIES 0.152 0.154 0.154 0.157 0.15 0.155 930,000 140,870 CEBU HLDG 5.7 5.87 5.7 5.7 5.7 5.7 20,000 114,000 CEB LANDMASTERS 4.96 4.97 4.97 5 4.95 4.96 257,600 1,281,845 CENTURY PROP 0.41 0.415 0.42 0.42 0.405 0.41 1,650,000 679,950 CYBER BAY 0.335 0.34 0.34 0.34 0.33 0.33 1,780,000 591,650 DOUBLEDRAGON 14.2 14.3 14.3 14.3 14.16 14.3 561,800 7,989,538 6.92 7 6.9 6.92 6.87 6.92 109,700 756,329 DM WENCESLAO EMPIRE EAST 0.295 0.31 0.3 0.31 0.295 0.3 610,000 184,050 0.086 0.088 0.086 0.088 0.086 0.088 860,000 74,780 EVER GOTESCO FILINVEST LAND 1.1 1.11 1.11 1.11 1.1 1.11 9,490,000 10,487,790 GLOBAL ESTATE 0.85 0.88 0.9 0.9 0.85 0.85 1,070,000 917,780 8990 HLDG 7.5 7.89 7.42 7.5 7.38 7.5 29,000 215,932 PHIL INFRADEV 1.28 1.31 1.33 1.33 1.28 1.31 1,466,000 1,902,270 CITY AND LAND 0.68 0.7 0.68 0.7 0.68 0.68 47,000 31,980 3.82 3.88 3.81 3.88 3.77 3.82 24,249,000 92,839,330 MEGAWORLD 0.48 0.485 0.495 0.51 0.475 0.48 82,720,000 40,383,900 MRC ALLIED 0.395 0.435 0.44 0.44 0.395 0.395 200,000 81,950 PHIL ESTATES PRIMEX CORP 1.26 1.31 1.24 1.32 1.24 1.32 55,000 68,590 ROBINSONS LAND 18.96 18.98 19 19.08 18.64 18.98 4,754,000 90,136,516 PHIL REALTY 0.29 0.305 0.3 0.31 0.295 0.31 60,000 18,350 ROCKWELL 1.49 1.54 1.55 1.57 1.5 1.5 767,000 1,163,720 SHANG PROP 2.6 2.67 2.58 2.67 2.56 2.67 159,000 422,960 2.1 2.17 2.1 2.17 2.03 2.17 1,337,000 2,754,290 STA LUCIA LAND 35.3 35.5 36.9 36.9 35.3 35.3 19,797,800 707,371,360 SM PRIME HLDG 4.02 4.13 4.02 4.14 4.01 4.14 6,000 24,580 VISTAMALLS SUNTRUST HOME 1.68 1.69 1.69 1.78 1.69 1.69 1,850,000 3,202,220 VISTA LAND 4.17 4.2 4.34 4.34 4.16 4.2 1,890,000 7,966,200

-4,030 -118,561,270 -5,142,200 -151,010 -178,040 -138,818 -153,550 224,400 -1,407,092 24,000 -1,720.00 -5,732,230 -186,610 6,104,880 160,950 -31,873,344 196,100 347,000 204,000 -438,875,445 -111,070 -1,746,520

SERVICES ABS CBN 12.62 12.7 13.4 13.4 12.6 12.7 582,300 7,482,484 GMA NETWORK 5.94 5.95 5.93 5.99 5.9 5.95 217,100 1,292,167 MANILA BULLETIN 0.45 0.465 0.455 0.47 0.445 0.465 540,000 245,550 MLA BRDCASTING 11.02 11.8 11.5 11.5 11.5 11.5 300 3,450 GLOBE TELECOM 1,941 1,954 2,000 2,014 1,941 1,941 161,185 316,696,575 1,313 1,329 1,373 1,397 1,313 1,313 198,440 264,868,760 PLDT 0.193 0.194 0.196 0.208 0.18 0.194 2,953,790,000 578,402,500 APOLLO GLOBAL 15.54 15.6 15.6 15.72 15.4 15.54 2,186,100 34,068,906 CONVERGE 5.05 5.09 4.99 5.2 4.9 5.05 996,000 4,972,630 DFNN INC DITO CME HLDG 11.98 12 11.92 12.1 11.7 12 11,838,700 141,514,832 IMPERIAL 1.75 1.9 1.75 1.91 1.74 1.91 9,000 15,880 ISLAND INFO 0.127 0.13 0.137 0.137 0.12 0.13 11,540,000 1,447,020 JACKSTONES 1.81 1.89 1.86 1.86 1.86 1.86 1,000 1,860 3.11 3.13 3.21 3.24 3.05 3.11 3,189,000 10,028,890 NOW CORP 0.305 0.31 0.31 0.32 0.305 0.305 10,700,000 3,339,250 TRANSPACIFIC BR 2.6 2.65 2.55 2.73 2.55 2.65 710,000 1,877,880 PHILWEB 8.4 8.45 8.78 8.78 8.3 8.49 75,500 630,443 2GO GROUP ASIAN TERMINALS 14.54 14.7 14.7 14.7 14.7 14.7 60,700 892,290 CHELSEA 4.24 4.25 4.38 4.39 4.21 4.24 1,259,000 5,395,670 CEBU AIR 47.2 47.5 46.25 47.95 45.5 47.5 517,800 24,023,435 INTL CONTAINER 118.5 120 121.6 123.5 118.5 118.5 2,838,680 340,182,011 16 16.2 15.52 16.2 15.52 16.2 23,600 381,620 LBC EXPRESS LORENZO SHIPPNG 0.97 1.05 0.96 1.05 0.96 1.05 442,000 424,500 MACROASIA 5.19 5.2 5.2 5.35 5.15 5.2 1,474,500 7,698,672 2.24 2.25 2.17 2.25 2.11 2.25 820,000 1,821,590 METROALLIANCE A PAL HLDG 6.35 6.4 6.6 6.6 6.35 6.4 28,000 178,536 HARBOR STAR 1.3 1.34 1.36 1.36 1.3 1.3 1,519,000 1,985,790 ACESITE HOTEL 1.46 1.53 1.46 1.46 1.46 1.46 1,000 1,460 BOULEVARD HLDG 0.034 0.036 0.036 0.036 0.034 0.034 134,200,000 4,659,600 3.75 3.95 4 4 3.75 3.75 1,278,000 5,056,010 DISCOVERY WORLD WATERFRONT 0.5 0.52 0.51 0.52 0.49 0.52 8,293,000 4,214,690 6.53 6.79 7.1 7.1 6.51 6.53 3,400 23,316 CENTRO ESCOLAR 551 555 555 555 555 555 30 16,650 FAR EASTERN U IPEOPLE 8.07 8.94 8.07 8.1 8.06 8.06 5,900 47,650 STI HLDG 0.395 0.4 0.405 0.405 0.395 0.395 7,770,000 3,109,500 BERJAYA 4 4.25 4.49 4.5 4.25 4.25 24,000 105,350 BLOOMBERRY 7.84 7.97 7.56 7.97 7.4 7.97 5,013,300 39,243,469 1.99 2.09 2.09 2.09 2 2 154,000 309,280 PACIFIC ONLINE LEISURE AND RES 1.68 1.7 1.66 1.75 1.66 1.68 217,000 365,980 2.1 2.15 2.2 2.2 2.1 2.1 33,000 70,800 MANILA JOCKEY PH RESORTS GRP 2.55 2.56 2.64 2.69 2.5 2.56 6,858,000 17,779,620 PREMIUM LEISURE 0.44 0.445 0.44 0.45 0.435 0.44 3,990,000 1,747,450 PHIL RACING 6.5 6.8 6.5 6.8 6.5 6.8 38,200 248,335 ALLHOME 8.5 8.69 8.51 8.69 8.32 8.69 406,600 3,454,368 1.43 1.45 1.49 1.49 1.43 1.43 1,890,000 2,726,620 METRO RETAIL 36 36.5 38 38.1 36 36 3,916,500 145,303,530 PUREGOLD 61.1 61.15 62 62 60.5 61.15 753,260 46,043,093 ROBINSONS RTL 101 102 104 106.5 102 102 61,570 6,390,330 PHIL SEVEN CORP SSI GROUP 1.29 1.31 1.28 1.34 1.28 1.29 2,207,000 2,865,910 WILCON DEPOT 17.5 17.6 18 18 17.4 17.6 4,375,200 76,880,058 APC GROUP 0.425 0.43 0.43 0.44 0.425 0.425 4,290,000 1,853,600 EASYCALL 6.81 7.2 6.9 7.4 6.81 6.81 62,800 440,280 433.2 450 437 450 437 450 410 182,428 GOLDEN BRIA IPM HLDG 4 5 5 5 5 5 1,900 9,500 PAXYS 2.25 2.3 2.3 2.3 2.3 2.3 2,000 4,600 PRMIERE HORIZON 1.89 1.9 1.89 2.03 1.85 1.9 78,476,000 151,735,090 SBS PHIL CORP 4.67 4.8 4.8 4.8 4.8 4.8 1,000 4,800

-78,346,255 -152,320,915 6,484,090 16,945,380 -1,619,760 -2,627,094 7,620 845,970 -325,600 -226,870 -892,290 -472,460 13,983,325 -91,179,064 379,477 -12,760 -1,307,680 -115,500 40,800 7,100 -29,029 -1,880,850 12,670,613 35,280 -107,010 17,600 335,060 -922,290 -64,354,815 -22,515,375.50 -176,954 -889,170 -7,164,190 25,500 2,257,010 -

