BusinessMirror July 13, 2020 by BusinessMirror

Buy online but pay in cash still preferred–poll By Cai U. Ordinario @caiordinario

ESPITE the growth in the number of online shoppers and sellers, many Filipinos still prefer to pay and get paid using cash on delivery, according to the National Economic and Development Authority (Neda). In a recent briefing, Neda Undersecretary Rosemarie G. Edillon presented the results of the National ICT Household Survey (NICTHS) which showed only 2 percent or 643 of survey respondents are selling online and only 8.8 percent or 3,000 respondents said they buy products online. Most of these online sellers and shoppers still prefer to pay on a cash-on-delivery scheme instead of other digital modes of payment such as electronic wallet or online banking.

AUTHORITIES have installed a Public Bike Repair Station along Edsa to help bikers who encounter problems in their journey. The government has encouraged greater use of bicycles as public transportation remains limited owing to social distancing protocols dictated by health safeguards against Covid-19. NONOY LACZA

“Another big problem is that many of them preferred to be paid on a cash-ondelivery scheme. So, digital payments is still not accepted even among online retailers,” Edillon said in a presentation. The data showed that majority or 54 percent of sampled individuals in the NICTHS said they were unaware that financial transactions can be performed online. In terms of region, Filipinos living in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) were the most unaware that financial transactions can be made online, at 89.3 percent. Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said the government can incentivize the use of electronic payments not only to boost e-commerce but also to prevent the spread of the coronavirus 2019 (Covid-19) pandemic.

National ID

ONE of the ways to push the use of online payments is to roll out the National ID. Chua said the government’s plan to register 15 million heads of the poorest household in the national ID system will allow each household to have at least one bank account that can also be used for electronic payments. “If the 50 percent of Filipinos don’t even know that online transaction is possible or online payment and they do have a phone, then that will incentivize the behavior toward online payment,” Chua said. “If the people are also aware that paying in cash will spread the virus more, then they would also be more careful. So [the government cannot mandate the use of online bank accounts] but I think it is more incentivizing the use of online payments,” he explained. Continued on A4

GOVT BREACHES P1.4-T 2020 BORROWING PLAN

n Monday, July 13, 2020 Vol. 15 No. 277

P25.00 nationwide | 3 sections 20 pages |

FRANCHISE REJECTION TO WEIGH ON ABS-CBN FINANCIAL POSITION By VG Cabuag @villygc

& Tyrone Jasper C. Piad @Tyronepiad

ANAJEAN GRETA, a native of Bacolod, stays at one of the temporary tents located at Naia Terminal 3 for locally stranded individuals. She has been staying at the airport since July 7. Her flight to Bacolod City on July 8 was canceled due to health protocols set by her province. She was rebooked on July 24 by her airline. NONIE REYES

By Bernadette D. Nicolas

@BNicolasBM

N just five months, the Philippine government has breached its P1.4trillion borrowing program for this year, having taken out P1.509 trillion from both domestic and foreign sources, latest data from the Bureau of the Treasury showed.

Government’s gross borrowings as of end-May also surged by 91.75 percent year-on-year from only P787.13 billion a year ago as

PESO EXCHANGE RATES n

the country needed more funds to fight the Covid-19 pandemic amid a ballooning budget deficit. Of the total gross borrowings for

the five-month period, 76.37 percent was sourced locally while the remaining 23.63 percent came from foreign sources. Year-on-year, gross domestic borrowings as of end-May doubled to P1.153 trillion from only P576.016 billion in the same period in 2019. On the other hand, foreign borrowings during the period jumped by 68.93 percent to P356.64 billion from P211.1 billion last year. Broken down, domestic borrowings so far comprised retail treasury bonds (P310.766 billion), fixed-rate treasury bonds (P307.859 billion), domestic loan

under the repurchase agreement with Bangko Sentral ng Pilipinas (P300 billion), and treasury bills (P234.017 billion).

External borrowings

MEANWHILE, external borrowings of the national government include program loans (P162.789 billion), dollar-denominated global bonds (P118.735 billion), euro bonds (P67.329 billion) and project loans (P7.787 billion). For May alone, gross borrowings more than doubled to P289.817 billion from only P125.607 billion in the same month in 2019.

BS-CBN Corp. may find it difficult to cope financially after lawmakers voted against the renewal of its franchise. After a series of hearings, the majority of the House of Representatives committee handling the matter denied the Lopez-led media company’s franchise application last week. This means that 11,000 ABS-CBN employees will be let go as the firm shut down broadcast operations. “Without the franchise, it puts a big question mark on how the company will generate enough revenues from other business units since most of the sales come from the ads that come out of the mother station,” Luis Limlingan, managing director at Regina Capital Development Corp., said. Shares of ABS-CBN were last traded on Friday at the Philippine Stock Exchange at P14.78, already down from the previous day’s P15.18 apiece. Many analysts expect shareholders of ABS-CBN will sell out their holdings when trading resumes. “Their share price is [at risk] on Monday unless they suspend trading or do a share buy-back,” Christopher Mangun, research head at AAA Securities Inc. said.

Revenue channels DE La Salle University economist Maria Ella C. Oplas told the BusinessM irror that it will not be a “nice picture” for ABS-CBN, financially speaking, as the nonrenewal of

the franchise would weigh on its revenue channels. Oplas said that this could then pose challenges to the network’s cash flow, thereby potentially affecting its ability to settle obligations. “Just imagine, they don’t operate now, I’m sure advertisers pulled out,” she said, noting that advertisements are a major income generator. This leaves ABS-CBN with a troubled cash flow and liabilities yet to be paid off, Oplas said. “It’s also not a good picture for their stockholders. I’m sure a lot are giving up their stake now,” she added.

Integral part PHILSTOCKS Financial Inc. analyst Japhet Louis Tantiangco agreed that the denial of franchise renewal would adversely impact ABS-CBN’s financial position. “With the denial of the franchise renewal, ABS CBN will not be able to resume its radio and television broadcasting operations which has been an integral part of its business,” Tantiangco told this newspaper. This could result in revenue losses, he said, noting that this would then reflect on the company’s fundamentals. ABS-CBN might also be forced to liquidate some of its assets to meet its obligations, he added.

Liabilities ACCORDING to its latest unaudited financial report posted in the Philippine Stock Exchange, ABS-CBN has total liabilities amounting to P48.43 billion as of end-September 2019. Continued on A2

Continued on A2

US 49.4440 n JAPAN 0.4612 n UK 62.3439 n HK 6.3798 n CHINA 7.0711 n SINGAPORE 35.5150 n AUSTRALIA 34.4081 n EU 55.7976 n SAUDI ARABIA 13.1833

Source: BSP (Source: BSP (10 July 2020)

News

BusinessMirror

A2 Monday, July 13, 2020

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Dominguez rues ‘poor record’ of SEC in fighting financial fraud

By Bernadette D. Nicolas

@BNicolasBM

INANCE Secretary Carlos G. Dominguez III has called the attention of the Securities and Exchange Commission (SEC) for its “poor record” of law enforcement against financial fraud perpetrators.

Dominguez told finance reporters that financial fraud could be prevented if the government focuses on law enforcement, including detection, prosecution and conviction. “[I] have discussed with SEC their poor record of law enforcement of financial fraud perpetrators—for example, no convictions of pyramid scheme operators,” he said. SEC is an attached agency of the DOF.

Bank secrecy

ASIDE from the need to strengthen

enforcement, Dominguez renewed his call to amend laws on bank secrecy to address financial fraud and put the Philippine laws on a par with international practices. He made the remarks in reacting to an opinion piece titled, “Why Does the Philippines Attract Financial Fraud?” written by Stephen Cutler for Nikkei Asian Review. The opinion piece noted the most recent financial scandals, such as the still-raging Wirecard controversy and the Bangladesh Bank Heist in 2016, dragged in Philippine banks and financial entities.

Cutler, who was a security analyst and anti-money laundering consultant in the Philippines who previously served in the Federal Bureau of Investigation, pointed out in the article the larger issues of “weaknesses in the country’s oversight of its financial system,” particularly the lack of enforcement capacity on the part of the SEC, Bangko Sentral ng Pilipinas (BSP), and the Anti-Money Laundering Council (AMLC), and the absence of a strong whistle-blower system in the country. “W hile these agencies have many good and diligent employees, what appear to be lacking are the ability and willingness of these three bodies to conduct meaningful routing monitoring and verification of financial institutions. This should be aimed at ensuring real compliance with best practices and legal requirements of due diligence and know your customer policies, beyond going through the motions for audits,” he said. Cutler said SEC has limited staff and cannot conduct reviews of documentation to ensure that ev-

erything is in order; while BSP and AMLC also lack staffing that would allow meaningful investigations and follow-ups of suspicious activity and even of legally required suspicious transaction reports. “The sieve intended to catch bad actors and protect the nation has too many holes. That needs to change,” he said. On top of this, Cutler also said the Philippines has “little to no encouragement for any whistleblower to come forward with serious allegations.” Thus, he urged the BSP, SEC and AMLC to establish protected mechanisms for such reports, with meaningful follow-up investigation on allegations.

Diokno: Cooperation on Wirecard

LAST week, BSP Governor Benjamin Diokno said they are willing to collaborate with international agencies and German regulators in handling the Wirecard financial scandal. The German payments firm, Wirecard, has been facing public scrutiny after $2.1 billion of its

funds went missing. Two of the country’s biggest banks—BDO Unibank (BDO) and Bank of the Philippine Islands (BPI) were initially tagged in the scandal. However, Diokno claimed that those behind the anomaly are only using the names of the two banks to cover their tracks as initial reports showed none of the missing money entered the Philippine financial system. Both banks have also denied Wirecard was their client. Lawyer Mark Tolentino, former assistant secretary for the Department of Transportation who was sacked by President Duterte in 2018, is also being linked to the scandal. His law firm, M.K. Tolentino Law & Business Consultancy Office, admitted opening and maintaining foreign currency deposit accounts with BDO and BPI, but did not name their clients, citing absolute confidentiality required by the Foreign Currency Deposit Act. Tolentino’s camp denied knowing or participating “in any alleged irregularity” involving Wirecard’s money.

Bong Go files twin bills to combat increasing cases of child sexual abuse in the country

EN. Christopher Lawrence “Bong” Go has filed a measure to amend Republic Act No. 7610 or the “Special Protection of Children Against Abuse, Exploitation, and Discrimination Act” which will enhance the country’s protective measures against child sexual abuse. Senate Bill 1650 seeks to amend Section 5 (b) of the Anti-Child Abuse Law regarding the penalty for persons engaging in lascivious conduct or sexual activity with minors under 12 years of age. The proposed amendment increases the penalty to reclusion temporal in its medium period to reclusion perpetua for any individual found violating such provision. Under the present law, lascivious acts

against a minor below 12 are penalized with reclusion temporal in its medium period; the same act committed against a child above 12 but below 18 is penalized with reclusion temporal in its medium period to reclusion perpetua. In other words, the penalty is lower despite the fact that the victim is younger. Go cited a 2019 Supreme Court case, People v. Tulagan, which called for “corrective legislation” to address the incongruent penalties. "We strongly object to abuse of our youth. That is why we are pushing this bill in the Senate, to protect our youth," Go said in Filipino. He cited United Nations estimates of tens of thousands of children victimized by the global child-abuse industry,

now worth over $1 billion. The Philippines, in particular, is the largest known source of Online Sexual Exploitation of Children (OSEC) cases, per a recent study conducted by the Washingtonbased International Justice Mission in partnership with the Philippine and United States governments. The number of cases increased by 250 percent from 23,333 in 2014 to 81,723 in 2017. It is believed the widespread use of the English language, high poverty incidence and relatively easy Internet access made this possible. OSEC is predominantly a familybased crime. The average age of the victims is 11 years. The youngest documented victim is less than one year.

Seventy-four percent of the local cases were facilitated by someone within the child’s circle of trust, such as a family member, guardian or family friend. The parents, if not traffickers themselves, sometimes get involved as they too share in the financial benefits obtained from the exploitation of the child. It is suggested that money, as opposed to sexual deviancy, is the primary motivator. A US State Department official disclosed the number of OSEC cases in the Philippines is swiftly rising partly due to the economic downturn from the Covid-19 pandemic. The pedophiles are mostly in the United States, Canada, Europe and Australia. Many have either traveled or lived in the Philippines at some point

FRANCHISE REJECTION TO WEIGH ON ABS-CBN FINANCIAL POSITION Continued from A1

The current portion—to be settled within one year or less— of its liabilities is P14.56 billion. These are noninterest-bearing trade payables usually paid in 30 to 90-day term and accrued production costs, among others. It also has loan agreements— total of P21.23 billion—with several banks throughout the years. Most recently, according to the same report, ABS-CBN borrowed P5 billion from Union Bank of the Philippines on May 21, 2019, to partially fund its capital expenditures and general working capital needs.The 10-year loan has a fixed rate of 6.74 percent per annum and is payable quarterly. The media firm assured that it was in compliance with the provisions of its loan arrangements as of September 2019 and December 2018. “Unamortized debt issue cost, presented as a deduction from the company’s outstanding loan, amounted to P119 million and P75 million as at September 30, 2019, and December 31, 2018, respec-

tively,” the report noted.

Assets

STILL, ABS-CBN has more assets than liabilities. Referring to the same report, the company assets have an aggregate amount of P85.65 billion as of end-September 2019. A huge chunk of its assets comprises property and equipment amounting to P27.87 billion. Of this amount, the biggest allocation—P7.97 billion—was for towers, transmission, television, radio, movie and auxiliary equipment. Others include land and land improvements (P2.19 billion), buildings and improvements (P4.93 billion), other equipment (P5.02 billion) and construction in progress (P7.78 billion). In the first nine months of 2019, ABS-CBN held cash and cash equivalents amounting to P13.32 billion.

Mitigating potential losses

WHILE ABS-CBN lost its broad-

cast franchise, Oplas said that the company still has followers. “People will still follow them [ABS-CBN] in other platforms. Then, dun sila pwede kumuha ng ads [they can sell advertisements there],” she explained. Oplas, however, stressed that advertisement revenue may not be as big as it was before. Tantiangco said that ABSCBN would need to trim expenses to keep its financial position at a manageable level. “It [ABS-CBN] would also have to cut costs to production to save cash that can be used in servicing its debts,” he said.

Govt lost tax revenues

SHUTTING down ABS-CBN may also mean a loss for the government. Ateneo De Manila University economist Philip Arnold P. Tuaño told the BusinessMirror that ABS-CBN has substantial tax contribution, noting that even the Bureau of Internal Revenue reported the company paid

P15.3-billion worth of taxes in 2016 to 2019. “What I can say is that the defeat of the House bill on the franchise renewal is unfortunate given that the firm has been contributing significantly to the government’s coffers,” Tuaño pointed out. “[This] would be difficult to replace given the expected loss of tax revenue following the economic downturn this year,” he added.

Question of PDRs

MEANWHILE, Congress’ decision on the PDR or Philippine Depositary Receipt issued by a mass media company may have an effect on other companies that have this type of securities that allows foreigners to own shares. The other listed company that also has PDR is GMA Network Inc., the country’s secondlargest media company. A depositary receipt is a negotiable certificate issued by a bank representing shares in

a foreign company traded on a local stock exchange. This security gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an international market. The 1987 Constitution, however, only limited the ownership and management of local mass media to Filipinos GMA Network has not responded at presstime to BusinessMirror’s query on the issue. In a previous statement, they said it was done in compliance with the rules of regulators. GMA’s share price was up on Friday to P6.03 per share from the previous close of P5.71 per share. Ephyro Luis B. Amatong, commissioner at the Securities and Exchange Commission, earlier said the agency did not have a reason to investigate on the PDR or look at the issues involved, and they received no complaints regarding the issue.

in time. As a consequence, the senator also filed another bill, SB No. 1649, to reduce the risk of such crimes occurring. The Bureau of Immigration Modernization Act of 2019 aims to update the Philippines’s outdated immigration system. It provides a system of documentation and prescribes the procedure and requirements for the admission of immigrants. Section 77 of the bill cites moral grounds prohibiting the entry of pedophiles, sexual perverts and persons engaged in prostitution into the country. It also denies entry to foreign nationals convicted of a crime involving moral turpitude or suspected to be engaged in human trafficking.

Zeny Maranan, leader of PUV workers, dies By Lorenz S. Marasigan @lorenzmarasigan

ENAIDA de Castro Maranan, a transport advocate who relentlessly fought for the rights of ordinary public utility vehicle (PUV) drivers especially in the past months that the Covid-induced lockdowns had wiped out their sector, died on Saturday afternoon, her family said. She was 75. Maranan, the national president for the Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap), died of cardiac arrest while being treated in hospital for an unspecified illeness. Until very recently, she was still granting media interviews repeatedly pleading with government to consider the plight of drivers adversely affected by the Covid-19 pandemic. She said while she herself agreed with the broad principle of upgrading rundown PUVs, the government’s financing options will not suit most of them. A sober and enlightened voice,“Ka Zeny,”as she is fondly called by peers, supported the plight of smaller jeepney players, who will be most affected by the modernization program of the government. She repeatedly sought for greater consideration from the government on their financing limits, saying that single players will have no means to acquire modern units. Alliance of Concerned Transport Organizations (Acto) National President Efren de Luna said the industry mourns the loss of a passionate transport advocate. “Ka Zeny’s death is a great loss for the industry. Even in her last breath, she fought for the rights of ordinary drivers and operators, especially against the issue on modernization. While we mourn her passing, we will continue to fight for the same advocacies of Ka Zeny,” de Luna said in a Facebook post.

US plans announcement on SCS soon –sources Continued from A8

“Our fishers are devastated as it is; with 14 fishing crew remain missing after a recent maritime collision. Thus we demand justice for the Liberty Cinco 14 and the Filipino fishers who are victims of Chinese aggression,” Fernando Hicap, Pamalakaya National chairman said in a statement. On July 12, 2016, the International Permanent Court of Arbitration was handed down in favor of the case forwarded by the Philippines against the claim and actions of the People’s Republic of China with respect to the South China Sea. It, in effect, invalidated China’s nine-dash line assumption over nearly the entire South China Sea, including the Philippines’s exclusive economic zone and extended continental shelf. The international tribunal also found China in violation of the 1982 United Nations Convention on the Law of the Sea (Unclos), specifically with respect to the Philippines’s sovereign rights by interfering with fishing operations, constructing artificial islands, among others. “China never ceased from its reclamation and intervention activities in our territorial waters. It blatantly disregards international arbitration and disrespects the rights of Filipino fishers in our own fishing grounds,” Hicap said. “ We likew ise denounce the Duterte government for its utter neglect to uphold our territorial and sovereign rights in the West Philippine Sea, compromising the rights of our fishers in their traditional fishing grounds,” he said. Bloomberg, Jonathan L. Mayuga

GOVT BREACHES P1.4-T 2020 BORROWING PLAN Continued from A1

Domestic borrowings in May this year more than tripled to P170.510 billion from 2019’s P50.908 billion while foreign borrowings rose by 59.72 percent to P119.31 billion from P74.699 billion in May 2019. The national government’s outstanding debt as of end-May swelled by 12.3 percent to P8.89 trillion from P7.916 trillion in the same period in 2019. Of the total outstanding debt stock of P8.89 trillion as of endMay, 68 percent was borrowed from local sources, while 32 percent came from foreign sources.

Wider deficit

THE Cabinet-level Development Budget Coordination Committee (DBCC) expects a wider budget deficit this year at 8.4 percent of GDP or equivalent to P1.613 trillion, more than double the country’s budget gap last year at P660.2 billion or 3.4 percent of GDP. As of end-May this year, the country’s budget deficit expanded to P562.2 billion, nearly 695 times as much as the previous year’s budget gap of only P809 million for the period. This was on the back of increased disbursements and drop in revenue collections due to the Covid-19 pandemic. The countr y’s debtto-GDP ratio is also seen to increase to 49.8 percent this year from 39.6 percent last year. Despite the projected increase in the country’s debt-to-GDP ratio, economic managers had said this is still far lower than the most recent peak of 71.6 percent in 2004. A budget deficit occurs when expenditures exceed revenues, while the debt-to-GDP ratio is used to gauge a country’s ability to pay its debt.

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Level up vs phishing, online scams, DOJ tells law enforcers By Joel R. San Juan @jrsanjuan1573

HE Department of Justice (DOJ) has advised all law enforcement units in the country to strengthen capabilities to fight crimes being committed in cyberspace that have become prevalent during the lockdown. In a recently conducted webinar series entitled, “Cybercrime in the Time of Corona: PH Cybercrime Trends during the Covid-19 Pandemic” hosted by the Department of Justice-Office of Cybercrime, it was reported by authorities that phishing has emerged as the top crime being committed in cyberspace. National Bureau of Investigation NBI-Cyber Crimes Division (NBI-CCD) Senior Agent Francis Señora said during the webinar that the number of phishing cases reported to the agency increased by more than 200 percent. Señora said that the agency only had around 30 cases prior to March. He said an additional 70 cases were reported after three weeks “Why? Because there is a necessity to use computers to do our communication; to do our job,” Señora said. “Hence, this is one of the opportunities for attack.” Phishing is a cyber crime wherein targets are contacted by e-mail, telephone or text message by someone posing as a legitimate institution to lure individuals into providing sensitive data such as banking and creditcard details, passwords and personally identifiable information. The two other top cyber crimes are

online selling scam and misinformation that tends to cause panic among the public. Phishing and online selling scam are punishable under Republic Act (RA) 10175 or the Cybercrime Prevention Act of 2012, while the latter is penalized by RA 11649 or the Bayanihan to Heal as One Act It can be recalled that the DOJOCC also reported a 264.63-percent increase in the number of reported online sexual exploitation of children (OSEC) during the three-month quarantine period imposed by the government beginning March 17. This prompted the DOJ to pressure the country’s Internet service providers (ISPs) to comply with their duty under the law to install a program or software that will block access to or transmittal of any form of child pornography. The DOJ lamented it has been 11 years since the passage of RA 9755 or the Anti-Child Pornography Act of 2009. The DOJ said the ISPs continue to be remiss of their duties. Justice Secretary Menardo Guevarra said the spike in cyber-related crimes is expected considering the non-face-to-face mode of communication during the pandemic. “It is expected that during these pandemic times, where direct personal interactions are reduced, more crimes will be committed in cyberspace. It is therefore imperative that law enforcement agencies beef up their cybercrime units, upgrade their technologies and enhance their investigative capabilities,” Guevarra said.

DFA: Nearly 80,000 overseas Filipinos have returned home By Recto Mercene

HE Department of Foreign Affairs (DFA) announced over the weekend it has facilitated the repatriation of 78,809 overseas Filipinos (OFs) since government began repatriation efforts in February. The number includes the 10,369 OFs who returned last week from various regions around the world. About 47 percent or 37,166 of those who returned are sea-based OFs while 41,643 are land-based OFs, with the most recent repatriates arriving from France, the Netherlands, Qatar, Kingdom of Saudi Arabia, the United Arab Emirates (UAE), the United States of America and Vietnam. The DFA said it continues to facilitate more flights from the Middle East, which is home to more than 2 million overseas Filipino workers (OFWs).

from Kuwait. The DFA added it has also assisted in the return of 1,628 stranded Filipinos from the Asia-Pacific region, particularly from the Hong Kong Special Administrative Region, the Maldives, Myanmar, South Korea and Sri Lanka. The DFA said it also facilitated the repatriation of 1,204 seabased workers who arrived from Italy, the Netherlands, Norway and Turkey. The DFA added it also mounted five chartered flights last week, using its Assistance-to-Nationals fund, which brought home 1,323 overseas Filipinos from Japan, Pakistan, Qatar and Saudi Arabia. The DFA said it, together with the Philippine embassies, consulates and attached agencies around the world, remains fully committed to br inging home Filipino nationals abroad as the number of Covid-19 cases continues to rise.

Committed

Rejoining

@rectomercene

THIS week, the DFA brought home 6,681 fellow Filipinos from the region by facilitating nine flights from the UAE, seven flights from Saudi Arabia, three flights from Qatar, two from Bahrain, and one

Cash incentives for 7.5M elderly sought in Congress By Jovee Marie N. dela Cruz @joveemarie

L AWMAKER on Sunday would ask Congress to include in its priority measures the passage of a bill providing cash incentives to senior citizens. Ang Probinsyano Party-list Rep. Alfred de los Santos said his bill is seeking to amend the Centenarian Act of 2016 in a bid to “expand and extend to more of our elders the benefits from the Centenarian Act.” Citing the Philippine Statistics Authority (PSA), the lawmaker said the number of senior citizens in the country has been increasing over the past decades despite the fact that the Philippines remains a young population, with median age hitting 23 years old in 2010. De los Santos said the PSA data showed that the number of senior citizens, however, has been steadily moving up, reaching 7.55 million in

2015 from 4.57 million in 2000, or an increase of 65 percent. The lawmaker said the Filipinos aged 70 and over, account for 38 percent of all senior citizens. To note, the oldest voter in the Philippines is 90 years old, according to news reports. De los Santos said “the amendment to the Centenarian Act would allow more of our senior citizens to benefit from the assistance provided under the law,” de los Santos said. “The monetary aid would alleviate some hardships of our elders in the short term by allowing them to purchase maintenance medicines and other needs particularly in the midst of a health crisis,” he added. In House Bill 4067, the partylist lawmaker is pushing to give in advance the P100,000 cash gift to Filipino seniors who will reach the 100 years old to allow them to enjoy the benefits under the law. According to his proposal, distribution of cash gifts should be given

in advance as follows: P25,000 upon reaching 70 years old; P25,000 upon reaching 80 years old; P25,000 upon reaching 90 years old; and P25,000 together with a letter of felicitation upon reaching 100 years old. De los Santos’s proposal is now part of the consolidated House bills seeking to amend the Centenarian Act, which advances the distribution of P25,000 cash benefit at the age of 80 and every five years thereafter, and another P100,000 when the senior citizen reaches 100 years old. “The just and humane society that we as a people envision in the Constitution is one which takes care of their elderly and values their dignity as persons. This bill is a step towards that direction,” de los Santos said. Currently, there are 21 pending measures seeking to amend the Centenarian Act. Congress resumes session this month.

Formation of Medical Reserve Corps eyed

EPUTY Speaker Luis Raymu nd V i l l a f uer te a nnounced he will push his proposed bill seeking to create a corps of medical reservists. Villafuerte’s House Bill (HB) 7007 seeks to supplement the frontliners in the health-care system during times of national disasters and health emergencies such as the Covid-19 pandemic. To note, Commonwealth Act 1 of 1935 or the National Defense Act has mandated the creation of a Medical Reserve Corps. Senate Bill 1451, also known as the “Medical Reserve Corps Act of 2020,” which seeks to establish a Medical Reserve Corps has also been filed at the Upper House in May. In his bill, Villafuerte said the lack of medical personnel during the initial stages of the country’s “fight against the coronavirus disease 2019 [Covid-19] has underscored the urgency of establishing a medical reserve corps to ensure that the health-care system is not overwhelmed during emergencies.” The bill said members of the medical reserve corps may be called upon and mobilized to assist the national and local governments in their functions related to addressing the urgent

needs of the country’s health-care system during times of crises. Under HB 7007, the Secretary of the Department of Health (DOH) shall initiate the mobilization of the medical reserve corps, in coordination with the Secretaries of the Departments of National Defense (DND), of Education (DepEd) and of the Interior and Local Government (DILG) or their duly authorized representatives with a rank of Undersecretary. “There is hereby established a Medical Reserve Corps that shall be composed of all persons who have degrees in the field of medicine, nursing, medical technology and other health-related fields but have yet to have their respective licenses to practice for reasons such as but not limited to not having taken and/or passed the licensure examinations in their respective professions,” the bill said. The bill also proposes that members of the medical reserve corps may be called to undergo retraining to maintain and enhance their level of competency and readiness for mobilization in times of crises. Villafuerte said his bill requires the Department of Health (DOH) to evaluate requests for the deployment

Editor: Vittorio V. Vitug • Monday, July 13, 2020 A3

of the medical reserve corps. “When the number of personnel requested does not exceed 150 and the period of deployment does not exceed 60 days, the DOH shall decide whether to approve or disapprove the request within 24 hours from receipt thereof,” the bill said. “When the number of personnel requested exceeds 150 or the period of deployment exceeds 60 days, the DOH shall make a recommendation to the Office of the President [OP] within 24 hours from receipt of the request. The OP shall decide whether to approve or disapprove the request within 24 hours from receipt of the recommendation of the DOH,” the bill added. In case of a declaration of a state of war, state of lawless violence or state of calamity, the DOH may by its own initiative recommend the mobilization of the medical reserve force to the President. It added the President by himself, shall also have the power to order the mobilization of the corps to respond to national or local contingencies related to external and territorial defense, internal security and peace and order and/or disaster risk reduction management. Jovee Marie N. dela Cruz

ON the other hand, Filipino mariners are starting to fly out of the country to rejoin cruise ships in Europe that are posed to resume cruising. Manning agencies have reported

that several hundred Filipino seafarers will be leaving this week to rejoin their ship after their companies have scheduled short trips in and around Northern Europe and the Mediterranean. The agencies have started mobilizing cruise ships crews to report to the offices for medical examinations and processing of their various documents, including the Overseas Employment Certificate (OEC), according to recruitment consultant Manny Geslani. Genting Dream, an Asian cruise ship operator, will start cruises in and around Taiwan in late July, while AIDA Cruises, Carnival Corp.’s German brand, will offer cruises in August. The ships are scheduled to sail from German ports and won’t be at full occupancy, according to a statement. Another Carnival Corp. cruise line, Costa Cruises, will start with two ships starting on August 15 with port calls in Italy and some Mediterranean cities, Geslani said. Hapag-Lloyd Cruises is planning to set sail again starting end of July, with extensive hygiene and preventive measures in place, he added. The company said it expects to send two ships

at 60 percent capacity. Sailing from Hamburg, the Europa 2 and Hanseatic Inspiration will offer shorter routes, the recruitment consultant said. Eight cruises are currently on sail and will comply with the line’s new 10-point health plan.

