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Thursday, October 8, 2020 Vol. 15 No. 364

Debt-laden govt eyes privatization of mines

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AN environmental management staff member from the Department of Environment and Natural Resources, dressed in protective gear, takes water samples from one of its stations on Manila Bay on Roxas Boulevard. The department’s Environmental Monitoring and Enforcement Division regularly conducts water quality sampling and monitoring of the bay in all its identified outfalls, including tributaries leading to it, as part of the Manila Bay Rehabilitation Program. ROY DOMINGO

SENATE: REENACTED BUDGET VERY LIKELY, BUT DBM UNFAZED

Continued on A2

By Bernadette D. Nicolas

HE Department of Finance is eyeing the privatization of mines held by the government to raise more revenues as the country is still grappling with the impact of the pandemic. Finance Secretary Carlos G. Dominguez said on Wednesday he has already asked the Privatization Management Office (PMO) to push for the privatization of the Nonoc and Basay mines, among other mining assets of the government.

“In fact, just a few days ago, we had a complete review of the mining assets held by the government through the Privatization Management Office and I have asked them to push the privatization of Nonoc Continued on A2

PESO EXCHANGE RATES n US 48.3770

ASEAN NATIONS MUST FINANCE $3.1-T CLIMATE-TWEAKED INFRA

By Cai U. Ordinario

OUTHEAST Asian countries need to invest $3.1 trillion for climateadjusted infrastructure in the region by 2030 to recover from the pandemic, according to a new report from the Asian Development Bank (ADB). In the report titled Green Finance Strategies for Post-Covid-19 Economic Recovery in Southeast Asia, ADB said the investments are needed to develop and grow green economies and create jobs for

around 650 million people. However, ADB said these investments must be financed by innovative, environmentally sustainable, and climate-resilient financing instruments such as green and transition Covid-19 bonds, blue credits, and green securitization efforts. “A green recovery for Southeast Asia is needed to encourage long-term, sustainable job creation in a region with more than 650 million people,” said ADB Vice President Ahmed M. Saeed, who will speak

By Butch Fernandez

ITH the railroading by the House leadership of the 2021 budget bill, Senate leaders on Wednesday said a reenacted budget was possible in the early part of next year, but promised to work overtime to do its part in scrutinizing the money measure. Nonetheless, the Department of Budget and Management is still optimistic the proposed P4.506-trillion 2021 national budget would be passed on time. “We are still hopeful and positive for the passage of the FY 2021 budget on time; hence, we have not considered the reenacted budget in our assumptions,” Budget Assistant Secretary and spokesperson Rolando Toledo said in a message to the BusinessMirror. “If ever, the DBCC [Development Budget Coordination Committee] should sit down to look at the implications and review our assumptions.” This, despite Sen. Panfilo Lacson’s statement that it is now “impossible” for Congress to pass the budget on time after the House of Representatives suddenly approved on second reading the proposed national budget and immediately suspended the session until November 16—in what was seen as a bid to avoid a speakership showdown. Speaker Alan Peter Cayetano has been under pressure to honor the termsharing agreement that President Duterte brokered between him and Marinduque Rep. Lord Alan Velasco in 2019, under which Cayetano takes first crack at the post but yields it to Velasco in mid-October, just before Congress goes on a monthlong break.

Senators dismayed

ON Wednesday, Senate President Vicente Sotto III said the House move was “truly disappointing” and added, “we’re really staring at the possibility of a reenacted budget.” Sotto said the Senate has never been known for railroading the budget, because it always takes its mandate to scrutinize the money measure seriously. Lacson, citing the sudden suspension of sessions till November 16 by the House of Representatives, said senators are concerned this is likely to affect timely passage of the proposed P4.5-trillion 2021 budget bill.

See “Budget,” A2

Continued on A2

n JAPAN 0.4580 n UK 62.3096 n HK 6.2423 n CHINA 7.0987 n SINGAPORE 35.5008 n AUSTRALIA 34.3525 n EU 56.7656 n SAUDI ARABIA 12.8978

Source: BSP (October 7, 2020)

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A2 Thursday, October 8, 2020

ASEAN NATIONS MUST FINANCE $3.1-T CLIMATE-TWEAKED INFRA Continued from A1 at the forum on October 9. “It will boost equitable growth, protect the environment, and help governments meet the Paris climate agreement targets. This timely book shows how green finance can spur growth in the region and overcome the challenges of climate change and a global pandemic,” he added. ADB said green finance refers to all financing instruments, investments and mechanisms that contribute to climate and environmental sustainability goals. These aim to reduce greenhouse-gas emissions, boost climate resilience, and improve environmental protection, such as air and water quality, ecosystems and biodiversity. These have been in demand given climate-change efforts are in need in regions such as Southeast Asia. For one, cities and rivers in the region are among, if not, the most visible manifestation of the impact of overusing and polluting natural capital resources. The report said over half of the plastic entering the world’s oceans can be traced back to five growing economies, four of which—Indonesia, the Philippines, Thailand and Vietnam—are in Southeast Asia. It also noted that Myanmar, the Philippines, Thailand and Vietnam ranked in the top 10 countries most affected by extreme weather due to climate change in the last 20 years, according to the Global Climate Risk Index. With this, ADB said governments should also use green finance to build upon national green targets and programs and steer away from fossil fuel or carbonintensive investments. While some countries have em-

barked on green projects and bonds, ADB said much more needs to be done to help Southeast Asia’s economies meet their large financing needs and accelerate economic recoveries in a sustainable manner. The Philippines, ADB noted, has embarked on the Green Program which aims to provide P2.5 billion in assistance to make 145 cities more livable and sustainable. The program is already part of the “Build, Build, Build,” the national infrastructure development program of the government of the Philippines. “[The report] aims to emphasize the critical role that such instruments can play in leveraging scarce public sector funds to mobilize green funds from all sources, such as private pension and insurance funds, commercial banks, and the capital markets. Blending such funds will be critical to Southeast Asia’s recovery from Covid-19 amid the worsening infrastructure financing gap, which was at more than 60 percent before the pandemic hit,” said Association of Southeast Asian Nations (Asean) Catalytic Green Finance Facility (ACGF) Unit Head Anouj Mehta. The ACGF is an ADB-administered fund and is part of the Manila-based multilateral development bank’s support for green infrastructure, including thematic bonds, national green finance vehicles, green projects, and other initiatives. With a growing green finance market in developing Asia, ADB committed $6.5 billion in climate finance from its own resources in 2019. ADB aims to reach a cumulative $80 billion from 2019 to 2030 in climate financing under its Strategy 2030, with a commitment to make 75 percent of all ADB projects climate relevant by 2030.

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Debt-laden govt eyes privatization of mines Continued from A1 mines, of Basay mines and all the other mines held by the government,” Dominguez said during the 46th Philippine Business Conference by the Philippine Chamber of Commerce and Industry, the country’s largest business organization. He also said he has been pushing for the revival of the mining industry “because they provide good jobs in the rural areas.” He added, “We are also working with the DENR [Department of Environment and Natural Resources] and MGB [Mines and Geosciences Bureau] to push mining to open again.” Sought to clarify how much would be raised from the planned privatization of mines, Dominguez told reporters: “Valuations are being updated.” Dominguez’s remark comes just almost a week after he expressed readiness to work on the privatization of gaming ac-

Budget… Continued from A1

“All the senators’ first reaction, of course, was the national budget,” Lacson said in a Zoom interview. “That was our immediate concern.” He noted that in the House schedule based on Cayetano’s pronouncement, their last day of submission of amendments is on November 5. “So, if November 5 is the last day of submitting amendments in the House, the budget is good as reenacted,” Lacson said, partly in Filipino. “There’s no way for the Senate to finish the budget, and even [for] Malacañang to approve the budget before the year ends.” Sen. Juan Angara, however, said Speaker Cayetano committed to transmit advanced copies of the House version of

tivities of the Philippine Amusement and Gaming Corporation (Pagcor) and Philippine Charity Sweepstakes Office (PCSO) to generate more funds for the government. Instead of the government imposing new taxes to shore up funds, Senate Minority Leader Franklin Drilon urged the government to privatize the gaming industry and sell public assets such as Camp Aguinaldo and Camp Crame.

Need to pay debts

it secures more borrowings to finance its spending needs amid the Covid-19 pandemic. For this year, gross borrowings of the national government from January to August have also reached P2.47 trillion, equivalent to more than 80 percent of the alltime-high P3-trillion borrowing program set by the Development Budget Coordination Committee (DBCC) this year amid the Covid-19 pandemic.

DOMINGUEZ earlier told the Senate that by late 2021 or early 2022 they “will start looking at additional revenues to pay for the heavy indebtedness that we are incurring this year.” By the end of this year, the national government expects its outstanding debt to reach P10.16 trillion, up by 31.42 percent from last year’s amount. As of end-August, the country’s debt stock has already swelled to P9.6 trillion as

Attracting investments

the budget to the Senate and shorten certain parts of the process, including bicameral talks to reconcile Senate and House versions of the budget bill. Still, Lacson said of the prospects of passing the measure within the year, “physically impossible.” He explained that if November 5 is the last day of submission of amendments in the House, the earliest the House can transmit it to them is on November 20. “Of course, we will need one week to study it.” Then, he added, ”It will be sponsored for plenary deliberations…that’s another two weeks, so that is already December. Once on the floor, it’s not likely to finish deliberations in one week. So, it is likely to stretch up to December 20. And then, nearing Christmas, there will be bicameral conference meetings, after which the enrolled bill must be printed,” and subsequently submitted to the Office of the President.

Even if Malacañang takes only one week to review the bill before it exercises line-item veto to approve the bill, “the year would be over.” Lacson asserted that what was lost as a result of the “sudden suspension of their session…is one month effectively.” If the House had only completed deliberations until October 14 and given the bill to senators before the break, it would be very likely for the budget to be enacted into law before December 31, Lacson said.

ON the same forum, Dominguez also took a swipe at the Board of Investments—the investments promotion arm of the Department of Trade and Industry—for not doing its job to proactively bring in investments into the country. Under the proposed Corporate Recovery and Tax Incentives for Enterprises bill (CREATE), Dominguez said they even gave the BOI the ability to tailor-fit the in-

DBM unfazed

RESPONDING to Lacson’s statement, DBM’s Toledo said, “It’s too early for us to say that we will be having a reenacted budget for 2021,” adding that some senators would say that they will find a way for the timely passage of the budget. Nonetheless, Toledo pointed out that the 2021 national budget is “one of the key instruments of the national government

centives for a particular industry. Dominguez said the BOI should identify the industries that the country wants and offering them packages of incentives rather than passively waiting for investments to come, which he said is “not the role of BOI.” According to the DOF chief, “I said the most important thing is to directly talk to these companies who have the potential of moving out and offer them [package of incentives]. Unfortunately, and you know I don’t want to criticize the BOI or anything, but the BOI does not see itself as a marketing organization. They do not identify which industry should come in,” he said. If passed into law, the CREATE bill will bring down corporate income tax to 25 percent, from 30 percent, on one hand. On the other hand, it will rationalize incentives, including the 5-percent tax on gross income earned paid in lieu of all local and national taxes, granted to investors.

to respond to the ongoing Covid-19 pandemic.” “The government should continue pump-priming the economy by focusing spending on the improvement of health systems, increasing investments on infrastructure including digitization, ensuring food security, among others,” he added. In 2019 the government was also forced to operate on a reenacted budget for months since the passage of the national budget got delayed due to a number of issues, including alleged last-minute insertions and realignments by lawmakers. Section 5 (7), Article VI of the 1987 Constitution reads: “If by the end of any fiscal year, Congress failed to pass the General Appropriations Bill [GAB] for the ensuing year, the General Appropriations Act [GAA] for the preceding year shall be deemed reenacted, and shall remain in force and in effect until the GAB is passed by Congress.” With Bernadette D. Nicolas

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Editor: Vittorio V. Vitug • Thursday, October 8, 2020 A3

DOJ chief orders prosecutors to prioritize illegal-drugs cases By Joel R. San Juan

@jrsanjuan1573

USTICE Secretary Menardo Guevarra has directed government prosecutors to speedily resolve drug cases in line with President Duterte’s order to immediately destroy illegal drugs confiscated in various police operations. “In accordance with the President’s

directive, the DOJ will issue a memorandum circular to all prosecutors investigating drug cases to give top priority to the resolution of the same, to file the informations ASAP [as soon as possible], and to move for a court order to conduct ocular inspection of and destroy the seized drugs, precursors, etc., within the time specified in RA 9165 [Comprehensive Dangerous Drugs Act of 2002],” Guevarra said in

response to Duterte’s order. Guevarra explained that the President’s directive to immediately destroy illegal drugs seized or confiscated by lawenforcement agents should be taken in the context of Section 21(4) of the Comprehensive Dangerous Drugs Law that requires the trial courts, within 72 hours from the filing of the criminal information, to conduct an ocular inspection of theillegaldrugs,precursors,parapherna-

lia, etc. and thereafter proceed to burn, or destroy the same, through the Philippine Drug Enforcement Agency (PDEA) within 24 hours after the inspection. A representative sample of the seized drugs would be retained for use during the trial of the case. He said the President wanted to immediately destroy confiscated illegal drugs to prevent these from being “recycled” by erring law enforcers.

“Thus, law-enforcement agents must file the criminal complaints immediately so that the destruction of the seized drugs could proceed as early as possible,” he added. It can be recalled that only last July, the Supreme Court issued a circular ordering the regional trial court judges handling illegal-drugs cases to immediately conduct an inspection and thereafter order the destruction

of the seized or surrendered dangerous drugs, particularly those weighing 5 kilos or more. The order was issued after Court Administrator Jose Midas Marquez was informed by the Philippine National Police that seized or surrendered dangerous drugs remain in the custody of enforcement agents due to the delayed issuance of court orders for their destruction.

A4 Thursday, October 8, 2020

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6K construction workers lose jobs anew A

LMOST 6,000 workers in the construction sector lost their jobs in the last three weeks based from the latest report of the Department of Labor and Employment (DOLE). This makes it the industry group that has the biggest number of permanently displaced workers from September 14 to October 3, 2020. During the said period, DOLE said the number of permanently displaced workers in the construction industry rose to 19,621 from 13,819.

Other industries, which registered the most number of displacement in the given period are the administrative and support service activities (+4,640), other service activities (+4,156), manufacturing (+2,986), accommodation and food services activities (+2,305), and wholesale and retail trade; repair of motor vehicles and motorcycles (+1,154); and transport and storage (+1,151). From Januar y to October 4, 2020, DOLE registered 225,643 permanently

displaced employees. Of these figures, 203,732 were retrenched by 11,798 establishments nationwide, while the remaining 21,911 were permanently displaced workers. Most of these workers are from the National Capital Region (116,089); Calabarzon (38,507), and Central Luzon (23,824). DOLE was also able to register 3.27 million workers, who were temporarily displaced. Samuel P. Medenilla

Beep card subsidy just 2.5 days of MRT support Today, each card is priced at P80, which, according to the company, is just a fraction of the total cost of production, shipment, and distribution. This means each card issued to commuters is already subsidized by the company. Currently, AFPI provides contactless fare collection solutions to various land transport modes, including the Edsa Busway System. It provides the same solution to the overhead train systems. The new memo now requires AFPI, as well as other AFCS operators, to provide free reloadable tap-and-go cards to commuters using land transport modes. Asked if the government will spend money to help implement this new regulation, Transportation Assistant Secretary Goddes Hope O. Libiran said that is still under study, as “there are solutions presented to us by other AFCS providers that will not charge commuters for contactless payments like QR codes.” The LTFRB memo is effective October 9. The government earlier asked AFPI to give the cards for free. However, AFPI has said it will only distribute 125,000 beep cards for free, which by current retail price, costs about P10 million in discounted retail costs.

“We note the offer of Beep to provide 125,000 cards. But that is different from the actual call which is for Beep to waive their card fee [P80] and other charges such as reloading fee, convenience fee, among others. We will discuss their offer in due time, but to date, the no beep card no ride policy is still suspended in the Edsa Busway. A dual payment system will still be honored,” Libiran said. Recto weighs in Senator Recto took up the cudgels for commuters, prodding the government to shoulder the P80 cost of beep cards for other commuters. Recto computed that if the Metro Rail Transit (MRT) ride subsidy is P45, the cost of half a million free Beep cards is 2.5 days’ worth of government subsidy. He recalled that in 2018, the MRT ferried 104.28 million passengers and got P4.66 billion in government subsidy that was used to pay for two-thirds of total rental equity payments of P7.23 billion. “So, how much is the government subsidy per ride? About P45,” he said, citing MRT ticket sales in 2018 reached P2.07 billion but was “not enough” for the operations and obligations of this Edsa light rail line.

continued from a16

At present, he noted that subsidy fuels mass transport, courtesy of taxpaying masses, “including those who have never seen a train.” Recto recalled that this principle is reiterated in this year’s P6-billion appropriated subsidy to MRT, adding that when farebox income falls short of financial obligations, the subsidy covers the deficit. The same is true for the Philippine National Railways (PNR), which was given “P1.86 billion in subsidy, seven times bigger than its farebox collection of P255 million in 2018,” noted Recto. Even if the Beep Card—or whatever cashless payment card—is given by government or private sector to 500,000 commuters, the total is just P40 million, equivalent to “2.5 days of budgeted subsidy for MRT this year,” Recto said. “So, if we are generous to corporations, the more we should be to small jeepney and bus operators.” He asserted that the other fiscal perspective that argues for free cards is that the P40 million is a tiny one-fifth of 1 percent of the P20.71 billion that a generous DOTR voluntarily cut from its 2019 and 2020 budgets and turned over to the government’s anti-Covid fight. Lorenz S. Marasigan and Butch Fernandez

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Thursday, October 8, 2020 A5

CSC slaps admin sanctions vs PhilHealth regional VPs

By Samuel P. Medenilla

@sam_medenilla

EVERAL officials of the Philippine Health Insurance Corp. (PhilHealth) are now facing sanctions from the Civil Service Commission (CSC) for their alleged involvement in illegal activities. “ We w i l l be releasing a nyt i me soon t he c a ses rega rding t he Ph i lHea lt h of f ic i a ls. T h is w i l l be dea l ing on t heir

prevent ive su spension a nd reassig nments,” CSC Commissioner A i leen Li zad a told t he BusinessMir ror i n a V iber

message on Wed nesd ay. She, however, stressed the sanctions will cover mostly PhilHealth’s regional vice presidents and not the seven executives of the state insurer, who were flagged by the inter-agency task force led by the Department of Justice (DOJ). T he t a sk force ea rl ier s a id it w i l l be f i l i ng c a ses at t he O mbud sm a n a ga i n st t he follow ing Phi lHea lt h e xec ut ives: for mer Ph i l Hea lt h C EO a nd P r e s i d e nt R i c a r d o M o r a l e s ; Sen ior V ice P resident Jov it a A ragona; Infor mation and Tec h nolog y a nd M a n a gement

Depa r t ment Act ing Senior Manager Calixto Gabuya; Fu nd M a n a gement Sec tor Se n io r V i c e P r e s i d e nt R e n at o L i m si aco; Sen ior V ice P resident I srae l Pa rga s; E xec ut ive Vice President a nd concur rent OIC-P resident a nd C EO A r ne l De Jesu s; a nd d iv i sion c h ief B obb y C r i sostomo. CSC initiated its investigation last month to look into PhilHea lth ’s repor ted anoma lous Interim Reimbursement Mechanism (IRM) and purchase of overpriced information and community technology (ICT) equipment by PhilHealth.

PhilHealth is now facing a major reorganization as part of the government’s attempts to rid it of erring officials and personnel.

Online exam

MEANWHILE, CSC said it’s now considering the possibility of holding an online civil service exam to minimize the possible e x posure of e x aminees f rom Covid-19. Lizada said they instructed their Examination, Recruitment and Placement Office (ERP) to come up with the study before the end of the year.

“During this time, they will be consulting the regional offices, as well as other providers, which could administer or serve as proctor for the online exams,” Lizada said. A mong t he ma in consider at ions for t he st udy w i l l be how to m a i nt a i n t he i nteg r it y of t he on l ine e x a m w it h t he inc lusion of a nt i- c heat ing measu res. A side f rom CSC , t he Professiona l Reg ulation Commission a l so ea rl ier a n nou nced it i s a lso st udy ing t he implement at ion of a n on l ine l icensu re e x a m.

DOH-Calabarzon opens acute psychiatric unit in Batangas

N time for the commemoration of the National Mental Health Week, the Department of Health (DOH)– Calabarzon (Cavite, Laguna, Batangas, R izal, Quezon) inaugurated on Wednesday the Acute Psychiatric Unit (APU) at the Batangas Medical Center. Regional Director Eduardo C. Janairo stated that the tasks of acute psychiatric in-patient care are to keep patients safe, assess and evaluate their problems, treat their mental illness, meet

their basic care needs and provide physical health care within a period of days. “Most persons with mental disorders don’t seek medical help. Kaya napakaimportante na malaman ang mga palatandaan upang mabigyan agad sila ng pangunahing lunas. Kadalasan sa ating pamilya o kamaganak ay nagkakaroon tayo ng pakiramdam na ‘parang may hindi tama’ sa kanilang paguugali at pag-iisip, we must be able to recognize these signs before it comes full blown,” he emphasized. “Ment a l hea lt h must

beg in in c h i ld hood. Dapat pangalagaan nat in ang at ing mga anak . T hey must g row up w it h t he feel ing of sa fet y a nd sec u r it y a nd protected f rom a ny ha r m,” he added. Among the five most common mental disorders that can be treated in the APU are schizophrenia, bipolar disorder, depressive disorder, and other psychotic disorders. According to Dr. Anne Marie Pineda, chief of the Psychiatry Department of the Batangas Medical Center

(BatMC), acute psychiatric inpatient hospitalization is a high level of care intended to meet the needs of individuals who exhibits emotional and behavioral signs that put them at risk of harm to themselves, or to others. “Some individuals are incapable to render or unable to care for themselves. We have to confine them for treatment with the presence of a 24-hour staff complete with medication and supervision,” she explained. The funding and construction of the APU

building was made possible through the DOH Facility Enhancement Program (HFEP). It is a 10-bed unit that will provide treatment to more severely ill mental health patients, for a duration of less than 30 days. Patients required to have long-term care will be transferred to another facility with a higher level of care. The opening of the APU will also complement the ongoing efforts of the mental health program of the regional office to reach out to persons with

mental disorders through its “Kapit-Bisig Helpline” through https://www. facebook.com/kapit.bisig. helpline from 10 a.m. to 12 noon and 1 p.m. to 3 p.m. every Tuesdays and Thursdays where those who are stressed out due to the Covid-19 pandemic and other mental health concerns can seek help. “The establishment of the APU in Calabarzon is the realization of DOH’s vision for BatMC to be a psychiatric center in the region,” Janairo said.

Agriculture/Commodities Thursday, October 8, 2020 • Editor: Jennifer A. Ng

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Squeezed by pandemic, carabao milk entrepreneur dishes out ‘bull shit’ By Jasper Emmanuel Y. Arcalas

@jearcalas

OR the almost 40 years that Danilo dedicated his life to agribusiness, it revolved on one thing: innovation. Danilo V. Fausto started DVF Dairy Farm Inc. with 10 carabaos and days full of laughter from hometown neighbors in Talavera, Nueva Ecija. After all, why would someone buy 10 carabaos when one has less than a hectare of land? Worse, he wanted to venture into carabao milk sales. Hilarious, indeed, Fausto recalls. The year was 1988. “I was the laughingstock. Nasisira na raw ang ulo ko. Bakit ko raw gagatasan ang kalabaw [They said I was crazy. Whoever thinks of milking a carabao]?” he tells the BusinessMirror. “But little they did know, I already foresaw our

A pioneering Novo Ecijano who started milking carabaos 40 years ago puts his innovative spirit to work in the pandemic— diversifying his products, such as producing organic fertilizer, just to keep the business afloat and jobs intact. current situation 30 years ago.” But he wanted to turn that laughter into amusement, er, a lesson that would improve the lives of his hometown’s farmers—that this ruminant farm animal they only know to use for rice farming and transportation could bring them more profit. First on the list: Establish a cooperative, drawing inspiration from how India developed its dairy industry from one small cooperative to becoming the world’s biggest milk producer. Thus was Talavera Dairy Cooperative born. Second: Learn how to pasteurize milk to extend the shelf life. Third: Find bottles of sioktong. Fourth: Find bottle caps used in patis (fish sauce) bottles. Fifth: Buy half-size gasoline

drums from petrol stations for P200 each and an industrial burner for P1,200. Sixth: Go to Central Luzon State University and ask for milk cans. Lastly: Purchase a pedicab worth P1,500 and empty cases of soft drinks to serve as baskets for the milk bottles. “No one believed me [when I said] that I only spent P5,000 to kick-start my business. And I learned pasteurization from just reading,” Fausto said. “I did everything on my own and I delivered the bottles straight to their homes before 6 a.m. I collected their payments every Saturday.” And since then, Fausto just expanded the products he was selling: he learned how to make kesong puti [white cheese] from UP Los

Baños and he pirated a pastillas maker to diversify his business. “By 1989 we started the cooperative and the farmers who used to laugh at me, became part of it. And all ventured into carabao milk,” he said. “I proved to them that they could earn more from what they thought is just a mere carabao.”

Talavera’s pride

Fast forward to today: Fausto’s dairy business has a capacity of 800 liters per day, and he sources milk from all the dairy farmers within 20 kilometers of his facility in Talavera, Nueva Ecija. Plus, his facilities are all manned, bringing employment to his hometown, he notes. And DVF Dairy Farm Inc. now offers flavored yoghurt drinks,

chocolate carabao milk, greek yoghurt, espasol de leche, mozzarella cheese, all from carabaos. The business was doing well as he had created a niche market with the least competition. The country virtually imports 99 percent of its milk supply, all of which come from cows.

Covid hits

And then, the Covid-19 pandemic happened. Fausto’s business was not spared from the consequences of movement restrictions to arrest the spread of Covid-19. Fausto lost key markets such as hotels, restaurants, and half of the 200 supermarkets where his products are available and used. Fausto took the problem headon and did what he knows best: innovate. He hired a group of people to focus solely on revamping his business’s web site and market their products online, especially on social media. Eventually, his dairy products were already Continued on A8

Home improvements made easy with the AllHomeClick app

HOPPING for home improvement and construction needs used to be a complicated and laborious endeavor. Rummaging through several stores and hurriedly shuttling along aisles to tick every box off your home construction checklist takes hours, if not days.

Well, home improvement just got a whole lot easier with the arrival of the AllHomeClick app — AllHome’s dedicated mobile app designed to provide a fun, easy, and convenient online shopping experience. The AllHomeClick app is the first of its kind, geared specially for home shopping essentials. Anybody with a smartphone can browse the top local and international brands in hardware, furniture, TVs, kitchen and even home appliances.

One click away from builder’s haven

GETTING your home and hardware needs used to be a chore. But with the new AllHomeClick App, finding all your home and hardware needs will be as easy as clicking. Experience the same AllHome store feel while browsing within the app. Choose from any of the more than 10,000 different items on hand, from building to furnishing, all the things you will ever need is at AllHome. The AllHomeClick App offers everything under the following categories: Hardware, Construction, Tiles and Sanitary Wares, Furniture, Appliances, Linens, and Homewares. This new app lets you enjoy the same AllHome service and convenience, even if there is no branch near you: whether you’re a homeowner building your own, fixing the current one, or a construction professional looking for the right materials and tools for the job.

App functions and features

EASY-TO-USE and intuitive, the AllHomeClick App equips users with the necessary tools in making the important purchase decisions regarding home improvement and

construction. Aside from having complete access to a wide variety of products on catalog, the app has a built-in order history that can serve as reference for future purchases. For smart shoppers looking for the best deals, all the latest promos and discounts will be available within the app, popping on screen as sale alerts and notifications. In addition, app users will also have exclusive access to special vouchers, coupons and promo codes. Users can also earn points by using their AllRewards Card, if already a member. Under the tab AllHome Tips and Deals, app users will gain access to articles and announcements containing home improvement tips and other deals. There’s also a Store Locator to find the nearest AllHome store in the area. If the user needs additional help, a Live Chat function is available where a customer representative answers inquiries and concerns.

Add to Cart: safe and easy shopping IF you ever felt the need to stock on home improvement and construction supplies, easy shopping at AllHome can be done with just a click away through the AllHomeClick app. No need to physically go to the store, just log in and browse the app from the safety and comfort of your own home. And with low shipping fees, shopping online for your home has been more convenient than ever. The AllHomeClick app is a ‘modern-day’ home depot or a mecca for all of your home needs. Find all your home essentials and be the first to grab the exclusive deals, promos and discounts — all under one super app. For the latest AllHome exclusives and updates, download the AllHomeClick app on Android and IOS or visit www. allhomeclick.com

Camella SmartHomes:

Unlocking Healthier Homes with Technology

IMES are changing fast, and so is our lifestyle. As the safest sanctuary during times of crisis, your home is your first line of defense against visible and invisible threats. But is it ready to address your current and future needs?

After over four decades of pioneering townships and building quality homes for Filipino families, Vista Land's flagship brand for affordable housing, Camella now leads the movement of integrating smart home technology to its houseand-lot developments—the first in its niche. Camella SmartHomes upgrades your regular home into

a responsive space that enables users to command essential house functions from mobile devices.

Go Smarter on Your Home Functions

THIS new offering from Camella unlocks healthier possibilities for your home through technology. With just your mobile phone, you can now open your door without

coming in contact with the knob. If you are keener on security, you can also register your biometric data and unlock your ports using just your fingerprint. Another alternative is using a password, which would open your home just like it would your smartphones. Camella SmartHome's touchless technology also makes it easier to control your lighting. More than just turning them on and off, the technology comes with pre-programmed scenes for your interior settings. This includes your lights and air conditioning system, to name a few of the many devices that you can connect and automatically activate with a single touch upon leaving or arriving home. You may as well customize these settings

to get the perfect ambiance you want for your home. Ever found yourself waking up craving coffee and wishing you can conveniently turn on

A row of Camella’s smart-ready houses.

ACTUAL fingerprint door locks of Camella’s SmartHomes.

INTERIOR of Camella’s mobile-controlled living room.

CAMELLA’S Smart-enabled kitchen and living room.

your coffeemaker from your bedroom and come down with your fresh brew waiting for you? With Camella's SmartHome, you can do precisely that using only your phone. By consolidating appliance functions into your mobile device, this technology makes your home more manageable and resilient against invisible threats by reducing your contact with your usual hightouch surfaces.

Go Smarter on Your Home Security

CAMELLA’S smart-ready Freya.

CAMELLA'S smart technology additionally boosts your home's defense against physical threats with its enhanced security features. The SmartHome comes

with programmable alarms, smoke detectors, motion detectors, and door and window contact sensors connected to a mobile device. This enables homeowners to have realtime notifications from suspicious activities at home wherever they may be and gives them the power to remotely secure their homes.

Go Smarter on Energy Efficiency

LIKE its security features, Camella SmartHomes also links switches and wall sockets for lights, chargers, and appliances into the smart network. With this, users can easily monitor their plugged devices making energy management more straightforward and doable.

The installed motion detectors also make energy-saving more efficient by turning lights on and off upon opening and closing doors. In addition to its spacious home offerings and ecofriendly installations, Camella SmartHomes is the latest to the brand's efforts to provide healthier options for safer sanctuaries. The challenges of time may come and pass, but its effects on the landscape of our external and internal spaces will surely stay. With Camella's SmartHomes available in select areas, you now have the power to live the healthy lifestyle you want in the township where you could feel safe and bloom. Visit www. camella.com.ph to learn more.

Agriculture/Commodities Thursday, October 8, 2020

BusinessMirror

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Squeezed by pandemic, carabao milk entrepreneur dishes out ‘bull shit’ Continued from A6

available on Lazada, Grab, Shopee and other online platforms. Still with the same commitment of delivering fresh milk to consumers, Fausto mobilized his fleet of trucks to deliver carabao milk-based products straight to Filipinos’s doorsteps in Manila, Cabanatuan, Talavera, San Fernando and Angeles, Pampanga. Delivery fee is also waived when products purchased are worth P500 and above. And, cognizant that Filipinos would have to tighten their belts to survive the pandemic, Fausto ventured into producing cow’s milk, which is priced at half of his regular carabao milk product. He called it Milk Love...Milk Love Not War, he says. He also offered pastillas in fewer quantities, such as 5 pieces and 10 pieces, which he did not have before the Covid-19 pandemic. “Well, you just have to be innovative and agile,” he said. Fausto pointed out that due to Filipinos’ heightened awareness

about the need to stay healthy amid the Covid-19 pandemic, the demand for his yoghurt products rose. From a mere 2 percent share of his total sales, it became 20 percent today. “Probiotic is what you need to kill or prevent the bacteria even before it hits you. And you drink antibiotics, when the bacteria is already in your body,” he said. “Yoghurt has probiotic.”

Bull shit

Perhaps one of the most clever innovations that Fausto initiated in this pandemic was venturing into producing organic fertilizer from carabao manure. Fausto, together with their cooperative, star ted processing their carabaos’ manure into organic fertilizer to take advantage of the booming urban farming and rise of plantitos and plantitas today. The process did not require expensive ingredients or raw materials, most of which are available in every home. Fermented rice wash, milk, molasses, Red

Horse (yes, the beer we drink) and weeks-long of patience were all that was needed to produce the organic fertilizer. And the name of their organic fertilizer? Honest to Goodness Bull Shit. They sell it for P35 per kilogram at wholesale, while it is being sold at P40 to P45 per kilogram at retail. Fausto said they are slowly surviving the pandemic and demand is picking up little by little. He has not earned a salary for the past six months, he said, but what matters most is that they continue to innovate to sustain their operations and prov ide farmers income and employment during these trying times. “That has always been my vision to provide local employment and uplift farmers’ lives. I told my son, who will be my successor, that if the vision of the company is no longer fulfilled, then you better close this company,” he said. “No matter how much money we are making, if we are not achieving the purpose for which this company was established—even after I am gone—it is useless,” he added.

News

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Thursday, October 8, 2020 A9

V for Volatility: How market players battle headwinds with versatility

By VG Cabuag

@villygc

ORRY, Bruno, you can neither find Versace nor a trader on the floor. Blame that on either the pandemic or the lockdown measures against it as local trading in the stock market has become “floor-less.” And it’s a “new normal” that Philippine Stock Exchange President and CEO Ramon S. Monzon explained to the BusinessMirror borne out of preparations. “I think the pandemic highlighted the importance of having a sound and tried and tested business continuity plan,” Monzon said. “In our case, we had to immediately adopt a floor-less trading for the first time” in the history of the PSE. “I would say that the business continuity exercises we do every year helped in the smooth transition to a full offsite trading,” he added. Monzon’s view captures the idea of what many cite as the “New Normal.” With much of the year now spent on lockdown, people now have a fair concept of how this new normal looks and feels like. If one still has a job, working from home previously frowned upon by Bundy-clock watchersis now a regular occurrence, especially among office workers. Meetings and events of all types are conducted through video conferencing applications despite security risks and spotty Internet connection.

its most volatile in history; sending the benchmark PSE index to reach an eightyear low of 4,623.42 points. The seemingly free fall in share prices triggered the circuit-breaker rule in March, then only the second time the measure was applied since it was first adopted in 2008. According to the rule, trading will be halted for 15 minutes if the main index falls at 10 percent. The circuit breaker rule was tripped several times as a slew of investors dumped their holdings. With the persistent volatility, the PSE decided to tweak trading rules. Trading hours were shortened, closing by 1 p.m. instead of 3:30 p.m. The PSE applied a 3-level circuit-breaker rule depending on how steep the prices were falling. It also implemented a full off-site trading for all brokers. These tweaked rules and the tweaking itself had the backing of the Securities and Exchange Commission (SEC), which also revisited and re-crafted its own rules. The regulator did so to create some sense of normalcy, especially during the time when senior company executives succumbed to the coronavirus disease of 2019 (Covid-19) and died.

Interacting online But for the stock market and its players, the one thing that stayed in the new normal is volatility.

V for volatility

IN mid-March, even before the first lockdown measure was imposed on key cities of the country, trading was at

AMONG the many directives the SEC adopted were to allow corporations to conduct board, stockholders’ and members’ meetings remotely. “Aside from allowing directors, trustees, stockholders or members to participate in meetings through remote communication to minimize face-toface interactions, the Commission encourages corporations to explore and

implement all necessary measures to prevent the further spread of Covid-19,” SEC Chairman Emilio B. Aquino said. Aquino said that the pandemic “has hastened our efforts to recalibrate how we do things at the Commission so that we may serve the public better.” He added, “It has underscored the value of our ongoing digital transformation, in particular, in making our services more accessible, reliable and efficient.” The SEC also worked overtime to allow companies to pursue their moves to go public by accepting registration statements via electronic mail to the Commission’s markets and securities regulations department. The regulator also allowed payment for the submission through banks and accredited financial intermediaries. It also allowed the online submission of other official documents.

Local debt market

And while the government became busy locking down localities and curbing people’s mobility, financial executives themselves were also busy raising money. Cash, indeed, is still king in times of crisis. With rates plunging the yield curve of debt papers with maturity of one month to 10 years plunged by at least half since January many went overseas to float their respective dollar-denominated bonds. This was never before seen in the history of corporate fundraising. This tack was adopted after the US Federal Reserve allowed its interest rates to fall at near-zero percent. From January to July, a total of $6.8 billion were raised offshore, with Jollibee Foods Corp. as the biggest with

a $1.2-billion bond float. SMC Global Power Holdings Corp., PLDT Inc., JG Summit Holdings Inc., BDO Unibank Inc. and Globe Telecom Inc. all sold $600 million each overseas. At the local debt market, funds raised reached more than P1 trillion in January to July compared to the P629.9 billion raised for the full year of 2019, according to data by First Metro Investment Corp.

Listings, IPO

BOND listings at the Philippine Dealing and Exchange Corp. soared to more than P300 billion, with the Ayala group leading the way and the Bangko Sentral ng Pilipinas selling its own securities at the exchange. As of end-September, there were 26 new listings at the Philippine Dealing and Exchange Corp. for the year to reach P302.83 billion. These listings pushed the total level of tradable corporate debt instruments to P1.48 trillion that were issued by 55 companies and comprised of 203 securities. For the new listings at the PSE, the proceeds of which were mostly for company expansion, only two companies were brave enough to undertake their initial public offering: MerryMart Consumer Corp. of businessman Edgar J. Sia II and Areit Inc., the country’s first real estate investment trust.

Yields, averages

All these activities in the capital markets could be mistaken as a vibrant market; it is quite the opposite. Most fund-raising activities of companies were meant for liability management: taking in new loans with lower rates and retiring expensive debts. Only

a handful of these activities were meant for capital expenditures to expand the business. Since January, about P3.31 trillion worth of market capitalization at the PSE was wiped out; reaching P13.32 trillion at the start of October. Foreign investors continued to dump local shares and were net sellers at P104.53 billion. Average daily trading was only at P5.78 billion about half of last year’s daily average as investors continued to stay at the sidelines mainly on fears of the “V” word: volatility. Some have even questioned if it’s still wise to keep their money at the equities market; or take it somewhere else.

Compounded return

LUIS A. LIMLINGAN, managing director at broker Regina Capital Development Corp., pointed to data and Robert Frost’s poem “The Road Not Taken” in limning the market and the choice of whether it’s still wise to park one’s money there. “If you look at the historical data, it has always been proven that stocks in the long run are much preferred than keeping it in cash,” Limlingan told the BusinessMirror. “Not only do you beat inflation, but the compounded returns are much better.” According to Limlingan, “a combination of where one’s money should be placed is always recommended.” What is important, he stressed, “is the discipline of setting money aside and having this ready,” he said. “Taking cue from Frost’s poem: ‘Two roads diverged in a wood, and I—I took the one less traveled by, And that has made all the difference.’”

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Thursday, October 8, 2020

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Jeepney drivers and resident of Pasay City wait for their turn for SAP cash aid. NONIE REYES

Safety nets cushion pandemic

fallout for poor Filipinos By Cai U. Ordinario

Reporter

@caiordinario

OR some, the number 13 is a most unlucky number. But when it comes to cash transfers, it seems 13 is a winner, especially for recipients.

the test not only government’s ability to implement cash transfers and other social protection services, but also forced it to re-examine its social protection efforts. National Economic and Development Authority (Neda) Undersecretary Rosemarie G. Edillon told the BusinessMirror in an email the government is finalizing the social protection framework that defines the social protection f loor (SPF), among others.”

Assuring all business process outsourcing or call centers. He projected that the government will only spend P20 million to P30 million a year for a cash-incentive program. “It is not cheap but it’s not expensive either,” he said. Thus, the Pantawid Pamilyang Pilipino Program, or 4Ps, was born. The 4Ps allowed millions of Filipino children to go to school and thousands of mothers to seek healthcare services.

Health crisis

Thirteen years ago, then Socioeconomic Planning Secretary Felipe M. Medalla floated the idea of giving cash to both rural and urban poor to bring about pro-poor growth. Medalla urged the Arroyo administration to adopt Brazil’sBolsa Familia program, which provides up to 95 reais (about $44 that time) a month to families who can keep their children in school and take them to clinics for health check-ups. According to Medalla, doing so would ensure that the countr y’s economic growth would benefit not just college graduates who work in

THIRTEEN years later, the 4Ps, also referred to as the conditional cash transfer (CCT) program, was put to the test as the Philippines battled a “once in every 50 years” pandemic. Authorities locked down borders between cities and restricted movements; effectively shutting down businesses and constricting food supply. While these actions probably saved lives by preventing the spread of the coronavirus disease of 2019, these also caused millions to lose their jobs and sources of income. Leveraging the success of the 4Ps, the government extended more doles in cash and in kind to allow Filipinos to cope with the worst health crisis the country experienced in recent memory. The lifeline, called ayuda in Tagalog, allowed affected Filipinos to survive. Overall, the pandemic has put to

“SOCIAL protection means that every person has a right to full social and economic guarantees,” Rene E. Ofreneo, former Dean of the University of the Philippines School of Labor and Industrial Relations, said in a 2019 study. He further wrote that social protection “consists of all elements and measures that would assure that every member of society is able to live a life of dignity from infancy to old age.” Ofreneo, also a columnist of the BusinessMirror, said this means a person will be protected against accidents, illnesses, disability and unemployment, among others. It also means protecting victims “of disasters, economic shocks, dislocations and similar tragic events,” he wrote. But for social protection to work, Ofreneo said the program must be reflected in the law and budgets of the state. Ofreneo said that even before a law was passed to institutionalize the 4Ps, the 1987 Philippine Constitution already mandated the development of “a comprehensive and fully-operational social protection program.” He added that social protection must be universal. It must cover not just a section or segment of the population. It should also be enjoyed by indigenous peoples, migrants and refugees, according to Ofreneo.

“Social protection must also be transformative; that is, it should lead to the empowerment of the people as the principal actors—and not passive objects—of development,” Ofreneo said. “Finally, social protection must be redistributive, meaning that it should help address economic and social justice issues; in particular, the root causes of poverty and marginalization, which put people in precarious and disadvantaged situations.”

Protection interventions THE government considers social protection as a “macroeconomic stabilizer” that can fuel demand and enable “people to better overcome poverty and social exclusion.” According to Edillon, the government embraces the “universality of social protection” as a basic human right and that universal coverage means shocks or risks affecting all Filipinos would be covered by a “menu of social protection interventions.” And government’s efforts in improving social protection are under way, she said. The Neda said, however, that given budget limitations, the government aims to implement a social protection floor (SPF). Edillon explained that an SPF is a minimum set of social protection programs, which includes several interventions like cash transfers, social insurance, safety nets and labor market interventions, among others. With this, the Neda said the SPF is broader and more encompassing and is not the same as Universal Basic Income (UBI) or Basic Income Guarantee (BIG), which is essentially an unconditional cash transfer that ensures basic needs of households are covered.

Programs, services DATA from the Department of Social Welfare and Development (DSWD) revealed a list of social protection services, particularly in relation to the

pandemic. These services were: the Abot Kamay ang Pagtulong (Akap) program of the Department of Labor and Employment (Dole); the Social Amelioration Program (SAP) emergency cash subsidy; the 4Ps; and, the distribution of food and non-food items to households. The services included assistance to individuals in crisis situation; supplementary feeding program; social pension for indigent senior citizens; efforts to prevent and respond to women and child abuse cases; and, monitoring theBahay Pag-Asa and other youth care facilities of the government. The DSWD data showed government specifically provided the following during the course of its battle against the pandemic: livelihood assistance grant to 45,010 beneficiaries and boosted production of personal protective equipment and face masks through the 4Ps and the sustainable livelihood program, respectively, among others. The data also showed government agencies were able to serve 909,699 beneficiaries through the assistance to individuals in crisis situation, provided P291.36 million worth of food and non-food items and serve 2,413 women and child abuse cases. According to the DSWD data, the government also served 1.76 million children through the supplementary feeding program; provided Akap 1-time financial assistance of P10,000 each to 244,605 displaced land-based and sea-based overseas Filipino workers; and, released 973 children in conflict with the law from the Rehabilitation Center for the Youth, Bahay Pag-Asa and other detention facilities.

Yet too little JOSE Enrique A. Africa, executive director of nongovernment Ibon Foundation Inc., said the SAP and Small Business Wage Subsidy (SBWS) helped those that they reached, if only for just a little while.

However, Africa said the cash support was not very much. He explained that the 17.7 million recipients of the first tranche of SAP only received an average of P5,636 equivalent to just P7 per person per day for a family of five since the lockdowns started in mid-March. Not everyone got a second tranche and the 13.9 million who did only got an average of P5,978 each, according to Africa. The 3.1 million SBWS beneficiaries received a bit more at an average of P7,441 for two months, he added. Given this, Africa said putting in place a “universal social protection is long overdue.” The current system is “fragmented” and those outside of the 4Ps are “underfunded,” according to him. He said it is important for the Philippines to have a “universal” SPF, which would include basic income security and “essential health care and minimum education and nutrition for children.” “The SAP and SBWS were shortlived, though. While momentarily alleviating things for recipients, the pandemic-driven and lockdown-driven economic shock is so large it’s certain that many have been permanently pushed to a lower level of welfare with many even below the official poverty line,” Africa said.

Average incomes IN other parts of the world, social protection is now being discussed in the context of universal basic income, or UBI, and temporary basic income, or TBI. A UBI is seen as a long-term solution to shield the poor from economic shocks. The UBI was implemented in Finland, which gives its unemployed citizens aged 25 years old to 58 years old a monthly stipend of 560 euros a month. This two-year experiment is Continued on A12

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News

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Thursday, October 8, 2020 A11

Here comes the sun...and the wind, and water With a favorable policy framework in place, RE finds a window for widening market share, as fossil fuels reel from a demand drop at the height of pandemic lockdowns, but the verdict is still out on whether they can permanently replace the latter.

By Lenie Lectura @llectura

OSSIL fuels, oil in particular, were hit hard as land, air and sea travel ground to a screeching halt during the first few months of the pandemic.

Coal-fired power plants, which continue to account for more than 50 percent of the countryâ&#x20AC;&#x2122;s power generation mix, suffered almost as much due to a plunge in demand for power. Renewable energy (RE), on the other hand, has proven to be more resilient in face of an unprecedented public health crisis.

These recent developments may have prompted the International Energy Agency (IEA) to ask in its latest report: Can these be signs that RE would permanently take the place of fossil fuel? The Department of Energy (DOE) said lockdown measures have evidently resulted in a steep decline in energy demand by

over 30 percent. Moreover, 10 percent of petroleum retail stores out of the 9,492 total outlets were either forced to cease operations or permanently close shop due to a diminishing demand for petroleum products. Continued on A13

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Safety nets cushion pandemic

fallout for poor Filipinos Continued from A10

envisioned to cut red tape, poverty and unemployment. A TBI is a minimum guaranteed income above the poverty line for vulnerable people in developing countries, according to a United Nations Development Program working paper released in July. The UNDP estimated that developing countries can extend TBIs of between 0.27 and 0.63 percent of their combined gross domestic product (GDP). These could be made as top-ups on existing average incomes in each country up to a vulnerability threshold; lump-sum transfers that are sensitive to cross-country differences in the median standard of living; and lump-sum transfers that are uniform regardless of the country where people live.

Needs being met

Ateneo de Manila University School of Social Sciences Dean Fernando T. Aldaba wrote in a column for the BusinessMirror that “UBI grants all citizens of a country or a selected geographic area with a fixed sum of money, regardless of their income, resources or employment status, the purpose of which is to basically provide income security to meet basic needs.” “BIG [basic income guarantee] also involves cash transfers designed with a similar purpose but targets only low

income or poor individuals,” Aldaba said. (See “Basic income guarantee, anyone?” here:https://businessmirror.com.ph/2020/01/31/ basic-income-guarantee-anyone/). A ld aba w rote t hat BIG cou ld help t he Phi lippines reduce pove r t y a nd pro v id e f i n a nc i a l s e cur it y among v u lnerable g roups and “popu lation and may a lso decrease inequa lit y across sectors of societ y.” If the country will implement a BIG, this can simplify the country’s social protection programs, he said. However, Aldaba said a BIG can be inflationary and come with “moral hazard issues” given that beneficiaries could lack the motivation to look for better-quality jobs. This means, a BIG could be a disincentive for them to work and could increase their dependence on the government.

Not cheap ALDABA added that a BIG, however, can “also be a source of corruption and may divert government resources from competing priorities. The UBI, meanwhile, is simply out of reach by developing country governments like the Philippines because it will entail a very large expenditure.” Aldaba estimated that for a cash grant of P2,500 per month for a poor household, the government needs P72.5 billion or 2.1 percent of total

budget for 2019 and around 41 percent of GDP. For P5,000 per month per poor household, it is P145 billion, 4.2 percent of total budget and 0.82 percent of GDP. Aldaba said if the government wants every Filipino to meet the food threshold, there should be around P7,500 per-month-transfer per family with a total cost of P217.5 billion, which is 6.3 percent of the total budget and around 1.23 percent of GDP.

Income differences Africa said a TBI is “extremely appropriate” given the country’s socioeconomic conditions. He pointed to the Philippine Institute for Development Studies (PIDS) whose data showed that around 11.3 million (48 percent or half of Filipino households) have monthly incomes of at most P22,000. He said based on Ibon estimates, around 70 percent of total employment is in the informal sector who are most vulnerable to income shocks, which can be addressed by a temporary basic income scheme. Having a basic income could help address inequality in the country. Africa said the top 500 income earners have an average monthly income of around P4 million, which is over 150 times the reported average family income in the country at P313,000 annually according to the 2018 Family Income and Expenditure Survey

(FIES). He noted that around 0.1 percent of Filipinos have wealth of P50 million or more, with the net worth of just the 50 richest Filipinos totaling P4.1 trillion. However, economists said in some countries where the UBI was implemented, the programs were discontinued after a year of implementation because of the high costs involved.

Very costly DE La Salle University Economist Maria Ella C. Oplas told the BusinessMirror that cost is one of the biggest concerns for the Philippines when implementing basic incomes, especially given the erosion of government revenues after lockdown measures shut down major economic activities. The Department of Finance (DOF) earlier noted that the combined revenues collected by the Bureau of Internal Revenue and Bureau of Customs remained down 12 percent year-onyear as businesses were adversely affected months after the lockdown. For January to August, the government collected P1.637 trillion, lower than the P1.864 trillion it did so in the same period last year. “We don’t have an ample budget where we can get the fund for the universal basic income,” Oplas said. “Unless we Filipinos stop complaining about all the taxes that the government is getting from us, I don’t think we will be ready for such. If we push for that, then we have to be ready for more debt.” The situation becomes even more complicated when the database to be used in implementing such programs suffer from problems. Economists earlier pointed out the issues surrounding the names of recipients of the ayuda remain a challenge.