MINING & OIL ATOK 6.1 6.12 5.65 6.21 5.64 6.1 1,036,300 6,258,528 1,200,000 APEX MINING 1.51 1.53 1.54 1.58 1.51 1.51 2,607,000 3,999,430 1,082,220 ABRA MINING 0.0048 0.0049 0.0051 0.0055 0.0047 0.0049 34,240,000,000 173,735,300 518,600 ATLAS MINING 6.16 6.2 6.2 6.22 6.1 6.2 716,800 4,430,497 3.15 3.18 3.18 3.18 3.15 3.18 53,000 167,950 BENGUET A BENGUET B 2.99 3.1 3.05 3.05 3.05 3.05 20,000 61,000 COAL ASIA HLDG 0.305 0.315 0.32 0.325 0.3 0.315 2,240,000 708,550 CENTURY PEAK 2.81 2.84 2.86 2.86 2.8 2.84 225,000 635,540 504,480 DIZON MINES 7.8 8.49 7.62 8.49 7.62 8.49 600 4,764 FERRONICKEL 2.3 2.31 2.54 2.55 2.3 2.31 22,521,000 53,536,090 2,017,710 GEOGRACE 0.36 0.37 0.355 0.41 0.325 0.37 12,150,000 4,511,700 56,000 LEPANTO A 0.148 0.15 0.145 0.152 0.145 0.15 12,310,000 1,827,390 0.154 0.158 0.152 0.16 0.152 0.158 910,000 143,740 LEPANTO B MANILA MINING A 0.01 0.011 0.01 0.011 0.01 0.011 251,700,000 2,529,000 MANILA MINING B 0.01 0.011 0.01 0.01 0.01 0.01 4,700,000 47,000 MARCVENTURES 1.35 1.36 1.47 1.49 1.35 1.36 6,259,000 8,745,830 -7,950 NIHAO 2.55 2.61 2.8 2.86 2.54 2.63 262,000 691,080 -2,550 NICKEL ASIA 4.7 4.74 4.97 5.1 4.7 4.7 23,170,000 112,749,330 -16,199,620 OMICO CORP 0.395 0.415 0.39 0.41 0.39 0.41 100,000 39,450 ORNTL PENINSULA 0.96 1 0.89 1.04 0.84 1 10,943,000 10,674,020 10,460 4.29 4.3 4.36 4.38 4.26 4.29 894,000 3,868,810 -281,040.00 PX MINING 12.26 12.28 12.82 12.82 12.28 12.28 1,360,500 17,006,782 -6,667,302 SEMIRARA MINING 0.0068 0.007 0.0078 0.0079 0.0065 0.0068 144,000,000 1,011,900 1,600 UNITED PARAGON ACE ENEXOR 13.54 13.56 13.28 13.9 13.26 13.56 152,100 2,068,654 -276,368 ORNTL PETROL A 0.012 0.013 0.013 0.013 0.012 0.013 250,600,000 3,123,100 ORNTL PETROL B 0.012 0.013 0.013 0.014 0.012 0.012 1,885,400,000 24,497,400 2,400 PHILODRILL 0.013 0.014 0.014 0.014 0.013 0.014 283,700,000 3,771,400 42,000 PXP ENERGY 9.05 9.07 9.59 9.59 9.02 9.05 2,738,900 25,252,910 1,617,682 PREFFERED HOUSE PREF A 101 102 101 101 101 101 500 50,500 AC PREF B1 516 527 527 527 527 527 100 52,700 ALCO PREF B 101.5 102.5 102.5 102.5 102.5 102.5 1,060 108,650 ALCO PREF C 102.6 109.9 102.5 102.5 102.5 102.5 500 51,250 AC PREF B2R 511.5 521 511.5 511.5 511.5 511.5 200 102,300 101 102.5 100.6 102.5 100.6 101 23,980 2,426,215 70,420 DD PREF 980 1,020 1,015 1,020 1,015 1,020 1,030 1,045,600 GTCAP PREF A GTCAP PREF B 1,028 1,030 1,028 1,028 1,028 1,028 500 514,000 MWIDE PREF 101.9 102 102 102 102 102 9,990 1,018,980 MWIDE PREF 2A 90.2 120 100 100 100 100 500 50,000 MWIDE PREF 2B 100.1 101.5 101.4 101.4 101.4 101.4 1,300 131,820 PNX PREF 3B 104.7 104.8 104.7 104.7 104.7 104.7 380 39,786 PNX PREF 4 1,003 1,004 1,005 1,005 1,003 1,003 2,805 2,816,235 1,017 1,050 1,049 1,049 1,049 1,049 5 5,245 PCOR PREF 2B PCOR PREF 3A 1,093 1,094 1,094 1,094 1,094 1,094 1,500 1,641,000 PCOR PREF 3B 1,130 1,139 1,130 1,130 1,130 1,130 50 56,500 SMC PREF 2C 79.2 79.4 79.45 79.45 79.4 79.4 250 19,856 SMC PREF 2E 76.8 77.95 77.15 77.15 77.15 77.15 160 12,344 SMC PREF 2F 77.4 78.4 77.5 78 77.4 77.4 126,150 9,784,752 SMC PREF 2H 76.5 77.2 76.5 76.5 76.5 76.5 41,630 3,184,695 SMC PREF 2I 76.95 78 77 77 77 77 26,600 2,048,200 76.05 76.1 76.1 76.1 76.05 76.05 6,430 489,308 SMC PREF 2J SMC PREF 2K 76.15 76.25 76.05 76.25 76.05 76.1 55,200 4,208,660 PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 12.72 13.08 13.2 13.5 12.72 12.72 61,200 796,892 128,472 GMA HLDG PDR 5.9 5.97 5.9 5.9 5.9 5.9 1,900 11,210 6,490 WARRANTS LR WARRANT 0.84 0.88 0.88 0.89 0.88 0.88 314,000 276,330 8,800 SMALL & MEDIUM ENTERPRISES ALTUS PROP 18.8 19 21 21 19 19 504,000 9,854,840 -721,798 ITALPINAS 2.94 2.95 2.94 3 2.88 2.94 1,724,000 5,063,980 -358,210 KEPWEALTH 5.77 6 6 6.1 5.7 5.77 63,700 369,215 MAKATI FINANCE 2.83 3.44 2.83 2.83 2.83 2.83 1,000 2,830 MERRYMART 6.6 6.61 6.55 6.75 6.48 6.6 25,781,200 170,176,352 1,435,445 EXHANGE TRADE FUNDS FIRST METRO ETF 100.2 102.7 105 105 100.2 100.2 59,070 6,043,064 548,093

www.businessmirror.com.ph

SMC unveils selling program for Taliptip folk in Bulacan

By VG Cabuag

@villygc

onglomerate San Miguel Corp. (SMC) said it has launched its community resellers program for the former residents of Barangay Taliptip in Bulakan, the future site of the company’s airport project. The company is organizing former residents into groups or cooperatives to start their own community reselling business, carrying Magno-

lia Chicken and Purefoods-branded frozen products. The company said it has provided technical skills to some of the resi-

dents and also additional community-based business skills training, which will allow them to enhance their income from the fishing trade. The programs are the assistance provided by San Miguel to former residents of Taliptip, whom they need to relocate somewhere else to give way to the airport project. “We are fully committed to helping our Taliptip families become more capable of building a better future for themselves, by providing them all the support and training they need to get good jobs—preferably at our projects--or to pursue various businesses opportunities,” SMC President and CEO Ramon S. Ang said. “This reselling program makes former settlers of the airport site our

valued business partners. We will make sure our people will be there to watch over them, monitor their progress, and help them make their business succeed. As with our TESDA training programs, this is open to all former residents. They just have to organize themselves, and we will extend the same support.” The first community store was opened by former residents from Taliptip’s Sitio Kinse, who moved to Barangay Bambang, also in Bulakan town. They opened the pilot store for the program last January 24. The company provided the initial inventory of Magnolia chicken and Purefoods products for free, as well as freezers for the said community store.

INAEC achieves IS-BAO Stage 2 certification

NAEC Aviation Corporation (INAEC) successfully achieved its Stage 2 Certification for the International Standard for Business Aircraft Operations (IS-BAO) in January following a rigorous audit of its aviation operations by OmniSafe International, an Australian company that specializes in safety risk management, auditing and other services for the international aviation community. INAEC remains the sole Philippine commercial aviation operator to have garnered this distinction.

IS-BAO is a code of best aviation practices developed by the International Business Aviation Council (IBAC) aimed at establishing systems and procedures to ensure professionalism, safety, and excellence among business aircraft operators. In January 2019, INAEC earned the IS-BAO Stage 1 Certification after demonstrating that its Safety Management System (SMS) has been documented, approved, resourced, and implemented at the time of audit.

STOCK-MARKET OUTLOOK Last week

Share prices plunged last week, with the main index returning to the 6,600-point level, as investors decided to sell on growing fears over the Covid-19 infection rate and apprehension over the rollout of vaccines in the country. The benchmark Philippine Stock Exchange index (PSEi) fell 433.21 points to close at 6,612.62 points. The main index was down almost all-week long, with Friday incurring the worst decline at 239.22 points or 3.5 percent. Many also used government data that showed the country’s economy shrank by 9.5 percent last year as their main basis to trade. “It is expected that the economic figures for the year will be ugly,” April LynnTan, COL Financial chief equity strategist said. Volume of trade for the week surged at an average of P10.06 billion, with foreign investors as net sellers at P6.63 billion. Trade from foreigners shrank to about 29 percent for the week, down from an average of 50 percent last year. All other subindices closed in the red, led by the All Shares index which shed 234.36 points to close at 4,007.33 points, the Financials index fell 70.77 to 1,378.35, the Industrial index declined 548.10 to 8,627, the Holding Firms index retreated 482.76 to 6,742.39, the Property index lost 195.24 to 3,372.87, the Services index was down 85.86 to 1,450.27 and the Mining and Oil index plunged 1,134.13 to 8,187.82. For the week, losers edged gainers 204 to 41 and 10 shares were unchanged. Top gainers for the week were Integrated Micro-Electronics Inc., Lodestar Investment Holdings Corp., Jolliville Holdings Corp., Pryce Corp., SFA Semicon Philippines Corp. and Seafront Resources Corp. Top losers were Apollo Global Capital Inc., Boulevard Holdings Inc., MRC Allied Inc., Premiere Horizon Alliance Corp., Abra Mining and Industrial Corp., Abra Mining and Industrial Corp. and Oriental Petroleum and Minerals Corp. A and B shares.

This week

Share prices are expected to continue its downward trend this week, still on Covid-19 concerns, as the general community quarantine was extended in some parts of the country, including Metro Manila. “Though relatively less stringent, the social restriction measure is still seen to hinder the economy from getting close to full capacity. The new Covid-19 variant, first discovered in the United Kingdom, also poses risk to our economic recovery. Thus, investors are expected to monitor the developments on its entry in the Philippines,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said. He said a detection of more cases with the said strain may add to the downward pressure on the stock market as this does not help lift investors’ sentiment. Investors will monitor manufacturing data and also the country’s inflation rate for January which the government will release later in the week. Tantiangco said the PSEi may test the 6,600-point support level; if this holds, the market’s trading range is seen from 6,600 to 6,900. If the 6,600 level fails to hold, however, the market’s next support is seen at 6,100.