Relief

ALL these schedule cruises is a relief for Filipino seafarers, part of the first batch of 50,000 OFs who have been repatriated to the country. Geslani said some of the mariners have been notified to report to their manning agencies, saying “many of them have expressed elations over the turn of events are more than willing to start working once more.” Filipino seafarers are preferred by major cruise lines due to their hardworking nature and dedication, comprising one-third of the ship’s complement, from 500 to 800 Filipinos depending on the size of the ships, according to Geslani. The Guilford, Connecticut, USheadquartered American Cruise Lines is on voluntary suspension but expected to sail by September 15, like its counterpart in Europe, he added.

Agriculture/Commodities

A4 Monday, July 13, 2020 • Editor: Jennifer A. Ng

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‘Zero tariff on frozen potato to preserve jobs’ By Elijah Felice E. Rosales @alyasjah

EMOVING the 10 percent tariff on frozen potato products would ensure that French fries stores will remain in business and keep their workers in this time of economic crisis, food importers have told the government. In a public hearing last week, Prime Pacific Foods Corp. and MultiM Food Corp. argued their case before the Tariff Commission on why

the 10 percent import duty on frozen potato should be eliminated. They said this would cut the business cost of fast-food stores and franchisees and would therefore enable them to keep their labor force. Manny Lee of Multi-M said the firm has a client that operates about 1,000 stalls nationwide, with each store employing at least three people, and it is on the brink of laying off workers due to the economic impact of the pandemic. “We have a customer that has

more than 1,000 branches that employ three people per branch. As such, the impact of this decision is important to a lot of business entities and it is relevant as a whole to both business and labor,” Lee said. Lee also said Multi-M recorded exponential growth in terms of revenue between 2007 and 2019, when the tariff on frozen potato fries is at zero percent. “We experienced an exponential growth during the zero percent

regime. It is now hard to see that growth in this 10 percent regime.” Prime Pacific and Multi-M are petitioning before the Tariff Commission the elimination of tariff on frozen potato fries. The import duty on the product reverted to 10 percent after the Philippines passed its rice trade liberalization law in keeping with its commitments to the World Trade Organization. Previously, the Philippines had to apply zero tariff on frozen potato fries as a concession to retaining the

PSA: Lockdown derailed rice data collection By Cai U. Ordinario @caiordinario

HE Philippine Statistics Authority (PSA) said it was not able to release rice stock inventory data for the past three months due to the lockdown implemented by the government to contain the spread of Covid-19. National Statistician Claire Dennis S. Mapa told the BusinessMirror that the PSA was not able to collect data due to the lockdown, which was imposed starting mid-March. The last time the PSA released rice inventory data was last April 7 which covered data as of March 1.

“There was a delay in the data collection due to the lockdown in April, the field offices are consolidating the reports,” Mapa said via SMS. “We will publish the report next week.” Mapa said the data will be presented to him first prior to the release of the data this week. Covid-19 has significantly affected the operations of PSA this year. In April, the PSA had to postpone the conduct of the Census of Population and Housing (CPH) this year to September due to the pandemic. To prevent the spread of Covid-19, the PSA also had to reduce its operations, such as its Civil Registration System (CRS) outlets, which were

reduced by 50 percent in May. However, PSA said it remains committed to continue its field operations to conduct surveys. PSA was still able to release data such as inflation, GDP, and the Labor Force Survey. This was largely due to the continuation of surveys such as the Consumer Price Index; agricultural statistics, including the price of rice; and Monthly Integrated Survey of Selected Industries. Based on the PSA’s March rice stocks inventory report released in April, the country’s total rice stocks stood at 2.18 million metric tons (MMT). The figure was 1.9 percent lower than the 2.22 MMT recorded

in March 2019. Compared to February, total rice stocks contracted by 8.3 percent from the 2.38 MMT recorded in that month. PSA said compared to the rice stocks inventory in March 2019, stocks in the households and National Food Authority (NFA) depositories decreased by 5.1 percent and 2.1 percent, respectively. However, stocks in commercial warehouses rose by 2.9 percent. Month-on-month, PSA data showed that rice stocks inventory in households, commercial warehouses and NFA depositories declined by 6.2 percent,14.9 percent and 1.4 percent, respectively.

Buy online but pay in cash still preferred–poll Edillon said part of the ways forward in leveraging the digital economy is to bridge the digital divide by lowering barriers to entry and increasing Internet connectivity. These efforts include maximizing the potentials of the Innovative Start Up Act and the Innovation Act which were recently passed. Edillon cited the need for additional reforms such as amendments to the Public Service Act and Foreign Investment Act as well as the passage of the open access in data transmission bill. She stressed the need to upgrade

infrastructure, particularly the digital connectivity program—the National Broadband Program and the Free WiFi for All in Public Places and SUCs Program. Edillon said the government must also measure the digital economy through the Census of Philippine Business and Industry (CPBI); Annual Survey of Philippine Business and Industry (ASPBI); Survey of Information and Communications Technology (SICT); Updated List of Establishments (ULE); Family Income and Expenditure Survey (FIES); Commission on Au-

dit Annual Financial Reports; and Department of Information and Communications Technology. This includes the institutionalization of satellite accounts for the digital economy; identifying goods and services and industries that are responsible in producing goods and services. The NICTHS data showed online selling has the highest activity in Region 4A and the National Capital Region. Most online sellers prefer to sell their products and services through social-media accounts

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like Facebook and Instagram. This was followed by online sellers who prefer to sell via e-commerce mobile applications such as Lazada and Shopee. Only a small fraction of them have their own web sites. In terms of online shoppers, the NICTHS data showed the highest number is located in NCR while the lowest were in the BARMM. Majority of respondents (1,504) who buy products online are adults from the 18-34 age group. This was followed by the 35-54 age bracket; 55 years old and above; and the 10-17 age group.

Solon: ABS-CBN can still file an MR Meanwhile, the Makabayan bloc on Sunday condemned the denial of the franchise renewal of ABSCBN, saying “this is a clear attack on press freedom and the people’s right to information.” “Amid unprecedent unemployment brought about by the Covid-19 crisis, Duterte and his allies chose to sentence to hunger and death to the more than 11,000 employees and workers, along with their families, of the media giant,” the bloc said in a statement. “The majority in the House Committee on Legislative Franchises chose to ignore the objective facts that emerged over the course of 12 hearings, along with categorical statements by various government agencies that ABSCBN violated neither the terms of their franchise nor other laws,” it added. The Makabayan Bloc in the House of Representatives consists of Bayan Muna Reps. Carlos Isagani Zarate, Eufemia Cullamat, and Ferdinand Gaite, ACT-Teachers Rep. France Castro, Gabriela Women’s Rep. Arlene Brosas, and Kabataan Party-list Rep. Sarah Elago.

Senators hit vote displacing 11K workers

EARLIER, senators weighed in on the House committee vote to reject the giant network’s application on Friday, throwing out 11,000 workers in the middle of an economically crippling pandemic. “I share the hurt and heartbreak in every Filipino home, and the tears of more than 11,000 workers who were denied of hope,” said Sen. Nancy Binay in a statement, after the House franchises committee voted 70-11, with one abstention and two inhibitions, to reject the grant of a franchise to the Lopez-led network. “I can only ask our leaders what their plans are for the thousands of workers who have lost their jobs. [In these times, people need more than ever to feel their government cares for them],” added Binay, who two days before the vote had exhorted House of Representatives members to act according to conscience on a matter that she said was “bigger than ourselves” because it involved upholding press freedom in a democracy. Binay had words of comfort for the network, which President Duterte had publicly called out, in a speech in December 2019, where he vowed

he will “see to it” that “you’re out” in 2020, when the franchise expires. Binay said: “To the ABS-CBN Family, what hurts you today will make you even stronger tomorrow. The die may have been cast, but it’s never the end.”

‘Pandemic of intolerance’

SEN. Grace Poe, on learning about the House committee decision, rued that “the pandemic of intolerance has claimed another victim.” Poe, who chairs the Senate counterpart Committee on Public Services tasked to review franchises, lamented that the House action, if not reversed, means that “thousands of breadwinners will lose their jobs, and millions [of viewers] their source of entertainment and information.” Poe pointed out that “ABS-CBN is far from a perfect organization, and has admitted to its many failings. But in its balance sheet of accomplishments, the good it had done for our people are valuable.” The senator suggested that “the correct—and constitutional—response is to allow it to remedy them, the same chance extended to thousands of franchise applicants.” She explained this is so “because a media organization that occasionally commits mistakes is in the nation’s interest than one that is permanently muzzled.” Senate Minority Leader Frank Drilon warned that “the sword of Damocles will continue to hang peril-

continued from a8

ously over other media networks,” noting that “both the legislators and the executive can wield the sword at their whim and caprice. This is when democracy starts to weaken.” In the face of a global pandemic, Drilon stressed the people “need more access to information” and the ABS-CBN complements other stations in providing “timely and accurate reportage even in the farthest locality unreachable to others, even to the government.” Drilon earlier filed a resolution to extend the ABS-CBN until December of 2022 but the Senate, he said, can no longer act on it and other bills seeking to renew the franchise of ABS-CBN due to Constitutional limitations.

Angara: Agencies cleared network

SEN. Sonny Angara noted how, in the 12 hearings conducted by the committee, “many government agencies attested that ABS-CBN has no violations, contrary to what others are saying.” He warned that the economic fallout will hit not just the media or broadcasting industry where ABSCBN is a leader, but also the larger economy—advertising and creative industries or pursuits-producing, editing, music scoring, acting, directing, set design, among others. Sen. Francis “Kiko” Pangilinan called the decision a “death sentence” that dooms not just big business but also the livelihood of 11,000 workers and their families. Pangilinan noted the folly of “taking away the jobs of 11,000 people” during a pandemic that has displaced 7 million workers. Jovee Marie N. Dela Cruz, Butch Fernandez

quantitative restriction on rice. Tariff Commission Chairman Marilou Mendoza asked the petitioners for assurance that the elimination of tariff on frozen potatoes would not have an adverse impact on local farmers. In their defense, the firms claimed potatoes produced locally are not suitable for making French fries. They said the variety of potato planted by farmers in Benguet, for one, have a lower yield and contain less grey matter.

To this, Mendoza said it might be time for the importers to invest capital in research on how to convert local potatoes into French fries. She argued this would not only benefit farmers, but end users as well, as it will reduce logistics cost with potatoes now sourced locally. With the public hearing concluded, the Tariff Commission will receive on July 22 the position papers of all stakeholders before it hands down a decision on whether to eliminate the tariff on frozen potato fries.

DA helps farmers sell goods directly to Filipino soldiers

AGRICULTURE Secretary William D. Dar (second from left) and Armed Forces of the Philippines Deputy Chief of Staff Lt. Gen. Antonio Ramon Lim (wearing black beret) inspect vegetables and other agricultural products sold at the Kadiwa retail store in Camp Aguinaldo, Quezon City, on Saturday, July 11. AFP PUBLIC AFFAIRS OFFICE/PHILIPPINE NEWS AGENCY By Jasper Emmanuel Y. Arcalas @jearcalas

HE Department of Agriculture (DA) has expanded its flagship Kadiwa ni Ani at Kita distribution program to the Armed Forces of the Philippines (AFP) headquarters in keeping with its goal of linking Filipino farmers to more markets. The DA in partnership with the AFP launched the Kadiwa at the Soldiers’ Mall in Camp General Emilio Aguinaldo last July 11. The direct marketing joint project would be replicated in all AFP camps nationwide to provide farmers with available markets while offering cheaper food to the armed forces community, according to the DA. “The DA’s Kadiwa Program, which started in August 2019, establishes the link between production and the market and ensures that the producers get the right price for their produce, while the consuming public also gets a fair and affordable price. It’s a win-win arrangement,” Agriculture Secretary William D. Dar said in a statement. The DA said the Kadiwa at AFP market would be held twice a month, coinciding with the armed forces’ payday. This, the DA added, would also ensure that the armed forces community would have easy and affordable access to nutritious food. “The opening of the Kadiwa proj-

ect is timely and indeed pertinent to one of the most urgent needs of our citizens,” AFP Deputy Chief of Staff Lt. Gen. Antonio Ramon Lim said. “It does not only amplify the capabilities of our troops in maintaining a sustainable source of fresh food inside Camp Aguinaldo, but more importantly our farmer producers whose livelihoods have been immensely affected as a result of the community quarantine measures implemented in the past few months.” Earlier this year, the DA and the AFP forged a collaboration for the department’s urban agriculture program, wherein soldiers in Camp Aguinaldo received planting starter kits to boost food production in Metro Manila. The DA said the Kadiwa at AFP is the latest iteration of its banner market linkage program, following earlier modalities such as Kadiwa on wheels, direct retail, e-Kadiwa and Farmers’ Produce. “As of today, Kadiwa has a total sale of P6 billion. So talagang nakikinabang ang farmers at nakikinabang din ang ating consuming public [both the the farms and the consumic benefited from the program],” Dar said. “We hope that as we fight this pandemic forward, we will continue to produce enough food for the country and see to it that these food supplies reach the consuming public.”

PRDP backs cacao beans project in Davao Oriental

AVAO CITY—Cacao farmers in Davao Oriental are all set to supply high quality beans to a multi-awarded chocolate maker after receiving fresh financial aid from the World Bank-funded Philippine Rural Development Project (PRDP). The “Fermented Cacao Beans Marketing Enterprise Subproject” involving farmers’ cooperatives in seven municipalities aims to produce quality beans for the products of Malagos Chocolates owned by the Puentespina family of Davao City. The PRDP-funded project would be centralized under the lead proponent group, Nagmasid Agrarian Reform Cooperative of the San Isidro municipality, to establish postharvest and marketing facilities in the seven municipalities of

Davao Oriental. The six other groups are the Panikian Cacao Small Farmers Association in Banaybanay, Nagkahiusang Kristohanong Mag-uuma sa Cocornon Cooperatives in Lupon, Governor Generoso Cacao Growers Association in Governor Generoso, Limot Mandaya Tribal Multipurpose Cooperative in Tarragona, Yagakauyon na Kooperatiba sa San Ignacio in Manay, and the Davao Oriental Coconut Industry Development Coalition in the city of Mati. The PRDP approved the funding requirement of P14 million for the project under its Investment for Rural Enterprise for Agricultural Productivity (I-REAP) component. The check was handed over to Nagmasid cooperative on July 1. Manuel T. Cayon

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Virus cases surge in India, Africa as inequality stings

OHANNESBURG—South Africa's confirmed coronavirus cases have doubled in just two weeks to a quarter-million, and India on Saturday saw its biggest daily spike as its infections passed 800,000.

The surging cases are raising sharp concerns about unequal treatment in the pandemic, as the wealthy hoard medical equipment and use private hospitals and the poor crowd into overwhelmed public facilities. Globally more than 12.5 million people have been infected by the virus and over 560,000 have died, according to data compiled by Johns Hopkins University. Experts say the pandemic's true toll is much higher due to testing shortages, poor data collection in some nations and other issues. Some of the worst affected countries are among the world's most unequal. South Africa leads them all on that measure, with the pandemic exposing the gap in care. In Johannesburg, the epicenter of South Africa’s outbreak, badly needed oxygen concentrators that help Covid-19 patients who are struggling to breathe are hard to find as private businesses and individuals are buying them up, a public health specialist volunteering at a field hospital, Lynne Wilkinson, told The Associated Press.

Meanwhile, South Africa's public hospitals are short on medical oxygen—and they are now seeing a higher proportion of deaths than private ones, the National Institute for Communicable Diseases says. South Africa now has more than 250,000 confirmed coronavirus cases, including more than 3,800 deaths. To complicate matters, the country's troubled power utility has announced new electricity cuts in the dead of winter as a cold front brings freezing weather. Many of the country's urban poor live in shacks of scrap metal and wood. And in Kenya, some have been outraged by a local newspaper report that says several governors have installed intensive care unit equipment in their homes. The country lost its first doctor to Covid-19 this week. “The welfare, occupational safety & health of frontline workers is a nonnegotiable minimum!!” the Kenya Medical Practitioners, Pharmacists and Dentists Union tweeted after her death. On Saturday, the union and other medical groups urged President Uhuru Kenyatta to implement

a promised compensation package to ease the “anxiety and fear that has now gripped health care workers.” More than 8,000 health workers across Africa have been infected, half of them in South Africa. The continent of 1.3 billion has the world's lowest levels of health staffing and more than 560,000 cases, and the pandemic is reaching “full speed,” the Africa Centers for Disease Control and Prevention says. Many parts of the world are facing fresh waves of infections as they try to reopen their economies. In India, which reported a new daily high of 27,114 cases on Saturday, nearly a dozen states have imposed a partial lockdown in high-risk areas. Cases jumped from 600,000 to more than 800,000 in nine days. People are packing India’s public hospitals as many are unable to afford private ones that generally uphold higher standards of care. Indian Prime Minister Narendra Modi urged top officials to improve infection testing and tracking, especially in states with high positivity rates. Officials on the southern Japanese island of Okinawa said dozens of US Marines have been infected at two bases there in what is feared to be a massive outbreak. The officials said the US military asked that the exact figure not be released. “We now have strong doubts that the US military has taken adequate disease prevention measures,” Gov. Denny Tamaki told reporters. In Australia, the beleaguered state

of Victoria reported 216 new cases in the past 24 hours, down from the record 288 the previous day. It hopes a new six-week lockdown in Melbourne, Australia’s second-largest city with a population of 5 million, will curb the spread. “We cannot pretend that doing anything other than following the rules will get us to the other side of this,” said Victoria Premier Daniel Andrews. In Latin America, where inequality is sharp and Brazil and Peru are among the world’s top five most badly hit countries, the Covid-19 pandemic is sweeping through the continent’s leadership, with two more presidents and powerful officials testing positive in the past week. Yet developing countries are not the only ones overwhelmed. Confirmed Covid-19 cases in the US have hit 3 million, with over 130,000 deaths—the worst outbreak by far in the world. The surge has led to equipment shortages as well as long lines at testing sites. Texas is among the US states setting records for infections, virus hospitalizations and deaths almost daily after embarking on one of America's fastest reopenings. Republican Gov. Greg Abbott on Friday extended a statewide disaster as the state surpassed 10,000 hospitalized patients for the first time. “Things will get worse,” Abbott told Lubbock television station KLBK. "The worst is yet to come as we work our way through that massive increase in people testing positive." AP

Trump wears mask in public for first time during pandemic

ASHINGTON — President Donald J. Trump wore a mask during a visit to a military hospital on Saturday, the first time the president has been seen in public with the type of facial covering recommended by health officials as a precaution against spreading or becoming infected by the novel coronavirus. Trump flew by helicopter to Walter Reed National Military Medical Center in suburban Washington to meet wounded servicemembers and health care providers caring for Covid-19 patients. As he left the White House, he told reporters: “When you're in a hospital, especially ... I think it's a great thing to wear a mask.” Trump was wearing a mask in Walter Reed's hallway as he began his visit. He was not wearing one when he stepped off the helicopter at the facility. The president was a latecomer to wearing a mask during the pandemic, which has raged across the US since March and infected more than 3.2 million and killed at least 134,000. Most prominent Republicans, including Vice President Mike Pence, endorsed wearing masks as the coronavirus gained ground this summer. Republican governors have been moving toward requiring or encouraging the use of masks as the pandemic has grown more serious in some states in the South and West.

President Donald J. Trump wears a mask as he walks down the hallway during his visit to Walter Reed National Military Medical Center in Bethesda, Maryland on Saturday, July 11, 2020. AP Photo/Patrick

Trump, however, has declined to wear a mask at news conferences, coronavirus task force updates, rallies and other public events. People close to him have told The Associated Press that the president feared a mask would make him look weak and was concerned that it shifted focus to the public health crisis rather than the economic recovery. They spoke on condition of anonymity to describe private matters. While not wearing one himself, Trump has sent

mixed signals about masks, acknowledging that they would be appropriate if worn in an indoor setting where people were close together. But he has accused reporters of wearing them to be politically correct and has retweeted messages making fun of Democratic rival Joe Biden for wearing a mask and implying that Biden looks weak. Questions remain whether Trump will wear a mask with any regularity. The wearing of masks became another politi-

cal dividing line, with Republicans more resistant to wearing them than Democrats. Few masks were seen at recent Trump campaign events in Tulsa, Oklahoma, Phoenix and South Dakota's Mount Rushmore. The only time Trump has been known to wear a mask was during a private part of a tour of a Ford plant in Michigan. A spokesman for the Biden campaign cast the president’s action as too little, too late. “Donald J. Trump spent months ignoring the advice of medical experts and politicizing wearing a mask, one of the most important things we can do to prevent the spread of the virus,” spokesman Andrew Bates said in a statement. “Rather than taking responsibility and leading, he wasted four months that Americans have been making sacrifices by stoking divisions and actively discouraging people from taking a very basic step to protect each other.” On its website, Walter Reed carries this recommendation: “Whenever you're out in public, like at your local grocery store or pharmacy, where it’s difficult to maintain 6 feet of social distance, you should wear a cloth face covering.” The facility also notes that the Centers for Disease Control and Prevention recommends wearing cloth face coverings to slow the spread of the coronavirus.” AP

Opec readies next move in bid to avoid oil-market taper tantrum

audi Oil Minister Prince Abdulaziz bin Salman likes the idea of Opec+ acting as the central bank of oil. And he expresses admiration for Alan Greenspan, former chairman of the US Federal Reserve. The challenge now confronting the oil producers’ club is one that’s all too familiar to the Fed: how to avoid a “taper tantrum,” the market panic that ensued when the institution proposed tightening monetary policy in 2013. Having successfully doubled crude prices over the past few months through unprecedented output cuts, the Opec+ alliance led by the Saudis and Russia is poised to begin unwinding these stimulus measures. As fuel demand recovers with the lifting of coronavirus lockdowns, the producers are about to open the taps a little. But as Greenspan’s successors discovered seven years ago, taking away the punch bowl carries its own risks. A second wave of the pandemic threatens another slump in oil consumption, while the billion-barrel mountain of inventories that piled up during the first outbreak still looms. If Opec+

increases supply just as the market falters then prices could crash once again. “When they look at prices over the quarter, when they look at green shoots of demand pickup, I think they feel good,” said Helima Croft, head of commodity strategy at RBC Capital Markets LLC. “I do think they are cognizant though of some of the potential clouds on the horizon.” It’s a balancing act that Prince Abdulaziz and his counterparts must weigh on July 15, when they hold an online meeting of the Joint Ministerial Monitoring Committee, the panel that reviews Opec+’s progress.

Easing the cuts

The JMMC will consider whether the 23-nation alliance should keep 9.6 million barrels of daily output off the market for another month, or restore some supplies as originally planned, tapering the cutback to 7.7 million barrels. As the demand recovery gains traction, members are leaning toward the latter option, according to several national delegates who asked not to be identified. Shipping schedules for August

are already being set, so the course is more or less locked in, one said. In Russia, the most influential non-Opec member of the alliance, major oil companies are preparing to increase production next month in the absence of other guidance from the Energy Ministry, according to two people from the industry who spoke on condition of anonymity. Russian Energy Minister Alexander Novak said on July 2 that no position on an extension had been taken yet, but stressed that it’s better if Opec+ sticks to its previous decisions. Opec+ can go ahead with the designated increase without inundating the market, said Bob McNally, founder of consultant Rapidan Energy Group and a former White House official. Global demand will rebound by 18% this quarter to 95.7 million barrels a day as economic activity resumes, he predicts. That will whittle away inventories at a brisk clip of 5.6 million barrels a day. “Our balances show hefty deficits in the third and fourth quarters, even with a tapering,” McNally said. “I think the market will handle it pretty well.”

Fragile market

Yet the strategy is not without risks. While oil prices have recovered to $43 a barrel in London, from a two-decade low of $15.98 in late April, sentiment in the market remains fragile. The acceleration of the pandemic in the US, where infections hit a record last week, and its re-emergence in Asia is “casting a shadow over the outlook,” the International Energy Agency warned in a report on Friday. The Paris-based agency advises major economies on energy policy. There’s also still a price discount on prompt crude futures—known as a contango—in the US and Europe, suggesting the wider market hasn’t yet tightened. Crude inventories in the US and China are near record levels, government and satellite data show. “The kind of recovery that people would have expected maybe by now has not materialized,” said Mohammad Darwazah, an analyst at Medley Global Advisors. “There’s no doubt the consensus is we will get a tightening of the market, we’re just not quite there yet.” Bloomberg News

Monday, July 13, 2020

Okinawa governor wants tougher action as 61 US Marines infected

OKYO—The governor of Japan's Okinawa Island demanded a top US military commander take tougher prevention measures and more transparency hours after officials were told that more than 60 Marines at two bases have been infected with the coronavirus over the past few days. Okinawan officials on Sunday reported a total of 61 cases—38 of them at Marine Corps Air Station Futenma, which is at the center of a relocation dispute, and another 23 at Camp Hansen—since July 7. They said that US military officials told them the two bases have since been put in lockdown. The disclosure of the exact figures came only after Okinawa’s repeated requests to the US military. Gov. Denny Tamaki, in telephone talks late Saturday with Lt. Gen. H. Stacy Clardy, commander of III Marine Expeditionary Force, demanded the US military increase disease prevention measures to maximum levels, stop sending personnel from the mainland US to Okinawa and seal the bases, as well as provide more transparency. “Okinawans are shocked by what we were told [by the US military],” Tamaki told a news conference on Saturday. “It is extremely regrettable that the infections are rapidly spreading among US personnel when we Okinawans are doing our utmost to contain the infections.” “We now have strong doubts that the US military has taken adequate disease prevention measures,” he added. Tamaki said he wants more talks with the US military. Okinawan officials also asked the Japanese government to

pressure the US side to provide details including the number of cases, seal off Futenma and Camp Hansen, and step up preventive measures. Adding to their concern is quarantining of an unidentified number of American service members arriving from the mainland US for ongoing staff rotations at an off-base hotel due to shortage of space on base, officials said. The Marines said in a statement on Friday that the troops were taking additional protective measures to limit the spread of the coronavirus and were restricting off-base activities. The statement said measures are “to protect our forces, our families, and the local community,” without providing details on the infections. The Marine Corps Installations Pacific said on its Facebook page on Saturday that “this week, the Marine Corps experienced two localized clusters of individuals who tested positive for the virus.” It said those who tested positive were in isolation. Okinawa is home to more than half of about 50,000 American troops based in Japan under a bilateral security pact, and the residents are sensitive to US base-related problems. Many Okinawans have long complained about pollution, noise and crime. Okinawans also oppose a planned relocation of Futenma Air Base from the current site in a densely populated area in the south to a less populated area on the east coast. Okinawa has had about 150 cases of the coronavirus. In all, Japan has had about 21,000 cases and 1,000 deaths, with Tokyo reporting more than 200 new cases for a third straight day on Saturday. AP

Thailand to begin Covid-19 vaccine human trials in Sept

hailand is starting the clinical stage for its own Covid-19 vaccine after both monkeys and mice generated satisfactory antibodies against the virus following injections, according to scientists in the study. “We hope that the vaccine could generate neutralizing antibodies in humans seen in monkeys and mice,” Kiat Ruxrungtham, head researcher at Chulalongkorn University’s Center of Excellence in Vaccine Research and Development, said at a briefing on Sunday in Bangkok. If the trials are successful, Thailand could have its vaccine by the second half of 2021, he said. The Thai study will begin its human trials as early as September and will be among the first done outside high-income countries. Globally, 160 vaccines are being studied for Covid-19, of which 21 are at the clinical evaluation stage, according to the World Health Organization. Access to life-saving vaccines is a perennial issue in poorer countries. The economic turmoil of the pandemic has raised the stakes, and the worry is that countries will compete for scarce supplies, seeking to protect their own populations. The Oslobased Coalition for Epidemic Preparedness Innovations, WHO and the non-profit vaccine alliance Gavi are among those seeking equitable distribution.