Efficient tax use AFRICA said one of the ways to cure the data gaps is to use the community-based monitoring system (CBMS), which recently became institutionalized and will be implemented by the PSA. This would be particularly useful when implementing a TBI, which requires targeting mechanisms; unlike the UBI, which is a system that is designed for all Filipinos, regardless of income status, he explained. “In itself the CBMS is just a tool for TBI and will only be as useful as the government is willing to provide the resources for a meaningful basic income for Filipinos as needed,” Africa said. “TBI in any form will only start to be real for Filipinos upon a genuine government commitment to raise and devote resources for this.” Oplas said she’s “willing to give 60 percent of my hard-earned money [like in European economies] if and only if I know that it is going to public service delivery.” That is, only if the government will be able to come up with a way to address the issues on data and how the funds can better be used to benefit a greater number of Filipinos.”

Real concern PHILIPPINE Institute for Development Studies (PIDS) Senior Research Fellow Jose Ramon G. Albert told the BusinessMirror that while financing is a real concern, the Philippines can experiment on UBI. However, Albert said it should be first done on a smaller scale in order to determine financial needs and implementation issues. A UBI or an unconditional cash transfer can be good given that the country really doesn’t extend unemployment benefits, he explained. This is something that has become obvious with the ongoing lockdown as evidenced by hundreds of jeepney drivers begging along the streets of Metro Manila. “Our policy note on the FIRe [Fourth Industrial Revolution] called for looking into expanding social protection, including experiments with

UBI; but we don’t also have unemployment benefits. Government needs to progressively attain universal social protection but also study things carefully as haste makes waste,” Albert said. “It’s not enough to have a good program, it is equally important to look at intended and unintended consequences. Further, how much this [will] cost and how would we bear this cost,” he added.

Security guarantees WHILE cost may be one of government’s considerations as it finalizes a new social protection framework, the Neda is currently focused on the SPF’s four social security guarantees. These include access to a nationally-defined set of goods and services as well as basic income for children to give them access to nutrition, education, care and other necessary goods and services. The social security guarantees also include basic income security for persons in active age who are unable to generate incomes due to sickness, unemployment, maternity and disability. The list also includes basic income security for older Filipinos. “The Covid-19 pandemic brought to fore the importance of institutionalizing the SPF to immediately and efficiently identify and assist the most vulnerable population …as a major strategy of the PDP [Philippine Development Plan] Midterm Update under Chapter 11,” Edillon said. “The SPF will be instrumental in guaranteeing the access of people to social protection services, rendering its institutionalization vital in the improvement of SP service delivery in the country,” she added.

Adopt, enumerate THE Neda said it will propose to the Department of Labor and Employment two types of SPFs: one for “normal” situations and another during “emergencies” such as pandemic and disasters. Once the SPF is finalized, Edillon said, the government will issue a policy directive to officially adopt and enumerate the components of the SPF, along with the roles of the concerned agencies, among others. Edillon said Neda aims to come up with a Social Development Cluster (SDC) resolution to establish an SPF anytime within this month or in November. The SDC is one of the seven interagency committees of the Neda Board. It advises the President and the Neda Board on matters concerning social development, including education, manpower, health and nutrition, population and family planning, housing, human settlements and the deliver y of other social services. The SDC is chaired by the Labor Secretary and co-chaired by the Neda Director-General.

Reckoning with costs IN terms of costs, UN officials emphasized that SPFs are affordable. UN High Commissioner for Human Rights Michelle Bachelet, UN Special Rapporteur on Extreme Poverty and Human Rights Olivier De Schutter and International Labour Organization (ILO) Director-General Guy Ryder said so in a joint statement issued recently. The financing gap for all developing countries the difference between what these countries already invest in social protection and what a full SPF (including health) would cost is about $1.191 trillion in the current year, they said. The costs already include the impact of addressing Covid-19, the UN officials said. But they said the gap for the lowincome countries is only some $78 billion, a negligible amount compared to the GDP of industrialized countries. And yet, the authors said, the total

official development assistance for social protection amounts to only 0.0047 percent of the gross national income of donor countries. “We regularly hear pledges that we must, and will, ‘ build back better’ from the current crisis,” Bachelet, De Schutter and Ryder said. “We can only do this if everybody has a minimum level of social protection, including the poorest and most marginalized.”

Yo-yo effect

OFRENEO said ideally, social protection should be extended by government until Filipinos get back on their feet, especially given the current health and economic crises. He cited two ways this could be achieved: using social protection as disaster risk reduction and management framework and a cash-for-work program to provide income to the unemployed. For former Socioeconomic Planning Secretar y Dante B. Canlas, this requires the consolidation and strengthening of social protection institutions, particularly the Government Service Insurance System (GSIS), the Social Security System (SSS) and the Philippine Health Insurance Corp. (PhilHealth). These efforts should also be accompanied by new social safety nets, the pressing need for which has been revealed by the outbreak of Covid-19. These new safety nets should include food assistance and unemployment insurance, Canlas added. He said both social safety nets are targeted at the disadvantaged segment of the population and can be designed to avoid abuses and leakages. Furthermore, Canlas said, the program designs must be sufficiently strong so that citizens experiencing temporary setbacks from unexpected shocks like the pandemic can bounce back or have a yo-yo effect.

Better preserve

CANLAS also said reforms are also needed at PhilHealth given the recent controversies in the agency. He said internal controls at PhilHealth must be tightened. Those found guilty of corruption should be “meted out very severe penalties.” Further, those recruited in PhilHealth should be experts and must be competent administrators and staff. The former Neda Chief said in order to save on costs and better preserve pension funds, the GSIS and SSS should be merged. This merger could be done by “carving out the retirement and disability funds” to be part of just one agency in charge of social security. “To sustain the merged institution, it should be transformed into a pay-as-you go system, whereby contributions of active members finance the benefits going to retiring members. Over time, contributions and benefits need to be adjusted accordingly as a result of demographic changes,” Canlas explained in an email. “As for the current investible funds of both GSIS and SSS, they can be consolidated into a sovereign fund to be held in trust by the Bureau of Treasury.”

Making it happen

OFRENEO'S and Canlas’s recommendations build on the experience of the country on a program hatched in 2007, about 13 years ago. That year could be considered fortuitous as the Philippines was lucky enough to have a government that listened to Medalla, one of the country’s leading economists, to roll-out the 4Ps. Thirteen years later, if government could pull off its SPF tack, it could make the number 13 a lucky number for those advocating universal social protection.

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Thursday, October 8, 2020 A13

Here comes the sun...and the wind, and water Continued from A11

DOE directors assigned in the power and oil industries, however, maintain the demand slump is only temporary and sales is expected to rebound as government eases quarantine measures. “Definitely temporary, which is already starting to recover. Once the commercial and industrial activities fully resume, the demand will surely be there,” said Mario Marasigan of the DOE’s Electric Power Industry Management Bureau. DOE Director for Oil Management Bureau (OIMB) Rino Abad said the supply and demand for petroleum products decreased around March to May before it started to increase around June up to the present. “It always directly behaves with the quarantine implementation. The stricter the quarantine, the lower demand for petrol products,” Abad observed. Senate Energy Committee Head Sherwin Gatchalian said it is too early to tell if we are seeing the end of fossil fuels, which dominate the country’s energy mix. According to the DOE’s 2019 Primary Mix data, the share of oil in the country’s energy mix stood at 32 percent; coal, 28.8 percent; natural gas, 6 percent; hydro, 4 percent; geothermal, 15.2 percent; and 14.1 percent for other RE. To meet its energy needs, the Philippines harnesses the types of energy available to it. The share of oil, as always, is higher due to the country’s transportation needs and requirements. “It might be too early to say if fossil fuels, like oil, is dead because there are things that can’t be replaced right away. Airplanes, for instance, utilize jet fuel. Most vehicles on the road are using gasoline and diesel. I think, once we have the vaccine, travel demand will pick up again,” said Gatchalian. During the pandemic, the DOE observed that RE facilities have shown resiliency as these attained sustained operation, contributing the needed supply albeit the demand for electricity went down due to stoppage of most of the business sectors. This is brought about by the mobility restrictions on imported fossil fuels, while indigenous RE resources are readily available locally. Due to some isolated power outages from the grid or distribution network, people, particularly those with funds to spare, are slowly recognizing the advantage of having their own RE installations, such as solar panels and outdoor solar lights. “While the share of RE generation in the power mix remains at about 21 percent, this pandemic provided an opportunity for the RE for further development. However, we cannot conclude nor confirm that RE is gaining momentum during pandemic. What is clear though is that the pandemic has shown areas of growth for wider RE applications—utility-scale, consumer choice and through electrifications of communities dependent on fossil fuel alone,” said Mylene Capongcol, DOE director for Renewable Energy Management Bureau (REMB). In far-flung areas, Capongcol said, RE can supply both power applications like electrification through microhydro projects and solar PV, and nonpower applications like refrigeration for vaccines, pumping potable water and ensuring that there will be lighting in birthing stations especially in off-grid, or island communities. In terms of transportation, quarantine restrictions on movement and transport operations have resulted in a marked boom in bicycle use and electric personal mobility solutions. These include e-scooters, e-bikes, and e-mopeds, which are powered by batteries rather than petroleum. With the reopening of economies under the new normal, the agency added that mainstreaming of these etransport alternatives would provide a solution to limited parking space availability and traffic concerns of the prepandemic time. “Consumers, like me, these days have more time to explore and try various things that are available for online purchase. Producers are getting more creative while consumers are getting more interested and would want to try out new things. The quarantine indeed

provided RE opportunities,” DOE Undersecretary Felix William Fuentebella admitted.

Silver lining

While Covid-19 caused a significant decline in power demand, dropping by up to 40 percent at the height of the community quarantine in April, AC Energy Inc. saw a silver lining in this crisis. Company President Eric Francia noted the continuous cost decline and efficiency gains in renewable technology. “Renewable plants can also be constructed in 12 to 18 months and could help address possible supply gaps,” he said. Adding more variable RE must be complemented by flexible peaking capacity—hydro, gas, diesel—or battery storage. “Low oil and gas price helps manage the blended cost of renewables/ hybrid competitive. This provides a good transition period for battery storage to achieve lower cost and greater efficiencies and provide the ideal complement to renewable energy. This would pave the way for a low-carbon future,” added Francia. SMC Global Power said battery storage technology encourages the use of more RE in the long term, as storing power can address one of the main hindrances to wider adoption of renewable power, apart from high cost—and that is limited power source, such as sunlight or wind. “Our approach has always been to deliberately utilize technology and our resources, to sustainably transition to better fuels. And in the midst of the pandemic, we continue to grow our generation portfolio to help our economy recover and provide much-needed jobs and livelihood. We actively study and keep up-to-date with environmentfriendly technologies that can be effective in Philippine settings,” said SMC President Ramon Ang. SMC Global Power maintains a mix of renewables and non-RE facilities. It is set to increase its environment-friendly power capacity with brand new LNG (liquefied natural gas) plants already being planned. Apart from this, it has also invested significantly in battery storage technology. With or without the pandemic, Aboitiz Power Corp. continues to maintain a balanced portfolio. “Our push for ‘cleanergy’ has already been in place even before the pandemic. And as far as RE is concerned, we remain committed to our strategy, that significant capacity investments in the next 10 years will be cleanergy, closing the gap between thermal and cleanergy in our portfolio by 2029,” said President Emmanuel Rubio. Indeed, renewables are benefitting from low oil prices and a slowdown in oil consumption, which may have led a consumer group to urge the government and the private sector to share these benefits to the consumers. “The Philippine government has generous terms and incentives for RE projects. The windfall gains of developers using non-fossil fuels should be shared with consumers. The boon for RE should remove the need to escalate, or increase tariff incentives to be paid to developers,” said Laban Konsyumer Inc. President Victor Dimagiba. Fossil fuel will rebound and come back soon unless renewables are much cheaper for the consumers, LKI said. Given that major policies and programs have been promulgated to boost RE’s shares in the power generation

BERNARD TESTA

mix, the DOE is now gearing towards enforcement and implementation of the mandatory policies like the Renewable Portfolio Standards (RPS) and the promotions for the voluntary RE Policy Mechanisms like Green Energy Option Program and the Net Meter-

ing Enhancement. “RE is a game changer not because of the pandemic. It is because of the various RE policies in place. To support these, we have the Green Energy Auction Program that will facilitate the compliance of all distribution

utilities and the generators,” Fuentebella stressed. DOE officials stressed that smarter policies matter in order for the country to attain stable and secure power sources, be these renewables or fossil fuels.

A14 Thursday, October 8, 2020 • Editor: Angel R. Calso

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editorial

The best engines for economic growth

hile the world is continuously reeling from the health and socioeconomic impacts of the Covid-19 pandemic, one key lesson has emerged: Inclusive social protection can be an effective emergency instrument to protect low-income citizens. Countries with strong social protection systems, underpinned by comprehensive household information and robust digital payment systems, have been able to effectively ramp up support to their impacted populations. The World Bank: “Effective social protection systems are crucial to safeguarding the poor and vulnerable when crisis hits. Yet, in many countries, such systems remain limited in coverage and will need significant upgrading to respond to a pandemic like Covid-19. To help protect individuals and communities from the adverse impacts of the pandemic, the World Bank Group is prepared to deploy up to $160 billion over the next 15 months to support measures that will help countries cope with immediate health consequences and bolster economic recovery.” The International Labor Organization said Covid-19 has exposed devastating gaps in social protection coverage in developing countries, and recovery will only be sustained and future crises prevented if they can transform their ad hoc crisis response measures into comprehensive social protection systems. Germany recently launched an intriguing social protection experiment. For a period of three years a number of selected citizens get 1,200 euros (about P68,000) a month for free. They only have to answer researchers’ questions about how they’re faring with this unconditional income. Within a week, more than 1.5 million volunteers have signaled their willingness to participate in the study on unconditional basic income. The organizers are looking for a total of 1,500 participants. Officials from the Mein Grundeinkommen (My Basic Income) charity are convinced that an unconditional income for all citizens would solve many current problems. The assumption is that people get more creative and become freer and happier if they don’t constantly face the pressure to earn enough money to get by. Finland did a similar basic income experiment in 2019: More than 2,000 unemployed people aged 25 to 58 were randomly selected and given a monthly stipend of 560 euros (about P30,000). The result? The experiment had little employment effects, better-perceived economic security and mental wellbeing among participants. The basic income recipients were more satisfied with their lives and experienced less mental strain than the control group. They also had a more positive perception of their economic welfare. The idea of basic income has gained renewed interest during the Covid-19 pandemic. Millions of jobless people are relying on social safety nets that vary greatly from country to country. Of course, there are myriad questions that social protection experiments, like the one rolled out in Germany, need to answer. How would it be financed? Who are the recipients? However, certain quarters think this is a step in the right direction. Policymakers only need to keep an open mind to realize that this could be a good policy tool against the adverse effects of a pandemic-induced recession. What about an unconditional income designed for low income but not poor Filipinos to dovetail with the overall plan under the Pantawid Pamilyang Pilipino Program? In the time of the pandemic it’s not only the poorest of the poor but also the near poor that needs government support. It has been shown that social protection schemes like the 4Ps have positive impacts on economic growth through the multiplier effects of increased local consumption and improved labor market outcomes. After all, the best engines for a country’s economic growth are its healthy and productive citizens.

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he President and the First Lady of the United States both tested positive for Covid-19 last week. On the heels of that announcement came news of others who caught the virus as well: Trump’s campaign manager, the President’s Communications Director, the President’s Counsellor, and the Chair of the Republican National Committee—all of whom have had frequent contact with each other because of the ongoing Presidential campaign. As of this writing, and five days after Trump got infected, it’s been reported that Stephen Miller—a Trump senior policy adviser—also tested positive. This brings the number of people in this White House outbreak to 10—10 people who, immediately prior to being tested, had been working closely with Trump on public events that took place over that weekend—the first presidential debates and the announcement of the nomination of a new Supreme Court Justice. Both these events are rightly characterized as being integral components of Trump’s reelection campaign. While we, of course, pray that everyone pulls through safely, it cannot be denied that this presents us a teachable moment: the various physical components of elections and election campaigns are in drastic

need of revision. In the recently concluded budget hearings, the Comelec leadership intimated that the online submission of Certificates of Candidacy is being seriously considered. If this

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OUTSIDE THE BOX

Lourdes M. Fernandez

n the historical record of the Philippine Stock Exchange, October 6, 2020 will now be known as “Telco Tuesday.” I will get to that in a minute.

You are invited to pick one of the following: “S&P Global Ratings projects the country’s GDP to shrink by 9.5 percent.” “Fitch Ratings sees PHL economy contracting by 8%”. “Asean+3 Macroeconomic and Research Office said it revised its outlook to negative 7.6 percent.” It would be easy to criticize all of these experts for not being able to arrive at a consensus. But in the “Time of Pandemic” there are too many variables to consider. The forecasts depend on what you are looking at and how you weigh each of the variables. How important are business and consumer confidence and future expectations? Or should we be counting foot traffic at the malls? Once the government-mandated moratorium

on some debt payments is lifted, will banks start lending again? How large is the damage to the GDP from things like low school supply purchases this year and the cancellation of events like weddings and the All-Saints Day celebrations? Accurate forecasts are difficult to make. No economic crystal ball can predict what the long-term picture is going to look like. In perspective, a seven percent decline in the GDP from 2019 takes us back to about the total GDP for 2018. There are mixed signals. One business owner tells me that he has never seen so many prime locations available and at highly discounted rental rates. But then he says, “I’m just shy to say that we are sending letters of intent now for vacant prime

In the recently concluded budget hearings, the Comelec leadership intimated that the online submission of Certificates of Candidacy is being seriously considered. If this plan pushes through, then we may actually see the end of the fiesta atmosphere that attends the filing of COCs. plan pushes through, then we may actually see the end of the fiesta atmosphere that attends the filing of COCs—big crowds assembled in front of Comelec offices, parades and rallies where people crowd in with each other. From the point of view of the Comelec, this will also mean that the massive gathering of photographers and reporters waiting for a glimpse of the potential candidates might no longer materialize. And while this is a good first step, that is precisely all it should be – just a first step. To meaningfully prepare for Covid-safe elections, we should go further and re-examine all the inperson events that precede the filing of COCs—such as the conventions of

The main index has been flat for three months. Low volume and a sideways market do not necessarily mean “negative.” So I am going to say the same thing I said in June: Get prepared for the largest PSEi rally in history. How will you know when to buy? Watch the volume. Until then, take a nap like the PSE is doing. spaces.” Another one says: “What Covid has done to the high-end property sector is that they are readjusting to realistic prices.” Are we experiencing a necessary “culling of the herd” when the weak and sick are left dying beside the business road? While millions of US businesses have closed permanently, we see more mixed signals. Bank of America reports: “Total US Restaurant Spending Is Almost Back to PreCovid Levels.” The global economy is dead, right? “More ocean shipping signals are flashing green. First came a recovery in the container sector. Now comes a rebound in dry bulk, the world’s largest freight market in terms of volume.” However, the Philippine stock market is a total disaster area. On

the political parties—and all the inperson events that come after: campaign sorties, media events, and so on. And I’m not just talking about the Comelec. This task of re-evaluating the safety of old practices falls on all participants in the process—from political parties to the general public; from the candidates themselves to the voters. And we should start this multilateral re-evaluation process now. In fact, political parties should probably be encouraged to take the lead in this—to develop safety standards and to commit to measures that will minimize the risk of infection within their ranks and amongst those they come into necessary contact with. And most of all, to protect the public. To be perfectly frank, it isn’t the best idea in the world to wait for the Comelec and the IATF to come up with rules for campaign safety, only to challenge every single rule when compliance becomes inconvenient. As they—don’t expect—suggest. The pandemic isn’t over yet—not by a long shot. But by working together, we can make sure that the coming 2022 National and Local Elections are safer for everyone.

“Telco Tuesday” three issues—Chelsea Logistics and Infrastructure Holdings Corp., NOW Corp., and DITO CME Holdings Corp.—accounted for more than half of the daily exchange peso-value volume of P7.5 billion. And that was “player” money, not “investor” funds. Day after day, we have had low trading volumes not seen since 2011, and before that in 2005. At the PSE, the lights are on but nobody is home. Certainly, companies are not making much, if any, profit. There is a great deal of uncertainty about government policy and individual corporate adjustments to the pandemic. Yet we do say that the stock market is a leading indicator for the future. The main index has been flat for three months. Low volume and a sideways market do not necessarily mean “negative.” So I am going to say the same thing I said in June: Get prepared for the largest PSEi rally in history. How will you know when to buy? Watch the volume. Until then, take a nap like the PSE is doing. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

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Five things that cancer taught me

The insolent wedding guest Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

Susan V. Ople

Scribbles

ctober is Breast Cancer Awareness Month. To spread awareness, let me share my cancer healing journey and the lessons I have learned so far.

I discovered a suspicious lump in my left breast a few days before I celebrated my 58th birthday on February 9, 2020. The nipple in my left breast retracted. The skin also felt thicker and rougher than that of my right breast. Yet, I didn’t feel any pain. The first ever mammogram I had in my life led to an ultrasound, then a biopsy, and breast surgery before February ended. The first lesson that cancer taught me is not to delay action once you are told that there is a malignant tumor in your body. Cancer is not a Netflix movie that you can schedule to see. It is a Ninja disease, a master of stealth. It expands, grows bigger, and moves to more places, when ignored. My breast surgeon oncologist, Dr. Norman San Agustin of the Asian Breast Center, said that I may have been cradling this tumor for two years. My ignorance and inaction had caused me six out of seven lymph nodes, and the loss of my left breast. If you feel a lump in any part of your body, have it tested. If you do have a malignant tumor, the faster you get rid of it, the longer you will live. When you have cancer and prefer to not know it, then you die. Don’t wait for a miracle to happen. The miracle may be in you, fighting to live instead of pretending to be okay. As a child and until now, I am terrified of injections. Anything with a needle at its tip scares me to death. Ironically, I now need those injections to shoo away death. My first chemotherapy session had to be postponed because every time the nurse would insert an IV needle into my vein, the vein would collapse. I had so many failed needle insertions that my hand turned black and blue from all the bruises. I cried so much from the pain. If my veins kept collapsing, then how in the world can I complete my 8 cycles of chemotherapy? The answer? Port-a-cath. Also known as “port,” it is a medical device that is surgically placed in one of the blood vessels near the heart. Instead of sticking a needle in a vein, my nurse would simply access my port for blood extraction and chemotherapy infusions. No more painful searches for viable veins, and traumatic blood extraction procedures. I learned that technology and science have made cancer treatments more humane now than ever before. When accessing my port, for example, nurses at the Makati Medical Center’s cancer center use numbing cream as topical anesthetic then they use an anesthetic spray before they insert a needle into my port. I hardly feel the needle break through my skin. Mammograms are also now pain-free. I never forgot how a friend complained about how much she cried during her mammogram. Well, that was decades ago. Digital mammograms stop short of squashing your boob like a pancake. And they are affordable! Don’t believe the cancer movies of yore, where patients throw up every minute and have dark circles around their eyes. I never felt nauseous during and after chemo because of the excellent drugs that doctors prescribe. The second lesson I learned from having cancer is the critical importance of choosing the best doctors. My oncologist, Dr. Charles Vincent Uy, just recently turned 35 years old. He is as young as my only daughter. And yet, throughout my cancer battle, Doc Charles, is my doctor and life coach as well as Kdrama advisor all rolled into one. Whenever I share with him my anxieties, he would remind me, “You made it through the first four cycles, despite all your fears, and before you know it, you have completed the en-

Thursday, October 8, 2020 A15

tire treatment plan. Trust yourself and let God take control.” My doctor, young as he is, has no specific office hours. I see him online and we chat. I send him Viber messages. I follow him on Instagram and he follows me back. We don’t do office hours. We converse, online. To me, God sends us angels, and Doc Charles, Doc Norman, and all my other doctors and nurses, are angels in human form. The third lesson that having cancer taught me is the power of positivity. People ask me why do I appear so cheerful even when I have bald spots on my head, a missing boob, and weekly chemotherapy infusions of at least two straight hours each? Honestly, I don’t know why. There are days when I am reading something or watching a series on Netflix and dark thoughts would cloud my mind. Suddenly, I have visuals of coffins and people crying, and the inevitable am-I-going-to-die question—all part of the gloom parade. I shoo those thoughts away. Negative thoughts are the dead end street of hope. Positive thoughts make you want to hug the sunrise when you wake up in the morning. The fourth lesson that cancer taught me is that love heals. This fight is for my 35-year-old daughter whom I love beyond words. I want to see my beautiful and smart daughter, Estelle, have a family of her own. I also want to repay the love of my life partner, Fort Jose, who goes with me to each chemotherapy session, and cheers me up when I’m down. With Fort and Estelle by my side, I want to see the tiny rambutan tree in our garden grow tall and bear fruits. I want to travel the world with them and sit in cafes and read a good book. I want to write more. I want to help people just because I can. I want to give love and get love back. I want to offer God the more reasons to smile. I want my guardian angels to be happy and Mama Mary to be proud. The fifth lesson that cancer taught me is to believe that God will provide. Had I not renewed my health insurance before the end of December last year, I would be heavily in debt right now given the cost of cancer treatments. My health insurance, Philippine AXA Global Health Access, has stood by me and has been a reliable partner in my treatments. Padre Pio said: “Pray. Hope. Don’t worry.” I live by that message. Don’t lend money to others when you can’t even invest in your own health insurance. As the pandemic keeps teaching us, good health is the best wealth. For those who have someone they love facing cancer or undergoing cancer treatments, here is perhaps the best thing to say: “I may not know exactly what you are going through, but I am here for you. You don’t need to go through this alone.” I still have eight more weekly chemotherapy sessions to go through. I intend to show up for each one. Because I have cancer, my advocacies have expanded from OFW concerns to also include cancer awareness and patients’ rights. I am reinvigorated by this new purpose in life. I believe that our journey on Earth is but an audition. If you believe in eternal life, and I pray that you do, then the hard work to fulfill it starts now. Father Jerry Orbos, SVD, a lung cancer survivor, said, “ The rest of your life, the best of your life.” I am living the best of my life now, thanks to the cancer that I never thought I’d ever have. Susan V. Ople heads the Blas F. Ople Policy Center and Training Institute, a nonprofit organization that deals with labor and migration issues. She also represents the OFW sector in the InterAgency Council Against Trafficking.

he deceptive disobedient son, then the greedy killer caretakers, and now the contrary and insolent wedding guest (Matthew 22:1-14), all illustrate to us the fundamental rule that we shall be judged by our Lord on the basis of our deeds and actions. Our life and practice must harmonize with our faith.

The invited wedding guests The example of the wedding feast, so common to every community of any time and clime, provided Jesus with a handy experience with which to visualize certain vital truths pertaining to the kingdom of heaven. The wedding banquet serves in the Old Testament as portraying the celebration of God’s saving love for humankind. The news of God’s reign is brought to the chosen people: some who heard the good news welcomed it, while some others rejected it and excluded themselves from God’s banquet. This simple and outright original similitude became embroidered later. The evangelist in his final redaction already had a full-blown allegorized version of the parable or illustration for his Christian community. The groom, the king’s son, is our Lord Jesus Christ. Special people, the Jews, have been particularly invited to the wedding celebration. Similar to the parable of the killer caretakers, the group of servants sent to

insure their coming to the banquet were the prophets first, then the Christian disciples and missionaries. The invited guests’ refusal to come and their preferred concerns, plus their maltreatment of the servants, dramatize the ferocious rejection of the Christian message on the part of the Jews. The burning of the city of the unworthy invited guests refers to the destruction of Jerusalem by the Romans in 70 A.D.

The expanded list of guests

Again, similar to the parable of the murderous tenants where the vineyard would have to be entrusted to more worthy caretakers, here the wedding’s banquet hall will have to be filled with add-on guests. The sending of the servants into the main roads “to invite to the feast whomever” they encounter pictures the expansion of the Christian mission to include the gentiles. God’s design for the fulfillment and salvation of humankind cannot be thwarted by the intransigence

The condemnation of the contrary or incongruous guest is a certainty before the judgment throne of God. The same confrontation with the truth obtains in our approach to the banquet of the Eucharist, a foreshadowing of the eternal communion with the Triune God. How many of us do ostensibly but insolently sit at the banquet of the Lord without the festal garment of fidelity to the Gospel and instead mask a life of lies marked by the absence of Christ-like love? of anyone. The joy of the wedding feast is there for the taking and now available to all, not only to the few but also to the many. Some may blindly refuse to have any part in it, but the human need and quest for it is undeniable out there in the streets where the good and the bad mingle in search of happiness. The invitation from above is universal; some may have received earlier notice than others, but no one is offhand excluded and the invitation will eventually reach the others too as intended by the king. To secure the particular attention of his Christian community as he delivers to them the two-edged message of the parable, Matthew adds as postscript to the original what could have at first circulated independently in the form of a moralizing second parable: the misfit guest. Among Christians are likewise some individuals caught up in worldly in-

terests practically ignoring the call of the Gospel, while others in some power play of their own both resist the message and even try to throw a wrench into the proclamation of the Good News. But the case of one who carelessly and insolently appears at the wedding banquet without the appropriate attire points to those Christian believers who do not take seriously the imperatives of a true Christian life while outwardly affiliating to it. Alálaong bagá, the white festal garment for a wedding banquet may as well be in reference to the white baptismal dress, the outward sign of Christian dignity and identity. “Bring that dignity unstained into the everlasting life of heaven,” is said to the newly baptized (cf. the wedding bride’s “bright, clean linen garment,” Apocalypse 19:8). Not living up to that commitment produces nominal Christians who can be found in great number in every age. The condemnation of the contrary or incongruous guest is a certainty before the judgment throne of God. The same confrontation with the truth obtains in our approach to the banquet of the Eucharist, a foreshadowing of the eternal communion with the Triune God. How many of us do ostensibly but insolently sit at the banquet of the Lord without the festal garment of fidelity to the Gospel and instead mask a life of lies marked by the absence of Christ-like love? Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

The world’s financial twins: Saviors or debt collectors? Dr. Rene E. Ofreneo

LABOREM EXERCENS

he global financial twins, the International Monetary Fund (IMF) and the World Bank (WB), will have their annual spring conference next week, October 12 to 18, 2020. Virtual.

However, an item in their agenda is not virtual. It is solidly concrete: the deepening debt crisis of the developing world. Per estimate by Joseph Stiglitz, former chief economist of the World Bank, the collective debt of the developing countries has ballooned to over a trillion dollars, and the debt service due this year is at least $130 billion. The poorest countries of the world, located mostly in Africa, are not only NOT in a position to allocate any debt service budget; they are also facing a life-and-death struggle to stave off mass hunger while fighting an invisible coronavirus with limited resources. A growing number of economists are warning: the debt crisis of developing countries is shaping into a global catastrophe. The Covid-19 pandemic has flattened their economies and their capacity to support the survival requirements of their respective populations. It is against this background that the IMF set up a Rapid Credit Facility (RCF) and a Rapid Financing Instrument (RFI) to meet the emergency financing needs of over 100 least developed countries. Together with the World Bank, the IMF pushed the G-20 countries in April to establish the Debt Service Suspension Initiative (DSSI). Outcomes from the above initiatives are extremely disappointing. As pointed out in an earlier column, the IMF’s RCF and RFI got a measly $50 million funding, which obviously cannot make a dent on the trillion-dollar plus debt of the developing world. As to the DSSI, the European Network on Debt and Development tersely described it as a mechanism for “Draining out the Titanic with a bucket.” EURODAD pointed out that the DSSI does not cover the multilateral (e.g., World Bank and

IMF) and private creditors. Hence, money freed from paying the debt service to the bilaterals (e.g., French aid agency) can easily be diverted to pay other debts instead of funding the needs of the Covid-stricken citizens of a borrowing country. Additionally, the DSSI does not provide a safety net for all countries in desperate need of debt relief. In particular, middle-income countries, many of whom are in economic and health crisis, are left out in the DSSI program. The Philippines is one of them. Now back to the IMF-World Bank annual meeting next week. Through a series of press releases, the twins are broadly hinting that they are more than prepared to finance all the budgetary needs of the developing world. In particular, the IMF’s Managing Director, Kristalina Georgieva, has been saying that the IMF has “a trillion-dollar lending capacity” to address the financing needs of the developing countries. In this connection, one major policy issue to be taken up in the annual meeting is the proposed creation by the IMF of “new” international reserve assets worth $1 trillion. These reserve assets, called Special Drawing Rights (SDRs), can be distributed to the central banks of the 189 Member Countries of the IMF based on each country’s “quota share.” The biggest SDR shares—as much as 60 percent—are owned by the United States and the European countries. So if SDRs are created, they also get 60 percent of the SDRs. However, the proponents of SDR creation argue that the developing countries, with limited shares, shall still benefit in a substantial manner because their economic base is relatively low. Thus, the GDP of a poor country like Jamaica shall increase by 7 percent and its international

reserves by 30 percent should the IMF succeed in convincing Member Countries on the issuance of $1 trillion worth of SDRs. Getting the consent of Member Countries on the trillion-dollar SDR issuance is a challenge. It can only happen if the IMF is able to mobilize the support of a “supermajority,” meaning the votes of those who hold at least 85 percent of the IMF quotas. The United States, with 16 percent of the quotas, can effectively veto any SDR creation initiative. This brings us then to the character of the IMF as the world’s “debt policeman.” In a webinar organized by the Freedom from Debt Coalition, Dr. Walden Bello pointed out that the image-building program of the IMF in recent years has not altered the reality that the IMF re-

and labor protection. Walden cites two illustrative cases. In Ireland, the “IMF cure” to the 2008 financial crisis of this country came in the form of “the toughest austerity program in Europe”, per report of the New York Times. Because of this austerity program, as many as 25,000 public sector jobs or 10 percent of the government’s work force were downsized. A similar austerity program was applied in Greece by the IMF, which coordinated the program with the European Commission and the European Central Bank. A “debt writeoff” for Greece was accompanied by painful policy conditionalities: cut in public sector wages by 17 percent, reduction of pension benefits by 20 percent to 40 percent, and rollback of labor protection standards. The

Now back to the IMF-World Bank annual meeting next week. Through a series of press releases, the twins are broadly hinting that they are more than prepared to finance all the budgetary needs of the developing world. In particular, the IMF’s Managing Director, Kristalina Georgieva, has been saying that the IMF has “a trillion-dollar lending capacity” to address the financing needs of the developing countries. mains as an institution dedicated fully to the advancement of the interests of its master founders: the United States and Europe. This is reflected in the percentage shares of the IMF quotas and in the appointment of who shall serve as the Managing Director, a position reserved to a European. The unswerving commitment to the advancement of the interests of the founding developed countries is also reflected in the IMF’s handling of the debt crisis. It has not been supportive of any substantive debt relief or debt cancellation for Member Countries in crisis. The IMF simply wants debt restructuring or re-financing or debt service suspension for a certain period (like the DSSI), all of which provide placebo or temporary relief to debt-ridden borrowing countries. Walden questions the IMF’s claim that it has now become Keynesian and has abandoned neo-liberalism, which forbids government intervention in the market in support of social

point, said Walden, is that the IMF has not given up its old programs of enforcing debilitating economic austerity programs and imposing neo-liberal “structural adjustment” policy conditionalities such as privatization. As to the debt crisis being experienced by the developing countries today under the pandemic, the IMF and the World Bank have been busy designing new debt re-scheduling programs such as the failing DSSI in order to help the lenders—multilaterals, bilaterals and private commercial—get back their money with a handsome profit sans any “haircuts.” The basic lending framework has not changed. Lenders lend money to get more money, be it at the micro farm level involving a distraught farmer or at the global level where the borrowers represent large segments of the world’s working poor. Will the IMF-WB meeting next week gift the world with a new and different debt story?

A16 Thursday, October 8, 2020

DOE not giving up on unbundling

By Lenie Lectura

@llectura

HE Department of Energy (DOE) is not giving up yet on its bid to implement a circular requiring oil firms to justify and break down their price adjustments.

The agency said on Wednesday that the lower courts in Taguig, Makati and Mandaluyong cities have yet to hand down their decisions in connection with the agency’s department circular on oil unbundling. “The denial only pertains to the validity of the issuance of writ of preliminary injunction, in which

the main case will still continue,” said DOE Assistant Secretar y Leonido Pulido III. The DOE official was referring to the September 30 ruling of the Special Fourth Division of the Court of Appeals (CA), which denied the DOE’s petition for the issuance of a temporary restraining order and/ or writ of preliminary injunction

against the order of the Taguig Regional Trial Court. On July 29, 2019, the Taguig court granted Pilipinas Shell Petroleum Corp.’s (PSPC) application for a writ of preliminary injunction enjoining the DOE from implementing Department Circular 2019-5-8, otherwise known as the Revised Guidelines for the Monitoring of Prices in the Sale of Petroleum Products by the Downstream Oil Industry in the Philippines. The circular states that for every price adjustment of petroleum products, oil companies must comply with the submission of the detailed computation with corresponding explanation and supporting documents on the reasons of the movement. In particular, oil firms must unbundle their fuel cost to reflect

international content; which makes up import cost, freight cost, insurance and foreign exchange rate; taxes; biofuel cost; and the socalled industry take which details port charges, refining cost, storage cost, handling cost, marketing costs, transshipment cost and profit margin. Oil firms, however, are against this because they would be compelled to reveal sensitive information amid a deregulated environment. The DOE and its lawyers from the Office of the Solicitor General (OSG) have yet to receive a copy of the CA decision. “Such denial shall be elevated to the Supreme Court after consultation with DOE lawyers,” added Pulido. DOE Director for Oil Industry Management Bureau (OIMB) Rino Abad said the DOE and the OSG will

immediately meet to discuss legal options. “The lawyers will have to strategize on the legal methods available. The CA order was just a temporary relief but the main cases in the lower courts are still on.” The CA recognized the DOE’s authority to monitor and follow the movements of domestic oil prices. However, the Oil Deregulation Act does not compel oil firms to reveal its detailed pricing components. “ The cost margins, pricing structure and marketing strategies of PSPC are confidential in nature which, if revealed, can lead to the damage of the company’s business. To reiterate, there is nothing in the law which requires the disclosure of trade secrets to the DOE and since the loss of trade secrets is unquantifiable, it is considered grave and irreparable injury which

warrants the issuance of the injunctive writ,” the CA said. DOE officials have been saying that the alleged revelation of trade secrets is a misconception. “Time and again, the DOE emphasized that the information sought by the DOE shall be kept confidential,” said Pulido. The DOE, according to Secretary Alfonso Cusi, will comply with the CA decision. “Under the existing court injunction, we cannot violate the said court order. Otherwise, we could be cited in contempt.” One option the agency has been pushing is to amend the Oil Deregulation law. “We proposed for the direct amendment of the law. The OIMB has already drafted the said proposed amendment and is now under review by Asec. Pulido,” said Cusi in a text message.

‘Beep card subsidy just 2.5 days of MRT support’ W

HILE it ordered private companies to shoulder the cost of the cards used for the contactless fare collection system, the Department of Transportation (DOTr) is discussing whether or not it should shell out money to subsidize land transport costs during the pandemic.

This, as Senate President Pro Tempore Ralph Recto signalled that suggestion as well, noting the millions government spends to subsidize each MRT ride, with the irony that those who don’t take the train are helping pay for the fare of MRT riders. The commuters using the Edsa Busway were recently taken aback

when government decreed the contactless system using Beep cards , and they were suddenly told they could not board the buses unless they shell out P150—to cover the cost of the card and the initial balance. The ensuing confusion, which forced many workers to simply walk, prompted a backlash both

against government and the private firm behind the cards. As part of efforts to redress the situation, the Land Transportation Franchising and Regulatory Board (LTFRB) issued on Wednesday a memorandum circular removing the fees of automatic fare collection system (AFCS) cards charged to commuters.

Under the memo, private operators must provide commuters with free use of the reloadable cards during the pandemic or risk being suspended or fined. This memo was issued in response to President Duterte’s tirade against private companies that charge for the ownership of the cards used

to pay for fares for land transport. Just like operators in neighboring countries such as Hong Kong, Japan, and South Korea, AF Payment Inc. (AFPI), the operator of the tap-and-go payments system Beep, charges commuters for the ownership of a reloadable card. Continued on A4

Companies BusinessMirror

www.businessmirror.com.ph

Thursday, October 8, 2020

Dito taps Udenna to construct telco towers

By Lorenz S. Marasigan

@lorenzmarasigan

ito Telecommunity Corp. has awarded the Udenna Group a P10billion contract to develop telco towers and deploy fiber optic cables for its telecommunications network, which is expected to be commercially available by March 2021.

Udenna Infrastructure Corp. (UIC) COO Jomel Fuentes said his group has teamed up with FutureNet and Technology Corp. for the implementation of the multibillion-peso infrastructure development program. Under their master service agreement, the partners are to build 1,500 telco towers and lay over 1,400 kilometers of fiber optic cables in the next two years. “In need of local expertise and

grassroots infrastructure experience, Dito Telecommunity Corp. engaged UIC to assist in the rollout of cellular tower and fiber optic cables,” he said. Dito is gunning to meet the March 2021 deadline of its commercial launch. “ T he ag reement w it h FutureNet and Dito is a milestone for UIC as we come together to ensure that we maximize and build on our strengths as individual companies

and as a group, all for the success of the March 2021 launch of Dito Telecommunity,” Fuentes said. Dito committed to spend P150 billion in its maiden year to set up its network. The figure is both for the build and the operational costs. Dito’s five-year commitment entails a P257-billion investment that will result in an 84-percent nationwide coverage with a minimum Internet speed of 55 Mbps.

GLOBAL EXCELLENCE AWARD. For

the contribution and support of his group of companies in the country's ongoing fight against Covid-19 as well as his steadfast leadership in helping shape the country's economy through his businesses, Alliance Global Group Inc. Chairman Dr. Andrew L. Tan received this year's ICCP Global Excellence Corporate Award from the International Chamber of Commerce-Philippines. CONTRIBUTED PHOTO

Companies BusinessMirror

Thursday, October 8, 2020

Construction firm pivoting to making PPE seeks perks

By Elijah Felice E. Rosales

@alyasjah

construction firm has registered more than P858 million with the Board of Investments (BOI) to produce personal protective equipment (PPE) in another show of investor interest to shift to PPE making in the time of Covid-19.

BOI’s Industry Development Services Executive Director Ma. Corazon Halili-Dichosa disclosed a construction firm in September applied to secure fiscal incentives from the government for its P858.41-million investment in PPE making. Although she did not name the investor, she said its project has the capacity to manufacture millions of PPEs every year. In an interview with the BusinessMirror, Dichosa said the firm used the investment to repurpose its facilities and begin commercial production in September. Based on BOI data, the firm can now make 3.6 million coveralls, 3.6

million lab gown sets and 3.6 million medical aprons for health respondents yearly. Likewise, it can now put out 6 million KN95 masks, 6 million N95 masks and 3.6 million surgical masks. If the BOI approves the application, the firm will get four years of income tax holiday, as well as duty free importation of capital equipment, under the Investments Priority Plan. Further, the firm may avail of exemption from payment of import duties, taxes and fees for the importation of raw materials and equipment for the manufacture

of Covid-19 critical goods. A joint memorandum circular may soon be issued to authorize the exemption, which is provided under the second Bayanihan to Recover as One Act. Dichosa pointed out the investment adds up to the $35 million, roughly P1.69 billion, spent by a group of local manufacturers who repurposed their facilities in response to the government’s plea to make PPEs for health workers. Dichosa admitted the BOI has no record of how much the private sector poured in for projects on PPE making. She said firms that decided to produce pandemic essentials, particularly PPEs and face masks, proceeded without registering for incentives. The BOI official said the agency provides PPE manufacturers with technical support in making sure their products land are bought either here or abroad. According to Dichosa, the BOI assists them in qualifying for domestic bidders preference that will allow them to participate in government procurement. On export, it works with the Foreign Trade Service Corps of the Department of Trade and Industry, in trying to bring local PPEs to the

United Nations Global Marketplace. “The local demand of a population as big as ours plus the demand in the export market would make for a viable proposition for companies to continue this business,” Dichosa argued. For the BOI, efforts to boost the national output for PPEs and face masks should be sustained, as the Covid-19 drags on with no end in sight. Based on a survey in June, at least 83 percent of firms that repurposed their facilities said they intend to continue making PPEs. There are now 22 face mask manufacturers in the country, nine of which can produce medical grade N88 and KN95, from only two before the pandemic. The firms who can make face masks for medical use can supply 60.6 million pieces per month. Prior to the contagion, the country can prepare just 6 million pieces monthly, according to data from the BOI. On PPEs, there are now 17 firms that can tailor coveralls, isolation gowns and medical aprons. The Philippines has no capacity to make PPEs before the health crisis, but it can now put out 3.5 million pieces per month.

