DOF populist pension fund bills’ risks ‘Closelists borders, cut Omicron exposure risk’
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HE Department of Finance By Cai U. Ordinario (DOF) expressed the hope that @caiordinario the implementation of Philippine Financial Reporting Standards LOSING the country’s borders (PFRS) 4 will enlighten lawmakers is one of the most immediate about state pension funds. courses of action the govern Finance Secretar y Carlos G. ment must take to prevent the latDominguez III said this after memest Covid-19 variant, Omicron, from bers of the press asked him about the reaching Philippine shores, accordpossible impact on the Government ing to local economists. Service Insurance System (GSIS) T he new var iant is a threat, fund life of “populist” bills filed in e s p e c i a l l y w it h t he hol id ay s Congress. coming up and more foreigners PFRS 4 is the current and interim being a llowed to travel to the accounting standard imposed on inPhilippines, De La Sa lle Universurance entities in the Philippines. It sit y economist Mar ia Ella Oplas was adopted from the International told BusinessMirror. Financial Reporting Standards or The holidays usually bring in IFRS, which provides guidance on Overseas Filipino Workers (OFWs) the proper financial accounting of who are eager to spend Christmas
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insurance contracts. with their loved ones, while for “I hope the 2020 audited F/S (Fieigners living in temperate regions nancial Statement) which is now usually want to relax in tropical compliant with PFRS 4 provides countries like the Philippines. This enlightenment to the legislature,” year’s influx of OFWs is expected to Dominguez told reporters. be heavier since many of them were Among the bills filed in Congress unable to come home for the holidays is the lowering of the compulsory rein December 2020. tirement age of GSIS members to 55 “My recommendation is to protect years old from the current 65 years the borders. Do not allow people with old. a history of travel to countries with Based on the base case estimates positive cases to enter,” Oplas said. in the Fiscal Risks Statement for “We should be more restrictive. [We 2022, the GSIS Fund Life Scenarios have to be] more protective in terms showed the optional retirement of 60 of our measures.” years old and the compulsory retireOplas said that while this will be ment of 65 will lead to October 2041 a setback to some industries, this as the end of the GSIS fund life. is a fair measure considering that However, under Scenario 1— this could help prevent placing the when optional retirement is adjusted country in another strict lockdown,
Monday, December 6, Monday, November 29,2021 2021Vol.Vol.1717No.50 No.52
to 56 while keeping the compulsory which, she said, the economy can no retirement age at 65 years old would longer afford. mean GSIS fund life will end in No“It is better that we do protective vember 2038. preventive measures than get ex This scenario, which also assumes posed again. We have a lot to lose,” that 100 percent of those aged 56 Oplas said. “We should do it now so to 59 will be subjected to optional that we can open just before Christretirement, will require additional mas. If it gets contained, we can open reserve requirements of P332.36 it again.” billion. Ateneo Center for Economic Re Scenario 2—when those aged 56 search and Development (ACERD) to 59 optionally retire by assuming Associate Director Ser Percival a 50 percent availment—would spell K. Peña-Reyes said closing the an end to fund life by May 2039. This country’s borders would be effecrequires a lower additional reserve tive but should still adhere to the requirement of P255.37 billion. standards set by the World Health “Lowering the optional retireOrganization (WHO). ment age from 60 to 56 while mainWhat is needed, Peña-Reyes told taining the compulsory retirement this newspaper, is for travel restricage at 65 would decrease the fund tions to be put in place swiftly and
life by about 2 years and 11 months for government to be proactive in for Scenario 1 and about 2 years and imposing them. 5 months for Scenario 2,” the report Previous instances when the from the Bureau of the Treasury country had the opportunity to imstated. pose travel restrictions did not pre “Any lowering in the retirement vent the spread of Covid-19. That was ages, or any benefit enhancement mainly because the decision was not for that matter, especially those made immediately, he said. involving pensions which are long“Kung papatay patay [If we’re term liabilities, would increase slow] and we get caught flat-footcosts. Such costs will necessarily ed, [that’s risky] We were too rebe absorbed by the program, makactive instead of proactive before. ing the program more expensive We should learn from that,” Peñafor those members who will still Reyes said. “It’s a delicate balancing be contributing, as they will bear act. We need to push testing and the brunt of the costs; and for the tracing to be properly informed GSIS as administrator, since it will of our decisions. Blanket/shotgun increase the SIF’s unfunded liabiliapproaches could have dire conseties,” the report explained. quences on the economy.” Continued on A4 See “Omicron,” A2