Stock picks

Broker Regina Capital Development Corp. advised to trade the range on the stock of Ayala Land Inc. (ALI) after it formed a narrow range between P38.70 to P40 when it plunged below its 50-day moving average of P40.10 middle of last week. “The indicators are uniformly showing strong bearish signals. Hence, it’s likely that ALI will test its support in the next few days. Should the P38.70 level break down, the next support can be found at P37.55,” it said. Ayala Land shares closed Friday at P37.70 Meanwhile, it gave a buy advice when its support price of P36.10 holds for the stock of SM Prime Holdings Inc. (SMPH) as there are still some selling signals from its technical indicators. “It stemmed from the sustained downtrend that occurred earlier this month. It also dragged SMPH below its 50-day moving average of P38.46,” it said. Given the strong bearishness from the indicators, the broker said to expect downward movement from the stock in the next trading sessions. Its strong support level is seen P36.10. SM Prime shares closed last week at P35.30 apiece. VG Cabuag

mutual funds

January 29, 2021

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 218.27 -9.88% -10.7% -1.35% -3.94% ATRAM Alpha Opportunity Fund, Inc. -a 1.2491 -4.42% -9.31% 4.06% -4.87% ATRAM Philippine Equity Opportunity Fund, Inc. -a 3.0135 -11.25% -14.46% -2.49% -3.81% Climbs Share Capital Equity Investment Fund Corp. -a 0.7687 -9.47% -9.11% n.a. -4.38% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.7036 -13.27% n.a. n.a. -5.12% First Metro Save and Learn Equity Fund,Inc. -a 4.7538 -6.83% -8.75% -0.46% -3.79% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.7218 -11.27% -11.15% -5.87% -5% MBG Equity Investment Fund, Inc. -a 96.38 -4.56% -6.8% n.a. -5.45% PAMI Equity Index Fund, Inc. -a 44.9172 -8.24% -8.85% 0.3% -4.12% Philam Strategic Growth Fund, Inc. -a 469.75 -7.91% -8.69% -0.46% -3.93% Philequity Alpha One Fund, Inc. -a,d, 1.0492 5.15% n.a. n.a. -4.38% Philequity Dividend Yield Fund, Inc. -a 1.1272 -8.7% -8.21% 0.31% -3.51% Philequity Fund, Inc. -a 33.3893 -7.92% -8.09% 0.98% -3.97% Philequity MSCI Philippine Index Fund, Inc. -a 0.8751 -10.17% n.a. n.a. -4.15% Philequity PSE Index Fund Inc. -a 4.5944 -7.88% -8.43% 1.06% -4.11% Philippine Stock Index Fund Corp. -a 768.88 -7.65% -8.32% 1.02% -4.09% Soldivo Strategic Growth Fund, Inc. -a 0.6931 -12.31% -11.96% -3.04% -3.59% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.4891 -12.66% -10.25% -0.5% -3.72% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.8799 -7.93% -8.61% 0.83% -4.12% United Fund, Inc. -a 3.2052 -8.21% -7.23% 1.62% -3.43% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 103.1827 -7.62% -8.09% 1.75% -4.06% Primarily invested in foreign currency securities ATRAM AsiaPlus Equity Fund, Inc. -b $1.2889 30.18% 2.63% 10.59% 7.15% Sun Life Prosperity World Voyager Fund, Inc. -a $1.6969 22.07% 8.11% n.a. 1.44% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.6405 7.81% -5.3% -0.33% -1.68% ATRAM Philippine Balanced Fund, Inc. -a 2.2283 6.01% -4.12% 1.6% -2.5% First Metro Save and Learn Balanced Fund Inc. -a 2.5622 -0.04% -3.31% 0.32% -2.47% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1934 -13.23% n.a. n.a. -2.62% NCM Mutual Fund of the Phils., Inc. -a 1.9389 0.38% -1.82% 2.13% -1.28% PAMI Horizon Fund, Inc. -a 3.7055 0.43% -2.85% 1.34% -2.18% Philam Fund, Inc. -a 16.5693 0.29% -2.87% 1.26% -2.17% Solidaritas Fund, Inc. -a 2.0473 -1.02% -3.95% 1.02% -2.23% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.4924 -6.58% -5.59% 0.13% -2.26% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 1.0038 1.58% n.a. n.a. -1.84% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.9182 -4.27% n.a. n.a. -3.27% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.8998 -5.75% n.a. n.a. -3.57% Sun Life Prosperity Dynamic Fund, Inc. -a 0.863 -7.95% -6.5% -0.65% -2.78% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.03906 1.01% 2.71% 1.98% -0.15% PAMI Asia Balanced Fund, Inc. -b $1.2123 17.13% 3.06% 8.07% 5.4% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $4.5683 15.96% 6.17% 9.19% 1.23% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.2066 8.22% 3.25% n.a. 0.37% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 371.41 3.69% 3.24% 2.79% 0.09% ATRAM Corporate Bond Fund, Inc. -a 1.903 -0.12% 0.27% 0.13% 0.14% Cocolife Fixed Income Fund, Inc. -a 3.2178 3.02% 4.39% 4.76% 0.1% Ekklesia Mutual Fund Inc. -a 2.2976 3.23% 2.87% 2.35% 0.07% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4504 4.06% 3.38% 2.15% -0.11% Philam Bond Fund, Inc. -a 4.6461 6.6% 4.79% 2.99% 0.25% Philam Managed Income Fund, Inc. -a,6 1.3221 5.73% 4.45% 2.72% 0.07% Philequity Peso Bond Fund, Inc. -a 3.9854 5.71% 4.45% 2.88% -0.39% Soldivo Bond Fund, Inc. -a 1.0381 7.74% 4.13% 2.48% -0.37% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.2021 4.53% 4.66% 3.49% -0.12% Sun Life Prosperity GS Fund, Inc. -a 1.749 3.69% 3.9% 2.9% -0.34% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $484.9 3.13% 2.85% 2.85% 0.21% ALFM Euro Bond Fund, Inc. -a Є219.31 -0.4% 0.86% 1.26% 0.06% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2855 6.2% 4.43% 3.14% 0.4% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0264 1.93% 1.83% 1.59% -0.75% PAMI Global Bond Fund, Inc -b $1.0926 -1.2% 0.86% 0.63% -0.01% Philam Dollar Bond Fund, Inc. -a $2.5343 4.2% 4.22% 3.42% -0.05% Philequity Dollar Income Fund Inc. -a $0.0624523 2.99% 3.09% 2.37% 0.22% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.2215 -0.43% 2.38% 2.26% -0.07% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 129.97 3.05% 3.35% 2.58% 0.12% First Metro Save and Learn Money Market Fund, Inc. -a 1.0487 1.9% n.a. n.a. 0.06% Sun Life Prosperity Money Market Fund, Inc. -a 1.2981 2.41% 2.96% 2.61% 0.12% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0533 1.41% 1.77% n.a. 0.09% Feeder Funds Primarily invested in Peso securities Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a,d,7 1.1481 n.a. n.a. n.a. 1.64% Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.98 -1.01% n.a. n.a. 0% 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."

www.businessmirror.com.ph

Perspective BusinessMirror

Monday, February 1, 2021 B3

PUMPED AND PRIMED FOR 2021 Cleanfuel CEO Bong Suntay says taking care of customers helped the company achieve growth amid the pandemic

By Maan D’Asis Pamaran

HE streets were emptied when the community quarantines started and were declared to cover large parts of the metropolis and its outlying areas in 2020. As a result, Cleanfuel’s sales at its filling stations were affected as customers had to stay home. Cleanfuel President Atty. Bong Suntay even reveals that they had a problem with their inventory. “Of course, you order your stocks ahead of time and when we ordered our fuel, the global prices were much higher. With the lockdowns, we did not want to sell our fuel at high prices because we also wanted to take care of our customers, particularly the ones who are in public transport like our jeepney and taxi drivers.” Despite these challenges, Cleanfuel made sure to support the country’s health care workers by providing free fuel for the Department of Transportation’s free shuttles for frontliners.

Accelerating growth

CLEANFUEL President Atty. Bong Suntay

NOW that the economy is starting to bounce back—due largely to private sector and the two Bayanihan Acts—both of which Suntay is involved with as a member of the House of Representatives as Congressman of the 4th District of Quezon City—his independent oil company continues to accelerate its growth. Cleanfuel was born of Suntay’s search for a cheaper alternative to gasoline for his fleet of Basic taxis. “In my trips to Italy, Korea, and Thailand back in 2004, I noticed that they were using Liquefied Petroleum Gas (LPG) as alternative fuel. It was not being used in the Philippines at the time, so I decided to buy 5 conversion kits to try it out on 5 units of our taxis and sourced the LPG from our local fuel companies. Seeing that it cost 40 percent cheaper than regular gasoline, I converted more of our units to use LPG fuel,” he says. As the President of the Philippine National Taxi Operators at the time, Suntay knew all too well the need to balance the price of fuel with the capacity of the riding public to absorb any fare increase and he saw that conversion to LPG was the solution. Other operators wanted to convert too, but the challenge was that the fuel companies would only service those with 20 or more units, while the bulk of taxi operators was composed of single unit operators. This led to Suntay’s idea of opening Cleanfuel in 2007, to answer the need for auto LPG refilling stations. The first Cleanfuel station was located at E. Rodriguez Avenue in Quezon City, soon followed by the opening of the Congressional Avenue station in the same city three months later. The company has since expanded its operations, with 86 stations in Luzon reaching as far north as La Union, Baguio, Pangasinan and Ilocos Sur and down south to Bulacan, Batangas, Zambales, and Quezon Province. Suntay reveals that for 2021, there are 14 additional stations that are already in different stages of construction out of their target of 18 new openings. One of the factors for its growth, especially outside of Metro Manila was that they have expanded their products to include gas and diesel, still at lower prices but with quality that is at par with those of the bigger fuel companies. “Taxi services are only present in the big cities, and we wanted to expand to other areas so we needed to attract private motorists. It also happened to be around the time that

app-based TNVS (Transport Network Vehicle Services) such as Uber and Grab started to become popular in the Philippines. Many of these drivers were former taxi drivers,” he shares. “When we started selling our complete product line, they remained our customers. This brand loyalty helped Cleanfuel grow at the rate where we have been expanding to where we are today. Then, as we grew, we made sure that our fuel stations can offer top notch service that our drivers look for.”