Jollibee opens flagship store in Rome, Italy J

ollibee Foods Corp. on Wednesday said it opened its first flagship store in Rome, Italy, in Via Ottaviano, catering mostly to thousands of Filipinos living in the city. Jollibee’s location is near St. Peter’s Square, Vatican City, the company said. Like its other openings around the world, Jollibee’s opening in Rome drew long lines of customers while following physical distancing safety measures. Over 4,000 pieces of its fried chicken was served on its first day alone, along with its hamburgers and spaghetti. “Opening our first Jollibee store in the historical city of Rome, especially in a location that is just an eight-minute walk from the Vatican City, is a milestone for us in the Jollibee family. Ever since our opening

in Milan, we saw that there was a huge demand for Jollibee here in Italy and our succeeding openings in the United Kingdom show the appeal of Jollibee in other parts of Europe as well. We are excited to bring Jollibee’s Chickenjoy, other best sellers, and the Jollibee experience to more people as we expand in this region,” Jollibee CEO Ernesto Tanmantiong said. “The reception we got in Milan, which was our first Jollibee in Europe, then Earl’s Court in London, last month in Liverpool, and now in Rome has been amazing. Even the locals who have never heard about Jollibee are trying it and are coming back for more. We are a step closer to making Jollibee as well-loved in other countries as it is back here,” Jollibee

mutual funds

October 7, 2020

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PSE STOCK QUOTATIONS

October 7, 2020

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

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

44.5 87.2 65 21.7 8.95 38.05 8.58 23.55 50.85 95.8 17.1 90.65 54.3 25.8 0.42 3.21 1.13 0.27 708 0.58 154.1 1875

44.9 88 65.2 21.75 9.05 38.6 9.39 23.75 51 100 17.24 90.7 54.4 26.5 0.56 3.38 1.21 0.29 750 0.6 156.8 1910

44.9 86.6 65.35 21.75 8.86 38.95 8.57 23.35 51.15 105 17.2 91.2 54.3 26.8 0.55 3.2 1.12 0.28 720 0.57 154 1789

44.9 88 65.5 21.8 9.1 39 9.39 24 51.15 105 17.26 91.9 54.35 26.95 0.57 3.43 1.15 0.285 720 0.6 156.8 1875

44.8 86.6 64.9 21.65 8.86 37.75 8.57 23.25 51 105 17.1 90.45 54.2 26 0.55 3.2 1.11 0.27 720 0.52 154 1760

44.8 88 65.2 21.75 9.05 38.6 9.39 23.75 51 105 17.24 90.7 54.3 26.5 0.57 3.4 1.13 0.27 720 0.58 156.8 1875

300 1622840 1269920 95900 453100 3482500 11700 58200 750 10 5300 243800 16400 1113100 17000 11000 69000 2490000 40 773000 870 195

13450 141772149 82729480.5 2085260 4082997 133278165 101581 1368505 38295 1050 91280 22122166 890855.5 28981115 9390 36110 77880 681850 28800 408900 134039 353570

INDUSTRIAL AC ENERGY 3.03 3.05 3.09 3.09 2.9 3.03 37370000 111627320 24995690 ALSONS CONS 1.17 1.19 1.19 1.19 1.15 1.19 1484000 1746110 ABOITIZ POWER 26 26.2 26 26.25 25.55 26.2 1456300 37912715 -20236670 BASIC ENERGY 0.16 0.161 0.161 0.161 0.16 0.16 50000 8010 FIRST GEN 23.6 23.8 23.6 23.9 23.25 23.6 2127000 50074135 -42645005 FIRST PHIL HLDG 60.5 61 61.05 61.05 60.5 60.5 18820 1146616.5 -363453.5 MERALCO 272 272.8 272 273 269.2 272 247130 66,936,492( 41,424,790.0004) MANILA WATER 14.08 14.1 14.54 14.62 14.08 14.08 4724300 67106432 -12470946 PETRON 2.99 3.01 3 3.01 2.98 2.99 2211000 6623790 695720 PETROENERGY 3.1 3.2 3.2 3.2 3.2 3.2 1000 3200 PHX PETROLEUM 11 11.18 11 11.18 11 11.18 90200 1002696 PILIPINAS SHELL 14.98 15 15 15 14.86 15 247500 3691066 640254 SPC POWER 9.85 9.88 9.93 9.95 9.88 9.88 46300 458885 AGRINURTURE 8.12 8.2 8.35 8.4 8.03 8.2 186400 1528750 -100212 AXELUM 2.6 2.62 2.6 2.64 2.55 2.62 1274000 3308860 203400 BOGO MEDELLIN 68.05 70 70 70 70 70 190 13300 CNTRL AZUCARERA 11.54 11.98 11.54 11.54 11.54 11.54 800 9232 CENTURY FOOD 17.28 17.34 17.3 17.34 17.22 17.28 865200 14955544 3371012 DEL MONTE 4.61 4.72 4.61 4.73 4.61 4.61 51000 236320 -36960 DNL INDUS 5.17 5.21 5.29 5.33 5.16 5.17 2673400 13999669 -2242474 EMPERADOR 9.88 9.89 9.89 9.89 9.83 9.89 473900 4672194 -469478 SMC FOODANDBEV 63.35 64.1 64.2 64.2 63.45 64.1 80360 5131212 -2612727.5 ALLIANCE SELECT 0.62 0.64 0.62 0.64 0.62 0.64 96000 60620 FRUITAS HLDG 1.17 1.18 1.17 1.18 1.15 1.18 9309000 10779730 436400 GINEBRA 48.2 49 50 50 46.25 49 2860 139712 JOLLIBEE 137.6 137.7 137.8 137.9 137.2 137.7 693560 95363000 -6522539 MACAY HLDG 7.53 8 7.64 8.19 7.52 8 9400 71169 MAXS GROUP 4.71 4.75 4.7 4.75 4.7 4.71 90000 423780 -47000 MG HLDG 0.13 0.133 0.13 0.133 0.13 0.133 260000 34220 SHAKEYS PIZZA 5.63 5.65 5.7 5.78 5.63 5.65 84500 477899 1089 ROXAS AND CO 1.17 1.19 1.17 1.19 1.16 1.19 4213000 4978310 -571680 RFM CORP 4.63 4.78 4.77 4.77 4.7 4.77 70000 333740 319429.9999 ROXAS HLDG 1.69 1.75 1.7 1.7 1.69 1.69 7000 11880 SWIFT FOODS 0.104 0.107 0.104 0.104 0.104 0.104 1440000 149760 -104000 UNIV ROBINA 135 135.2 135.8 135.8 133.9 135 666420 89686134 -25303635 VITARICH 0.74 0.76 0.73 0.76 0.72 0.75 2770000 2076090 -8360 CONCRETE A 50.5 51.7 51.05 51.8 50.05 51.8 3460 174150.5 CONCRETE B 53.95 54 51.9 54.6 51.9 54 2520 132953 CEMEX HLDG 1.56 1.57 1.54 1.6 1.54 1.56 20998000 32867640 -1776450 DAVINCI CAPITAL 4.68 - 3.4 4.68 3.4 4.68 2513000 9814990 -3665200 EAGLE CEMENT 14.68 14.7 14.7 14.7 14.3 14.7 98500 1439402 -41020 EEI CORP 6.68 6.7 6.61 6.7 6.51 6.68 815900 5374324 21030 HOLCIM 5.11 5.13 5.1 5.19 5.09 5.11 1002300 5130126 -107501 MEGAWIDE 6.78 6.79 6.92 6.92 6.71 6.78 694100 4693438 204535 PHINMA 8.31 8.45 8.3 8.45 8.3 8.45 26500 220105 TKC METALS 0.69 0.7 0.69 0.69 0.69 0.69 28000 19320 VULCAN INDL 0.67 0.69 0.65 0.67 0.65 0.67 408000 268590 CROWN ASIA 1.83 1.9 1.8 1.9 1.8 1.9 6000 10930 EUROMED 1.79 1.82 1.78 1.83 1.77 1.83 88000 157640 LMG CORP 4.33 4.83 4.36 4.36 4.33 4.33 4000 17410 MABUHAY VINYL 4.17 4.28 4.2 4.3 4.2 4.3 2000 8500 CONCEPCION 20 21.4 20.15 20.5 20 20.5 7100 144210 10075 GREENERGY 2.27 2.29 2.32 2.32 2.26 2.29 6670000 15182840 -9560 INTEGRATED MICR 5.46 5.57 5.42 5.57 5.4 5.57 247800 1349828 100233 IONICS 0.95 0.97 0.95 0.98 0.95 0.98 193000 184540 PANASONIC 4.65 5.29 5.98 5.98 4.56 5.29 25600 129179 SFA SEMICON 1.35 1.41 1.32 1.4 1.31 1.4 1670000 2241030 -600 CIRTEK HLDG 5.05 5.07 5.15 5.15 5.02 5.07 2997800 15169046 -33566 HOLDING & FRIMS ABACORE CAPITAL 0.45 0.46 0.46 0.46 0.45 0.45 7080000 3233000 ASIABEST GROUP 7.31 7.5 7.71 7.71 7.31 7.5 3300 24640 AYALA CORP 715 716 708 716.5 708 716 155260 110832365 ABOITIZ EQUITY 44.3 44.4 45.5 45.5 44.3 44.4 2403900 107377460 ALLIANCE GLOBAL 7 7.01 7.04 7.04 6.99 7 6525000 45682685 AYALA LAND LOG 2.41 2.42 2.44 2.44 2.35 2.42 2347000 5617520 ANGLO PHIL HLDG 0.54 0.55 0.55 0.55 0.53 0.54 77000 41000 ATN HLDG A 0.57 0.58 0.55 0.59 0.55 0.57 2831000 1616850 ATN HLDG B 0.59 0.62 0.58 0.59 0.58 0.59 666000 390800 COSCO CAPITAL 5.06 5.1 5.1 5.15 5.06 5.06 388400 1979816 DMCI HLDG 4.06 4.08 4.05 4.08 4.04 4.08 2195000 8903490 GT CAPITAL 380 380.8 384 384.6 379.8 380 339610 129119044 JG SUMMIT 62.6 63 62.8 63 61.55 63 1156290 72276124 LODESTAR 0.6 0.62 0.61 0.63 0.59 0.62 255000 153840 LOPEZ HLDG 3.01 3.02 2.8 3.18 2.61 3.02 37397000 110231700 LT GROUP 8.66 8.68 8.79 8.79 8.65 8.68 478000 4154549 MABUHAY HLDG 0.455 0.485 0.485 0.49 0.45 0.48 270000 127750 METRO PAC INV 3.9 3.91 3.84 3.93 3.83 3.9 101559000 396358730 PRIME MEDIA 0.75 0.78 0.76 0.78 0.76 0.78 11000 8560 SOLID GROUP 0.96 0.98 0.97 0.97 0.96 0.96 200000 192300 SYNERGY GRID 150 159 150 159 150 159 220 33900 SM INVESTMENTS 864 865 879 879 861 865 125870 108839410 SAN MIGUEL CORP 98.35 98.5 100 100.4 98.35 98.5 113730 11224222.5 SOC RESOURCES 0.6 0.62 0.62 0.62 0.62 0.62 108000 66960 TOP FRONTIER 118 121.4 117.1 121.4 117 121.4 1540 184988 WELLEX INDUS 0.188 0.19 0.186 0.188 0.186 0.188 290000 54360 ZEUS HLDG 0.133 0.134 0.128 0.135 0.128 0.135 440000 57240

-519250 -58929675 -50541965 20993036 132100 390799.9999 793979 -1407910 -77794320 12486044.5 -5150840 -560682.9998 -137055190 -67278495 -3324473 -102173 -

PROPERTY ARTHALAND CORP 0.55 0.56 0.55 0.57 0.53 0.56 1458000 809350 AYALA LAND 29.65 29.7 29.8 29.9 29.3 29.7 8980600 266525275 ARANETA PROP 0.94 0.96 0.96 0.96 0.94 0.94 3000 2840 AREIT RT 25.6 25.65 25.6 25.7 25.5 25.65 950600 24354345 BELLE CORP 1.37 1.38 1.37 1.37 1.36 1.37 132000 180630 A BROWN 0.74 0.75 0.74 0.76 0.73 0.74 2617000 1933170 CITYLAND DEVT 0.77 0.79 0.77 0.77 0.77 0.77 13000 10010 CROWN EQUITIES 0.13 0.132 0.13 0.132 0.129 0.132 570000 73960 CEBU HLDG 5.71 5.97 5.71 5.97 5.71 5.97 200 1168 CEB LANDMASTERS 4.79 4.82 4.8 4.87 4.78 4.82 979000 4701070 CENTURY PROP 0.36 0.365 0.36 0.36 0.36 0.36 4140000 1490400 CYBER BAY 0.295 0.31 0.305 0.305 0.29 0.305 260000 77750 DOUBLEDRAGON 13.94 14 14.04 14.1 13.92 14 753900 10558554 DM WENCESLAO 5.24 5.28 5.26 5.28 5.23 5.24 188800 992133 EMPIRE EAST 0.265 0.27 0.265 0.265 0.265 0.265 120000 31800 EVER GOTESCO 0.084 0.09 0.085 0.085 0.085 0.085 250000 21250 FILINVEST LAND 0.92 0.93 0.92 0.93 0.91 0.93 2956000 2738070 GLOBAL ESTATE 0.74 0.75 0.75 0.75 0.74 0.74 227000 168230 8990 HLDG 6.65 6.78 6.78 6.78 6.75 6.78 39300 266304 PHIL INFRADEV 1.39 1.4 1.37 1.42 1.34 1.4 11792000 16358340 CITY AND LAND 0.65 0.7 0.62 0.7 0.62 0.7 3000 1970 MEGAWORLD 2.89 2.9 2.92 2.94 2.88 2.89 19418000 56213690 MRC ALLIED 0.237 0.238 0.246 0.248 0.236 0.238 30250000 7296010 PHIL ESTATES 0.285 0.31 0.31 0.31 0.31 0.31 10000 3100 PRIMEX CORP 1.1 1.16 1.09 1.16 1.09 1.15 22000 24680 ROBINSONS LAND 14.18 14.2 14 14.2 13.98 14.2 709200 10012288 PHIL REALTY 0.208 0.218 0.208 0.208 0.208 0.208 20000 4160 ROCKWELL 1.52 1.54 1.55 1.55 1.53 1.53 325000 502080 SHANG PROP 2.65 2.69 2.69 2.69 2.65 2.65 80000 212040 STA LUCIA LAND 1.89 1.95 1.96 1.98 1.82 1.98 85000 160950 SM PRIME HLDG 29.3 29.4 29.6 29.6 28.9 29.3 7291000 212502890 VISTAMALLS 3.57 3.6 3.58 3.7 3.55 3.6 33000 117980 SUNTRUST HOME 1.15 1.17 1.17 1.17 1.15 1.16 578000 668210 VISTA LAND 3.19 3.2 3.24 3.27 3.12 3.19 2899000 9262210

193240 -167448125 -8732135 -4090 10010 -25800 -3228450 -18000 -7841378 -50418 77910 -189840 -265850 -39304740 -15760 -894712 209350 -113909270 1160 -3570270

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 194.75 -21.63% -12.07% -5.01% -22.67% ATRAM Alpha Opportunity Fund, Inc. -a 1.0581 -30.35% -13.59% -2.96% -23.44% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.6301 -31.9% -16.22% -6.8% -28.49% Climbs Share Capital Equity Investment Fund Corp. -a 0.6661 -27.9% -12.92% n.a. -25.82% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6672 -20.64% n.a. n.a. -21.44% First Metro Save and Learn Equity Fund,Inc. -a 4.1756 -21.12% -10.42% -4.96% -21.63% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.6503 -23.24% -12.68% n.a. -23.82% MBG Equity Investment Fund, Inc. -a 83.95 -27.09% n.a. n.a. -18.67% PAMI Equity Index Fund, Inc. -a 38.9639 -23.16% -10.77% -3.95% -24.02% Philam Strategic Growth Fund, Inc. -a 419.44 -20.55% -10.08% -4.04% -21.27% Philequity Alpha One Fund, Inc. -a,d,5 0.8868 n.a. n.a. n.a. -13.91% Philequity Dividend Yield Fund, Inc. -a 0.9974 -21.67% -10.1% -3.64% -22.5% Philequity Fund, Inc. -a 29.2151 -22.24% -9.81% -3.24% -22.91% Philequity MSCI Philippine Index Fund, Inc. -a 0.7702 -23.41% n.a. n.a. -24.35% Philequity PSE Index Fund Inc. -a 3.9793 -22.77% -10.27% -3.24% -23.82% Philippine Stock Index Fund Corp. -a 665.31 -22.65% -10.21% -3.34% -23.7% Soldivo Strategic Growth Fund, Inc. -a 0.6063 -31.91% -13.86% -7.09% -28.79% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.0662 -26.47% -11.7% -4.73% -27.15% SERVICES ABS CBN 13.5 - 11.98 13.5 10.32 13.5 12483800 155063444 Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.7621 -22.89% -10.49% -3.44% -23.85% GMA NETWORK 4.98 4.99 4.96 4.99 4.9 4.99 434000 2142550 United Fund, Inc. -a 2.7908 -23.1% -9.37% -2.86% -23.61% MANILA BULLETIN 0.4 0.425 0.38 0.445 0.38 0.425 8200000 3342250 MLA BRDCASTING 10.5 11 10.5 10.5 10.5 10.5 4600 48300 Exchange Traded Fund GLOBE TELECOM 2000 2040 2040 2084 2000 2000 56275 113960030 First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 89.3113 -22.56% -9.92% -2.59% PLDT 1299 1300 1334 1337 1299 1299 235815 309202215 APOLLO GLOBAL 0.06 0.061 0.061 0.063 0.06 0.061 92890000 5673620 -23.64% DFNN INC 2.86 2.95 2.94 2.94 2.94 2.94 4000 11760 Primarily invested in foreign currency securities DITO CME HLDG 5.76 5.77 6.95 7.1 5.55 5.77 250134200 1527441083 IMPERIAL 1.2 1.29 1.2 1.33 1.19 1.31 85000 105000 ATRAM AsiaPlus Equity Fund, Inc. -b $1.0595 12.21% -0.21% 3.57% 3.02% ISLAND INFO 0.078 0.079 0.079 0.079 0.076 0.079 540000 41280 Sun Life Prosperity World Voyager Fund, Inc. -a $1.5229 21.26% 8.02% n.a. 10.46% JACKSTONES 1.51 1.57 1.51 1.59 1.51 1.58 58000 91220 NOW CORP 4.23 4.25 5.02 5.2 4.1 4.23 81465000 364857300 Balanced Funds TRANSPACIFIC BR 0.208 0.209 0.21 0.224 0.205 0.209 18260000 3853600 Primarily invested in Peso securities PHILWEB 2.22 2.25 2.09 2.3 2.03 2.22 46199000 95303220 2GO GROUP 8.26 8.5 8.5 8.5 8.25 8.5 24900 209993 ATRAM Dynamic Allocation Fund, Inc. -a 1.5424 -3.26% -5.52% -2.93% -1.31% ASIAN TERMINALS 15.62 16.2 15.42 15.42 15.42 15.42 100 1542 CHELSEA 5.18 5.19 6 6.05 5.04 5.19 22731800 123177248 ATRAM Philippine Balanced Fund, Inc. -a 2.0332 -9.68% -5.68% -1.32% -6.78% CEBU AIR 37.05 37.1 36.55 37.9 36.55 37.1 112800 4211785 First Metro Save and Learn Balanced Fund Inc. -a 2.3831 -8.85% -4.35% -2.8% -9.44% INTL CONTAINER 113.7 113.9 115 115.4 112.1 113.9 2835830 323313693 LBC EXPRESS 13.2 14.68 14.5 14.5 13.2 13.2 1008100 14173316 First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1717 -24.53% n.a. n.a. LORENZO SHIPPNG 0.71 0.78 0.72 0.72 0.72 0.72 21000 15120 -24.86% MACROASIA 4.29 4.3 4.39 4.4 4.22 4.3 2887000 12376120 METROALLIANCE A 1.7 1.72 1.79 1.79 1.62 1.7 823000 1401590 NCM Mutual Fund of the Phils., Inc. -a 1.8279 -5.91% -2.22% 0.24% -6.82% METROALLIANCE B 1.85 1.9 1.85 1.85 1.85 1.85 1000 1850 PAMI Horizon Fund, Inc. -a 3.4444 -7.91% -3.9% -0.99% -9.1% PAL HLDG 5.66 5.85 5.7 5.9 5.3 5.9 87200 501408 HARBOR STAR 1 1.03 1.03 1.06 1 1 1622000 1640790 Philam Fund, Inc. -a 15.3968 -8.21% -4.04% -1.08% -9.22% ACESITE HOTEL 1.13 1.15 1.15 1.15 1.15 1.15 8000 9200 Solidaritas Fund, Inc. -a 1.9008 -10.22% -5.01% -1.32% -10.43% BOULEVARD HLDG 0.025 0.027 0.026 0.027 0.025 0.025 66800000 1722000 DISCOVERY WORLD 1.39 1.48 1.39 1.39 1.39 1.39 1000 1390 Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.2328 -15.54% -6.22% -2.41% -16.32% WATERFRONT 0.38 0.39 0.38 0.39 0.38 0.39 160000 61000 Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9297 -7.45% n.a. n.a. -8.47% CENTRO ESCOLAR 6.49 6.5 6.5 6.5 6.5 6.5 3500 22750 IPEOPLE 7.01 7.57 7.01 7.63 7.01 7.63 2300 16247 Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.8228 -16.71% n.a. n.a. -17.42% STI HLDG 0.305 0.31 0.305 0.315 0.3 0.315 3620000 1101150 BERJAYA 2.62 2.63 2.72 2.8 2.6 2.62 1101000 2936940 Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.7985 -18.88% n.a. n.a. -19.6% BLOOMBERRY 7 7.02 6.91 7.06 6.91 7 4224400 29576287 Sun Life Prosperity Dynamic Fund, Inc. -a 0.7928 -18.08% -7.46% -3.35% -18.67% PACIFIC ONLINE 1.8 1.81 1.8 1.8 1.8 1.8 132000 237600 LEISURE AND RES 1.32 1.36 1.35 1.37 1.29 1.32 437000 578060 Primarily invested in foreign currency securities PH RESORTS GRP 2.89 2.98 2.76 3 2.76 2.98 271000 776760 Cocolife Dollar Fund Builder, Inc. -a $0.03893 0.34% 2.6% 2.12% 1.91% PREMIUM LEISURE 0.305 0.31 0.305 0.31 0.3 0.305 6020000 1842300 ALLHOME 5.73 5.75 5.7 5.8 5.69 5.75 1147300 6586980 PAMI Asia Balanced Fund, Inc. -b $1.0417 6.8% 0.55% 3.32% 2.93% METRO RETAIL 1.38 1.39 1.38 1.39 1.37 1.39 1255000 1734280 Sun Life Prosperity Dollar Advantage Fund, Inc. -a $4.1623 12.68% 5.68% 6.2% 6.43% PUREGOLD 44.1 44.2 45.9 46.65 44 44.1 4437600 199277855 ROBINSONS RTL 63.5 63.95 64.5 65 63 63.5 395450 25148919 Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.164 5.85% 2.94% n.a. 3.13% PHIL SEVEN CORP 109 114.8 111.8 111.8 109 109 430 47317 Bond Funds SSI GROUP 1.07 1.09 1.09 1.09 1.06 1.08 2411000 2587200 WILCON DEPOT 15.68 15.7 15.62 15.74 15.62 15.68 493400 7742622 Primarily invested in Peso securities APC GROUP 0.28 0.29 0.28 0.29 0.28 0.29 760000 219400 ALFM Peso Bond Fund, Inc. -a 368.62 3.9% 3.07% 2.65% 2.98% EASYCALL 6.65 6.74 7.19 7.19 6.52 6.61 160200 1079214 GOLDEN BRIA 289 304.6 300 304.6 300 304.6 140 42276 ATRAM Corporate Bond Fund, Inc. -a 1.9523 1.78% 0.86% 0.35% 2.64% IPM HLDG 3.12 3.29 3.3 3.3 3.13 3.13 32000 103390 Cocolife Fixed Income Fund, Inc. -a 3.2026 3.74% 4.77% 4.97% 2.72% PRMIERE HORIZON 0.219 0.222 0.22 0.224 0.219 0.221 2140000 473870 SBS PHIL CORP 4.18 4.19 3.98 4.19 3.98 4.19 104000 420730 Ekklesia Mutual Fund Inc. -a 2.2963 3.78% 2.67% 2.26% 3.28% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.453 4.79% 3.42% 2.21% 3.98% MINING & OIL ATOK 6.73 7.16 6.9 7.28 6.73 7.17 16200 111216 Philam Bond Fund, Inc. -a 4.648 7.78% 4.23% 2.86% 6.29% APEX MINING 1.44 1.45 1.38 1.45 1.33 1.44 7687000 10740710 Philam Managed Income Fund, Inc. -a,6 1.3129 5.73% 4.39% 2.49% 4.47% ABRA MINING 0.0008 0.0009 0.0008 0.0009 0.0008 0.0008 468000000 390400 ATLAS MINING 3.74 3.8 3.73 3.8 3.72 3.74 168000 627860 Philequity Peso Bond Fund, Inc. -a 3.9583 5.53% 4.17% 2.35% 4.49% BENGUET A 2.5 2.69 2.49 2.54 2.47 2.54 74000 185310 BENGUET B 2.34 2.49 2.34 2.49 2.34 2.49 5000 12000 Soldivo Bond Fund, Inc. -a 1.0395 9.07% 3.65% 2.21% 7.8% COAL ASIA HLDG 0.238 0.24 0.255 0.255 0.231 0.24 1420000 343490 Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1878 4.87% 4.78% 3.05% 3.65% CENTURY PEAK 2.48 2.55 2.55 2.55 2.55 2.55 100000 255000 DIZON MINES 7.3 7.65 7.72 7.72 7.5 7.65 500 3821 Sun Life Prosperity GS Fund, Inc. -a 1.7486 3.86% 4.13% 2.41% 2.79% FERRONICKEL 1.18 1.19 1.11 1.18 1.08 1.18 13458000 15300290 Primarily invested in foreign currency securities GEOGRACE 0.226 0.23 0.231 0.231 0.227 0.229 130000 29600 LEPANTO A 0.127 0.128 0.123 0.127 0.123 0.127 10630000 1329640 ALFM Dollar Bond Fund, Inc. -a $478.9 2.79% 2.51% 2.79% 2.25% LEPANTO B 0.121 0.129 0.122 0.13 0.12 0.13 2120000 260590 ALFM Euro Bond Fund, Inc. -a Є217.18 -1.5% 0.74% 1.19% -1.19% MANILA MINING A 0.0086 0.009 0.0086 0.0089 0.0085 0.0089 33000000 289100 MANILA MINING B 0.0082 0.0099 0.0095 0.0099 0.0095 0.0099 20000000 196900 ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2358 2.85% 2.96% 2.49% 2.37% MARCVENTURES 0.87 0.88 0.82 0.87 0.81 0.87 2331000 1969910 First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.0264 1.93% 1.83% 1.59% 2.33% NIHAO 2.08 2.16 1.98 2.16 1.98 2.15 1269000 2662370 NICKEL ASIA 3.31 3.32 3.07 3.31 3.01 3.31 40314000 128260030 PAMI Global Bond Fund, Inc -b $1.0859 -1.77% 0.21% 0.24% -0.7% OMICO CORP 0.33 0.35 0.33 0.33 0.32 0.32 70000 22800 Philam Dollar Bond Fund, Inc. -a $2.4967 2.96% 3.67% 3.37% 3.88% ORNTL PENINSULA 0.53 0.55 0.52 0.55 0.52 0.55 236000 125000 PX MINING 4.02 4.08 3.92 4.05 3.92 4.02 1182000 4723830 Philequity Dollar Income Fund Inc. -a $0.0614439 1.94% 2.28% 2.09% 1.9% SEMIRARA MINING 9.91 9.92 9.87 9.95 9.83 9.92 773100 7664153 UNITED PARAGON 0.005 0.0053 0.0044 0.005 0.0044 0.005 72000000 348100 Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1753 -0.53% 1.75% 2.33% 0% ACE ENEXOR 5.7 5.77 5.7 5.77 5.7 5.77 104600 596357 Money Market Funds ORNTL PETROL A 0.0084 0.0086 0.0085 0.0085 0.0084 0.0084 4000000 33700 ORNTL PETROL B 0.0083 0.0085 0.0085 0.0085 0.0085 0.0085 8000000 68000 Primarily invested in Peso securities PHILODRILL 0.0078 0.008 0.0077 0.008 0.0077 0.008 11000000 85300 ALFM Money Market Fund, Inc. -a 129.21 3.53% 3.32% 2.52% 2.69% PXP ENERGY 4.95 4.97 5 5 4.9 4.95 1227400 6073841 First Metro Save and Learn Money Market Fund, Inc. -a 1.0455 2.16% n.a. n.a. 1.87% PREFFERED Sun Life Prosperity Money Market Fund, Inc. -a 1.2911 2.81% 3.02% 2.62% 2.06% AC PREF B1 511 515 515 515 515 515 10 5150 AC PREF B2R 514 515 514 514 514 514 1950 1002300 Primarily invested in foreign currency securities DD PREF 101.5 101.9 101 101.9 101 101.9 5000 509410 Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0496 1.59% n.a. n.a. 1.09% MWIDE PREF 101.4 101.5 101.4 101.5 101.4 101.5 50360 5111504 PNX PREF 3B 102.1 102.5 102.5 102.5 102.5 102.5 1110 113775 Feeder Funds PNX PREF 4 968 970 967 970 967 968 1360 1316615 Primarily invested in Peso securities PCOR PREF 2B 1002 1054 1054 1054 1054 1054 10 10540 PCOR PREF 3A 1050 1057 1057 1057 1057 1057 5515 5829355 Sun Life Prosperity World Equity Index Feeder Fund, Inc. -a,d,7 1.0181 n.a. n.a. n.a. n.a. PCOR PREF 3B 1075 1080 1085 1085 1075 1075 3070 3300850 Primarily invested in foreign currency securities SMC PREF 2C 77.25 78 77.25 78 77.25 78 1170 90447.5 PREF 2E 75.8 76.5 75.8 75.8 75.8 75.8 1000 75800 ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.94 n.a. n.a. n.a. -5.05% SMC SMC PREF 2F 77.25 77.6 77.7 77.7 77.25 77.6 15110 1167826.5

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."

9318779 -32239769 -939205.0003 -494013 18272430 -85700 51810 1726 -7385564 488125.5 26039750 3320 -11500 21800 159375

PHIL. DEPOSITARY RECEIPTS

-80427220 -188227370 -2665395 -2753930 108990 -825 425513.9997 -447070 -104789268 -0 -14400 -875810 32320 3000 1497672 72000 -68360 87000 305000 1990302 57089.9997 -58866780 -15095713 -822440 -420372 -67520 800 -187000 254999.9999 -260850 42379.9999 -7993450 395150 -452186 577 -428947 -

ABS HLDG PDR 13.12 - 10.58 13.12 10 13.12 1905300 23099894 -2705364 WARRANTS LR WARRANT 0.6 0.62 0.62 0.62 0.6 0.62 103000 63160 SMALL & MEDIUM ENTERPRISES ALTUS PROP 10.38 10.4 8.33 12.4 8.29 10.4 5822000 60393323 -15972453 ITALPINAS 2.31 2.32 2.5 2.57 2.26 2.31 12346000 29350500 64220 KEPWEALTH 4.95 4.99 4.93 4.95 4.92 4.95 29000 143140 MERRYMART 3 3.01 3.05 3.09 2.95 3 44522000 134345000 11660260 EXHANGE TRADE FUNDS FIRST METRO ETF 89 89.1 89.1 89.5 88.65 89 33520 2983760.5 5346

B4 Thursday, October 8, 2020

Extension of service for necessary jobs allowed – CSC

Ayala Group partners with the City of Manila for Public Convenience Facilities Project

OVERNMENT employees who reach the compulsory retirement age of 65 years may request extension of service for six months under specific conditions. In CSC Resolution No. 2000002 dated 3 January 2020, the CSC laid down the conditions for the grant of requests for service extension. These conditions, along with the agency head’s justification of the need for the service, include completion of a program or project identified as a priority of the agency; deployment in services that have an impact on national security, safety, and national or local emergency as declared by the appropriate authority; and provision of highly technical expertise not readily available in the agency. Under the guidelines, extension of service shall be allowed for a period of six months, and extended for another six months under meritorious circumstances. Requests for extension of service for completion of the 15 years of service required

under the Government Service Insurance System (GSIS) Law may be granted but only for a maximum of two years. Requests for extension of service to complete 15 years of service shall be granted to government employees, irrespective of the status of appointment. This includes those who have optionally retired and have availed of retirement benefits but were later reemployed. However, requests for extension of service to complete 15 years of service due to incurrence of leave of absence without pay for one year shall not be allowed, if such leave of absence is due to any reason other than illness. The guidelines further state that officials and employees on service extension are entitled to salaries, allowances, and other remunerations that are normally given as part of an employee’s compensation package. They are also covered by Civil Service Law and rules and may be held accountable for any violations.

Suntrust Solana tops off its two towers in Manila IN attendance at the Kartilya partnership signing are, from left: Vice Mayor Maria Sheilah “Honey” H. Lacuna-Pangan, Manila Mayor Francisco “Isko Moreno” Domagoso, Senate President Pro Tempore Ralph Recto, Ayala Land President and CEO Bobby Dy, Ayala Foundation President Ruel Maranan, Tutuban Properties President and CEO Rowena Tomeldan, Rotary Club of Manila South Former President James Jimenez and R.M. Salas Construction General Manager Rogel M. Salas

RUE to its commitment towards community-building initiatives and enhancing the quality of life in urban cities, the Ayala group of companies partnered with the City of Manila for the Kartilya ng Katipunan Public Convenience Facilities Project. As part of Manila Mayor Francisco “Isko Moreno” Domagoso’s vision to promote the rich culture and heritage of the nation’s capital, the local government aims to rehabilitate and rebuild this historic landmark to bring back the city’s old glory days. Mayor Domagoso explains, “This lot has been abandoned for a long time and it’s been one of our objectives to develop this site and provide a safe space for our constituents while also preserving the historic value of this place. We’re proud that this project exceeded our expectations. This serves as proof that private sectors and the government can work hand in hand to develop our country, our city, and to confront this pandemic.” To address a critical component in the holistic development of the compound especially during this time of pandemic, the Ayala Land group and its subsidiaries – Tutuban Center, Alveo Land, Avida Land, and Amaia Land; in cooperation with the Ayala Foundation, along with R.M. Salas Construction, and aided by the Rotary Club of Manila South – all came together with the city government for the Kartilya ng Katipunan Public Convenience Facilities Project. This is to ensure that visitors to the Kartilya ng Katipunan Shrine will have clean and standardized facilities to use. The project saw the building of convenience facilities for men, women, and persons with disabilities, providing free public wash rooms for park-goers and future patrons of the KapeTolyo coffee shop. The City of Manila will ensure the maintenance of the facilities, aided by partners like the Rotary Club of Manila South.

Ayala Land President and CEO Bobby Dy shares, “We are very happy to support this vision for the Kartilya ng Katipunan Shrine. We know that this will promote the city’s tourism initiatives and that ancillary developments such as this public convenience facility will complete the area, further promote cleanliness, and serve the community well. Hopefully, as we continue to work together, we will be able to create not only economic opportunities for Manileños but also socially relevant projects that celebrate our common aspirations as a people.” Ayala Land believes that the Kartilya ng Katipunan will be another invaluable landmark for the residents and visitors to the City of Manila, where it has established several residential developments starting with Avida Towers San Lazaro in 2009, followed by Avida Towers Intima and Prime Taft, Celadon Park by Alveo, and Amaia Skies Avenida and Sta. Mesa. It also operates Tutuban Center, which is a central economic hub in the city’s historic urban area. Through community projects, Ayala Land and its subsidiaries hope to foster communities, as well as arts and culture initiatives. This is something that Ayala Land tries to promote in all its developments. Tutuban Center, for example, is a development rooted in history with the Andres Bonifacio Shrine located in front of the Tutuban Main Station building, the original main railway central terminal. Tutuban Center has been active in preservation and promotion efforts for the historic train station, which has been dedicated as a heritage site by the National Historical Commission of the Philippines (NHCP). The group has also ongoing community initiatives for education, health and livelihood.

Various civic undertakings

ASIDE from the Kartilya ng Katipunan Public Convenience Facilities Project,

the Ayala Group also partnered with City of Manila in constructing the Manila Molecular Testing Laboratory. Envisioned to modernize one of Manila’s district hospitals and improve healthcare services for the city’s constituents, it is seen to support the city’s ongoing efforts against the pandemic and is expected to benefit the residents for years to come. Prior to this, the Ayala Foundation has been very active in various other civic undertakings. Programs include <code/ it>, an educational technology program that trains public elementary school students in coding to prepare them for more advanced workplaces; and SariSaring Aralan, which uses the sari-sari store as a hub for learning for out-ofschool youth in Tondo. The foundation’s CENTEX program has also been in place in Manila since 1998, and continues to provide holistic and quality education for students in the CENTEX School. Other companies under the Ayala Group have also poured in their support. Globe Telecom Inc.’s GoWiFi team deployed WiFi services at the Sta. Ana Hospital so healthcare workers, patients, and visitors can easily connect with loved ones through the internet. Manila Water Company Inc. continues to provide round-the-clock water supply to the Sta. Ana and San Andres districts, which forms part of the Manila side of its concession. Currently, the company is also assisting in the declogging of Sta. Ana Hospital’s internal sewer pipe. The partnership with the City of Manila aligns with the Ayala Group’s unwavering resolve to assist in mitigating the impacts of the pandemic. The group is an active participant in Task Force T3, which stands for Test, Trace, and Treat, convened by the InterAgency Task Force–National Task Force (IATF-NTF) and the Department of Health (DOH).

MERALCO POWERS UP PROVINCE OF LAGUNA’S REINFORCED COVID-19 RESPONSE. Meralco ramps up efforts in providing safe, adequate and reliable electricity supply to Laguna’s 90bed COVID-19 temporary quarantine and treatment facility located in Calamba. The project involves the installation of metering facilities, eight concrete poles, eight spans of covered conductors, and two 75-kVA distribution transformers. The facility boosts government efforts in containing the COVID-19 pandemic, alongside a mega health facility in the same city. Powering COVID-19 quarantine and treatment facilities within the franchise area is one of Meralco’s top priority projects, as the company continues its relentless support to the government and private sector in the fight against COVID-19.

Attending the topping off ceremony are, from left: Isaias “Sonny” D. Berdin Jr, Suntrust vice president for Operations, Planning & Design, Engr. Gil A. Escarcha, Suntrust vice president for Vertical Operations, Arch. Knoll Elmann, Suntrust senior manager for Vertical Operations, Junar Mercado, Vision Properties Development, Corp. vice president for Operations and Jerry R. Rubis, Suntrust first vice president for Sales, Marketing & Training.

UNTRUST Properties Inc., a whollyowned subsidiary of Megaworld Corp., marked another milestone with the recent topping off of its Suntrust Solana project on October 1. “This event signifies the beginning of Architectural and Finishing works for Suntrust Solana which we expect to be completed progressively starting next year,” said Engr Gil A. Escarcha, vice president for Vertical Operations. Located in Natividad Lopez St. Ermita, Suntrust Solana is the company’s fourth

condominium project to rise in Manila following the success of its previous developments namely UN Gardens, Adriatico Gardens, and Suntrust Parkview, all strategically located within the city’s busiest destinations. Suntrust Solana is a two-tower modern contemporary inspired community with amenities that include a jogging path, landscaped garden, swimming pool, jacuzzi, fitness gym, children’s playground, and sky gardens. All these amenities will be for the exclusive use of Solana homeowners.

Arce Dairy halloween kits serves up spooky hits

S the family stays safely at home, this does not mean that kids can’t have their Halloween fun this year. Arce Dairy has put together cool Trick or Treat Kits for special ice cream chills and thrills, without any toil or trouble. Arce Dairy’s Trick or Treat Kits are available in 4 themes: Scavenger Hunt, Spider Web, Witches Hat, Spooky Monster and Ghost Pops. Each theme comes with activity ideas to engage kiddie creativity and imagination. The Scavenger Hunt set comes with 1 pint of Arce Dairy Ice Cream (in choices of chocolate, vanilla, strawberry, rocky road or cookies & cream), 1 pack of sprinkles, 1 pack of marshmallows, 2 wafer sticks, 4 sugar cones, 2 Ice cream cups and 2 wooden spoon, a Halloween mask and a scavenger hunt list. Spin some fun with the Spider Web kit, which contains 1 pint of Arce Dairy Ice Cream (in choices of chocolate, vanilla, strawberry, rocky road, or cookies & cream), 1 pack of sprinkles, 1 pack of marshmallows, 2 wafer sticks, 4 sugar cones, 2 Ice cream cups and 2 wooden spoon, a Halloween mask, and a spider web game. The Witches’ Hat Set is simply spellbinding! It instructs kids on how to make their special cookies and ice cream creations. It comes with 1 pint of Arce Dairy Ice Cream (in choices of cookies & cream, mint choco chip, or blueberry cheesecake), 4 chocolate cookies, 4 sugar cones, a Halloween mask, and a DIY witches’ hat guide. Have your kids decorate the Spooky Monster set and enjoy this treat with kids and grown-ups alike. Comes with 1 pint of Arce Dairy Ice Cream in choices of chocolate or vanilla flavors, 4 chocolate chip cookies, 1 pack monster eye candy toppers, a Halloween mask, 2 pcs of foil and a DIY spooky monster sandwich guide. The Ghost Pops set is so tasty — they’ll disappear right before your eyes! Kids can get started by decorating/drawing on the pop sticks (these will be the “feet” of the ghosts). Then, place the eye balls candy toppers into the pops to resemble eyes! Each set contains 2

pcs vanilla popsicle, 2 pcs chocolate popsicle,1 pc ube popsicle, 1 pack eye balls candy toppers, 1 piece Halloween mask, 1 DIY ghost pops guide. “These Halloween kits will definitely be fun not just for the kids but for the whole family, we took extra time to plan the kits to make sure Halloween 2020 will still be fun despite our current situation now”, said Ariel Arce, VP Operations of Arce Foods Corporation. To make sure our ice cream are in good quality upon transport, it is safely packed in an insulated bag covered with dry ice. All riders have been trained on good hygiene and sanitation for delivery, safe package handling and safe customer contact,” added Ariel Arce. Each limited-edition kit is available for only P500, excluding delivery fee, mode of payment are cash on delivery, GCash and BDO deposit. Kits need to be pre-ordered until October 23, 2020 to be delivered by Arce Dairy riders between October 26 to 31 from 9am to 7pm. Check out the kits in this link https://cutt.ly/arce-dairy-halloween-kits. Arce Dairy delivers Ice Cream daily, for order send a viber message to 0966 641 6663.

www.businessmirror.com.ph

Banking&Finance

China Bank rakes in over ₧15B from bond offering

hina Banking Corp. raised more than P15 billion after concluding its fixed rate bond offering this week. The Sy-owned bank said in a disclosure on Wednesday that the offering—in denominations of P100,000 and increments of P50,000 thereafter—closed on October 5, which is ahead of the original October 14 schedule, thanks to robust demand. Offer period began on September 28. The 2-year bonds carry a fixed rate of 2.75 percent per annum. Proceeds of the transaction are earmarked for the bank’s strategic initiatives and expansion plans. Shares in China Bank rose by 0.46 percent, or 10 centavos, to close at P21.75 each amid the 0.72-percent dip for the benchmark index on Wednesday. “We are grateful for the strong investor support for our second peso bond issuance,” China Bank President William C. Whang said. “The overwhelming demand speaks of the investing public’s trust and confidence not only in the bank but also in the capital markets in these challenging times.” China Bank said that the bonds will be coming from its P45-billion bond and commercial paper program. These will be listed on the Philippine Dealing and Exchange Corp. on October 22. China Bank Capital Corp. served as the issue coordinator, structuring advisor and bookrunner of the transaction. Meanwhile, the listed bank tapped Hongkong and Shanghai Banking Corp. Ltd., Philippine Commercial Capital Inc. and Standard Chartered Bank as the joint lead arrangers and selling agents. In September, the bank’s board of directors green-lighted its plans to tap the international financial market via $2-billion medium term note program. “The proceeds of this program will be used to support the Bank’s general funding requirements,” China Bank said. The bank has yet to disclose further details on the matter. In the first half, China Bank saw its net income grow by 24 percent to P5.2 billion year-on-year. This translated to return on equity of 10.64 percent and return on assets of 1.07 percent for the period. The bank’s loan portfolio rose by 11 percent to P593 billion in the first semester as it continued to provide loans across market segments. The bank said its asset quality has remained healthy with a nonperforming loan (NPL) ratio at 1.6 percent and NPL coverage at 146 percent. Tyrone Jasper C. Piad

BusinessMirror

Thursday, October 8, 2020 B2-1

BSP liquidity-infusion moves boost banks’ trading income

By Tyrone Jasper C. Piad

@Tyronepiad

he liquidity-infusion measures by the Bangko Sentral ng Pilipinas (BSP), which have supported the bond market, allowed banks to book higher trading gains, RCBC Chief Economist Michael L. Ricafort told the BusinessMirror. “The sharp increase in trading income of banks has been largely brought about by the sharp increase in bond prices locally, in the US and in many countries worldwide as central banks aggressively cut key interest rates, monetary easing measures and other liquidity infusion measures to help further reduce borrowing costs that spur greater economic activities to counteract the adverse effects of Covid-19 [coronavirus pandemic 2019],” Ricafort said in an email.

Monetary authorities have cut the local policy rates by 175 basis points to a record low of 2.25 percent. Ricafort said this showed that the BSP has one of the most aggressive policy stances among relatively bigger economies. He explained the interest rate cut prompted the market to have “new record lows for local interest rate benchmarks ... that led to record high prices for bonds income, which in turn, led to huge trading gains for banks.” In the first half of the year, the local

banking system booked trading income of P70.20 billion, which is more than double last year’s P32 billion in the same period. The industry’s overall net profits for the same period, meanwhile, dropped by 22.01 percent to P86.55 billion from P110.97 billion last year. Ricafort said that the surge in trading gains can help banks offset potential losses as nonperforming loans (NPLs) increase. The local banking sector’s gross NPLs in the first semester stood at P277.25 billion, which is 28.41-percent higher than P215.91 billion year-on-year.

Increasing bad loans

Meanwhile, the bad loans of Asia-Pacific banks, including those in the Philippines, are expected to double by 2022 as the economies continue to struggle amid the pandemic, Moody’s Investor Service said. In a report, the debt watcher said that the respective gross domestic product (GDP) of these countries would decline significantly this year. While expecting a recovery in 2021, Moody’s said that GDP growth will still be below the pre-pandemic level. The Philippines, along with India,

Thailand and Hong Kong, is expected to suffer the deepest cut in the region, the credit rating agency said. The country has already slipped into an economic recession after its GDP contracted in two consecutive quarters. Hence, Moody’s said borrowers are expected to find settling financial obligations on time challenging amid the economic slump. “Our analysis is focused on cumulative outcomes at the end of 2022, rather than the precise timing of NPL [nonperforming loans] formation, because various loan moratoriums implemented in response to the pandemic will delay the recognition of problem loans,” Moody’s said. With asset quality bound to deteriorate, the debt watcher said that loans that would be most affected are unsecured personal loans, vehicle loans and loans provided to small-scale and medium-scale enterprises. In addition, borrowings extended to sectors severely disrupted by state measures against the pandemic are seen to hurt loans portfolio. Among these are transportation, hospitality, leisure and retail.

Goldman eyes $14B for largest fund since ’08 crisis

oldman Sachs Group Inc. boosted the size of a new credit fund to $14 billion in what is shaping up to be one of the largest debut investment vehicles ever raised. The bank, which set out with a target of $5 billion to $10 billion, is now expecting to finish fundraising with a $14-billion war chest to pour into companies in need of fresh liquidity. A Goldman representative confirmed the goal for the first in a new family of funds, called West Street Strategic Solutions Fund I. The $14-billion mark is notable for the first iteration of a fund series new to investors. Such funds seldom crack $10 billion on their first go-round barring one exception:

the $100-billion SoftBank Vision Fund, which is in a league of its own. The Goldman credit fund will provide a boost to the bank’s goal of raising $100 billion for investing in what’s known in the industry as alternatives. Instead of guiding client cash into plain-vanilla asset classes such as stocks and bonds, the funds are focused on seeking outsize returns in less-trafficked corners of the market including distressed credit, real estate and private equity. Fundraising success will also help cement Julian Salisbury’s profile as one of Goldman’s most powerful executives. The 48-year-old Brit has climbed rapidly, from running a secretive and successful group

betting Goldman’s money inside its trading group, to now helping run a newly created division that rivals the firm’s dealmaking group in size and profitability, second only to the markets division.

Largest fund

The biggest fund Goldman Sachs has ever raised, in what was previously its merchant bank, was a $20-billion private equity fund, in 2007. Goldman set off to raise the new opportunistic credit fund as the rapidly spreading Covid-19 pandemic jolted markets earlier this year. Even as broader market measures have stabilized and rebounded since then, the disparate impact across industries has

left many companies still in need of fresh cash to keep their finances stable. The fund is a tie-up between the team that runs Goldman’s private-credit business and the special-situations group. Even though it’s a debut fund in a new series, investors did have the benefit of peering into the track record of SSG, which has helped lift Goldman’s profits over the years. The fund has already started investing, most notably pouring $1.2 billion into American Airlines Group Inc. The investment was structured as a debt deal backed by the airline’s brand and collateral including airport landing slots at New York’s LaGuardia and Washington’s Reagan National. Bloomberg News

B2-2 Thursday, October 8, 2020

Banking&Finance BusinessMirror

PhilHealth privatization may be costly to members–CEO

By Jovee Marie N. dela Cruz

@joveemarie

he head of the Philippine Health Insurance Corp. (PhilHealth) has urged the leadership of the House of Representatives to further study the impact of the proposed privatization of the state-owned insurance agency. This was what PhilHealth President and CEO Dante A. Gierran told lawmakers as the Lower Chamber is now finalizing its committee report on issues involving the PhilHealth. According to Gierran, the proposal privatizing the PhilHealth might be burdensome and costly to its members. He added it might also “send the wrong signal” with respect to the capabilities of the government to steer the agency back on the right track. Last month, Marikina Rep. Stella Luz A. Quimbo filed House Bill 7429 granting the President the power to privatize the PhilHealth. HB 7429 believes doing so would make Philhealth “more effective, efficient and innovative in the provision of social health insurance.” During the recent hearing on the

issues surrounding PhilHealth, Justice Undersecretary Adrian Ferdinand S. Sugay revealed that the task force probing the insurer has found many issues with the implementation of the Interim Reimbursement Mechanism (IRM). The IRM is an advanced payment scheme to give healthcare institutions cash in advance to respond to natural disasters and calamities. Sugay said the parameters on the implementation of the IRM “were stretched a bit too much.” “The parameters are very clear. What we have found so far is that [these parameters were not fully observed],” he said. The House Committee on Public Accounts said it would soon release the results of its investigation on the alleged corruption in PhilHealth.

Earlier, President Rodrigo Duterte defended anew Health Secretary Francisco T Duque III by saying there is no proof of alleged misfeasance or malfeasance in Duque’s role as Philhealth Chairman. This despite the Senate Committee of the Whole concluded that Duque “connived with and participated in the consummation of the punishable/ illegal act, specifically for the improper and illegal implementation of the IRM as well as failure to withhold tax liabilities of health care institutions to which they released IRM funds.” But in his recent address, Duterte stressed that several people have advised him that he should drop Duque. Duterte said Duque “is a hardworking government worker.” “[I’m a lawyer] and I know what is probable cause and prima facie,” the President said. “These are two phrases that are important before you can file a case in court. [The] problem is, I have reviewed—a cursory reading, really—and I have yet to find ‘yung sabi nila na idedemanda si Duque dahil may kasalanan.” [what others are saying they’ll sue Duque because he’s liable for something.] “I have read the findings [of Philhealth Task Force] and for the life of me I cannot really find a good reason to prosecute an innocent man. Mine is to not really prosecute just for the sake of somebody being

prosecuted. My job is to see to it that the rule of law—the rules for or against a person—are followed,” Duterte added. Sen. Ping Lacson has also consistently called for the inclusion of Duque in the case, referring to an insider tip mentioned by Senate President Vicente Sotto III. Lacson belies the statement of Duque and joined Sotto calling the President to meet with legislators so evidence against Duque can be presented. For his part, Duque reiterated “I regret I was not there to get into the bottom of the IRM since my priority was overtaken by Covid-19. I was so busy as chairman of the IATF. I was not able to attend many PhilHealth board [meetings] for almost four months.” He said the DOH secretary is chairman of 67 different bodies. “I serve at the pleasure of the President and I remain thankful to him for giving me the elbow room to focus on my work and be my firewall. I can’t navigate our public health challenges if I have to respond to all the issues legislators are blaming me,” Duque said. “All I ask is that they be fair. Some have said that because of the pandemic, I am free for all. I ask them to give me some breathing room since the attacks has been consistent since last year. Let’s focus on the pandemic and getting our country back to its feet,” Duque added.

www.businessmirror.com.ph

Security Bank feted by group receiving its support

ecurity Bank Corp. announced it received the centennial community award from the Zonta Club of Makati and Environs that recognized “the bank’s commitment and support for the club’s projects namely the Bravo Awards and the FilipinaZ Fair.” According to Security Bank, the award is given to individuals, businesses, organizations or agencies in the Zonta Club community “with a proven track record of empowering women.” “In a move to actively promote women empowerment, the majority of Security Bank employees are women, with many holding key management positions,” the bank said in a statement. “Many of its clients and business partners are female business owners and decision-makers.”

“Women Empowerment has always been important to Security Bank as an organization. We make it a point to give back and support women and communities,” Ceres Joyce M. De Jesus, head of brand and communications of Security Bank, was quoted in the statement as saying. “After all, better banking is also about creating better opportunities for all; and this includes women.” Security Bank said it has been a partner of the Zonta Club for several years and has supported many of the organization’s projects. The “Bravo Awards” is a principal advocacy project honoring women in various fields of endeavor, while “FilipinaZ Fair” is an annual fundraising bazaar showcasing products made by women entrepreneurs.

HOUSING PACT This photo provided by the Social Housing Finance Corp. (SHFC) shows

officers presenting the memorandum of understanding between the SHFC and the local government of General Mariano Alvarez, Cavite, signed last September 25. SHFC said the agreement will provide decent and affordable housing to more than 1,000 marginalized families of the municipality. The SHFC said it has provided security of tenure to more than 400,000 families through about P24 billion in loan assistance and has partnered with nearly 100 local government units. CREDIT: Social Housing Finance Corp.

World Banking BusinessMirror

www.businessmirror.com.ph

Thursday, October 8, 2020

B2-3

ECB study finds deteriorating independence of central banks

entral banks’ ironclad independence appears to be waning due to attacks from politicians, according to a European Central Bank working paper.

Libya’s central bank calls for resumption of oil output

ibyan Central Bank Governor Sadiq Al-Kabir called for an immediate resumption of oil operations to shore up the economy amid an unprecedented decline in monetary reserves. “We need to raise the production to 1.7 million barrels per day to cover the country’s spending,” Al-Kabir said at a forum that centered around a discussion on Libya’s economic situation. Shutting down the country’s oil operations repeatedly from 2013-2020 has generated about $180 billion in losses, Al-Kabir said. Bloomberg News

That’s according to a study that looked at 13 monetary authorities, accounting for 75 percent of global economic output, in the 2018-2019 period. The authors—Rodolfo Dall’Orto Mas, Benjamin Vonessen, Christian Fehlker and Katrin Arnold—found that nearly half of central banks in the study experienced a de facto deterioration of autonomy. “The feature of independence most affected in our sample of central banks

has been institutional independence, with government attacks or interferences largely focusing on pressuring monetary policy to look into growth objectives,” they wrote. Monetary policy-makers across major economies enjoy statutory independence from government to shield them from pressure to help finance deficits, which can cause runaway inflation. While the foundation for an autonomous US Federal Reserve got laid in

1951, the drive toward central bank independence gained steam in the final years of the 20th century. With rate setters having resorted to government bond purchases and other unconventional monetary stimulus measures, there’s been plenty of lambasting from politicians in recent years, prompting concerns the golden age of institutional independence might be ending. Turkish President Recep Tayyip Er-

dogan fired his country’s top monetary policy-maker last year and US President Donald Trump repeatedly criticized Fed Chair Jerome Powell for raising interest rates. “The deterioration in the de facto independence of central banks is a concern, as the reasons that helped forge the pre-crisis consensuses on central bank independence to achieve price stability remain valid today,” they said. Bloomberg News

Fed’s Powell: Lack of further stimulus imperils recovery

ASHINGTON—Federal Reserve Chair Jerome Powell warned on Tuesday that a tentative recovery from the pandemic recession could falter unless the federal government supplies additional economic support. Yet hours after Powell’s remarks, President Donald Trump announced that he was cutting off talks with Democrats over a new economic aid package until after the November elections. Trump’s move would mean that millions of jobless Americans and struggling businesses and states will receive no further federal support for weeks, if not months, to come, just as the economy is struggling to recover from a deep recession. Powell, in his speech, asserted

that economic support from the government—including expanded unemployment insurance payments, direct payments to most US households and financial support for small businesses—has so far prevented a recessionary “downward spiral” in which job losses would reduce spending, forcing businesses to cut even more jobs. But the US economy still faces threats, and without further aid, those downward trends could still derail the recovery, Powell said. Trump, in his tweet, offered a far rosier view. “Our economy is doing very well,” he tweeted. “The Stock Market is at record levels, JOBS and unemployment also coming back in record numbers.” Trump’s decision

to abandon talks with Democrats, sent stock prices tumbling after they had risen earlier in the day. The S&P 500 index closed down a sharp 1.4 percent. In his speech to the National Association for Business Economics, a group of corporate and academic economists, Powell said: “The expansion is still far from complete. Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses. Over time, household insolvencies and business bankruptcies would rise, harming the productive capacity of the economy, and holding back wage growth.” The chairman noted that the economic recovery has slowed in

recent months compared with its rapid improvement in May and June. Incomes fell in August and job growth weakened in September, slowing to just 661,000, less than half the gains of 1.5 million in August and 1.8 million in July. The economy has recovered only slightly more than half the 22 million jobs that were lost in March and April. “A prolonged slowing in the pace of improvement over time could trigger typical recessionary dynamics, as weakness feeds on weakness,” he said. During a question-and-answer session with economists, Powell noted that the pandemic recession has disproportionately harmed inperson service industries, especially restaurants, bars, hotels, travel com-

panies, movie theaters and other entertainment venues. The heavy damage to those industries has left millions of people unemployed, likely for an extended period, until they are either finally recalled to their previous jobs or switch to new careers. “The right thing to do and the smart thing to do in the long run is to support those people as they return to their old jobs or find new jobs,” the chairman said. In recent months, in speeches and in testimony to Congress, Powell has repeatedly urged lawmakers to enact an additional economic aid package. Fed chairs typically avoid inserting themselves into policy debates, but Powell has stressed that the Fed can only lend money to help spur growth. AP

B2-4 Thursday, October 8, 2020

Security Bank cements its better banking promise for new businesses despite the crisis

PLDT, Smart ramp up e-learning initiatives as school year opens under new normal

the wireless arm's partnership with educational apps startup Edukasyon.PH.