The first stage of Thai clinical trials will enroll about 100 volunteers separated in two groups, one for people aged 18 to 60 and the other for 60- to 80-year-olds, Kiat said. The focus of the first stage, which will take about two months, is on determining the safety and appropriate dosage for human use. The recruitment for volunteers is expected to start in September. The second stage, likely to begin in December, will involve 500 to 1,000 people. The vaccine may get emergency-use authorization from the Food and Drug Administration and skip the third and final stage, which would use more than 10,000 volunteers in countries with an ongoing outbreak, according to Kiat. The Chulalongkorn University vaccine employs new mRNA technology that’s similar to that of a project led by Cambridge, Massachusettsbased Moderna Inc. The technique is cost-effective and ideal for large-scale production. Thailand also has several other Covid-19 vaccine studies underway using a variety of methods. The production of 10,000 doses for the vaccine trials will start next week. Once the trials have completed all stages, Thailand will start output, with the potential to boost supplies for distribution to neighboring nations and other low- or middle-income economies. Bloomberg News

Monday, July 13, 2020 • Editor: Angel R. Calso

Opinion BusinessMirror

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editorial

The Philippine debt situation

T has been pointed out, particularly in the past several months, that in the early 1960s the Philippine economy was second only to Japan in Asia. An article in the South China Morning Post two weeks ago recounted how a “status marker in the post-war Philippines, especially in Manila’s class-conscious, mestizo circles, was to have a black-and-white garbed, PidginEnglish-speaking Chinese maid from Hong Kong.” Equally true was that all this changed during the Marcos presidency. Yet the Philippines is not the only or even the “best” example of a slow but significant deterioration of a thriving economy. In 1902, Argentina was one of the richest economies in the world. By 1916 Great Britain enjoyed the most powerful economy on Earth because of its maritime trade and its vast colonies. However, only Argentina could compete with the United States as the “Second Most Powerful Economy.” The 1916 presidential election brought Hipólito Yrigoyen to office, campaigning that he was “the father of the poor” and for “Fundamental Change.” He instituted mandatory pension insurance and health care and government low-cost housing. During the period known as the “Radical Republic” (1916-1930), with an average annual growth of 8.1 percent, it is still one of the greatest periods of economic growth in the history. Buenos Aires in the 1930s was known as the “Paris of South America.” Increased government spending created employment but bureaucrats are not engines of economic growth. When certain economic sectors start hurting, future votes can be won by increasing government control. That control inevitably leads to extensive “crony capitalism.” After the war, Juan and Eva Perón came to power with two objectives: social justice and taxing the rich—“rich” eventually meaning anyone who feels they can spend their own money better than the government. Taxes to pay for social programs are never enough, so the government borrows more and more. The road to massive economy-destroying government debt is always paved with good intentions. Concerns over the Philippine government borrowing for economic stimulus are important. However, even if this new debt reaches $10 billion, it is well within manageable and acceptable levels, regardless of the scare headlines. Totally incorrect comparisons are being made to other nations with the idea that the only way the Philippines can pay these debts is through “money-printing.” The Philippines does not “print money.” Actually, other nations do not either, but this is what they do: The Bank of Japan has directly purchased corporate bonds and commercial paper worth $188 billion in an economy battered by the coronavirus. The European Central Bank has bought $1 trillion of private and public sector securities and debt. The Bank of Thailand has a $12 billion corporate bond stabilization fund. What our Bangko Sentral ng Pilipinas did in March was to purchase P300 billion ($6 billion) of government—not private sector corporate— debt to fill the Covid-19 shutdown revenue gap. This accounts for 7.3 percent of the budget in 2020 and just about the expected budget deficit for this year. This is not a country comparison. This is an assessment of individual government’s fiscal condition. According to Capital Economics last week, most developed markets—Australia, Canada, France, Germany, Japan, and the US can tolerate higher debt levels. And which two emerging Asian economies are on that list? Vietnam and the Philippines. Since 2005

We need strategies that make sense Atty. Jose Ferdinand M. Rojas II

RISING SUN

ust a few days ago, a journalist came out with a story about how he was questioned by authorities for lifting his mask to drink some water as he was taking a break from biking. He was brought to an area, together with hundreds of other people, to listen to a seminar on the proper way to use a facemask. Stories like this make one shake his head in disbelief because it simply doesn’t make sense. Putting people together in the same area for an extended period of time increases the risk of Covid-19 infection. Global records have shown that cases are often linked to events where people gather in large numbers. In other countries, this is part of the tightest restrictions— no public gathering. What are our officials missing? In Taguig City last Wednesday, at least 327 construction

Thomas M. Orbos

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construction sites? Knowing this, what must our LGUs do? As time passed since the outbreak started, we now know more things about the virus. For example, the conditions that exacerbate its spread: “Being at close quarters for a prolonged period of time, in a large crowd, and taking part in activities that lead people to breathe out forcefully [for example, singing, shouting, and heavy exercise].”

And only recently, the World Health Organization confirmed that the virus is airborne. It means that it can linger in the air for some time, especially in places without ventilation. Knowing these things from medical experts in the field must inform the strategies and campaigns, the policies and rules being implemented by the national and local governments, down to the barangay level. Rules must make sense so people will follow them. Now MIT experts say that the worst is yet to come, and that based on research in 84 countries, 12 cases are unrecorded for every recorded case. Further, the scientists reveal that for every two Covid-19 deaths counted, a third is misattributed to other causes. What are these figures saying? Simple: cases will rise and more people will die in the absence of a medical breakthrough. Without a vaccine, the virus will be around for a while. Knowing these things now, what must our leaders do? What is an intelligent strategy? And what should be our responsibilities as citizens of this nation?

The Philippines as a maritime power hub

BusinessMirror A broader look at today’s business Publisher

workers out of 691 workers in one site have tested positive for Covid-19. This is according to the Taguig City government. Aside from being linked to public gatherings, experience and studies in recent months have shown that infection is high among workers who live in cramped accommodation. “Loud places where workers stand close to one another, often yelling to make themselves hear over the clatter of machinery, [create] ideal conditions for the virus to spread.” Isn’t this the condition in

Now MIT experts say that the worst is yet to come, and that based on research in 84 countries, 12 cases are unrecorded for every recorded case. Further, the scientists reveal that for every two Covid-19 deaths counted, a third is misattributed to other causes. What are these figures saying? Simple: cases will rise and more people will die in the absence of a medical breakthrough. Without a vaccine, the virus will be around for a while.

ff the waters of Manila Bay are now parked several of the biggest cruise ships that ply the various oceans of the world. These ships, including the notorious ones barred from other ports because of Covid-19 infections among its passengers and crew, have found refuge in the Philippines for the very simple reason that most of their crewmen and officers are Filipinos. And this pandemic revelation should not go to waste. Instead, it should lead our policy-makers to position the Philippines as one of the leading hubs of the global maritime industry; not just in terms of human resources but in other aspects, comparable to neighboring Singapore and the North Atlantic European countries. Imagine having the main or regional headquarters of the world’s largest fleets relocate here. World standard marine training and assessment facilities can set up shop or partner with our local maritime schools. Marine sector headhunter offices, marine industry BPOs, as well as ship repair facilities can definitely find a home in the many deep-water harbors in the archipelago. Meanwhile, we can apportion a significant number of our hotel and restaurant courses as well as our entertainment sector dedicated to specialize in maritime cruise hospitality and entertainment. With this, making our countless beaches as part of the regular itinerary of transpacific and regional cruises will not be

far behind. This is not a far-fetched dream as we have the ingredients for this idea to be realized. We are blessed geographically with a ready training ground, being an island country that we are and being blessed with deep harbors, beautiful beaches and situated in the one of the world’s busiest shipping lanes. But equally attractive is our human resources, which will entice the global shipping industry to set up shop here. Filipinos are naturally cut out for such tasks required of merchant marines. Our indomitable spirit to provide better lives for our families that make us endure the long bouts of loneliness, danger and hard work characteristic of ocean-based labor. This, coupled

Indeed, we have the makings of becoming a maritime power hub. Historically, geographically and inherently as a race, we can be one. This will bring jobs and prosperity. It just needs government and public support for it to happen. Then we will see those ships off Manila Bay hopefully again in the future post pandemic world, not as a sight of distress but rather a sign of a long overdue progress of our maritime sector.

with our fluency in English and high rate of literacy, gives us the edge to be the preferred staffing source of the ocean cruise industry. How then can we realize this path? The Department of Transportation, specifically the Maritime Industry Authority, is moving in the right direction in pushing forward with its Maritime Industry Development Plan. This would ensure that the necessary infrastructural support be in place in order to meet international industry standards and attract the investments from the global maritime sector. Fiscal incentives and sector protection in shipbuilding and repair will have to be enhanced and maintained to bring in investor entrants from overseas. Our port facilities nationwide will have to be continuously upgraded to accommodate the large ocean going vessels and make us a regular stop in their seasonal itineraries. Hand in

hand will be the local tourism support that will need to be strengthened through required hospitality and service training of the locality. Here the tourism department as well as Tesda can come in to provide the needed support. With our merchant marines, the timely certification compliance with the International Maritime Organization must be religiously adhered to in order to help elevate our international standing. This sector accounts for more than a fifth of all overseas remittances and its importance cannot be ignored. Also, needing to be strengthened and be resolved is the area of peace and security in our coastal waters. This does not just refer to the disputed waters of the West Philippine Sea but the occasional incidents of piracy that still happen in our southern boundaries. Indeed, we have the makings of becoming a maritime power hub. Historically, geographically and inherently as a race, we can be one. This will bring jobs and prosperity. It just needs government and public support for it to happen. Then we will see those ships off Manila Bay hopefully again in the future post pandemic world, not as a sight of distress but rather a sign of a long overdue progress of our maritime sector. Thomas “Tim” Orbos was formerly with the DOTr and the MMDA. He is an alumnus of the McCourt School of Public Policy of Georgetown University and the MIT Sloan School of Management. He can be reached via e-mail at thomas_orbos@ sloan.mit.edu

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Why gender equality should be at the heart of the Covid-19 recovery

Soldiers’ Lives Matter (SLM) Siegfred Bueno Mison, Esq.

THE PATRIOT

By Gustavo González

lobally, some 650 million women and girls alive today were married as children. Another 33,000 children are forced into marriage every single day. More than 200 million women and girls are affected by female genital mutilation (FGM), with 4 million currently at risk in 2020 alone. And more than 140 million females are considered missing today, as a consequence of gender biased pre- and post-natal sex selection in favor of boys. These alarming figures, just published in the UN Population Fund’s State of World Population report for 2020, should serve as a call to action as we commemorate World Population Day on July 11, with the theme of “Putting the brakes on Covid-19: How to safeguard the health and rights of women and girls now.” Individuals, communities and governments are currently under enormous strain worldwide. Covid-19 is pushing health systems to the brink, forcing travel restrictions and other compelling measures, and producing major social and economic disruptions that threaten to erase progress across the various human development indicators. But for all the challenges, the current crisis also offers a unique opportunity: to reprioritize people—the collective “us”—as we combat the pandemic and chart a better path forward for the post-Covid-19 future. It is now more critical than ever to bolster social protection systems with special focus on society’s most vulnerable. We must advocate strongly on behalf of gender equality, and devote extra attention and resources to the specific needs of women and girls—too often sidelined in crisis response and recovery planning. After all, gender equality in the work force has a proven positive impact on economic growth. Countries that educate women see lower levels of poverty. And gender equality is a primary predictor of peace. Simply put, in societies where women and girls thrive, everyone is better off. The UN Population Fund report, Against my will—Defying the practices that harm women and girls and undermine equality highlights three key practices that undermine progress toward global gender equality: child marriage, FGM, and parents’ and societies’ preference for sons over daughters. All three reinforce negative attitudes about women and girls, and exacerbate gender inequality. According to projections, if the pandemic causes a one- and two-year respective delay in the implementation of programs designed to end child marriage and FGM, it could lead to 7.4 million more child marriages and 2 million more FGM cases occurring over the next decade that would otherwise have been averted. In addition, we know from prior experience that disease outbreaks have differing effects on women and men, heightening the pre-existing underlying gender inequality and discrimination. In crisis contexts including the current Covid-19 pandemic, women and girls suffer higher rates of domestic violence and other forms of abuse. They are forced to take on increased childcare responsibilities and face more interruptions in work since women typically hold more precarious, informal jobs than men. Women and girls also face disruptions in access to sexual and reproductive health services. And with women representing 70 percent of the global health and social services work force, they are more at risk of infection to disease, including Covid-19. According to the report, the Philippines scores higher than the region and world in terms of laws and regulations that guarantee access to sexual and reproductive health care. However, it performs below than both the region and world in certain effective outcomes, including the unmet need for family planning. On child marriage, the Philippines showed a lower rate (17 percent) over the past 15 years of women aged 20-24

GONZÁLEZ who were married or in a union before age 18 as compared to the average for the Asia-Pacific region (26 percent) and the world as a whole (20 percent). Although encouraging in relative terms, this should not be cause for celebration. Child marriage is a root cause and symptom of gender inequality, and must be eradicated completely. The path forward will not be easy. But there are several concrete steps we can take to meet this challenge. First, integrate the needs of female health workers into every aspect of the response. Second, reinforce protections against domestic violence through hotlines, services and law enforcement. Third, incorporate women-focused social protections into bailouts and stimulus packages. Fourth, include women in response and recovery decision-making at the local, municipal and national level. Fifth, seize this opportunity to “unstereotype” gender roles by encouraging equal domestic burden sharing within peoples’ homes. Sixth, collect and unpack data, with a view to really “leaving no one behind,” identifying and zooming into the most vulnerable among the vulnerable population, including internally displaced women, women with disabilities, women living with HIV/AIDS, LGBTQI as well. The UN Country Team in the Philippines is actively supporting the government-led response to Covid-19, and working to ensure the inclusion and protection of women at every step. In partnership with the Department of Health and other government agencies, the UN is helping maintain sexual and reproductive health and family planning services, including the protection of health workers, striving to limit gender-based violence, and safeguarding the centrality of gender concerns in broader ongoing efforts to assist communities across the Philippines recovering from natural disaster and conflict, while promoting the maximum participation of women in the planning and execution of socioeconomic recovery initiatives, for the Philippines to “heal as one” and “build back better.” As we combat the Covid-19 pandemic, we must firmly prioritize gender equality at every step and at every level. Women and girls face unique challenges. But when their rights and futures are protected, the whole of society benefits.

The author is the United Nations Resident and Humanitarian Coordinator in the Philippines.

First of three parts

ith the help of some seasoned Army officers, this series will dwell on the topic of death at the hands of friendly forces, more known as misencounters in military circles. The first part will deal with what constitutes misencounters, the second will deal with why these incidents happen, while the third part will propose suggestions to minimize such unfortunate events. Supported by little or no understanding of what really happens on the ground, opinions from the general public can have greater value only with a better appreciation of how these intelligence and security operations work. As there will always be two versions of any incident, it is always best to sit (as in know the facts first) before standing up (as in voice your opinion). General Felizardo Simoy, who led both intelligence and engineer units in the Army during his 37-year career, puts in this wise—“Knowing the real facts of the case (death of four Army intelligence operatives in Jolo) is the intent of any investigation being conducted. This means that there is a sensitive incident that needs to be studied well for the information of the public later.” Thus, there is a need to understand misencounters in general. Current dictionaries do not define the term misencounter. Misencounter appears to be “mistaken encounter” for short, which generally happens when there is no prior coordination between security units in one area or there is inability to identify or distinguish between friendly and enemy forces during actual combat engagement. Misencounter almost always ends up in the unnecessary death from friendly fire. This is not unique only to Philippine security forces. All over the world, this sad reality is an occupational risk that, however, can be reduced, which will be discussed next week. Misencounter can also be a loose term used to soften the impact of the

sometimes-volatile relationship between army and police forces, when in truth, there was a clear evil intent instead of just excusable negligence. Hence, leaders of security forces, whenever their men are killed by friendly fire, initially report “misencounter,” by default. To report them otherwise may likely provoke retaliation from the other unit. Death from friendly fire is a very touchy subject that evokes a lot of emotions, opinions, and misunderstanding. In my short Army career, I have seen some units retaliate, while others trusted the process of the investigation. Several misencounters in the past had been timely reported, properly investigated and rightly resolved. For instance, as per narration of General Simoy, sometime in 1977 in Danag, Patikul, Sulu, an area previously considered as “no man’s land,” soldiers of an engineer company were directed by the commander not to go out of the perimeter when not in proper uniform and without permission as there were infantry battalions operating around in the same municipality. When two soldiers left camp to gather vegetables for lunch, but in violation of this directive, they were gunned down by elements of another operating unit which came from a just concluded combat operations. As the two soldiers were not in uniform but with their firearms, they were mistakenly strafed by friendly machine gun fire that resulted to their instantaneous death. The investigation concluded

Bloomberg Opinion

he world will not be rid of Covid-19 until we have a safe and effective vaccine available to everyone. We will not recover from the far-reaching economic impact of the pandemic without a new social compact between governments and citizens based on transparent, accountable and trustworthy governance. Every day that the crisis continues, the value of more open government becomes clearer. Getting

medical equipment, and eventually vaccines, to those that need them most poses a major governance challenge. Already, many countries are battling price gouging, collapsing supply chains and even corruption in the procurement of supplies, including personal protective equipment. Out of desperation, governments have contracted with suppliers who have no track record of delivering the equipment they need. Too often those suppliers have failed. The only way to make emergency procurement fast and efficient is to do

that the dead soldiers were clearly at fault. When Tagbina, Surigao del Sur was considered as a “red area” in the 1980s, former Constabulary Highway Patrol Group elements were in pursuit of hold up suspects. As there was no sufficient communication among units at that time, a misencounter resulted to the accidental killing of two CHPG members from another station. Investigation ruled these deaths as unfortunate yet excusable. Dennis Acop (USMA ’83) is another highly decorated officer in the Army and one of the pioneer members of the Special Action Force (SAF). Per his narration, when Dennis was a lieutenant in the early eighties, a section from his unit fatally ambushed two fellow soldiers thinking them to be the enemy in an area declared to be no man’s land by higher headquarters. In another instance, a soldier from his section mistakenly shot a civilian thought to be an NPA combatant during a barangay fiesta celebration. In like manner, these deaths were ruled as unfortunate yet excusable. Some deaths from friendly fire can be justified as excusable like the ones shared by Generals Simoy and Acop, but others are absolutely unnecessary as in the seemingly preventable death of 44 SAF commandos in 2015. Dennis took much offense when his former colleagues in the SAF were massacred in a supposed top-secret mission that went haywire. While this incident does not exactly fall under the definition of misencounter, to Dennis, the “Mamasapano massacre” can be likened to one. In fact, Dennis strongly opines that the highest military and police leadership at that time were indirectly, if not ultimately, responsible for the death of 44 SAF commandos as the operations plan was not transparent at the onset. Perhaps owing to the sensitivity of the operation, the Army was not involved. The massacre, evidenced with a horrifying videoclip of physical mutilation, was obviously not due to friendly fire. But it surely felt like one, as Dennis blames the authorities who put the 44 SAF commandos in harm’s way by their deliberate omission of Army support in the operations plan, which authorities subsequently, “conveniently and cowardly shirked the responsibility of providing them fire

support when they needed it most.” The results of the subsequent investigation on this Mamasapano massacre in 2015 exposes “the callous reality that soldiers’ lives did not matter when they got in the way of political agenda,” according to Dennis. Findings of investigations surrounding death from friendly fire can be as simple as soldiers’ negligence or as complex as command responsibility. The more recent case of the four Army intelligence operatives, who were killed by the police while on a legitimate mission, could not have been a misencounter, as police leadership initially claimed. There had to be a hidden agenda, based on the video footages posted online. With much hopeful reliance to the investigators, I hope the ultimate culprits will be exposed for the sake of the family left behind by these soldiers killed by friendly fire. I pray for brave investigators who will have the courage to report the truth, even if the truth will be against powerful people in the military/police hierarchies. In my younger years, I would have likely taken revenge against those police officers responsible. With much maturity, perhaps due to age and experience, I find peace in the Bible, for it is written in 1 Peter 3:9, “Do not repay evil with evil or insult with insult. On the contrary, repay evil with blessing, because to this you were called so that you may inherit a blessing.” The death of any person from friendly fire will always be surrounded with mystery and suspicion. Knowing the reasons and the liabilities of misencounters are not beyond understanding if we truly trust the process, legally and spiritually.

(To be continued) 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.

A unique collaboration among businesses during Covid-19 Dorelene V. Dimaunahan

DEBIT CREDIT

he common values among businesses these days are selflessness, trust and hope. Although there will be post-pandemic difficulties, the Covid-19 pandemic has strengthened acts of service, networks and relationships among businesses and individuals altogether. The Covid-19 pandemic has undoubtedly created a lot of changes in the workplace. The pandemic has abruptly stopped regular business operations and, sadly, resulted in work stoppage, decline in work hours and other adjustments for the work force. When human lives, jobs and the economy are at stake, the turmoil gets worse. On the other hand, the crisis that we are facing has also strengthened collaboration among business groups and various individuals, resulting in advocacies and organizations that have been visible online. Moreover, this crisis has allowed corporate social

responsibility, true corporate values and founders’ philosophies to rise above mere profits. Differences were set aside because there is only one enemy—the PANDEMIC. Today, business models are changing, with digitization at its peak. Although micro, small and medium enterprises (MSMEs) are struck the most during these troubling times, some of them have found the strength to continue their businesses. A number of businesses decided to pivot or repurpose their operations, whereas there are some that decided to use their assets and focus on serving the public,

To beat Covid-19, governments need to open up By Ngozi Okonjo-Iweala

Monday, July 13, 2020

it in the open by publishing all tenders and all contracts. That’s what Ukraine’s open contracting system aims to do: Civil society groups have monitored the prices of surgical masks over the past several weeks and called attention to potential price gouging. Paraguay and Colombia have taken similar approaches by publishing emergency contracts as open data, which independent groups use to track price differences for Covid-19 supplies. As research toward a vaccine intensifies, the international community’s new Access to Covid-19 Tools Ac-

celerator (ACT) initiative is designed to take a similarly open approach to pursuing diagnostics, therapeutics and treatments. This openness should extend to the emergency budgets that have been established to fund healthcare systems and economic stimulus packages. Even in normal times, finance ministries need to publish their budgets in a way that encourages accountability and citizen engagement. Right now, it is even more important to reassure taxpayers that funds are being spent on the right priorities.

particularly the frontliners. MSMEs have always played an important role in developing the Philippine economy by creating jobs and serving as partners of larger enterprises. During this time, they are playing a bigger role in society. MSMEs also include social enterprises that are now demonstrating their hybrid purpose, by solving social and environmental issues. Some MSME and social enterprise initiatives include: Design and delivery of personal protective equipment and face masks from nanays. Delivery of farm-to-table food from farmers and their communities. Provision of various kinds of logistics services, thereby providing jobs for riders. Development of mobile apps for mental health and budget tracking. Repacking of groceries for delivery to homes. Preparation of ready-to-cook and ready-to-eat meals for take-out or delivery. Manufacturing of disinfectants and cleaning materials for home and personal use. Recently, an upsurge of businesses in industries such as logistics and

food, the latter, particularly focusing on home-cooked meals and agricultural produce, are those that are more prominent these days. These businesses provide essential services with a goal that is not only profit-oriented, but more importantly, to serve their purpose in performing a crucial role in the ecosystem. Yet, regardless of size and nature of entity, businesses are focusing on battling the real enemy, that is, Covid-19. They are not alone because they are supported by business groups that have been using social media to share these initiatives. The moral support from these business groups keeps the flame of MSMEs going. As Charles Darwin once said, “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”

Policymakers should look to South Africa, a world leader on open budgets and audits, where the VulekaMali portal enables easy analysis of budget data. Countries such as Denmark, France, Belgium, Canada and Poland that go the extra mile, including by denying taxpayer-funded support to companies based in tax havens, should also be applauded. Companies receiving funds should not be anonymous or avoid their social obligations. Opening up procurement and budgets can only have the desired effect if citizens and civil society are empowered

to follow the money. Journalists in several countries have already used freedom of information legislation and investigative reporting to shine a light on unfulfilled medical-equipment contracts with dubious, newly formed companies. This is only possible if freedom of speech, civil liberties and civic space are protected. In some countries, Covid-19 is being used as a cover to crack down on civil society and erode democratic freedoms. This is shortsighted and will ultimately further undermine the trust of citizens in their governments, which is critical in times of crisis.

Dorelene Dimaunahan is an entrepreneur, educator of the country’s top universities, a host and an author. She has a PhD in Business at De La Salle University. She is also a Certified Franchise Executive, Certified Management Accountant and a Certified Human Resources Practitioner. This column accepts contributions from the business community. Articles not exceeding 600 words can be e-mailed to boa.secretariat.@ gmail.com.

A8 Monday, July 13, 2020

Solon: ABS-CBN can still file an MR A

SEN IOR l aw m a ker on Sunday said the ABS-CBN Corp., as a private company, can still file a motion for reconsideration for its franchise application before the House Committee on Legislative Franchises. Cagayan de Oro Rep. Rufus Rodriguez, chairman of the House Committee on Constitutional Amendments, said the network can still appeal the panel’s technical working group’s (TWG) findings on issues of its franchise. Citing the findings and recommendation of the TWG, the House Committee on Legislative Franchises last Friday approved the resolution denying the 25year franchise application of the ABS-CBN Corp. The resolution was recommended by two members of a three-person TWG that summarized six key issues taken up in deliberations in a dozen hearings called by the committee on their application to renew their franchise. The third member, Rep. Stella Luz Quimbo, dissented and joined 10 others in voting to grant the network’s franchise application. The TWG opted not to rule on the matter of “biased reporting” or the network ’s alleged meddling in politics, raised by certain lawmakers. The TWG acknowledged that, “The principles of press freedom, fair comment, and self-regulation of media militate against any attempt at such ruling.”

In a TeleRadyo interview Sunday, Rodriguez said “As a private bill, as an applicant to Congress, as a private corporation, then, it has all the right to be able to ask for a motion for reconsideration.” Rodriguez, citing the legislative franchise panel chairman Franz Alvarez, said the committee can consider the appeal of the ABSCBN Corp. The lawmaker said TWG’s recommendation to deny the franchise application was not even unanimous. “One member [Marikina City’s Quimbo] dissented. it’s not even a unanimous decision, so paving the way really for a motion for reconsideration,” he said. “In terms of the possibility in Congress right now, unless you have a motion for reconsideration, there is no more, any other way to have it back to the committee and then go to the plenary,” he said. For his part, Speaker Alan Peter Cayetano defended the decision of the Committee on Legislative Franchises, saying it has conducted a fair, impartial, thorough, and comprehensive hearing on the franchise application of the Lopez-owned ABS-CBN Corp. Also, Cayetano assured the public that the final resolution was not arrived at by the committee without serious consideration as to the overall impact it will have on the nation. Continued on A4

Locsin: SCS ruling not negotiable, a win for the law-abiding

By Recto Mercene

@rectomercene

N the fourth anniversary of the unanimous award by the Permanent Court of Arbitration (PCA) in the South China Sea case, rendered in favor of the Philippines, Foreign Affairs Secretary Teodoro L. Locsin Jr. said on Sunday, “The award is nonnegotiable.”