Geared for customer satisfaction CUSTOMER loyalty and trust was built on an acute understanding of what their market needs, Suntay adds. “We have a very popular loyalty card program, where they can earn points when they gas up and they can exchange these points for household items such as rice cookers and double burner gas stoves, all the way to big ticket items including tablets and flat screen TVs. This way, not only are our drivers happy, happy din si misis,” Suntay quips. Cleanfuel also puts a premium on customer service, such as providing airconditioned drivers’ lounges and clean restrooms for their pit stops. This is also why their filling stations are constantly sought out by private motorists, especially by those on out-of-town trips. They have recently collaborated with Puregold grocery stores, where their customers, mainly those who have small retail businesses can avail of discounts at Cleanfuel. “We basically have the same customer profile, and we both want to be able to help them with their livelihoods,” Suntay explains. “We are both happy with the result of the collaboration, and we are looking for ways to expand our partnership with them.”

Driven to succeed

AMONG Cleanfuel’s future plans is to reinforce the company mission of selling quality fuel for less by sourcing products that they can sell at lower prices for their customers. “We are also looking to further improve our quality of service and build bigger stations. In fact, other independent fuel companies are surprised that while they are downsizing their stations, we are building bigger stations. This is because we want to be at par with the bigger players and to accomplish that, we also have to be at par or even better in terms of our facilities.” While Cleanfuel has more than made its presence felt in the increasingly competitive fuel industry, Suntay still believes that it’s good business sense to continue to look up to the Big Three leaders (Shell, Petron, Caltex) and observe and analyze what works and what doesn’t work for them. “In terms of the products we sell, we have the same quality content. The only difference that they have is the number of stations. They were way ahead of us, of course, but as things continue to look up for us, we know we will eventually get there as well,” Suntay concluded.

HarvardManagementUpdate BusinessMirror BusinessMirror

www.businessmirror.com.ph Monday, February 1, 2021 b4

Monday, July 13, 2020 B www.businessmirror.com.ph

7 strategies to build a more resilient team By Keith Ferrazzi, Mary-Clare Race & Alex Vincent

nnouncing financial results for the fiscal fourth quarter of 2020, Tim Cook, the CEO of Apple, identified resilient, highfunctioning teams as a key element that fortified the company as it confronted the challenges posed by the pandemic.

n Candor: Is your team able to have open, honest dialogue and feedback with each other? Resilient teams are able to speak truth to each other in order to collectively identify and solve the challenges they face. n Resourcefulness: When faced with challenges or problems, can your team pull together to build creative and effective solutions? Resilient teams rebound from setbacks and welcome new challenges. They devote their energy

to solutions and remain focused on outcomes regardless of external conditions.

n Compassion and empathy:

Do your team members truly care for each other and share both success and failure? Resilient teams consist of individuals who deeply and genuinely care about each other. Resilience is often expressed in terms of deep commitment to the success of the team rather than the pursuit of individual recognition.

n Humility: Can your team members ask for and accept help from others? Resilient team members are willing to admit when a problem has become intractable and know how to ask for help. They do not hide their struggles but lean into the group's responsibility for facing challenges and finding solutions. If these are some of the core qualities and values of a resilient team, that still leaves open the question about what to do if your team is suffering from a resilience deficit. Resilience requires a level of self-awareness and empathy that may not come naturally to all team members. Leaders must assess the state of their teams, identify weak spots and then deliver strategies that will help team members break down barriers and build foundations of trust, transparency and self-awareness. Our GoForwardToWork.com initiative, for which we spoke to hundreds of executives, identified a set of interventions leaders can use to build resilient teams. While there are many practices

WWW.PEXELS.COM

“Even t hough we’re apar t, it’s been obvious this year that around the company, teams and colleagues have been leaning on and counting on each other more than in normal times,” Cook said. “I think that instinct, that resilience has been an essential part of how we have navigated this year.” The pressure for teams to be resilient is more urgent than ever as we enter a new year, with new quarterly targets and milestones. Unfortunately, for every Apple there are just as many—if not more—examples of organizations that discovered, after the pandemic began, that their teams did not have the necessary skills to handle the turmoil. That has left many business leaders wondering what they can do now to build resilience. To start, leaders need to ask some tough questions to determine whether their teams have what it takes to qualify as truly resilient. Through our research and experience coaching leading executive teams, we have identified four critical characteristics of resilient teams: candor, resourcefulness, compassion and humility.

that may foster your team’s resilience, here are some that we recommend:

Candor breaks

Psychological safety—the belief that any team member can speak out without consequences—is crucial to creating resilient teams. When it feels like there’s an elephant in the room, leaders of high-performing teams create what we call “candor breaks” to encourage team members to share their thoughts and feelings. Any team member can call such a break and, if necessary, teams can break into smaller groups to further encourage frank and honest discussion.

Independent observers

To help team members embrace frank assessments of their work, leaders can invite outside experts to offer an objective perspective on issues and team dynamics.

Story sharing

To foster participation, trust and engagement, leaders of resilient teams often encourage team members to map out their lives' journey, including highs and lows, and share highlights with the rest of the team. In being vulnerable, the team creates an environment where compassion and humility are welcomed.

Owning challenges

Resilient teams are made up of people who are not afraid to express their fears and concerns with each other. To build trust and honesty, leaders must facilitate such exchanges and encourage team members to admit fears or relationship challenges and canvass the team for solutions. For example, a facilitator can ask team members to express their feelings about the state of the team, and what problems exist. The facilitator should encourage

team members to “own” their part in any existing problems and not resort to blaming other teammates.

Show that you care

Leaders have to regularly demonstrate that they are genuinely interested in the progress the team is making, asking probing questions to understand underlying issues. But asking is only half the equation: Resilient leaders must also listen carefully to the answers they get from team members.

Temperature checks

At the beginning of every meeting, ask everyone to state their energy levels on a scale of 1 (low) to 5 (high). This simple and fast exercise that will quickly determine whether there is someone who needs attention or is outside his normal range of fatigue and frustration.

Commit to building each other’s resilience

It’s essential to establish clear and unambiguous expectations around team unity and peer-topeer support. Any hesitation or reluctance to help a struggling colleague is a sign that deeper interventions may be needed. Ultimately, team resilience is similar to a battery. It needs to be restored and recharged regularly. Teams that put in place measures to do that will find that they are better equipped and—more importantly—willing to undertake any challenge throughout the pandemic and beyond. Keith Ferrazzi is founder and chairman of Ferrazzi Greenlight. Mary-Clare Race is chief innovation and product officer at LHH, where Alex Vincent is senior vice president for global leadership solutions.

Your star employee just quit. Will others follow? By Art Markman

hen I was a graduate student at the University of Illinois in Urbana-Champaign in the late ’80s, several of the program’s most esteemed faculty members left at the same time to work at other schools. This sudden exodus disrupted the tight-knit, collaborative community of scholars that had kept people in the department for so long. When a few faculty members departed, others began to think they’d be the only ones left. Suddenly everyone was looking for other opportunities. This same dynamic can take hold in an organization when key players leave. Movement of talented employees across firms is inevitable, but if you’re in a leadership role, there are things you can do when a star employee leaves to prevent the departure from becoming a stampede to the exits.

Ask questions, then listen

Perhaps the most important

thing you can do when someone leaves is to listen—carefully. Start by conducting an exit interview with the person departing to find out what factors led to the decision. Probe a little to understand any concerns—even if someone is leaving to take on a great opportunity at another firm, there may still be some dissatisfaction lurking in the wings that’s leading other people on the team to cast a wandering eye at other jobs. Then, take the pulse of the rest of your team. Meet with team members individually and talk to them about how they’re doing. Ask how they think the departure of their colleague will affect morale. If you picked up on certain sources of discontent during the exit interview, weave the subject into the discussions to find out whether the concerns are widespread. Just the act of talking with people can reassure them that you care about how well the team is functioning. Many organizations run reg-

ular engagement and trust surveys. If yours is one of them, consider doing a brief survey of the whole group to find out how its members are feeling about the organization and leadership. These surveys can help you get a sense of your employees’ reactions to positive or negative milestones within the organization or even external issues that have gained societal prominence. If these conversations and surveys do uncover significant concerns among team members, it’s important to act fast. Start by explicitly acknowledging the concerns so that employees recognize that you’re aware of the problem. Then, be transparent in your attempts to address the issues people have raised. Gathering information from employees will only increase long-term trust if they sense that you’re actually working to use that information constructively.

Focus on the future

Happiness in the workplace is driven by several factors. Having

great colleagues is one of them, so the loss of a valued teammate can be disruptive. The notion that a team is accomplishing important things also informs employee satisfaction. People are often happiest when they see their work as a calling that adds up to something bigger than themselves. The departure of a stellar employee may influence the sense of community among other team members for a couple of reasons. First, people are more motivated to meet goals when they perceive them as important— and when they believe they can actually make progress toward them. When someone leaves, everyone else may feel like the team's ability to achieve significant goals will be hampered. If that’s the case, you need to reassure people that their goals are still achievable and commit to replacing those who have left if that’s crucial for success. Second, a departure can lead to cognitive dissonance. When you hold contradictory beliefs

in mind simultaneously, mental mechanisms work to make those beliefs more consistent with each other. A key employee’s decision to leave may be seen as a vote of no confidence in the organization’s core mission, which can lead other employees to question—and, ultimately, devalue— that mission and consider other opportunities. In team meetings and conversations, stay focused on future opportunities and the importance of the group’s goals. This reinforces the sense that the team’s work has broad importance and emphasizes the role of the existing team, rather than creating reminders of who’s missing.

Provide development opportunities

Another driver of workplace satisfaction is the belief that your job allows you to grow. Employees are generally happier when they feel like they receive training that enables them to do their jobs better, and one reason

why there’s so much turnover in the modern workplace is that employees often feel that organizations don’t have their long-term interests at heart. Training and education programs are a great way to enhance trust because they demonstrate a clear desire to focus on employees’ long-term effectiveness and well-being. Management should redouble efforts to provide these opportunities to employees. In addition to the specific benefits a particular training may provide, investment in people’s future increases their loyalty to the organization. The departure of a star employee can cause that person's team members to question their own satisfaction—and future— at the company. Managers who respond by being attentive and looking forward can help keep the rest of the team from jumping ship. Art Markman is the Annabel Irion Worsham centennial professor of psychology and marketing at the University of Texas at Austin.