Beyond Fiber

OR 33-year-old Daisy Jane Diola of Cebu City, there could not be a better time to go back to school, betting against all odds in a pandemic. Giving up her sales job, she embraced technology and started attending online classes, one of hundreds of thousands nationwide now braving the challenges of e-learning in the new normal, and benefiting from local partnerships with PLDT, the country’s biggest and only integrated telco company. “I am new to this kind of set-up, but I am always open for new learnings,” Diola shared. “I am thankful for all the support we have been getting, especially our connectivity devices.” PLDT, its wireless subsidiary Smart Communications, Inc. (Smart), and PLDT Enterprise have teamed up with over a hundred schools, colleges and universities nationwide, as well as tech giants Microsoft and Google to make connectivity and digital solutions more accessible to the education sector. “As the academic community gears up for the coming school year amid the new normal, we are one with them in ensuring that Filipino teachers and students are equipped with the best connectivity solutions and global-class e-Learning tools and platforms to aid their online education,” said Alfredo S. Panlilio, Smart President and Chief Executive Officer and PLDT Chief Revenue Officer.

e-Learning tools and platforms

THESE tools include discounted PLDT Home Wifi and Smart Bro Pocket Wifi units powered by Smart LTE. To date, Smart provides high-speed mobile internet service to over 93% of the

country’s cities and municipalities and 95% of the population. Under the Study Smart program, Smart and its partner distributors have provided these devices to various academic institutions nationwide. The company also partnered with the local offices of the Department of Education (DepEd) to provide pre-loaded 5G-ready SIMs for the use of students with their LGU-issued tablets for the coming school year. Smart provided 25,000 SIMs to DepEd Batangas City, 15,000 SIMs to DepEd Lipa City and 3,000 SIMs to DepEd Noveleta, Cavite. These SIMs are pre-enrolled to the Smart Infocast broadcast tool so that the schools will be able to coordinate directly with the teachers and students. In partnership with the Minor Basilica of our Lady of Manaoag, PLDT is also set to provide internet connectivity to 10 chapels in the Municipality of Manaoag. The Basilica and the Manaoag DepEd plan to use the PLDT Fibr Wifi hotspots for the distance learning needs of students in the community. PLDT will likewise provide connectivity via PLDT Fibr to the DepEd Region 3 office in San Fernando, Pampanga, to help with their region-wide coordination activities in preparation for the school opening. In addition, Smart has also partnered with laptop manufacturers and distributors to make these devices more affordable and accessible. Bundled with Smart Bro Pocket Wifi, these laptops and tablets are also available on installment basis in select distributors. Smart Prepaid also launched on September 12 the first ever Smart University virtual campus. This is in line with the recent launch of Giga Study, and

PLDT Enterprise has also partnered with schools nationwide and offered Beyond Fiber, an all-in-one digital solution that will enable businesses of any size, such as the academe, with curated digital tools and wi-fi fit for enterprise—all anchored upon business-grade fiber. PLDT’s fiber infrastructure, the country’s most extensive fiber network, is now nearly 360,000 kilometers nationwide. The group’s partnership with global IT giants Microsoft and Google, for instance, has also helped ePLDT, the ICT arm of PLDT Enterprise, deliver highly effective products and packages that support the sector’s push to jumpstart e-learning. ePLDT’s portfolio includes Microsoft Office 365 for Education, which includes Microsoft Teams for Education, which can be used by schools to build collaborative classrooms, create and distribute assignments, foster professional learning communities and connect with colleagues from a secure Office 365 Education experience.e

No learner left behind

PLDT, through its Infoteach Outreach Program, has also been providing learning opportunities to high school students as well as elementary and high school teachers nationwide by upgrading their cyber technology skills through internet basic IT education. In support of DepEd’s Basic Education-Learning Continuity Plan (BE-LCP), CVIF, Smart and the PLDTSmart Foundation are working together to ensure that the teaching and learning process continues despite the pandemic. DLP is an independent learning strategy available in various delivery modalities– online, modular, TV, and radio, and trains students to learn with minimal intervention from teachers. These key initiatives of PLDT and Smart demonstrate the application of ICT for development, in support of the Group-wide advocacy to promote digital inclusion. These initiatives also aim to contribute to the achievement of the United Nations' Sustainable Development Goals, particularly UN SDG #4 of providing quality education.

HE pandemic has caught the world off guard. Many local businesses had to quickly adapt to this new reality — from minor tweaks on how they resume their business to major overhauls like changing their distribution or business models -- just to survive. As many industries steer through this challenging landscape, most will try to recover by embracing new innovations and opportunities. Across the board, many have raised a common major concern — how can I run my business digitally? “Prior to this pandemic, heavy users of our digital cash management solutions were mostly larger corporations. However, at the onset of ECQ, the clamor to shift suddenly emerged,” SVP Jones Diokno, Cash Management Head, recounts. The shift of enterprises to digital has been made easier by Security Bank’s BusinessPlus account. More than just a business account, it also comes with free access to the award-winning and easy-to-use cash management solution, DigiBanker. This helps business owners accomplish secure fund management and execute operations such as eGovernment payments, payroll processing, auto-check cutting, auto-debit, credit facilities, and many more in their homes. “For businesses using traditional collection methods like messengers or scanned deposit slips, Security Bank’s electronic collection platforms offer real-time view of received payments for easier reconciliation,” shares FVP Robbie Pablo, Head of Sales and Service Delivery. The BusinessPlus account also comes with 10 payroll accounts and 5 BusinessPlus debit cards that can be distributed to key work-from-home employees, with their own set monthly limits! “If clients are able to maximize and outsource the administrative work by using our tools, they can focus better on their business,” Pablo adds. Customers no longer need to go to a branch to submit their requirements. Business owners can now open a Security Bank BusinessPlus account securely through Skype for a maintaining balance requirement of Php 50,000. “With safety and convenience as the bank’s primary concerns, we had to make sure the process was seamless!” EVP John Cary Ong, Head of Transaction Banking Group shares.

The application comes in six easy steps: 1. Fill out the online form and attach the opening requirements. 2. Take note of the reference number that will be provided upon submission of the form. 3. Print the application details that will be sent via email. 4. Attend the Skype interview for validation. 5. Start funding the account! And, 6. Kindly wait for a Security Bank representative to deliver the passbook and checkbook. Don’t forget to also hand over the required documents. When managing a business, turn-around time in cash flow is crucial. For businesses that have check transactions from clients based in the USA, Security Bank streamlined clearing of checks drawn from a USA bank (or even US Treasury Warrants) in as early as 8 days, instead of the usual 30-45 days. In addition, Security Bank has also established partnerships to help their clients navigate these challenging times. In the early parts of ECQ, they partnered with Sprout.ph to offer free access to cloud-based HRIS solutions to all local businesses (even non-Security Bank clients) to help make the shift to digital a little easier. Aligned with the advocacy to boost start-up companies and help jumpstart the economy, they have also partnered with AFFI for their Buyanihan project, https://buyanihan.shop/, that supports Micro, Small and Medium Enterprises (MSMEs) during this pandemic. “We are hopeful that our MSMEs will bounce back. They just need the right support and tools to help give that boost,” Diokno shares. As a simple gesture and a way to support their local business clients, the Bank created a directory of its business clients, which they promote weekly on their Social Media pages and website at https://www.securitybank.com/ our-clients-businesses/ Entrepreneurship can be a big risk especially during this disruption. To navigate wisely through new challenges in the new normal, choose the right banking partner that prioritizes customers’ interest and needs. Partner with Security Bank today. Visit https://www. securitybank.com/business/.

Alaska Milk holds Alagang Alaska 10.10 Sale

Marco Polo Ortigas Manila provides convenience, secure environment

DAPTING to new realities requires a shift in the way we work and play. Marco Polo Ortigas Manila responds to the growing needs of both agile organizations and their employees for flexible workspaces that not only observe sound health and safety guidelines, but also provide modern conveniences that facilitate success. At the Marco Polo Ortigas Manila, guests may now look forward to making use of the Hotel’s seven event spaces on Level 9 for their business requirements. What the Hotel provides is a secure environment for guests to set up their work stations and hold meetings with the convenience of being at arm’s reach of ready support services. For a full day (use of 10 hours), Marco Polo Ortigas Manila provides the use of basic audio equipment and a virtual meeting space with highspeed Internet connection and on-site technical support. Onsite dining options from Lung Hin, Connect Lounge, and Café Pronto are also available for guests to enjoy, and a range of convenient and filling meal sets are available for advanced orders. Half-day (maximum of five hours) use is also available. Guests may choose to conduct their meetings or hold office in any of the Hotel’s available function spaces, most of which have access to natural daylight. Complimentary parking is also extended to confirmed guests, and acrylic barriers are provided if

these spaces are used for meetings or consultations. “What we provide at the Marco Polo Ortigas Manila are safe spaces for guests to work in full confidence,” said Resident Manager Joy Barleta. “The Hotel remains compliant with regulations issued by the national government, as well as the World Travel and Tourism Council’s Safe Travel’s bio-security protocols. These continue to serve as our guide in moving forward to

support guests in our new shared reality in re-starting our economy,” she added. For enquiries about the Marco Polo Ortigas Manila’s flexible workspace options, guests may call (632) 7720 7777 or email catering.mnl@marcopolohotels. com. Log-on to www.marcopolohotels.com for more updates and subscribe to alerts via facebook.com/MarcoPoloOrtigasManila and @MarcoPoloManila on Twitter and Instagram.

IX months after the lockdown restrictions were implemented in the country, many Filipinos continue to struggle with its effects. Last August, the Social Weather Station (SWS) released a report that says that the Philippines’ unemployment rate reached 27.3 million— roughly 45.4% of the country’s total workforce. While businesses have started reopening this month, many still struggle to make ends meet, especially those in areas where economic activity remains low. Staying true to its purpose of nourishing Filipino families and contributing to nation building, Alaska Milk has been extending a helping hand to various communities and frontliners since the onset of the pandemic. The brand, known for providing generations of Filipino families with easy access to nutrition, signed partnerships with LGUs and NGOs to help distribute assistance where it is needed the most. This month, the brand continues its string of relief initiatives with a month-long online sale that also doubles as a fundraising effort—the Alagang Alaska 10.10 Sale. “As a nation, we have seen many lose their lives and livelihood. But some have it worse than others. As a brand, we want to stay true to our promise of nourishing

Filipino families with the goodness of quality yet affordable milk. The Alagang Alaska 10.10 initiative is like a double-edged sword—it provides moms who continue to find ways to nourish their families with easier access to our products by making it more affordable through discounts. It also helps us raise funds which will go to helping those who are heavily affected by the ripple effects of the Covid-19 pandemic,” says Harvey Uong, Managing Director of Alaska Milk Corporation. Nourishing Filipino dreams for 48 years, Alaska started the 10.10 sale on October 6 via Alaska Milk’s official Lazada store and on October 10 in the brand’s official Shopee store. Everyone can enjoy up to 50% off on Alaska Milk products including, Alaska Ready-to-Drink Milk, Alaska Fortified Powdered Milk Drink, Alaska Créma AllPurpose Cream, Alaska Classic Condensed and Evaporated Milk, and Alaska Evaporada and Condensada. Moreover, 10% of the total sales made from the Alagang Alaska 10.10 Sale will go into helping those who are heavily affected by the pandemic in Capas, Tarlac. For more information, you may check out www.alaskamilk.com and follow @alaskamilkph and @alaskaredkitchen on Instagram and Facebook.

The World BusinessMirror

Editor: Angel R. Calso

Trump reports ‘no symptoms,’ returns to downplaying virus

ASHINGTON—President Donald Trump, said to be making progress in his recovery from Covid-19, tweeted his eagerness to return to the campaign trail on Tuesday even as the outbreak that has killed more than 210,000 Americans reached ever more widely into the upper echelons of the US government. As Trump convalesced out of sight in the White House, the administration defended the protections it has put in place to protect the staff working there to treat and support him. Trump again publicly played down the virus on Twitter after his return from a three-day hospitalization, though even more aides tested positive, including one of his closest advisers, Stephen Miller. In one significant national coronavirus action, Trump declared there would be no action before the election on economic-stimulus legislation—an announcement that came not long after the Federal Reserve chairman said such help was essential for recovery with the nation reeling from the human and economic cost of the pandemic. Stocks fell on the White House news. As for Trump's own recovery, his doctor, Navy Cmdr. Sean Conley, said in a letter that the president had a "restful" Monday night at the White House and "reports no symptoms." Meanwhile, Trump was grappling with next political steps exactly four weeks from Election Day. Anxious to project strength, Trump, who is still contagious with the virus, tweeted Tuesday that he was planning to attend next week's debate with Democrat Joe Biden in Miami and "It will be great!" Biden, for his part, said he and Trump "shouldn't have a debate" as long as the president remains Covid positive. Biden told reporters in Pennsylvania that he was "looking forward to being able to debate him" but said "we're going to have to follow very strict guidelines." Elsewhere in the government, the scope of the outbreak was still being uncovered. On Tues-

day, the nation's top military leaders including the chairman of the Joint Chiefs of Staff, Gen. Mark Milley, and the vice chairman, Gen. John Hyten, were in quarantine after exposure to Adm. Charles W. Ray, the vice commandant of the Coast Guard. It was not known how Ray contracted the virus, but he attended an event for military families at the White House on September 27. The Coast Guard said in a statement that Ray felt mild symptoms over the weekend and was tested on Monday. Also testing positive Tuesday was Miller, a top policy adviser and Trump speechwriter, who has been an architect of the president's restrictive immigration measures." Miller's wife, Katie Miller, who serves as communications director to Vice President Mike Pence, had the virus earlier this year. She had been in Salt Lake City with Pence where he is preparing to debate Democratic vice presidential nominee Kamala Harris, but she left as soon as she found out about her husband's diagnosis, officials said. She tested negative on Tuesday. Trump on Monday made clear that he has little intention of abiding by best containment practices when he removed his mask before entering the White House after his discharge from Walter Reed National Military Medical Center. Waiting aides were visible when he entered the Blue Room without a face covering. Trump's attitude alarmed infectious disease experts. And it suggested his own illness had not caused him to rethink his often-cavalier attitude toward the disease, which has also infected the first lady and more than a dozen White House aides and associates. Republican Sen. Susan Collins said Tuesday, "When I saw him on the balcony of the White House, taking off his mask, I couldn't help but think that he sent the wrong signal, given that he's infected with Covid-19 and that there are many people in his immediate circle who have the virus." AP

Thursday, October 8, 2020 B3-1

Hope for vaccine before election dims as regulators assert power

op officials in charge of making sure that a safe and effective Covid-19 vaccine is swiftly delivered to the American people waved caution flags on Tuesday, all but assuring that a shot won’t be widely available by Election Day. The Food and Drug Administration has been working for months to hammer out clear standards for vaccines seeking to be fast-tracked to market. The process has placed the agency at odds with the White House, which has wanted to get a shot approved by the time Americans head to the polls on November 3. On Tuesday, the FDA said it would demand two months of safety data before it would review any application for a vaccine emergency-use authorization. Additionally, any shot submitted will need to be considered by an independent panel. Those measures will likely add several weeks or months to a review. The release of the guidelines was followed by remarks from the head of the White House’s Operation Warp Speed program, Moncef Slaoui, who said that no vaccine manufacturer should apply for use of the shots until it has millions of them ready for use, in order to avoid a photo-op vaccine approval that leaves Americans demanding a shot few could actually get. Further, the head of the FDA depart-

ment that will review any submitted vaccine, Peter Marks, warned drugmakers that the agency could call upon rarely used powers to force the companies to disclose potential safety issues, after being asked about an investigation into AstraZeneca Plc’s vaccine candidate. The US trial of that shot has been halted since at least September 8. The day’s developments amounted to a display of muscle by the scientific and pharmaceutical establishment that has been racing to find a viable vaccine while attempting to resist political pressure to go even faster. Any vaccine cleared by the FDA will be taken by millions of healthy Americans. Missteps could have lasting consequences for people’s health and their willingness to take vaccines in the longer run. “We did face the threat of a vaccine emergency approval before the election and I think the chances of that as of today have been reduced substantially,” said Eric Topol, director of Scripps Research Translational Institute. President Donald Trump has always

been the biggest backer of making a vaccine available before the election. He has repeatedly announced the goal in contradiction of the top science officials in his administration, who have suggested that it’s much more likely that Americans will have broad access to an inoculation some time next year. At the same time, Trump, who tested positive for Covid-19 last week and spent the weekend in the hospital, has been losing ground in the polls to Democratic challenger Joe Biden. Slaoui, FDA Commissioner Stephen Hahn and other health officials in the administration have also made clear they won’t be rushed by Trump, pushing the message that the public’s trust that a vaccine is safe and works is far more important than any artificial deadline. Drugmakers have also pledged not to cut corners in the testing and approval process.

Public vetting

The guidance’s publication ends a protracted battle between the White House and the FDA. Trump had said last month he could overrule any standards he thought were too onerous, while agency officials have repeatedly said that they had already communicated the guidance to companies. “There are few moments I can think of where so much political dust was created by political officials for so little actual, practical effect,” said Trump’s first FDA Commissioner, Scott Gottlieb, at the John Hopkins University and University

of Washington Vaccine Symposium. Pfizer Inc., Moderna Inc., AstraZeneca and Johnson & Johnson all have vaccine candidates in late-stage clinical trials. Pfizer has said it could have the data to support an application for an emergency authorization as soon as this month. Moderna doesn’t expect to have such data until late November. J&J began its large phase 3 trial only recently. Like US regulators, drugmakers have also been eager to avoid the perception that they are bending to political interference. In a series of tweets, Pfizer Chief Executive Officer Albert Bourla said the drugmaker has “never discussed” the FDA’s vaccine guidelines with the White House and “will never do so as it could undermine the agency’s independence.” Bourla said Pfizer has full faith in FDA’s “ability to set appropriate standards for the approval of a Covid vaccine or treatment.” The regulator could reach deeper into its tool box, if needed. FDA officials indicated they will look carefully when concerns arise about a vaccine candidate and could compel drugmakers to make more information public. Marks, the agency’s top vaccines official, said that the FDA could force a company to disclose information when there are serious concerns about safety. Typically, companies under the FDA’s regulatory powers disclose such information voluntarily, though often with the agency’s encouragement.

Bloomberg News

The World BusinessMirror

B3-2 Thursday, October 8, 2020

www.businessmirror.com.ph

IMF head says global economy facing long climb to recovery

ASHINGTON—The head of the International Monetary Fund says that the global economy has started on a long climb to stronger growth with prospects looking a little better than four months ago. IMF Managing Director K ristalina Georgieva said on Tuesday that global economic activity suffered an unprecedented fall in the spring when 85 per-

cent of the global economy was in lockdown for several weeks. The situation currently is “less dire” with many countries experiencing a better-than-expected

rebound in recent weeks. “We continue to project a partial and uneven recovery in 2021,” Georgieva said in a speech previewing next week’s fall meetings of the 189-nation IMF and its sister lending agency the World Bank where the IMF will release its updated economic outlook. While there has been some improvement, downside risks remain high, Georgieva said in a videoconference speech to the London School of Economics. “The global economy is coming back from the depths of the crisis. But this calamity is far

from over,” Georgieva said. “All countries are now facing what I would call ‘The Long Ascent’—a difficult climb that will be long, uneven and uncertain. And prone to setbacks.” The global economy has stabilized because of extraordinary policy measures that established a floor, with governments providing around $12 trillion in support of households, Georgieva said. She also noted that central banks, including the US Federal Reserve, helped millions of firms stay in business by taking unprecedented monetary actions to provide

emergency loans. The support prevented an even deeper downturn, but also widened the gap between wealthy and poorer countries, Georgieva said. The IMF has done what it can to provide support to 81 poor nations by making more than $280 billion in lending commitments, Georgieva said. And the agency is prepared to do more with more than $1 trillion in total lending capacity. New IMF research suggests that increasing public investments by just 1 percent of GDP

across advanced and emerging nations can create up to 33 million new jobs, Georgieva said. One of the key topics to be debated at next week's meetings will be how to deal with the debt of low-income countries. Georgieva said rich nations should make more support available to poor nations in the form of grants, rather than loans. Some countries will need to have their debt burdens restructured, with support for that effort from rich countries as well as private creditors, Georgieva said. AP

39 nations criticize China’s treatment of minority groups U

NITED NATIONS—Nearly 40 mainly Western countries criticized China's treatment of minority groups, especially in Xinjiang and Tibet, on Tuesday and expressed grave concern at the impact of its new national security law on human rights in Hong Kong. The United States, many European countries, Japan and others called on China to allow “unfettered access” to Xinjiang for independent observers including UN human-rights chief Michelle Bachelet, and to urgently refrain from detaining Uighurs and members of other minorities. The 39 countries also urged China in a joint statement read at a meeting of the General Assembly’s human rights committee, “to uphold autonomy, rights and freedoms in Hong Kong, and to respect the independence of the Hong Kong judiciary.” Their statement, read by German Ambassador Christoph Heusgen, was

immediately followed by a statement from Pakistan on behalf of 55 countries opposing interference in China's affairs when it comes to Hong Kong. It said the territory is part of China, and the national security law ensures China’s “one country, two systems” policy on Hong Kong is enduring. Cuba followed with a statement on behalf of 45 countries supporting China's counter-terrorism and deradicalization measures in Xinjiang. It said measures taken by China in response to threats of terrorism and extremism were carried out within the law to safeguard the human rights of all ethnic groups in the province. Among the countries signing both the Pakistani and Cuban statements were Russia, Syria, North Korea, Venezuela and Cuba. The rival statements spotlight tensions between China and the West over human rights. Those tensions have escalated especially between the United

States and China, and include other issues including responsibility for the Covid-19 pandemic, trade, and Beijing's actions in the South China Sea. The predominantly Western statement said its 39 signatories shared the concerns expressed by 50 independent UN human rights experts in an “extraordinary letter” in June in which they urged the international community to “take all appropriate measures” to monitor China and “act collectively and decisively” to ensure its government respects human rights. They raised concerns including Beijing’s treatment of ethnic minorities in Tibet and Xinjiang, allegations of excessive force against protesters, reports of retaliation against people who spoke out about the coronavirus outbreak, and Hong Kong’s then proposed new security law. The 39 nations on Tuesday expressed grave concern “about the existence of a large network of ‘political

re-education’ camps where credible reports indicate that over a million people have been arbitrarily detained” in Xinjiang, and increasing reports of “gross human-rights violations.” “There are severe restrictions on freedom of religion or belief and the freedoms of movement, association, and expression as well as on Uighur culture,” they said. “Widespread surveillance disproportionately continues to target Uighurs and other minorities and more reports are emerging of forced labor and forced birth control including sterilization.” On Hong Kong, the mainly Western nations said they shared concern with another group of UN experts that the National Security Law “doesn’t conform to China’s legal obligations” and allows for certain cases to be transferred for prosecution to the Chinese mainland. They urged Chinese authorities to guarantee the rights protected by the International Covenant on Civil and Po-

litical Rights and the Sino-British Joint Declaration, which transferred British control of Hong Kong to China, “including freedoms of speech, the press and assembly.” China rejected the June statement and has pushed back on any outside interference in Hong Kong. Chinese Ambassador Zhang Jun accused the United States, Germany and the United Kingdom on Tuesday of abusing the United Nations' platform, politicizing human-rights issues, provoking “political confrontation” and insisting on “provoking antagonism.” “They spread false information and political virus, smear China, and interfere in China’s internal affairs,” he told the human-rights committee. “China firmly opposes and rejects that.“ He lashed out especially at the Trump administration, saying “your despicable acts are completely at odds with the trend of history” and that “blaming China cannot cover up your

poor human rights records.” He pointed to the more than 200,000 US deaths from Covid-19, racial discrimination and police violence in the US, and alleged war crimes calling the United States “the most belligerent country in the world.” Germany’s Heusgen countered that growing support for the mainly Western statement showed that “today there is a sign of hope for human rights, and there is a sign of hope for the Uighurs in China.” He said last year's statement only on the Uighurs was backed by 23 countries while this year's broader statement including Hong Kong has 39 supporters. “This is a signal that concerns about the Chinese policy toward the Uighur minority in China is growing, and there is worldwide concern,” Heusgen told reporters. It also sends a signal that China should stop tearing down mosques and stop forced labor and forced birth control, he said. AP

Editor: Anne Ruth Dela Cruz

Health&Fitness BusinessMirror

Celebrate Christmas with caution, doctors advise By Claudeth Mocon-Ciriaco

hildren always look forward to celebrating Christmas. With the Covid-19 pandemic, however, will children still have a joyous holiday celebration? Dr. Aileen Espina, National Director of the Philippine Academy of Family Physicians, emphasized that it is still possible to organize social activities for adults, children and the whole family provided that the proper distancing, contact reduction, and protection precautions are in place, especially for the more vulnerable members of the family. “We can achieve a happy Christmas,” Dr. Espina said during an online media forum hosted by the Healthcare Professionals Alliance Against Covid-19 which discussed various ways to protect ourselves against the virus over the holidays, an important Filipino tradition and value that the HPAAC understands. HPAAC is a group that represents various health-care organizations in the Philippines. Dr. Espina stressed that Filipinos are very innovative. “The bottomline is that we should be careful and the challenge is for all of us to be safe [during the Christmas celebration],” she said. The HPAAC said that as the holiday season approaches and Filipinos begin to prepare for the traditions of festive gatherings and reunions, it is important more than ever to shield our families and loved ones from the risk of Covid-19.

During the roundtable, HPAAC members Dr. Espina; Dr. Maria Carmela Agustin-Kasala, chair, Public Relations Engagement System Services Committee of the Philippine Pediatric Society; Dr. Anna Ong-Lim, chief of the Philippine General Hospital’s (PGH) Pediatric Infectious Disease Division; and Dr. Inday Dans, a pediatrician and epidemiologist from PGH, shared numerous tips on how to protect the family during Christmas, especially the children, who generally have fewer cases of the virus compared to adults both locally and internationally. The information shared during the event focused on how to prevent the spread of Covid-19 during gift-giving and small family gatherings. Some of the tips shared by the speakers include the wearing of face masks and face shields, except for children under two years, even during gatherings, physical distancing, and frequent handwashing. Should your family choose to hold festivities this season, the doctors said, it is best to have meticulouslyplanned outdoor reunions with a limited number of screened guests, a strict schedule, and no videoke or alcohol, as well as two weeks of preparation by minimizing contact with other people. “With everyone’s cooperation and participation, HPAAC firmly believes that it’s entirely possible to still have a joyous Christmas celebration, even in the new normal, and stop the spread of Covid-19 in the process,” the group said.

DepEd fights head lice with P3M worth of personal hygiene products

ediculus humanus or commonly known as head lice are often seen in school-aged children. They are so annoying and can make your child so uncomfortable as it causes the scalp to itch. Head lice can easily be passed on through direct head-to-head contact or by simply sharing items such combs, hats or even furniture and beddings. Recognizing how head lice can affect the sleep and performance of children, Lamoiyan Corp., a leading manufacturer of personal hygiene and home care products in the country, has donated over P3 million worth of Lamoiyan products to the Department of Education (DepEd) as it celebrated Head Lice Awareness Month and the fifth year of Kilusang Kontra Kuto (Movement Against Head Lice) initiative last month. Aside from encouraging good oral hygiene, Lamoiyan also advocates the correct way of treating head lice infestation, which is considered the second most common health problem among public school children after tooth decay.

Treatment shampoo Lamoiyan Corp.’s Licealiz Head Lice Treatment Shampoo effectively kills lice and nits after two weeks of use and prevents lice infestation from recurring. Its active ingredient, pyrethrin, which is a natural extract from chrysanthemum flowers, is clinically tested and proven safe and successful in killing lice and nits, while its conditioning formula keeps children’s hair soft, smooth and fragrant. Lamoiyan Corp.’s Licealiz Head Lice Treatment Shampoo initiated Kilusang Kontra Kuto in 2016, a coalition that has been battling head lice infestation nationwide for a kuto-free Philippines. The campaign includes yearly nationwide shampoo activity in schools in its commitment to fight head lice infestation or pediculosis and eliminate the social stigma associated with it. In light of the fifth year of this initiative, Lamoiyan Corp.’s Licealiz aimed to support DepEd’s Basic Education Learning Continuity Plan in the time

of Covid-19 (BE-LCP). This is the department’s response to the challenges posed by Covid-19 which covers the most essential learning competencies, multiple learning delivery modalities for teachers, school leaders and learners, required health standards in schools and workplaces, and special activities like Brigada Eskwela, Oplan Balik Eskwela, and partnerships. “We are grateful to the Department of Education for being very supportive of our Kilusang Kontra Kuto campaign. With our long-running partnership with DepEd, we were able to visit several schools, do shampooing activities among students, and share the correct way of combatting head lice since 2016,” said Lamoiyan Corp. Vice President for Marketing Bing Cavestany.

No annual activity Due to the pandemic, Lamoiyan Corp. temporarily cannot do their annual school shampoo activities. However, Cavestany said that Licealiz would like to consistently promote health and personal hygiene through their donation. Cavestany said that children or even family members are still susceptible to head lice infestation no matter the circumstances, especially with many staying at home and in close quarters during the pandemic. For their part, DepEd NCR School Health and Nutrition Unit Head Dr. Cionnie Precioso Genapayao, DepEd Region III Regional Director Nicolas Capulong and Regional Director Assistant Rhoda Razon thanked the company as they also received Lamoiyan hygiene products for the students of Central Luzon. These products include packs of Licealiz Head Lice Treatment Shampoo, Hapee Toothpaste, and Dazz Dishwashing Liquid to select regions for distribution among the students. Selected regions in Luzon are Central Luzon, Calabarzon, and National Capital Region. Central Visayas, Northern Mindanao, and Davao, on the other hand, are the beneficiary regions for Visayas and Mindanao. Claudeth Mocon-Ciriaco

Thursday, October 8, 2020 B3-3

Fight cancer through early screening, genetic testing

By Anne Ruth Dela Cruz

he was six years old when her mother died of breast cancer. Since her grandmother had also died of the same ailment, Nikoy de Guzman, President of ICanServe Foundation remembered being told by her mother’s surgeon that she had a high risk of getting breast cancer.

“I recall my mother’s surgeon telling me that when I reach the age of 18, I should go to her to have a check-up,” de Guzman related. “And I did that and it was just a physical breast exam and lo and behold, I was diagnosed with breast cancer when I was 28.” By that time, she already had a ten-month-old son. Throughout her years of check-ups, her oncologist was already telling her son that he, too, needed to have himself checked because he was a high risk as there were also cancer cases on the side of her son’s father. De Guzman also pointed out that her brother had recently died of cancer in the small intestine, hence her son’s high risk status.

Mammogram for her son

When she asked her oncologist what would be done to her son, she was told that he would need to undergo a mammogram. While de Guzman agreed to the procedure, she found it rather awkward. “I found it awkward because I think that if it is something that is in your blood already, you can do more. You can do more if you know,” de Guzman said. “So I think this is an urgent thing and if I survive this, I would like share my result with my family members because I have four nieces and one of them is just like me with many lumps.” The “urgent thing” that de Guzman was referring to was the genetic test BRCA 1 and 2.

According to the National Cancer institute, BRCA means breast cancer and BRCA 1 and 2 are human genes that produce tumor suppressor proteins. These proteins help repair damaged DNA and, therefore, play a role in ensuring the stability of each cell’s genetic material. When either of these genes is mutated, or altered, such that its protein product is not made or does not function correctly, DNA damage may not be repaired properly. As a result, cells are more likely to develop additional genetic alterations that can lead to cancer.

Elevated BRCA 1

In 2013, actress Angelina Jolie under went genetic screening and learned that she had a significantly elevated risk of developing breast cancer due to the mutation of the BRCA 1 gene. Due to this, she decided to undergo prophylactic double mastectomy to prevent the cancer from happening. BRCA 1 and BRCA gene testing are just two of the services being offered by Pascific Laboratories, a privately funded organization founded to improve access to precision health care in the Asia-Pacific region. It was incorporated in Singapore in 2018 and opened its laboratory during the last week of October 2019. The organization is anchored on more than 25 years of international

domain expertise in precision healthcare that is based and focused on Asia Pacific. Their service offerings include Clinical Services (Molecular Diagnostics), Contract Research (Biomarkers), Innovation (Digital Pathology) and Microbiome Health.

Precision health

Pascific Laboratories CEO Richie Soong defined precision health care as “the provision of health care according to an individual’s specific biological make-up. Meaning providing the right treatment to the right individual.” “This is opposed to the older practices of providing the same treatment to all individuals regardless of biological make up,” Soong explained. “Precision health care has been credited to providing increased survival and quality of life.” In addition to providing molecular tests like BRCA 1 and BRCA 2 which are tests that are done at the submicroscopic level of DNA, RNA and proteins, Pascific also provide liquid biopsy tests, “tests that can assess the best cancer treatment options from a blood sample instead of an invasive tissue sample.” “The main differentiator for Pascific Laboratories are our founders—we are Asian doctors and scientists who are amongst the leaders in molecular testing,” he said. “So when you get tests from Pascific, you know you are getting the best tests at the best prices with the best support and an understanding of Asia.”

Affordable best testing

Soong added that Pascific is “also on a mission to make the best testing affordable to as many people as we can in Asia—and to do that, we need a critical mass.” “We will do everything we can to make it easy for patients to have access to the best tests in the world. You and your doctor can call us to get advice on the best test for your health status and finances,” Soong explained. They are also willing to send their test kits to anywhere in the Philippines

and even home visits in the Metro Manila area. “When the results are ready, an easy to understand report is provided for you and your doctor to plan your precision healthcare. And as is our signature, the most important part is the international knowledge provided by the local staff available,” Soong said. “For us, it is not just the high quality test but that you and your doctor are fully supported, understand and get the most out of the complex results,” he added.

Early detection

De Guzman said the genetic and molecular tests are all in line with ICanServe’s motto of “Early Detection is Your Best Protection.” These tests, however, were unheard of when she and the other members of ICanServe were first diagnosed for breast cancer. “When it comes to these kinds of tests, I think it is more of an economics issue. It is not that popular. Here it is always about the surgery and then the chemotherapy afterwards, radiation and the medicines,” she said. De Guzman said that these tests had been offered to them many years ago but “it was six figures when it was offered to us.” When Soong offered her the tests, De Guzman said she was elated because she would finally know if she was prone to other types of cancer. “If it goes well with me, I am sure they will want to do it. I have not met anyone in ICanServe who has undergone this kind of testing. It is unchartered territory for cancer survivors in the Philippines. It is not discussed as much,” she said. Soong recommended that those who have a very high risk of getting cancer should get the test at the earliest possible time. “If you have the genes that cause cancer, you have peace of mind because you know what you have to do,” Soong said. “So it is important to know who has it and who does not have it and it does change the way you think and you will have peace of mind.”

New disinfection solution launched in time of Covid-19 crisis By Roderick L. Abad

new disinfection system has been launched in the domestic market during this Covid-19 pandemic to help organizations maintain the cleanliness of their offices and other facilities without worrying about chemicals that could harm not just their health but the environment as well. This new offering of JP Marzan Project Ventures Inc. uses Marella Water, an electrolyzed hypochlorous acid composed of pure salt and water. This solution is applied using two devices—the Micro-Mist System and the Nano-Mist System. The former is a humidifier that spreads 4.7 liters of Marella water per hour, covering around 150 square meters. The latter is a backpack spraying tool with a nano mist nozzle that focuses on specific spots.

More effective

According to JP Marzan Supervisor Yusuke Kondo, the Marella water solution is more effective compared to ordinary disinfectants. “Most disinfectants used here in the Philippines contain sodium hypochlorite and other chemicals that could endanger their health. So, we researched how to make disinfectants safer for people to use, and this became Marella Water,” he said. M are lla w ate r gu ar ante e s a 99.99 percent disinfection capability from Covid-19 and other viruses that could not be disinfected by alcohol like the norovirus, bacteria and microbes. It is safe for humans and animals. JP Marzan recently introduced its new service in Fukudaya Restaurant, located in Bonifacio Global City, Taguig, where it demonstrated the actual

application of the Marella Disinfection System.

Imported equipment, ingredients

All the equipment and ingredients that the company uses for the disinfection service are imported from Japan. Well-trained staff members handle its actual application. At present, the service is available in Metro Manila, Cavite, Laguna and Batangas. Nevertheless, customers from other provinces can still contact JP Marzan to avail of this. “We believe that we all need to work together to thrive and achieve success in the long run. Our new disinfection service shows our mission to deliver success to our clients through trustworthy partnerships and services, especially during these dire times when ensuring employees’ safety who are the backbone of every business will

determine success,” said Jay Marzan, chairman of JP Marzan. In 1972, the firm was incepted as RV Marzan Brokerage and used to handle customs brokerage and deliveries around Luzon. Since then, it has created the separate reputable logistics company consistent with the best business practices. It has also expanded its services in order to cater to the everchanging needs of various organizations nationwide. Aside from the new Marella Disinfection System, JP Marzan is also known for its other services, including heavy-lift support, trucking, forwarding, logistics, domestic distribution, warehousing, rigging works, plant transfer, factory machine installation, powerplant assembly, project consultation, equipment rental, civil engineering, and trading of industrial equipment and services.

PLEDGE OF SUPPORT. Reckitt

Benckiser Philippines (RB) pledged support to the Philippine government in its battle against the coronavirus pandemic, with a donation of a PCR testing machine and Lysol products to the Perpetual Help Succor Cebu Hospital, a Covid-19 designated facility in Cebu City. This support is in line with the national government’s Trace, Test, and Treat (T3) Program in collaboration with the private sector. Present at the turnover ceremony were (from left): Aleli Arcilla (president & general manager, RB), Secretary Vince Dizon (deputy chief implementer, IATF), and Vicky Wieneke (president, Kabisig ng Kalahi).

Envoys&Expats BusinessMirror

B3-4

Thursday, October 8, 2020

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HUMANITARIAN AID Ambassador Jana Šedivá (left) recently turned over a P6.6-million BANGLADESH SENDS GIFTS In observance of the birth centenary of Bangabandhu

Sheikh Mujibur Rahman, “Father of the Nation” of the People’s Republic of Bangladesh, its embassy in Manila donated school stationeries to the Missionaries of the Charities in the Philippines. Ambassador Asad Alam Siam (right) hoped that the educational supplies would help underprivileged students under the care of the sisters. Sister Ma. Christabelle MC (center) received the stationeries on behalf of the missionaries and expressed their appreciation to the embassy for making them a partner in its celebration of the “Mujib Year.” EMBASSY OF BANGLADESH

PCCI MEETING

Ambassador Benedicto Yujuico, president of the Philippine Chamber of Commerce and Industry (left), welcomed resident Ambassador-Designate of the Democratic Socialist Republic of Sri Lanka to the Philippines Shobini Gunasekera on October 1. The meeting explored potential areas of collaboration between PCCI and Sri Lanka. PNA/JOEY O. RAZON

US, PHL ink fresh ₧10.5-B pact to boost economic growth, devt

project funding from the Czech Republic’s Ministry of Foreign Affairs to World Vision Philippines through National Director Rommel V. Fuerte. The humanitarian assistance will provide access to economic opportunities by educating out-of-school youths in Barangay 649, Baseco Compound in the City of Manila and help them prepare for employment. It also includes a sustainable initiative for Baseco’s local government unit via the Technical Education and Skills Development Authority or Tesda. The embassy sees the one-year project helping a great number of youths to develop and strengthen core competencies as well as connect them with various stakeholders to lead productive and fulfilling lives. EMBASSY OF CZECH REPUBLIC FACEBOOK PAGE

India commemorates Gandhi’s 150th birth year

HE United States, through USAID and the Department of Finance (DOF), signed a new, five-year bilateral assistance agreement valued at more than P10.5 billion (about $213 million) to boost the country’s economic development and growth.

This agreement enables USAID and the Philippines to deepen their commitment in accelerating inclusive, broad-based economic growth through policies that increase investment and trade throughout the archipelago. New programs and activities will promote inclusive, market-driven growth; improve the business environment; expand economic opportunities through private-sector led innovation for medium and small businesses; and increase information and communications technology access for the digital economy which will benefit both producers and consumers. Activities also include strengthening local civil society organizations to advance locally led programming and policy-making in the Philippines,

as well as facilitating coalitions and partnerships between the government and other stakeholders toward data-driven decision-making. Additionally, USAID will continue to support Philippine government objectives by improving public sector transparency and accountability; advancing the rule of law and the justice system; and boosting local governments’ responsiveness to Filipinos’ needs. “This new USAID and DOF bilateral agreement will expand our support to help the Philippines achieve long-term, private sector-led economic growth and strengthen economic governance,” USAID Mission Director Lawrence Hardy II said. “These programs will create jobs and help ensure more inclusive, broad-based

AMBASSADOR Shambhu S. Kumaran (left) and Ambassador Laura del Rosario paid tributes to Mahatma Gandhi at the Centre for Peace Education in Quezon City. EMBASSY OF INDIA FACEBOOK PAGE THE new US-Philippines economic development agreement will enable projects to boost local economies through and beyond the pandemic.

economic development.” This bilateral agreement with the DOF is one of four new, five-year USAID-Government of Philippines Development Assistance Agreements set to launch within the year, with an anticipated total value of P32.7 billion (around $675 million) over five years. Other new agreements include: With the Department of Health: To improve underserved Filipinos’ health by strengthening health systems while improving the quality of health services, especially in treating tuberculosis, providing access to those who seek family planning services, and community-based drug dependence treatment; With the National Economic and

Development Authority: To protect ecosystems by promoting sustainable use of natural resources, enhance energy security, and build capacity to mitigate risks and respond to natural disasters; and With the Department of Education: To improve early grade reading, expand science and mathematics curricula, as well as increase out-ofschool youths’ access to education, professional, and technical skills development that will lead to new job opportunities, and strengthen education governance. In the past 20 years, the US has provided nearly P228.8 billion ($4.5 billion) in total assistance to advance the Philippines’s development goals.

HE Embassy of India in Manila marked the 150th birth anniversary of Mahatma Gandhi this year with a series of local events and tributes on October 1 and 2. Ambassador of India to the Philippines Shambhu S. Kumaran and Ambassador Laura del Rosario, president of Miriam College, paid their homage to Gandhi as they offered floral tributes at his bust in the premises of the Center for Peace Education on October 2. The bust was unveiled by India’s President Ram Nath Kovind during his state visit to the Philippines in October 2019. Three Filipino artists also offered visual tributes to the revered Indian intellectual. Ryan Managaysay, a social studies student at Samar State University, used his skill to transform a large fern leaf, or salikupkop, into a portrait of Gandhi. Managaysay has earned national fame for his unique art form, having earlier done similar portraits of influential personalities.

Also, on that date, Bharati Manila, an Indian expatriate women’s association supported by the embassy, staged a virtual show where kids from the local Indian community participated in a dramatic production that reenacted the life of Gandhi. Dr. Manuel B. Dy of Ateneo de Manila University also shared insights on the topic, “Gandhi and the Philippines.” The program also featured a rendition of Gandhi’s favorite hymn Vaishnav Jan by renowned Filipino singer Dr. Grace S. Nono. The evening prior, the embassy organized a special program via Facebook Live: Gandhi Katha (Gandhi Story) by Shobhana Radhakrishna as she presented in narrative form the “Enlightened One’s” vision that can help address pressing challenges of the times. In the last two years, the government of India has launched several worldwide initiatives and events to celebrate the revered historical figure’s universal messages of truth and ahimsa, or nonviolence.

Thailand heightens VMMC’s anti-Covid capabilities

EHEF 2020 draws thousands for quality higher education

HE Veterans Memorial Medical Center’s (VMMC) capability to respond to the ongoing coronavirus disease 2019 (Covid-19) got a significant boost following the Kingdom of Thailand’s donation of two negative pressure isolation rooms on September 25. Defense Sec ret a r y De l f i n Lorenzana, together with VMMC Medical Director Dr. Dominador Chiong Jr., received the donation from Thailand’s Ministry of Defense, Royal Thai Armed Forces, Siam Cement Group (SCG) Public Co., and Mariwasa Siam Ceramics Inc., represented by Ambassador Vasin Ruangprateepsaeng. The two negative pressure isolation rooms will aid in preventing the spread of contagious diseases, allowing health-care staff to perform critical medical procedures without the need to transfer patients or equipment within the hospital. “Especially dedicated to the [VMMC], this equipment will enable life-saving services to Filipino veterans who will need care during this Covid-19 pandemic, being the most vulnerable to the virus,” Lorenzana said, as he thanked the Royal Thai government for the donation to the Filipino people. Meanwhile, Ruangprateepsaeng shared that the Thai community

ESPITE challenges posed by the pandemic, education remains an essential and fundamental element in everyone’s way of life. According to European Union High Representative for Foreign Affairs Josep Borrell, education is the basis of equality and freedom and the best uplifting social tool: “This is the reason the issue of education in the time of the pandemic is central to the future of the world. People-to-people is one of the axes of the EU engagement with the Philippines.” The first-ever virtual European Higher Education Fair (EHEF) 2020 on October 2 and 3 has proven that quality education is still a top priority for students and educators alike. With the theme “Study in Europe: The Future is EUrs,” the online staging of the education showcase gathered 8,000 registered student participants who attended 29 webinars from 93 universities and 12 member-states. EHEF 2020 provided, for the first time, an online platform for aspiring local students who dream of studying in the EU. Delegation of the EU to the Philippines Chargé d ’Affaires a.i. Thomas Wiersing opened the event with an inspiring message,

DEFENSE Secretary Delfin Lorenzana (left) and Ambassador Vasin Ruangprateepsaeng DND PUBLIC AFFAIRS SERVICE/PNA

in the Philippines continues to cooperate and provide support to the Philippines’s Covid-19 containment efforts. “With the number of infections having reached 32 million people worldwide, it is now more important than ever that we stand together to ensure the safety of our people,” the envoy added. The Thai official also reaffirmed the kingdom’s commitment to work closely with the Philippines to build further upon the cooperation between the two countries and to tackle the challenges, including the health crisis.

Meanwhile, Lorenzana highlighted the strong Filipino-Thai relations through the years and the importance of regional cooperation in overcoming the present health crisis. “President Duterte called for a global alliance to combat this pandemic. Today’s turnover shows strong Asean regional effort in our ardent and collective desire to lessen the adverse effect of the virus to our people,” the defense secretary added. “May our countries sustain this enthusiasm and cooperation, as we transition to the new normal.” PNA/Priam Nepomuceno

reminding Filipino students that EU universities have a long history of quality higher education because of creativity, innovation and cutting-edge technology. Commission on Higher Education (CHED) Commissioner Aldrin Darilag also told participants that the pursuit of quality higher education paves the way toward a better future. Also present were ambassadors and representatives from the participating EU member-states: Ambassador of Belgium Michel Goffin, Ambassador of France Nicholas Galey, Ambassador of the Netherlands Saskia de Lang, Embassy of Czech Republic’s Deputy Head of Mission Jana Peterkova, Embassy of Hungary’s Deputy Head of Mission David Ambrus, Embassy of Germany’s First Secretary for Cultural Affairs Kai Tomzig, Embassy of Spain’s First Secretary Luis Morales, Philippine Italian Association General Manager Alessandro Milani, Advantage Austria Commercial Counsellor Christina Stieber and Embassy of Sweden’s Communications Officer Athena Cartagena. Aside from country presentations, the virtual fair also featured webinar sessions that closer interaction between participants and their chosen European schools. Virtual meeting rooms were also set up between EU higher educa-

tion institutions and their local counterparts, which provided more opportunities for linkages and partnerships. The two-day fair also recorded a first, as institutions were engaged as partners. Wesleyan University for Luzon, Silliman University for the Visayas, and Xavier UniversityAteneo de Cagayan for Mindanao hosted clustered presentations for interested students and educators alike in their respective regions. Other university-partners included De La Salle University, Rizal Technological University, Mindanao State University, Mabalacat City College, St. Louis UniversityBaguio, Tarlac Agricultural University, Ateneo de Davao, Notre Dame-Tacurong College, Cebu Technological University and University of The Cordilleras. Notable EU alumni, goodwill ambassadors, and Erasmus+ scholars also provided testimonials and tips about studying and living in the said region. EHEF 2020 was organized by the Delegation of the EU to the Philippines, together with the bloc’s member-states’ embassies, in partnership with CHED, and supported by BusinessMirror– Envoys&Expats as well as other media partners.

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life BusinessMirror

Updating a fairy tale: ‘The Boys in the Band’ THE cast of Netflix’s The Boys in the Band, with director Joe Mantello and playwright Mart Crowley.