In a statement, a copy of which was obtained by BusinessMirror, Locsin said: “The Philippines, as a law-abiding, peaceloving and responsible member of the international community, reaffirms on this occasion its adherence to the award and its enforcement without any possibility of compromise or change.” Locsin reiterated that the ruling is “a contribution of great significance and consequence to the peaceful settlement of disputes

in the South China Sea and to the peace and stability of the region at large.” His statement and the anniversary of the landmark ruling come on the heels of renewed tension in the South China Sea, where China conducted from July 1 to 5 naval military drills in the waters of the Paracels archipelago claimed by Vietnam. Locsin had issued an earlier videotaped statement on those drills, saying that while they do not impinge on Philippine territory, any infringement of subsequent Chinese activities would be dealt with the appropriate “response.” The United States last week had its own show of force, sending ships on patrol in the area, sparking warnings from Beijing. Pursued within the framework of the Unclos (United Nations Convention on the Law of the Sea)— universally recognized as the constitution for the world’s oceans— “the arbitration award conclusively settled the issue of historic rights and maritime entitlements in the South China Sea,” the DFA chief said Sunday. Locsin said as a reaffirmation of Unclos, and by laying down an authoritative interpretation of key Unclos provisions, “the award is a milestone in the corpus of inter-

national law, the cornerstone of a rules-based regional and international order.” The Harvard-trained lawyer recalled that the Tribunal authoritatively ruled that China’s claim of historic rights to resources within the sea areas falling within the “nine-dash line” “had no basis in law.” He said the ruling made it clear that, “Claims to historic rights, or other sovereign rights or jurisdiction that exceed the geographic and substantive limits of maritime entitlements under Unclos, are without legal effect.” On maritime entitlements generated by features in the South China Sea, “the Tribunal conclusively ruled that none of the features in the Spratly Islands is capable of generating extended maritime zones and that the Spratly Islands cannot generate maritime zones collectively as a unit,” he added. Locsin said the Tribunal also found that the Philippines could declare certain sea areas part of its exclusive economic zone (EEZ), as these areas do not overlap with any possible entitlement claimed by China. “The Tribunal ruled that certain actions within the Philippines’s EEZ violated the Philippines’s sovereign rights and were thus unlawful; that large-scale reclamation and construction of artificial islands caused severe environmental harm in violation of international conventions; that the large-scale harvesting of endangered marine species damaged the marine ecosystem; and that actions taken since the commencement of the arbitration had aggravated the disputes,” Locsin pointed out. “The arbitral tribunal’s award of July 12, 2016, represents a victory, not just for the Philippines, but for the entire community of consistently law-abiding nations.” Locsin added.

US plans announcement on SCS soon –sources

HE Trump administration plans to make an announcement next week related to escalating tensions in the South China Sea, where Washington and Beijing are vying for military supremacy, according to two people familiar with the matter. The US has raised concerns over China’s decision to conduct military exercises in the contested waters around the Paracel Islands. The Defense Department last week called the actions “unlawful,” and the US plans to lay out its official position next week, said one of the people who spoke on condition of anonymity. The unspecified move comes as President Donald J. Trump has intensified his criticism of Beijing over issues from the coronavirus pandemic to trade. A spokesman for the National Security Council didn’t immediately respond to a request for comment. Stretching from China in the north to Indonesia in the south, the South China Sea encompasses 1.4 million square miles (3.6 million square kilometers). China claims more than 80 percent of the South China Sea and backs up its claim with a 1947 map that shows vague dashes—what became known as the nine-dash line. Vietnam, the Philippines, Brunei, Malaysia and Taiwan claim parts of the same maritime area. Beijing has rejected claims that it’s doing anything out of the ordinary in the South China Sea and has indirectly accused the US of trying to sow discord between China and Southeast Asian nations.

‘Escalated aggression’

MEANWHILE, in Manila, fishermen belonging to the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Sunday held a picket to denounce the alleged escalated territorial aggression of China over the disputed South China Sea (West Philippine Sea). The protest-action was held in time for the fourth anniversary of an international tribunal ruling favoring Philippines’s claim over disputed territory. Continued on A2

Only DOT-accredited tourism enterprises can tap recovery aid By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Tourism Congress of the Philippines (TCP) underscored the importance of primary tourism enterprises, such as travel agencies, to secure accreditation with the Department of Tourism (DOT). In a recent webinar with Rise Up PH, TCP President Jose C. Clemente III said, among the benefits include being able to tap financial assistance aimed at boosting the recovery of the tourism sector. Rise Up PH is a Facebook group where members from the tourism and travel sectors share information and strategies to kickstart the recovery of their sectors. “The financial aid that will be available to the industry [under the ARISE and Bayanihan 2 bills] is meant for accredited tourism enterprises,”he stressed. He explained,“[Accreditation] is like a seal of good housekeeping; it separates those who have met the requirements of good operations [from companies who don’t].” Under Republic Act 6353 (Tourism Act of 2009), “No business permit can be issued by LGUs (local government units) unless you have accreditation,” he pointed out. The Department of the Interior and Local Government issued a memorandum order in February 2019 instructing LGUs

to implement the law in regard to the issuance of business permits to primary tourism enterprises. (See, “5 Manila Bay hotels get notices of violations,” in the BusinessMirror, February 22, 2019.) Rise Up PH noted, however, that a number of LGUs don’t require tourism enterprises to be DOT-accredited before being issued a business permit. “It’s still your choice, accreditation. It just so happens that’s what the law says, you have to get a business permit, [you need DOT accreditation]. If you can live with it [no accreditation], then fine.” Under the P1.3-trillion ARISE bill passed by the House of Representatives, the DOT has been allocated P58 billion for its tourism response and recovery program (TRRP), which will be mainly used for loans for working capital to accredited tourism enterprises. The loans will be coursed through government financial institutions. In the Senate, the Bayanihan 2 bill allocates P10 billion to the DOT for its TRRP. The DOT has eased up on its accreditation guidelines this year, in light of Covid’s impact on the tourism industry. For one, it has temporarily done away with the collection of accreditation fees.

Palawan ‘best island’ again MEANWHILE, the DOT celebrated the

hailing of Palawan as the “Best Island in the World” by the international travel publication, Travel + Leisure. In a news statement, Tourism Secretary Bernadette Romulo Puyat said, “Palawan reclaimed its rightful place in the World’s Best Awards. The citation as the ‘Best Island in the World’ is all the more important because this is voted upon by the readers of the prominent Travel + Leisure [T+L] magazine.” Romulo Puyat was in El Nido recently, checking on the readiness of Palawan for reopening to tourism. (See, “Key destinations in Palawan lose over P3 billion in tourism receipts,” in the BusinessMirror, July 4, 2020.) The province is now a four-time winner of the world’s best island award. T+L’s Sara Clemence said in her profile of Palawan, “Though it’s difficult to reach from many parts of the world, once travelers get there they can dive in World War II wrecks, explore old-growth rain forests, and paddle one of the world’s longest subterranean rivers at Puerto Princesa.” One fan was quoted saying, “The landscape and scenery are just gorgeous. It offers the most beautiful beaches, resorts, and scenery anywhere.” Boracay Island, another popular tourism destination in the Philippines, was ranked No. 14 in T+L’s World Best Island list, and fifth in Asia this year.

www.businessmirror.com.ph

Companies BusinessMirror

Monday, July 13, 2020

SEC greenlights Ayala Land bid to pioneer REITs in PHL

By VG Cabuag

@villygc

he Securities and Exchange Commission (SEC) has approved the initial public offering of the real-estate investment trust (REIT) of Ayala Land Inc., the first company to do so after the REIT Act was passed a decade ago. In its July 9 meeting, the SEC en banc approved the registration statement of AREIT Inc., formerly known as One Dela Rosa Property Development Inc., for 1.09 billion common shares to be listed on the main board of the Philippine Stock Exchange under the trading symbol “AREIT.” The registration statement covers up to 47.86 million new common shares and up to 409.01 million existing common shares for public offering, with an overallotment option of up to 45.68 million secondary shares, at a maximum offer price of P30.05 apiece. AREIT may run the public offering from July 27 to 31 and will debut on the PSE on August 7, based

on the latest timetable. The company could raise P1.3 billion in net proceeds from the primary offer, and P13.3 billion from the secondary offering. Proceeds of which will be used for the expansion of its building portfolio through the acquisition of a fourth building, Teleperformance Cebu, excluding the land, from a subsidiary of the sponsor or an alternative property from the sponsor or any of its subsidiaries or affiliates. As required under the revised implementing rules and regulations of Republic Act 9856, or the REIT Act of 2009, the sponsor shall reinvest the net proceeds in real estate and infrastructure projects in the Philippines within a year.

BPI Capital Corp. was picked as the sole global coordinator for the share sale. It is also the joint bookrunner, together with UBS AG Singapore Branch, PNB Capital and Investment Corp. and SB Capital Investment Corp. Assuming full exercise of the over-allotment option, the public offering would allow the public to own 49 percent of the issued and outstanding common shares of AREIT. Ayala Land will retain a 41.61-percent shareholding in AREIT, while its subsidiary Ayala Land Offices Inc. will own the remaining 9.39 percent upon completion of the public offering. AREIT’s property portfolio consists of three commercial buildings, excluding the land. These are Solaris One and Ayala North Exchange and, as of February 1, McKinley Exchange via lease from the sponsor. Ayala Land President and CEO Bernard Vincent O. Dy said each subsector in the Philippine property sector is bound to see different stages of recovery from the economic fallout caused by the Covid-19 pandemic. Dy noted that Ayala Land’s office and warehouse logistics units continue to operate without significant effects, while others are seeing different results.

Ayala Land said it is seeing “encouraging signs” in its residential business, which recorded increasing sales while the enhanced community quarantine was in effect. “We’re seeing a pick-up in activity in residential sales as early as now. We hope that positive trend will continue,” Dy said. The company’s mall business has been affected due to the implementation of quarantine measures since March, prompting consumers to stay at home. The lockdown measures have also heavily affected the company’s hotel and resorts segment, which Dy said will recover only when people are allowed to travel. Amid these impacts, Dy said that the property industry is still one of the best investment options. He cited the growth of property prices in Ayala Alabang, which started at P230 per square meter in 1978 and has since grown to about P100,000 to P110,000 per square meter today, showing a compounded annual growth rate of 16 percent to 17 percent. “If you look at long-term trends of property, taking into account various economic cycles, I believe property continues to be one of the best, if not the best, performing asset class.”

‘ABS-CBN closure affects small firms’ By Lorenz S. Marasigan @lorenzmarasigan

losing down the broadcast operations of ABS-CBN Corp. does not merely affect the company and its employees per se, but it also has adverse effects on small businesses, suppliers, and even large corporations. Edson C. Guido, the data analyst of ABS-CBN, said the denial of a Congressional franchise to ABS-CBN results in negative effects on the economy, employment, surrounding small businesses, advertising-reliant businesses, and competition. In separate Twitter threads, Guido explained that everyone is affected by the closure of the broadcast operations of the network.

LBC halts operations in Luzon

BC Express Inc., the Araneta family-led courier, announced that it will suspend its cargo services starting Sunday. During this five-day service interruption, all LBC branches will cease accepting cargo shipments, such as parcels and boxes for forwarding to all destinations, the company said. Its service will resume on July 17. Its money remittance and bill payment services will remain available to customers, across all its 1,500 branches nationwide and through its online platform. Affected areas include National Capital Region (NCR), north Luzon, south Luzon for all domestic cargo, and also for the Visayas and Mindanao for domestic cargo to NCR, north and south Luzon. The company said it needed to halt its operations so the company can install all the safety reinforcement to protect everyone from the spread of Covid-19. It said a backlog is being created while the installations are being done. “LBC has been operational all throughout the ECQ and GCQ. Reinforcements, such as three new warehouses, have already recently been opened, to ensure social distancing and other protocols, and facilities are also being equipped with protective shields, disinfection booths, while new online touch-points to provide contactless options are being launched,” the company said in a statement. The company said its income rose to P187.71 million, 24 times higher than last year’s P7.57 million, partly on the provision of lower income taxes for the period. Service revenues were flat at P3.8 billion, from last year's P3.71 billion, mainly from the increase in the revenues if the logistics segment but was offset by lower corporate sales due the disposal of its unit in July last year. VG Cabuag

He said the closure has two effects: direct and indirect. Direct in a sense that ABS-CBN contributes 11,071 to employment and indirect in a sense that it has a so-called multiplier effect. “For instance, Juan, who is an employee of ABS-CBN, eats at a restaurant which employs Maria, who then sends money to the province to help Jose. Multiply that to the number of employees at establishments surrounding ABS-CBN and their spending. That’s the multiplier effect,” Guido said. He added that the closure also has a huge effect on companies and industries that rely heavily on advertising. Noting that ABS-CBN has a huge reach, Guido asked: “How will they reach their consumers?”

“If these companies experience a dampening of their revenues— especially now because of the Covid-19 pandemic—there is a possibility that they will also lay off workers. We should not forget that the economy is interconnected,” Guido said. He also scored critics that say that people still have a choice on which channels they would like to watch. “In economics, there is a principle that states ‘competition promotes efficiency.’ If there is competition, there are a lot of choices. At the same time, competitors will strive to be the number 1. This results in better service and lower costs. Who wins? The Filipino people,” he said. Aside from this, in denying ABS-

CBN of a franchise, Congress effectively removed a first mover in the industry. ABS-CBN is known to be the first network in the Philippines to do live production, color television, opening of studies, international operations, and most recently, the shift to digital. “In an industry, there has to be a first mover—one who experiments and takes risks. If you remove the leader who takes forward steps, the whole industry might deteriorate and everyone will be worse off. Who loses? The Filipino people,” Guido said. ABS-CBN has yet to officially answer the questions sent by the BusinessMirror, with an official saying that the network will make official disclosures to the stock exchange soon.

PAL midyear special promo starts July 13

BusinessMirror file photo

By Recto Mercene @rectomercene

lag carrier Philippines Airlines (PAL) said it will offer special fares to the public via its midyear special promo, which will start on July 13. PAL said travelers can book their flights for travels from August 1 up to May 31, 2021. Seats may be availed for as low as P388 for domestic destinations and $99 for international destinations. Whether flying home to their loved ones, going on essential business travels, or planning for that long overdue vacation, passengers may avail of special fares until July 19. PAL said passengers may book via its website, call their reservation hotline or visit any of its ticketing office or any partner travel agents through the PAL mobile app. To ensure the safety and protection of all passengers, PAL said it is strictly implementing an all-out "Fly Safe" set of new normal safety measures and practices—dubbed “New Normal, Same Heart”—that adopts international health and safety protocols while keeping the signature heartfelt service that the airline is known for. Passengers are encouraged to check in on-line and arrive early at the airport to allocate extra time for new safety procedures. They are also required to wear face masks or facial coverings at all times— at the airport and throughout the flight—and observe physical distance whenever queueing in line or while seated at waiting areas at the airport.

The Philippine flag carrier is one of the first airlines in the world to require cabin crew to wear full personal protective equipment (PPE) while on board the flight. PAL’s cabin crew also undergoes medical evaluation prior to their duty. The airline has modified its inflight meal and snack service, using sealed packaging instead of traditional meal arrangements. PAL also offers a roomy Business Class as well as Onboard Distancing Seat Options in Premium Economy, and a designated zone of the Economy Class cabin for passengers on international flights who wish to have additional comfort and peace of mind when they fly. All PAL aircraft are equipped with advanced cabin air systems that continuously infuse fresh air across the cabin (cabin air is replaced every 2 to 3 minutes), as well as High-Efficiency Particulate Air filters (or HEPA filters) that remove viruses, bacteria and other contaminants with 99.99 percent efficiency. The onboard air creates a controlled and cleaner environment comparable to hospital operating rooms that are safer than most enclosed public spaces. The flag carrier has partially resumed regular commercial flights to various domestic destinations and key international cities in the United States, Asia, Europe, Australia, the Middle East and Canada. PAL has also been operating special missions to repatriate stranded Filipinos and foreign nationals to and from different parts of the world, as well as all-cargo services to transport essential supplies across the Philippines and overseas.

Phoenix offers antibacterial car treatment ‘PNOC-EC to prioritize By Manuel T. Cayon @awimailbox

petroleum exploration’

Mindanao Bureau Chief

avao City—With repeated appeals to observe minimum health protocols as the nation shifts to a new normal way of life, business groups never run out of initiatives and creativity to attract consumers. This time, the country’s leading independent oil producer, Phoenix Petroleum Philippines is offering motorists “free antibacterial car treatment” for clients. In a statement on Friday to announce its promotional campaign to attract more clients, the company said it would render “one complimentary antibacterial car treatment evoucher via the Limitless app where Phoenix is one of the partner merchants”. Those who wanted to avail of the car treatment should spend not less than P1,000 worth of fuel purchase using its recently launched contactless payment option. Eact P1,000 purchase is entitled to one voucher, it said. The complimentary antibacterial vehicle treatment uses a Germanmade car revitalizer machine that helps disinfect the interiors, eradi-

Contributed Photo

cate 99.9 percent of bacteria and viruses, and improve the car’s air conditioning system, the company said. The company said it thought of the campaign “as some members of the community are compelled to go out despite the risks.” “We are finding more ways to adapt to the new normal and assist our customers in going about their day in a safer and more convenient manner,” said Phoenix Petroleum President and COO Henry Fadullon. “With this complimentary antibacterial treatment, we urge our customers to make use of the con-

tactless payment facility in our retail stations as it offers more safety and convenience, and remind everyone to remain cautious.” The promotional treatment would be available only at designated Phoenix stations, all in Luzon, "as the company reinforces its thrust for safer and more convenient drives amid the threat of the Covid-19 pandemic." Earlier, Phoenix launched its contactless payment option in 150 of its retail stations nationwide. This allows customers to pay using Alipay, GCash, GrabPay, and WeChat through QR code scanning during transactions.

hilippine National Oil Co.–Exploration Corp. (PNOC-EC) would prioritize projects that are expected to yield profits, its newly appointed president said. These projects include petroleum exploration and coal power, according to PNOC-EC President Rozzano D. Briguez. PNOC-EC holds four coal-operating contracts (COC): COC 41 (Malangas), COC 122 (Isabela), COC 185 (Buug-Malangas) and COC 186 (Imelda-Malangas). It also trades coal through its coal terminal located in Malangas, Zamboanga Sibugay. The company, which is chaired by Energy Secretary Alfonso G. Cusi, is also engaged in the following petroleum service contracts (SC): SC 37 (Cagayan), SC 57 (Calamian), SC 58 (West Calamian), SC 59 (West Balabac), SC 63 (East Sabina), SC 74 (Northwest Palawan) and SC 75 (Northwest Palawan). More importantly, PNOC EC has a 10-percent stake in the Malampaya deep water-gas-to-power project under SC 38. “PNOC-EC will prioritize projects with higher projected revenue or fastest ROI [return on investment],” Briguez said during the Philippine Energy Independence Council virtual forum held over the weekend. In particular, PNOC-EC will focus on the development and production of mines in COC 41, and the development of the coal mine-mouth power plant project in COC 122. PNOC-EC also said it will continue with its exploration projects in COC 185 and 186, and pursue new exploration COCs thru the DOE’s (Department of Energy) Philippine Conventional Energy Contracting Program.

It will also assess potential for coalbed methane in the COCs. In the future, PNOC’s exploration arm expects to be involved in new oil and gas discoveries that will augment the declining Malampaya reserves. Briguez said these would include a new onshore gas field possibly in SC 37 and new offshore oil and/ or gas fields in West Palawan under existing service contracts: SC 38, SC 57 and SC 59. PNOC EC is also looking forward to the resolution of the maritime disputes between China and the Philippines as this will lead to the resumption of petroleum operations for SC 58, SC 59 and SC 75, which are under force majeure. The dispute, if and when resolved, would also increase government’s income from PNOC-EC’s participation in petroleum operations in the West Philippine Sea. Also, Briguez said this will boost exploration and development of hydrocarbon resources in the vast West Philippine Sea. Still in the coal business, PNOC-EC is looking at production from two underground mines by 2025. Briguez said PNOC-EC’s underground coal mine operations will remain as the largest of its kind in the country. Also, a coal mine-mouth power plant in Isabela Province will be in operation generating at least 50megawatts. “PNOC-EC is looking forward to successful exploration in new petroleum and coal areas. New investments will be expected to come in with new areas to explore and develop,” he said. “PNOC-EC will be the leading energy exploration and production company in the Philippines by 2030.” Lenie Lectura

Companies BusinessMirror

Monday, July 13, 2020

PSE STOCK QUOTATIONS

July 10, 2020

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

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

46 94.7 72.9 20.9 7.71 36.5 8.44 17.48 20.6 47.5 17.06 101 54.2 0.72 20.95 0.46 8.07 0.95 0.265 0.57 162 1650 1.06

46.75 94.9 73.2 21 7.73 36.65 9.22 17.5 20.9 47.85 17.08 101.3 54.25 0.81 21.25 0.56 8.49 0.99 0.285 0.59 165 1740 1.1

43.1 96.5 72.5 20.7 7.78 36.85 9.09 17.48 20.8 47.95 17.08 103.4 53.95 0.72 20.5 0.49 8.15 1.09 0.27 0.59 166.6 1730 1.1

46.75 96.5 73.95 21 7.78 36.9 9.22 17.5 20.95 47.95 17.1 103.4 54.5 0.81 21.4 0.49 8.15 1.09 0.29 0.59 166.6 1730 1.1

43.1 94.7 71.5 20.7 7.63 36.5 8.4 17.4 20.1 47.95 17.04 100.6 53.5 0.72 20.5 0.49 8 0.94 0.265 0.57 162 1730 1.1

46.75 94.7 73.2 21 7.71 36.5 9.22 17.48 20.9 47.95 17.06 101 54.5 0.81 21.25 0.49 8.07 0.99 0.29 0.58 162 1730 1.1

11500 2942250 1571420 61500 514400 4691700 174700 3700 248300 200 70700 1010610 7280 20000 103500 10000 9100 37000 620000 189000 2890 30 30000

528315 279558099 114076981 1281225 3952740 171582440 1583984 64670 5088125 9590 1207402 102242825 391855 14580 2166575 4900 72995 36820 167950 108930 471666 51900 33000

463000 -169429720.5 -626105.5 -193480 1183696 -141901380 1334263 -3514310 -175879.9997 -34189260 -4900 63600 -350480 -

INDUSTRIAL AC ENERGY 2.24 2.25 2.24 2.26 2.22 2.25 1133000 2541720 ALSONS CONS 1.15 1.17 1.16 1.17 1.15 1.15 1050000 1207780 26.7 26.85 27 27.25 26.7 26.85 493200 13249760 ABOITIZ POWER BASIC ENERGY 0.152 0.158 0.158 0.158 0.158 0.158 10000 1580 24.5 24.95 24.5 25.2 24.25 24.95 2248400 55868635 FIRST GEN FIRST PHIL HLDG 64.6 65 64.2 65 64 65 50040 3234561 MERALCO 276 278 270.4 278 270.4 278 418760 114902924 14.04 14.08 13.86 14.1 13.7 14.08 1954300 27317234 MANILA WATER PETRON 3.09 3.1 3.14 3.14 3.08 3.1 1188000 3675330 3.12 3.21 3.12 3.22 3.12 3.22 118000 368560 PETROENERGY PHX PETROLEUM 11.28 11.42 11.44 11.44 11.16 11.42 241200 2739650 PILIPINAS SHELL 18.94 18.96 18.96 18.96 18.5 18.94 233700 4369120 8 8.02 8.03 8.03 7.99 8.02 188500 1509430 SPC POWER AGRINURTURE 7.55 7.61 7.45 7.7 7.45 7.61 113500 858830 2.4 2.42 2.36 2.45 2.36 2.4 568000 1360570 AXELUM BOGO MEDELLIN 76.05 84.75 76.05 76.05 76.05 76.05 100 7605 CNTRL AZUCARERA 11.5 11.98 11.98 11.98 11.98 11.98 200 2396 14.54 14.6 14.62 14.7 14.54 14.54 485600 7076492 CENTURY FOOD DEL MONTE 4.16 4.25 4.18 4.18 4.16 4.16 6000 25040 4.9 4.92 5 5 4.9 4.9 2259000 11125010 DNL INDUS EMPERADOR 8.38 8.39 8.4 8.4 8.17 8.38 2460900 20332655 69.1 69.85 69 70.2 68.8 69.1 266820 18449994.5 SMC FOODANDBEV 0.56 0.58 0.59 0.6 0.56 0.59 593000 334840 ALLIANCE SELECT FRUITAS HLDG 1.27 1.28 1.27 1.28 1.25 1.28 5475000 6950700 31.5 31.55 31.55 31.55 31.5 31.55 54300 1710600 GINEBRA JOLLIBEE 137.5 137.9 139.5 139.5 137.2 137.5 897060 123718555 6.63 6.88 6.6 6.88 6.55 6.88 13700 90381 MACAY HLDG MAXS GROUP 5.39 5.4 5.43 5.5 5.3 5.39 346100 1844065 MG HLDG 0.135 0.143 0.135 0.143 0.135 0.135 730000 98630 6.01 6.1 6.2 6.2 6.01 6.01 1912200 11687338 SHAKEYS PIZZA ROXAS AND CO 1.29 1.3 1.37 1.37 1.29 1.3 4988000 6612440 4.25 4.43 4.35 4.35 4.25 4.25 8000 34420 RFM CORP 1.45 1.53 1.46 1.46 1.42 1.42 19000 27480 ROXAS HLDG SWIFT FOODS 0.107 0.11 0.106 0.107 0.106 0.107 310000 33160 123.3 123.5 124.6 124.6 121.6 123.5 1506550 184977436 UNIV ROBINA VITARICH 0.83 0.84 0.85 0.85 0.82 0.83 2759000 2288190 2.28 2.43 2.45 2.95 2.23 2.43 242000 642550 VICTORIAS CONCRETE A 56.7 64.7 64.75 64.75 64.75 64.75 10 647.5 CONCRETE B 60.05 65 66 66 65 65 590 38530 1.01 1.02 1.03 1.03 1.01 1.01 4422000 4476290 CEMEX HLDG EAGLE CEMENT 9.8 9.85 9.8 9.82 9.79 9.8 3375400 33078848 5.37 5.38 5.55 5.58 5.2 5.37 1032700 5585833 EEI CORP HOLCIM 6.23 6.24 6.25 6.27 6.1 6.24 2290400 14154310 MEGAWIDE 7.34 7.35 7.21 7.4 7.05 7.35 4966800 36383074 8.37 9 9 9 9 9 1000 9000 PHINMA VULCAN INDL 0.82 0.83 0.83 0.83 0.82 0.82 161000 133500 1.83 1.97 1.98 1.98 1.98 1.98 1000 1980 CROWN ASIA EUROMED 1.98 1.99 2 2 1.89 1.98 733000 1428370 MABUHAY VINYL 3.67 3.74 3.75 3.75 3.66 3.74 10000 37090 4.06 4.1 4.05 4.05 4.05 4.05 1000 4050 PRYCE CORP CONCEPCION 19.14 19.96 19.12 19.96 19.12 19.7 635700 12604148 1.82 1.83 1.81 1.84 1.8 1.83 3160000 5732860 GREENERGY INTEGRATED MICR 5.76 5.9 5.8 5.9 5.75 5.9 122500 710620 1 1.03 1.03 1.03 1 1.02 528000 533120 IONICS 4.61 4.89 4.51 5.1 4.51 4.89 95000 466080 PANASONIC SFA SEMICON 1.35 1.37 1.3 1.35 1.28 1.35 2979000 3879710 7.42 7.43 7.72 7.8 7.34 7.43 3942700 29558377 CIRTEK HLDG

51420 -1121270 630660 1829600 -1124027.5 -22351200 -942050 -422230 -1077988 235262 11191 293427 -75600 -210082 -25040 -9859960 -81996 -1601197.5 92640 1430100 -50223596 -266357.0003 66150 1702278 330980 -17400 -32100 -88561859 -45970 185520 -32726276 -122030.9997 -71593 -17249315 -11250 -20434 192220 410639 -20200 -46850 675276