Style

BusinessMirror

www.businessmirror.com.ph

U.K. retailing shifts further online as Boohoo buys Debenhams

Editor: Gerard S. Ramos

• Monday, February 1, 2021

Mitzie Go Gil: Her heartfelt mission

By Pan Pylas | The Associated Press LONDON—Around 25,000 UK retailing jobs remain under threat even as it emerged on Monday that online fashion firm Boohoo has bought Debenhams, one of the country’s oldest department store chains, and rival ASOS confirmed it wants to pick up parts of Arcadia Group. The developments illustrate the huge changes taking place in Britain’s retailing scene during the coronavirus pandemic. With shops selling nonessential items closed once again, many retail outlets, big and small, face the prospect of closing for good. Boohoo’s acquisition of the Debenhams brand and website for £55 million ($75 million) will see it turn a traditional retailing outlet into an online-only operation. The Debenhams name will survive, but the 118 stores will close for good as Boohoo sees little value in them when so much shopping now takes place online, a shift that has been accelerated by the coronavirus restrictions. Debenhams, which traces its history back to 1778, employs around 12,000 workers so the closure of the stores is likely to see most of those jobs lost. After years of struggle, Debenhams announced in December that it faced the prospect of going bust if it couldn’t find a buyer. Under the terms of the deal, Boohoo will sell Debenhams products from early next year. Boohoo said the deal represents a “fantastic opportunity” to target new customers and launch into beauty, sports and homewares. “The acquisition of the Debenhams brand is an important development for the group, as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail,” Boohoo’s CEO, John Lyttle, said. Investors welcomed the move, with Boohoo’s share price up 4.4 percent in morning trading. However, Shore Capital retail analyst Greg Lawless cautioned that an online-only operation could hit Debenhams’ beauty sales. “The big question in beauty is whether the big beauty brands—Clinique and Chanel—will remain with Boohoo longer term,” he said. “The Debenhams number one position in premium beauty was predicated on counter sales, which will not form part of this acquisition.” Boohoo has previously acquired several struggling UK brands, including Oasis and Coast, turning them into online-only operations. Geoff Rowley, joint administrator for Debenhams and partner of FRP Advisory, said the purchase of Debenhams “may provide some job opportunities” while accepting that the deal “does not safeguard the jobs of Debenhams’ employees beyond the windingdown period.” Separately, another online retailer, ASOS, confirmed it is in exclusive talks to buy some of Arcadia’s brands—Topshop, Top Man, Miss Selfridge and the fitness range HIIT. It warned there was no certainty of a deal. Any deal is unlikely to include saving the Arcadia stores, which could also close for good.

N just two years, Mitzie Go Gil and her MMG Queen of Hearts Foundation Inc. has assisted countless underprivileged Filipinos. As CEO and president of the nonprofit organization, she implements programs and services that help our less fortunate kababayans become more “productive, responsible and accountable individuals in their communities and in the nation as a whole.” The foundation gives special focus to children and women. It conducts monthly feeding programs, and medical and dental missions to far-flung areas, especially after natural calamities. It has built a shelter for abandoned, abused and homeless children. A core advocacy is women empowerment through the staging of beauty pageants with a strong charitable component. In January, the Queen of Hearts Queens and candidates went to Barangay Calawis, Antipolo City, crossing a river and climbing a mountain to reach the village of the Dumagat indigenous people, for the group’s first charity mission of the year. This Love Month of February, the King and Queen of Hearts will celebrate Valentine and Chinese New Year with outreach missions. Also in the offing is the launch of the Queen of Hearts skin-care line. Mitzie, who grew up in Isulan, Sultan Kudarat, was an established businessman in Davao City before she was thrust into the world of pageantry. A BS Accountancy graduate at the University of Mindanao, she owned a beauty salon, a spa and the Eagles Fly Travel & Tours before she got married to Ret. Gen.Virtus Gil and blessed with a daughter, Precious Marie. “During the National Independent Travel Agency Operators Christmas party in December 2017, I was handpicked by Annie Refrea, the national director of the Mrs. Asia Pacific beauty pageant, to represent the Philippines in the March 2018 international finals in Singapore,” Mitzie recalls. Mitzie emerged as Mrs. Asia Pacific Tourism and also won five subsidiary awards. After the pageant, she was in for more surprises. Justina Quek, the international director, offered Mitzie to be the national director of the Mrs. Asia Pacific pageants in the Philippines replacing Mrs. Refrea, who agreed to the arrangement. She accepted the offer and was given 10 titles to handle, seven for married women and three for single ladies. Among the tiles that Mitzie oversees are Mrs. Asia Pacific Philippines, Mrs. Global Universe Philippines, Mrs. Worldwide Philippines, Miss Lumiere International World Philippines, Miss Global

Universe Philippines, Miss Tourism Worldwide Philippines, Mrs. & Miss Queen of Hearts Philippines, and Lumiere International Pageantry. The 2020 reigning title holders are Annette Mendoza-Mrs. Worldwide Philippines 2020 (Pampanga), Louise Suzanne Alba Lopez-Mrs. Asia Pacific Global 2020 (Quezon City), Darling Topacio Edralin-Mrs. Asia Pacific All Nations 2020 (Misamis Oriental), Joana Krisanta La Madrid-Mrs. Asia Pacific Tourism 2020 (Ilagan City), Ma. Glovel Tasico-Mrs. Asia Pacific Intercontinental Philippines ( Batangas), Sarima Piglas-Mrs. Asia Pacific Cosmopolitan Philippines 2020 (Maguindanao), Catherine Jordan Flores-Mrs. Queen of Hearts 2020 (Ilocos Norte), and Ivy Dianna Manzon Bo-Mrs. Queen of Hearts Tourism 2020 (Cavite). “Even before I joined pageants, I had two advocacies in life: women empowerment and the welfare of underprivileged families, especially the children. I thought that being involved in pageantry would help me realize my advocacies so I accepted the

position of national director,” Mitzie, 41, shared. Beauty pageants, which thrive on the energy of a live audience, also suffered during the pandemic. But Mitzie remains optimistic and always looks at the more beautiful side of things. “Aside from realizing my pro-poor personal commitments, there is a sense of fulfillment in helping women find their personality, their own strengths and weaknesses, to gain confidence, to raise their self-esteem and to prove to people that it is not impossible to have beauty and brains,” Mitzie said. “That feeling of fulfillment is on top of other benefits like confidence, friendship, networking and opportunities that I have gained in heading or participating in a beauty pageant.” n Photographed by Jun Muga Clothes by John Guarnes and Apartment Clothing Makeup by Marielle Panganiban Hairstyle by Meg Zaragosa Crown and accessories by Queen of Hearts Foundation Philippines

The natural beauty and health product you need

OTHERS look at the clothes, bags, shoes and jewelry people are wearing when they first meet them. I look at people’s skin, which, in my opinion, tell their own stories. You’d know if a person loves the beach, works mostly indoors, is fastidious about skin care, is low maintenance, is ill or has a chronic condition and so on—all this just by looking at the state of their skin. A person’s skin tells a story. Every wrinkle, every line is part of that person’s experience. As someone who interviews people a lot, I am amazed at those who talk about good health and skin care and have really good skin. I have not interviewed anyone in person in a while but I was recently at a Zoom press conference where one of the resource speakers for Growrich Virgin Coconut Oil Capsules, Dr. Jayvee Lalusis, had great skin. Lalusis talked about how she would open a Growrich VCO capsule and use the oil to massage her face and then wash this off with a cleanser. Virgin coconut oil is rich in saturated fat and medium-chain fatty acids, especially lauric acid. Studies have shown that applying coconut oil

directly to the skin may prevent the growth of microorganisms that can cause skin infections, such as acne and folliculitis. A good quality VCO also makes the perfect body moisturizer. It keeps the skin soft and supple for 24 hours. Another tip from Jayvee is to use the oil on the scalp three times a week to help prevent dandruff and itching. Jayvee is the CEO of Growrich Manufacturing Inc. and Great Well Pharma Inc. She earned a Bachelor of Science in Pharmacy from the University of the Philippines Manila and her Doctor of Medicine degree from the Far Eastern University—Dr. Nicanor Reyes Medical Foundation. She also has a certificate in Advanced Cosmetic Science from the Institute of Personal Care Science at Queensland, Australia. Growrich Virgin Coconut Oil Capsules, the first VCO in capsule form to be approved by the Food and Drugs Administration, has many benefits aside from aesthetic ones. For many though, there are issues in drinking VCO in its original form. These issues include the taste and/ or texture. Another issue is that exposure to air can also result in the oil having a rancid flavor. A solution is placing the oil in the refrigerator but this can cause the oil to harden. With a recommended dosage of one to two capsules per day, Growrich Virgin Coconut Oil Capsules is a convenient way of taking VCO. The capsules can also be pricked and used on the skin, scalp and hair. Growrich VCO capsules has benefits that include lowering LDL cholesterol, reducing the risk of one contracting cancer, strengthening the immune

system, promoting weight loss and helping improve hair and skin. Recent studies have shown that VCO is also effective in helping relieve the symptoms of indigestion, asthma, diarrhea, diabetes, sepsis (blood poisoning) in infants, and, recently, even Covid-19. In addition, VCO has been found to have antifungal, antibacterial and antiviral properties. Jayvee’s father, Dr. Ed Lalusis, president and CEO of Growrich Manufacturing, said VCO Coconut Oil Capsules uses virgin coconut oil that’s been obtained from fresh coconuts without heat and chemical processes. “Growrich Virgin Coconut Oil Capsules is different in potency and concentration from the liquid form of other brands. The dosage is more controlled and the quality is maintained. The aftertaste that comes when taking liquid VCO is also eliminated,” said Ed. Ed trained in General Surgery at Mary Johnston Hospital and was a former general surgeon at King Fahad Hospital and Prince Saud Hospital in the Kingdom of Saudi Arabia. He is known for his study on processed crude coconut oil as a 100 percent fuel substitute to diesel engine and pressurized gas lamp. He was then awarded as an outstanding citizen of Catanuan, Quezon, in the Field of Science and Technology. Growrich, a toll manufacturing company for the food and pharmaceutical industry, manufactures in accordance with the current Good Manufacturing Practices standards under the supervision of the Food and Drug Administration to ensure product quality and safety. Every Growrich Virgin Coconut Oil Capsule

contains saturated and unsaturated fatty acids and essential fatty acids that are heart-friendly and have antioxidant properties. Virgin coconut oil is extracted from a single press of fresh coconut meat that’s been grated and dried for two hours at a temperature lower than 40 degrees Celsius. It is more premium than other coconut oils because there is no second press, thus the yield per kilogram is lower than those produced from other processes.