REELING

TITO GENOVA VALIENTE

titovaliente@yahoo.com

HEN it was announced that the 1970s iconic cinema on gay angst and allure would be revived, I could almost hear Bette Davis as Margo Channing hissing: “It won’t play.” The 2020 iteration of The Boys in the Band is dated not so much because of its content per se but the context within which we view this film at present. So much has changed about homosexuality ever since the days before the Stonewall riots that the fears, taboos and anxiety of seven friends gathering for the birthday of one of them assume the patina of nostalgia and historical curiosity. Two perspectives are involved in this introspection: the way societies look at gay people and how cinemas depict them. These tandem of perspectives are closely intertwined that gay people—or homosexuals—are said to have come out of the closet twice. The first is from the closet in their homes, in their families and communities; the second is from the films that had shuttered them in euphemisms or comic tirades. The film remains the same: it is about those friends, plus a hustler who is to be the gift from one to the birthday boy, gathering at an apartment of Charlie. They would have handled themselves beautifully despite and maybe because of their differences, give and take the presence of this male prostitute who is charming because he really does not know anything outside his profession. But, suddenly, somebody calls Charlie. It is his friend from college. And he is straight. The odyssey of The Boys in the Band begins from a gathering where everyone is happy or has expectations of a lovely party. But when you put a group of characters armored with wit and capable of parrying repartees with repartees, then you get a night that is caustic. Everyone is charming up to a point; everyone is tragic to a greater degree. These were the stereotypes prevalent in those days about gays. Everyone speaks lines from camp scenes. Anytime, one expects either Bette Davis to walk in or Judy Garland to burst into a song. Lines are thrown for emphasis instead of empathy; dialogues glitter with beaded allusions obscure even for the greatest scholars of the classics unless they happen to be, well, gay. Heads are thrown following an insult; hands whisk away an opinion; eyes burn through sad jokes. It is a night where people are killed by words and not by guns. In this reunion are murderers of memories because these men, it seems, are hating each other forever. The past, for them, is either gilded in rococo or sharpened by a scimitar slicing through one’s recollection of a thousand and one nights they claim happened. But Scheherazade has blurred the realities for the sake of romance. Those nights are at best suspect. At worse, their remembrance of things past is a one-way ticket to the blues. Long after one of them had the guts to call his first love, he nurses that regret the rest of the night. He, like the others, are breaching the rule about one-sided love—never revisit the site where your

love was killed. We know they are friends but all throughout, we ask why they are friends. We know they love each other but they would rather play a game that would resurrect loves that have ruined them in their youth. Michael, the host, is so sure of himself only when he couches his opinions in epigrams. As Michael, Jim Parsons is a relentless traffic cop managing his friends as if they are always breaking pedestrian lanes and driving past red social lights. He is the gay assaulting a gay for his gayness. To his acerbic host is the man celebrating his birthday, Harold, who, in the movement and voice of Zachary Quinto, is Marlene Dietrich on marijuana and hallucinogen. Zachary ululates rather than talks, a priestess with the last word on human sacrifice at the altar of friendship. Robin de Jesus is the flamboyant gay male. He seems to court the label “faggot” and subverts it by being one, except that he adds the panache of all those Latina film goddesses of the 1950s. His is a small role but who cares? He gets to mouth the declaration of human rights made famous by Gloria Swanson/Norma Desmond: “I am ready for my closeup.” In this present cinematic dispensation where “Boy Love” runs as dominant theme in mainstream stories in mainstream mode and viewed by a mainstream audience, where boys tongue-kiss boys to the cheering squad of loving female fans, the closeted aspect of The Boys in the Band has remained a curiosity. But we should understand: its story is set in that period when gay men (and gay women) were not allowed to display their person in public. Thus, this party happens inside that apartment. When the door bursts open, and a couple (man and woman) sees Emory in one of his florid gestures, the look of disdain from the two is disconcerting. More disturbing, however, is the fear on the faces of the gay men. Helping this film age gracefully is the sterling cast: Matt Bomer is Donald. His character is so good-looking in the male sense of it that the hetero in the audience would perhaps pray that he be straight. But like the rest of the actors—who were all the members of the cast of the Broadway revival—he is openly out and gay. Brian Hutchison, on the one hand, is the straight friend who is so straight we look up to the gods to make him gay just so the narrative can have poetic justice. His Alan is vulnerable but, at the same time, he provides that bit of humanity in the film. He should because all the other characters are survivors and he is not. The Boys in the Band is directed by Joe Mantello, based on the 1968 play of the same name by Mart Crowley, who also wrote the screenplay alongside Ned Martel. Crowley had previously adapted The Boys in the Band for a 1970 film version directed by William Friedkin (The French Connection and The Exorcist). The film also stars Andrew Rannells, Charlie Carver, Robin Michael Benjamin Washington and Tuc Watkins. Ryan Murphy is the producer along with David Stone and Ned Martel. Before the film could be released, Mart Crowley passed away on March 7, 2020. The film is dedicated to his memory. The film was released on September 30 by Netflix. Available for streaming is a special, The Boys in the Band: Something Personal, which shows Crowley with the other personalities behind the revival, talking about the film and its legacy and contribution not only to the social history of gay movement but also to the notion of free speech and artistic freedom. ■

MOMMY NO LIMITS: ADVANCING FINANCIAL LITERACY FOR FILIPINO FAMILIES C4

Thursday, October 8, 2020

Spo

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C2 Thursday, October 8, 2020

LAKERS ONE WIN AWAY L

AKE BUENA VISTA, Florida—LeBron James woke up from his gameday nap Tuesday and decided it was time to send his Los Angeles Lakers teammates a message. He grabbed his phone and told the Lakers they were facing a must-win game. “I felt that vibe. I felt that pressure,” James said. “I felt like, for me personally, this was one of the biggest games of my career.” Message delivered. James and the Lakers are back in control of these National Basketball Association (NBA) Finals, one win away from the franchise’s 17th championship. James finished with 28 points, 12 rebounds and eight assists, Anthony Davis’s 3-pointer with 39.5 seconds left finally settled matters and the Lakers beat the Miami Heat 102-96 in Game 4. The Lakers lead 3-1 and can win the title when the series resumes Friday. “Big-time play. Big-time moment,” James said of Davis’s 3-pointer. “Not only for AD, but for our ballclub and for our franchise.” Davis finished with 22 points, Kentavious Caldwell-Pope scored 15 and Danny Green added 10 for the Lakers, who didn’t trail at any point in the final 20-plus minutes. The Lakers are now 56-0 this season when leading going into the fourth quarter. Jimmy Butler scored 22 points for Miami, which got 21 from Tyler Herro, 17 from Duncan Robinson and 15 from Bam Adebayo—who returned after missing two games with a neck injury.

“I just loved seeing our guys compete. I love how they respond in between those four lines,” Heat Coach Erik Spoelstra said. “This was a throwback game and there were some moments of truth there at the end, and probably the bottom line is they won those moments of truth.” He’s right. Whenever Miami had something going, the Lakers snuffed it out. James’s 3-pointer with 8:18 left in the third put the Lakers up 55-54 and set the tone for the way the rest of the night was going to go; LA leading, Miami chasing. “Like I always say, they’re a really, really, really good team and we’ve got to play damn near perfect to beat them,” Butler said. “We didn’t do that tonight.... We’ll watch this, learn from it, but we can’t lose another one.” The Lakers were up by seven with 2:27 left in the third after a 3-pointer by Davis; Miami scored the next six to get within one. Herro made a 3 early in the fourth to get Miami within one again; the Heat promptly fouled Markieff Morris on a 3-point try, and he made all three shots. Butler scored inside to tie the game with 6:27 left; James scored the next five points himself, including a three-point play where he ended up flat on his back after spinning the ball perfectly off the glass for a score on a drive while taking contact. “You have to credit our guys’ competitive spirit,” Lakers Coach Frank Vogel said. “They were flying around and just competing at an extremely high level that end of the floor.”

Jarencio: One game at a time in bubble

A bounce here, a bounce there. Those were the differences late, and the Lakers made their own breaks. Butler had a corner 3 that would have given Miami the lead rim out with 3:05 left; Caldwell-Pope made a corner 3 at the other end seven seconds later and the Lakers were up 9388. Miami then turned the ball over on a shot-clock violation; Caldwell-Pope scored on a drive for a seven-point lead. James said the job isn’t done. But he knows the Lakers are on the brink. “I love what we did tonight,” James said. AP

By Josef Ramos

THE Lakers’ LeBron James soars over and above the Heat’s Duncan Robinson (left) and Jimmy Butler during the second half of Game Four on Tuesday. AP

PHISGOC RECEIVED P1.4B, NOT P6B IN SEAG HOSTING T

HE Philippine Southeast Asian Games Organizing Committee (Phisgoc) clarified on Wednesday that out of the P6 billion government funding for the Games the country hosted last year, the organization received only P1.481 billion as financial support from the Philippine Sports Commission (PSC). “We clarify that out of the total P6 billion Philippine government budget for the 30th SEA Games under GAA2019, the PSC has only provided the amount of P1.481B as financial support to the Organizing Committee,” Phisgoc President and COO Ramon Suzara said in a letter sent to POC Secretary-General Atty. Edwin Gastanes. “The PSC has only completed remitting this amount to Phisgoc on September 4, 2020, from which we settled the lawful and valid obligations incurred for the hosting of the 30th SEA Games covered by said financial support,” Suzara furthered. “The remaining P4.52B GAA2019 budget for the 30th SEA Games was remitted to the DBM [Department of Budget anf Management] Procurement Service, and a certain amount also to the POC, or used directly by PSC for the equipment and services used for the 30th SEA Games.” Suzara made the clarification for the Phisgoc after POC board member Jesus Clint Aranas and athletics chief Dr. Philip Ella Juico told media about their intention to file charges against certain POC officials, incuding President Rep. Abraham Tolentino, for the organizing committee’s “failure to provide a financial statement on the SEA Games expenses.” The Philippines hosted the SEA Games for the fourth time—after 1981, 1991 and 2005—last November 30 to December 11, 2019, in four major venues—Clark, Subic, Metro Manila and Southern Luzon. “Since October 1, we read about the request of Messrs. Juico and Aranas in the news quoting both of them without even waiting for the POC leadership to officially act on their motion,” Suzara said. “Please tell them that we would appreciate receiving POC’s letter first, rather than hearing about their stunt in the media intended to undermine Phisgoc.” Suzara furthered: “Kindly remind them that

Suzara the POC and PSC are integral parts of Phisgoc, and their actions unnecessarily cast aspersions on the integrity of all these institutions.” The Phisgoc president said Juico and Aranas’s statements are “premature and appear to have been done in bad faith being immediately publicized in media to the prejudice of the Organizing Committee.” Aranas, along with weightlifting president Monico Puentevella, slammed Tolentino, the Phisgoc and certain members of the POC executive board in a video-linked news conference last Saturday after the archery president announced his ticket for the POC’s November 27 elections. Aranas is the sole challenger to Tolentino’s presidency. “At any rate, rest assured that Phisgoc has already substantially liquidated said financial support received from PSC. To date, we are nearing completion of our submitted liquidation reports to PSC covering said financial support received by the Organizing Committee,” Suzara said. “Upon full submission of our liquidation reports to PSC, our external auditors shall be able to finally conclude Phisgoc’s audited financial statement covering all funds received and used for the 30th SEA Games,” he added. “We shall finish our relevant financial and operational reports in the coming weeks, and submit the same to the PSC copy furnished POC in due course.” Phisgoc Chairman Speaker Alan Peter Cayetano, PSC Chairman William Ramirez and Tolentino received copies of the letter.

OR NorthPort Head Coach Alfredo “Pido” Jarencio, playing in a different environment inside the Clark bubble demands a different approach. “One game at a time,” Jarencio told BusinessMirror on Wednesday from the Quest Hotel, the Philippine Basketball Association’s (PBA) official residence as the league restarts its 45th season with the Philippine Cup at the Angeles University Foundation Gym on Sunday. “No coach right now will probably think of that [winning the title] outright. You can’t look that far ahead because we are in a very different situation right now,” the former University of Santo Tomas star and champion coach said. “Our approach here is one game at a time because this is a different environment,” said Jarencio, whose Batang Pier booked one of the biggest victories last conference—a 126-123 triple overtime win over top seed NLEX in a knockout game last November 27 at the Smart Araneta Coliseum. The No. 8 Batang Pier upset the Road Warriors in their quarterfinal duel twice to snatch a semifinal berth. Even without the fans, Jarencio expects the games in the bubble to be more competitive, but admitted his Batang Pier still need to get to their 100 percent. “All the teams went seven months without games and practices,” he said. “We only have nine to 10 days of preparation, so I think the team with the best condition and good preparation has the advantage in this conference.” Jarencio said he wants his players to also condition themselves mentally. “To fight anxiety,” said Jarencio as he pinned much of the team’s hopes on Christian Standhardinger, Nico Elorde, Sean Anthony and Kevin Ferrer. Only the injured Robert Bolick, who is recovering from an anterior cruciate ligament (ACL) right knee injury, is not in NorthPort’s roster in Clark. The team plays Blackwater at 6:45 p.m. on Monday.

JARENCIO

Démare takes Giro 4th stage; crash blamed on chopper gust

ILLAFRANCA TIRRENA, Sicily—French rider Arnaud Démare won the first mass sprint of this year’s Giro d’Italia in a three-way photo finish on Tuesday, and Portuguese rider João Almeida added a couple of seconds to his overall lead in the fourth stage. The finishing straight was positioned alongside the coast and Vini Zabu teammates Luca Wackermann and Etienne van Empel crashed hard when wind believed to be coming from the sea blew a barrier across the road. Vini Zabu in a later statement said “the barriers flew across the road because of a helicopter flying too low near the riders.” The team said Wackermann had a concussion, broken nose and other injuries. Van Empel reported only cuts to his hands. Démare finished just ahead of Peter Sagan and Davide Ballerini.

“I think it was a millimeter,” Démare said. “I had luck on my side.... I often train for the last surge behind my dad’s scooter. Today it paid off.” Geraint Thomas, the 2018 Tour de France champion, withdrew from the race before the stage after fracturing his pelvis in a fall on Monday. Thomas crashed in the neutral stage before Stage 3 began after getting a water bottle caught in his front wheel. Démare, who rides for the Groupama-FDJ team, required nearly 31/2 hours to complete the 140-kilometer leg from Catania to Villafranca Tirrena, which featured one third-category climb midway along the route before a flat finish. Sagan’s Bora-Hansgrohe team set a blistering pace in the finale, leaving Fernando Gaviria and other top sprinters behind. Sagan, the three-time world champion who is competing in his first Giro, also finished second

in Stage 2, which was won by Diego Ulissi. It was Démare’s second career win at the Giro. He won a stage in Modena last year to go with his two stage victories at the Tour de France in 2017 and 2018. Almeida earned a couple of bonus seconds by finishing second in an intermediate sprint. He now leads Jonathan Caicedo, the Stage 3 winner atop Mount Etna, by two seconds. “It was a bit stressful because I had to sprint for the bonus seconds,” Almeida said. “Then I could coast to the finish.” The race crosses over to mainland Italy for Stage 5 on Wednesday, a 225-kilometer leg from Mileto to Camigliatello in Calabria. The Giro was rescheduled from its usual May slot because of the coronavirus pandemic. The race ends on October 25 with an individual time trial in Milan. AP

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sMirror

DD “latest-finishing match” and “13 semifinals reached” to the considerable roster of French Open records owned by Rafael Nadal. The 12-time champion at Roland Garros withstood an early challenge from 19-yearold Jannik Sinner and pulled away to win, 7-6 (4), 6-4, 6-1, in a quarterfinal that ended at nearly 1:30 a.m. on Wednesday on a windy night with the temperature in the low 50s. Competition can continue that deep into the night in Paris this year because it’s the first time artificial lights are being used for play at the clay-court Grand Slam tournament. “Of course it’s not ideal [to] finish a match at 1:30 in the morning. But the problem is the weather. It’s too cold to play. Honestly, it’s very, very cold to play tennis, no?” Nadal said, calling it a “little bit dangerous for the body play with these very heavy conditions.” Their quarterfinal began after 10:30 p.m. on Tuesday. It was the last match of the day on a packed schedule at Court Philippe Chatrier, which included five contests instead of the usual four because one was postponed by rain a day earlier. And Nadal-Sinner also was delayed by No. 12 seed Diego Schwartzman’s five-hour, five-set victory over No. 3 Dominic Thiem. “I really don’t know why they put five matches on Chatrier today,” Nadal said. “That was a risk.” No. 2 Nadal hasn’t lost a set in the tournament will take a 9-1 head-to-head edge against Schwartzman into their meeting in Friday’s semifinals. “Two days to practice, to rest a little bit and to recover, and just try to be ready,” Nadal said. Schwartzman has this going for him: He won their most recent matchup, beating Nadal last month on clay at a tuneup in Rome. “I’m not sure if I’m going to have a lot of confidence,” Schwartzman said, “but, yeah, I know...that I can beat him. That’s important.” Nadal is trying to win a 13th French Open title and 20th Grand Slam trophy overall, which would equal Roger Federer’s mark for men. Among the many statistics that stand out about Nadal’s track record in Paris: He is 98-2 at the place, which includes 24-0 in semifinals and finals. For the 75th-ranked Sinner, this was his first Grand Slam quarterfinal. Consider this: Nadal turned pro in 2001, the year Sinner was born. Nadal made his French Open debut in 2005, turned 19 during the tournament, beat Federer in the semifinals and won the trophy. No one since then had made it to the men’s quarterfinals at Roland Garros during his first appearance until Sinner this year. And he showed some of the groundstroke power and good footwork that helped eliminated US Open runner-up Alexander Zverev and 11th-seeded David Goffin earlier in the tournament. “Sinner is a very, very young talent with a lot of power. Great shots. For two sets, [it was] tough,” Nadal said. “He was hitting every ball very hard. And for me, it was difficult. The ball... with this cold, the spin is not there. So for me, it was difficult to pull him out of position.” When the calendar still read “Tuesday,” Sinner nosed ahead, breaking for a 6-5 lead on Nadal’s wide forehand.

mirror_sports@yahoo.com.ph / Editor: Jun Lomibao | Thursday, October 8, 2020

RAFA MAKES SINNER YIELD AT DAWN

THE 12-time champion Rafael Nadal (left)withstands an early challenge from 19-year-old Jannik Sinner and pulls away a quarterfinal win that ends at nearly 1:30 a.m. on Wednesday on a windy night with the temperature in the low 50s. AP

That allowed Sinner to serve for the opening set; he had yet to face a single break point. That lead lasted all of eight minutes, because Nadal pushed right back, and broke right back, snapping off a pair of forehand winners to get to 6-all. Nadal leaped in the air to celebrate, the way he

frequently did when he was the teen without all the trophies. It didn’t take long for that set to be his via a tiebreaker. When Sinner’s forehand landed out, Nadal gritted his teeth and vigorously shook his left fist. That pattern materialized again in the second set: Sinner broke first, to lead 3-1, and Nadal answered immediately with a break of his own. And at crunch time in that set, it made sense that the far more experienced and far more accomplished Nadal would come through. With Sinner serving at 4-all, 40-15, Nadal reeled off four straight points—thanks in part to his

famous, corner-to-corner baseline defense—to break, then served out the set. “I had chances in the first set. I had chances in the second set. I didn’t use them,” Sinner said. “Obviously it’s tough against him. He’s not missing that much.” To compound matters for Sinner, Nadal broke again to begin the third. By then, while a half-dozen games were still to be played, the only remaining suspense involved which numbers, exactly, would be written on the scoreboard and on the courtside clock at the conclusion. AP

Match-fixing at French Open probed

AGAIN?

Novak Djokovic checks on a linesman after a ball spun off his racket in the fourth-round match of the French Open against Russia’s Karen Khachanov on Monday. Djokovic is coming off a disqualification at the US Open when he hit a linesman with the ball. AP

ARIS—The Paris prosecutor’s office has opened a police investigation into suspicions of match-fixing at the French Open. The office said the investigation is being conducted by a French police unit that specializes in betting fraud and match-fixing probes and which, among other investigations, has previously worked with Belgian authorities in investigating suspected fixed matches at the lower levels of professional tennis. But match-fixing probes targeting Grand Slam tennis are comparatively rare. The Paris prosecutor’s office said the investigation is centered on suspicions concerning one match at Roland Garros and also casting a broader look for any other evidence. It did not specify the match. German newspaper Die Welt and French sports daily L’Equipe said there were suspicious betting patterns in the first round of a women’s doubles match on September 30. Played on Court No. 10 at Roland Garros, it opposed Romanian players Andreea Mitu and Patricia Maria Tig

against Madison Brengle of the United States and Yana Sizikova of Russia. In the match, Sizikova is broken to love serving in game five of the second set, during which she double faults twice. According to Die Welt and L’Equipe’s reports, large sums were allegedly placed on the Romanians to win that fifth game across several operators in Paris and from different countries. Die Welt cited unnamed insiders claiming several hundred thousand euros were bet on the game, and that the fifth game in the second was a focus of the betting—without saying specifically how much of the total betting was on that game. The prosecutor’s office said probe was opened on October 1, the day after. The police are investigating possible charges of organized fraud and sporting corruption, it said. The French tennis federation, which runs the French Open, referred all questions to the Tennis Integrity Unit, which oversees corruption investigations in the sport. TIU spokesman Mark Harrison wrote in an e-mail to the AP: “In line with the TIU policy of operational confidentiality, we are not able to comment on this matter.” AP

IOC gets official look at simplified Tokyo Olympics

OKYO—The International Olympic Committee (IOC) and local organizers are trying to “simplify” the postponed Tokyo Olympics, promising to save money in what one study says is already the most expensive Summer Olympics on record. The executive board of the IOX is expected to review the proposed cuts on Wednesday. They include about 50 changes to fringe areas that leave the number of athletes—15,400 for the Olympics and Paralympics—and all sports events untouched for next year. Also largely untouched will be the opening and closing ceremonies, the heavily sponsored 121-day torch relay, and competition areas

that will be seen on television broadcasts. This means the so-called field of play, and areas immediately adjacent. Some of the proposed cuts listed in a detailed document from the organizers include: fewer decorative banners; a 10 percent to 15 percent reduction in “stakeholders” delegation sizes; five fewer international interpreters from a staff of 100; fewer shuttle buses; reduction in hospitality areas; suspension in production of mascot costumes; cancellation of official team welcome ceremonies. Big savings are not easy to find. Organizers and the IOC say they had already slashed several billion dollars in costs before the Olympics were postponed six months ago

because of the Covid-19 pandemic. This included moving events to existing venues rather than building new facilities. Most of the big-ticket spending had already taken place, such as the $1.43 billion national stadium, and the $520 million swimming venue. “We have many measures, and sometimes they look small. But when you take them all together it will represent a large result in terms of both simplification and hopefully...produce some significant savings,” Christophe Dubi, the IOC executive director for the Olympic Games, said late last month when the plans were presented in Tokyo. Dubi said a search for more cuts would continue.

Tokyo and the IOC have not offered an estimate of the savings, but estimates in Japan put them at 1 percent to 2 percent of official spending of $12.6 billion. However, a government audit last year said the real cost of the Olympics might be twice that much. All of the costs for putting on the Olympics come largely from public money with the exception of $5.6 billion from a privately financed local operating budget. About 60 percent of the income in this budget—$3.3 billion—comes from payments from 68 domestic sponsors. Organizing committee CEO Toshiro Muto acknowledged last month for the first time that some sponsors have backed out in the midst of a slumping economy, the pandemic, and uncertainty around the Olympics really happening. AP

Riyadh claims 2030 Asian Games would help transform Saudi society

IYADH launched the slogan and logo for its 2030 Asian Games bid and claimed the event would be a “driving force in the transformation of the city and Saudi society.” Saudi Arabia’s capital is battling Doha in Qatar for the right to stage the flagship Olympic Council of Asia (OCA) event in a decade’s time. The oil-rich Middle Eastern nations share a border and are currently locked in a diplomatic crisis, meaning this is a bidding race with plenty of added spice. Doha yesterday described their bid as a “national priority” and the Saudis used the exact same wording today. Both countries submitted their candidature files, with the OCA now confirming they will pick the winner at a General Assembly in Oman’s capital Muscat on December 16. The pair are bidding against a backdrop of international criticism over their human-rights records, with Amnesty International already calling on the OCA to ensure both candidates are assessed to identify potential risks. Riyadh opted for the slogan “Transforming the Future,” with its logo a map of the Kingdom with sports pictograms included inside. “The bid promises a new model for the Asian Games in a new era for the Kingdom— ultra-modern yet steeped in history, ambitious but realistic, visually stunning but environmentally-conscious,” a statement said following a video launch on YouTube.

“It would deliver a vibrant, world-class Games experience, whilst also being a driving force in the transformation of the city and Saudi society,” the statement added. Saudi Arabia has never hosted the Asian Games before but sport is a key part of the country’s vision of opening up to the world. A number of major sporting events have already been hosted there and it is likely the biggest prizes of the Olympics and Fifa World Cup are on the country’s radar. “Hosting the 2030 Asian Games would be an enormous honor and an opportunity to inspire a new generation of athletes throughout Asia, unifying the region in a celebration of sport,” said Prince Abdulaziz bin Turki Alfaisal Al-Saud, chairman of Riyadh 2030 and President of the Saudi Arabian Olympic Committee. World-class venues and transport have been pledged, as well as maximizing the use of existing venues. Saudi Arabian International Olympic Committee member Princess Reema Bandar Al-Saud backed the bid with the country’s treatment of women one of the main reasons for global condemnation. Women were finally given the right to drive in 2018 and the strict male guardianship system has been relaxed, but Amnesty International still describes “systematic discrimination” and Government critics remain in jail. Insidethegames

US star Shiffrin ponders skiing future

IENNA—A year that turned Mikaela Shiffrin’s world upside down has left the American standout wondering how much time she has left in ski racing, with the start of the new season fast approaching. The double Olympic and three-time overall World Cup champion hasn’t truly considered quitting the sport yet but is questioning how long all the traveling will still be worth it. Being home, close to family, has become even more important to the 25-year-old since the death of her father, Jeff Shiffrin, in early February. “I used to worry about winning ski races, and maybe I will again,” Shiffrin said Tuesday in a conference call. “But then my nana died [in October 2019], and I still worried about winning ski races. And then my dad died, and I just gave up ski racing altogether and thought I wouldn’t come back at all.” She has asked herself, “Is it worth it?” “The whole season is in Europe and we are away from home for around

six months during the season, and for another two months during the summer period. I am home not very often,” Shiffrin said. “I have so much passion and I want to do this, and here I am, and I’m doing it, but it also takes me away from the people that I love,” she said. “At some point that is going to be too much. My brother is back home, I am not going to see him for a pretty long time, but my mom is traveling with me. If she was not able to come, I would not be here, 100 percent.” Also, she started thinking about what her dad would have wanted her to do. “I don’t think my dad would want me to stop for him. But it is also hard to know that because he can’t be here to tell me. Those are the things that I struggle with: How long will it be worth the travel, being away from home, all of those things,” she said. “In a way it was a consideration, but I wasn’t thinking: OK, I am going to quit now.” When Shiffrin pushes out of the start gate for the World Cup season opener on October 17 in Soelden, Austria, it will have been nearly nine months since her last race—when she picked up her 66th career win at a super-G in Bulgaria. She was sitting out speed races in Sochi the following week at the time of her father’s accident at the family’s home in Colorado. She and her mother, Eileen, rushed back to the United States. Having lost her lead in the overall ranking to Federica Brignone and in the slalom standings to Petra Vlhova five weeks later, Shiffrin returned to Europe in mid-March for races in Sweden but was denied a chance to compete as the remainder of the season was canceled amid the Covid-19 outbreak, which prompted them to return to the United States. Forced to stay at home, the pandemic helped Shiffrin in trying to come to terms with the loss of her father. AP

DOUBLE Olympic and three-time overall World Cup champion Mikaela Shiffrin hasn’t truly considered quitting yet but is questioning how long all the traveling will still be worth it. AP

Parentlife BusinessMirror

Thursday, October 8, 2020

Editor: Gerard S. Ramos • www.businessmirror.com.ph

Your child’s vaccines: What you need to know about catching up during the Covid-19 pandemic

Clockwise: Prudence Foundation Executive Director Marc Fancy, TV host Tonipet Gaba, Multiple Intelligence International School founding director and author Dr. Mary Joy Abaquin, and Ateneo professor and author Dr. Queena Lee-Chua

By Irène Mathieu University of Virginia THIS spring, after stay-at-home orders were announced and schools shut down across the nation, many families stopped going to their pediatrician. As a result, kids have fallen behind on important childhood vaccinations. Vaccination rates declined starkly after midMarch, with up to 60 percent reductions in some areas of the country. Nationwide, vaccination rates dropped by 22 percent among Medicaid and Children’s Health Insurance Program recipients under 2. Now that kids are coming back to pediatricians like me, many parents have questions about catching up. Why is it a problem that my child is behind on vaccines? Vaccines protect your child from serious communicable diseases including brain infections, pneumonia, bloodstream infections and, in the case of the HPV and hepatitis B vaccines, even some types of cancer. The vaccine schedule we use was created to maximize your child’s protection throughout life. In addition to protecting your child, vaccines protect others by decreasing the circulation of dangerous germs in our communities—we call this “herd immunity.” Herd immunity is especially important to protect people who can’t get certain vaccines for medical reasons. When enough people are vaccinated, a disease can disappear altogether. With the Covid-19 pandemic continuing across the country, the last thing we need is an outbreak of another deadly disease. How do I figure out what my child needs to catch up? This depends on your child’s age and which vaccines they’ve already received. The best way to figure out what your child needs is to call your pediatrician’s office and ask. There is a clear “catch-up schedule” that we use to figure out which vaccines a child needs and when they can be given. Many parents worry that getting too many shots at once could be dangerous. However, the amount of material contained in each vaccine is very, very small compared with all the different germs and substances our kids breathe in, eat and drink every day, not to mention what they’re exposed to when they scrape a knee or elbow. There really is no such thing as too many shots at once under current guidelines, although some shots can’t be given together on the same day. What if my child is not feeling well when the pediatrician wants to give the vaccines? For most kids, it is perfectly safe to get vaccines when they have a mild illness—including a fever. Also, vaccines are no less effective if given when your child is sick. It’s understandable that getting a lot of shots at once when your child isn’t feeling well can be upsetting for the child. You can talk to your pediatrician about which shots are most critical and ask that your child get those first and the rest on another day. At the same time, we still want people to stay home as much as possible to keep people safe from Covid, so try to get all of your child’s care done in as few visits as possible. Does my child really need the flu shot? The effectiveness of the flu shot varies each year. It is not 100 percent effective, but we still recommend it because this vaccine lowers your child’s risk of dying of the flu if he or she were to get sick. Unfortunately, 188 children died of the flu last year in the US. Many of these children were perfectly healthy before they got sick. Most of those who died had not received the flu shot. Other parents worry that the flu shot itself will make their child sick. The injected influenza vaccine is made from dead flu virus, so it is not possible to get the flu from the vaccine. However, the shot may cause a low-grade fever, fatigue or muscle soreness and swelling where the shot was given. These are signs that the body’s immune system is responding to the vaccine, which is exactly what we want! It’s the body’s way of training itself to recognize the flu virus, so when children come into contact with the virus later, their bodies knows how to fight it. Should my child get the Covid-19 vaccine when one is available? It is too soon to make recommendations about who should get a Covid-19 vaccine. It is highly unlikely that a safe and effective vaccine against Covid-19 will be widely available before 2021. Because Covid is still circulating in our communities, it’s that much more important that we all work to ensure children are as protected as possible from other deadly diseases. THE CONVERSATION

Advancing financial literacy for Filipino families

ru Life UK recently hosted the latest PRUWise webinar, titled “Cha-Ching Kid$ at Home: Financial Literacy Basics for Filipino Families.” The expert-led and fun-filled webinar aimed to teach both parents and children the building blocks of a solid financial future. The webinar was hosted by children’s show TV personality Tonipet Gaba and Pru Life UK’s Mary Jane Pangan. It featured education and finance experts Dr. Queena Lee-Chua and Dr. Mary Joy Abaquin, who shared their insights on how parents can raise money-smart children at home. Almost 700 parents and children from around and beyond the Philippines joined the virtual event. “Pru Life UK’s advocacy of financial literacy applies to kids as much as it does to parents. We introduced the Cha-Ching Kid$ at Home webinar because we believe in starting the journey to financial wellness at a young age. It provided an avenue for parents to teach their kids essential life skills like money management in an engaging way,” says Pru Life UK Senior Vice President and Chief Customer Marketing Officer Allan Tumbaga.

Multi-awarded Ateneo professor and author Lee-Chua shared tips on how to introduce money concepts to kids. She advised parents to do frequent activities with their kids, including teaching them how much things are and where money comes from. She also encouraged parents to normalize lessons about monthly bills, exchange rates, or distinguishing between needs and wants when kids are older. According to her, “Parents and teachers are the best role models. If we don’t practice what we preach, that will be absorbed by our kids.” Complementing her talk was the discussion led by Abaquin, author and founding director of the Multiple Intelligence International School. She guided parents through the concepts of financial and fiscal responsibility, saving and investing, and responsible consumerism by making smart spending choices. “Financial freedom is a mental, emotional and educational process that all of us have to go through. As parents and teachers let us take an active part in giving our kids this lifelong gift,” she said. The Cha-Ching Kid$ at Home webinar also featured exciting games for kids aged seven to 12 years old about money management. The activities were designed to be an engaging way for children to value money and be careful with their allowance. “We are happy to supplement the Cha-Ching Kid$ at Home online resources, an initiative developed by Prudence Foundation—the community investment arm of Prudential in Asia and Africa—following its launch last June. The webinar, also done in partnership with Junior Achievement Philippines, reinforces our WeDo Education promise, where we aim to teach Filipinos to be money smart. Previously, we worked with schools and institutions to promote

financial literacy. Our new work from home setup has pushed us to pivot to digital and give parents an active role in their child’s education with simple yet quality resources,” shares Tumbaga. “Financial literacy may be an intimidating topic for both parents and children. This motivated us to develop easy resources for parents to teach and facilitate and, at the same time, make learning fun and enjoyable for kids. Our modules are free and available online for everyone to access,” said Prudence Foundation Executive Director Marc Fancy. Parents can view online or print out the Cha-Ching Kid$ at Home modules, including parent guides and daily challenges that teach their children the four basic money management concepts: Earn, Save, Spend and Donate. Modules come with hands-on activities and music video links. Access the modules at www. cha-ching.com. Cha-Ching is an initiative of Prudence Foundation, the community investment arm of Prudential plc in Asia and Africa. It is produced in cooperation with the Cartoon Network, the leading children’s channel in Asia Pacific, and with the backing of Dr. Alice Wilder, an expert in educational and child psychology. Cha-Ching is a series of three-minute animated music videos for children aged seven to 12. The videos are aired on Cartoon Network, reaching 34 million households a day in Asia. Cha-Ching is available in nine languages: English, Bahasa Indonesia, Bahasa Malaysia, Cantonese, Mandarin, Thai, Vietnamese, Khmer and Burmese. The Cha-Ching curriculum has been providing structured lesson plans for teachers since 2016. Over 10,000 teachers have been trained to deliver the curriculum across eight locations in Asia and Africa, reaching over 500,000 students to date. n

‘VIVA VOCE’ AT THE SUNSHINE PLACE ONLINE THE Sunshine Place never stops shining as it brings great music and great inspiration with Sunshine Classics, a series of online classical music concertos. Relax in your own home and enjoy timeless music anytime through the Sunshine Place: Senior Recreation Center’s YouTube Channel. Viva Voce is behind the series that is ongoing until October 15, with pianist, Mariel Ilusorio, soprano Anna Migallos and tenor Marvin Bautista in a delightful online concerto of Broadway, opera and Filipino songs. Soprano Anna Migallos was born in the US, educated in the Philippines and earned her Master of Performance in Vocal Performance from the Royal College of Music in London. She has performed in the UK, Asia and the Philippines. Tenor Marvin Bautista developed a huge passion for music at a young age as he hails from a family of musicians. He joined Tining, Ang Koro ng Letran Calamba, and later the Coro San Benildo, the resident chorale of De La Salle-College of Saint Benilde. Marvin has appeared in several productions together with the Viva Voice Lab, most recently “Lucia di Lammermoor” at the Cultural Center of the Philippines.

Pianist Mariel Ilusorio was a first prize winner of NAMCYA Piano Category A-II in 1985. Her musical studies include a pre-college diploma from the Juilliard School in New York and her Bachelor of Music Degree from the Oberlin Conservatory of Music in Ohio. After living in Germany, she moved to South Africa for nine years, continuing her career as a solo and chamber music performer. Now back in the Philippines, Mariel currently teaches privately as well as in St. Scholastica’s College, UST Conservatory of Music, and the Philippine High School for the Arts. Tickets are available until October 15 at 12 noon. Once registered, an e-mail will be sent to the registrant containing the program’s link. The link will be valid until October 15. With one click, registrants can access the concert video as many times as they want. More information is available from Mariel Ilusorio (0917-7092255, marielilusorio@hotmail.com). Senior rate at P250 and regular rate at P350. Music lovers may also want to check out 09175155656 for the Sunshine Place’s piano and voice classes online. The Sunshine Place, a senior recreation center

Soprano Anna Migallos

Tenor Marvin Baustista

Filipina pianist Mariel Ilusorio

under the Felicidad Tan Sy Foundation, is a venue for adults to live actively, through engaging in recreational classes and age-appropriate physical training programs. It is the venue to be entertained, to socialize and to reflect; a place of happiness and wellness for one’s mind, body and soul.

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15inQuarantine BusinessMirror

Thursday, October 8, 2020 D1

IN A ‘TRANSFIGURATION,’

FIRMS SAVE LIVES, JOBS A group of manufacturers led by a man who had initially seen a demand for face masks with Taal’s January 2020 eruption quickly repurpose their operations, retrofitting facilities and reaching out to stakeholders—in the process saving lives and jobs in the pandemic.

H A VENDOR displays locally made suits, priced at P500 each—touted as personal protective equipment (PPE)—alongside a variety of masks and face shields at a stall on Naga Road in Las Piñas City in file photo. At the start of the pandemic, as countries barred exports in an effort to keep scarce PPE supplies for their populations, Filipino manufacturers, including those who never made them before, rose to the challenge and ramped up production of medical-grade PPEs. NONIE REYES

By Elijah Felice Rosales

OW messianic can it get? Ferdinand A. Ferrer witnessed how ash spewed by Taal Volcano smothered the roofs and walls of EMS Group of Companies’ assembly plant in Laguna Technopark. The economic zone in Biñan, Laguna, is just a half-hour drive from Tagaytay City in Cavite, where the picturesque yet unpredictable volcano can suddenly disrupt not a few lives from far and wide. Continued on D2

D2 Thursday, October 8, 2020

15inQuarantine BusinessMirror

www.businessmirror.com.ph

IN A ‘TRANSFIGURATION,’

FIRMS SAVE LIVES, JOBS Continued from D1

(The recent eruption in January 2020 coated the Southern Tagalog region in monochrome, which drove workers, tourists and even locals to scamper for dear lives.) Ferrer also saw the way people surrendered their senses when thrown in a situation where they play tag with death. Just like in the Taal malady, they swamped pharmacies, bought face masks by the bulk, rushed to supermarkets and hoarded food for good measure. Understanding the need for protective gear, Ferrer considered repurposing a portion of EMS’s factory in Laguna for the production of face masks. After all, his workers need to don them to get to the work site, as it took weeks before the ashes were cleaned up. In March, Ferrer created and directed a task force to research the process for a 16-year-old electronics manufacturer to recalibrate its facilities and train its workers to produce face masks. But while EMS was studying its cards, the Philippines was to suffer yet another tragedy. In the days that followed, the entire island of Luzon was de-

clared under a lockdown by President Duterte to contain the transmission of a rampaging pandemic. It forced schools to cut short their academic year, business owners to padlock their stores, workers to lose their jobs, vacationists to cancel their summer plans, and people had no recourse but to stay indoors. The EMS task force pushed through with its assignment through the first days of the widespread quarantine until the Holy Week. On Easter Sunday, the team submitted to the board of trustees its report with a confirmation: The transition can be done. Yes—as an electronics manufacturer, we can weave face masks. It’s now up to the executives to decide…and take a leap of faith.

Safeguarding livelihood

LIKE it was decades ago, Ferrer narrated this tale in a September webinar hosted by the Board of Investments (BOI). EMS, where he serves as chairman and CEO, founded the Confederation of Philippine Manufacturers of PPE (CPMP), along with Medtecs International Corp. Ltd., Reliance Producers Cooperative, Luen Thai and Tacca Philippines

Inc. The group vows to supply the country with pandemic essentials; particularly, personal protective equipment (PPE). At the onset of the coronavi-

rus disease 2019 (Covid-19) contagion, BOI Managing Head Ceferino S. Rodolfo summoned industry leaders and reported to them that the government is struggling to import PPEs for health workers, as several countries have prohibited their exporters from shipping their products and redirect their output for domestic use. Among the five members of CPMP, only Medtecs manufactured medical-grade face masks prior to the health crisis; the rest work on either electronic parts or garments. CPMP Board Advisor Maritess Jocson-Agoncillo said exporters of clothing products were expecting sales to plummet by as much as 50 percent on canceled orders due to the pandemic. To survive, garment makers were left with two options: to fire workers, or to repurpose facilities. The first seemed the easy way out; the other, the proverbial “path less taken.” Agoncillo said CPMP members opted for the latter in order to safeguard the livelihood of their workers. As a collective, the CPMP invested a total of $35 million in additional capital for the procurement of new equipment, retrofitting of factories and training of workers. It resulted in the retention of jobs of at least 7,450 workers. Agoncillo shared the goal was to save jobs of as many workers as possible, and provide them with sources of livelihood at a time of an economic crisis.

Then, there were 22

BASED on BOI data, there are now 22 face mask manufacturers in the Philippines: from only two prior to the pandemic, nine produce medical-grade N88 and KN95.

Firms which fabricate face masks for medical use can now churn out 60.6 million pieces per month. Prior to the contagion, the country could prepare just 6 million pieces monthly, according to Ma. Corazon Halili-Dichosa, executive director at BOI’s Industry Development Services. Dichosa also told the BusinessMirror there are now 17 firms engaged in the production of PPE coveralls, isolation gowns and medical aprons. The Philippines had zero capacity to make such items pre-pandemic, but can now tailor 3.5 million pieces per 30-day cycle. She said the BOI is undertaking an ecosystem-development initiative wherein it is trying to complete the PPE supply chain by getting investors to erect dedicated factories for raw materials, such as the fabric for coveralls, and filters for face masks. “So far, we have one Australian company going into the production of melt-blown non-woven polypropylene, [which is] the middle filter for face masks,” Dichosa shared. “There is also one Filipino firm which will start to produce spunbond NW PP as inner and outer layers of the masks.” “As a further backward linkage, we are talking to local petrochemical companies to develop the appropriate PP resin grades for the production of melt blown and spunbond NW PPs,” the BOI executive added. Aside from PPEs, three local manufacturers are now producing ventilators. One is the Ayalaowned Integrated Microelectronics Inc., which is licensed to assemble the Ventura Flow Generator, a ventilator developed by the University College London and Mercedes AMG High Performance Powertrains.

What is govt’s share?

WHEN life gives lemons, make lemonade. When life sows a pandemic, make PPEs. As much as this venture presents opportunities, it poses risks as well. The government may be first to ask manufacturers to gamble on PPE making, but it was last to pay its share in the bet. In August, Ferrer said the Department of Health purchased face masks at a low of 30 million pieces to as many as 80 million pieces per month. However, he reported the agency procures just around 10 million pieces from domestic producers, or barely 17 percent of industry capacity of 60.6 million pieces monthly. As such, PPE makers are forced to peddle their products to private hospitals and department stores. CPMP’s Agoncillo said the group is working with the government in stockpiling PPEs for health workers, as coveralls should be

worn before the internal medicalgrade fabric starts to deteriorate after two years. Further, the CPMP is asking the government to develop an economic zone for PPE makers to integrate their operations, link supply chains and multiply production. At present, the group’s members are scattered all over Luzon: Medtecs is in Bataan, Luen Thai is in Pampanga, Reliance is in Cavite, EMS and Tacca are in Laguna. Should an economic zone be built for them, Ferrer pitched the area to house a testing laboratory to save PPE makers the extra cost of sending samples abroad to obtain product certification.

Beyond Covid-19

“WE believe that the business can be sustained even beyond the pandemic, as the new normal would likely make wearing PPEs a staple already,” BOI’s Dichosa stated. She explained the government understands the sacrifices PPE makers made in the pandemic. They did what others avoided to do: invest additional capital in an economy battered by recession. As an incentive, investors in PPE manufacturing may get four years of income-tax holiday and duty-free importation of capital equipment should they register with the BOI, which are provided to them under the Investments Priorities Plan. Likewise, the government may issue another joint memorandum circular (JMC) exempting from import duties, taxes and fees the importation of raw materials and equipment for production of Covid-19 critical goods. Dichosa said the JMC may be released once the President approves the guidelines to enforce the second Bayanihan to Recover As One Act. “Local demand of a population as big as ours, plus the demand in the export market, would make for a viable proposition for companies to continue this business,” Dichosa argued. After EMS leaders approved the move to repurpose their facilities, import prices for raw materials of face masks ballooned threeto four-fold. At that time, EMS plans to buy 20 million tons of the filters used to weave medical-grade face masks. Meanwhile, Ferrer said his firm stood by its decision: EMS retrofitted its factory in five weeks’ time, secured a license to operate in May and produced its first 1 million face masks before June. Most important, it preserved the jobs of around 250 personnel who were on the brink of joining the unemployed. In terms of keeping body and soul together, at least for those workers, indeed—it is quite messianic.

SOME MANUFACTURING COMPANIES BASED IN THE PHILIPPINES WHO HAVE BEEN INVOLVED IN PPE REPURPOSING EFFORTS Name of Company

Nationality

Activity

Repurposed Activity

Medtecs Corporation

Taiwanese

Manufacturer of PPEs

Production of N88 face masks

Yokoisaida Corporation

Japanese

Manufacturer of medical supplies

Production of surgical masks (expansion)

New Kinpo Group

Taiwanese

Electronic manufacturing Services (EMS) and Original Design Manufacturing (ODM),

Production of masks and ventilators

EWIC (Everwin) Philippines

American

Electronics manufacturer

Production of masks and IR thermometer

EMS Group of Companies

Filipino

Electronics and semiconductor toll manufacturer

Production of face masks

Distinctive Blinds and Office Supply

American

Office furniture and supplies

Production of face masks

IMI

Filipino

Electronics manufacturer

Planned production of masks, CPAP and ventilators

Bioteq

Taiwanese

Medical device manufacturer

planned production of masks

TACCA Group

Australian

Packaging products manufacturer

planned production of masks

Hyundai

Korean

Auto manufacturer

planned production of masks

Destileria Limtuaco

Filipino

Alcohol and spirits manufacturer

Production of ethyl alcohol Source: Philippine Board of Investments

D4 Thursday, October 8, 2020

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Insurers bank on digitalization, regulator support for recovery With businesses freezing expansion plans in the pandemic, new insurance premiums and coverage have stalled. The crisis, however, fast-tracked a resort to online sales, and the sector is now banking on this, as well as help from regulators, to bounce back.

By Bernadette D. Nicolas

NSURERS are banking on digitalization and regulatory support to help them battle losses as government measures against the Covid-19 pandemic compelled consumers to cut down spending on nonessentials.

Philippine Life Insurance Association (PLIA) President Benedict C. Sison told the BusinessMirror that sales were adversely affected by restrictions on mobility and strict implementation of social distancing. While the pandemic resulted in higher public awareness on the value of having health and/or life insurance, many remained wary about parting with their cash given the uncertainties, according to Sison. “This wait-and-see stance has resulted in lower sale closures and consequent decline in new business inflow,” he said. “Trading and commerce slowed down, especially during the stricter levels of the quarantine. “The inflow of investible funds to insurance companies has also gone down on account of reduced premium collections,” Sison added. In the view of Insurance Commission (IC) Deputy Commissioner George S. Ongkeko Jr., “The Covid-19 pandemic resulted in restricted business operations and adverse effects on the financial performance of the insurance industry.” Replying to the BusinessMirror via electronic mail, Ongkeko said the life insurance sector’s net income for the first quarter this year was down by 24.89 percent year-onyear. The nonlife insurance sector also suffered a decline of 84.25 percent compared to the same period in 2019. These figures are based on the unaudited quarterly reports on selected financial statistics submitted to the Insurance Commission.

Benefits of digitalization

THESE figures reflect an industry grappling with the impact on the economy of government actions addressing a public health crisis. Philippine Insurers and Reinsurers Association (PIRA) Executive Director Michael F. Rellosa told the BusinessMirror the lockdown measures hastened the industry’s digital transformation, which helped improve insurance sales. However, Rellosa admits they have yet to see through the whole cycle for the nonlife insurance sector to really feel the full benefits of digitalization.

He noted that before the pandemic, it was very rare for nonlife insurance companies to sell products online. Rellosa explained why: a lot of these products are “bespoke or created depending on the risk that a particular client faces.” So, “you cannot have one product for the whole country [that is] uniform,” he said. “Now, [except for the] way of selling or channel of distribution through digitalization, even our processes, like underwriting, are being transformed.” Rellosa said while nonlife insurance companies were able to catch up on their sales, they still failed to hit their targets for new business premiums since businesses have put expansion plans on hold. “’Yung mga renewals lang ang medyo nakuha; ’yung mga new business, it’s not budgeted [They only secured the renewals as there were no budgets for new businesses],” he said. Rellosa explained that because companies held off on expansion, there were no new businesses “and new premiums or new coverage are results of new businesses.”

PHILIPPINE Life Insurance Association President Benedict C. Sison

PHOTO COURTESY OF SUNLIFE

Adjusting to demands

BUT both PLIA and PIRA officials agreed that the steps that have been taken by the IC have helped the industry cope with the impact of the pandemic. “The industry is certainly improving, thanks to the responsiveness of the [IC] in providing regulatory relief/concessions and ably adjusting to the demands for ‘new normal’ processes that are digitalbased,” Sison said. Aside from allowing the industry to sell via a remote, information and communications technology-, or ICT-, assisted process, Sison said the IC has also temporarily relaxed the agent licensing requirements while licensing exams are suspended. He explained that the recruitment of new insurance agents stopped for a while after the IC discontinued the conduct of insurance agents’ qualifying examinations after several key urban centers were placed on lockdown. The easing of requirements saw the inflow of new agents, who have been allowed to sell while awaiting the resumption of validating examinations, according to Sison. Further, he said the IC has introduced an online portal for the submission and approval of new products. “These initiatives will help boost the industry’s capacity to provide seamless service to the insuring public at a time they need it most; and when the productivity of existing insurance agents has been severely curtailed by the pandemic,” Sison said. “Moreover, the new investment vehicles from the government and the banks will provide Filipinos with alternative options for portfolio reallocations

INSURANCE Commissioner Dennis B. Funa and Philippine Insurers and Reinsurers Association Executive Director Michael F. Rellosa ALYSA SALEN

and help revive the economy.”

Deferring requirement

ASKED what more the IC can do to help the life insurance sector, Sison said “the industry looks forward to ‘future-readiness’ that will not only ease the impact of the present pandemic, but also better prepare us for similar occurrences and enable us to adopt solutions that work to modernize the industry as well.” He added that the IC can also convert the remote, ICT-assisted selling process into a permanent facility and introduce a remote, ICT-assisted conduct of insurance agents’ qualifying exams for licensing agents. Also, Sison urged the IC to enhance the e-commerce guidelines to expand the allowable conditions for selling Variable Unit-Linked (VUL) products. VULs make up over 70 percent of the industry’s total premiums. He also pushed for the deferment of the mandatory net-worth buildup as “companies need more time to rebuild their net worth, considering its dependency on improvements in the investment landscape.” Under Republic Act (RA)

INSURANCE Commission Deputy Commissioner George S. Ongkeko Jr. SSS.GOV.PH

10607 or the Insurance Code, insurance companies must have a minimum net worth of P900 million by end-2019 and P1.3 billion by end-2022. “The current minimum of P900 million would help insurance companies work toward business recovery,” Sison said. PIRA, Rellosa said, maintains its “stand that we are already the highest in the region and it’s already big as it is.” Still, PIRA is “grateful for what has been done” by the regulator. Rellosa said PIRA also understands where the IC “is coming from.” He added the PIRA would soon propose amendments to RA 10607.