HOLDING & FRIMS ABACORE CAPITAL 0.5 0.51 0.475 0.51 0.47 0.5 40440000 20098100 ASIABEST GROUP 8.38 8.39 8.39 8.39 8.1 8.38 2500 20403 745 746 762 762 740 745 270230 201462420 AYALA CORP ABOITIZ EQUITY 49.2 49.3 49 49.3 48.9 49.3 997300 49078695 6.32 6.33 6.3 6.34 6.2 6.33 5362200 33767868 ALLIANCE GLOBAL AYALA LAND LOG 1.69 1.7 1.7 1.72 1.69 1.69 778000 1321650 ANSCOR 6.1 6.2 6.2 6.2 6.2 6.2 7100 44020 0.53 0.54 0.53 0.54 0.51 0.54 1649000 857650 ATN HLDG A ATN HLDG B 0.54 0.56 0.53 0.56 0.53 0.56 28000 14890 5.26 5.27 5.33 5.34 5.26 5.27 2265600 11961659 COSCO CAPITAL DMCI HLDG 4.08 4.1 4.12 4.19 4.06 4.1 23813000 97436210 FILINVEST DEV 8.5 9 8.5 8.98 8.5 8.5 14700 130990 448 450 448 450 439.4 450 126900 56755450 GT CAPITAL HOUSE OF INV 3.3 3.4 3.3 3.3 3.3 3.3 2000 6600 69.25 69.7 68.2 70 67.2 69.7 3838230 264787889.5 JG SUMMIT KEPPEL HLDG A 5.05 5.74 5.11 5.11 5.11 5.11 3000 15330 LODESTAR 0.76 0.77 0.74 0.79 0.73 0.76 9580000 7291970 2.65 2.66 2.68 2.71 2.65 2.66 575000 1531690 LOPEZ HLDG LT GROUP 8.21 8.35 8.4 8.4 8.13 8.35 1190200 9830034 0.48 0.52 0.52 0.52 0.52 0.52 2000 1040 MABUHAY HLDG METRO PAC INV 3.55 3.58 3.58 3.61 3.5 3.55 21177000 75239610 3.1 3.14 3.05 3.49 2.85 3.14 120000 379900 PACIFICA HLDG PRIME MEDIA 0.8 0.85 0.85 0.85 0.8 0.85 140000 112550 REPUBLIC GLASS 2.61 2.74 2.62 2.62 2.61 2.61 12000 31360 0.99 1 0.99 1 0.99 1 59000 58990 SOLID GROUP SYNERGY GRID 155 167 165 165 155 155 130 20250 928 940 916 940 900 940 337280 311505200 SM INVESTMENTS 101 104 100.5 104 99.5 104 114860 11618089.5 SAN MIGUEL CORP TOP FRONTIER 126.1 130 126.2 130 126.2 130 780 98474 0.14 0.146 0.136 0.148 0.136 0.146 1940000 278860 ZEUS HLDG

-2301150 -50424165 19558150 -25175250 -8500 -1750163 -82450880 -7734830 6600 44729692 -192000 -29290 -2527927 -21090610 32800 -40000 -134879450 1268231 -98474 -

PROPERTY ARTHALAND CORP 0.54 0.55 0.54 0.55 0.54 0.55 113000 61090 AYALA LAND 31.95 32 32 32.85 31.25 32 13986900 448628105 1.43 1.45 1.43 1.46 1.41 1.46 480000 685710 BELLE CORP A BROWN 0.73 0.75 0.76 0.76 0.73 0.73 1456000 1070120 0.76 0.79 0.76 0.76 0.76 0.76 6000 4560 CITYLAND DEVT CROWN EQUITIES 0.117 0.124 0.118 0.123 0.116 0.123 5720000 674690 CEBU HLDG 5.9 6.2 5.61 6.2 5.61 6.2 7200 43190 5.02 5.04 5.07 5.1 5 5.04 2133600 10740091 CEB LANDMASTERS CENTURY PROP 0.37 0.375 0.37 0.375 0.37 0.375 1730000 648100 0.25 0.26 0.26 0.26 0.25 0.25 170000 43500 CYBER BAY DOUBLEDRAGON 17.02 17.1 17.1 17.12 16.98 17.1 271900 4639074 DM WENCESLAO 6.1 6.19 6.24 6.24 6.2 6.2 18200 112960 0.26 0.265 0.265 0.265 0.265 0.265 360000 95400 EMPIRE EAST FILINVEST LAND 0.98 0.99 0.99 1 0.98 0.99 3716000 3672400 0.8 0.82 0.81 0.81 0.8 0.8 154000 124480 GLOBAL ESTATE 8990 HLDG 8.79 9.1 9.12 9.2 8.75 9.1 36700 331106 PHIL INFRADEV 0.82 0.83 0.81 0.83 0.8 0.83 442000 359170 3.11 3.14 3.07 3.14 3.01 3.14 12041000 37125180 MEGAWORLD MRC ALLIED 0.148 0.15 0.15 0.15 0.146 0.148 4100000 605710 0.285 0.31 0.285 0.285 0.285 0.285 50000 14250 PHIL ESTATES PRIMEX CORP 1.36 1.4 1.35 1.4 1.35 1.4 29000 39250 15.92 16.2 16.5 16.5 15.92 15.92 2464300 39624894 ROBINSONS LAND 0.229 0.233 0.229 0.23 0.229 0.23 260000 59680 PHIL REALTY ROCKWELL 1.57 1.64 1.54 1.66 1.54 1.6 163000 265330 2.69 2.72 2.72 2.72 2.72 2.72 1000 2720 SHANG PROP STA LUCIA LAND 1.82 1.89 1.88 1.9 1.86 1.89 50000 94050 31.75 31.9 30.8 32 30.05 31.9 5031900 158199120 SM PRIME HLDG 3.64 3.77 3.77 3.77 3.64 3.64 31000 116070 VISTAMALLS SUNTRUST HOME 1.34 1.35 1.31 1.35 1.28 1.35 2783000 3670050 3.73 3.74 3.72 3.74 3.7 3.74 3250000 12092250 VISTA LAND

-297460350 -520520 7600 1160 -518632 3700 -526143.9997 -679560 -9718900 -28368520 -22104355 -876300 -409480

SERVICES ABS CBN 14.72 14.78 15.2 15.2 14.54 14.78 2204500 32737842 GMA NETWORK 6.01 6.03 5.86 6.05 5.71 6.03 10826300 63673850 0.335 0.35 0.34 0.34 0.34 0.34 10000 3400 MANILA BULLETIN MLA BRDCASTING 11.12 12.88 11.1 11.1 11.1 11.1 2500 27750 2074 2076 2092 2092 2070 2076 44640 92733500 GLOBE TELECOM PLDT 1360 1361 1360 1360 1326 1360 78720 106643900 APOLLO GLOBAL 0.05 0.052 0.052 0.052 0.052 0.052 1170000 60840 3.01 3.02 3.08 3.08 2.95 3.01 32029000 96054470 DITO CME HLDG IMPERIAL 1.62 1.63 1.66 2.05 1.62 1.63 738000 1376210 0.073 0.077 0.074 0.077 0.073 0.077 230000 16970 ISLAND INFO JACKSTONES 1.74 1.78 1.79 1.9 1.74 1.74 389000 700030 NOW CORP 2.23 2.24 2.15 2.28 2.11 2.24 11084000 24613300 0.164 0.166 0.166 0.166 0.163 0.166 2210000 364100 TRANSPACIFIC BR PHILWEB 2.05 2.06 2.06 2.06 2.02 2.05 484000 988350 9.76 9.85 9.66 9.95 9.66 9.76 75700 741056 2GO GROUP CHELSEA 3.51 3.66 3.66 3.66 3.5 3.66 794000 2851470 CEBU AIR 41.15 41.2 42.2 42.4 40 41.15 144400 5898455 98.7 98.75 99.3 99.4 98.05 98.75 674800 66615044.5 INTL CONTAINER LBC EXPRESS 12.6 13.06 13.1 13.1 13.1 13.1 500 6550 0.76 0.79 0.79 0.79 0.79 0.79 1000 790 LORENZO SHIPPNG MACROASIA 6.24 6.28 6.2 6.35 6.1 6.24 4957800 30852312 1.93 1.94 2.06 2.06 1.8 1.93 1198000 2324650 METROALLIANCE A METROALLIANCE B 2.07 2.22 2.09 2.22 2.08 2.22 15000 32640 PAL HLDG 6.12 6.48 6.5 6.6 6.1 6.48 15300 99502 0.82 0.85 0.81 0.86 0.81 0.85 538000 448280 HARBOR STAR ACESITE HOTEL 1.18 1.2 1.2 1.2 1.2 1.2 1000 1200 0.023 0.024 0.024 0.024 0.023 0.024 9300000 218700 BOULEVARD HLDG WATERFRONT 0.375 0.385 0.385 0.385 0.385 0.385 800000 308000 CENTRO ESCOLAR 6.3 6.48 6.3 6.3 6.3 6.3 5100 32130 8 8.78 7.77 7.77 7.77 7.77 500 3885 IPEOPLE STI HLDG 0.295 0.3 0.3 0.3 0.29 0.295 2180000 641850 2.12 2.17 2.1 2.19 2.1 2.17 150000 320820 BERJAYA BLOOMBERRY 7.8 7.85 8.08 8.08 7.66 7.8 6339900 49141070 LEISURE AND RES 1.36 1.37 1.39 1.39 1.36 1.37 774000 1063450 2.25 2.38 2.35 2.35 2.23 2.35 34000 78400 PH RESORTS GRP PREMIUM LEISURE 0.31 0.315 0.32 0.32 0.3 0.315 7190000 2203550 6.94 6.95 7.14 7.14 6.87 6.95 1543000 10755435 ALLHOME METRO RETAIL 1.61 1.62 1.64 1.65 1.6 1.62 1338000 2166860 PUREGOLD 47.75 47.85 46.9 47.9 46.55 47.75 4310200 204543570 62.55 63 64.1 64.15 62.5 62.6 243000 15,291,796( ROBINSONS RTL PHIL SEVEN CORP 125 127.9 124 128.5 124 125 35540 4443425 1.15 1.16 1.16 1.16 1.14 1.16 1317000 1513830 SSI GROUP WILCON DEPOT 16.06 16.34 16.4 16.4 16 16.34 1818500 29242370 APC GROUP 0.305 0.31 0.305 0.31 0.305 0.31 170000 52600 6.59 6.9 6.68 6.68 6.53 6.58 10400 68317 EASYCALL GOLDEN BRIA 280.2 305 295 305 295 305 650 196550 3.2 4.5 4.5 4.5 4.5 4.5 10000 45000 IPM HLDG PAXYS 2.09 2.19 2.09 2.09 2.09 2.09 3000 6270 PRMIERE HORIZON 0.215 0.22 0.2 0.22 0.197 0.22 14250000 3019990 5 5.01 5.05 5.05 5.05 5.05 300 1515 SBS PHIL CORP

-17537590 17197725 -9508410 1770 122150 -65200 193770 -64440 -66540 -27952419 -787114 32130 -15814588 -481100 4700 39900 -4700836 511140 45773280 5,909,063.9996) 18765 -121329.9999 -899388 6100 56450 -6270 -

MINING & OIL ATOK 8.81 8.88 8.8 8.98 8.8 8.81 13300 117503 1.29 1.31 1.32 1.33 1.28 1.31 5330000 6910490 -2313400 APEX MINING ABRA MINING 0.0008 0.0009 0.0009 0.001 0.0009 0.0009 296000000 270200 2.35 2.37 2.39 2.39 2.36 2.37 53000 125600 ATLAS MINING BENGUET A 1.81 1.84 2.06 2.1 1.75 1.84 1076000 2030980 BENGUET B 1.76 1.78 2.14 2.14 1.77 1.79 211000 390380 -8350 0.181 0.19 0.181 0.191 0.181 0.191 620000 117030 COAL ASIA HLDG CENTURY PEAK 2.65 2.69 2.69 2.7 2.64 2.64 305000 817500 7.4 7.46 7.5 7.5 7.4 7.46 35800 265445 DIZON MINES FERRONICKEL 0.99 1 1 1.01 0.98 0.99 6376000 6341250 924860 GEOGRACE 0.233 0.234 0.235 0.235 0.23 0.233 60000 13990 0.104 0.105 0.101 0.106 0.101 0.105 8940000 930210 LEPANTO A LEPANTO B 0.105 0.108 0.102 0.108 0.102 0.108 5330000 559010 -526080 0.0081 0.0082 0.0077 0.0084 0.0077 0.0083 115000000 930000 MANILA MINING A MANILA MINING B 0.0077 0.0082 0.0077 0.0077 0.0077 0.0077 2000000 15400 MARCVENTURES 0.6 0.61 0.63 0.63 0.61 0.61 355000 216630 1.38 1.4 1.35 1.45 1.32 1.38 573000 797230 NIHAO NICKEL ASIA 2.07 2.08 2.04 2.1 2.04 2.07 7317000 15177930 77270 0.54 0.57 0.56 0.58 0.53 0.57 1013000 564920 ORNTL PENINSULA PX MINING 2.76 2.79 2.81 2.81 2.75 2.79 1389000 3,855,430( 1,294,790.0001) 11.88 11.9 12.04 12.08 11.86 11.9 3262800 38865206 -5686250 SEMIRARA MINING 0.0061 0.0064 0.006 0.008 0.0054 0.0064 1344000000 9508300 UNITED PARAGON ACE ENEXOR 6.23 6.26 6.27 6.34 6.25 6.26 136400 853244 15635 0.0087 0.0092 0.0088 0.0088 0.0087 0.0087 8000000 70200 ORNTL PETROL A ORNTL PETROL B 0.0092 0.01 0.0092 0.0092 0.0092 0.0092 100000 920 0.0075 0.0078 0.0078 0.0078 0.0078 0.0078 1000000 7800 PHILODRILL PXP ENERGY 6.6 6.65 7.1 7.1 6.4 6.6 2924100 19574346 97120 PREFFERED HOUSE PREF A 100 100.4 100.5 100.5 100 100 5500 550250 ALCO PREF B 101.2 103.5 103.5 103.5 103.5 103.5 4230 437805 503 507 505 507 505 507 4120 2083180 -81010 AC PREF B2R CPG PREF A 100.1 102 100 100 100 100 22590 2259000 500000 101.3 102 101.2 101.5 101.2 101.3 52880 5357944 1720400 DD PREF FGEN PREF G 106 110 106 110 106 110 110 12060 GTCAP PREF A 1000 1005 1000 1000 1000 1000 515 515000 1000 1019 1019 1019 1000 1000 15330 15392930 GTCAP PREF B PNX PREF 3A 100.1 100.5 100 100 100 100 400 40000 40000 1014 1020 1016 1016 1016 1016 900 914400 PNX PREF 4 PCOR PREF 3A 1049 1050 1050 1050 1049 1049 14570 15298400 -104900 PCOR PREF 3B 1066 1075 1075 1075 1070 1075 550 591000 77.5 78.2 78.2 78.2 78.2 78.2 670 52394 SMC PREF 2C SMC PREF 2D 75 75.55 75 75 75 75 8940 670500 375000 75.3 76.45 75.3 75.3 75.3 75.3 10 753 SMC PREF 2G PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 12.06 13 14.1 14.12 13 13 651000 8861176 -6178440 GMA HLDG PDR 5.4 5.41 5.41 5.48 5.35 5.41 1495600 8097391 541 WARRANTS LR WARRANT 0.66 0.69 0.69 0.69 0.62 0.69 190000 122120 SMALL & MEDIUM ENTERPRISES ALTUS PROP 22.05 22.1 25 25 22 22.1 4235600 97881695 -18260620 ITALPINAS 1.89 1.9 1.97 1.97 1.87 1.9 12567000 24028770 -874500 5.61 5.7 5.75 5.86 5.5 5.7 91900 524976 8265 KEPWEALTH MERRYMART 2.98 2.99 3.07 3.08 2.94 2.99 13177000 39586720 190500 0.57 0.58 0.57 0.58 0.56 0.58 477000 273940 XURPAS EXHANGE TRADE FUNDS FIRST METRO ETF 94 94.9 95.5 95.5 94 94 13140 1240431 135018

www.businessmirror.com.ph

Meralco: Electricity demand in service areas improving

By Lenie Lectura

@llectura

emand in areas where the Manila Electric Co. (Meralco) is assigned to distribute electricity is picking up as government relaxes quarantine restrictions. “Aggregate demand for power has been gradually increasing since the initial implementation of community quarantine,” said Meralco utility economics head Lawrence Fernandez in a text message.

The utility firm, in a virtual press conference, reported over the weekend that power demand rose to its highest level in June since the start of the enhanced community quarantine (ECQ ) last March 16.

“From a peak of only 5,453 megawatts (MW) in April, demand has risen to 6,428MW in May and 7,051 MW in June, both due to warmer weather and increased economic activity. However, this is still lower than the peak of 7,584MW registered in March, right before the imposition of the ECQ,” said Fernandez. Meralco serves Metro Manila, where it is the sole electricity distributor, as well as some nearby provinces, like Bulacan, Cavite, Laguna, Batangas, Rizal, and Quezon. It has over 6 million customers. It announced last Friday that July power rates will go down by P0.0286 per kilowatt hour (kWh),

from last month’s P8.7252 per kWh, to P8.6966 per kWh. This is equivalent to a reduction of around P6 in the total bill of residential customers consuming 200 kWh. This is the lowest rate to be implemented since September 2017, Meralco said. G ener at ion c h a rge, wh ic h makes up bulk of the power rates, decreased by P0.0069 per kWh to P4.3344 per kWh this July. For four straight months, generation charge has been declining because Meralco invoked force majeure (FM) provision in its power supply agreements with power generators due to slow demand brought about by the pandemic.

AC Energy details oil spill action plan A C Energy Philippines has laid down an action plan to address the recent oil spill in Iloilo City amid the criminal complaints filed against the company by the Philippine Coast Guard (PCG). The power firm also said it has yet to receive a copy of the complaints of aquatic pollution against the company and its executives. According to the PCG, evidence points that AC Energy and its executives were negligent over the July 3 incident where around 48,000 liters of oil spilled into waters after AC Energy's Power Barge 102 in Lapuz district's Barrio Obrero exploded. The incident contaminated costal areas of

23 communities in Iloilo City, Dumangas, and Guimaras, as well as a 1-hectare mangrove forest. “With respect to news reports on the filing by the PCG of a criminal complaint against the company and [some] of its officers for alleged violation of Section 107 of Republic Act [RA] 8550 [The Philippine Fisheries Code of 1998] as amended by RA 10654 for aquatic pollution, the company has not received a copy of such complaint and is thus unable to make any specific comment at this time. Even with the filing of this case, however, the company undertakes and commits to continue cooperating in good faith with the PCG and the other government units and agencies to ensure that the

STOCK-MARKET OUTLOOK Last week

Share prices fell last week with the main index returning to 6,100 points after investor's sentiment weighed on the increasing coronavirus cases and the Anti-Terrorism Bill was signed into law despite protests. The benchmark Philippine Stock Exchange index (PSEi) dipped 175.28 points to close at 6,197.38 points. Average value turnover for the week dropped to P5.7 billion as local investors stayed on the sidelines, while foreign investors were again net sellers at P5.68 billion. The main index was down three of the five trading days, but the gains were minimal. Other subindices were mixed but was mostly down. The broader All Shares index fell 65.33 points to close at 3,652.60 points, the Financials index declined 45.82 to 1,221.74, the Industrial index lost 289.19 to 7,661.54, the Holding Firms index shed 36.73 to 6,529.26, the Property index plunged 188.49 to 2,981.19, the Services index gained 3.39 to 1,435.47 and the Mining and Oil index rose 27.22 to 5,334.06. Losers edged gainers 121 to 101 and 26 shares were unchanged. Top gainers for the week were United Paragon Mining Corp., Filipino Fund Inc., Benguet Corp. A, PTFC Redevelopment Corp., GMA Network Inc. and Panasonic Manufacturing Philippines Corp. Top losers were Altus Property Ventures Inc., Jacktstones Inc., Manila Broadcasting Co., Metro Alliance Holdings and Equities Corp A, Milennium Global Holdings Inc. and iPeople Inc.

This week

Share prices are expected to continue its downward trend this week as Covid-19 cases continue to go up, while the franchise denial of broadcast giant ABS-CBN Corp. could weigh on the rest of the market, with the issue of government's power on regulated firms. “The local market is seen to have a downward bias as local coronavirus cases climb at an intensified scale, in turn weighing on the economic recovery investors have earlier hoped for. Week-to-date, our daily additional fresh cases have averaged 1,225, more than double of last week’s average of 532,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said. “Meanwhile, the denial of ABS-CBN’s franchise renewal is seen to raise concerns over political risks which in turn could spill over to the rest of the market especially to the heavily regulated ones." Many investors are also preparing for the release of the first half financial reporting of corporates, which will come in trickles this month, and many are expecting a huge fall as the lockdowns were in effect for the most part of the second quarter. “And while our 2020 contraction forecast of 31 percent year-on-year for the PSEi implies a slight improvement in the second half of 2020, reality in the medium term is that investors will have to confront with the ugly earnings seasons until profit-drivers improve,” broker 2TradeAsia said. The PSEi’s trading range for the week is set between 6,100 to 6,350 points.

Stock picks

Broker Regina Capital Development Corp. recommended to buy the shares of Ayala Land Inc. (ALI) when its support price holds between P29.50 to P32.60 per share. “The stock managed a five-day losing streak that is showing no signs of stopping anytime soon. All indicators are picking up on sell signs which may see ALI settling at its nearest support at P32.60,” the broker said. Ayala Land shares closed at P32 apiece on Friday. It also gave the same recommendation on the stock of SM Prime Holdings Inc. to buy at a support price of between P28.75 and P29.50, as its share price were also on the downfall last week. “Although the stock has managed to maintain its month-long consolidation range, it has broken its week-long support level at P30.70. This brings the next support to P29.50 and chances of the stock hitting that level are relatively high. Should this level be broken, there is another one at P28.75 to catch the fall. Indicators are skewed toward a downward bias,” the broker said. SM Prime shares closed last week at P31.90 per share. VG Cabuag

oil spill clean-up is done properly and completed soon, and that the needs of the affected communities and groups are provided for,” said AC Energy. The power firm has submitted its environmental management plan (EMP) to the DENR-Environmental Management Bureau (EMB), detailing plans to address the environmental impact of the oil spill. Among others, AC Energy said it would carry out the completion of oil spill cleanup and ensure that water quality is restored to safe levels; continue to monitor of air quality and ensuring that air quality is safe before affected families are allowed to return to their homes; properly collect and dispose of oil contaminated materials

mutual funds

and wastes; and implement a rehabilitation plan for the affected mangrove areas and fisheries. “Even with the submission of the EMP to the DENR-EMB, the company will continue to work closely and coordinate with the DENR, as well as with the various government bodies and agencies, including the local governments of Iloilo City and Guimaras, and the PCG, to implement the EMP and to take into account comments and other recommendations from these government units and agencies,” it added. AC Energy has tapped US-based AECOM as third-party consultant to assist the company in the clean-up activities, among others. Lenie Lectura

July 10, 2020

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 202.86 -24.22% -9.6% -5.08% -19.46% ATRAM Alpha Opportunity Fund, Inc. -a 1.0603 -36.18% -13.27% -4.75% -23.28% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.75 -34% -14.08% -7.12% -25.24% Climbs Share Capital Equity Investment Fund Corp. -a 0.6961 -26.86% n.a. n.a. -22.41% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6765 -23.44% n.a. n.a. -20.35% First Metro Save and Learn Equity Fund,Inc. -a 4.3482 -21.51% -8.16% -4.64% -18.39% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.6878 -22.74% -10.65% n.a. -19.42% MBG Equity Investment Fund, Inc. -a 81.08 -34.52% n.a. n.a. -21.53% PAMI Equity Index Fund, Inc. -a 40.8653 -22.94% -7.9% -3.85% -20.31% Philam Strategic Growth Fund, Inc. -a 435.88 -20.92% -7.38% -4.25% -18.19% Philequity Alpha One Fund, Inc. -a,d,5 0.895 n.a. n.a. n.a. -13.12% Philequity Dividend Yield Fund, Inc. -a 1.03 -23.17% -7.74% -3.72% -19.96% Philequity Fund, Inc. -a 30.3183 -22.99% -7.27% -3.41% -20% Philequity MSCI Philippine Index Fund, Inc. -a 0.8025 -24.63% n.a. n.a. -21.18% Philequity PSE Index Fund Inc. -a 4.1624 -22.64% -7.35% -3.16% -20.31% Philippine Stock Index Fund Corp. -a 696.87 -22.44% -7.33% -3.32% -20.09% Soldivo Strategic Growth Fund, Inc. -a 0.6348 -32.69% -11.21% -7.44% -25.44% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.2043 -27.03% -8.89% -4.66% -23.87% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.7995 -22.55% -7.49% -3.33% -20.11% United Fund, Inc. -a 2.902 -23.24% -6.38% -2.99% -20.56% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 93.5493 -22.24% -6.84% -2.49% -20.01% Primarily invested in foreign currency securities ATRAM AsiaPlus Equity Fund, Inc. -b $1.0432 5.37% 2.28% 2.3% 1.44% Sun Life Prosperity World Voyager Fund, Inc. -a $1.4315 8.89% 7.48% n.a. 3.83% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.5718 -10.41% -4.03% -3.2% 0.58% ATRAM Philippine Balanced Fund, Inc. -a 2.0798 -11.25% -4.27% -1.48% -4.64% First Metro Save and Learn Balanced Fund Inc. -a 2.438 -9.15% -2.73% -2.71% -7.35% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1872 n.a. n.a. n.a. -18.07% NCM Mutual Fund of the Phils., Inc. -a 1.8545 -5.09% -0.93% -0.08% -5.53% PAMI Horizon Fund, Inc. -a 3.5247 -6.61% -2.01% -1.22% -6.98% Philam Fund, Inc. -a 15.6733 -7.81% -2.37% -1.43% -7.59% 1.9376 -10.55% -3.45% -1.22% -8.85% Solidaritas Fund, Inc. -a Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.3081 -15.56% -4.42% -2.49% -14.38% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9556 -6.75% n.a. n.a. -5.92% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.8611 -16.06% n.a. n.a. -13.58% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.8365 -18.19% n.a. n.a. -15.78% Sun Life Prosperity Dynamic Fund, Inc. -a 0.8177 -18.64% -5.39% -3.54% -16.12% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.03855 2.75% 2.62% 1.7% 0.84% PAMI Asia Balanced Fund, Inc. -b $1.021 2.88% 1.77% 1.71% -1.63% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.9706 4.97% 5.28% 4.41% 1.53% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.1311 2.06% 2.82% n.a. 0.2% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 366.72 4.6% 3.19% 2.59% 2.49% ATRAM Corporate Bond Fund, Inc. -a 1.9438 2.27% 1.06% -0.04% 2.2% Cocolife Fixed Income Fund, Inc. -a 3.1941 4.66% 5.11% 5.1% 2.5% Ekklesia Mutual Fund Inc. -a 2.304 5.21% 3.1% 2.39% 3.55% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4547 6.08% 3.51% 2.01% 4.05% Philam Bond Fund, Inc. -a 4.6368 10.64% 4.43% 2.68% 6.03% Philam Managed Income Fund, Inc. -a,6 1.301 6.97% 4.19% 2.3% 3.53% Philequity Peso Bond Fund, Inc. -a 3.9758 7.87% 4.5% 2.43% 4.95% Soldivo Bond Fund, Inc. -a 1.0355 10.45% 3.76% 1.87% 7.38% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1788 7.28% 4.88% 2.98% 3.35% Sun Life Prosperity GS Fund, Inc. -a 1.7464 6.18% 4.25% 2.41% 2.66% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $474.57 3.34% 2.55% 2.72% 1.36% ALFM Euro Bond Fund, Inc. -a Є215.61 -1.15% 0.71% 0.99% -1.88% 2.91% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2246 3.32% 2.54% 1.44% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.026 1.17% 1.45% 1.28% 0.78% PAMI Global Bond Fund, Inc -b $1.0719 -1.34% 0.02% 0.15% -2.13% Philam Dollar Bond Fund, Inc. -a $2.4485 4.18% 3.48% 3.06% 1.86% Philequity Dollar Income Fund Inc. -a $0.0606911 2.33% 1.99% 1.86% 0.62% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1867 3.25% 2.37% 2.43% 0.36% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 128.28 3.74% 3.24% 2.44% 1.99% First Metro Save and Learn Money Market Fund, Inc. -a 1.0421 2.61% n.a. n.a. 1.54% Sun Life Prosperity Money Market Fund, Inc. -a 1.2842 3.07% 3.04% 2.59% 1.55% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0455 1.63% n.a. n.a. 0.8% Feeder Funds Primarily invested in Peso securities Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a,d,7 0.9899 n.a. n.a. n.a. -0.99% Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.93 n.a. n.a. n.a. -6.06% 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."