PERMANENT TARIFF CUTS NATL GOVT BORROWINGS FORMEAT, 10 MOS DIP TO P2.75T ON FEEDS PITCHED n n
P25.00 P25.00nationwide nationwide||22sections sections18 20pages pages||
By Jasper Emmanuel Y. Arcalas By Bernadette D. Nicolas
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Hotels Omicronsee risk spurs revival happier of quarantine Christmas rules in PHL this year
@jearcalas @BNicolasBM
& Cai U. Ordinario @caiordinario
HE national HE government government’s must lower tariffs gross on meat and feed borrowings as of products permanently end-October shrank and allocate revenues from these imported by almost 6 percent goods to boost domestic year-on-year to production in order P2.75 trillion. to make food items,
By Samuel P. Medenilla
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particularly meat, cheaper forfrom Filipinos, Latest data the Bureau of the Treasury showed experts said. that the govern-
ment’s gross borrowings during the 10-month period fell by 5.99 percent Monetary Board member V. from P2.92 trillion a year ago. Bruce J. Tolentino told the BusiWith only two months left for nessMirror that the tariff reducthis year, the latest figure is already tions on pork imports must be made equivalent to 89.6 percent of its permanent as part of a proposed P3.07-trillion borrowing program. livestock development bill that Broken down, gross domestic borseeks to modernize the country’s rowings from January to October meat production. settled at P2.23 trillion, down by Tolentino explained that tariff rev5.08 percent from P2.35 trillion enues from livestock imports must be in 2020. plowed back to domestic industries to The bulk of the amount was help them improve productivity and sourced from Fixed Rate Treasury lower production costs. Bonds (P1.19 trillion), followed by “I believe that they should be short-term borrowings from Bangincluded in the discussions for the ko Sentral ng Pilipinas or BSP (P540 livestock development law. Look at billion), Retail Treasury Bonds/Prethe total tariff revenues coming from myo Bonds (P463.3 billion), Retail livestock and that should go all to the Onshore Dollar Bonds (P80.84 bildomestic livestock sector,” he said. lion). In the same period, there was “This way it is clear where the also a net redemption of Treasury funds for the program are coming Bills amounting to P43.94 billion. from,” he added. Net debt redemption means Tolentino noted ongoing discusthere were more debts repaid comsions between the legislative and pared to the amount borrowed durexecutive branches of the governing the period. ment to pass a livestock develop Meanwhile, gross foreign borment law in the current Congress. rowings in the same period also Sen. Cynthia A. Villar, who heads contracted by 9.7 percent to P518.7 the Senate Committee on Agribillion from last year’s P574.4 billion. culture and Food, has been vocal This was raised through global about her intentions to craft and bonds (P146.17 billion), program sponsor a bill creating a livestock loans (P139.98 billion), euro-dedevelopment fund akin to the sixnominated bonds (P121.97 billion), year rice competitiveness enhancea project loan (P86.41 billion), and ment fund (RCEF) created by the yen-denominated samurai bonds rice trade liberalization law. (P24.19 billion). See “Tariff cuts,” A2 See “Borrowings,” A2
@sam_medenilla
PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. The country will celebrate the 158th birth anniversary of Filipino revolutionary hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO
OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND
CATHOLIC devotees attend the first Sunday mass for December at the Quiapo Church in Manila. The annual grand procession of Black Nazarene devotees “Traslacion” will be suspended for the second consecutive year due to the pandemic. NONIE REYES By Jasper Emmanuel Y. Arcalas
dating its registry following the enactment of the Coconut Farmers and Industry Trust Fund law. Rosales explained that about 500,000 coconut farmers and Authority (SBMA) officials conworkers were added to the PCA’s firmed on Sunday. 2018 list that had about 2.5 million For the first time here, two coconut farmers and farm workers. Philippine Airlines (PAL) aircraft The PCA’s next step is to conarrived within two hours of each duct an exclusion-inclusion proother on Sunday to bring home two cedure by making the updated more batches of OFWs from Abu farmers’ registry public, providDhabi and Dubai, both cities in the ing everyone the opportunity to United Arab Emirates (UAE). check the veracity of the list, Ro The recent arrivals brought the sales added. OFW flights via Subic to a total of “The list will be posted in public 42 and the passengers coming in spaces where people can easily see