Expected compliance

RELLOSA said the industry also wants the Commission to clarify which of the requirements shall be used as the primary basis to determine the financial health of an insurance company. “We have to be compliant with all—RBC [risk-based capital], margin of solvency, minimum capitalization [requirements], please tell us because nahihirapan kami,” he said. Rellosa said insurers are having a difficult time as they “have to prepare so many reports.” He add-

ed that while these requirements are being met, they still have to get ready for the implementation of International Financial Reporting Standards (IFRS) 17. The IC in May further deferred the implementation of IFRS 17, two years after its effective date as decided by the International Accounting Standards Board (IASB). The IC has said that it “recognizes that the insurance industry will realign its priority programs and focus on modifying its business operations under a ‘new normal.’” The IFRS is a set of accounting standards recognized by at least 166 countries, the Philippines included. It provides a guide on how particular types of transactions and other events should be reported in the financial statements. The IFRS 17 implementation is expected to help the insurance industry comply with global standards, albeit compliance would require substantial investments in accounting systems, among others. Ongkeko vowed that the “IC will continue to monitor the situation and implement policies that will effectively address the concerns of the insuring public and the insurance industry during these challenging times.”

Tracking growth

STILL, Rellosa expressed optimism that the nonlife insurance industry will be able to recover in two years’ time. But the “economy would have to grow first before [us]. We are always the tail-end,” he said. Sison is more positive, saying the life insurance industry will recover next year as its overall performance tracks the country’s economic growth. “The industry has no specific growth targets. However, since VUL products significantly drive the industry’s premium growth, our overall performance follows the direction of the economy,” Sison explained. “While we anticipate a moderate contraction in total premiums this year, the ADB [Asian Development Bank] forecast of a 6.5-percent GDP [gross domestic product] bounce-back growth for 2021 paints an equally positive outlook for the industry.” Economic managers forecast the Philippine economy would contract this year by 5.5 percent; potentially the sharpest in 35 years. They expect the country’s GDP to rebound by 6.5 percent to 7.5 percent due to the base effect.

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Thursday, October 8, 2020 E1

A LONG ROAD BACK, BUT TOURISM WILL GET THERE

Slowly but surely, famous PHL destinations are opening up to tourists, taking each day, each problem, each unforeseen complication as it comes.

By Ma. Stella F. Arnaldo Special to the BusinessMirror

FTER tallying 8.26 million foreign visitor arrivals and P482.15 billion in inbound receipts last year, 2020 was shaping up to be another banner year for tourism in the Philippines. Then Covid-19 happened. For Iloilo tour guide Araceli Naces, it took about four months for reality to sink in that the virus was likely going to wipe out her livelihood. The local government implemented an enhanced community quarantine (ECQ) on March 20, but “the first and second month was like a vacation break, and I thought [Covid-19] would be over soon.” Since becoming a tour guide for the entire Western Visayas region, she was

looking forward to another hectic summer schedule as before. “Then four months passed, I realized the situation was getting worse. The pandemic was already affecting not only our country but worldwide. I was feeling the pressure and then suddenly my savings were gone! The vacation that I was enjoying became a nightmare,” she added. Continued on E2

THE infinity pool of Amorita Resort on Panglao Island, Bohol. The island may soon open to domestic tourists and MICE events. CONTRIBUTED PHOTO

Thursday, October 8, 2020

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A LONG ROAD BACK, BUT TOURISM WILL GET THERE Continued from E1

During the peak summer season, Naces typically earns more than P30,000 a month “excluding tips,” handling daily tours every week. But when Iloilo went on ECQ, “all tours were stopped.” In addition, she said, she also lost her job as a special education teacher. “Luckily, I have my family to rely on, so they helped me overcome the situation,” she narrated. “I started to stretch our budget; some of the stuff we used to buy and enjoy were given

up. And yes, I also tried selling homemade skinless longganisa and lumpiang shanghai, face masks and face shields, calamansi and shrimps to sustain our needs. Some of my fellow guides are doing the same, selling items in order to generate income. So, kanya-kanyang diskarte na lang [Each to his own playbook for survival]!”

An icon falls

IN Bohol veteran hotelier Leeds Trompeta had assumed his new post as general manager of the posh Amorita Resort before the end of 2019 and was looking for-

ward to the new year. “We maintained our average year occupancy from 2018 to 2019 but we were able to increase revenues by 15 percent, [so] we were definitely entering 2020 on a high note, forecasting at least 10-percent increase in both occupancy and revenue.” When the community quarantines were imposed by the national and local governments to help contain the spread of the virus, Amorita had to cease operations. “We reduced our manning capacity by more than 70 percent, yet we retained enough associates to maintain our five-hectare

property and pursue long-overdue improvements to our facilities,” said Trompeta. The resort also had to refund at least P10 million worth of bookings, “mostly for the summer, but cancellations have already reached the Christmas holiday bookings as well,” as worldwide uncertainty over travel continues. Then Amorita shifted its focus “on our displaced associates and initiated our malasakit program, where we provided basic necessities to augment their daily needs as well assist them to

LEEDS TROMPETA, general manager of Amorita Resort on Panglao Island, Bohol CONTRIBUTED PHOTO

“They [foreign tourism buyers] are looking forward to sending clients here. They are really just waiting for international travel restrictions to ease up. They want to know more about destinations that are off the beaten track, where there is no mass tourism.” —RAJAH TOURS PHILIPPINES PRESIDENT JOSE C. CLEMENTE III

pivot to other forms of livelihood. Our associates remain to be our best assets and that’s the bottom line,” Trompeta averred. But even the iconic Marco Polo Davao could not hold on. It closed its doors in June, unable to bounce back from the sudden drop in occupancy which began last December due to the earthquake that struck the province, then in January, in the aftermath of the Taal Volcano eruption, followed by Covid-19. Its closure shook the hospitality industry. (See, “Marco Polo Davao closure spooks tourism industry,” in the BusinessMirror, May 11, 2020.)

Lifeline needed

TOURISM Secretary Bernadette Romulo-Puyat has said, of the 5.7 million workers in the tourism sector, some 4.8 million have already been displaced, “either they’ve lost their jobs, or they are working less.” While the Duterte administration extended some form of financial assistance to the jobless under the first Bayanihan Act, just 10 percent of tourism stakeholders actually benefited from it. (See, “Over 500,000 tourism workers get P4.4 billion in wage subsidies,” in the BusinessMirror, May 13, 2020.)

It was immensely clear for Romulo-Puyat that more had to be done ASAP, to keep tourism stakeholders from falling further into a ditch of despair, with their income severely depressed.

TOUR guide Araceli Naces at Isla Gigantes, a new desitination being promoted by Iloilo and the Tourism Promotions Board. CONTRIBUTED PHOTO

d Down But Looking Up

sMirror

When lawmakers started discussing the Bayanihan 2 law, she made sure the tourism sector would get a large portion of the funds that would be made available and direct these to working capital loans the stakeholders urgently needed to keep their businesses afloat. “Every day, people text me, Viber me…they are stakeholders who have lost their jobs. They sell sundry items just to keep their families afloat. It was important for us, at the DOT [Department of Tourism], to raise those concerns

directly to lawmakers so they could be helped. And thankfully, the Bicam, or the Bicameral Conference Committee of both Houses of Congress, listened to us,” she said, partly in Filipino. The Bayanihan 2 law, signed by President Duterte on September 11, allocated P6 billion in working capital loans for DOT-accredited tourism stakeholders through government financial institutions, P3 billion for job-loss claims for tourism workers, and P1 billion in infrastructure funds to the

Department of Public Works and Highways to build tourism roads. Also, P100 million was allocated to train tour guides, the industry’s important frontliners. Tourism stakeholders’ groups and government officials are currently ironing out the details on the availment of soft loans through the SB Guarantee Corp. and jobless claims with the Department of Labor and Employment.

Backbone of the tourism industry

RELIEF measures aside, govern-

ment economic managers have moved to reopen the economy amid the pandemic and help get the public back to working again amid the virus. Under its Tourism Response and Recovery Plan, the DOT is now trying to jump-start domestic tourism via travel corridors and slowly opening up island destinations to local travelers. “We’re not saying we should not focus anymore on international tourism. But the current situation demands that we go back to the basics; we go back

to the backbone of the tourism industry, which is domestic tourism,” said Romulo-Puyat. Proof? In 2019 Filipinos took 110 million domestic trips, generating P3.1 trillion in receipts for the economy, according to data from the Philippine Statistics Authority. Also, domestic tourism accounted for 85 percent of total tourism revenues in 2019 and contributed 10.8 percent of the industry’s 12.7-percent contribution to the gross domestic product. A few provinces and regions

Thursday, October 8, 2020

have heeded the DOT’s call. As of October 1, Baguio City and the Ilocos region have allowed tourism between their residents in what’s been dubbed as the Ridge and Reef Travel Corridor. Boracay Island has also opened to more tourists outside of Western Visayas, including from general community quarantine areas like Metro Manila. “But we’re doing this under very strict health and safety conditions,” the DOT chief underscored. (See, “Sagada, other North Luzon destinations eye reopening to tourists,” in the Continued on E4

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A LONG ROAD BACK, BUT TOURISM WILL GET THERE

TOUR guide Araceli Naces on an island-hopping tour in Guimaras with a balikbayan couple. CONTRIBUTED PHOTO Continued from E3

BusinessMirror, September 23, 2020.)

For one, negative RT-PCR (real-time polymerase chain reaction) test results are essential for tourists to be able to travel within the northern corridor, as well as those wanting to frolic in the azure waters and fine white sands of Boracay. As all these regions and provinces are modified GCQ areas, as such, there are no age restrictions for visitors, explained Romulo-Puyat. The DOT has also allowed pointto-point travel between Manila and El Nido/Miniloc, Amanpulo and

Balesin. Health checks, Covid-19 testing, and relentless attention to health and sanitation are also being strictly enforced by resorts on these posh island-resorts. Staycations are now allowed in GCQ areas, as long as the hotels that will offer these bookings have not been used as quarantine facilities for overseas Filipino workers, overseas Filipinos and frontliners. (See, “’Staycations’ now allowed under GCQ, but rapid testing required,” in the BusinessMirror, September 28, 2020.)

Still, challenges remain for the agency. “The most difficult part is trying to persuade tourism destinations to reopen,” said Romulo-

RAJAH Tours Philippines President Jose C. Clemente III on an inspection tour of El Nido, Palawan, for his foreign clients. CONTRIBUTED PHOTO

Puyat “We’ve been going around, talking to stakeholders and the LGUs [local government units] down to the barangay level, to see what their concerns are if they reopen. Most of them want a hospital, or a Covid testing lab.... We all send their requests to the Department of Health,” she added.

Foreign markets still ‘top of mind’

DESPITE the focus on domestic travel, Romulo-Puyat said they are not forgetting foreign tourists. In fact, a series of TV ads has been playing abroad encouraging foreigners to dream and “wake up” in

the Philippines. The DOT’s marketing arm, the Tourism Promotions Board (TPB), even pushed through with its annual Philippine Travel Exchange (Phitex), this time on Panglao Island, Bohol, and under a hybrid structure. The event attracted 122 foreign buyers from 34 countries, and 345 seller delegates from 161 companies in various subsections of the tourism industry. (See, “Arrivals down 76%, but travel fair nets buyers,” in the BusinessMirror, September 17, 2020.)

As of October 2, based on reports from 33 percent of the sellers, there were 55 actual bookings made with total projected revenue

of some P21.63 million. It’s clear that interest in the Philippines remains high, according to Jose C. Clemente III, president of the Rajah Tours Corp., who had B2B (business to business) meetings with foreign buyers during the last Philippine Travel Exchange event. “They are looking forward to sending clients here. They are really just waiting for international travel restrictions to ease up,” he said. Many of the buyers he spoke with were from Malaysia, the United States, Australia and Singapore. “They want to know more about destinations that are off the beaten track, where there is no mass tourism,” said Clemente. He cited Siquijor, Dumaguete, provinces in the north, Iloilo and Bacolod, as possible places for his buyers’ clients to explore.

Digital is the way to go

PHITEX also crystallized the possibility that MICE (meetings, incentives, conferences and exhibitions) events could be held, under a hybrid fashion, said Romulo-Puyat, such that some delegates can be in a local venue, but the rest are hooked up online, participating virtually. The DOT has underscored the importance of digitization as a way to reduce physical contact between tourism enterprises and frontliners, with their guests. For one, it has

mandated the use of contact-less payment systems in establishments. The TPB will be launching the Visitor Information and Travel Assistance (Visita) app this month, first pioneered by Baguio and the Ilocos region, a digital platform that can help monitor tourists and allow them to accomplish forms digitally. With all these, there may be reason to be optimistic that the tourism industry will soon turn a corner. “I’m looking forward [to] the opening of our tourist spots for domestic tourists under the new normal. Boracay is opening its doors already and if I’m not wrong Bohol may follow soon. Hopefully Iloilo will be next because Panay Island landed the 25th spot for Best Destination in Asia in 2020 of TripAdvisor’s Travelers Choice Awards, and Iloilo was named Asean Clean Tourist City awardee for 20202022,” enthused tour guide Naces. She remains hopeful “the tourism industry will bounce back again. I just want to make our city an example. Even though we have the pandemic, the beautification projects, the cleaning of the city has been maintained, and more murals are being added. I can’t wait to show it to our tourists once we are open again. Iloilo may not be as active as before, but given six to 12 months, it’ll be back in a different and more positive way under the new normal.”

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LIFE GOES ON(LINE) FOR FILIPINOS, AS…

PANDEMIC PUSHES PHL TO FAST-TRACK INTERNET CONNECTIVITY

By Lorenz S. Marasigan

NTERNET connectivity has become extremely crucial during the pandemic, it is now touted as a “lifeline”—not just a fundamental right or a privilege—as businesses and individuals turn to digital technologies and services to keep themselves virtually “afloat.” Today, seven months since the start of various stages of community lockdowns, Filipinos are adapting into the new normal, where almost everything is done digital.

Powered by the Internet, many Filipinos are working and studying from home. Many are also using their mobile phones to tick off boxes from their daily tasks, such as

As Internet connectivity becomes a ‘basic right’ like oxygen during the pandemic—driving businesses, professions, learning, and virtually all transactions—people learn to survive, despite the huge divide, and hope for better days. grocery shopping, buying dinner, or even settling bills and government dues. Experts, government officials and telecommunications providers all agree that Internet connectivity in the time of the coronavirus disease 2019 (Covid-19) has become paramount that further development in the sector is needed—and it is needed fast.

‘New oxygen’

THE health crisis has become a wake-up call of sorts for everyone

that Internet connectivity is not merely just a luxury, but a basic right, according to the United Nations. It has become an integral part of today’s new normal, which is expected to persist not only in the interim, but for the long haul. Former Department of Information and Communications Technology (DICT) Acting Secretary Eliseo M. Rio Jr. said Internet connectivity will become a driving factor for the economy: “The pandemic has shown to all of us the importance of telecommuni-

cations in all our activities—from ordering food to studying at home and working from home,” he said. “Internet connectivity is a basic human right as important as food, shelter and clothing.” For Better Broadband Alliance Convenor Grace MirandillaSantos, liberalized access to the Internet during the pandemic allows people to “carry on with their daily activities.” “The Internet is our link to some semblance of normalcy, since Continued on F2

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Continued from F1

it allows us to communicate and connect with people and institutions,” she said. Since March, the government has been mandating several restrictions to work, learning and mobility. Schools have adopted blended learning types, while employers are now implementing work-fromhome setups to safeguard their employees. Transportation has also been limited and heavily regulated to prevent crowding and the potential spread of the virus. Alfredo S. Panlilio, chief revenue officer of PLDT Inc. and president of Smart Communications Inc., agreed, saying that the national health situation has proven that time and again Internet connectivity is key to keeping the economy going. “Connectivity has always been an important building block in today’s world—more so under the new normal. They say that connectivity is the new oxygen and data is oil,” he said. “Most of our transactions, if not all, have shifted online.” Globe Telecom Inc.’s Head of Corporate Communications Yolanda C. Crisanto noted that the Internet has become imperative during these times that it may as well be considered a “lifeline.” “The Internet is now our lifeline to health, finance, delivery of goods—including food and groceries, education, businesses, aside from the usual social connections and entertainment,” she said.

Are we ready?

DIGITAL solutions are now part and parcel of everyday lives of Filipinos. From being used as a matter of convenience, digital technologies are now necessary to literally keep people alive. This has caused the demand for Internet access to shoot up drastically. Due to remote work and distance-learning setups, traffic for both telcos has risen by as much as 30 percent in recent months. Which begs the question: Is the Philippine telco infrastructure ready to handle this amount of load? “Nobody was really prepared

for this pandemic—not even telcos or Internet service providers,” Santos said. “It would not be wise to assess the state of Internet connectivity without looking at the context.” She explained that in Metro Manila and other city centers, Internet connection was able to accommodate the traffic, only because consumers were able to shift from one provider or connection to another. “It’s an entirely different story in cities outside the National Capital Region, municipalities and barangays in the countryside,” the convenor shared. “Infrastructure is a huge problem, and people don’t really have much choice,” Rio, who previously instituted several infrastructure-development initiatives of the ICT department that are now in place today, seconded Santos: “We really lack infrastructure, and that’s why our telcos are now fast-tracking it.” According to Panlilio, his group had to hasten the development of several infrastructure and implement several technical works to keep up with the demand. “To be able to serve our customers better, we [have] expanded our international capacity quickly,” the telco executive confirmed. “We also re-farmed our frequencies in a timely manner in order to serve the demands of our customers who are working or studying from home.” Now, Panlilio said Smart has migrated roughly 3,785 base stations previously used for 2G to 4G. Crisanto, for Globe’s part, said the Ayala-led telco has managed to keep its networks resilient. “The country is doing much better now compared to where we were three years ago. But gaps remain in terms of consistency in Internet availability and performance,” she averred. “To fill this, we need to accelerate the infrastructure builds—especially cell sites and fiber-to-homes.”

Inequalities are magnified by the fact that the need for Internet access, deemed a basic human right, is currently more pronounced than ever. This need becomes starker because much work is now done online, and human interaction has become more digital than ever.

The digital divide

CRITICAL as it is, Internet connectivity—seen as the great equalizer—is, however, not available for everyone. The United Nations ConferFORMER Department of Information and Communications Technology Acting Secretary Eliseo M. Rio Jr.: “The government should realize that telecommunications should be part of the Build, Build, Build Program. We put billions of pesos for road development, and if we allocated just a tenth of that, we surely can improve our telco services.” NONOY LACZA

ence on Trade and Development (Unctad) explained in a report that the pandemic is “exposing the digital gap between countries and societies,” especially between and within least developed countries. Inequalities, the report said, are magnified by the fact that the need for Internet access, deemed a basic human right, is currently more pronounced than ever. This need becomes starker because much work is now done online, and human interaction has become more digital than ever. In the Philippines, 17.7 percent of all households have Internet connection, according to the National ICT Household Survey conducted by the Philippine Statistical Research and Training Institute and the Philippine Statistics Authority. Moreover, seven out of 10 barangays do not have access to fiberoptic cables, while 64 percent lack access to a cellular tower. It is much worse in the Bangsamoro Autonomous Region in Muslim Mindanao, and in the regions of Bicol, Eastern Visayas, Cagayan Valley, Mimaropa, Northern and Central Luzon, Palawan and Central Visayas, which are all either unserved or underserved, according to the National Telecommunications Commission. “Just imagine the state of Internet connectivity in these regions,” Santos said. This sorry situation of digital interconnectivity has had a huge impact on the blended learning modalities that the Department of Education is now implementing. Take a public high school in Montalban, Rizal, for instance. At Kasiglahan National High School,

only 1,300 students, or roughly 19 percent of the 6,700 learners, have opted for online classes due to limitations on Internet connectivity and device availability. The digital divide is so apparent that based on data collected by We Are Social Inc., Internet access in the Philippines is only limited to “one-third of the population.” These leaves the rest of the country bereft of the benefits of the Internet, especially in three key areas: education, information and communications, and finance.

Bridging the digital divide

TO bridge this divide, the government, according to ICT Deputy Spokesman Adrian G. Echaus, is implementing several measures that will hasten the development of infrastructure in the country. “To address connectivity issues, we have connectivity-related programs that focus on ICT infrastructure development,” he shared. Echaus listed the National Broadband Program, the Common Tower Initiative, and the Free Wi-Fi for All Project as the government’s response to the issues hounding Internet connectivity. The National Broadband Program is an initiative, the goal of which is to build and enhance existing broadband infrastructure to make Internet connectivity more pervasive, accessible and affordable. It has six components: National Fiber Optic Cable Backbone, Cable Landing Stations, Accelerated Tower Build, Accelerated Fiber Build, Satellite Overlay, and Broadband Delivery Management Service. The Common Tower Initiative, on the other hand, involves the de-

velopment of new telco towers that will be shared by different providers to hasten the improvement of telco services. Currently, there are 23 tower companies that the ICT department has existing memoranda of understanding and/or agreement with. Meanwhile, the Free Wi-Fi for All Project involves the deployment of free Internet access to public places such as schools, hospitals and government offices. The ICT department aims to deploy at least 10,069 open Wi-Fi spots within the year. Telcos are also spending roughly P270 billion this year to develop their own networks. PLDT has set a P70-billion capital expenditures program for 2020, while Globe is spending P50.3 billion in capital outlays. Dito Telecommunity Corp., the third telco, is setting up its network for P150 billion this year. Panlilio said the amount will be used to develop both fixed line and wireless networks of PLDT and Smart. This also includes the migration of its existing copper-based wired customers to fiber, as well as the development of 5G connectivity in key areas. For Globe, Crisanto conveyed its three-pronged strategy to improve data and voice experience in its network, wherein the company will replace copper wires with fiber, upgrade its sites to 4G, and roll out 5G services. Dito, on the other hand, will start providing commercial services in March 2021, while it is currently developing over 1,300 towers across the country. But these are not enough, according to Rio. “Right now, our connectivity is still poor in terms of access and speed, compared to other countries. What we need is for government to actually invest in telecommunications infrastructure to really provide better services to Filipinos,” he said. Rio added that telecommunications should be given as much importance—in terms of budget— as power supply, ports and roads. “The government should realize that telecommunications should be part of the Build, Build, Build Program. We put billions of pesos for road development, and if we allocated just a tenth of that, we surely can improve our telco services,” he said. But the emphasis, Rio explained, should be for areas that are currently not connected to the Internet.

“The government must invest in telecommunications infrastructure in areas that are unserved and underserved because they are not economically viable for commercial telcos,” he opined. Echaus agreed, saying that the government must also develop digital highways to connect more Filipinos to the Internet. “We have to think of it as a road. If there are roads, there are also ‘digital highways.’ So, if there are better-paved roads, then you can get to your destination,” Echaus explained. “The government must also put up [its] own ICT infrastructure. We should not leave it in the hands of the private sector.” The Philippines has yet to spend on actual physical infrastructure to provide telecommunication services to its citizens. This is in contrast to its neighbors, such as Malaysia, which is spending $233.5 million to boost broadband speed and coverage; Taiwan, which has allocated $2.4 billion to upgrade its digital infrastructure; or Vietnam, which has invested $820 million for 23,000 kilometers of submarine cable system.

Changing lifestyles, policies, traditions

RIO said that, as Internet access becomes more liberalized and improved through a mix of investments, sound policies and regulation, economies like the Philippines may very well adapt to the so-called new norm. “Digital solutions that were developed and highlighted during the pandemic could lead to a change in lifestyle, traditions and policies,” he said. Soon, if Internet connectivity improves further, Rio sees Filipinos transacting with one another through digital means even beyond the Covid-19 crisis. Government operations and transactions could also be done off-site. Remote work could also become the norm. “If you are able to work from home, why would you sacrifice three hours of your day in travel?” he asked rhetorically. “The effect of this new normal is fewer people traveling, which means that delivery of goods and services can also become faster. We have also been seeing the emergence of new businesses that are tailor-fit for the new normal.” The former DICT acting secretary concluded: “Soon, everyone will have a deeper appreciation of the importance of telecommunications.”

JOB RUZGAL

Pandemic pushes PHL to fast-track Internet connectivity

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Thursday, October 8, 2020

‘SOLID PLAN KEY TO EASING WORKERS’ PANDEMIC PAIN’ Workers, labor groups look to DOLE, lawmakers to fill the gaps in the government response to their sector’s pains during the pandemic—hopeful that moving forward, the pain will be better shared among all stakeholders.

By Samuel P. Medenilla

DNEE MARIE ALBURO had been anxiously awaiting word on whether she will keep or lose her job at a factory in Cebu.

IN this May 20, 2020 file photo, garment workers in Taytay, Rizal, whose livelihood was temporarily disrupted by the coronavirus pandemic, find themselves having to contend with the new norms of wearing face masks and physical distancing as they go back to work, along with the constant fear of contracting the virus as they travel to work. NONIE REYES

LABOR Secretary Silvestre H. Bello III ROY DOMINGO

The 29-year-old seamstress was among the 4,000 workers who were retrenched by five clothing manufacturing firms at the Mactan Export Processing Zone (MEPZ) due to the steep drop in demand caused by the pandemic. However, unlike her other displaced colleagues, the single mother of two refused the offer of a separation pay of P53,000 and two sacks of rice. “The offer is just too small since I still have small children and I am the breadwinner,” Alburo told the BusinessMirror in phone interview. After working since 2015 for Metro Wear Inc.—which manufactures jackets, pants and shirts for popular brands like Under Armour and Adidas—she thought she will get more. Upon the recommendation of a friend, Alburo sought the assistance of the labor group Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) and asked for advice on how she could get back to work. Sentro told Alburo to file an illegal dismissal case against her employer, which she did. However, existing regulations of the Department of Labor and Employment (DOLE) required her and the human resources representative of Metro Wear to meet on October 14 to first undergo mandatory conciliation and mediation.

Borrowed time

ALBURO said she wants to keep her job at Metro Wear as the pandemic has limited employment options for workers like her. During her tenure in Metro Wear, Alburo said she would work from 7 a.m. to 3 p.m. to produce 312 pieces of clothing, which are worth P4,000 to P5,000, depending on the brand. Alburo is considered a veteran seamstress, but she admitted that her daily quota—which was not reduced despite the onset of the pandemic in March—had put significant pressure on her. She said,

however, that she managed to hit her daily quota. In exchange for her hard work, she was paid a monthly salary of P12,000, which she said is already “quite high” in Cebu, where the minimum daily wage ranges from P376 to P404. Alburo said she is eagerly awaiting the outcome of the meeting with the Metro Wear representative as she has already spent all her savings to put food on the table.

Alternatives

AS her case is under mediation, Alburo is not yet officially retrenched and has no income because Metro Wear has barred her from working in its Cebu factory. “I was not given SAP [Social Amelioration Program by the Department of Social Welfare and Development] because they said I am a worker of a large company,” she said. Her status also prevented her from getting unemployment benefits from the Social Security System (SSS), where she is a member. Labor Assistant Secretary Dominique R. Tutay said workers like Alburo can qualify for the government’s livelihood assistance or temporary employment program from the Department of Labor and Employment’s (DOLE) regional office. She said DOLE-Region 7’s intervention for the mass retrenchment in MEPZ was notable since it was a “whole government approach,” which involved close coordination with the Public Employment Service Office (PESO) of the local government units (LGUs) in Cebu and the Regional Development Council. Under the scheme, the retrenched workers will be profiled so they could be referred to companies with vacancies. They will also be offered skills training as well as livelihood opportunities. Ednee said she was particularly interested in participating in the livelihood program so she could go

into hog raising, which will provide for the basic needs of her family until she finds a new job.

Recovery plan

DOLE said the partnership of its regional office in Cebu as well as LGUs will be its model in the implementation of measures for workers who are temporarily or permanently displaced because of Covid-19. During the Senate budget hearing on October 1, Labor Secretary Silvestre H. Bello III reiterated that their intervention for the estimated 4.6 million Covid-affected workers next year will focus on increasing the beneficiaries for their emergency employment, livelihood and youth-employment programs. In DOLE’s proposed P27.53-billion budget, P9.93 billion will be allocated for Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Worker (TUPAD) and Government Internship Program (GIP). DOLE will coordinate with local officials under the two programs. TUPAD provides temporary emergency jobs for its beneficiaries, while the GIP provides temporary employment for students in the public sector. Another program which will get a funding boost next year is the DOLE Integrated Livelihood Program (P809.5 million) and Special Program for Employment Students (P605.74 million). The four programs all got significant boost in funding allocation, which range from P58 million to P3.15 billion, as part of the government’s efforts to address mass displacement during the Covid-19 crisis.

‘Missed opportunities’

DURING the hearing, several senators expressed concerns over the Continued on F4

F4 Thursday, October 8, 2020

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‘SOLID PLAN KEY TO EASING WORKERS’ PANDEMIC PAIN’ Continued from F3

supposed gaps in the DOLE’s measures to address the impact of Covid-19 on the labor sector. Sen. Imee Marcos questioned the DOLE’s allocation of a large portion of its 2021 budget for providing short-term relief to affected workers through TUPAD and GIP, instead of spending it on providing long-term employment opportunities. She also said she sees the lack of focus on digital-related businesses, which are now in demand due to the pandemic. She said DOLE can provide additional employment options for displaced workers through these businesses. Bello said the DOLE’s 2021 budget proposal included P40 billion in cash subsidy to companies to ensure that they will not retrench any of their workers during the pandemic. He urged the Senate to restore this, as it was removed by the Department of Budget and Management. As for Marcos’s proposal on maximizing the booming digital economy, Tutay said the DOLE is looking at the possibility of including this in TUPAD, which is currently limited to temporary jobs, such as cleaning or repairing government infrastructure or public areas.

DOLE targets

SEN. Joel Villanueva also asked the DOLE why it lowered its target number of beneficiaries to be referred for placement to PESO next year to 1.5 million, from 1.6 million this year.

Villanueva criticized the DOLE’s target beneficiaries for its labor market information (LMI) in 2021, which remained at 2.2 million. The lawmaker noted DOLE should increase the beneficiaries of its PESO referral and LMI programs next year to accommodate the growing number of displaced workers. Tutay said the DOLE is currently in the process of updating its LMI to reflect the changing trends caused by Covid-19. Based on their initial findings, she said the jobs, which will remain in demand during the pandemic, are those in information technology, agribusiness, construction and medicine. She said the DOLE is targeting to come up with the updated LMI once it completes stakeholder consultations in December to provide the needed guidance to educational institutions as well as students and their parents during the pandemic.

Sharing pain

FORMER dean of University of the Philippines-School of Labor and Industrial Relations (UP-SOLAIR) Rene E. Ofreneo said the DOLE should continue facilitating consultations between workers and businesses during the Covid-19 crisis. Ofreneo said the pandemic is expected to cause a lot of disagreements between management and labor as many businesses struggle to cope with its effects. “The problem is sharing of gains is easy based on the joint commitment to productivity and survival program. But the sharing of pains, for example, reduction of worker benefits and reduction of

CITY workers bike their way to work to cope with the challenges of public commute coupled with the fear of getting infected with the coronavirus, July 2, 2020. NONOY LACZA

returns on investment in order to ensure survival and sustainability, which is quite hard,” Ofreneo said. “Labor and management should discuss business sustainability for a win-win solution and DOLE should be forward-looking facilitating these dialogues,” he added.

5-year plan

TO enable Filipino workers to survive the Covid-19 pandemic, labor coalition Nagkaisa is urging the government to craft a five-year recovery plan. In its initial position paper,

a copy of which was obtained by the BusinessMirror, the coalition proposed the creation of the Unemployment Subsidy and Work Assistance Guarantee (USWAG), a massive public employment program. It noted the program should include “clear annual targets” aligned with the Philippine National Physical Framework Plan 2016-2045, and the United Nations Sustainable Development Goals (SDG). “USWAG requires the development of several programs to ensure that the government can address the different situations of all

those who are unemployed. Some of these programs, though, would require tweaking to cope with the demands of the current crisis,” Nagkaisa Chairman and FFW President Sonny Matula said. Nagkaisa member and Sentro secretary general Joshua Mata said the coalition proposed income guarantees, equivalent to the prevailing minimum wage or P10,000 per month as well as wage subsidies equivalent to 75 percent of the prevailing minimum wage to retain jobs in micro, medium and small enterprises. The coalition pushed for em-

ployment guarantees for those who are unemployed, ranging from 100 days to nine months, and trainings for strategic employment facilitation, with a stipend of not less than 50 percent of minimum wages. Nagkaisa also proposed the expansion of the public sector to take on social tasks, such as upgrading the public health system, developing renewable energy and carrying out mitigation and adaptation measures to climate change. The coalition said it will submit the proposed program to DOLE once it finalizes its recommendations.

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Thursday, October 8, 2020 G1

BANKING SECTOR CITES DEFENSES VS

HEADWINDS FROM PANDEMIC

By Tyrone Jasper C. Piad

HE Philippine banking sector is proving to be resilient amid the major downturn, with bankers and even the Central Bank chief pointing to robust capital accounts as main defense against headwinds brought about by the battle against a pandemic.

“A bank is healthy if it has healthy capitalization, period,” UnionBank Chief Economist Ruben Carlo O. Asuncion told the BusinessMirror. “Now that there is a pandemic affecting not just the health of people, but also the health of the economy, it is key that a bank is healthy,” Asuncion added, noting that poor capital level can lead to banks closing. Latest data from the Bangko Sentral ng Pilipinas (BSP) shows such is still distantly worrisome.

Trajectory

INDEED, the banking system registered P2.38-trillion capitalization as of end-July, which is nearly 7 percent higher than the P2.23 trillion booked last year for the same period. In January the sector’s capital level was at P2.32 trillion. Looking at the trajectory from a decade ago, Philippine banks saw a substantial growth in capital. Capitalization has grown by nearly nine times from P268.12 billion as of end-July of 2010. The capital adequacy ratio (CAR), meanwhile, stood at 12.69 as of end-July. This is, however, lower compared to the 12.85 CAR registered in the previous year for the same period. Nonetheless, both figures are above the regulatory requirement. “The Philippine banking industry’s capitalization has been well above the minimum requirements for many years and decades, as set by local [10-percent CAR] and international regulators [8-percent CAR],” RCBC Chief Economist Michael L. Ricafort said.

Jolted

RICAFORT said that the banking sector’s being profitable is supporting its capitalization. “Philippine banks have been among the most profitable industries in the country in recent years and decades, as GDP [gross domestic product] and economic growth has been consistently at least 6 percent from 2012 to 2019,” he added. However, the recent figures—while still showing profitability—show the banking sector was also jolted when government attacked the Covid-19 pandemic with lockdown measures. In the first half, the Central Bank reported that the financial system saw its net income slide by around 22 percent to P86.48 billion from P110.97 billion year-on-year. The net earnings were dragged by the increasing provisions for potential credit losses as borrowers struggle to settle payments amid the enhanced community quarantine that the government imposed.

Contributory

MEANWHILE, Ricafort pointed out that the growth of the loan portfolio and deposit—which are at least two times to three times faster than the country’s economic growth in recent years—has supported higher interest rate income. The recorded uptick contributed to the banking sector’s healthy capital, according to Ricafort. He also emphasized that the “robust” trading gains were also a contributing factor. “The underlying declining trend in interest rates and bond yields over the last five to 15 years, as reflective of further developments and/or improvements in the local capital markets, has supported robust trading gains, especially recently with bond yields reaching new record lows or bond prices reaching new record highs, thereby adding to banks’ net income and capital,” he said.

Policy

ASUNCION commended the Central Bank for assisting the local financial institutions in maintaining a healthy capital level. Continued on G4

The disruptions from the shock, massive lockdowns forced by the pandemic initially jolted banks, but the sector, and regulators, have apparently learned lessons from past crises—one of which being, that keeping a robust capital is priority to stay afloat.

Thursday, October 8, 2020

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COPING WITH THE PAN

By Anne Ruth P. Dela Cruz

N the past few months of this pandemic, Filipinos realized that they could not depend on the government in the fight against Covid-19. It was up to the Filipinos to arm themselves against this invisible enemy that has engulfed the entire world. The challenge, though, was that while Filipinos may not be noted for their intense discipline, they are noted for their resilience and adaptability. This was the observation made by Camille C. Garcia, a psychologist and administrator of The Clinic of the Holy Spirit, a psychiatric facility, when asked about how Filipinos have been coping with the effects of the Covid-19 pandemic. While discipline may not be a trait that all Filipinos have, Garcia noted that the “bayanihan spirit that has been part of our culture” has made Filipinos follow the protocols to wash hands regularly, wear face masks and face shields in public and observe social distancing.

For all the complaints—valid or not—on social media, Filipinos have survived the Covidinduced disruptions on their life in the past semester, not because they are tops in discipline, but more because of their resilience, sense of bayanihan and faithfulness.

MEMBERS of a youth group in Star Wars costumes “patrol” the streets of Malabon City, April 30, 2020. AP/AARON FAVILA

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Thursday, October 8, 2020

ANDEMIC, PINOY STYLE

WEARING a mask to protect herself from Covid-19, a woman prays at the Shrine of Our Lady of Grace in Caloocan City, April 20, 2020. BERNARD TESTA

THE triage area medical staff exude positivity in the midst of the pandemic, at the Santa Ana Hospital in Manila, May 1, 2020. BERNARD TESTA

“The unity to help each other, from neighbors and our community, has made it possible for us to adapt to the new protocols. Thus, you can see how creative and resourceful we are. Some of the Filipinos have gone round to creating beautiful face makes by making use of indigenous materials. This becomes a source of income for them,” she said. “The family spirit is always within us to protect each and every member of the family. They are willing to make a sacrifice for the benefit of everybody and as such, we are pushed to obey in order to protect our family,” she added. Since Filipinos are easily alarmed, that was their initial reaction when the entire island of Luzon was placed under enhanced community quarantine back in March. Regardless of their status in life, “the uncertainty brought about by this pandemic” triggered initial complaints on how to survive, she noted. “You could hear complaints that they would die of hunger and not from Covid and that the doleouts from the barangay was not enough to sustain them. However, you can see we were able to adjust little by little to the changes because of the resilience among us,” she said. Slowly, Garcia said, Filipinos got used to the idea of falling in line, waiting and carrying out the everyday protocols. This acceptance and adaptability enabled most Filipinos to follow the new normal and how to handle everyday situations. While the pandemic did give Filipinos more time to spend with

their family, spending more time at home made “our minds think a lot more about the negative aspects of the pandemic.” “If we are outgoing and always out of the house to do your routine, it can be toxic just to stay at home. Yes, we are with our family but as time goes by, it comes to a point where you start observing even the minutest details of their flaws, their erratic behavior, and you are easily provoked with the slightest mistakes they make,” Garcia explained.

Work from home

IN addition to spending more time with the family, Filipinos also had to adopt another new normal activity—working from home, which, for some, can be very restless and uncomfortable. “A lot of complaints and criticisms come into your mind and this will affect how you react to situations. Because of this, you cannot enjoy the benefits of spending more time with your family because you have to worry about your finances, how are you going to pay for the bills, your children’s schooling. Your stress escalates to anxiety and eventually you might develop depression,” Garcia said. All in all, it is the uncertainty brought about by the pandemic that generates all the negative stress that Filipinos have been experiencing, “thus the anxiety, restlessness, irritability and depression can set in.” You also have to deal with the possibility of getting the virus whether you are just staying at home or working outside.” “You negative feelings will in-

tensify so much more if your work has been affected by the pandemic. This becomes even more of a reality if you have mental issues,” she said. “It is really difficult for anybody not to feel negative if you don’t know if you can hide from the virus even if you have been religiously performing the protocols.” To fight off these negative feelings, Garcia said it is important to strengthen one’s immune system since this has an effect on serotonin levels. Serotonin is a chemical nerve cells produce. It impacts every part of the body, from your emotions to your motor skills. It is considered a natural mood stabilizer. “Eat right, sleep well, exercise, manage your stress, connect with your friends and make your family your primary support group,” she said. “Surely these negative feelings will never control you if you manage to do all these.” Since there is still so much uncertainty as to when the pandemic will come to an end, Garcia said this would be a good time and opportunity to communicate more with family members and to inculcate good values to our children. “We should orient and reorient our family about the values of thriftiness, respect and self-discipline in order to obtain harmony among family members,” Garcia said. She also pointed out that Filipinos are known to be very religious. It is our strong faithfulness, regardless of our religion, that “will help us to be optimistic and hopeful. We have been continuously praying that this pandemic will end soon and we should continue to do so.” “Now is also the best time to be thankful for even the smallest of blessings that we receive. We should stop complaining,” she said, stressing that Filipinos “are known for our resiliency, resourcefulness, creativity, our good sense of humor and jolliness.” “Do not allow negative thoughts to control you. We can think of a lot of ways to recover and it is important that you do not carry this burden all by yourself. We are known for being family oriented and everyone can share and help with the burden,” she added.

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BANKING SECTOR CITES DEFENSES VS

BERNARD TESTA

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HEADWINDS FROM PANDEMIC

Continued from G1

The economic and financial crises of yesteryears have taught the regulators across the globe, including the BSP, that keeping a sufficient capital is priority to stay afloat, he explained. “For the Philippine case, I can say that the local financial system will continue to guard capitalization moving forward amid the delirious impacts of this once-in-a-lifetime event,” Asuncion said. Ricafort also recognized that the BSP has implemented a series of initiatives—monetary easing measures and regulatory relief—to help banks amid the ongoing crisis. Monetary authorities have trimmed the key policy rates by 175 points so far this year, bringing the overnight reverse repurchase facility to 2.25 percent. This move has released over P1 trillion worth of fresh liquidity into the financial system. The Central Bank, at the same time, brought down reserve requirements for the banks to channel more financing to lending—a move seen boosting demand for borrowings.

Indebtedness

HOWEVER, rising nonperforming loans (NPLs) or bad debts remain a major threat to the banking sector’s capitalization. NPLs are borrowings left unpaid for 30 days or more after the due date. “Rising NPLs are definitely the challenge because it can eat up into banks’ capitalization,” Asuncion said. Latest BSP data shows that bad loans reached P290.1 billion

“We are confident that this [NPL ratio] will remain within manageable levels considering the Philippine banking system’s adequate capital and ample provisions to absorb the rise in bad loans.” —BSP GOVERNOR BENJAMIN E. DIOKNO

as of end-July, which is 32 percent higher compared to P219.57 billion last year for the same period. Gross NPL ratio stood at 2.67 as of end-July, the highest in the recent years. Coinciding with the increase in NPLs is the growth of the total loan portfolio by 5 percent to P10.86 trillion for the period from P10.33 trillion year-on-year. Economists have been saying that the surge in bad loans was due to the reduced capability of the borrowers to settle payments. This is expected given that many Filipinos were left jobless as lockdown measures restricted mobility and business operations.

Ample

DEALING with a major financial constraint, many families have opted to prioritizing spending on the essentials only to survive— and payment of loans has become least of their priorities for now. De La Salle University (DLSU) Economist Maria Ella C. Oplas said she considers this behavior as “normal considering the situation that we are in right now where we need to prioritize spending.” Still, BSP Governor Benjamin E. Diokno said that the local banking system is healthy enough to survive the accumulating bad loans, thanks to robust capitalization. “We are confident that this [NPL ratio] will remain within manageable levels considering the Philippine banking system’s adequate capital and ample provisions to absorb the rise in bad loans,” Diokno told the BusinessMirror earlier.

Allowance for credit losses rose by around 60 percent to P321.85 billion as of end-July from P202.22 billion last year.

Divestment

ASUNCION said banks are expecting a bill proposed by lawmakers, which they dubbed the “Financial Institutions Strategic Transfer Act,” or Fista, can help ease the burden of the financial intuitions whose NPLs are rising. The bill allows the creation of special-purpose vehicles (SPVs), or companies created to protect parent firms from risks. “The creation of SPVs, or special-purpose vehicles, special entities where banks can essentially transfer NPLs to unburden their balance sheets, will be crucial for banks to continue operations and not succumb to the pandemic’s terrible impacts,” Asuncion explained. The proposed Fista allows financial institutions to get rid of their nonperforming assets by selling them to asset management firms. That way, they can attain better management of their debt levels during this pandemic. Bankers Association of the Philippines President Cezar P. Consing earlier said the Fista could be deemed successful if 30 percent to 40 percent of nonperforming assets will be sold to asset management companies. Nonperforming assets as of end-December could qualify for third-party selling under the bill. But the coverage may be extended until the second quarter of next year. That is, if the bill is approved and enacted into law.

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Thursday, October 8, 2020 H1

COVID WIPED OUT 2020, BUT IT’S TIME TO PLAN FOR ‘MOVING FORWARD’ T

By Jovee Marie N. Dela Cruz

HE Philippines, like most countries of the world, is still grappling with the Covid-19 pandemic. The virus has infected not only hundreds of thousands of Filipinos but also ravaged the economy, gouging businesses, impacting millions of workers and disrupting lives all around. The Covid-19 pandemic has caused the massive displacement of Filipino workers here and abroad. This pandemic, lawmakers, said underscores the need for “futureproofing” measures that would protect both the Filipinos and the economy in times like these. This

arises from the certainty among experts that it will certainly not be the last such crisis. With this, the cochairman of the House of Representatives economic cluster, Marikina Rep. Stella Luz Quimbo, is asking the government to consider several ways to

support workers critically impacted by the pandemic. Quimbo filed House Bill 7028, or an act instituting a National Unemployment Insurance Program, as millions of Filipinos lost their jobs due to the pandemic. According to Quimbo, the Philippines needs a national unemployment insurance program capable of intertemporal risk pooling. Such can protect workers even during a period of massive unemployment caused by a general economic downturn. The key features of the proposed program: compulsory participation by formal sector employees; voluntary participation by the self-employed and workers in the informal sector, through incentives; progressive, income-based premium contributions; shared premium contributions among the government, employer and employee; basic unemployment insurance benefits limited to at most Continued on H2

While no one expected a mega crisis like the Covid-10 pandemic would wipe out practically the entire 2020, lawmakers and policymakers are racing to ensure the next major disaster—whatever the origins—can be reckoned with in a better manner through measures that have been “future-proofed,” so to speak.

H2 Thursday, October 8, 2020

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COVID WIPED OUT 2020, BUT IT’S TIME TO PLAN FOR ‘MOVING FORWARD’ Continued from H1

three monthly payments; and additional benefits in the form of training, training allowances. It also includes the creation of a Philippine Job Insurance Corporation (PhilJob), which is tasked to administer and implement the insurance program. The Social Security System as program manager shall formulate the rules and regulations to implement this proposal. According to Quimbo, “with a monthly contribution of about P40 by a worker earning P500 per day, the proposed program provides for unemployment insurance payments amounting to 80 percent of the worker’s basic pay prior to involuntary separation from work.” This, she added, is intended “to ensure that lost income is temporarily and partially restored so that expenditures of a family are

not drastically reduced when the household head loses his or her job and financial support is provided for job search. The limited and temporary unemployment benefits are only for those who were involuntarily separated.” The bill provides for when a worker becomes eligible, i.e., that he or she has made at least six monthly contributions in the 12-month period prior to separation from work. The proposed program also provides for job counseling, job matching and training, including training allowance, to ensure that the unemployed is matched with a new employer immediately. The bill also provides for an initial Endowment Fund of P30 billion, which will fully subsidize premium contributions for workers and employers on the first year of program operations, as a form of economic stimulus.

Price Act

HOUSE Committee on Trade and Industry Chairman Wes Gatchalian said his committee is now finalizing the proposals amending the 28-year-old Republic Act 7581 or Price Act to include several basic commodities in the coverage of the law. The committee on trade together with the Department of Trade and Industry wants to expand the coverage of the Price Act by including protection to consumers by expanding the definition of basic necessities and prime commodities; imposing an automatic price control on prices of construction materials during certain situations and declaring personal protective equipment (PPE), face masks, safety goggles and medical devices as prime commodities. The DTI has proposed to the panel to include tea, cereal, readymixed coffee, alcohol, hand sani-

“WE Win As One” billboards, strewn all over the Rizal Memorial Sports Complex in Manila, one of the venues used as the country hosted the South East Asian Games in December 2019, serve as an ironic backdrop to the hardships experienced by locally stranded individuals as they wait for the results of their swab tests, a requirement to get a travel pass, and finally a chance to get on government-provided rides back to their home provinces. BERNARD TESTA

tizers, disinfectants, infrared body thermometer, PPE including face masks of all kinds, gloves, coverall, hair caps, shoe covers, face shields and goggles as basic necessities. Toothbrush, toothpaste, shampoo, dipper, pail, umbrella, raincoat, school supplies, rough forest lumber, LED fluorescent lamps/bulbs and fluorescent have also been pushed to be included in the proposal. Trade Undersecretary Ruth Castelo told lawmakers that the DTI proposals seek to adapt to the present conditions dealing with price stabilization and to update the list of basic necessities and prime commodities. The proposal also seeks to harmonize the basis of computation among concerned government agencies in the determination of prices. The DTI official said the agency proposal aims to expand the powers of the Price Coordinating Council.

The new Price Act, she said, aims to provide “at all times” the effective and sufficient protection to consumers against hoarding, profiteering and cartels with respect to the supply, distribution, marketing and pricing of goods. Also, Castelo proposed a new definition of “average price,” which they now refer to as “the sum of all the prevailing prices within a month divided by the number of weeks monitored.” She said the proposal also provides a clearer definition of “suggested retail price,” which refers to the price issued by the concerned implementing agency to be issued as reference in the monitoring of prices. Castelo said the DTI also wants to provide a new definition of “unreasonable increase,” which now means an increase in the price of any basic necessity or prime commodity that goes beyond the limits or standards set for the determination of price ceiling.

The proposal also includes the granting of the power to the National Price Coordinating Council for the inclusion or exclusion from the coverage of the Price Act.

Balik Probinsya

MEANWHILE, House Committee on Economic Affairs Chairperson Sharon Garin has called for the swift passage of House Bill 7111 or the Balik Probinsya Program Act of 2020, which seeks to decongest highly urbanized areas, promote regional socioeconomic development, and establish mechanisms for sustainable reintegration. According to Garin, the Covid-19 pandemic has shown how congestion in certain localities has enhanced the vulnerability of poor families, women, children, older persons and adolescents to epidemics. “The goal of the bill is to reduce this vulnerability by attaining equitable voluntary spatial distribution of the population and Continued on H3

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Covid wiped out 2020, but it’s time to plan for ‘moving forward’ low both tenants and landlords to renegotiate rent under the options in the proposal. “The Bayanihan [1 and 2 laws] rent deferments are good, but because it takes people longer than three months to find new jobs, we still run the risk of eviction unless we can find ways to get pending rent paid now, and allow tenants more time to finance their rent. Deferments alone are unsustainable because lessors, many of which are retirees, need

TENTS for locally stranded individuals (LSIs) are laid out at the Rizal Memorial baseball field in Manila, so they can be tested for Covid-19 before being sent back to their home provinces. BERNARD TESTA Continued from H2

strengthen the resiliency of families and communities. We need to encourage the urban population to return and be reintegrated in their areas of origin within the context of informed choice and voluntarism,” she said. Citing the 2018 Report of the Philippine Statistics Authority (PSA), Garin further underscored that three highly urbanized regions—National Capital Region (NCR), Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon; or Region IVA) and Central Luzon (Region III)—accounted for about two-thirds (62 percent) of the total gross domestic product of the entire country, while the remaining one-third was shared by the rest of the 14 regions. “This condition reflects a highly unequal and inequitable socioeconomic development across regions in the country,” she added. The bill highlights the provision of subsidies for livelihood, support to employment, and income-generating activities for beneficiaries. This shall be fulfilled in coordination with local government units (LGUs) and private business institutions within the relocation area. To encourage private entities to relocate their investments in the countryside and suburban areas, participating institutions may enjoy incentives, such as, but not limited to, tax rationalization, financial subsidies and other administrative support for viable businesses, economic enterprises and investments. The formulation of a national and regional Balik Probinsya interagency and multisectoral medium-term plan is also incorporated in the bill, which shall serve as a guide for the implementation of various component strategies of the program. The plan shall be integrated as part of the regional and provincial development plans and

approved by the concerned provincial governor and Sanggunian Panlalawigan. Garin remains hopeful that the bill will be fast-tracked to address the needs of the time.