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Banking&Finance BusinessMirror

European Union extends $67.9 million in grant for Mindanao devt projects

he European Union (EU) extended two grants amounting to €60.5 million (about P3.38 billion or US$67.9 million) to the Philippine government to help it build peace and spur economic growth in Mindanao. In a statement, the Department of Finance (DOF) said over the weekend that the Philippine government acquired a 35.5-million euro grant (about P1.98 billion) for the Mindanao Peace and Development Programme (Minpad)-Rise Mindanao on June 26 and a 25-million euro grant (or roughly P1.397 billion) for the Support to Bangsamoro Transition (Subatra) program on July 1. To be implemented by MinDA, the Minpad-Rise Mindanao project aims to “contribute to a peaceful, cohesive, secure and inclusively developed Mindanao” and “improve social cohesion, resiliency of communities, and increased economic opportunities in Mindanao,” according to the International Finance Group of the DOF. Among the expected outputs of the Minpad-Rise Mindanao project is the strengthened capacities of agricultural cooperatives “for better service delivery and creation of an enabling environment for the private sector” and the improvement of community-based socio-economic infrastructure providing basic economic and social services to communities.” With the project’s entire cost amounting to 149.5 million euros (about US$167.56 million or P8.356 billion), it will be co-financed by the EU together with the government of Germany for an indicative amount of €4 million (about US$4.48 million or P223.56 million) and the World Bank, for an indicative amount of US$130 million (€115.99 million or roughly P6.433 billion). On the other hand, the 5-year Subatra program is designed to “contribute to a peaceful, cohesive, secure and inclusively developed Bangsamoro” and “establish an enabling democratic governance

environment for a smooth implementation of the transition in the Bangsamoro Autonomous Region in Muslim Mindanao [Barmm].” It is also expected to boost the capacity of the Bangsamoro executive branch in formulating and implementing transitional policies, and strengthen the Barmm Parliament’s ability to exercise its legislative, oversight and representation functions during the transition. Improving the capacity of Barmm’s multifaceted Bangsamoro Justice System to adjudicate legislation that are aligned with international human rights standards and enhancing the role of civil society in contributing to a peaceful transition in the autonomous region are also among the expected outputs of the program. With EU’s 25 million grant (or roughly P1.397 billion), it is providing 96 percent of the estimated total cost of Subatra amounting to 26 million euros or about P1.46 billion or US$29.2 million while the Agencia Española de Cooperación Internacional para el Desarrollo (Spanish Agency for International Development Cooperation) committed to cover the remaining 1 million euros or P55.89 million. The EU is a major contributor to the Mindanao Trust Fund for Reconstruction and Development, a multi-donor grant facility established in 2005 to consolidate international development assistance for the socio-economic recovery of conflict-affected communities in southern Philippines. The Philippine government welcomed the EU grant as a way “to achieve regional growth and financial inclusion” and will help the Mindanao Development Authority improve infrastructure and create jobs in rural communities. “This EU assistance will certainly help the Duterte administration achieve its goal of just and lasting peace and development in the southern Philippines, and in supporting genuine autonomy in the Bangsamoro region,” the DOF statement read. Bernadette D. Nicolas

Perspectives

The reinvention imperative

he predominantly task-level impact of Artificial Intelligence (AI) means that the reinvention of work will require integrating four vectors of change into a coherent whole that includes: 1) Automation of tasks Such as processes in financial services mortgage approval, insurance industry claims handling, legal services research, healthcare diagnostics, and much more. For example, forms are preloaded with information from existing knowledge and client relationship management systems prior to being sent to clients or manual data and information entry in supply and production line management is gathered through automated invoice scanning. 2) Reconfiguring of tasks To exploit the power of humans and machines working together in a collaborative new environment. For example, reinventing healthcare roles to exploit cognitive augmentation of functions such as nursing, diagnosis, pharmacy, and more or using voice assistants to capture, find and share important information in policing. 3) Reinvention of work structures To establish new tasks and roles using AI—and unlock the potential for innovative new services to emerge as AI and humans work together. This requires reimagining the end-to-end enterprise value chain and operating model. Pre-Covid-19, we already saw life sciences companies establish entirely new business units that focus on prevention and innovative management of chronic conditions. These groundbreaking “health services” propositions can combine wearable technology, AI, social media tools and human intervention to ward off heart ailments, for example, or help diabetes patients

via real-time blood sugar analysis and guidance. It is expected that more investment will be spent on outbreak predictions, epidemiology, and dedicated drug research in light of Covid-19. 4) The need to experiment Is a critical success factor. Why? Because there is no playbook to follow. The future’s required mind-set will emphasize experimentation, agility, and in-the-moment learning—replacing a highly planned and considered approach whose traditional long lead times are likely to be too inflexible in the digital era and New Reality of life with Covid-19. This new perspective will, of course, include the need for change management that delivers buyin and engagement from a workforce facing its own reinvention. For example, an organization decides to stick with 90 percent remote working, using virtual reality to conduct conferences from home or tries new approaches to pushing ahead with technological adoption that had lagged before Covid-19. Automating what is already there is only half the battle. Imagining what should be there is the other half. This four-part reinvention imperative requires crucial new capabilities that will transform the enterprise from an end-to-end, outside-in perspective. Our experience in the deployment of AI reveals the importance of understanding things from a customer or end-user perspective and working back from there.

The excerpt was taken from KPMG article “Reinventing work: A sequel to the Rise of the Humans series.” © 2020 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

Monday, July 13, 2020 B3

Bad loans now nearly 50% of government’s estimate

By Tyrone Jasper C. Piad

@Tyronepiad

anks’ ballooning bad debts are expected as the economy struggles amid the coronavirus pandemic; and these have become more evident when nonperforming loans (NPLs) reached nearly 50 percent of the government’s full-year estimate even before the halfway mark of 2020. According to the latest preliminary data of Bangko Sentral ng Pilipinas (BSP), gross NPLs amounted to P262.68 billion as of end-May, which is 20-percent more than the P218.89 billion notched in the same period last year. This is already 47.19 percent of the estimated amount of bad loans computed by BSP for this year. The Central Bank in May said that the financial system is expected to book P556.6-billion worth of NPLs in 2020 amid the economic downturn. This is equivalent to 5 percent in NPL ratio (the portion of NPL to total loans), which is more than double of what the sector has been dealing with in the recent years. The banking industry might not be able to recover 50 percent to 80 percent, or P278.3 billion to P445.28 billion, of the estimated bad loans, BSP added.

The great lockdown

ING Bank Manila Economist Nicholas Antonio T. Mapa was not surprised with the NPL surge. It was expected because both businesses and households were hit by the financial crisis, he explained. “The great lockdown, spanning

March through to May, helped contribute to the rise in these loans souring,” Mapa said. He explained that the lockdown measures resulted in numerous job losses. This prompted cash flow problems, making it more challenging for borrowers to settle their financial obligations, Mapa said. UnionBank Chief Economist Ruben Carlo O. Asuncion agreed, noting that the current situation weakens the earning capacity of businesses and individuals. Asuncion said he expects April, May and June to be “the months NPLs will be rising because these are the months when the economy is limited and highly restricted.” The slump in business activities was reflected in the country’s “worst” economic data such as imports, exports and manufacturing, among others, in April and May, RCBC Chief Economist Michael L. Ricafort observed. “Thus, this could have led to some pick up in NPL data as many businesses experienced sharp reduction, if not complete stop, in production, operations, and sales, as well as some restrictions on some businesses especially those that are considered

non-essential,” Ricafort said.

Joblessness

Mapa earlier flagged the sharp increase in joblessness amid the lockdown would weigh on the ability of borrowers to pay their debts. According to the Philippine Statistics Authority, at least 5 million Filipinos lost their jobs in April after the Duterte administration placed key economic centers under lockdown beginning March 17. The number translates to 17.7-percent growth in unemployment year-on-year. The ING economist said unemployment would still be a concern, noting that even the country’s biggest companies were laying off employees. Several aviation firms including Cebu Pacific, Philippine Airlines and AirAsia Philippines reported they were having mass layoffs. The Aboitiz Group was also on the same track. However, Ricafort remains optimistic that the unemployment rate may slow down after the lockdown began easing mid-May. This allowed more business and individuals to resume work, which could lift jobs data, he said. “The worst in the unemployment data may have already been seen at the full month of the lockdown in April 2020,” he added. While unemployment rate could still be in double digits in succeeding months, Asuncion said that it could be better than the April figure as the economy gradually reopens.

Continue its restart

Asuncion said that further increase of NPLS is highly likely in the second half. The government’s efforts to contain the spread of Covid-19 infection will affect how the economy moves forward, he said, noting this could dictate how the borrowers’ cash flow would fare in order to pay off their debts.

“It would depend on the ability of the government to contain the virus, at this point,” Asuncion said. “Virus infections that are continually rising pose a big hindrance for the economy to continue its restart, and a sluggish reopening would not bode well for individuals and firms trying to get back to work and earn accordingly.” Mapa agreed that bad loans would continue to rise, considering the anticipated steep economic decline in the second and third quarter. Gross domestic products contracted by 0.2 percent in the first quarter. Ricafort, meanwhile, said that the relief measures provided by regulators—including trimming of policy rates and credit guarantees—would help cushion the impact of the economic slump to the banking system’s loan portfolio.

Potential losses

S&P Global Ratings forecast shows that banks across the world will incur credit losses amounting to $2.1 trillion for 2020 and 2021 due to the economic slowdown amid the pandemic. Of this amount, $1.3 trillion is expected to be booked this year, which is more than double the 2019 level, S&P Credit Analyst Osman Sattar said. Majority or 60 percent of the potential losses in loans portfolio is seen to arise from the Asia-Pacific. “The duration and severity of the global downturn and the strength of the recovery will shape bank asset quality, and key drivers and differentiators will be effective fiscal support from governments to their economies, as well as banks’ forbearance measures and financial reporting transparency,” S&P said. The debt watcher said it was expecting a robust recovery for the economy in 2021, anticipating that losses will dwindle to a “manageable” level.

Treasuries rally reflects visions of a rockier path to recovery

he grim tallies of new coronavirus cases have given investors a glimpse of a bleaker world in the second half of the year, and a reminder of the haven appeal of government bonds. Investors rushed into the safest assets as news on the pandemic worsened during the past week. The fiercest moves have dissipated, but not before long-dated yields in the US had touched multi-month lows, crushing the curve flatter. The five-year rate fell to a new record below 0.26 percent, as did both the two- and five-year maturities in the UK. Treasuries have remained well bid in recent weeks even as stocks have climbed. Bond investors have kept their focus on the path of the pandemic, with fatalities climbing to new highs in Florida, Texas and California, and countries including Italy and Australia reinstating travel restrictions. That defensive bias was most evident Thursday, when investors piled into the Treasury’s 30-year auction, seizing an opportunity to add duration. “The market is finally reacting to the growing infections,” said Priya Misra, head of global rates strategy at TD Securities. “That’s why rates are falling, led by the long end,” she said. “It’s the only hedge if risk assets are vulnerable.” US stocks extended their gains heading into a week of earnings reports from “which should at

Medical professionals are at the forefront of a battle against the Covid-19 infection the number of which has been rising in the United States. Amid the bleak view on the virus’s economic impact, investors continue to be lured to government bonds. Bloomberg News

least show healthy trading revenues” on optimism about the prospects for an effective treatment for Covid-19 patients. But until the market has more clarity on these points, the latest setbacks in the economic reopening and blow to confidence may overshadow any better-than-expected data. The 10-year Treasury yield on Friday fell as low as 0.57 percent, a level unseen since late April, before rebounding to end the week around 0.64 percent. The 30-year rate, meanwhile, plunged as

low as 1.24 percent at one point, close to 20 basis points below where it began the week. The yield curve between 5- and 30-year securities dipped below 100 basis points before rebounding slightly, though it’s still close its flattest level since May. Next week’s US economic calendar is heavy with inflation data, which are unlikely to do much to inspire morale. The data are predicted to show consumer prices rose 0.5 percent in the month of June and while that’s a sizeable jump, it’s coming from the bottom of a pretty deep hole. “There’s not an economist in the Fed or Street that thinks that this is an inflationary event,” said Subadra Rajappa, head of US rates strategy at Societe Generale. She says the recent rise in market expectations for inflation, reflected in breakeven rates, is premature and understating the continued challenges to the recovery. She sees a risk of a reversal if Tuesday’s consumer prices number is lower than forecast. That’s a worrying prospect for investors who’ve piled into inflation-linked markets on the basis of a stronger-than-expected recovery, and chasing last quarter’s record-beating outperformance. “Any time you see inflows into TIPS like this, it tends to be mostly from speculators,” Rajappa said. “If one leaves the rest will panic and follow.” Bloomberg News

Theory on banker’s bonuses upended by Harvard expert

Swedish bank may be about to change perceptions of how bonuses affect performance. Dennis Campbell, a Harvard Business School professor, has been studying how companies design compensation strategies. His work led him to the biggest bank in Sweden, Svenska Handelsbanken AB, which he says uses a model that raises serious questions about how well bonuses drive results. Handelsbanken caught Campbell’s attention about five years ago. Since then, he’s written two case studies on the Stockholm-based lender, and his conclusions challenge the conventional wisdom.

Campbell says staff at Handelsbanken were highly motivated despite the absence of bonuses for all but a tiny group. What struck him was 1) how flat Handelsbanken’s corporate hierarchy is, and 2) how important branch managers are. “Handelsbanken just stood out as a really interesting example because they have really unusual levels of empowerment,” Campbell said in an interview via Zoom. What’s more, he says the Swedish bank has “had these really unusual performance outcomes that normally don’t go along with that level of decentralization.” Banker bonuses have become an increasingly thorny subject since the global

financial meltdown of 2008. More recently, governments and regulators have put pressure on the industry to show restraint on pay and instead use surplus cash for loans to businesses hit by the Covid-19 crisis. Many banks have complained that such restrictions make it hard to attract the right talent. But the link between bonuses and performance is hard to prove. Campbell says Handelsbanken stood out in part because of its ability to keep impairments low. He attributes that in no small measure to a broad network of branches at which local staff know their clients better than most in the industry. (Coincidentally, Handelsbanken

has placed less emphasis on automating a lot of client-facing services than some of its peers.) “We would normally think that the level of decentralization that they have... would lead to things like higher loan losses, would lead to less efficiencies in their cost structure,” Campbell said. “Yet here’s this bank that has operated this way since the 1970s and has had higher returns on equity than its peers, not just on average over those years but literally every single year, going back that far, and has also had a fraction of the loan losses of their competitors in any given year, including in years where there were major economic crises.” Bloomberg News

Monday, July 13, 2020

Style

BusinessMirror

How fashion schools are responding to the Covid-19 pandemic

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Todayâ&#x20AC;&#x2122;s Horoscope By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Ken Jeong, 51; Cheech Marin, 74; Harrison Ford, 78; Patrick Stewart, 80. HAPPY BIRTHDAY: Look for opportunities this year, and you will find something that truly interests you. A business partnership looks promising as long as you donâ&#x20AC;&#x2122;t have an emotional connection. Put long-term plans in place, and subtle changes that will help you construct what you hope to achieve will manifest. Take your health seriously. Your numbers are 8, 15, 21, 26, 28, 32, 48.

ARIES (March 21-April 19): Youâ&#x20AC;&#x2122;ll be hyped up and ready to make a move. Before you leap into action, consider who might pose a problem, and make a point to take an alternate route to avoid a clash that will slow you down. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

CLOCKWISE: Lesley Mobo of the Mint School of Fashion, Jesus Lloren at FAB Creatives Manila, Shanon Pamaong with Venus Raj and Jehza Huelar at Fashion Institute of the Philippines

TAURUS (April 20-May 20): Keep your plans a secret until you have everything in place. If you present your ideas prematurely, someone is likely to take advantage of you or utilize the information you divulge to his or her benefit. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

GEMINI (May 21-June 20): Youâ&#x20AC;&#x2122;ll do far better if you use charm, expertise and honesty than you will by being argumentative or aggressive. Know what and who you are up against; prepare to outsmart. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

ITH the education directives in the country as confusing as its Covid-19 policies, fashion designers and the fashion schools they are steering are resorting to creative ways to respond to the pandemic. For safety measures, physical classes will be postponed or reset to online forums while other parameters are still under review. â&#x2013; SHANON PAMAONG AND THE FASHION INSTITUTE OF THE PHILIPPINES. â&#x20AC;&#x153;Just like any other business and schools, fashion schools like FIP are greatly affected by the pandemic. We teach hands-on courses where we instructors show procedures step by step, then the students actually execute what is being taught and immediately checked and corrected by the instructor if needed,â&#x20AC;? Pamaong explained. â&#x20AC;&#x153;So virtual or online instructions will not work for us and the students. A module is long, requiring a day of instruction/learning process and it is tiring and boring to be in front of your computers that long. Dividing the module into mini modules will take the teaching/learning process forever. We have no alternative but to wait for the government to give us the go-signal to reopen,â&#x20AC;? said Pamaong, who studied fashion courses at the George Brown College in Toronto, Canada, and apprenticed in Paris at fashion manufacturing and fashion houses. At FIPâ&#x20AC;&#x2122;s campuses in Ortigas, Makati, Santa Rosa, Subic and Cebu, his prominent faculty members are Patrick Lazol, Wilbur Lang (Bobson Japan awardee), Bon Hansen (Bench Design awardee), Jojo Lopez, Hazel Ycasiano, Yssa Innumerable, Jeremiah Oribe, Ge-c Macaraig, Mark Neto Diaz for fashion photography, and Francis Chee and Vhee Co for fashion styling. â&#x20AC;&#x153;Even during the pandemic, we are getting advance enrollments from interested students hoping classes to start soon to end their quarantine boredom. In short, we are very confident that our business will be able to bounce back, unlike restaurants or stores which practically lost income from their March-June customers,â&#x20AC;? he said. â&#x20AC;&#x153;In our case, our hope is that those who were not able to take courses with us from March to June will be there to join us during the new normal. Our very challenge is to get good rental arrangements with our landlords when classes return.â&#x20AC;? â&#x2013; LESLEY MOBO AND THE MINT SCHOOL OF FASHION. Lesley Mobo graduated with a First Class B.A. Honours Degree in Fashion at Central Saint Martins London in 2002 with a Colin Barnes Award for

CANCER (June 21-July 22): Keep your emotions under control when dealing with matters that can affect your reputation or your position. Thinking things through without letting your emotions get involved will be crucial if you want to achieve what you set out to do. â&#x2DC;&#x2026;â&#x2DC;&#x2026;

LEO (July 23-Aug. 22): Be a leader, not a follower. Decide what excites you most, and take flight. Being true to yourself will bring you in contact with people who share your sentiments and pleasures. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

VIRGO (Aug. 23-Sept. 22): Aggressive pursuits will pay off. Donâ&#x20AC;&#x2122;t waste time arguing when taking action will lead to the prize. Set goals, include those who bring out the best in you and find a way to get what you want. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

LIBRA (Sept. 23-Oct. 22): Concentrate on whatâ&#x20AC;&#x2122;s important to you. Look inward, and delve into something that will feed your imagination and enlighten your mind. Personal and physical improvement will require time, energy and hard work. Strive to be your best. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

fashion illustration. Armed with a stellar rĂŠsumĂŠ, Mobo pitched his idea of a four-year fashion program to the Meridian International Business, Arts and Technology College, in McKinley Hill, Taguig City. â&#x20AC;&#x153;Mint is already doing a great job with their other colleges that teach film, music and theater. The Mint fashion school is what we have created together, [with the purpose of having] something like a Council of Fashion Designers of America/Vogue Fashion Fund, or the British Fashion Councilâ&#x20AC;&#x2122;s Newgen initiative,â&#x20AC;? Mobo told me previously. But as the pandemic shows no signs of abating, Mobo said: â&#x20AC;&#x153;Right now, everything is still a work in progress but definitely [shifting to] online/distant learning classes. A lot of stuff are all still in discussion including what parameters [to adapt]. But it seems everything is heading toward online.â&#x20AC;? â&#x2013; JESUS â&#x20AC;&#x153;JOJIEâ&#x20AC;? LLOREN AND THE FAB (FASHION + ART + BUSINESS) CREATIVES MANILA. â&#x20AC;&#x153;It was studying Clothing Technology at the University of the Philippines that gave me the foundation that enabled me to embark on a fashion career. Ecole de Chambre Syndicale de la Couture Parisienne broadened it further. Christian Espiritu, who I regard as my

mentor, polished my aesthetics and opened my eyes to the real world of the fashion business,â&#x20AC;? Lloren said of his fashion education. With this remarkable background, he opened FAB with his friend Pidge Reyes and enlisted his peers as teachers. But Covid-19 reared its ugly head. â&#x20AC;&#x153;The pandemic has put to a halt operations of most businesses, FAB included. We still have to think of monthly expenses like rent, utilities, salaries, etc., with no income coming in. Initially, we dreaded that students will shift to other courses because of fashion being classified as a nonessential. But, as history would tell us, fashion has always survived crises,â&#x20AC;? Lloren said. FAB is preparing ways to adapt to the new normal. â&#x20AC;&#x153;We restudied our business plan and explored other platforms of teaching. Of course, we are adapting to government policies in terms of setup and safety. To lower operating cost, the moving of our schoolâ&#x20AC;&#x2122;s physical space was decided on,â&#x20AC;? he shared. â&#x20AC;&#x153;We have started an online workshop and will be offering more that can be effectively taught in this platform. We redesigned the syllabi to be relevant to the times.â&#x20AC;? â&#x2013;

SCORPIO (Oct. 23-Nov. 21): Youâ&#x20AC;&#x2122;ll pick up valuable information if you talk to experts or people with more life experience. Look for alternative ways to visit a place and learn something new without putting yourself in harmâ&#x20AC;&#x2122;s way. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

SAGITTARIUS (Nov. 22-Dec. 21): Have your plans ready. The less time you spend with someone who encourages indulgent behavior or meddling and the more time spent with someone who brings out the best in you, the better. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

CAPRICORN (Dec. 22-Jan. 19): Home is where the heart is, and itâ&#x20AC;&#x2122;s up to you to make it your safe place. Indulge in family projects, improving your space or spending quality time with someone you love. Appreciate what you have, and let your anger dissipate. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;

AQUARIUS (Jan. 20-Feb. 18): Make a change only if itâ&#x20AC;&#x2122;s right for you. Refuse to let someone railroad you into something you donâ&#x20AC;&#x2122;t want. Focus on what you enjoy doing most, and use your skills to harness a more productive lifestyle. Romance is favored. â&#x2DC;&#x2026;â&#x2DC;&#x2026;

PISCES (Feb. 19-March 20): Donâ&#x20AC;&#x2122;t rely on someone to do things for you. Change begins with you, so donâ&#x20AC;&#x2122;t let anyone interfere with your plans. Set up a routine geared to achieving better health and emotional well-being. â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026;â&#x2DC;&#x2026; BIRTHDAY BABY: You are aggressive, sensitive and ambitious. You are creative and affectionate.

â&#x20AC;&#x2DC;Window shoppingâ&#x20AC;&#x2122; on Instagram IN the past few weeks, my Instagram timeline has been filled with temptation. Of course, I would not succumb because I have so much makeup products, but that doesnâ&#x20AC;&#x2122;t mean Iâ&#x20AC;&#x2122;m not tempted. Itâ&#x20AC;&#x2122;s like window shopping without pressure and that, to me, is the best thing. So this beauty account on Instagram (itâ&#x20AC;&#x2122;s called @hmsist) run by some friendsÂ posted this Clio Professional eyeshadow palette and my other friends bought it, but Iâ&#x20AC;&#x2122;m staying strong and looking the other way. The Pro Eye Palette in Coral Talk seems like the perfect neutral palette and it costs less than P2,000. You could get it for even less than that on Shopee. I like the palette because it includes a mix of matte, satin and glittery eyeshadows. I actually would go for the one in Street Brick but it kind of looks like my Anastasia Beverly Hills Modern Renaissance palette, so no...or is it not yet? One other thing Iâ&#x20AC;&#x2122;ve been eyeing on Instagram is the Charlotte Tilbury Pillow Talk Lip & Cheek Glow, which fans of the Korean brand 3CE say looks like the Take A Layer Multi Pot. I havenâ&#x20AC;&#x2122;t tried the 3CE pot and I donâ&#x20AC;&#x2122;t have the Charlotte Tilbury one so I canâ&#x20AC;&#x2122;t compare. Knowing Charlotte Tilbury though, Iâ&#x20AC;&#x2122;m sure hers is more subtle and glowy.Â Back to Charlotte Tilbury: the brand released two palettes, one a rosebud-pink and the other a berry-

pink. I want the latter one even if I donâ&#x20AC;&#x2122;t need it. I am not getting it, though, because I have lots of cheek products, among other things. Because of makeup artist Kristel Yap (one of the girls behind @hmsist), I am also interested in the Banila Co Hello Sunny Essence Stick in Glow. It is, based on its name, a sunscreen thatâ&#x20AC;&#x2122;s glowy. I am sad that I am the type of person who will be attracted by a product because of the word â&#x20AC;&#x153;glowâ&#x20AC;? but I guess thatâ&#x20AC;&#x2122;s why these beauty companies do this. So Iâ&#x20AC;&#x2122;ve been following this girl named Yuri (@dewiestglow), who has the loveliest and, yes, dewiest skin. Yuri is a big fan of the brand Krave Beauty. Her favorite products are Great Barrier Relief and The Beet Shield. Krave Beauty was founded by influencer Liah Yoo.Â The brandâ&#x20AC;&#x2122;s slogan is #PressReset: â&#x20AC;&#x153;the action of taking a step back to listen to your skinâ&#x20AC;&#x2122;s true needs and feed it what it craves.â&#x20AC;? Aside from Great Barrier Relief and The Beet Shield, I am most interested in Kale-Lalu-yAHA, a chemical exfoliator, and the Oat So Simple Water Cream. Thanks to @seoulfindsmnl on Instagram, I have been liking the look of Stimmung lipsticks in small plastic pouches. The brand is being marketed as fast beauty (just like fast fashion). Ten of these pouches can be bought for the price of one regular lipstick. These pouches are almost always sold out and the brandâ&#x20AC;&#x2122;s

customer base is composed off mostly young people. Each pouch, by the way, lasts for a week if you use it every day. For someone like me, this is ideal because I like to try products and then move on.Â I also spotted the Abbamart x Spongebob collaboration at @seoulfindsmnlâ&#x20AC;&#x2122;s page. Abbamart is described as a â&#x20AC;&#x153;beauty playgroundâ&#x20AC;? that started as a maker of makeup brushes. Anyway, the brandâ&#x20AC;&#x2122;s collaboration with the Spongebob Squarepants brand includes makeup brushes and sponges. They look well made and are inexpensive. If youâ&#x20AC;&#x2122;re on Instagram and you follow beauty accounts, youâ&#x20AC;&#x2122;ve probably seen Benefit Cosmetics new California Kissinâ&#x20AC;&#x2122; Colorbalm, a lip balm-lipstick hybrid that promises to keep lips moisturized for eight hours. I received a PR kit from the brand containing four of the 12 colorsâ&#x20AC;&#x201D;Nude Pink, Berry, Ruby and Spiced Red. The Colorbalms are priced at P1,390 each. They are very popular because the face of the line in Korea is actress Kim Da-mi. Spiced Red is the color thatâ&#x20AC;&#x2122;s most popular because of her. Iâ&#x20AC;&#x2122;ve been wearing the lipstick for several days and will do a proper review soon. Window shopping on Instagram is the next best thing to shopping. Right now, it seems like a waste to buy clothes and makeup because where would you wear them, right? But you can always look and dream of the day we all go out again.

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Monday, July 13, 2020 b5 B5 Monday, July 13, 2020

How to make furloughs more humane By Sandra J. Sucher and Shalene Gupta

ly—weekly or even daily—and always at the same time of the day, so employees know they are still valued. If employees aren’t allowed to use company email during their furlough, make sure you’re reaching them at an alternate email address or by posting on an accessible webpage. Companies should also create a process for employees to communicate questions and concerns and receive answers from someone with authority and knowledge. Managers should continue to monitor the furloughs to ensure they spread the pain as fairly as possible. In 2009, Badger Mining Corporation, a Wisconsin-based industrial silica sand manufacturer, allowed employees to choose their furlough days so they could schedule around child care and other plans.