B6 Monday, February 1, 2021

Sun Life Asset Management marks P127-B AUM

Mariwasa to mark 55 years as top home building solutions provider

UN Life Asset Management Company, Inc. (SLAMCI) started the year strong with its assets under management (AUM) with its suite of mutual funds called Sun Life Prosperity Funds now at P127 Billion. Uncertainties in the market did not hinder SLAMCI’s performance in the past year, with a 60% year-on- year AUM growth, as clients remained invested despite the declines and volatility caused by the COVID-19 pandemic. Among the top performers in SLAMCI’s peso-denominated funds are the Sun Life Prosperity World Equity Index Fund, with a return of 11.33% since its launch last July 2020; the Sun Life Prosperity Bond Fund, which saw a full year return of 4.24%; and the Sun Life Prosperity Money Market Fund, with a full year return of 2.49%. The SLAMCI dollar-denominated funds likewise fared exceedingly well, with the Sun Life Prosperity Voyager Fund marking 21.03% full year return; Sun Life Prosperity Dollar Advantage with 15%; and the Sun Life Dollar Wellspring Fund at 8.28% full year returns. With this achievement, SLAMCI remains the largest non-bank asset management company in the country. SLAMCI President Gerald Bautista believes that this milestone was achieved through

constant efforts to keep clients informed and reassured. “In the previous year, we devoted much of our time communicating with clients through different distribution channels and digital touchpoints, keeping them informed about the market’s performance along with opportunities investing in Sun Life Prosperity Funds, reexamining clients’ portfolio, and what would be the best steps for them to take,” he said. “It was our way of letting them know that we remain at their side in their financial journey.” These efforts were complemented by digital solutions which allowed SLAMCI to continue serving clients despite the heightened safety measures mandated by the government. In fact, SLAMCI was among the few financial services companies that remained operational despite the community quarantines during the early part of 2020. “We were able to assist clients who wanted to invest in both onshore or offshore market opportunities, as well as those who wished to liquidate their investment for emergency situations,” Bautista said.

SMHCC receives citation from the National Privacy Commission for best practice in handling contact tracing data FROM left to right: Ekaluck Praemoung (VP for Corporate HR), Piyarat Promtong (VP for Manufacturing), Jakkrit Suwansilp (VP for Sales & Marketing, President), and Emilie Maramag (VP for Finance & Admin).

ARIWASA, a pioneer in the construction industry, will be marking its 55th year in the business this June with the theme “Moving Forward” and the vision to be a complete home building solutions provider by highlighting the products launched last year and products to watch out for this year. Established in 1966 by the brothers Emerson and Edison Coseteng, the company was founded to produce products and services that would meet world standards for beauty and durability, achieved by harnessing the skills, discipline, and creativity of the Filipino artisan. “For 55 years, Mariwasa has been a living proof to the world-class Filipino craftsmanship and ingenuity. Each of our products reflects the founders’ vision of excellence, and the ability to stand proudly among the world’s finest,” said Jakkrit Suwansilp, Mariwasa President. Last year, Mariwasa did not let the COVID-19 pandemic stop the company from releasing various products that showcase the Filipino artistry in

making tiles and products that solve many home-related problems. In addition to its Ecoway Tile Collection, the company also produced bathroom cabinets that mix aesthetics and efficient plumbing. Without missing a beat, Mariwasa also came up with its own tile adhesives to help homeowners complete their purchase and be able to install tiles easily. The Mariwasa Tile Adhesive, which comes in two variants (regular and heavy-duty), compliment Mariwasa tiles best for better result of installation. The past year also saw the production of the Mariwasa Skim Coat which can help homeowners save more from the usual cost of materials and labor when having walls finished off. This product can work for surfaces both indoors and outdoors so that homeowners don’t have to burn holes in their pockets just to purchase separate materials. Aside from its available products, Mariwasa also offers installation services to help Filipino homeowners build their dream homes, with its set of professional construction workers ensuring highquality workmanship.

Mariwasa’s manufacturing arm has also adapted an auto packing machine and a new sorting line for better work efficiency at their manufacturing plant in Sto. Tomas, Batangas. The auto packing machine has a capacity of 9,000sqm/day per machine and will allow cost reduction in terms of manpower, maintenance, and energy. Simultaneously, the new sorting line will increase manpower productivity from 353sqm/head to 1,125sqm/head due to its automation process, and will allow the company to save at least PHP 29M per year. In addition to this, the company is looking forward to launching new products to add to its line-up – Mariwasa Premium Quality Vinyl Flooring, with LVT Dry Back and SPC Easy Click. The details are yet to be announced, but like all Mariwasa products, it will undergo strict quality control and craftsmanship. As it celebrates 55 years in the industry, Mariwasa aims to continue its vision of providing eye-catching and sturdy ceramics with uncompromising quality and home building solutions that meet international standards.

NGCP donates test booths, COVID-19 test kits to cities of Pasay, Mandaluyong and Quezon

S part of its continuing efforts to help the Filipino people combat the COVID-19 pandemic, the National Grid Corporation of the Philippines (NGCP) donated test booths and COVID-19 test kits to the local government of Pasay City. NGCP turned over 50 test booths and 10,000 COVID-19 antibody test kits to Pasay City, through its City Mayor Imelda Calixto-Rubiano. “Even with the development and impending availability of vaccines for COVID-19, testing remains a

cornerstone strategy to stem the spread of the disease,” said NGCP. The company reiterated its commitment to find ways to help the country, from strengthening power transmission, to doing its part as good corporate citizens in the midst of a global health crisis. Aside from Pasay City, NGCP also donated test booths and test kits to Mandaluyong City and Quezon City, and test kits to Navotas City. In March 2020, NGCP pledged PhP1 Billion to the Filipino people to aid the country in its fight against the

pandemic. This donation included the distribution of grocery packs to 1,028 LGUs around the country, medical supplies to more than 300 hospitals and city/municipal/rural health units nationwide, 9 ambulances to the government, mechanical ventilators, RT-PCR machines, SteraMist Systems, and other medical equipment to key hospitals around the country, a PhP10 Million donation to Project Ark, PhP10 Million donation to Kaya Natin, and a PhP5 Million donation to Project Ugnayan. Donning and doffing chambers and isolation rooms will also be donated by NGCP to identified government hospitals. NGCP's President and CEO Anthony L. Almeda recently appealed to lawmakers to allow private companies to import, tax free, doses of the COVID-19 vaccine for the use of its employees. According to Mr. Almeda, a vaccination program for the private sector will help get the economy up and running with more businesses and industries going back to their normal activities. NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and Vice Chairman of the Board Henry Sy, Jr. and Co-Vice Chairman Robert Coyiuto, Jr

RIVEN by a culture of quality and safety, SMHCC properties across the country use a contact tracing technology, which has recently been regarded by the National Privacy Commission as a best practice in handling contact tracing data in the country. The said contact tracing platform strengthens SMHCC’s SustainablySafe Program targeted towards intensifying health and hygiene protocols in all its properties. Through the said platform, guests experience a pleasant and hassle-free navigation without unnecessary questions and thumb movements/thumb clicks. Designed with a user-friendly interface, it works on any platform, browser, and any type of mobile phone. More importantly, as SMHCC strictly adheres to the Data Privacy Act, the usage of the platform closely takes into account its guests’ right to privacy and ensures it is respected in all forms. A brainchild of Mr. Eric S. Uy, SMHCC Vice-President for Technical Services, he stresses that “the thrust of the platform calls for an appeal to guests’ sense of civic duty. We do not force

them into anything and we do not repurpose the data for any other objective apart from strict compliance to health protocols.” With each and every institution now striving to continue to rise above the pandemic, Mr. Uy further says that “whatever we lack in terms of resources, we compensate through creativity and ingenuity. These are the building blocks and main drivers integrated into SMHCC’s ways of working.” After a successful pilot in SM properties, including SMHCC, the same technology is now being used by SM Supermalls, one of Southeast Asia’s biggest developers and operator of malls in the Philippines. With this type of versatility and universal adaptability, it does not also come as a surprise that even government entities and some healthcare institutions patterned their respective contact tracing initiatives after this SMHCC-developed software. Inspired by a continued sense of purpose and innovation, SMHCC is humbled to have been an instrument in providing a contact tracing initiative that may easily be adapted by institutions, which contribute to the government’s ongoing efforts to fight COVID-19. Currently, the SMHCC portfolio is comprised of eight (8) hotel properties with a combined inventory of 1,960 rooms and over 38,000 sqm. of leasable convention space. The list of properties under SMHCC includes Taal Vista Hotel, Pico Sands Hotel, Conrad Manila, Radisson Blu Cebu, Park Inn by Radisson Clark, Park Inn by Radisson Davao, Park Inn by Radisson Iloilo, Park Inn by Radisson North EDSA, and the SMX Convention Centers and trade halls.

East Avenue Medical Center inaugurates new molecular lab donated by Meralco, PLDT-SMART

DOH Asst. Sec. Elmer G. Punzalan (center) with (from right to left) OMF President Jeffrey O. Tarayao, PSF President Esther O. Santos, EAMC Medical Center Chief I Dr. Alfonso G. Nuñez, EEI Corporation SVP Earl Jason R. Vistro; and EAMC OIC-Chief Medical Professional Staff Dr. Allan Troy D. Baquir.

HE corporate social responsibility arms of Meralco and PLDT-Smart joined hands to set up a pop-up molecular laboratory at the East Avenue Medical Center (EAMC) in Quezon City. The containerized laboratory enables the hospital, which was designated as a COVID-19 primary care facility, to conduct its own reverse-transcription polymerase chain reaction (RT-PCR) tests to detect the presence of the novel coronavirus that causes COVID-19. One Meralco Foundation

(OMF) and PLDT-Smart Foundation (PSF) donated laboratory equipment, while construction firm EEI Corporation provided the container vans used to temporarily house the laboratory. Previously, OMF and PSF also turned over more than PhP 30 million worth of hospital equipment to the EAMC for its newly-inaugurated Center for Emerging and Re-emerging Infectious Diseases (CERID) facility. The pop-up laboratory will soon be transferred to the said facility.