CDC and virology

AMID the continuing threat of Covid-19, House Committee on Ways and Means chairman Joey Sarte Salceda filed House Bill 6096 incorporating all key elements of the country’s health emergency management under the Center for Disease Control and Prevention, and House Bill 6793, creating the Virology Institute of the Philippines. Salceda said HB 6096 will complement the recently passed Department of Disaster and Resilience as an added component to a national resiliency strategy. “There is a need for a highlevel public institution imbued with the capacity, the competencies, the ecosystem, and the authority to confront these risks decisively and thus protect the public welfare and enable development to proceed amidst these rising risks,” he added. According to Salceda, the proposal also introduces the concept of rapid-onset risks and sets the national imperative for a framework for decisive intervention. Under the bill, the creation of the Center for Disease Control and Prevention, as a separate agency under the control and supervision of the DOH, but with broader policymaking, implementation, surveillance, disease control and prevention powers, including direct response over communicable or infectious diseases. The bill also provides for the absorption of the Epidemiology Bureau and the Research Institute for Tropical Medicine into the CDC. It also creates the Disease Emergency Management Bureau (DEMB) to calibrate the CDC’s response to health emergencies.

It creates a National Health Emergency Response Unit (NHERU), which shall act as the frontline force in ground and surveillance operations of the CDC. Moreover, Salceda said the funding to set up the Virology Institute of the Philippines is already included in the proposed 2021 national budget. In next year’s budget, P283 million is allocated for the establishment of the institute which will be the country’s research center for cures and preventative methods and products for viruses. Salceda said this budget is “preliminary,” and that he will ask the Department of Budget and Management (DBM) to clarify whether these are merely for capital expenses or will already include organizational expenses. Salceda added that the Virology Institute also needs to start being integrated into industry development plans. “Research and development is the future of the Philippine economy. We see much industry development potential in the virology institute. Abaca is apparently the best surgical mask filter. Virgin coconut oil apparently has potential as a therapeutic for throat viruses. Of course, our metals extractive industry could also see plenty of value added if used in virus-combatting technology. This could be gamechanging for many industries,” Salceda said.

Rent relief

SALCEDA has also proposed House Bill 7665 or the Rent Relief Act of 2020, which will make rent refinancing options available for the more than two million households under tenancy agreements in the country. With the economic downturn and joblessness due to the pandemic, many Filipinos will continue to default on their payment of rent and utilities. Salceda proposes an eviction moratorium of three months to al-

to eat, too,” Salceda said. The proposal mandates the Social Security System (SSS), the Government Service Insurance System (GSIS) and the Pag-IBIG fund to offer rent refinancing loans to their members, at favorable rates. It also mandates the Landbank of the Philippines and the Development Bank of the Philippines to offer rent refinancing loans at rates not higher than their lowest-yielding loans. Under rent refinancing, the

banks will pay rent for some determined period, say, one year, while providing the tenant a much longer loan repayment period. “The Philippine Statistics Authority, in the 2015 Census of Population and Housing, estimates that some 2.7 million households occupy rented housing. We estimate this number to have increased to 3.1 million in 2020. Our analysis of the newly unemployed shows that up to 3 percent of these Continued on H4

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COVID WIPED OUT 2020, BUT IT’S TIME TO PLAN FOR ‘MOVING FORWARD’

NONIE REYES

According to House Committee on Economic Affairs Chairperson Sharon Garin, the Covid-19 pandemic has shown how congestion in certain localities has enhanced the vulnerability of poor families, women, children, older persons and adolescents to epidemics. Continued from H3

households, or some 93,000 households, may be in danger of eviction due to nonpayment of rent dues even with the Bayanihan measures to provide rent relief,” Salceda said. “For these households, measures that not only defer payment schedules, but actually get the rent paid for a period that is long enough to regain meaningful employment, are urgently needed,” he said. Salceda’s bill also allows promissory notes to be accepted, under an arrangement where government financial institutions finance the promissory note, and the rent obligation is converted into a loan with a government financial institution, to ensure that the tenant is not evicted during the period paid for with the loan. To allow tenants some time to avail themselves of the programs under the bill, it also imposes an eviction moratorium for three months upon the effectivity of the bill, to provide the implementing agencies enough time to roll out the measures contained in this bill. The bill also mandates setting up of rental assistance centers by the Department of Human Settlements and Urban Development to help tenants and lessors renegotiate terms of lease, access programs under this bill, and find other assistance programs available that would prevent tenants from being evicted. To be certain, as no one can predict precisely when the next pandemic or major public health crisis or disaster will happen, leaders and their constituents can only do so much to mitigate impacts of things that cannot be prevented even by the best precautions. And, hopefully, having such “futureproofed” measures in place will come in handy—and save lives— the next time a crisis emerges.

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IN THIS PANDEMIC ERA, ARE CONSUMERS STILL IN THE MARKET FOR FASHION? SSI’S ANTON HUANG WEIGHS IN

By Pauline Joy M. Gutierrez

N a would-be whirl of opulent haute couture presentations for Fashion Week’s spring 2021 season—with global fashion houses attempting to showcase collections to top the last— the runways are relatively empty, replaced instead by a cluster of virtual shows and theatrical live broadcasts. Sure, the number of attendees has been slashed to a fifth of the size of previous seasons, but the embattled industry, despite the challenges created by the pandemic, proves that it is ready to move forward.

If there’s any indicator of why such is the case, Anton Huang, president of Stores Specialists Inc. (SSI), the country’s largest specialty retailer which carries luxury brands such as Prada, Gucci, Salvatore Ferragamo and Givenchy,

points to the continued demand for fashion by consumers. “The reasons behind each purchase may vary, whether it’s the need to shop for essentials, a need for an escape or a reward, or even the need to gift someone with something of value,” the retail mogul said in an exclusive interview with the BusinessMirror. “Our core customer base has proven to be resilient, as seen in the performance of key categories in our portfolio during this pandemic,” he added. Huang’s optimism is not without basis. US-based management consulting firm McKinsey and Company, in the report “The State of Fashion 2020”, posited that the fashion industry is seen to regain positive growth of 2 to 4 percent in 2021, compared with 2019’s baseline figure. Continued on I2

ANTON HUANG, president of Stores Specialists Inc. (SSI), the country’s largest specialty retailer which carries luxury brands such as Prada, Gucci, Salvatore Ferragamo and Givenchy.

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In this pandemic era, are consumers still in the market for fashion? MODELS wear creations as part of the Francesco Liberatore 2021 women’s spring-summer ready-to-wear collection during the Milan Fashion Week in Italy, September 25, 2020. AP/ANTONIO CALANNI Continued from I1

For the personal luxury goods industry (luxury fashion, luxury accessories, watches and jewelry, as well as high-end beauty), it estimates a positive growth of 1 to 4 percent next year—a considerable feat considering the average market capitalization of apparel, fashion and luxury players dropped to almost 40 percent between the start of January and March of this year, according to digital intelligence firm Business of Fashion and SLI. Recent developments also suggest fashion has not reached the end of the runway yet. In the UK, multinational firm PricewaterhouseCoopers stated in its 2020 Consumer Sentiment Survey that despite economic uncertainty, 58 percent of consumers have disposable money and are willing to spend. Chinese demand for luxury goods, on the other hand, is projected to grow as much as 30 percent this year as high-income mainland shoppers drive the country’s post-pandemic economic rebound. In Italy, which has a fashionand-textile industry worth $107.9 billion that makes up 1.5 percent of its GDP, buyers are once again flocking to stores. Shows that premiered in Paris Fashion Week, such as Ralph & Russo’s “La Futura”, and Boss’s spring campaign shot at the Palazzo del Senato in Milan, have also been wellreceived by global audiences, with millions of views across digital media platforms as of press time. In the Philippines, discretionary spending is fueling the retail demand. “Since the launch of The Specialist, our online concierge service, and the SSI Life Viber community, we have observed that our customers’ shopping behavior toward nonessential items continues to be there,” said Huang. There is, though, a spike in demand for certain apparel categories like loungewear and athleisure (sweat pants and sport bras). “We see some changes in their preferences and choices in terms of styles due to perhaps the shifts in their lifestyles, such as working from home and the like,” explained Huang, adding that another thing that influences consumers’ post-

lockdown purchases is revenge consumption. “We may see a continued change in buying and spending habits [sustainable consumerism and conscientious buying] but we can also expect a surge in what we term as ‘revenge shopping’—pentup demand to make up for the months of not being able to go to the malls and shop on a normal basis,” said Huang. Not surprisingly, this increasing intention around shopping during the pandemic has been paired with a push to shop sustainably, and in the midst of the revenge consumption trend, there is a broader drive for sustainable consumption. Across the country, where traditional weaves handcrafted from local textiles is experiencing a resurgence, the fashion industry goes full circle with local designers and retail brands shifting to sustainable methods. Spanish apparel brand Zara, also included in SSI’s portfolio, have churned out an environmentally conscious program, “Join Life”, and the label Denim (WO)MAN, which uses materials like organic cotton and repurposed denim. Last month, Tommy Hilfiger announced the launch of “Make it Possible”, an approach to environmental and social sustainability that reinforces the organization’s commitment to create fashion that “Wastes Nothing and Welcomes All”. In practice, consumers have also already begun changing their behaviors accordingly. In another survey by McKinsey and Company among 2,000 women in April, 67 percent consider the use of sustainable materials to be an important purchasing factor, and 63 percent consider a brand’s promotion of sustainability in the same way. Meanwhile, 72 percent of women are willing to pay more for “quality pieces that will endure.” Consumers have the intention to buy. Now, they just need the option. With sentiment remaining resilient, e-commerce is providing a valuable service during this period. “Our overall move toward digital and e-commerce in 2019 has immensely helped us in adapting and pivoting to the abrupt changes we have encountered this 2020,” said Huang.

He added, “Currently, our online efforts have shown significant growth of over 300 percent increase in sales. We are very optimistic that our e-commerce business will be able to mitigate the losses the company has incurred due to the pandemic, and allow us to further expand our footprint in the digital space.” The SSI head also shared that they will be launching a multibrand e-commerce site to complement its monobrand sites this year. “This new multibrand site will bring together many of SSI’s brands in one premium marketplace, providing Filipino consumers with unique access to some of our most recognizable brands on one digital platform,” said Huang. Meanwhile, brands under the SSI portfolio continue to have brick-and-mortar stores to complement its e-commerce retailing. “All our existing brands continue to have physical stores. This puts us in a unique position to link our brick-and-mortar stores with our e-commerce platforms, providing our customers with an omnichannel shopping experience,” he said. Huang shared that since the reopening of SSI’s full store network in June, it has seen steady monthly increases in sales, and better-than-expected sales in August, this despite the declaration of a two-week modified enhanced community quarantine (MECQ). He added, “Of course, we are also strengthening the experience in our stores, communicating the health and safety measures that are in place, and ensuring that we continue to have relevant merchandise, coupled with selective but compelling promotions to draw shoppers into our stores.” With economic uncertainty continuing to hover over countries globally, how is SSI Group plotting out the business landscape in the new normal? Huang concludes: “Our main focus for the remainder of 2020 is to accelerate our e-commerce expansion and strengthen our footprint in the online space. We will continue to innovate new channels like The Specialist concierge service, through which we can get fresh and relevant inventory delivered straight to our customers, without them having to leave the safety and comfort of their homes.”

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H&M’s new CEO gets tough with plan to eliminate 5% of stores

By Thomas Mulier & Anton Wilen | Bloomberg

ENNES & Mauritz AB Chief Executive Officer Helena Helmersson is getting tough in her first year running the Swedish fashion retailer, announcing plans to reduce the store count by 5 percent next year. The CEO is making H&M’s biggest retrenchment ever as the pandemic exacerbates its record inventory buildup. The retailer said Thursday it plans to permanently shut 250 stores on a net basis in 2021 after eliminating 50 this year. The stock rose as much as 8.3 percent. Helmersson’s first year at the helm

HENNES & MAURITZ AB Chief Executive Officer Helena Helmersson MATTIAS BARDÅ/H&M GROUP

of the company has been more challenging than she bargained for as Covid-19 has plunged the industry into its worst business conditions in decades. Inventory remains a headache, increasing to more than 21 percent of 12-month revenue. That’s more than double the level of Zara owner Inditex SA.

Job cuts are looming throughout the retail industry as chains find it’s easier to sell online than in person. Marks &

Spencer Group Plc said in August it’s cutting about 7,000 jobs. Any reductions at H&M would probably affect a bigger proportion of women than men. About threequarters of H&M’s 180,000 employees are female. Third-quarter pretax profit came in at 2.3 billion kronor ($257 million), higher than the 2 billion-kronor estimate that H&M gave last month. Sales have been recuperating, with revenue dropping 5 percent in September, the first month of H&M’s fourth quarter. Third-quarter sales had fallen 16 percent. “The recovery is going better and faster than we expected,” Helmersson said via phone, attributing the performance to wellreceived collections and strict cost control. “The worst is behind us.”

Helmersson declined to estimate how many jobs may be cut. She said that H&M plans to close shops in mature markets, like Europe and the US, whereas the retailer will open more stores in countries with more growth potential like Russia, India and Japan. The sudden appointment of the new CEO in January signaled a step back by the family shareholders who dominate H&M. They replaced Karl-Johan Persson, the grandson of the company’s founder, after he failed to reduce the amount of unsold garments over the past four years. Now he is H&M’s chairman. Helmersson’s 23 years at H&M began in 1997 in purchasing, and she has worked in Bangladesh and Hong Kong for

the retailer. A year before the recent promotion, she became chief operating officer. The new CEO is starting to prune a retailer that the Persson family expanded every year for over the past two decades, increasing the store count from about 600 to 5,000. “After years of overstoring, we welcome this change and are encouraged by the magnitude of cuts,” wrote Aneesha Sherman, an analyst at Sanford C. Bernstein. H&M is also trying to lower rents of existing stores. The company’s lease agreements are scheduled so that it can renegotiate or exit one-quarter of them in any given year. That will help reduce the cost of closures, Bernstein’s Sherman said.

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The show must go on... but how? And where?

By Pauline Joy M. Gutierrez

HE coronavirus pandemic has given rise to an ongoing surge in media consumption, and in a country where audiences remain largely reliant on television as their primary source of news and entertainment, broadcast networks have begun venturing back to producing shows. Episodes sidelined since March have resumed production, while variety and game shows are airing again albeit sans the audience. Scripted programs are back on the prime-time block as well. In the case of free-to-air television network GMA Network Inc., prime-time series such as Descendants of the Sun (the Philippine adaptation), drama anthology show Magpakailanman, variety show All-Out Sundays and sitcoms Pepito Manaloto and Bubble Gang, among others, have been cleared to restart filming. Meanwhile, the newscasts Unang Balita, 24 Oras, 24 Oras Weekend, Balitanghali and Saksi have been constant sources of news and information and continue to be aired in real time. Under the socalled Power Block strip, there’s Front Row, Reporter’s Notebook, IWitness, Brigada and I Juander. GMA News TV, the network’s news-centered channel, also

launched a new program block with the new normal in mind: New Normal: The Survival Guide, featuring different shows every night: Newsmakers, Bright Side, Pera Paraan, Home Work and Family Time. Lilybeth Rasonable, senior vice president of the GMA Entertainment Group, said that despite the ongoing health crisis, which remains as uncertain as it was unexpected, it is still business as usual for the network—or at least as much as publichealth provisions allow. “Because of the community quarantine and the strict protocols that came with it, productions had to come to a halt for several months,” she said, adding that the biggest and most difficult challenge being faced by production teams now is keeping a safe production environment for everyone. “All other challenges stem from this—reduced number of oncamera artists, staff, crew; reduced working hours, adjusted scripts,

ONE of the primetime offerings of GMA, Descendants of the Sun, was sidelined by the coronavirus outbreak. The series has resumed taping in a bubble.

tapings in a ‘bubble’, etc. All these stem from the objective of keeping the work environment safe as much as possible,” said Rasonable. The entertainment head further shared that with huge on-ground events still not permitted under the new quarantine guidelines imposed by the government, the network has been adjusting to the new normal in all aspects of its operations. For lock-in tapings, the network administers the RT-PCR test, which is considered a gold standard in the diagnosis of coronavirus infection, before entering lock-in and the swab antigen tests upon exit. “For nonlock-in tapings, we administer RT-PCR once a month since our nonlock-in tapings tape once a month, too. GMA has several accredited suppliers for the tests,” explained Rasonable. “We have several safety protocols for location tapings and studio tapings or live shows. They are all in manuals that are discussed with each and every program,” she added. Apart from the mandatory swab tests, GMA also provides personal protective equipment to its talents, while locations, studios, as well as technical equipment, costumes and props undergo disinfection procedures. Physical distancing during tapings is observed, and daily health monitoring is practiced by everyone on set. There are medical personnel on set to monitor the staff’s health

condition throughout the day, plus safety officers to make sure that safety protocols are followed. “These are just some of the many safety protocols included in our manuals, all of which abide by the government guidelines on Covid-19 safety,” said Rasonable. In addition, an increase in production budget because of Covid19-related costs has been set up. The network has also been filling its available airtimes with reruns of its most popular titles.

Boosted growth of digital services IT was the general consensus that the pandemic has accelerated the growth of digital platforms and products, which would have otherwise taken years to achieve (according to the government’s targeted analog switch-off by 2023). As a result, GMA was quick to offer its own Digital Terrestrial Television (DTT) receiver. In June, the broadcast firm launched GMA Affordabox, a plugand-play device that can easily be connected to an analog television in order to receive digital television broadcast. Here, users can watch GMA, GMA News TV, Asian shows and channels such as Hallypop (a onestop shop for K-pop, lifestyle and entertainment made in partnership with Jungo TV) on digital display, as well as all other free-to-air digital television channels available in their area.

“If there is one relatively positive thing that Covid-19 has brought about, it is the birth of new ideas for creative content and new ways of doing things,” Rasonable said. She added, “Crisis is really the mother of innovation and we will see a lot more of this on television in the coming months.” Earlier this month, GMA Network expanded its social-media presence as its official Facebook page recently reached 20 million followers. The boost in GMA’s follower count is attributable to its growing lineup of trending video content which includes various clips from GMA programs as well as exclusive videos of the network’s artists that cater to fans. In August, a collection of engaging digital shows and exclusive content was made available to online viewers via GETS (GMA Entertainment Shows) Online. In maintaining a modicum of normalcy, new shows like the drama anthology I Can See You premiered in late September. “It is a continuous learning experience as we move along this new normal,” said Rasonable. “A continuous adjustment in production processes and also in content.” “We have a mandate to deliver information and entertainment to the public, and for the network to fulfill this, we have to continue to adapt to the ever-changing environment,” she ended.

Disney delays ‘Black Widow,’ Spielberg’s ‘West Side Story’

SCARLETT JOHANSSON in a scene from Black Widow.

EW YORK—The Walt Disney Co. has further postponed its next megamovies from Marvel, including Black Widow, while also postponing Steven Spielberg’s West Side Story a full year in the company’s latest recalibration due to the pandemic. Ten of Disney’s top films shuffled release dates Wednesday, uprooting several of the company’s major fall releases. The Scarlett Johansson Marvel movie Black Widow, last set for November 6, heads to May 7 of next year. Instead of opening next month, Kenneth Branagh’s murder mystery Death on the Nile moves to December 18. That was the date set for West Side Story, but Spielberg’s musical will instead debut in December 2021. Disney didn’t entirely abandon the season. The Pixar release Soul remains on the calendar for late November. The Empty

Man, a horror release from the former 20th Century Fox, is moving up from December to October 23. But the delays of Disney’s upcoming blockbusters reinforce the growing exodus from 2020 among the blockbusters that hadn’t already uprooted to next year. Following tepid ticket sales for Warner Bros.’ Tenet in a US theatrical marketplace where about 30 percent of cinemas remain closed, Warner Bros.’ Wonder Woman 1984 moved from October to Christmas and Universal Pictures’ Candyman postponed to next year. Given the interconnected nature of Marvel releases, the latest delay of Black Widow had a domino effect on other films. Destin Daniel Cretton’s Shang Chi and the Legend of the Ten Rings, starring Simu Liu as the martial-arts hero, is now slated for July 9, 2021, instead of May 7. Chloé Zhao’s Eternals, with Angelina Jolie, Gemma Chan

and Kumail Nanjiani, moves from February to November 5, 2021. “Marvel made the right and responsible decision,” Nanjiani said on Twitter. “There’s a pandemic. Nothing is more important than health and lives. I can’t tell people to go to a movie theater until I feel safe going to one.” The Ben Affleck-Ana de Armas thriller Deep Water was also pushed from November until August next year. Notably, Disney didn’t announce any films were pivoting to its streaming platform, Disney+. Since the pandemic began, the company’s Mulan, Hamilton and Artemis Fowl have gone direct to streaming, with Mulan made available for a $30 premium purchase by subscribers. Disney has declined to share digital grosses for Mulan, though the live-action remake has underperformed in theaters overseas. AP

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Sports godfather

par excellence A

NYONE in Philippine sports who doesn’t know Manuel V. Pangilinan, or MVP, is not from this country. He or she could be from another planet even.

MVP entered Philippine sports like a storm. He was the certified sports patron, the benefactor. The sports godfather of all godfathers. And the corporate icon that he is, MVP formalized his enormous support for Philippine sports by establishing the MVP Sports Foundation, or MVPSF, which was incorporated in 2011 and registered with the Philippine Securities and Exchange Commission as a non-stock, non-profit organization that is a privately-funded sports development foundation of the MVP Group of Companies. “We are focused on helping sports, in particular at present: badminton, basketball, boxing, cycling, football, golf, taekwondo, rugby, weightlifting, rowing, gymnastics and skateboarding,” MVPSF president and trustee, Alfredo “Al” Panlilio said. “Through the years, aside from

NAME a virus that could beat the MVP Sports Foundation team of Chairman Manuel V. Pangilinan—shown here with world champions Nesthy Petecio (boxing) and Carlos Yulo (gymnastics)—President Alfredo “Al” Panlilio and Executive Director Paul Ryan Gregorio. basketball, MVPSF has lent a hand in supporting other disciplines and sports that serves as driving force in the development of world class Filipino athletes with a mission of helping both grassroots development and elite programs through our national sports associations [NSAs],” Panlilio added. The list of sports under MVPSF’s care are a dozen long and they are coursed through the NSAs: Samahang Basketbol ng Pilipinas, Alliance of Boxing Associations in the Philippines, Philippine Badminton Association, Samahang Weightlifting ng Pilipinas, Philippine Taekwondo Association, Philippine Rugby Football Union (women, men’s 15 and youth), National Golf Association of the Philippines, Philippine Foot-

ball Federation (women and futsal), Gymnastics Association of the Philippines, Philippine Rowing Association, Skateboarding and Roller Sports Association of the Philippines and Integrated Cycling Federation of the Philippines (PHILCYCLING). “As part of our dream to bring the Philippines its first ever Olympic Gold medal, we also support elite athletes who have a chance at making this happen,” said MVPSF executive director Paul Ryan Gregorio, referring to world champion gymnast Carlos Yulo, Rio 2016 weightlifting silver Medalist Hidilyn Diaz, 2018 Asian Games skateboarding gold medalist Margielyn Didal and 2019 Southeast Asian Games golf gold medalist Bianca Pagdanganan.

With a dozen NSAs to take care of— making sure grassroots programs are in place and elite athletes are harnessed to world-class levels, the MVPSF should be pouring in a lot of resources to achieve its objectives. “From 2011 to 2019, MVPSF has contributed more than P1.4 billion to Philippine sports,” Panlilio said. When the Covid-19 pandemic prompted the implementation of an enhanced community quarantine in March, MVPSF stood its ground. “The foundation continued to coordinate with the NSAs, checking up on the respective sports and how the athletes are doing,” Gregorio said. “We want to understand how the NSAs are coping, how they planned to adjust their operations, and see how MVPSF could support given the new normal.” Besides the Tokyo Olympics-bound athletes—Yulo and boxers Eumir Marcial and Irish Magno—Gregorio said a good number of the NSAs were in the process of qualifying their athletes for the postponed Games “so a lot of coordination was needed to find the best way to adjust to both the unforeseen circumstances in the present and the uncertain future for the sports world ahead of us.” “The MVPSF regrouped with its president, Al Panlilio, to adjust its approach for the rest of 2020. We

continue to communicate with and get updates from the NSAs until today,” Gregorio added. Because the foundation’s roots have already been deeply embedded in the ground, Panlilio said the MVPSF was unrelenting in its support of the 12 NSAs. “It was more of understanding the limitations each sport is encountering given the present circumstances,” Panlilio said. “We take into account factors such as how we can help in maintaining the physical condition of the athletes, how training can be facilitated, and how competition formats can be augmented to fit the new normal in our re-assessment of the support given.” “We are doing our best to study this new situation the sports world is in so we can continue to lobby hard and maximize the funding we can secure for the support of our national athletes,” he added. The commitment to Philippine sports, Panlilio stressed, won’t waver. “MVPSF will still continue to support sports to meet our objective and vision for the athletes,” Panlilio said. “We will also monitor how global sports will be adjusting to the new normal. If we see there are any developments such as online competitions or virtual training programs, as long as these are aligned with our mission, then we will continue to support.”

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SPORTS DURING PANDEMIC: SHUTTERED BUT UNYIELDING J By Jun Lomibao

No training, no competition, no action. No nothing. Prado rides for the Navy team sponsored by Standard Insurance—a non-life insurance business for over 60 years and the leading motor car insurer in the country. Since the enhanced community quarantine in March, she and her fellow cyclists couldn’t ride their bicycles anywhere in the country. T hey had to set t le for t r a i ne r s i n s i d e t he c o n f i nes of t he i r homes, or where ever they were locked d o w n — a m a j o r i nt e r n a tiona l race, the Le Tour de Filipinas of A ir21 and U be Media Inc., was steamrol lered by the pandemic and the Inter nationa l Cycling Union race’s 11th edition had to be shelved. E l se where, at h letes i n eight sports supported by Po w e r b a l l - G o F o r G o l d Scratc h it! were forced to stay home, like any other non-essential citizen of the country, settling for workout at home—because even gyms

ERMYN PRADO, in full combat uniform, is detailed at the Post Engineering Unit of the Philippine Navy in Taguig City. She’s tasked to man the desk and at the same time do some welding jobs.

Prado is the 2019 30th Southeast Asian Games gold medal winner in women’s individual time trial of cycling. She also clinched a silver in the road race to crown herself queen of cycling of the biennial regional games the country hosted last December. Only months after Filipino athletes dominated the country’s hosting of the SEA Games for only the fourth time—after 1981, 1991 and 2005—sports screeched to a halt. The Covid-19 pandemic struck the entire world and lockdowns and quarantines were put in place.

JERMYN PRADO, the 30th Southeast Asian Games cycling queen, is a welder, too.

were closed. C h o o k s - t o - G o, o n t h e ot her h a nd , t ra nsfor med its generosity in bankrolling the country’s elite basketball program into a nationwide frontliner-support campaign that kept doctors, nu r s e s , p o l i c e , m i l it a r y, among others, on their toes by never getting a rumbly tummy while they kept for against the virus. The Manuel V. Pangilinan Sports Foundation (MVPSF) was the most resilient, keeping the faucet of support flowing especially on the country’s Tokyo Olympics-bound athlete—just like in the shoe commercial, it’s support never stops for MVPSF. With the pandemic stunting spor ts for more than seven months now, the country’s foremost benefactors i n s por t s stood resi l ient that even though business crashed into a wall like a cyclist somersaulting into a cliff, they never pulled the plug from their advocacy— love for sports.

Chooks nev

BOUNTY Agro Ventures Inc. President Ronald Mascariñas commitment to sports include Chooksto-Go ambassador, triathlon champion Nikko Huelgas, and basketball star Robert Bolick.

HIS roasted chicken slogan says you don’t need sauce to spike its flavor. In less than half a decade, Chooks-to-Go doesn’t need any introduction anymore. Bounty Agro Ventures Inc., a company founded in 1997, ventured into basketball in 2015 by supporting the University of the Philippines Fighting Maroons. From 2017 to 2019, the company’s president, Ronald Mascariñas, upped the ante and backed the Gilas Pilipinas program as its main sponsor. “In 2019, we formed Chooks-to-Go Pilipinas 3x3 with the main objective of the country qualifying for the rescheduled 2020 Tokyo Olympics,” Mascariñas said. “This eventually became the center of our sports program.”

From basketball, Chooksto-Go sponsored the Philippine Superliga in 2018 and continues to bankroll the Chooks-to-Go Rapid Chess Tournament in coordination with the Rotary Club that is running on its third year. The company also put up a hallowed list of ambassadors from Kiefer Ravena to Gabe Norwood, Kobe Paras and Kai Sotto, plus champion triathlete Nikko Huelgas, Paul Desiderio and Misagh Bahadoran. “We are also currently in the second year of our partnership with the MPBL [Maharlika Pilipinas Basketball League],” Mascariñas added. Some 30 or so years ago, lechon manok became a craze and practically every street corner had one roasted

chicken stand. Only a few, however, made it this long with Chooks-to-Go stealing the thunder of the traditional favorites by innovating on the fried chicken and getting involved in sports. Such bold involvement in sports, especially the team sport of basketball, commands a high price. And Mascariñas is not the type to hide the company’s investment in sports. “We allocate a certain amount for sports for very roasted chicken sold and that amounts to about P300 million per year,” he said. Do the calculation—six years (from 2015) multiplied by Mascariñas’s figures equals a lot of zeroes and commas. But when everything around the world came to

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Setting a standard E

RNESTO “JUDES” ECHAUZ, the Group Chairman of Standard Insurance, has sailing flowing in his veins. But from the calm-to-ferocious seas where he steered his yacht Centennial III and most recently Centennial V, the tender-natured Echauz ventured into three other sports that has one common denominator—a bicycle. Echauz’s Standard Insurance chartered through triathlon, cycling and duathlon, a support that yielded a bumper crop of medals from the 30th Southeast Asian Games in December 2019. “We started supporting sailing, initially in big yacht racing, at the Manila Yacht Club in 1994. Thereafter, we continued supporting the Philippine Sailing Association [PSA] which was then based at the MYC in the other classes by being the major private sponsor in the 2005 SEA Games in Subic Bay,” said Echauz, who now heads the PSA. The support prospered and endeared and Standard Insurance takes pride in the two gold medals Filipino athletes won in the fleet and match racing on Far East 28Rs keelboats and another gold in the men’s 470, a silver in the women’s 420 and a bronze in the men’s 420. Two gold and one silver medal were also won wind surfing, which falls under the PSA disciplines. The support was also highlighted by the Centennial Sailing Team’s success in international yacht racing. The team’s crew are mostly from the national team who in the last 10 made Centennial III,

a TP 52 yacht, and the most recent, Centennial V, a Rachel Pugh 75 yacht, champions in the region. So how did sailing and cycling blend in Standard Insurance’s program? “My daughter, Magali, was an NCAA [National Collegiate Athletic Association] Most Outstanding Swimmer in her elementary years and started triathlon in her high school year,” Echuz narrated. “That’s when we bumped into cycling coach, Coach Bernie Llentada from the Philippine Navy.” With Magali piling up victories from the Iron Kids to the Batang Pinoy and becoming a contender for the Youth Olympics, the elder Echauz took one look at cycling and behold, he was enamored with the two-wheeled equipment. He sponsored the Philippine Navy cycling team that continues to dominate the Ronda Pilipinas with most of its riders making the national cycling team. And because of his love affair with the bicycle, he converted some of the Navy cyclists to do duathlon and later recruited some on the country’s top duathletes, including SEA Games champion Monica Torres. The duathlon team Echauz said, was an offshoot of the cycling squad when we triathlete whom we have sponsored, to captain the national team. In the 30th SEA games, the team won the gold for the individual women, silver for the individual men and bronze for the team relay. Running, too, was on the Standard

ver stops

a halt because of the Covid-19 pandemic, Chooks-to-Go was one of a few who stood unrelenting. “Of course, the majority of our on-ground activities had to stop. MPBL suspended its league last March. Our 2020 season for 3x3 was also delayed because of the quarantine restrictions,” Mascariñas said. The pandemic made Mascariñas even bolder. “During the quarantine lull, we made the bold step of turning the league [3x3] professional. For the national [3x3] team players, we did not stop in giving their salaries— still paying them in full even if we had to bring them back to the States,” he said. Mascariñas said Chooks-toGo never ceased operations, thus continuing its generosity, even during the pandemic. “Not just the sports, but also our players and ambassadors.

There were ambassadors who we renewed as well,” he said. “Of course, we had to adjust to a work-from-home set-up with everyone. Besides, we also had to roll out rolling stores during the ECQ and MECQ,” Mascariñas explained. “Later on, we also launched our reseller program. Extreme pivoting on our part to survive that time. Eventually, we were able to get back to re-opening our stores while still maintaining the reseller program. Sales have stabilized since then.” Mascariñas vowed sports will remain tops in Chooks-to-Go’s corporate social responsibility activities. “Our investment in Sports and other CSR activities are means to our greater objective of instilling ‘Love of Country,’” he said. “We believe that ‘Love of Country’ is important in building a strong country.”

STANDARD Insurance Group Chairman Ernesto “Judes” Echauz’s passion for sports ranges from sailing with his Centennial III yacht and cycling—the latest addition to the stable is the women’s team of Southeast Asian Games gold medalists Jermyn Prado and Marella Salamat and Kate Velasco, Mathilda Krog and Marianne Dacumos.

Insurance program. “We sponsor running among our company employees under our own running coach,” he said, adding a recent junior recruit for duathlon, Tara Borlain, is hitting the middle distance to prepare for the 31st SEA Games in Vietnam in 2021. A nd t hen t he pa ndem ic

struck. But for Echauz and Standard Insurance, life goes on, and so does sports. “Sports activities with the elite athletes who are either our employees or from the Navy are integral to the company’s operations,” he said. “Annual budgeting are performed for training and competition, local and

international, expenditures, which includes various allowances as well as for equipment.” Except for the junior athletes who are below 18, Standard Insurance athletes follow the salar y scale and benefits as either employees of the company or as enlisted personnel of the Nav y and

with both being able to avail of the company’s car plan. Echauz didn’t divulge any figures as to how much it costs to support all these athletes, but taking into consideration the price of an elite level road bike that fetches no less than P250,000—excluding accessories like helmets, shoes, GPS equipment, among others—and multiply that amount to the Navy cycling team alone of 15 men and women, do the math and that equates to a lot. Yet, the company kept the athletes—and employees in general—close to its heart during the pandemic. “There has been no reduction of personnel, including athletes, although additional ones have been hired under our BPO operations since more international companies, especially those from the United States, have increased its outsourcing,” Echauz said. “ When GCQ was declared for Cavite, some cyclists and duathletes [who are based there], started training already,” he said, adding power meters, a must in training of elite athletes, were even made available to the cyclists. As for sailing, although under GCQ, the sport remains to be disallowed in Manila and Subic Bay, but Echauz said the PSA is preparing for offshore races with Far East 28R keelboats for the 2024 Olympics in France and the Rolex China Sea Race in April 2021. “Out of more than 2,000 staff in the company and its BPOs, there are only a dozen mild positive cases,” Echauz proudly said.

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Golden goal takes backseat

VERYTIME Jeremy Randell Go walks into a crowded room, he takes the path less traveled, so to speak. He wants to come in unnoticed, little or no grand entrance at all. Go is vice president for marketing of Powerball, the company behind Scratch It, a lottery game where a player scratches a play area on a ticket to reveal a winning symbol or pattern equivalent to a cash prize that is paid immediately. The game has been in existence for the past 10 years, but with Go’s love for sports—he’s a triathlete and a cyclist—Go For Gold was born in 2016. At first it was just those two sports that involves a bicycle—triathlon and cycling. But a year or so after 2016, the campaign’s reach expanded and Go For Gold’s name recall has become synonymous to sports. Six sports were added to the list, according to Go. These are skateboarding, the sport that made Margielyn Didal a household name, and sepaktakraw, a fun to watch sport where athletes-cum-acrobats use their feet and play a badmintonlike match that draws oohs and aahs from whoever watches the game. Wrestling of the freestyle and Greco-Roman type, as well as dragonboat racing, chess and basketball

were added to the Go For Gold roster. “We also went into basketball [Maharlika Pilipinas Basketball League and Philippine Navy team] and we supported the Air Force’s men’s volleyball squad,” Go said. With close to a dozen sports under its care, its nowhere cheap. “I don’t have an exact number, but more than P10 million over four years,” said Go— and of course, that’s a ballpark figure that when equated to the athletes who benefit from the support, they’re priceless. But the Covid-19 pandemic struck and

MENTION Jeremy Randell Go and Go For Gold and they’re synonymous to sports godfathers for their support to athletes, among them dragonboat rowers and sepaktakraw artists. business went sour. All lotto outlets were shut down and with it Sratch It sales went flat. “Unfortunately our businesses were shut down and currently we are still on recovery mode,” he said. T he economy continues to suf fer with government allowing lotto outlets to open today, but would be closed again due to the var y ing level of quarantines imposed in certain localities. Under this unforgiving situation, Go said Go For Gold’s campaign needed to take the backseat, for now. “For now, we cannot support new sports sponsorships and have put on hold existing commitments,” he said. But Go praised Go For Gold’s athletes for their flexibility to adopt even in the most difficult times. “Most spor ting events have been canceled, both local and international, but that has not affected our athletes to much,” he said. “Now, they just focus on maintaining fitness for when the world comes back [to normal].” From a business and sporting stand point, Go said the company has to drastically reduce spending. “Even now, we still have no idea on the pace of recovery so we need to be cautious on spending,” he said. But Go vowed Go For Gold will go for a restart of its own once the virus is beaten. “We will try to support our athletes if we are able. Hopefully, business will recover and we can continue,” he said. “I cannot guarantee the future because I honestly can’t foresee when this pandemic will be over.”

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Foresight, ‘cutting-edge’ strategies, measures help contain Covid-19 The Valenzuela LGU shows what it takes to be ahead of the game, taking steps as early as January to blunt profiteering, stock up on resources, set up health infra against a pandemic.

By Roderick L. Abad Contributor

IKE in any crisis, being always one step ahead of the game is an effective antidote so far administered by the local government unit (LGU) of Valenzuela to, at the least, control the rapid spread of Covid-19 within the city since the global race for a vaccine appears to be far from over yet.

“We in Valenzuela City have been very proactive as early as the first localized transmission of Covid-19 came up,” Mayor Rexlon Gatchalian told the BusinessMirror in an e-mail interview. The local chief executive was referring to their initiative to lay out their Covid-19 response protocol since January 2020. As early as March 12, the LGU had approved the AntiPanic Buying and Anti-Hoarding Ordinance, the first in the country to anticipate hoarding of goods. Also, it deployed “grocery monitors” for the implementation of the program in various groceries and convenience stores in the city. In an effort to bring food to every table, the city government, to date, has distributed food vouchers thrice to as many as 581,901 families in Valenzuela. “We have also, on the side of it all, been watching accredited Covid-19 laboratories like a hawk,” he said. In fact, Valenzuela is the first LGU to close a privatepublic partnership deal with a Department of Health (DOH)accredited Stage 5 laboratory to do its own localized targeted mass testing. Being one of the pioneers of such control and immunization strategy, the city tied up during the last Holy Week with private laboratories, namely, The Medical City, Detoxicare, Singapore Diagnostics, and Hi-Precision to process swab tests done locally.

Spending within their means

ADDRESSING this unprecedented health emergency, like other unfortunate events the city had confronted in the past, requires a hefty investment. Despite its limited resources, the local government of Valenzuela still managed to cover for the essentials in these tough times. At the start of the enhanced community quarantine (ECQ) in mid-May, the city coffers had cumulatively close to P700 million, not even one-fifth of its tax collection to match its annual budget of P5 billion. “But that P700 million was enough for us to sustain our food pack distribution, which we’ve done in the past couple of months. Remember, LGU’s money, the revenue, is

filled up by business tax by January, then real property tax by March,” Gatchalian explained. “So you may have budget appropriation but that does not mean that there is cash there. And remember since we had the lockdown, tax payments were deferred.” His declaration of a state of calamity allowed his administration to use the whole wealth of the city’s funds for crisis management. Given the enormous expenses—from feeding the people to testing and running the isolation facilities—cost-cutting measures were indispensable. Luckily, though, many public expenditures were also canceled, such as school utilities and graduation rites that were canceled as classes stopped amid lockdowns. “These funds are being reallocated to meet the growing demand the Covid has brought into play. Not just in the response but in preparing for the new normal,” the mayor said, while citing his regular meetings with the local Sanggunian when it comes to allocation and realignment of funds. “[It’s] very responsive because I am a firm believer that the more heads are talking about it, the more transparent you are.”

Isolation is prevention

EVEN if the National Task Force against Covid-19 had just recently proposed to adopt a strict “no home quarantine” policy, this measure was already being observed in the City of Valenzuela since the outbreak started early this year. Gatchalian admitted that the idea came from the national government’s order for LGUs to set up their respective Continued on K2

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Foresight, ‘cutting-edge’ strategies,

MAYOR Rexlon Gatchalian (third fromright), Vice Mayor Lorie Natividad-Borja, District 1 Councilor Rovin Andrew Feliciano, Liga ng mga Barangay President Councilor Bienvenido Bartolome, Arkong Bato Punong Barangay Cristina Marie Feliciano, and DPWH Metro Manila III District Engineering Office Officer in Charge Engr. Allan Rey Pahimna at recent inauguration of the Arkong Bato Quarantine Facility. VALENZUELA PUBLIC INFORMATION OFFICE Continued from K1

central isolation units. First initiated by the Department of the Interior and Local Government in February, this is now mandated by the DOH. Realizing early on that it will be more effective to stop the chain of infections if all patients confirmed positive for Covid-19 are placed in a central isolation unit, Valenzuela began doing it as soon as the virulent illness became a pandemic. “So that’s why we implemented the ‘no home quarantine’ protocol [already back then],” the mayor recalled. From merely two isolation units, the number has increased to 14. Adding to these are the two more similar facilities being built by the national government. The local chief executive looks forward to the completion of both to further encourage his constituents to go to isolation facilities, since “no home quarantine” is implemented in Valenzuela. It also makes their jobs easier when the place where the patients will be quarantined for 14 days is conducive to fast recovery. In case there is a need for more isolation facilities, he pointed to a buffer of around 200 beds which are operational anytime. Meanwhile, Valenzuela hospitals’ operating capacity decreases at present. Admittedly last month, they were almost full. But now their capacity levels gradually normalize, given that Valenzuela posts an average of 30 to 40 Covid-19 cases daily; with majority of them asymptomatic, compared to 60 to 80 cases a couple of weeks ago.

Tracking possible carriers

IN contact tracing, Valenzuela has upped the ante in locating the whereabouts of people who possibly had direct contact with confirmed carriers of Covid-19. The city government recently opened a call center-like tracking hub called the Mega Contact Tracing Center (MCTC). Complementing the City Epidemiology and Surveillance Unit monitoring for Covid-19 contacts, the local government deployed 160 contact tracers, data encoders and disease surveillance officers at MCTC—running a 24/7 shift of intensified contact tracing in the locality. Apart from contact tracing on the floor, this daunting tracking task is now also automated. This is to veer away

from traditional forms as the city maximizes the use of technology by developing software that could help in contact tracing and in the prevention of further transmission of Covid-19. Supported by City Ordinance 783, Series of 2020, Valenzuela Tracing (ValTrace) Application now enables residents and nonresidents to register and download their own Quick Response (QR) code and have it presented upon entering enclosed indoor establishments in the city as it officially rolls out on October 5, where a “No QR Code, No Entry” policy will be mandated. The LGU collaborated with Appcase Inc. to develop the app for use of individuals and establishments. Registration and the use of it is free of charge. Both establishments and individuals are required to register in the app by signing up at http://valtrace.appcase.net as Citizen (for the individual) and as Merchant (for establishment). After registration, individuals will be provided with a unique ValTrace-generated QR code which they can store on their phone or print for a physical copy. There will only be one QR code per person. On the other hand, establishments need to install the ValTrace QR scanner app to be given access to a software which will allow them to scan the QR code of registrants prior to entry in the establishments. When the QR code is scanned by a listed establishment, an individual’s personal information will be transmitted to the Valenzuela Central Contact Tracing System at the Mega Contact Tracing Center for easy tracing. The city government will handle all information gathered from the data subjects with the highest degree of confidentiality and will securely dispose of such after 30 days from the time it was collected.

Localized mass testing

COMPLEMENTING the MCTC, the city is set to open its two newly built laboratories located at the Valenzuela City Emergency Hospital—the Valenzuela Hope Molecular Laboratory (VHML) and Valenzuela Serology Laboratory (VSL)—to help boost its localized targeted mass testing as it explores new capacities in conducting its own sustainable Covid-19 response. With a capacity to run as many as

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VALENZUELA PUBLIC INFORMATION OFFICE

, measures help contain Covid-19 700 specimens daily, VHML has a polymerase chain reaction (PCR) machine (Biorad CFX 96 Real-time PCR Detection-Thermal Cycle) and is expected to be fully integrated with the Abbott Architect machines of the VSL through a Laboratory Information System. The VHML, now on its final stage of licensing to operate, will house a medical technology lounge, clean write shop and supply room, doffing and donning area, reverse transcription (RT)-PCR room, temperature adding room, re-agent room, specimen handling and sample preparation room and specimen receiving area.

“As we foresee the opening of our own molecular laboratory, we will be able to hit our target to test 10 percent of our population,” Gatchalian said, while noting that a total of 24,000 individual RT-PCR tests have been conducted in Valenzuela to date, or 4 percent of the city’s projected 2020 population of 664,613. “Hopefully with all our targeted efforts, we will soon be able to effectively test, trace and isolate our cases,” he said.

Good policies in place

AT the onset of the lockdowns, the members of the City Council were always proactive in coming up with

what they deem best for the welfare of Valenzuelanos, while also upholding and integrating health protocols. Proof of this are the 53 ordinances and 45 resolutions (and counting) that they were able to pass from March to May, ranging from Covid-19 jokes, discrimination, liquor ban, kite-flying, new normal on dorms and lodging, food services, public health, transportation, and wearing of masks, to name a few. These policies will be gradually adapted as Valenzuela transitions to the new normal and strictly implements the health standards on the ground.

“Our City Council is very active and very inclusive in the sense that they come up with ordinances that are very encompassing, with committees well-represented and focusing on the concerns of our constituents. This way there will be strict enforcement of minimum health standards because we are active in implementing it through our city ordinances,” the mayor said. While conceding that they still haven’t perfected their response to the pandemic, there’s a need for “significant investment in changing mindsets” and “paradigm shift” that the minimum health standards are not an exception or a special thing to

do, but rather a way of life. “And in order to do that, we really have to push hard on educating the population in ingraining [it] in their mindset. So we are going to add investing in education because like what the IATF said, preventive steps are cheaper than the one that we are doing right now, and there’s a big chance that we can end this pandemic if the people will follow the minimum health standards,” he emphasized.

Back to business

BECAUSE the economy also emerges as a casualty whenever there is a pandemic, the city government of

Valenzuela is not concerned about more of the bigger companies operating there, but rather the smalltime businesses. Currently, the city hosts 15,000 establishments, of which 5,000 are industrial. “Definitely,” he thinks “the bigger companies here…can survive.” Gatchalian cited the fact that they are currently starting to pay their taxes, which means they have enough “stored resources” to weather the storm. “What I am more worried about are the MSMEs [micro, small and medium enterprises]. This is because they are easily” impacted, Continued on K4

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Foresight, ‘cutting-edge’ strategies, measures help contain Covid-19 Continued from K3

adding that, “we have done a lot of focus groups with them and we’ve realized that they want to stay in the game.” While the local chief executive is concerned about the welfare of MSMEs, he reiterated that the LGU will not be “giving out discounts left and right” since the city also needs revenues considering that the crisis has wiped out a lot of its cash reserves. “There are capacities out there for PPP, and right now we are working with cooperatives in the city who have stored capital, who are also wanting to release those capital because that’s their business,” he stressed. The mayor added that they are exploring financing working capital of the MSMEs through the capacities of local lending institutions. “I even want to venture on the discussion on modernized jeeps,” Gatchalian said, while linking the health crisis to the ensuing lack of public transport. “In order for them to go back to the streets they have to start modernizing, and the first step is to organize themselves into a transport cooperative. And again, where would they find their working capital? Right now, we are

working again with certain banks who are into the business of loaning to MSMEs.” To help sustain economic activities amid lockdown measures, the mayor guaranteed that businesses will remain up and running at the fastest possible time through the so-called Paspas Permit. “So if a company is going to rationalize in making people work from home, the local government of Valenzuela will enable that, we will make sure that you are productive while you are at home, you don’t have to come to City Hall anymore to pay your taxes [or] just to get your permits,” he said of the 10-second business permit platform they launched last year. “We are just going to start to expand it all the way to zoning.”

Lessons learned

FOR Gatchalian, there is no prescribed playbook for the Philippines or anywhere else in the world as far as solving a crisis of this magnitude is concerned. “We have never seen anything like this. What we are doing right now is to respond accordingly on what we need to do. In a nutshell, the LGU is operationalizing what the national government dictates or instructs, and we also have to respond accordingly to what the

THE local government deployed 160 contact tracers, data encoders and disease surveillance officers at its Mega Contact Tracing Center—running a 24/7 shift of intensified contact tracing in the locality. NONIE REYES

terrain is calling us to do,” he explained. “I’ve realized [that in] this pandemic, every single hour there seems to be a twist and a turn that the LGU has to respond to. That being said, if you are to make me put

it in one sentence, the LGU’s main job is respond immediately based on the stimulus outside.” Just like what they usually do whenever there is a fire, flood, typhoon or any disaster, they always

have medical, relief, social and even peace-and-order interventions. In this time of Covid-19, the city government is testing ahead, isolating people, and putting them in hospitals if they need medical

attention so as to keep the cases at a minimum level. When it comes to delivering relief, Valenzuela also has intervention in terms of fighting hunger. “I can tell you point blank that, to the best of my knowledge, no one in Valenzuela went hungry during that time. We managed to somehow come up with an efficient distribution system without violating the social-distancing rules, food on the table for the whole lockdown period for every single Valenzue lano household, so we were able to fight hunger,” the mayor said. The only playbook here, according to him, is the delegation of the responsibilities wherein the ALERT Center, or the command base on disaster preparedness, has been operating round-the-clock since the pandemic came up. “Again, the key is the delegation of responsibilities. It is also important that we go down on the ground so there is no ‘disconnect’ [between] what is really happening, tailor-fitting ways into the realities especially now that the pandemic has no manual, no standard operating procedure. It’s not me that is doing the heavy lifting here, it is a good team that is doing the heavy lifting, not just me. The commendation goes to them also,” Gatchalian stressed.