Harvard Management Update

urloughs are often a much better alternative to layoffs for both companies and employees. However, until the Covid-19 pandemic, they had been infrequently used in the United States. During the Great Recession only 0.5 percent of the US work force participated in furloughs, while 1 in 5 workers experienced a layoff.

Before implementing furloughs

The first step is making sure that furloughs are the right decision. Furloughs are best used as a worker-retention strategy in the face of temporary financial difficulties (like recessions and pandemics). However, if your company is dealing with permanent changes, such as a decreased demand due to advancing technology or the adoption of new strategies that require employees with entirely different skills, a furlough will only delay the inevitable layoff. Second, managers need to carefully consider the types of employees that will receive furloughs.

Part-time, temporary or contract employees may not be eligible for unemployment benefits while on furlough, and the administrative costs of furloughing them may outweigh any potential savings. The risk of losing star talent or the cost of having employees with specialized knowledge stop working should also be considered carefully. When Honeywell International implemented furloughs during the Great Recession, for example, it exempted engineers on high-priority new product development projects and employees that deal directly with customers. Third, furloughs come with administrative costs that vary depending on the local laws. Some governments require that com panies contribute to a worker’s pay, although the US does not. Most employers will pay health insurance, but insurance plans usually place limits on how long furloughs can last. Employers will need to do their homework on the legal requirements—an administrative cost in and of itself. Fourth, managers should evaluate the perceived fairness of the furlough. Layoffs often target underperforming employees, while furloughs can affect a greater proportion of the work force, which may strike some employees as unfair. To alleviate this, managers should consider spreading the pain, by rotating departments or divisions so employees are not forgoing their paychecks for several weeks at a time, imposing an overall reduction of hours across the board or using other cost-savings measures such as salary cuts for senior leaders. Finally, employers should provide as much advance notice as possible. Research has shown that employees are most likely to trust

After the furlough

Holohololand | Dreamstime.com

Today, in the most uncertain time any of us have ever known, many companies are turning to furloughs, creating a road to return when there is once again work to do. Furloughs enable companies to reduce staffing costs while sidestepping layoffs. Furloughed employees either work reduced hours or, as is more common now, are put on a work leave that can last as long as the company needs. Most furloughed employees receive no pay from the company, but companies generally continue covering health insurance. Employees can draw unemployment benefits during their furlough and can normally work for other companies. The major benefit of furloughs to employees is that workers have a job to return to, while companies don’t have to go through the painful and expensive process of rehiring and training new talent and losing someone they’ve spent years cultivating. Despite the obvious benefits, questions about implementation abound. Here are some important points managers should keep in mind when considering furloughs.

their managers when they exercise information fairness. This involves communicating about what you intend to do, why you have chosen that strategy and how employees will be affected. After the general communication, managers should make themselves available to employees and give them the chance to raise concerns and questions.

During the furlough

While employees don’t work during a furlough, that doesn’t mean

they stop existing. Managers should be actively thinking about how to have a “good” furlough: one that is fair and boosts morale as much as possible. First, if employees are not getting paid, there should be absolutely no pressure for them to do work. When Fermilab used furloughs in 2007, the director left his monthly column in the company newsletter blank in order to drive this message home. Second, a frequent and transparent communication strategy is the

key for boosting morale. Early and frequent communication is essential, even if a company doesn’t have all the answers. It’s more reassuring to hear that leaders don’t have an answer but do have the issue top of mind, then it is to hear obfuscation or, worse, nothing at all. To this point, companies should appoint a single, trusted source—preferably someone in a position of authority— to communicate about the pandemic and the company’s response. Next they should communicate frequent-

It’s important to understand that you can’t erase the inevitable pain that furloughs cause. Living on unemployment benefits can be difficult and, in this pandemic, the replacement jobs workers find could expose them to the risk of contracting Covid-19. Employees who return once the furlough is over may have complex feelings. After Fermilab’s furloughs ended, the company conducted focus groups on the effects. It found that employees still felt uneasy and that their morale was affected negatively for months after their return to work. Managers should not assume that they are in the clear once a furlough has ended. Employees will still need frequent and transparent communication—a rational basis for hope—about the state of affairs and recovery plans, along with reassurance that the future is bright. Furloughs can be an excellent strategy—just ask Honeywell, whose stock returns were 279 percent higher than the competition’s after the Great Recession ended. But like all strategies, thoughtful implementation is needed for employees and employers to reap the maximum benefits, while undergoing minimal damage. Furloughs have become a sudden—and welcome—feature of this pandemic world, allowing companies to maintain connections with their employees, cut costs while still providing employees benefits and create a path to a seamless recovery. Sandra J. Sucher is a professor of management practice at Harvard Business School. Shalene Gupta is a research associate at Harvard Business School.

How to support your remaining employees after a layoff By Susan Peppercorn

Harvard Management Update

n just a few months, unemployment claims in the United States have soared past 40 million as a result of the coronavirus pandemic. Understandably, the focus is on those who are now jobless, whose career prospects and long-term security are suddenly unclear. What’s often overlooked in the economic reckoning, though, are the employees whose jobs were spared. While some may feel lucky to still be employed, others may experience mixed feelings. They may be relieved to have a job but simultaneously guiltridden about the suffering of former colleagues who were let go. This type of survivor’s guilt is normally associated with people who faced a traumatic event or accident that took the lives of others, but it can also happen after corporate layoffs. It’s not uncommon for the employees left standing to wonder, “Why did I make it, but they didn’t?” or “How am I going to face my friends who were let got, knowing that they’re in a tenuous financial situation, while I’m still employed?” Survivor’s guilt may be exacerbated by a perception that

the company failed to recognize or reward trusted colleagues and friends and instead eliminated them. A recent study by Leadership IQ, a research firm, shows that nearly threequarters (74 percent) of employees retained after a layoff saw their productivity decline afterward, while 69 percent said that the quality of their company’s product or service deteriorated. And when asked to describe how they felt following the layoffs, a majority said they experienced a sense of guilt, anxiety and anger. The good news is that workers who felt that their managers were visible, approachable and open were more than 70 percent less likely to report a productivity drop, and 65 percent less likely to report a decline in the quality of their organization’s offerings. The numbers show that leaders can make a big difference in helping retained employees deal with their survivor’s guilt. Here’s how:

Remember that work and life are interconnected

“Co-workers can become some of our closest friends, making work a trigger for pain,” says Jennifer Moss, author of

“Unlocking Happiness at Work.” Losing a co-worker to a layoff evokes feelings of grief, explains Moss. “Grief doesn’t just come with sadness and loss. Grief can also come fully loaded with guilt, anger, uncertainty, denial, regret and so much more.” If during the next staff video call employees notice that previous team members are now absent, they may be distracted from the business at hand, thinking about why others were laid off. So, the first thing to do is acknowledge what these “survivors” are feeling, while honoring the contributions made by their former colleagues. Encourage employees to reach out to former co-workers and make sure that, as a manager, you do so as well, offering tangible emotional and job-search support, for example by reviewing resumes, making networking introductions and providing references.

Be candid

To help employees avoid becoming mired in—and distracted by—survivor’s guilt, managers should help them see the reasons for the company’s downsizing decisions and explain the other options that were considered. If the company is helping to ease the

transition for those whose jobs were eliminated by providing severance and career-transition services, for example, share those details. If some workers were furloughed rather than laid off and there are plans to hire them back when economic conditions improve, clarify that. When employees understand that management is reshaping the company for future stability and growth, while treating people with dignity and keeping opportunities open when possible, they will be more likely to respond with their best efforts.

around layoffs. Virtual town-hall meetings, brown-bag lunches and other open forums are useful ways to keep the dialogue open and give employees a chance to ask questions. Team leaders can also add 15 minutes at the end of their staff meetings to facilitate twoway communication and provide a safe space for employees to process their emotions about colleagues being let go. Make the effort to be approachable, visible and candid. Address employees’ survivor’s guilt rather than ignoring it.

Communicate consistently and transparently

Another strategy that can help your remaining employees shift their focus from guilt back to their jobs is to reorient them toward individual and group purpose. People find meaning when they see a clear connection between what they value and what they spend time doing. That link is not always obvious even in the best of times and is particularly tenuous during a global pandemic, when those who are not on the front lines may feel that their work is less significant. Once employees have had a chance to process their feelings about the layoffs and gain a better understanding

While you may be tempted to avoid difficult topics, doing so can further erode trust in management and the company. Frequent, open communication is critical to reassuring employees in a crisis and can be helpful in mitigating survivor’s guilt. Leaders at every level of the organization must engage with their people systematically and often. Companies should consider devoting a day or two to training and discussion sessions to help managers build their confidence in delivering empathetic and consistent messaging

Connect work to purpose

of the decisions made, managers are in a great position to articulate the organization’s purpose and values, and connect everyone’s work to them. The most effective way to do this is to share stories of how, collectively, your company is making a positive difference in the lives of real people, including customers, employees and communities. You can also remind your employees that they do their work in service of those they care about in their personal lives. Amid layoffs related to the Covid-19 pandemic, it’s imperative to recognize the feelings and accommodate the needs of employees still in the workforce. These people are not only seeing colleagues lose their jobs, but may also be also dealing with personal challenges that are invisible, undefined and complicated. Leaders must show that they care by communicating transparently about the situation and listening while people process survivor’s guilt. They must be willing to adapt and readjust to prioritize people over profits. Susan Peppercorn is the author of Ditch Your Inner Critic at Work: EvidenceBased Strategies to Thrive in Your Career.

B6 Monday, July 13, 2020

Easily purchase products at any 7-Eleven store using TendoPay’s installment plan

S the country’s e-commerce sector continues to accelerate in the current landscape, TendoPay presents a solution to help Filipinos access widely available, fairly-priced and easy to obtain financial products. TendoPay launches its partnership with 7-Eleven on Monday, July 6, 2020. With TendoPay, customers can conveniently pay for their purchases from 7-Eleven’s chain of convenience stores found throughout the Philippines, over several months. TendoPay is a digital installment plan solution that gives its customers the convenience to buy now and pay later for their online purchases in 15 days up to 24 months installments. While 7-Eleven is the largest chain store with over 2,900 stores in the Philippines. It is primarily a chain of convenience stores that operates on a daily and 24-hours basis. After applying via cliqq.net customers can buy 7-Eleven vouchers on installments on the TendoPay website and load their 7-Eleven CLiQQ wallet, they can then use said wallet at any 7-Eleven store to pay for their purchases. “It allows them to make purchases whenever they actually need them. Then they can repay them once they get their salary or even spread the cost over several months. It’s a very convenient way of managing your finances especially at a time of pandemic,” shared Kacper Marcinkowski, President of TendoPay. Anyone can apply for a Tendopay account, so long as they fit the requirements. TendoPay also has an Employee Benefit program, which is a packaged product where employees are offered their TendoPay via their employer. With this package, employees will gain access to a relatively large credit limit and lowinterest rates.

FIRST METRO OFFICERS TOP REGIONAL SURVEY. Three officers of First Metro Investment Corporation, the investment banking arm of the Metrobank Group, were recognized as among the region's best in Trading and Sales by The Asset in its Asian Local Currency Bond Benchmark Review 2020. Dave Ignacio Estacio (left), vice president and head of local debt markets, is ranked fourth among the top five individuals in Trading. Bernice Joyce Nobleza (center), senior manager/trader, is among the Highly Commended individuals in Trading, while Mary Grace Ong-Singson (right), assistant vice president and head of institutional sales, is one of the Highly Commended individuals in Sales. The Asian Local Currency Bond Benchmark Review by The Asset has been conducted annually since 2000. It provides a wealth of data on the product needs of investors and the market penetration of the banks that are active in local currency bonds. It also provides a detailed analysis on the investors' buying behavior when selecting their counterparties, giving unique access into the minds of these investors. The Asset surveyed over 300 fixed income investors across 11 Asian markets comprised of local and regional institutions including asset managers, hedge funds, and local and international banks. Insurance companies, pension funds and trusts across the Asia are also interviewed.

SSS starts checkless payment of funeral benefit claims

With the high usage of mobile phones for internet, data, and social media, digital payments are right around the corner to dominate the landscape with the shift to digitalization. The growth of e-commerce in the Philippines is very ripe and nascent according to TendoPay’s President, Kacper Marcinkowski. Although payments and logistics may be lagging behind, it is changing rapidly and TendoPay is eager to be a part of this change. Marcinkowski explained how they aim to empower Filipinos financially with TendoPay, “We think that in a complex sector like fintech it’s important to specialize or focus on one problem only. In our case, it’s providing

Filipinos affordable and convenient financing. We will continue to grow our ecosystem of partner stores to fulfill this mission.” TendoPay progressively expands its retail partners to provide Filipinos a means for productive spending and access to essential services and resources, especially during the period where finance is a big concern. Through TendoPay and 7-Eleven’s partnership, customers can purchase the products they need using their credits and pay once they can get back up on their feet. The partnership will greatly benefit customers to easily purchase their daily necessities at any time and at any 7-Eleven store nationwide.

Celebrate National Children’s Book Day with fun and engaging virtual kids' activities

N celebration of National Children’s Book Day (NCBD), the Philippine Board on Books for Young People (PBBY) in partnership with the Cultural Center of the Philippines (CCP) Intertextual Division is holding a series of online children activities for the whole month of July with the theme “Sa Pagbabasa, Hindi ka Nag-iisa”. These activities, which include workshops, will be live-streamed for free on different platforms.

The online celebration begins with the PBBY’s awarding ceremony for the winners of PBBY-Alcala and Salanga Prizes on July 21, 10:00am, followed by the NCBD 2020 Website Launch at 12:00pm that will take place on the official Facebook pages of CCP and PBBY. The chosen theme of the website revolves around the current situation of COVID-19, quarantine, lockdown, and the value of cooperation during a health crisis. After the website launch, storyteller

Posh Develos will read aloud a story book entitled “Mas Masaya Kapag Kasama Ang Pamilya,” in a storytelling session that will also be streamed online at 2:00pm on the official Facebook pages of the CCP and CCP Arts Education. The book is written and illustrated by Ellen Jay Tampus. On the next day, July 22 at 3:00pm, author and illustrator, Beth Paroccha together with Liza Flores will offer tips on how to draw Filipino children’s book characters in a workshop. This session will be streamed at the official Facebook pages of CCP and PBBY. On July 23 at 3:00pm, Sinag, a group of artists, will offer a free livestream on illustrating book with difficult topics at the CCP and PBBY Facebook pages. On July 25, 3:00pm, the last day of the celebration, the Lock ‘n Roll group will have a talk show interview with the winners of PBBY-Alcala and Salanga Prizes. The show will be streamed at the Lock ‘n Roll official Facebook page and at the CCP Intertextual Division’s official Facebook page. NCBD is celebrated annually every third Tuesday of July, not only to commemorate the date of the publication of Jose Rizal's "The Monkey and the Turtle" in Trubner's Oriental Record in London, but also to celebrate the importance of nurturing our young readers’ curiosity and imagination. For more NCBD activities, please visit the PBBY Facebook page. For inquiries and additional information on this event, please contact CCP Intertextual Division at 8551-5959 or 0919-3175708 or send an email to ccpintertextualdivision@ gmail.com.

HE Social Security System (SSS) will no longer release funeral benefit checks following the implementation of the mandatory payment of the said benefit through the banks and alternative payment channels. SSS President and CEO Aurora C. Ignacio said the SSS funeral benefit, a cash benefit granted to whoever paid for the funeral expenses of a deceased member, is now released either through P hilippine Electronic Fund Transfer System and Operations Network (PESONet) participating banks, e-wallets, e.g., PayMaya, or Remittance Transfer Companies (RTCs)/Cash Payout Outlets (CPOs), in addition to the earlier launched mode of payment via Unified Multi-Purpose Identification (UMID) cards enrolled as an ATM card. "Upon the filing of funeral claim applications, claimants who are also SSS members are required to have an enrolled disbursement account in the SSS' Bank Enrollment Module (BEM), if they don't have a UMID-ATM," Ignacio said. To access the BEM, members must log in to their My.SSS account at the SSS website, www.sss.gov.ph, proceed to the E-services tab and click Bank Enrollment. Members must select their preferred PESONet participating bank, e-wallet, or RTC/CPO. They must supply their bank account number to enroll their bank account or their mobile number for e-wallets or RTCs/CPOs. The complete list of PESONet participating banks and electronic money issuers (including e-wallets) is available under the "ACH Participants" section of the Payments and Settlements tab of the Bangko Sentral ng Pilipinas website at www.bsp.gov.ph. Aside from banks and e-wallets, the DBP Cash Padala Thru M Lhuillier, an RTC/CPO, may also be selected in the BEM. Members must provide their bank account numbers

as a continuous string of numbers without dashes between non-numeric characters. Meanwhile, mobile numbers must also be in the same format, such as 09171234567 or 09181234567. "Claimants, who are non-SSS members, are required to present and submit a copy of their disbursement account together with their funeral claims application and other documentary requirements," Ignacio said. To receive the benefit payment through PESONet participating banks, non-SSS member claimants must present the original copy and submit the photocopy of any of the following: passbook, ATM card with the name of the claimant and account number, validated initial deposit slip, or a bank certificate or statement issued within three months before the filing of the claim with the name of the claimant and account number. If they opt to receive the benefit through e-wallets or RTCs/CPOs, claimants must provide their mobile numbers. "The disbursement of funeral claims through banks and alternative payment channels allows SSS beneficiaries to conveniently receive their benefits without having to wait for their checks to arrive. They can pick it up picking at the SSS branch where they filed their claims, and got to the bank to encash it," Ignacio said. The enhanced payment method for the funeral benefit took effect since June 22, 2020. Funeral claims encoded in the SSS' funeral system as of the said date will still be paid through checks. However, if the application is not yet encoded in the system, the SSS branch will inform the claimant to enroll a disbursement account in the BEM or provide the corresponding documentary requirement for his/her disbursement account.

DDB Group's Anna Chua-Norbert is PH's first 'Diversity Champion'

Anna Chua-Norbert

DB Group Philippines Chief Culture Officer Anna Chua-Norbert is the first Filipino to be named “Diversity Champion” by Campaign Asia-Pacific’s Women Leading Change Awards (WLCA), which recently announced its winners this year. Now in its fourth year, WLCA recognizes women in Asia for their outstanding leadership, achievement and innovation in the media and marketing industry. Like Anna, women change-makers and leaders fill up the list of WLCA winners that came from all over the region, with China and Singapore bagging the most wins this year; while it’s the sole win for Philippines. “I am happy to be able to bring honor to my country, which is home to a rich pool of talents from diverse backgrounds. This award serves as an inspiration for me and my fellow leaders at DDB to continue practicing and advocating the high ideals of equality, diversity and inclusion, which all boil down to our being a peoplefirst organization,” Chua-Norbert said. As Chief Culture Officer of DDB Group Philippines, one of the Philippines’ leading integrated marketing

communication groups, Chua-Norbert leads the talent management and corporate communication department dubbed The Culture Hub. She sees to it that people achieve their utmost potential through DDB’s creativity-inducing culture of freedom, anchored on the core values of “People First” and “Talent Has No Gender”. This entails respecting diversity in all aspects – differences in gender or sexual orientation, race or ethnicity, age, status, religion, values, or disability. That is, on top of providing holistic health programs and training opportunities, and practicing strategic communication that altogether inspire and motivate employees. DDB Group Philippines Chairman & CEO Gil G. Chua said that the win is an affirmation of the values that the integrated marketing communication group has always upheld. “We believe in a company culture that enables people to bring their best self to work and stay motivated every day. Thus, we provide them that place of security, acceptance, equality, freedom, fun, learning, growth and collaboration to produce meaningful effective work, delivered with a smile. That’s what diversity means to us,” he said. DDB Group Philippines’s unwavering dedication to diversity is key to its unique high-performing culture, winning awards in both creativity and people management. One of the most bankable integrated marketing communication conglomerates, DDB Group Philippines’ numerous recognitions include its IABC Philippine Quill Awards back-to-back "Agency of the Year" win (2018 and 2019), and its Campaign Agency of the Year Awards’“Southeast Asia (SEA) Best Culture” and “SEA Talent Development Program of the Year” Silver plums. Chua-Norbert is also part of 4As Philippines’ Board of Trustees and the Advertising Standards Council’s Board of Directors, which she uses as platforms to promote industry best practices as well as her advocacies.

Marketing BusinessMirror

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Monday, July 13, 2020 B7

Engaging the ‘new normal’ consumer digital touchpoints 2Balance with a human touch.

Second of two parts

With everyone going online to engage their customers, brands must learn how to better bridge the gap between their offerings and the different needs of their consumers. For example, Netflix’s Party extension, which allows users to view videos with friends and chat with them while doing so, helps meet the need for human interaction. Grocery delivery apps, meanwhile, provide a means to buy essentials within the comfort of one’s home.

By Abigail L. Ho -Torres

n Digital: Interactive experience by ‘Eyeyah!’ uses creativity to talk to kids about healthy eating

SINGAPORE—With creativity and critical thinking cited as key skills for the future, schools are increasingly recognising the need to embrace tools and technology to nurture these soft skills. At the same time, parents want their children to embrace healthy lifestyles. Based on the award-winning Eyeyah! print magazine, the experience merges an interactive digital magazine with puzzles and games, and is optimised for ipad and aimed at eight to 12yrs+. It consists of nine playable scenes, interspersed with animated fun facts — each designed by a professional artist, and built around different learning points. As users play games, spot vegetables and come up with captions for illustrations, they will learn about the danger of excess sugar, food groups, food waste and

food marketing. There is a strong link between learning and having fun. When children are engaged and motivated and feel minimal stress, information flows freely and they achieve higher levels of cognition, make connections, and experience “aha” moments. Eyeyah!’s previous interactive, supported by Media Literacy Council, uses the same approach to talk to children about Internet safety and media literacy and has been used to support lessons in five Singapore schools. Supported by TOTE Board, the interactive experience comes with an Educators toolkit that contains activity sheets, lesson plans and in class activities to foster conversation and deeper learning. Says Tanya Wilson, mother of two and co-founder of Eyeyah!: “We enjoy the challenge of taking delicate subjects such as Internet safety and healthy eating and making them fun and accessible. Stunning graphics capture the child’s attention and puzzles and games keep them engaged. This is the second in our series of non-addictive educational apps and we look forward to releasing more.”

on customer safety 3Focus and well-being.

pch.vector | WWW.FREEPIK.COM

PR Matters

N last week’s column, we took a look at some emerging consumer sentiments and behaviors resulting from the pandemic and the quarantine scheme still in place in many areas nationwide. We saw a snapshot of how a crisis—especially a long-drawn-out one like this one—could result in rapidly changing moods and behaviors among our audiences. So far, we have seen a few trends that will likely carry over into the next few months, and maybe even in the next couple of years. n Most Filipinos are worried about their health and that of their loved ones. They are scared not only of contracting Covid-19, but of getting other diseases as well. n They are anxious about finances. Unemployment was at an all-time high in April, with at least 7.3 million Filipinos left jobless a month into quarantine. n Consumers are going back to the basics. Categories on top of Filipinos’ shopping lists include basic grocery food, fresh and frozen food, medicines, personal care products, and household cleaning products. n Filipinos are spending even more time online. The Philippines is already the social-media capital of the world, but this quarantine seems to have really brought out the Internet surfers and content creators in us. Filipinos have also grown increasingly wary of returning to their “normal” lives. According to an online survey conducted by global market research firm Ipsos from May 22 to 26, most Filipinos will only be comfortable going to restaurants, visiting friends or family in their homes, and using public transportation by August to December. This, compared to other Asean countries, whose citizens have already started doing these things last month. Filipinos also do not see themselves attending any cultural event or gathering, going to the gym or any sports facility, and traveling domestically and overseas this year. Other Asean residents feel the same way, except for those in Indonesia, Singapore and Vietnam, who said they feel comfortable enough to engage in these activities, except international travel, starting June. Considering the survey period

and the spike in the number of new Covid-19 cases these past few days, however, there’s a big possibility that results would be different if the survey were to be conducted now. We may see even more new trends in the coming days, as the number of Covid-19 cases continues to rise.

Engagement route

Given these sentiment and behavior changes, we also have to adjust the way we engage our consumers. It’s not that our old or current approaches are totally wrong and are all no longer applicable. There is just a need to pay closer attention to things we may not have focused too much on during pre-pandemic times. In a presentation titled "Staying Close to Your Customers, Ipsos Asia-Pacific Lead for Customer Experience & Channel Performance,” Stephane Sanchez said: “Finding ways to keep close to your customers in these fluid times is more important than ever for brands.” Staying close to your customers means keeping in mind these three words when planning any project or campaign: understand, adapt and anticipate. n Understand the impact of the crisis on customers and brands. Society will never go back to the status quo. It is im-

The app is live on the Apple app store here and can be downloaded free of charge until 30 July 2020. For use in the classroom, it is supported by detailed lesson plans built around some of the scenes in the experience, these can be downloaded for free on the Eyeyah! web site. Eyeyah! has been building itself as a trusted brand since 2017, and in line with that the app doesn’t collect any data and features no advertising.

n Brand & Business: Petch&Partners makes history as the first PHl agency to rank 2nd across Australasia in Campaign Brief’s ‘The Work’ Rankings

MANILA, PHILIPPINES—Making history for the Philippines, Petch&Partners have yet again proven they are not just among the Philippines’s top creative agencies, but one of the top globally. Petch is now the first Philippine agency to beat 100+ Australasian agencies to become the second most awarded creative organization across Australia, New Zealand and Asia and No. 1 most awarded in The Philippines in the “2020 Campaign

portant for brands to systematically explore how various evolving elements influence customer behavior and needs, so they can craft the appropriate offerings and campaigns. They need to deep-dive on the strength of their relationship with their consumers, identify pain points and points for improvement, and do something to close that loop. They then have to measure their success and capture customers’ response, then document best practices and quantify the overall impact on business. n Adapt to new customer needs and expectations, and provide the right ingredients to drive strong relationships. People will find new ways of doing things, so brands need to be flexible enough to adapt to changing customer needs. It is very important to listen to customers, and to show them that you care for them. Bear in mind the six forces of customer experience: enjoyment, belonging, certainty, fair treatment, status and control. Get the right mix of those elements in your offerings and in your messaging, and you have a recipe for success. n Anticipate what the future customer experience will be like. As what the last financial crisis has shown us, sudden changes, like what we are experiencing

Brief ‘The Work’ Australasia Awards Rankings.” Petch&Partners took the No. 2 position across Australia, New Zealand and Asia, and the No. 1 position in the Philippines with 28 acceptances. This largely attributed to Petch&Partners string of wins from international awards shows in 2020: Two medals, and 17 finalists at the 2020 New York festivals, as well as multiple finalists at the 2020 One Show Awards. Notably, bucking the trend of some Asian agencies historically, Petch&Partners accolades have been attributed to big budget or problem solving campaigns for global brands Vivo Asia, Dole Fruits, Max’s Group Inc. and Splash Corp. Commenting on the historic win, Andrew Petch said: “Since opening in January 2017, we have been committed to proving that ‘world-class creativity is a business tool that engages and compels consumers to buy our clients products and services.’ Our clients have benefited from this in sales and brand equity, hand in hand. And likewise, recognition of this is something our clients and our agency are proud of, hand in hand.”

now, can lead to long-term shifts in how brands and consumers interact with each other. For brands to be able to weather this storm and emerge even stronger, it is important for them to properly manage these changes and accompany their customers in this new journey.

Stimulating demand

In a separate presentation, Ipsos Philippines Senior Research Director Ferdinand Jorge shared three recommendations that could help brands stimulate consumer demand.

compelling value to 1Provide cautious customers.