Marketing BusinessMirror

www.businessmirror.com.ph

Monday, February 1, 2021 B7

What’s next for the Public Relations profession? P

By Philippe Borremans

WWW.FREEPIK.COM

PR Matters

last year will be devastating. Even more so on communicators, many of whom many have spent the last 12 months in “crisis mode”. This “fourth wave” is not a short-term spike, but will take years to overcome. As a profession, we should take the first steps with ourselves individually, making sure we can cope. And then help others. One resource I strongly recommend and which you can use from your home or office is the online resource called Everyone OK. This online self-help activity can help you feel calmer and keep on functioning day to day. It’s a scientifically sound step-by-step plan of about 45 minutes*. You can go through it by yourself, or with your loved ones.

R professionals will have to focus on managing agile and virtual teams, delivering science-driven communication, integrating complex stakeholder ecosystems in their plans and recognize the 12- month-long pandemic impact on mental health. It would be redundant to focus on the many challenges of 2020, a year completely overshadowed by Covid-19 and the global pandemic. I do not wish to minimize the impact at all. These last 12 months have been tough both professionally and on a personal level. Long months away from home fighting the virus in West and North Africa and the Philippines, lockdowns, travel under strict security measures, and the mental health impact were all part of my own 2020. But for 2021, I want to focus on what’s next. These are my thoughts on what will move our profession this year.

The way we work

LET’S face it…The Public Relations profession and industry have a tradition of conservatism. It took us over 10 years to recognize the revolutionary impact technology would have on business communication and we are just starting to play with Artificial Intelligence. But this pandemic has increased the uptake of technology and already shows how alternative ways of working are entering our business. Communication teams, both in-house and in agency, will have to become agile and integrate specialized freelancers in their operational set up. We already see global virtual teams executing public relations strategies with efficiency and speed. The advantages are clear; reduced overhead, increased speed and access to a myriad of specialists at the click of a button. We also see that virtual communication teams cost less to internal or external clients. The latter plays an important role when we look at the economic impact of the pandemic. Hybrid teams -- where one part is staff and the other part a virtual army of independent consultants -- can execute what I call “glocal” campaigns; global in strategic approach but executed in a perfectly,

Sustainability: Going back to the basics with BtB, and paving the way to Zero Waste

MANILA, PHILIPPINES—It is a project close to their hearts, their proverbial dream-come-true. And those familiar with their story would even dare to say that the whole Back to Basics Ecostore idea is aligned with the stars. After all, the initials of the BtB’s five founders—Tanya Conlu, Abi Aguilar, Kate Galido, Arnie Cancio and Lia Esquillo—spell T-A-K-A-L, the Filipino word for “scoop.” Takal has become a primary activity for the five on weekends, as they prepare the orders that they would deliver to their customers on Tuesdays. “We would do the actual scooping and pouring of the products in our homes, which we have turned into refillery hubs,” Kate said, laughing. BtB is a refillery adnd ecostore that aims to provide easy, affordable and convenient access to household and personal care products without the unnecessary packaging. It offers refill services for household essentials in any amount that its customers need. The idea of BtB actually stemmed from an old Filipino practice of

bringing empty bottles or containers to neighborhood sari-sari stores for day-to-day food essentials. However, this traditional, ecofriendly practice was forgotten when sachets and single-use plastic packaging came. “We believe that refill systems should become the Filipino normal again,” Kate stressed. The BtB founders are aware of the challenge of finding affordable and high-quality products that are aligned with their eco-friendly goals. “We are proud of our products. Our line is a well-curated set of household essentials that we would actually use ourselves,” Lia said, adding that the items they sell come from a combination of big, well-known brands and small, community-based enterprises—all of them bought from suppliers by the bulk. Lia explained that they did not only cater to their customers’ demand for earth-friendly brands and services, but also made sure that their suppliers were aligned with their practices. Before considering a particular supplier for BtB, she said they would first conduct research and evaluate the supplier’s environmental and labor practices. “We really make sure that they would take back their containers or their carboys and use these for subsequent purchases,” she explained. Lia recounted her experience with soy sauce manufacturer, Marca Piña—recalling how she had started

locally adapted, form and format. We have all witnessed how even simple global key messages (wash your hands) can backfire if not infused by social and behavioral science data. Even more so than before, we need culturally aware people on the ground, wherever we communicate. And this communication needs to adapt to the local language, habits and attitudes.

Managing complex stakeholder ecosystems

Crisis communication is by definition very “company centric”; the organization is an active participant and is often the origin of the problem. But with the pandemic, another dynamic is at play. Your company or organization has become involved in a problem of global scale, having no vested interest in what’s happening. Suddenly companies had to become responsible for the health measures protecting their employees, even when not at the office. Production and supply chain lines had to be repositioned to support the national health efforts. And all this needed to happen in an

contacting the company via the telephone trunkline and then asking them if they would consider taking back their product containers upon delivery. “We had to explain to them how we did things at BtB, and in the end, they understood and even provided us a discount for returning their containers,” Lia said. She pointed out that other big manufacturers like cooking oil giant Minola were actually supportive of their mission, generously providing them with carboys that they could use in repurchasing oil. At present, BtB offers more than 50 household products to its customers—from shampoo bars to fabric conditioners to wild-forest honey and reusable pads. “Our products are mostly Filipino brands, with the exception of the bamboo toothbrush which is currently unavailable locally,” Kate said. BtB started as a dream among its founders to revive Zero Waste practices among Filipinos. “The four of us—Lia, Kate, Tanya and myself—are environmentalists and belonged to one non-governmental organization before,” Abi said. Arni, who would eventually join the four as one of BtB’s driving forces, was Lia’s co-parent in their kids’ school. Her experience with running her own online shop would eventually prove indispensable in BtB’s daily operations. After holding initial meetings and conducting a market study in

environment of social change and even unrest. In this way, the pandemic is showing us that no stakeholder map should ever be taken for granted. Stakeholder ecosystem management is one of the most crucial Public Relations activities—however, we mostly saw it as a pretty straightforward, once in a year, exercise. Not anymore … I’ll reiterate what I have written and stated before; Communicators are the best equipped and skilled professionals around to “see what’s coming” and to understand complex relationships, able to navigate constant change. We need to take up this strategic role and combine it with our science-based measurement and evaluation frameworks. Only Public Relations professionals can coordinate the organization’s thinktank and execute effective, complex communication activities considering all stakeholders.

Our role in society, and responsibility to ourselves

More than ever, I am convinced that ethical, open and trustworthy

December 2018, the BtB founders opened shop in July 2019, which is also plastic-free month. They started with pop-up stores in bazaars, where it was easy to sell the idea of an earth-friendly, Zero Waste system to customers. “People were enthusiastic, bringing used containers with them for the refilling process,” Kate recalled. Abi said that despite the physical challenges of running a refillery (“We would carry the carboys ourselves, even up many flights of stairs!”), they were happy and received positive feedback from customers. Business was good, and the five women entrepreneurs eventually considered putting up a physical store to accommodate more customers. And then the 2020 pandemic came. “We had to stop operations for three months,” Kate said. During the enhanced community quarantine from March to May, she recounted driving and bringing products to their customers themselves. However, the pandemic also provided them with opportunities to help others, Lia said. “For a long time, we had wanted to deliver our products in wooden crates,” she said. They finally found a supplier in Pallet Reimagined, a group of Parañaquebased jeepney drivers who lost their jobs because of the pandemic. “We reached out and ordered from them. We even promoted their products and they were happy that a lot of customers suddenly began

communications can save lives, bring peace and break the walls of ignorance. I have been fortunate to witness this up close during my Covid-19 emergency risk communication engagements in Africa and Asia over the last 300 days. Although we all have seen examples of mis- and disinformation, fake news and straightforward manipulation of facts, we also witnessed prominent examples of good, timely and honest communication. Communication which allows communities to take action, help themselves, and brings hope. We all have an active role to play—as professionals and as fathers, mothers, sons and daughters. The world needs science based, transparent communication—it will be the only defense to polarization, populism and ignorance. And finally, we have a responsibility to ourselves. Even before the pandemic, our pandemic suffered from a toxic working environment. Studies showed that +30 percent of colleagues found their job very stressful, and burnouts are still a taboo topic in many organizations. The mental health impact of the

contacting them for customized woodworks,” Lia said. BtB resumed normal online operations in June 2020, and their customers were more than happy to resume purchasing earth-friendly, Zero Waste products from the five. “We are lucky that we are able to run BtB successfully even with our day jobs, because all five of us have supportive families, suppliers and customers,” Lia said.

People: Mediabrands Malaysia appoints Audrey Chong as CEO of Universal McCann & Ensemble Worldwide

KUALA LUMPUR, MALAYSIA—Mediabrands Malaysia has today announced the promotion of Audrey Chong as Chief Executive Officer of (UM) and Ensemble Worldwide. Audrey has been a part of the Mediabrands network for the past three years, having served as Chief Investment Officer responsible for all traditional and digital media investment decisions. She has over 25 years’ experience in media strategy, communications, and planning, with a background across media, creative and digital. Chief Executive Officer of Mediabrands Malaysia, Bala Pomaleh said, “Audrey has served on both ends of the equation as an agency and client leader, overseeing brand and product campaigns from a creative and media perspective. Her experience

To end… We should all be proud of our beautiful profession. All of us, professionals and freelancers, in agencies, in-house, in the public, non-profit and private sector alike, are making a difference across the globe every single day. Let’s make 2021 the year where transparent and ethical communication made a positive difference in our lives and for the world. *This online intervention is made by clinical psychologist Elke Van Hoof (BE) and is founded on the internationally recognised Recent Traumatic Episode Protocol and the Group Traumatic Episode Protocol. These protocols are used to deal with acute stress in crisis situations and to improve mental resilience. PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier association for senior professionals around the world. Philippe Borremans is the President of the International Public Relations Association and is a Crisis and Emergency Risk Communication Consultant and Member of the Board, European Association of Communication Directors, RiskComms LLC. We are devoting a special column each month to answer the reader’s questions about public relations. Please send your comments and questions to askipraphil@gmail.com.

as a client means she understands the breadth of marketing challenges faced by clients and knows how we can best complement them with our futureproof solutions. “Audrey has also worked extensively with leadership across our media, creative and diversified specialist agencies, so she has a keen understanding of the internal nuances and business opportunities available to maximise value for our clients. In short, I am positive of her ability to unite talents and drive client excellence to ensure continued momentum across UM and Ensemble.” Kasper Aakerlund, President UM APAC added, “I’m delighted to welcome a talent like Audrey into the UM network. Her investment expertise and specialised industry knowledge position her perfectly to lead the Malaysian UM & Ensemble network forward. Both building upon the network’s momentum and success; and helping to futureproof their clients’ business, to navigate and optimise an evolving landscape.” UM Malaysia has consistently been named the country’s best agency by RECMA since 2016. Ensemble Worldwide remains the only creative agency to pick up the Malaysia Effie Agency of the Year award for three consecutive years from 2016 - 2018. Both agencies have had a consistent showing at the Campaign Agency of the Year awards since 2017, picking up AOY across media, creative, digital, and mobile.