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THE IMPOSSIBLE IS POSSIBLE: Covid shut down schools, but learning goes on

By Claudeth Mocon-Ciriaco

PENING schools during the Covid-19 pandemic is the biggest challenge that the Department of Education (DepEd) has faced so far as countries across the world, like the Philippines, are struggling to continue education amid the health crisis.

Days before the October 5 opening of school year 2020-2021, Education Secretary Leonor Magtolis Briones said that she is proud of the DepEd’s progress in less than six months, where “you overhaul practically the entire educational system, change the curriculum, change the methods of education, of learning delivery in a matter of months.” She is equally proud of how all stakeholders—teachers, parents, students, school officials—have done their share just to achieve what seemed the impossible, i.e., have millions of students continue learning outside of school: from homes big and small, and even from improvised facilities like an old jeepney, an abandoned shed, under the tree or a hilltop where the Internet signal is better. Noting the criticisms and cynicism they faced—some quarters were pushing the DepEd to abandon blended learning because it is too problematic, and simply declare an academic freeze—Briones said the fact that the school system and stakeholders were able to “respond positively is already a signal of the capacity of the department and of Philippine society, of parents, of teachers, of all of you, to be able to look and to see what might happen and how we might react to this.” “So, the question always is, were we ready last August 24 [the supposed schedule of the class opening]? We were ready [then]! And we are very much ready on October 5 [the final schedule] and this is a celebration! This is a declaration of victory!” exclaimed

Briones in a briefing ahead of the rescheduled opening.

Self-learning modules

THROUGH its field offices and teachers, the DepEd sought to find out which among the range of off-school pedagogical modes best suited students depending on their location in the archipelago, it found out that most parents prefer the modular learning modality for their children over other options. This, based on the initial results of the Learner Enrollment and Survey Form (LESF), which showed that 8.8 million parents preferred modular, over the 3.9 million who voted for blended learning, which is a combination of

The images that critics and doomsayers point to as evidence of the “folly” of distance learning—teachers, students, parents struggling to have “classes” continue off-school, in some of the most challenging climes—are also the best testament to why the Filipino child should not lose this year by default.

TEACHERS and property custodians of Navotas Elementary School deliver school supplies and self-learning modules to learners’ residences in Barangay San Jose, Navotas City, in a division-wide simulation exercise conducted by the Department of Education. NONOY LACZA different modalities: module, television and radio or radio with online. Parents who opted for online only numbered 3.8 million. A total of 1.4 million parents preferred educational television, while at least 900,000 chose radio-based instruction. Around 500,000 or half a million parents preferred other modalities. Sevilla gave assurances that in school year 2020-2021, there would be no sharing of Self-Learning Modules (SLMs), vowing a ratio of 1:1. “This 2020, we already found ways [to ensure 1:1 ratio]. We realigned, re-

prioritized,” Sevilla said, noting that they already utilized the Special Education Fund for the new requirements of off-school learning after local government units (LGUs) gave their support. Undersecretary for Curriculum and Instruction Diosdado San Antonio said, in an interview before the opening, that they expected the remaining 20 percent of the modules to be delivered before classes start. San Antonio gave assurances the modules are being disinfected prior to distribution. According to Undersecretary for Field Operations Revsee Escobeo, a total

of 667,673,924 printed SLMs for the first quarter of 2021 are expected to be completed as well. The DepEd said SLMs have been its utmost priority, as modular learning is the preferred learning modality across different regions.

Self-readiness assessments

ACCORDING to Education Undersecretary Nepomuceno Malaluan, schools were asked to conduct self-readiness assessments before the start of the school year. Those who rated themselves below 50 percent got necessary

assistance, such as professional development training and physical and psychosocial support. The department’s dry-run simulations have also been ongoing for the past several months. These determine areas of improvement and best practices when it comes to implementing the learning delivery modalities. Approximately 500 schools from various regions with diverse circumstances have already conducted these simulations, and the results are promising. Sucao Elementary School, in the mountain province of Abra, conducted one such simulation in cooperation with the Baay-Licuan local government unit. The school gave learners transistor radios and flash drives with prerecorded lessons. The school also showcased how these flash drives can also be plugged into the radios, making it easy for learners to access their modules. Schools under the alternative learning system (ALS) also participated in the dry-runs. Tagum city’s TAGUMpay Palengskwelahan, a learning center that offers ALS programs for elementary and secondary learners, showcased how they implemented modular distance learning and online learning by using 20 computers, emodules and radio-based instruction. The modules were sent to students’ homes and retrieved the week after through the DepEd’s Knowledge on Wheels mobile. The school is located in the Tagum City Public Market. Indigenous groups in Calay IP School exhibited resourcefulness and innovation by inventing the Learning Resource on a WiFi Hub for Expanded elearning in Sarangani (LR on WHEeLS). Using intranet technology, access point antennas were set up in communities where learners can connect their gadgets. All self-learning modules and video lessons were made accessible on LR on WHEeLS. Students sent their teachers messages in-app if they needed clarifications, and were prohibited from accessing social-media pages or online games to ensure that the technology could only be used for learning. Indeed, the DepEd’s efforts showcased how continuous preparation and collaboration between education stakeholders can create a promising future for education’s new normal. Continued on L2

Thursday, October 8, 2020

15inQuarantine: Locked

Business

The impossible is possible: Covid shu Continued from L1

LGUs in full force

“OUR local governments, they really come in full force,” Briones noted partly in Filipino, noting how LGUs have been supportive by donating reproduction machines, mobilized supplies of papers, inks to produce the modules to public schools. Makati Mayor Abigail Binay distributed the Learner’s Package, which includes an “On The Go” (OTG) flash drive, a device designed for offline learning of students, as she touted the city’s Learning Continuity Plan (LCP)—a product of close collaboration between City Hall and the City Schools Division of Makati (DepEd-Makati). “The OTG flash drive is part of the Learner’s Package provided by the city to all public school students in Makati, from preschool to senior high school. It is one of the primary tools we came up with to ensure that no student will be left behind as we go through the new normal in education,” Binay said. An OTG flash drive contains digitized self-directed modules and video broadcast editions dubbed DepEdMakati VIBE. It can be used in different gadgets such as cellphones, laptops, desktop computers, tablets and smart televisions. On the other hand, the Learning Continuity Plan addresses both the common and unique needs and concerns of students arising from the adoption of the blended learning approach consisting of online and modular distance learning modalities, she said. “The plan deals with issues such as limited access to gadgets and Internet connectivity. It contains ways and means to ensure continuous learning while keeping our students and teachers safe from Co-

vid-19 infection,” Binay said. “It also highlights the role of stakeholders, including teachers, parents, and barangay officials and workers, in the effective implementation of all the programs and initiatives detailed in the LCP. After all, the education of the youth is a shared responsibility which requires no less than the collective effort of all stakeholders,” she added. Profiling done by DepEd-Makati among over 78,000 public school enrollees and their parents to gauge their readiness for the school opening showed 74.9 percent have cellphones which they can use for online learning. At least 24 percent had access to a laptop, tablet, television or radio, while 1.1 percent had no access to any of the said equipment. In her previous announcements, the mayor said Makati will provide public school teachers and students with a five-hour free Internet load daily, and will also distribute over 2,500 laptops to teachers this October. Earlier this month, the city started distributing the learner’s package to parents and guardians of nearly 85,000 enrollees from preschool to senior high school in the city’s public schools. Each package contains printed modules, a parent’s journal, two washable face masks and one OTG flash drive. Other school supplies such as textbooks and uniforms under Project FREE (Free, Relevant and Excellent Education) were also distributed.

San Juan and DICT

IN San Juan, the city government and the Department of Information and Communications Technology (DICT) joined hands to provide all students who are residents of San Juan and enrolled in its public schools, from Kinder to high

school (including SPED students) with free laptops, tablets and pocket WiFi. “We are very fortunate to have forged a partnership with the DICT. These programs will truly benefit the San Juaneños, especially in this pandemic. Though it never occurred to me then in 2019 that digital learning will be implemented nationwide in 2020 because of the threat of Covid-19, San Juan City public school students are very lucky to have the DICT providing their needs for online schooling,” Mayor Francis Zamora said. DICT Secretary Gringo Honasan and Zamora led the ceremonial turnover of the “e-learning package” to parent and teacher-representatives on October 1. Higher grade level students of Pinaglabanan Elementary School received laptops and tablets with pocket WiFi as part of the DICT’s Digital Learning project. All elementary and high school students from all other public schools in San Juan received one tablet each Zamora thanked the DICT for being a constant partner of the local government in making the lives of the San Juaneños E-Ready; this, he said, will really be helpful especially in these trying times. “It really breaks my heart to witness the struggle of the families to survive from the challenges brought by the pandemic, many have already lost their jobs, but what aggravates their situation is how they can cope with the requirements of the new online learning scheme this year,” said Zamora.

Pasig’s initiative

MEANWHILE, Pasig City Mayor Vico Sotto vowed to continuously support the DepEd and called for unity and cooperation.

PARENTS drop their children’s enrolment and survey forms in boxes placed outside the Parañaque Elementary School Central in keeping with physicaldistancing measures. Among the questions asked in the survey is the learner’s household capacity for and access to distance learning, such as the availability of electronic devices and Internet connectivity. ROY DOMINGO The Pasig LGU allocated P1.3 billion for tablets of every public school student, laptops of teachers, and ICT needs of students of the city. Sotto said City Hall is also helping public schools in the printing of modules, Internet connection, and adapted

training for teachers and parents. “Our keywords for this season are really adaptability and synergy. Hindi po tayo papayag nang dahil sa virus ay matitigil ang pag-aaral at edukasyon ng ating mga kabataan [We will not allow our students to stop learning because

of the virus],” Sotto said. Pasig, he added, is also eyeing to strengthen its participatory governance, school governing councils, expanded local school boards, scholarship programs, among others, in support of education continuity.

d Down But Looking Up

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Thursday, October 8, 2020

ut down schools, but learning goes on Support from private business

FROM nationwide cell site rollouts to significant investments in ICT, cybersecurity and the Cloud, Globe Telecom has earnestly worked with the education sector, local government units, and businesses to build a nation that’s better equipped for a digital future. Amid the challenges to attain such a feat, Globe carries on with its avowed main goal—to connect all Filipinos to a world of possibilities. Globe provided free data access to the DepEd’s online learning platform at commons.deped.gov.ph to encourage educators and learners to take advantage of supplementary online instructional materials. Globe also has its own eLibrary at globeelibrary.ph which contains more than 1,000 free eBook titles and eLearner videos for students and teachers to view online and download offline. This platform may be accessed by Globe and TM customers without data charges. Globe said it is a strong advocate of quality education—one of the 10 United Nations Sustainable Development Goals that the company has committed to support. With schools forced to adjust to new approaches in instruction due to the pandemic, Globe had stepped in early enough to help teachers remain effective under current circumstances and be able to deliver quality education even with limited resources available. The telco lined up a modified series of trainings under its Global Filipino Teachers (GFT) program which covers topics delivered via webinars such as digital literacy, parental support on digital learning, responsible online behavior, effective 21st-century

approaches to early language literacy, and psychological first aid. Globe collaborated with Habi Education Labs, Teach for the Philippines and the Philippine Mental Health Association to ensure that the modules required are within standards of the DepEd and are recognized by the National Educators Academy of the Philippines. These partnerships help teachers in their journey toward improved mental and health awareness, and in gaining essential knowledge skills on digital and blended learning as well as on functional literacy. GFT was launched over a decade ago to equip public school teachers nationwide with skills to efficiently integrate ICT in their teaching strategies and transform ICT tools into instruments of interactive teaching and online collaboration. “Our Global Filipino Teachers program is specifically designed to help our teachers meet 21st-century standards in terms of teaching. The program is even more relevant today with the urgent need to do distance learning. Through GFT, we provide teachers with a higher level of ICT competency, allowing them to deliver lessons to students using digital platforms,” explained Yoly Crisanto, Globe Chief Sustainability Officer and SVP for Corporate Communications. While online distance learning which simulates face-to-face classroom setting is the most ideal alternative to the traditional setup, current reality prevents its full implementation as majority of learners do not have access to the Internet and/or personal computers or smartphones. Thus, the DepEd is addressing the concern through the delivery of print-

ed materials to the students, provision of downloadable lessons, and even the utilization of radio and TV to broadcast lessons. These different modalities may be combined together with online lessons depending on the situation of the students. That said, Globe is helping the DepEd prepare teachers to overcome the numerous challenges of distance learning.

PLDT and Smart

PLDT and Smart, meanwhile, provided the DepEd with a package of digital services to help support the academic sector offer continuous learning amid the challenges of the quarantine. Briones spearheaded the call for support from the telcos in providing free access to DepEd Commons, the department’s online education delivery platform designed as alternative mode for teaching-learning process during class suspensions and other similar circumstances. “In this time of crisis, it is important that we make it possible to overcome this challenge with solid partnerships with the private sector. We are thankful on our partners’ generosity in support of the continuity of public education by providing us free data for DepEd Commons access amid the Covid-19 situation,” Briones said. For starters, access to the DepEd Commons site was made free to students and teachers using Smart even without data load. This gives them access to a multitude of educational resources for use in various grade levels of curriculum. DepEd Undersecretary for Administration Alain Del Pascua explains, “DepEd Commons was designed as a direct solution to give access to online review materials and

Open Educational Resources (OERs) during class suspensions and other similar circumstances.” He said the OERs in DepEd Commons are authored by public school teachers who are subject experts, properly cited and acknowledged. Teachers can retain, reuse, revise, remix and redistribute the content by blending it with a learning management system to deliver a distance learning modality. “We are facing many challenges in ensuring the continuity of education especially in this extremely difficult situation that we are in. In partnership with PLDT and Smart, DepEd is steadily moving forward in bringing educational resources to the teachers and the learners wherever they may be,” Pascua said. The package also includes 10 mother tongue-based literacy apps that can be downloaded for free from Google Play under #LearnSmart. These interactive apps help develop literacy, numeracy and higher-order thinking skills among children from Kinder to Grade 3. “With digital learning becoming more mainstream given the Covid-19 pandemic, online teaching has come to the fore, changing the local educational climate and norms of teaching forever,” said PLDT CRO and Smart President Al Panlilio. “Through this white-listing, concerned parties with Smart subscriptions may continue to log on to the DepEd Commons platform through a device without load credits,” he said. PLDT has also extended its services to include free access to #CyberSmart resources that equip teachers with knowledge on cybersecurity and safety, data privacy and protection,

and combating fake news. To reach out to teachers and students who are unable to go online, Smart is also providing 10 units of the School-in-a-Bag, a portable digital laboratory designed to facilitate continuous learning in times of emergencies and disasters. These services augment the collective bayanihan efforts of the PLDT group and MVP Group of Companies to help government agencies carry out necessary programs to control the spread of the virus and still service the general public. These include the provisioning of emergency hotline numbers and call center facilities for key government agencies such as the UP-PGH, the Department of Health, the Lung Center of the Philippines, and toll-free for calls made by PLDT, Smart, Sun and TNT subscribers to emergency hotline numbers. PLDT and Smart are also providing free Smart Wi-Fi to different Covid-19 facilities, public hospitals and thoroughfares, and white-listed several government and news websites of the Department of Health, the National Task Force-endorsed StaySafe. ph, and the Philippine Information Agency, among others. Recently, the PLDT Group equipped the DOST, AFP and IATF’s RapidPass Project with QR code-scanning powered by Smart postpaid lines and mobile devices. “We believe that technology and education are equalizers of opportunities. As such, this partnership between PLDT-Smart and the Department of Education plays a crucial role in providing fair and equal opportunity in the economic and social mobility of our youth. For our part, PLDT-Smart will continue to play this role vigorously in connecting

and enabling everyone in these trying times,” said Panlilio.

Save the Children

MEANWHILE, Save the Children Philippines held Humanity as One. Protecting. Educating. (HOPE) Online fundraising event in August to support the learning needs of deprived and marginalized children. HOPE Online raised funds to provide educational supplies, agespecific learning modules, and digital devices for some 7,300 learners from poor communities in Caloocan, Navotas, Malabon, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), and Eastern Samar through Project ARAL (Access to Resources for Alternative Learning). Atty. Alberto Muyot, Chief Executive Officer of Save the Children Philippines, said thousands of children face the uncertainty of not being able to go to school or access education under the new learning setup as poverty worsens during the health crisis. “We are thankful to the kindhearted celebrities and individuals for joining the HOPE Online fundraising because their contributions give hope to children and will provide them opportunities to continue their education and have a future,” said Muyot.

Don’t forget the poor, disadvantaged

E-Net Philippines, a network of 130 organizations and partners, called on the government and DepEd to address the needs of the poor and disadvantaged sectors for a safe, inclusive and quality education in the new normal. A Grade 11 indigenous learner, 15-year-old Riza Tahuyan from the Continued on M4

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Thursday, October 8, 2020

Coca-Cola shows the way to water stewardship even in times of crisis

easily access water through the help of the Agos Program’s innovative water systems like a hydraulic ram pump for upland communities; gravity-fed systems that bring water from uphill springs to communities located on lower ground; and rainwater harvesting systems. Alongside the assistance that Coca-Cola provides through these initiatives, part of the mission of the Company is to teach and enable communities to be self-reliant in managing their water resources. Through effective knowledge and technology transfers, continuity and sustainability—as well as maximization of resources—is therefore ensured, long after Coca-Cola and its partners have laid the initial groundwork. Thus, with the installation of water systems and knowledge shared to communities, these communities now have more economic opportunities, increased agricultural productivity, and better sanitation, health, and overall improvement of life.

Returning every drop of water to communities

Aside from giving back to communities, Coca-Cola also returns water to nature by supporting precious watersheds, helping rehabilitate denuded areas, and providing strong support for conservation research and education. A testament to this is the many projects Coca-Cola Philippines has implemented to provide a year’s worth of water supply to more than 5,000 farmers—allowing them to sustain their livelihood while learning to manage their resources. A firm advocate of education as well, Coca-Cola made sure that safe water flows from the faucets of the schools wherein they have built classrooms for their Little Red Schoolhouse project. “We all need water, especially with the important role it plays with health and sanitation. We recognize that water is scarce, which is why Coca-Cola returns every drop of water it uses back to communities and the environment. In addition, we provide education and training to the community members to conserve and manage this vital resource,” said Jonah De Lumen-Pernia, Public Affairs and Sustainability Director of Coca-Cola Philippines.

Instituting water sustainability in bottling operations

ITH everything going on in the world today, it is easy enough to take water, the most basic of needs, for granted. Barely anyone has given a thought to how these problems are affecting the environment and the resources we derive from it. Yet, water’s value as an essential resource is even more significant now as a crucial requisite for sanitation and health preservation. The inescapable reality is that water is integral to the survival of communities which is why better water resource management is far more urgent. Given water’s vital role in the communities where they operate, as well as its beverage production business, Coca-Cola has led an advocacy for responsible and sustainable use of water across its entire operations. This also extends to communities, teaching them to be water self-reliant while enabling ease of access to the resource—evidenced through its water relief efforts and by how Coca-Cola Philippines has replenished an estimated 112% of the water used in the production of beverages last year. Crucially, with an increase in water demand, Coca-Cola reinvigorates this commitment to refresh the world and make a difference in a multitude of ways. “Water will always be a valuable resource, even more during an unprecedented crisis. Our water stewardship and expertise have allowed us to continue being of service to our countrymen in need at a time like this,”

said Ma. Cecilia Alcantara, the Coca-Cola Foundation Philippines President.

Responding to urgent needs in times of crisis

About seven million Filipinos lack access to safe water which puts them at a greater disadvantage now when it comes to hygiene and sanitation. During the height of the lockdowns, Coca-Cola Philippines worked with Water and Life Philippines to provide water subsidies to communities in Cavite, ensuring that water security and community support is made available as sources of livelihood are greatly affected during a crisis. This partnership has been able to successfully provide access to potable water to around 2,000 families. Aside from this, Coca-Cola has always been providing drinking water to affected communities during times of crisis or natural disaster in areas like Taal, Marawi and Eastern Visayas. During the lockdown, Coca-Cola Philippines has also sent out over two million liters of beverage support

to almost 1,500 institutions—including hospitals, non-government organizations, local government units, and national government agencies. These essential beverages, along with food packs, were delivered to households and communities nationwide through the Company’s fleet.

Empowering communities through water access and education

Since 2011, Coca-Cola Philippines through its Agos program has been linking waterdeprived communities in faraway regions with access to potable water and providing knowledge-sharing and educational support

on effective water resource management. As of 2020, the program has successfully helped deliver safe water access to 223,000 Filipinos and counting—responding to sanitation and health needs as well as livelihood concerns. From hiking for hours just to get enough water and worrying about their daily water needs, communities in Barangay Suyo in Sagada, Province; Barangay Inararo in Porac, Pampanga; Barangay Puso and Baranggay Masulog in Negros Occidental; Maribojoc, Bohol; Hinatuan, Surigao del Sur; Lake Sebu, South Cotabato; and more, can now

Coca-Cola’s responsible water stewardship is very much evident in its manufacturing processes. Efficient water use in bottling operations is integral to the way the Company operates, and care is taken to introduce enhancements that ensure water savings initiatives will continue to yield positive results and improve year on year. The Company’s 19 plants across the country lead in sustainable water practices through continued improvements in water use efficiency ratio, where initiatives anchored on Reduce, Reuse, Replenish allow operations to lessen absolute water consumption within manufacturing processes. These initiatives include reusing recovered water for maintenance tasks; and complying with wastewater quality standards of regulatory bodies, so wastewater is properly treated and viable for return to the ecosystem. “Sustainability is embedded in the way we do business—from efficient water use management to the integration of renewable energy in our plants, to recycling,” shared Gareth McGeown, President and CEO of CCBPI. “This is a business imperative—we do things the right way and not the easy way. We want to properly manage our environmental footprint and continue to strengthen our policies to ensure that we have effective systems in place to reduce our environmental impact.” Coca-Cola’s approach to responsible water use ensures that the Company can keep producing its beverages to refresh more people nationwide. But alongside this, the thrust for sustainable water management also ensures that people, the communities they belong to, and the environment around them, are equipped to benefit, survive and thrive.

Thursday, October 8, 2020 M1

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PANDEMIC PROMPTS PEOPLE TO GO SOFT ON PLASTICS, BUT NO ONE’S CONCEDING

By Jasper Emmanuel Y. Arcalas

use must be conserved, and yet the most basic safeguard for preventing Covid infections was also, “wash your hands always and properly.” Thus, many would rather conserve water for their health and hygiene than wash dishes constantly, making plastic cutlery indispensable. But for a country ranked as the third-largest contributor to ocean plastic pollution in the world, a growing consumption of the non-biodegradable product is a huge concern.

N 2019, the President Duterte floated the idea of banning the use of single-use plastic as a solution to the detrimental impact of growing waste to the environment. was the Covid-19 pandemic that changed the world completely and drastically. The need for use of disposable surgical masks was obvious. And so was the need by consumers for disposable cutleries, sando bags, plastics as they order food online or do panic buying in the supermarkets. For most parts of the country, people were bombarded with reminders that water for household

The race continues

UNSPLASH

But little did he—and even the world—know that the proposal could be more critical than ever today. A few months after that pronouncement in November, the world changed in an instant. It was quick that the world's plastic use rose exponentially. It was swift that the world forgot about the environmental risk of plastic and relied on it as if their lives were on the line. Or perhaps it was. After all, it

THE year 2020 did not just mean another year—except it is quite a difficult one—but it meant that the world is running out of time to achieve its sustainable development goals (SDGs) by 2030. One of the SDGs—SDG 12, known as Sustainable Consumption and Production—promotes “resource—and energy-efficient,

Continued on M2

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M2 Thursday, October 8, 2020

PANDEMIC PROMPTS PEOPLE TO GO SOFT ON PLASTICS, BUT NO ONE’S CONCEDING Continued from M1

“Consumer companies face significant cost and performance challenges in finding more sustainable alternatives to plastic. While co-processing is not the perfect solution, it can mitigate the environmental impact of plastic usage,” said CPG president Christopher Po. CPG partnered with Republic Cement in using its recovered plastic waste in cement processing.

sustainable infrastructure, and providing access to basic services, green and decent jobs and a better quality of life for all.” Among the targets of the goal is “to substantially reduce waste generation through prevention, reduction, recycling and reuse,” by 2030. And achieving such a feat entails the cooperation of every global citizen up to multi-billionaire firms. “Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle,” SDG 12.6 reads. And just how huge is the plastic problem of the Philippines before the Covid-19 pandemic? The Global Alliance for Incinerator Alternatives (Gaia) estimated that the Philippines use 164 million pieces of sachets daily. That is about 59.7 billion pieces of sachets annually. Based on the data, Gaia said an average Filipino uses 591 pieces of sachets per year or about 1.64 pieces a day, a “modest figure compared to urban consumption.” Furthermore, Gaia findings showed that the Philippines uses 48.125 million pieces of plastic shopping bags and 45.228 million pieces of plastic labo bags daily. But despite the grim reality, which some has dubbed today as the plastic pandemic, steps, how small they might be, to solve the problem were being done and somehow yielding results, little by little.

No tradeoffs please– Greenpeace

We don’t need to choose one over the other – we can protect ourselves from Covid-19 while protecting the environment. Evidence shows that reusable bags, containers, and utensils can be used safely to dramatically decrease exposure to the virus while not causing harm to the planet.’ – DR. RENZO GUINTO

IN January 2019, beverage manufacturer Nestlé announced globally that it eyes a "waste-free" future wherein none of its packaging, including plastics, would end up in landfills and oceans or as litter. And in less than two years after that gargantuan goal, Nestlé recently announced it has achieved “plastic neutrality” first the first time. In a statement, Nestlé Philippines Chairman and CEO Kais Marzouki said they achieved the milestone for the month of August as the multinational was able to recover 2,400 metric tons (MT) of plastic waste, the same volume they generated during that month. “Nestlé Philippines is the first multinational fast-moving consumer goods (FMCG) company in the country to attain plastic neutrality, as of August, and we commit to do so every month,” Marzouki said. The multinational vowed that it will continue to achieve plastic neutrality every month as it recognizes that plastic leakages into the oceans “has become a pressing issue.” The goal is part of Nestlé’s longterm vision of making its “packaging, including plastics, 100 percent recyclable or reusable” by 2050. “In pursuing this commitment, Nestlé is taking a holistic approach to address the complex and urgent issue of plastic waste,” the company’s statement said. “Nestlé is accelerating its initiatives across three focus areas: (1) developing the packaging for the future, through packaging and delivery innovation and plastic reduction; (2) helping to shape a waste-free future through increased collection and recycling; and (3) driving new behaviors and understanding through solid waste management education,” it added. The concept of plastic neutrality means that an entity is able to recover and remove from the envi-

UNSPLASH

Plastic neutrality

ronment the volume of plastic that it created or manufactured for a specific time. Nestlé said it has expanded its collaboration with other stakeholders, applied key lessons learned from its pilot programs, and allocated appropriate resources to improve its efforts of maintaining plastic neutrality. “With the help of partners who share its vision of a waste-free future, such as Republic Cement, CEMEX Holdings Philippines, Plastic Credit Exchange, and Pure Oceans, the company commits to maintain neutrality,” it said.

Not the only one

HOWEVER, Nestlé is not alone in achieving plastic neutrality in the corporate world. In a recent statement, Shakey’s Pizza Asia Ventures, Inc. (PIZZA) said it has signed an agreement with Plastic Credit Exchange (PCEx) for the certification of its plastic neutrality. In doing so, Shakey's, the Philippines’ leading chained fullservice restaurant, would become the first food service company in the country to pursue such thirdparty verification for a plastic offsetting initiative. PCEx is a non-profit organiza-

tion that helps businesses offset their plastic footprint through its network of partners that recover, process, and recycle plastic waste. PIZZA said it celebrated its first year of being 100 percent “plastic neutral” earlier this year, following a push in 2019 to be plastic-neutral by 2020. “The plastic neutral certification takes this initiative to the next level by engaging a third-party audit and verification which will follow a set of global standards for plastic neutrality,” it said. The company said it has banned the use of plastic cups and straws in its workplace and has extended to its guest the opportunity to help the environment via an “opt out” tick box in its online delivery platforms. The options allow guests to automatically exclude plastic utensils from their delivery orders, the company added. PIZZA said its remaining plastic usage is being offset by “recovering and recycling an equivalent amount of plastic, allowing it to achieve a net zero plastic footprint.” “By our calculations, we have achieved 100-percent plastic neutrality already but aim to take this initiative to the next level by working towards the third-party certi-

fication of our neutrality,” Vicente L. Gregorio, President and CEO of PIZZA, said. “This is another stepping stone towards our vision of becoming a more responsible food company. In spite of the more challenging business environment, we remain committed to integrating sustainability in the way we run our business and will continue in this direction for the betterment of our company and all its stakeholders,” Gregorio added. PCEx Marketing and Strategy Director Oliver C. Sicam said their group has “diverted more than 6 million kilograms of plastic waste from the environment and is making environmental protection real and sustainable.” But it was not only PIZZA that became “plastic-neutral” last January 2020. Century Pacific Food (CNPF), another firm under the Century Pacific Group, claimed it had achieved the feat. CNPF, the company behind household names Century Tuna, Argentina, 555, and Birch Tree, recovered the amount of plastic equal to what it uses and converted it into energy, CPG said. This energy then serves as an alternative fuel in producing cement, replacing coal, it explained.

IN June, Greenpeace Philippines made a call to local government units to strengthen their measures against single-use plastics, such as banning them. The group noted that there has been a “notable increase” in the use of single-use plastic amid the Covid-19 pandemic. The group made the call following a global statement signed by over 115 health experts across the world “assuring the public safety of reusable during the pandemic.” The group noted that such a statement could encourage consumers to use more single-use plastic during these trying times and could be neglecting its ill effects to the environment. Dr. Renzo Guinto, a Filipino physician and public health expert on health, climate change, and the environment, said consumers should not turn a blind eye to one problem just to solve another. Guinto added that consumers could avoid using single-use plastic and instead use reusable items which are also deemed safe during this pandemic. “Protecting the public’s health must include maintaining the cleanliness of our home, the Earth,” he said in a statement. “We don’t need to choose one over the other–we can protect ourselves from Covid-19 while protecting the environment. Evidence shows that reusable bags, containers, and utensils can be used safely to dramatically decrease exposure to the virus while not causing harm to the planet,” he added. Greenpeace said LGUs have been considering easing their policies on single-use plastic following the rise of demand for the product during the Covid-19 pandemic. Greenpeace cited the case of Quezon City which mulled over “the deferment of the ban on single-use plastic/disposable material.” However, the group said, the rise of plastic waste during the pandemic, including single-use gloves, protectors and packaging, “may instead be increasing the risks and impacts on our communities and citizens, especially for frontliners such as sanitation workers and fisherfolk.” “There has been a growing call for a better normal after the pandemic and that should include dramatic reductions in plastic waste. Single-use plastic is not inherently safer than reusables as it will cause additional public health concerns once discarded,” Greenpeace Campaigner Marian Ledesma said. “As the government gradually allows businesses to reopen, reusable systems and single-use plastic bans must be implemented to ensure the protection of the environment, workers, and consumers,” Ledesma added.

Legislation

EVEN before the Covid-19 pandemic moved the hands of time, lawmakers have been pushing for various bills that seek to solve the plastic pandemic. Most of the legislative mea-

sures are focused on the phasing out and prohibiting the manufacture, importation, sale and use of single-use plastic products. Some are event tougher: banning the production and the usage of single-use plastic products nationwide and providing penalties for violating such policy. Maybe the idea of banning single-use plastic is not bad at all. But it was crystal clear that Covid-19 showed what the world needed the most to resolve the plastic pandemic: not just a ban but a long-term plan. Oone of the measures filed at the House of the Representative is the bill by Cagayan de Oro 2nd District Rep. Rufus B. Rodriguez about extended producer responsibility or EPR. The bill defines EPR as “an environmental policy approach in which a producer's responsibility for a product, specifically its packaging, is extended to the post-consumer of end-of life stage of a product’s life cycle.” Under the bill, all producers would be required to submit an annual EPR scheme that would include their targets, producer responsibility organization (PRO), scope, among others. The PRO is a legal entity that will undertake the recovery of plastic wastes on behalf of producers, according to the bill. The bill mandates that producers shall annually collect plastic waste in a volume not less than a ertain percentage of the plastic they sold in the first year of the effectivity of the law. And the responsibility shall increase by 10 percent for every succeeding year until it reaches 100 percent collection requirement by the 10th year. The Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) shall be responsible in accrediting PROs for the implementation of fthe law. Furthermore, the bill provides penal provisions for erring plastic producers. The bill proposed that violators shall pay a fine of equivalent to 2 percent of their annual gross turnover for failure to establish an annual EPR scheme and failure to meet the volume targets in any year. Producers would also be fined the equivalent of 5 percent of its gross turnover for underdeclaration of the volume of plastic products covered by the bill or an over declaration of the volume of plastic waste collected by a PRO. Worse, the business permit of the erring producer and PRO shall be cancelled and the corporate officers of both the company and PRO shall be subject to criminal prosecution, according to the bill. “This bill seeks to supplement RA 9003 (Solid Waste Management Act) by addressing the problem of collection of plastic waste,” Rodriguez said in the explanatory note to House Bill No. 6279. “It will set up a system by which private companies which generate plastic will be responsible to collect an amount of plastic waste in proportion to the plastic generated by them under the “producer pays” principle,” he added. Indeed, the pandemic has cut both ways – while forcing many people, including LGUs, to step back from tougher policies on plastics to cope more swiftly with the emergency, it has also focused yet again on the need to precisely keep pushing back against the flood of plastics as a continuing long-term goal. Like any crisis, Covid-19 should compel everyone to think, constantly, of seeking a better new normal.

BusinessMirror

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Thursday, October 8, 2020

Nestlé Philippines takes holistic approach as it accelerates initiatives to tackle plastic waste

REPUBLIC Cement President and CEO Nabil Francis (left) and Nestlé Philippines Chairman and CEO Kais Marzouki inspect plastic waste prepared for co-processing.

BARANGAY staffer Mercedes Balangui, 52, at the Barangay Ugong, Valenzuela City materials recovery facility with a collection of plastic wastes under May Balik! Sa Plastik!

ODAY, the problem of plastic waste is an increasing environmental concern. The gravity of the plastics situation has prompted the United Nations to work toward a treaty addressing it. In 2015 a report by the Ocean Conservancy and the McKinsey Center for Business and Environment said the Philippines is the third-largest source of plastic trash that ends up in the oceans, after China and Indonesia. According to the report, annually the Philippines generates 2.7 million tons of plastic waste with 20 percent or 540,000 tons of it leaking into the oceans. Focusing on this situation is an urgent priority for Nestlé Philippines; moreover, the company continues to accelerate its initiatives to tackle plastic waste. In January 2019, Nestlé globally articulated its broader vision for a waste-free future, that none of its packaging, including

plastics, ends up in landfills and oceans, or as litter. Just over a year and a half later, Nestlé Philippines Chairman and CEO Kais Marzouki announced that the company had reached its latest milestone in pursuit of that vision by achieving plastic neutrality for the months of August and September. “As an urgent initiative, Nestlé Philippines has succeeded in collecting and diverting from landfills and oceans the amount of plastic equivalent to what we generated from our packaging last August and September, thus making us plastic neutral,” Mr. Marzouki said. During these months, the company recovered 4,763

COLLECTED waste in Batangas, where Nestlé Philippines and the marine conservation social enterprise Pure Oceans have entered into a partnership to design, procure, and operate a prototype boat called Basura Bangka that will transport plastic waste from coastal and island communities to recycling facilities.

metric tons of plastic waste. “Nestlé Philippines is the first multinational fast-moving consumer goods (FMCG) company in the country to attain plastic neutrality, and we commit to do so every month, ” the CEO said. The company manufactures brands including BEAR BRAND, MILO, NESCAFÉ, COFFEE MATE, MAGGI, NIDO, and CHUCKIE. Nestlé Philippines has expanded its collaboration with other stakeholders, applied key lessons learned from its pilot programs, and allocated appropriate resources. With the help of partners that share its vision of a waste-free future, the company is commited to maintaining neutrality. nNestlé Philippines, Inc. and Republic Cement are collaborating for the collection and co-processing of soft plastic wastes in the latter’s cement kilns, significantly expanding an initial agreement signed in 2019; nJust before the COVID-19 quarantine was imposed in the country, a partnership agreement to divert plastic waste laminates away from landfills in Cebu province by collecting and co-processing them in cement kilns was

NESTLÉ Philippines is identifying alternative materials to make its packaging more sustainable. Early this year, the company started its transition to the use of paper straws in its locally manufactured read-to-drink products that will eliminate the use of 130 MT of plastic straws by end of year.

signed by Nestlé Philippines and CEMEX Holdings Philippines; nIn another step toward reducing its plastic footprint, Nestlé Philippines has entered into an agreement with Plastic Credit Exchange (PCEx) to collect soft plastic waste from BASECO in Tondo, Manila, Payatas in Quezon City, and Rodriguez in Rizal province; nThe marine conservation social enterprise Pure Oceans and Nestlé Philippines have formed a partnership to design, procure, and operate a prototype boat called Basura Bangka to transport plastic waste from coastal and island communities in Batangas to recycling facilities. Basura Bangka is an innovative mechanism to help address the plastics situation in geographically disadvantaged coastal and island communities that do not have access to conventional waste management solutions.

Accelerating the journey with its firsts

GLOBALLY, the company is committed to making its packaging, including plastics, 100% recyclable or reusable by 2025. In pursuing this commitment, Nestlé is addressing the complex and urgent issue of plastic waste by pursuing initiatives holistically in three focus areas: (1) developing the packaging for the future, through packaging and delivery innovation and plastic reduction; (2) helping to shape a waste-free future through increased collection and recycling; and (3) driving new behaviors and understanding through solid waste management education. Under these three focus areas, Mr. Marzouki cited first-ever accomplishments of Nestlé Philippines in tackling plastic waste: nThe country’s first food and beverage company to shift to paper straws. Nestlé Philippines is identifying alternative materials to make its packaging more sustainable. An equally important milestone is its full transition to the use of paper straws in its locally manufactured ready-to-drink or RTD products that will eliminate the use of 130 metric tons of plastic straws by end of year; nThe country’s first citywide soft

plastic waste collection project. In June 2019, Nestlé Philippines piloted May Balik! Sa Plastik! (MBSP), which recovered post-consumer sachets, used beverage cartons, and other soft plastics, in partnership with Valenzuela City. In a significant achievement, the project successfully put a tangible value to soft plastic waste, which previously had no worth. Learnings from MBSP have contributed to the company’s achievement of plastic neutrality; nThe country’s first solid waste management (SWM) education modules to be rolled out in over 10,000 public schools nationwide. Information, education and communication on solid waste management are important in achieving the goal of a waste-free future. Thus, Nestlé Philippines has developed SWM modules integrated into its Nestlé Wellness Campus program. The modules can be used by Grades 1 to 10 students. In other initiatives, Nestlé Philippines has started to shift its plastic packaging to materials designed for recycling, piloted refilling stations, and is upcycling waste plastic laminates into school chairs.

Supporting Extended Producer Responsibility

FRESH from achieving plastic neutrality in the country, in another major move forward, Nestlé Philippines is advocating the establishment of a localized and cost-effective Extended Producer Responsibility or EPR system for plastic packaging waste. EPR is an environmental policy approach, and it takes the form of a scheme, in which the responsibility of a producer (manufacturer or importer) for a product is extended to the post-consumer stage of the product’s life cycle. The producer assumes responsibility for managing the disposal of products after consumption, whether financial or physical, or both. In practice, a producer’s responsibility ends when its products are purchased and consumed. What happens to the waste afterwards is typically left for municipal waste management systems to cope with. A legislated EPR scheme in the country targeting plastic waste will see producers being primarily

involved in the collection and disposal of their residual waste. Initiated in the 1980s, EPR is practiced in various countries including those in Europe and Asia that have laws mandating it, requiring increased private sector participation in managing the waste stream. In an EPR scheme, an entity called a Producer Responsibility Organization (PRO) is usually formed by producers and held responsible for retrieving packaging from the market. Transaction costs are paid by obliged parties. The PRO becomes accountable for spending funds paid to it and ensures waste is collected and diverted away from landfills and water. In the Philippines, a PRO can be formed to deal, for starters, with residual plastic waste. Several bills have been filed in Congress mandating EPR, among which is HB 6279 by Congressman Rufus Rodriguez (Cagayan de Oro, 2nd District). An EPR scheme aims to increase collection and recycling rates in the country. The increased availability of material collected should encourage recyclers to use the plastic to make new packaging materials or manufacture other products. For example, plastic waste is now used to make school chairs, eco-bricks, and even roads. It may also be used as an alternative fuel to coal. “At Nestlé, we strongly believe that an EPR scheme for plastic waste will support and enhance a self-sustaining waste management system that will integrate the informal sector, as it incentivizes collection and recycling rates, and the development of eco-design. EPR can be made possible through multi-stakeholder collaboration, building on cooperation as seen in the partnerships that have enabled us to achieve plastic neutrality,” said Mr. Marzouki. “Finally, tackling the challenge of plastic waste cannot be successfully achieved by a single or linear solution. We must look into different options both upstream and downstream. We need to take a holistic approach as we continue accelerating our initiatives to tackle plastic waste,” he concluded.

M4 Thursday, October 8, 2020

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A BROADER APPRECIATION FOR A MEANINGFUL ANNIVERSARY

S a result of the still ongoing COVID-19, 2020 has been a difficult year for both big and small business enterprises.

Despite the numerous challenges that continue to come our way, we have soldiered on, delivered our usual ser v ices and in many cases, have even managed to somehow enhance our operations given the circumstances. We at Business Mirror, are humbled by your continuous support and would

like to pay tribute to you, our advertisers for making our 15th year celebration a lot more meaningful. With your support, we were able to maintain the high qualit y of our news reportage and continue to fulfill our promise of delivering a broader look at today’s business. Cheers for the next 15 years!

THE IMPOSSIBLE IS POSSIBLE:

Covid shut down schools, but learning goes on Continued from L3

Manobo tribes of North Cotabato had worried that their teachers or parents won’t be able to bring the modules as their house is far from their school. Professor Flora Arellano, E-Net president, noted that, “there are still 3.3 million students ‘missing’ or who had yet to enroll for this school year, as DepEd reported an enrollment of only 24.9 million students (representing 98 percent in public schools and 48 percent in private), compared to 27.7 million enrollees last year.” “Those who were unable to enroll, including learners with disabilities, out-of-school youth, Muslim and indigenous learners, and the ‘last mile’ learners, they are the marginalized, excluded and vulnerable sectors of the education system; and will surely be left behind in the new normal,” added Arellano. Alex Tahuyan, uncle of Riza, explained that most indigenous parents were unable to finish schooling and are focused on their livelihood; thus it would be difficult for them to assist their children under the online, blended and distance learning system for this school year. Grade 7 student and Muslim learner Jannessah Odin, from Pikit, Cotabato, in Mindanao, explained that most Muslim learners cannot afford the technology and have no access to the Internet; and asked from the government for more funding for madrasah education programs in order to create opportunities for more Muslim learners to access education. Public-school teacher Roland del Rosario also pointed out that the government implementation of primary health protocols for public-school teachers to carry out the Learning Continuity Plan remains “confusing.” He asked for a budget for teacher’s minimum health standard requirements, hazard and hardship pay, for education frontliners.

Weathering this ‘storm’

AN estimated 4,488 private school teachers, according to the DepEd, were left jobless with the closure of 865 private schools this year. “We hope for any assistance that can be extended to them, the teachers and no-work-no-pay non-academic personnel, during these uncertain times,” said Dr. Joseph Jovellanos, from the Samahang Manggagawang Pilipino-National Alliance of Teachers

and Office Workers (SMP-NATOW). The group then urged the government to address the financial, technical and legislative challenges in the education sector while resolving the effects of the pandemic, including unemployment, underemployment, lack of resources and opportunities, limited access to materials needed for distance learning like Internet connection and gadgets, lack of teachers and teacher support, safety, among others. The DepEd has promised to provide financial assistance to private elementary and high schools nationwide after some of them were badly affected by the pandemic, resulting in low enrollment. DepEd Undersecretary Jesus Mateo said that aid grant will be provided in order for private schools to survive. The Coordinating Council of Private Educational Associations (Cocopea) has revealed that private schools are facing an estimated revenue loss of P55.2 billion, while some schools are already closed. The DepEd had conducted a survey from September 25 to 28 on private school closures, displaced personnel and affected learners in SY 2020-2021. “The response will be used for the drafting of the implementing guidelines of Republic Act 11494 or the Bayanihan to Recover As One Act,” the DepEd said. With students set to remain at home for the rest of the school year, the Affordable Private Education Center Inc., also known as APEC Schools, has developed initiatives such as APEC Flex to give students the capacity to learn through a homeschool curriculum. The program offers parents flexibility around their kids’ scheduling, learning pace, modes, and more. “What sets APEC’s homeschool program apart from others are the project and experiential-based design of the courses, as well as the additional level of support given to students through subject-matter experts and course coordinators,” remarked Mark Sy, APEC Schools’ chief academic officer. Recently, APEC enlisted Globe as its partner for its Online Learning Program. The telco is positioned to transform face-to-face learning into a seamless digital experience through the provision of Google Chromebooks for students. “The pandemic has brought to

GRADE-SCHOOL teacher Emie Viscaya of Noah’s Ark Angel Learning School Center in Manila briefs parent Ivy Garcia on the conduct of online learning. ROY DOMINGO light the harsh reality about accessibility in the Philippines. Many communities still do not possess the digital tools they need to make education and work possible,” shared Joie Lopez, chief executive officer of APEC Schools. “Our collaboration with Globe allows our institution to address this prevalent issue by providing students with access to affordable home Internet, as well as Chromebook laptops for rent,” he added. APEC Schools—a subsidiary of iPEOPLE, a formidable partnership between the Yuchengco Group of Companies and Ayala Corporation—has built 22 school branches across the Philippines, with more than 15,000 learners in both junior and senior high school. Together with Globe, the institution’s pivot toward online learning has allowed its vision of centering educational practices on technology to come full circle. APEC’s modern experience-based approach to learning enables students to seamlessly adapt to a digital world, making them perfectly placed to take on the new normal. APEC uses Google Chrome Management Console furnished by Globe to make it easy to distribute learning applications and materials across students’ Google accounts. With this webbased application and the availability of Google Chromebooks, students and parents can freely use Google Classroom and G Suite tools to participate in online classes, fulfill assignments, and seek assistance from teachers anytime, in the safety of their homes. On the other hand, a Makatibased school iAcademy has ramped up its efforts in fully implementing flex-

ible remote learning for its students to ease its transition to what might be the new normal for educational institutions.

Technology fast-tracked

EVEN before the pandemic, iAcademy has already been implementing technology-enabled learning by utilizing online platforms and tools like NEO and Google Classroom to deliver lessons. With the current health crisis and the policy against face-toface classes, iAcademy decided to roll out its new approach called GOAL or Guided Online Autonomous Learning. “When the pandemic broke, all schools and universities were forced to expedite the use of technology to deliver instruction to ensure that learning is not disrupted. For us, we saw this challenge as an opportunity to step up our game. iAcademy will implement an online distance learning program called GOAL or Guided Online Autonomous Learning. GOAL is our online distance education program designed to provide a flexible, relevant, balanced and collaborative learning experience to our students,” said Cecilia Sy, iAcademy OIC vice president for academic affairs. For Jake Aragon, iAcademy senior high school principal, parents and students alike can still be assured that the delivery of quality education is possible even through flexible remote learning. “Quality education will still be achieved through GOAL because our teachers will continue to share their expertise through online channels,” said Aragon.

Instructors and professors can also effectively assess a student’s performance in a flexible learning setup through the careful use of grading criteria and rubrics that measure learning. “Also, we will allow students to create projects anchored on their voice and choice. There will be a focus on learning styles. The administration of exams will also be done online; in addition, projects that will be required as final assessments will be designed according to what is practical and meaningful for students,” he said. As for subjects with lessons that were usually done in labs, iAcademy assures that these can be delivered effectively using the distance learning approach. “We revisited the curriculum and identified subjects that can be delivered online without watering down its content. There are lab subjects that require only a regular desktop or laptop and reliable Internet connection to learn the course. The students can learn the concepts and skills through live demonstrations or tutorial videos,” Sy said. iAcademy is one of the country’s hubs for technology-focused learning. It currently offers programs under the School of Computing that allow its graduates to work freelance.

Parents-Teachers Associations

FROM establishing radio stations to committing to their roles as key stakeholders, the Parents-Teachers Associations (PTAs) of various regions delivered initiatives to support distance learning in their respective schools in preparation for the opening of SY 2020-2021. Cauayan, Isabela, General PTA (GPTA) president Edmund Cardona reported the role parents played in their community, setting up a school radio laboratory, Radyo Edukalidad, to ensure that 21 far-flung barangays of their hometown can still maximize the schools’ radio-based instruction. Cardona said that GPTA participated in the Brigada Eskwela initiative of schools. They contributed in the maintenance and sanitation of school facilities, and establishment of Covid prevention and mitigation structures. Meanwhile, Atty. Ronald Perez, Federation PTA (FPTA) president of SDO Baguio City, said they conducted seminars to capacitate parents with new skills and knowledge to adapt to

the distance learning setup through the Parents Academy. The FPTA of SDO Antipolo City highlighted the efforts of their school parents to support the implementation of BE-LCP. They assisted in school-based planning and crafting of the LCP as well as the pilot testing and actual distribution of SLMs, according to Antipolo FPTA president Ma. Bonnie Corañes-Manlunas. Manlunas and Perez also drew attention to the major role of parents in instilling values like honesty in their children in a distance learning setup. “For us, we are really advocating the GMRC [Good Manners and Right Conduct]. We are also training the parents not to meddle in the affairs of the children considering that they need to learn and we, the parent partner ,as effective learning continuity facilitators. And we really would like to advocate the GMRC,” Perez added.

More challenges

INTERVIEWED a few days before D-Day, Briones sounded upbeat but certain there would still be “new challenges” on October 5. “There will also be new challenges. Because everything is constantly changing. Just like what’s being said here: the only constant in life is change, so by October 5, there might be other challenges which will emerge and these will be responded to,” she said. At least, as far as the challenges they went through for the opening of classes are concerned, Briones can confidently say they responded with every means possible, in a timely fashion. “So by October 5, as of October 5, we will already be ready. But if there are other challenges which will emerge… which we cannot solve by issuing memoranda and circulars and so on. But we can only think of ways by which we can respond,” she added. Some critics had heckled Briones for claiming victory, but it is clear what she meant to hold up for emulation— the collective, can-do spirit that made it possible to allow millions of children to “continue education, whatever challenges we are facing. Education will continue or children will continue learning or parents will continue supporting us. Our government, our teachers, all of us are involved in this effort and this will be the biggest victory of all at this time of the pandemic.” It literally took a village to help each child, and the hand-holding continues.