Brands that show customers that they care are more likely to win hearts, minds, and share of wallet. One good example of this is the implementation of payment holidays and suspension of service disconnections by some local utilities during the enhanced community quarantine (ECQ) period. Other examples include insurance companies offering free Covid-19 life insurance coverage and companies allocating part of sales proceeds to provide aid for their employees. These represent acts of sacrifice on the part of the brands, showing concern for others, including their customers.

n Digital: Google launches Startups Accelerator program to help Filipino start-ups and businesses

MANILA, PHILIPPINES—To help local start-ups adapt to the changes and thrive in these times, Google calls all Filipino entrepreneurs and business innovators to join Google for Startups Accelerator: Southeast Asia. The three-month online accelerator program will run from August 11 to November 12, 2020, gathering tech start-ups from all over Southeast Asia, including the Philippines. These are the enterprises looking to develop tech-driven solutions for the challenges the public faces today—especially in health care, education, finance and logistics. Applications are currently ongoing and will remain open until July 19. Successful applicants will be paired with relevant experts from Google and the industry to discuss the challenges their start-ups are facing and find possible solutions for their businesses. Participants will receive deep mentorship on both business and technical topics, as well as specialized support

Brands that place emphasis on their customers’ health and safety will likely elicit positive responses from their target markets, resulting not only in sales, but also in love for and trust in the brand. We have seen airlines and fast-food chains pivot their ad messaging from straight-up “buy” to “it is safe to dine/fly with us”—showing customers that they can again enjoy the things they used to enjoy without worrying about their safety. This pandemic has proven once again the integral role of communication in ensuring business survival. To maximize opportunities to connect with our customers during these trying times, we should take the time and effort to get to know our “new normal” consumers. Cliché as it may sound, but times of crisis really do give rise to the best opportunities. As communication professionals, it is our duty to let our publics know that our organizations are one with them in navigating these treacherous waters. This is precisely the time for brands to shine. 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 organization for PR professionals around the world. Abigail L. Ho-Torres is AVP and Head of Advocacy and Marketing of Maynilad Water Services Inc. She spent more than a decade as a business journalist before making the leap to the corporate world. We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@ gmail.com.

from Google’s mentor network and access to Google’s AI/ML, Cloud, Android and Web experts. In addition to the mentorship and technical support, the program will also offer training and workshops focused on product design, customer acquisition, and leadership development for business founders. “The start-ups community is important as not only do they provide smart solutions to the challenges we face every day but they help propel the economy forward. We are committed to supporting Filipino start-ups and one way we’re doing this is through Google’s Startups Accelerator program to help them realize their full potential and seize opportunities ahead,” said Bernadette Nacario, Google Philippines Country Director. Formerly known as the Google Launchpad Accelerator, the Google for Startups Accelerator program continues the company’s longstanding commitment to empower global startup ecosystems and discover solutions to challenges using Google’s resources in technology, research, and network of people.

Sports BusinessMirror

B8 Monday, July 13, 2020

LEBRON: I HAVE MY OWN MISSION By Greg Beacham

The Associated Press

EBRON JAMES says his thoughts on social justice can’t be contained on the back of a basketball jersey. The Los Angeles Lakers superstar won’t wear one of the National Basketball Association (NBA)-approved social justice messages on the back of his jersey when the NBA resumes competition later this month in the Orlando bubble. “It was no disrespect to the list that was handed down to all the players,” James said Saturday in a conference call from Florida. “I commend anyone that decides to put something on the back of their jersey. It’s just something that didn’t seriously resonate with my mission, with my goal.” As part of the NBA’s recognition of the nationwide invigoration of the social justice movement sparked by the death of George Floyd, NBA players are allowed to choose from a lengthy list of possible messages for their jerseys during the league’s restart. James is among just a few who declined to choose one of the messages, he said. “I would have loved to have a say-so on what would have went on the back of my jersey,” James said. “I had a couple of things in mind, but I wasn’t part of that process, which is OK.... Everything that I do has a purpose, has a meaning. I don’t need to have something on the back of my jersey for people to understand my mission or know what I’m about and what I’m here to do.” The 35-year-old superstar has a long history of social involvement and advocacy for progressive causes. James speaks frequently of what he feels is a responsibility to campaign for positive social change from his powerful position in sports and pop culture.

“This is the mission I’ve been on for a long time now,” James said. “It’s great that a lot of people’s ears are opening. A lot of people are understanding, a lot of people are recognizing. A lot of people still don’t get it, and a lot of people are still afraid to talk about the racism that goes on in America, especially for our people.... But we have some ears, and we will continue to push the envelope and let everyone know that we are human as well. We don’t want to be just be used for our God-given abilities.” JaVale McGee, the Lakers’ veteran center, said he will wear “Respect Us” on his jersey in Orlando. “It’s a blessing to have this platform,” said McGee, whose asthma has him being particularly cautious during the pandemic. “We have way more of a voice playing basketball.... Our fans are basketball fans over anything. This is the biggest platform we can speak about social injustices. That’s the best time to talk about it.” James also said he didn’t consider not playing in the NBA’s restart, believing the league can be a positive force through its visibility and competition. He expressed no concerns for his health inside the bubble. “I believe the NBA and [Commissioner] Adam Silver, they took all precautionary measure to make sure that we as a league are as safe as we can be,” James said. “Obviously, in anything that you do, there can be things that can happen, so we will cross that line if it happens. But we’re doing everything to make sure everyone stays safe during this pandemic. Adam Silver has given me no reason to not believe him since he took over. I have no concerns. I’m here 100 percent and in great health.”

POPOVICH, SPURS FOR RESTART

GREGG POPOVICH fondly remembers his freshman year at the United States Air Force Academy, even though as a first-year cadet he

was extremely limited in where he could go and what activities were allowed. Lockdown at Walt Disney World, he said, reminded him of those days. “But two days, anybody can do that,” the San Antonio coach said Saturday. He made it through that freshman year with ease, made it through the two days of in-room Disney quarantine as well, and now the longest-tenured and oldest active coach in the league is free to roam within the NBA bubble in Lake Buena Vista, Florida. That doesn’t mean he didn’t have reservations about being part of the NBA restart, given the ongoing issues of racial strife, social inequality and the coronavirus pandemic. “If you’re thinking person, you’re going to look at all sides of a situation,” Popovich said. “And, especially being 71 years old, I thought, ‘Is this where I want to spend a lot of my time, doing this, under these circumstances?’” The answer was yes, and Popovich was running his first practice in more than four months Saturday as the Spurs began getting ready for a playoff push. When the season resumes July 30, San Antonio will be 12th in the Western Conference—only a half-game from ninth, where the Spurs would have to be and within four games of the No. 8 spot to force their way into a play-in series.

Bleachers’ Brew Rick Olivares | bleachersbrew@gmail.com

THE December cold bit right through the jackets. The Philippine men’s national football team was in some ways unprepared for the 2010 Suzuki Cup in Vietnam. With two positive results in the bag—a draw with Singapore that saw the Azkals net their first ever point against the Lions, and a massive 2-nil win over the host country that was also the defending champions—had made the Philippines the story of the tournament. If the team wanted to complete its historic stint, it needs to at least finish with a draw against Myanmar. Except the Azkals would have to play in Nam Dinh that was an hour and 40 minutes drive from Hanoi. Now that was fine because it was away from the 40,000-plus crowd that filled the My Dinh National Stadium. After the huge upset win against Vietnam, had the team played in Hanoi, the crowd’s jeers could have possibly fueled Myanmar. And history as we know it might have not happened. The day before the match against Myanmar, the Azkals went jogging early in the morning. Before they headed back to the dingy Vhoang Hotel where they were booked, they posed for photographs right in front of the huge statue of Vietnamese hero Tran Quoc Tuan who defeated the Mongol hordes of Kublai Khan in 1283 and 1284. “Who is this,” wondered then head coach Simon McMenemy of the statue. The team’s Vietnamese liaison explained the feats of the great Vietnamese general whose tactics were later used by the North Vietnamese during the Indochina Wars of 1946 to 1975. “Then we make our history here,” pronounced McMenemy. The scoreless draw the following evening ultimately catapulted the Philippines to their first ever semifinals slot. However, the morning before as the team posed for photos, a few of the Azkals separated for a group photo of their own. “Let’s get a photo of our own,” enthused midfielder Chris Greatwich as he called out to some of his teammates. There were seven—Aly Borromeo, Roel Gener, Ian Araneta, Chieffy Caligdong, Anton del Rosario, Peter Jaugan and Greatwich—who posed for that photo. They were the remaining members of the 2004 Azkals who competed in

that year’s Suzuki Cup. Six years later, they were part of the core that was making Philippine football history. That core would be aided and abetted over the years with the arrival of James and Phil Younghusband in 2005, Neil Etheridge in 2008 and Rob Gier and Ray Jonsson in 2009 and Jason de Jong in 2010. If you look at that photo, all of them have their hands and arms around each other’s shoulders. It isn’t only for show, but it is also a bond that exists between these men who were these during the national team’s own Dark Ages right up to the light at the end of a very long tunnel. Of the seven in that photo, six played meaningful minutes during the 2010 Suzuki Cup. Of the seven in that photo, five have left their mark on the game by either how they performed on the pitch, with some spectacular scoring feats, by coaching, or by being very active beyond the touchline. Between them, they have a total of 226 international caps and a couple of thousand competitive domestic games. That not only speaks of their talent, but also what they mean to the game by their mere longevity and influence for their various clubs. Ten years after that photo, 16 years after their 2004 debut with the senior side, it is only del Rosario who still puts on his playing boots in top flight competition. Borromeo, aside from being a businessman is also a manager for his one and only club team, Kaya. Roel Gener is still with the Philippine Army. Araneta is close to finishing his professional career with the Philippine Air Force. Caligdong has migrated to Canada where he is a youth coach. Jaugan is still with the Philippine Air Force and has been assigned to his native Davao while Greatwich after retiring with Kaya in 2015 has coached the club and works with the academy. Reflecting upon how those seven have done for both the game and the country, their 2004 Azkals head coach, Aris Caslib, has this to say: “It is heart-warming to see their impact and how they all played key roles in Philippine Football from 2004 and beyond.” “They,” summed up Caslib who helped put up the program by identifying Filipinos born overseas to complement the homegrown players, “made history.”

such as a pair of two-putt pars from over 50 feet, and a shot that stuck in the grass high on the lip of a bunker on par-3 12th. Otherwise, it’s been a clinic. Thomas had three straight birdies to stay in range of Morikawa. And when Morikawa fell back with three bogeys over a four-hole stretch around the turn, Thomas made efficient birdies on the par 5s and a smart birdie on the

reachable 14th for a 6-under 66 to keep two ahead of Viktor Hovland (66). After a delicate chip to tap-in range on the par-5 fifth, Thomas walked halfway up the hill behind the green and plopped down in the grass, leaning back on his hands, much like a spectator at a tournament that has none. Too bad there won’t be any fans Sunday, a final round that offers another glimpse of the new generation. Thomas is the proven star, already a major champion and former world No. 1 at

age 27 as he goes after his third victory this season and the 13th victory of his career. Hovland and Morikawa had just left college at this time last year and already have victories, albeit the opposite-field variety the same week as World Golf Championships. Hovland, the former US Amateur champion from Norway, had eight birdies in his round of 66. Morikawa, who never looks as though he’ll make a mistake, had enough of them that he needed a birdie on his last hole for a 72. AP

you don’t know what time it is. All you know is that you’re going super fast.” It was arguably Hamilton’s best pole since Singapore two years ago. Although that lap was spectacularly quick, it was on a bonedry track with searing heat, humidity and floodlights illuminating the circuit. This was the polar opposite: A treacherous, slippery track with huge puddles and dark rolling clouds overhead eliminating much visibility. “It was on the limit but that’s racing. I’m glad they didn’t take that away from us, it’s so special being out there, so difficult,” Hamilton said. “These are the hardest conditions we ever drive in, just one small lapse in concentration and you’re off (the track) ... an incredible challenge.” Mercedes teammate Valtteri Bottas could not match him this time, qualifying in fourth place after taking pole and winning last Sunday’s Austrian GP. Verstappen swerved a little on his final

attempt at beating Hamilton’s time. “It could have been better but I don’t think it was enough to beat Lewis,” the Dutch driver said. It was the best career result in qualifying for Sainz Jr. and further evidence of McLaren’s improvement after Lando Norris finished last weekend’s race in third place. “It feels amazing, especially that qualifying was one of the toughest I have done,” Sainz Jr. said. “There was so much aquaplaning it was crazy. We’re completely blind in the car, we don’t see what’s at the front, what’s at the back.” Sainz. Jr is joining Ferrari next year and showed a coolness under pressure. “I did enjoy myself but I must say it was quite stressful,” he said. But this was another dismal day for Ferrari, with Sebastian Vettel 10th and Charles Leclerc 11th. “The main problem was we were just not quick enough,” Leclerc said. “We’re just too slow.” Driving rain washed out the third and

LEBRON JAMES won’t wear social justice message on Lakers jersey. AP

P SAN ANTONIO Coach Gregg Popovich says Japan seems to be doing a pretty good job on the postponed Olympics. AP

OPTIMISTIC ABOUT TOKYO

AN ANTONIO Coach Gregg Popovich, the US men’s basketball coach, says he is watching how Japan—the site of the next Olympics—is handling the coronavirus. “They seem to be doing a pretty good job,” Popovich said. He said he hopes the Tokyo Games, which were delayed until 2021, could still happen—especially if a vaccine or other remedies are developed beforehand. The National Basketball Association (NBA) plans to start next season in December, which could complicate Olympic availability for players. It’s not clear if the playoffs would be finished before the Olympics would begin on July 23, 2021. That will make filling a roster “a little bit trickier,” Popovich said. “I think there will undoubtedly be some players that we’d probably love to have, but circumstances may make it difficult for them with a short turnaround between whatever the end of the season is going to be and the Olympics,” Popovich said. “You can’t foresee people’s family situations and what might be good for them. So, we’d like to have all the players that we want. But I think to have every single one that we want, we’d have to be very fortunate.” AP

no scrimmages—to resume in the PBA. This also applies to professional football. “The teams will pay the expenses, just like when a player gets injured. No need for any [extra] insurance,” Marcial said. Marcial said the rapid and swab tests will be conducted at the San Miguel Corp. facility in Mandaluyong City. Marcial said the PBA is hoping the IATF will already allow team scrimmage next month. “Hopefully, they will agree,” he said. A more relaxed health protocol, Marcial said, would signal the league’s return to competition. The Philippine Cup opened the PBA’s 45th season last March, but competitions were halted because of the enhanced community quarantine. Only one game—San Miguel Beer

beat Magnolia, 9478—was played on opening day last March 8. Marcial stressed that the PBA has its own “closed circuit” protocol to protect the members of the team. This means all team members must only travel to and from their homes and practive venues. Every facility, Marcial said, will also be thoroughly disinfected. “I think the PBA has put up an effective guideline to safeguard the players. It’s just a matter of attitude from the players to maintain the policy,” NLEX Head Coach Yeng Guiao said. Ramon Rafael Bonilla

Thomas keeps clean card for 2-shot lead at Muirfield

UBLIN, Ohio—Justin Thomas never looked to be in a hurry. Not when he stepped to the first tee Friday trailing by 13 shots. Not when he was simply trying to keep up with Collin Morikawa on Saturday in the Workday Charity Open. And after turning a three-shot deficit into a two-shot lead with another clean card, he

certainly didn’t see any need to sprint to the finish at Muirfield Village as he goes after his third victory this season. “Just going to keep trying to hit the fairways and hit the greens and make as many birdies as I can,” he said. That’s been the philosophy all week, and along the way, he has managed to keep bogeys off his card. There were a few dicey moments,

Hamilton’s S best in wet conditions

PIELBERG, Austria—Lewis Hamilton showed why he’s one of Formula One’s best ever in wet conditions, dominating on a rain-drenched track to take pole position for the Styrian Grand Prix on Saturday. It was the Mercedes driver’s recordextending 89th career pole and particularly impressive as he first beat Red Bull driver Max Verstappen’s mark and then his own leading mark on his final lap. “That was awesome,” Hamilton said. “Ho nestly it was a fantastic lap, that lap was as close to perfect as I could get it in those conditions.” He placed 1.216 seconds ahead of Verstappen and 1.398 clear of McLaren driver Carlos Sainz Jr. Despite the difficulty level, he kept going faster. “I definitely had my heart in my mouth,” Hamilton said. “You have a cloud of spray ahead of you, and the same behind. You don’t know where anyone is,

THE Azkals—(from left) Aly Borromeo, Roel Gener, Ian Araneta, Chieffy Caligdong, Anton del Rosario, Peter Jaugan and Chris Greatwich—pose at the statue of Tran Quo Duoc at Nam Dinh, Vietnam, the day before they draw Myanmar

The Magnificent Seven

PBA teams tasked to shoulder medical expenses of players contracting virus HILIPPINE Basketball Association (PBA) teams—not the league—will shoulder the medical expenses of a player, coach or team staff who will fall ill with Covid-19. Testing of team members, according to PBA Commissioner Willie Marcial, are compulsory on a 10-day frequency with the ball clubs also shouldering the cost. “The PBA Board of Governors agreed on Saturday to take the responsibility of the health and wellness of the players when practices resume,” said Marcial, adding the league has discussed its own guidelines with the coaches and team managers last Friday. The league set these policies after the Inter Agency Task Force on Emerging Infectious Diseases allowed training—under strict protocols and still

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

final practice at midday and threatened qualifying altogether. But the cars managed to finally get out onto the Red Bull Ring at around 3:45 p.m. local time (1345 GMT) even though rain was still lashing down. With drivers told the rain would soon get heavier, they were advised to post a solid time quickly in order to get into the second part of qualifying. Verstappen said “I can’t see a thing” and Romain Grosjean slid into gravel. Some unexpected names popped up at the top of the leaderboard, before order was restored as Hamilton, Bottas and Verstappen swapped leading times. “Leave me to it,” Hamilton snapped at his engineer over radio, trying to keep his concentration. With two minutes left in Q1, the first part of qualifying, Italian driver Antonio Giovinazzi lost control of his Alfa Romeo and it swerved sideways and then backward into a crash barrier. His car had to be lifted off the track. AP

www.businessmirror.com.ph

PPA@46 A BusinessMirror Special Feature

Monday, July 13, 2020

PPA: 46 YEARS OF PROMOTING NATION-BUILDING THROUGH INTEGRITY AND DEDICATED PUBLIC SERVICE IN PORTS FOR EVERY FILIPINO

HE year 2020 was supposed to be a prosperous year for the entire world according to fortune tellers.

Everybody was upbeat. The business community, government economic leaders, and GOCCs like PPA were anticipating unprecedented opportunities ushered in by the new year and a new decade. Until disaster struck. In the first quarter of the year alone, the Philippines already faced several challenges like the eruption of Taal Volcano in January displacing thousands of residents from the provinces of Batangas and Cavite as well as nearby cities and municipalities. The death of notable celebrities and world leaders where countries, the Philippines included, drew inspiration from, and the spread of a new strain of Coronavirus, the Novel Coronavirus 2019 or now known as the Coronavirus Disease 2019 or COVID-19. The magnitude of its spread is so huge, affecting even nations considered as global su-

perpowers, infecting and killing hundreds of thousands of people across the globe. The Philippines has not been spared from this global health crisis. It caught the entire nation by surprise, paralyzing the flow of people, goods, trade and tourism until this time. If not for the proactive approach of the National Government led by President Rodrigo Roa Duterte immediately placing the entire country under a State of Public Health Emergency on 16 March 2020, the health condition in the Philippines could have been worse considering the huge number of infections centered not only in the countryâ&#x20AC;&#x2122;s capital but also in other densely populated areas in Luzon, Visayas and Mindanao. Anchored on this declaration,

Continued on C2

PPA@

A BusinessMirro

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

PPA: 46 YEARS OF PROMOTING NATION-BUILDING THROUGH INTEGRIT Continued from C1 the Philippine Ports Authority, under the guidance of the Secretary of the Department of Transportation Arthur P. Tugade, wasted no time and quickly buckled down to work to make sure that the presence of the agency can be felt most especially by the communities whose livelihood depend heavily on its ports. Thus, the Bayanihan sa Pantalan was born. Waves upon waves of relief operations were conducted in partnership with the private sector and other civic organizations to help those who are in need like porters, dockworkers, as well as the immediate neighboring communities to help them withstand the global pandemic. PPA employees also continued to help by sharing a portion of their salaries to help our countrymen who are most in need. PPA General Manager Jay Daniel R. Santiago said that, in the midst of this pandemic, the agency and its people once again showed their unity and resiliency by working together towards finding ways to provide public service beyond the usual day-today performance of their duties and responsibilities. “It is really overwhelming that the PPA, across all its offices, has moved forward as one unit, contributing to the efforts of the Government as it copes with the challenges that the country is facing due to the pandemic, not to mention the other challenges and emergencies that the country has faced since the start of the year,” GM Santiago emphasized. “The ‘Bayanihan sa Pantalan’ ini-

tiative of the PPA community with the help of other government agencies and civic organizations has provided relief goods and cash assistance to a total of 5,762 porters, dockworkers, PPA outsourced personnel and other persons in need with an overall estimated amount of P2,298,443.83 all over the 25 PPA PMOs,” GM Santiago said. Not only that, PPA made a big splash in helping the country ease the effect of the Coronavirus pandemic to the day-to-day lives of Filipinos by paying in advance its 2019 dividend remittance amounting to P5 billion to help the government finance its anti-COVID-19 measures. It is the biggest dividend remitted by PPA in its 46 years of existence that enabled the PPA to land a spot in the Top 20 Philippine Corporations released by the Department of Finance. Likewise, using the P100-million funding from the Lopez Group of Companies, the PPA—through the guidance of the Department of Transportation headed by Secretary Arthur P. Tugade and in partnership with the Philippine Coast Guard, the Maritime Industry Authority and the Department of Health, with other government agencies, the 2GO Group and Asian Terminals, Inc.—retrofitted the Eva Macapagal Super Terminal inside the South Harbor into a state-of the art, 211-bed capacity Bayanihan to Heal As One COVID-19 Quarantine Center to help ease the demand for such quarantine facilities due to the increasing number of infections in the NCR and its nearby cities, provinces and municipalities. The PPA likewise procured a Stage 3

Ambulance to further prop-up the capability of the Quarantine Center using the fund donation from the Lopez Group of Companies. In partnership also with the management of the Manila International Container Terminal and the Manila South Harbor, the Department of Trade and Industry, the Department of Agriculture, the Department of Finance and the Bureau of Customs, a Joint Administrative Order was issued to successfully address the looming congestion at the Ports of Manila brought about by the non-withdrawal of cargoes due to COVID-19. To further assist port stakeholders, the PPA extended the payment of concession and rental fees by 30 days for all payments falling under the period of community quarantine and likewise extended the Holdover Authority and permits issued by the agency during the quarantine period up to 31 July 2020. Taking the lead from the InterAgency Task Force on the Management of Emerging Infectious Diseases (IATF-EID) and the Joint Task Force COVID Shield, PPA issued a memo easing up the movement of cargoes to and from the ports to address the demands of the international and local supply chains particularly essential supplies amid the pandemic. The PPA also continues to help and support other government programs specifically the Balik-Probinsya Program of the Office of the President, the repatriation of locally stranded individuals, returning overseas Filipinos, seafarers and students. To date, more than 20,000 repatriates were handled and processed in different

ports nationwide and the number continues to grow. While still in the middle of the pandemic, PPA has also successfully completed 14 port projects to boost the connectivity and efficiency of the ports system to address the future demands of

local and foreign shipping. These projects include the ports in Coron, Palawan; Boac, Marinduque; Estancia, Iloilo; Iligan, Lanao del Norte; Jagna, Bohol; Mansalay, Oriental Mindoro; Ozamiz, Misamis Occidental; El Nido, Palawan; Tagbilaran,

Bohol; Malalag, Davao del Sur; Currimao, Ilocos Sur; and Masao, Agusan del Norte. There are also two separate projects for the Iloilo Commercial Port Complex. The PPA was able to complete these projects without registering any COVID-19 infection.

ATI-backed eLearning program for Man

SCREENGRAB of the virtual launch of Project <code/it> in the City of Manila on June 26, 2020

WELL-timed digital learning program that would help Manila’s public elementary students acquire basic computer programming skills has officially taken off with the backing of listed port operator Asian Terminals Inc. (ATI). Project <code/it>, a child-centered computer science and coding learning initiative developed by Ayala Foundation Inc. (AFI) with Microsoft Philanthropies, was launched recently via a live virtual event attended by key officers of

partner institutions and Manila city officials led by Mayor Francisco “Isko” Moreno Domagoso. The initiative is aligned with the distance learning modality advocated by the Department of Education for the upcoming academic year to ensure uninterrupted coursework amid the COVID- 19 pandemic. Project <code/it> aims to empower the Filipino youth in the realm of Information Technology, primarily by immersing and imbuing them foundational skills

in basic computer programming – skills that are in-demand for current jobs, more so, for the future. As the private-sector partner, ATI supports the provisions for trainings, materials, and other requirements for the digital transition of participants across all of Manila’s 73 public elementary schools. An estimated 120,000 students in Grades 3 to 6 and around 300 teachers would benefit from the project which covers school years 2020 through 2022. Project <code/it> is well

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

TY AND DEDICATED PUBLIC SERVICE IN PORTS FOR EVERY FILIPINO markings relative to physical distancing and the establishment of COVID-19 Testing Facilities in select ports. PPA is also partnering with other government agencies like the Department of Health in its anti-COVID-19 advocacies by utilizing all available port platforms to help bring the information to the public. PPA is also eliminating face-to-face transactions by introducing several online platforms like the unified passenger ticketing system, automated payment scheme and automated cargo payment regime to comply with the ‘new normal’ procedures. The agency is also set to complete 22 more port projects this year to further improve operational efficiency of PPA ports. The projects include the Pier 18 rehabilitation and upgrade in Vitas, Tondo, Manila; the construction

MOVING FORWARD

CONSIDERING the high risk of possible COVID-19 infection, the PPA is implementing measures to guarantee that ports remain COVID-free in preparation for the ‘new normal’. The measures include

misting of luggage and cargoes of incoming passengers, mandatory wearing of face masks, mandatory washing of hands before entering any port premises, accomplishment of the PPA entry protocol form for contact tracing,

nila students takes off

aligned with ATI’s dynamic Corporate Sustainability Program, which lists Education and Youth Empowerment as core priorities. This project will be a big help in enhancing the digital knowledge of the youth, eventually developing IT-savvy talent/workforce in the future. “Like port operations, studying and acquiring new knowledge should remain unhindered despite the current health crisis,” said Ian Baking,

ATI assistant vice president for Business Development, noting that the project will provide a safe online learning environment and help both teachers and students adjust to distance learning under the so-called “new normal.” “Project <code/it> is also a proactive intervention to bridge the digital divide, especially in the underprivileged and underserved sectors of Philippine society,” adds Baking.

of a port operations building in Abra de Ilog, Occidental Mindoro; the Balanacan Port expansion project in Marinduque; the construction of the RC Pier and Ro-Ro ramp at the Port of Bansud, Oriental Mindoro; the construction of a back-up area at the Port of Bulalacao also in Oriental Mindoro; the construction of a Ro-Ro ramp and expansion project at the Port of Bulan, Sorsogon; and the construction of the Coastal Access Road project at the Port of Calapan, Oriental Mindoro. Also expected to be finished by the end of the year are the expansion of the Port of Capinpin, Bataan; the reconstruction of the Carmen Port in San Agustin, Romblon; the Cobo Port construction project in Cobo, Catanduanes; and the construction of port operations buildings at the ports of Coron, Currimao,

Masbate, Mauban, Quezon, and Talaga in Mabini, Batangas. The port rehabilitation and upgrading of RC wharf at the Port of Legazpi; the port expansion projects in Matnog, Puerto Princesa, Salomague, Ilocos Sur, Tablas, Romblon, and TMO Pasig; and the rehabilitation of the Port of Tabaco, Albay are also targeted for completion by the end of 2020. More importantly, PPA is taking care of its major asset. Its people. Roundthe-clock supply of COVID-19 protective equipment and other essentials are being provided to all its ports in order to protect its employees, particularly its frontline personnel against possible infection. Alternative work platforms are likewise adopted to further reduce the risk. Campaign materials are posted in strategic plac-

es to remind its employees on the ‘new normal’ procedures. “We cannot do all of these if we do not take care of our people. The employees are the foundation of the success of our agency most especially during this pandemic. PPA is blessed with having a hardworking workforce giving unparalleled public service during this pandemic. Showing what ‘Bayanihan sa Pantalan’ is all about. As their General Manager, I salute each and every one of them. As we continue to march on forward in this fight during our 46th Founding Anniversary, we will show what PPA is all about: Kabalikat ng Bayan sa Pagbangon,” Santiago said. “The PPA remains committed to provide the best service we can as we consider ourselves as soldiers in this battle,” Santiago added.