Sports

THEY’RE PLAYING DOWN UNDER

BusinessMirror

| Monday, February 1, 2021 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

PBA’s trade committee to decide on CJ

COMMISSIONER Willie Marcial is not deciding on the CJ Perez trade issue.

By Josef Ramos

HE Philippine Basketball Association’s (PBA) trade committee will decide on the proposed controversial transfer of franchise material CJ Perez from Terrafirma to San Miguel Beer, league commissioner Willie Marcial said on Sunday. “I will just wait for the decision of the trade committee,” Marcial said. “I’ll honor its recommendation, and I never decided on any trade ever since [I became commissioner].” The trade committee is composed of league technical consultant Joey Guanio, deputy commissioner Erik Castro, legal counsel Atty. Melvin Mendoza and technical officials Rosc Teotico and Junior Bengua. Terrafirma team governor Bobby Rosales disclosed before the weekend that they are trading Perez, the Dyip’s scoring leader last season and 2019 Rookie of the Year, for swingman Matt Rosser-Ganuelas, playmaker Gelo Alolino and forward-center Russel Escoto and San Miguel Beer’s No. 8 overall pick in the

upcoming Rookie Draft. The impending trade has the makings of a similarly controversial deal in 2017 when Terrafirma, then known as Kia, traded its No. 1 pick, Christian Standhardinger, also to San Miguel Beer in exchange for Jay-R Reyes, Rashawn McCarthy and Ronald Tubid plus a 2019 firstround pick. That trade courted controversy among the team owners and governors and pressured Chito Narvasa to resign as commissioner. Rain or Shine co-team owner Raymond Yu said he is keenly interested on how the trade would turn out. “I trust that the PBA to decide on the basis of what is good for the league as a whole,” said Yu. “But you cannot stop owners from doing something to improve their teams.” Perez registered league-leading 24.3 points, 6.8 rebounds and 4.2 assists averages in 11 games for Terrafirma, which finished with a dismal 1-9 won-lost card in the Philippine Cup last year. He has been a national team member since 2019. NLEX Head Coach Yeng Guiao, meanwhile, said the league “should do the right thing in dealing with the situation by being sensitive to its audience—the public.” “Our audience should be satisfied with the decision of the PBA regarding the trade,” he said. San Miguel Beer management remained mum on the trade.

Naomi Osaka (left) and Serena Williams walk from the court together following an exhibition event in Adelaide, Australia, recently. AP

ELBOURNE, Australia—The last group of quarantined players in Melbourne ahead of the Australian Open and a week of tuneup tournaments left their hotels at midnight Saturday night, ending a mammoth two-week effort to reduce the chance of any international arrivals bringing the coronavirus Down Under. More than 1,000 players and officials went into a two-week quarantine from January 14 when the first of 17 flights chartered by Tennis Australia landed in Melbourne and Adelaide. Three of those charters contained players or entourages with Covid-19, meaning that 72 players had to go into hard quarantine with no opportunity to practice. Other players not in hard quarantine were allowed out of their rooms for up to five hours a day to train. Melbourne Park, site of the Australian Open, was busy Saturday with all but 22 players out of hotel quarantine and preparing for the tuneup

tournaments which get under way on Sunday. Japan’s Kei Nishikori and Benoit Paire of France were among those who could exit their hotels at 11.59 p.m. on Saturday. Two Women’s Tennis Association (WTA) tournaments kick off official proceedings on Sunday, and Australia’s world No. 1 Ash Barty has a first-round bye in one of them. Ajla Tomljanovic, ranked No. 69, takes on Alize Cornet of France in the first round to determine who will play 2019 Australian Open champion Naomi Osaka in the second. There is one other WTA tournament scheduled only for those players who were in hard lockdown. As well, the Association of Tennis Professionals (ATP) Cup team event begins Tuesday and there are two other ATP men’s tournaments scheduled in Melbourne ahead of the February 8 to 21 Australian Open. The first Grand Slam tournament of the year was delayed by three weeks to allow for the 14-day quarantine and a week of warm-up tournaments. Some of the big stars got their season started unofficially on Friday in an exhibition tournament at Adelaide’s Memorial Drive, where Serena Williams beat Osaka, Rafael Nadal defeated US Open champion Dominic Thiem and second-ranked Simona Halep beat No. 1 Ash Barty. Australian Open chief executive Craig Tiley said Saturday the Australian Open will be fair for all players despite differing preparations.

Tiley said the players who were in hard lockdown had been given priority with their schedules and access to training facilities. He said with all players having at least nine days between quarantine and the start of the Open, the tournament would be as fair as it could be. “There have been a lot of questions about a fair playing field—some players have had to quarantine, some have not,” Tiley said. “We’ve given nine days when coming out of quarantine to when they’ll really need to be playing. It’s not going to be perfectly ideal, but it’s enough time to be as ready as you possibly can be. No different to inclement weather or someone being a bit sick and having to take a few days off.” As contractors put the finishing touches on the stadiums and surrounds at Melbourne Park, Victorian state sports minister Martin Pakula said crowds would be at about 50 percent of previous years, with 390,000 people expected over the two weeks. There will be 30,000 allowed through the gates each day for the first eight days, which will be reduced in the finals to crowds of 12,500 during the day session and 12,500 during the night sessions. “Rod Laver Arena will have incredible atmosphere, not that different to the atmosphere we’ve seen at all the Opens in the years past,” Pakula said of the tournament’s main 15,000-seat arena. AP

PACQUIAO-GARCIA FIGHT BOUND TO THRILL FANS

NTERNATIONAL matchmaker Sean Gibbons expects a thrilling fight between Sen. Manny Pacquiao and American rising star Ryan Garcia which is proposed for late April or early May this year. “I think it is an interesting and entertaining fight. The new versus the old,”Gibbons, also the MP Promotions president, told BusinessMirror on Sunday. It’s like what Manny did when he was 135 lbs going to 147 [Oscar de la Hoya] before,” Pacquiao decimated de la Hoya in December 2008 via an eighth-round technical knockout victory in a non-title welterweight (142 to 145 lbs.) bout at the MGM Grand in Las Vegas. Garcia, unbeaten in 21 bouts with 18 knockouts, told various sports web sites that he would take on the 42-year-old Pacquiao (62-7-2 win-loss-draw record with 39 knockouts. Although BusinessMirror learned the

proposed bout is facing opposition among members of the Pacquiao camp, Gibbons said negotiations are ongoing with Garcia’s representative, Guadalupe Valencia. “Yes, yes, yes,” added Gibbons when asked if he already presented a proposal to Pacquiao who was demoted by the World Boxing Association from welterweight world titleholder to “champion in recess” over the weekend because of inactivity for more than one year. Cuban Yordenis Ugas was declared “super” welterweight champion. The Paradigm Sports Management of Audie Attar, meanwhile, issued a statement on Sunday that the outfit has the authority to negotiate for Pacquiao. “Anyone falsely representing themselves as Pacquiao’s manager or representative as it relates to his remaining fight career may face legal repercussions,” Attar said.

Josef Ramos

A week of racism, violence Rick Olivares bleachersbrew@gmail.com

Bleachers’ Brew I KNOW violence and racism in sports is nothing new. I detest both, but even in this time of pandemic, it continues to rear its ugly head. And a lot happened in these past week. Has all the stress and depression from the pandemic caused sorter tempers and frustration? Dutch cyclist Dylan Groenewegen bared that he received death threats after a horrific crash during the Tour of Poland in August of 2020 where he swerved onto the path of compatriots Fabio Jakobsen. Groenewegen was served a nine-month ban by UCI, the world’s governing body for the sport, after he deliberately swerved and elbowed Jakobsen into the railings that caused massive injuries and sent him into a coma. The crash also took out several cyclists. While I do not condone what Groenewegen did and I think that he should have been suspended longer than the nine-month ban handed to him, death threats are wrong. I do get the anger towards him, but to even threaten his child is wrong. What happened outside the training center of French football club, Marseille, is just plain ugly. After three successive defeats that have seen Marseille drop to seventh in the French Ligue 1, some 300 fans assaulted the team’s training facility and in doing so, injured seven policemen. Twenty-five fans were arrested following the assault. As a result, Marseille’s match against Rennes has been called off. I can get frustration and anger. I too have felt that on many an occasion towards the sports teams I root for. But I have never ever thought of attacking a player or a coach. Even when a team wins in a championship, I have never felt this urge for destruction which is why when violence occurs, it baffles me. As a journalist and a columnist, I have called out wrong deeds and even people of ill repute in my writings. But never

have I hurled racist epithets such as what Manchester United player Marcus Rashford received after his side’s scoreless draw with Arsenal this past Saturday night. Rashford wasn’t the only one racially abused after the match. His teammate Anthony Martial also received the same. Said Rashford, it was “humanity and social media at its worst.” In a recent survey conducted by the Professional Cricketers’ Association has found than more than half of those who responded have declared that they have witnessed racism in their sport. That survey was answered by 174 of the 575 cricketers. If you do the match, that’s 87 who have experienced it and did not report it. Some of the respondents said that the slurs have been disguised as “banter” which is not an excuse. It has been reported that the PCA will roll out its new anti-racism program this March. There are good and points to everything in this world. Just as social media can be a force of good, it can also be negative. Just reading all the work of trolls on sites is annoying. A decent conversation is at times difficult to hold. Authorities should really clamp down on these louts. Longer jail sentences and stiffer fines especially if it hurts one’s wallet is a start would do nicely. For all the advances in science and technology, the human race is still lagging behind in a lot of aspects with regards to relationships and respect (especially to this planet). I have often read in many articles or videos about how this pandemic has caused us to think and reflect about life. Looks like some people haven’t done that. Or maybe, engaging in violence and racism is a reflection on their sad and troubling lives. Mental issues even. Now that needs some looking into.

BusinessMirror February 01, 2021

Articles inside

PHL POSTS DECADE-HIGH $12.8-B BOP SURPLUS IN ‘20 BICAM PANEL FINALLY OKS CREATE FINAL FORM