them. This allows everyone to see who are listed in the registry and if farmer doesn’t see his name then he shall coordinate with the PCA immediately,” he explained at a recent through the Subic airport since dialogue with coconut farmers. July this year to a total of 11,410. “On the other hand, if people SBMA Chairman Wilma T. would see names on the list and Eisma said at least 10 OFW flights they think they are not coconut to the Subic Bay International farmers or their details are incorAirport (SBIA) have been schedrect, they can report it to the PCA uled this month under the govfor immediate action,” he added. ernment’s repatriation program The PCA official noted that despite concerns about the virus the completion of the initial list variant spreading in some African of coconut farmers registry would and European countries. be just in time for the expected “OFWs continue to be repatriated rollout of coconut levy-funded
programs as President Duterte is expected to sign the industry development plan in early 2022. Rosales said the PCA will not stop updating its list of coconut through Subic, and everything’s as farmers and enjoined them to regnormal as when the program started ister in order to reap the benefits here in July,” Eisma said on Sunday. of the decades-long idled coconut “We can be assured that no paslevy fund. “We will not stop at 3.1 sengers will be brought here from million. We hope that more indiany red-listed country because viduals will register in our coconut the government has prohibited farmers registry,” he said. the inbound international travel The updating of the coconut of all persons from red-list areas farmers registry is mandated by regardless of vaccination status,” Republic Act (RA) 11524 or the Eisma added. Coconut Industry Trust Fund Act. See “OFW repatration,” A2
OFW REPATRIATION CONTINUES VIA SUBIC AIRPORT
@jearcalas
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ORE than 3 million coconut farmers and By Henry Empeño workers are now regisCorrespondent tered with the government’s reg istry, which serves as the basis UBIC BAY FREEPORT— for the number of people to be Even as travel restrictions covered by the utilization of the were imposed by some counP75-billion coconut levy fund. tries due to the emergence of the Philippine Coconut Authority latest Covid-19 variant Omicron, (PCA) Deputy Administrator Roel the repatriation of overseas FilipiM. Rosales said about 3.11 million no workers (OFWs) will continue coconut farmers and farm workat the Subic airport here until the ers have been registered with the yearend, Subic Bay Metropolitan government since it started up-
PESO PESO EXCHANGE EXCHANGE RATES RATES nn US US 50.4010 50.4600
See “3-M farmers,” A2
By Ma. Stella F. Arnaldo
NTER NATIONA L concerns @akosistellaBM over the possible spread of the Special to the BusinessMirror more infectious Omicron Co vid-19 variant prompted the govOTELS especially in Meternment to reimpose mandatory ro Manila are projectfacility-based quarantine for all ing a happier Christmas arriving passengers in the country. this year with revenues coming Acting Presidential spokesperfrom longer stays by balikbayans son Karlo B. Nograles announced (homecoming Filipinos) and social on Sunday that the Inter-Agency gatherings. Task Force for the Management “ The change in quarantine of Emerging Infectious Diseases g uidelines w i l l help improve (IATF) suspended the implemenoccupancy and to some extent, tation of its Resolution No. 150revenue of our hotels,” said PhilA (s.2021), effectively imposing ippine Hotel Operators Associastricter protocols for all inbound tion executive director Benito C. travelers. Bengzon Jr. in a Viber message To note, IATF Resolution 150to the BusinessMirror. “Even A had allowed fully vaccinated w ith the quarantine requirenon-visa travelers from Green List ment, we remain optimistic that areas to enter the country withthis will not discourage balikbayout the need for facility-based ans from coming home for the quarantine as long as they secure holidays as many of them are negative Reverse Transcriptionfully vaccinated and will want to Polymerase Chain Reaction (RTreunite with their loved ones,” PCR) test within 72 hours prior he added. to their departure. Due to the gradual spread of “Except for countries classified the Covid-19 Omicron variant as ‘Red,’ the testing and quarantine globally, the Philippine governprotocols for all inbound internament has banned flights from tional travelers in all ports of entry so-ca l led Red List countr ies, shall comply with the testing and while international arrivals from quarantine protocols for ‘Yellow’ countries on the Green and Yellist countries,” Nograles said, citing low Lists, are required to take an the provision of IATF Resolution RT-PCR test 72 hours prior to deNo. 151-A. parture. With a negative result, He noted Hong Kong, which has on arrival in the country’s major confirmed a case of the Omicron gateways, they must quarantine variant, will also fall under the Yelfor five days in a governmentlow list countries. accredited hotel if they have been The suspension of the rules for fully vaccinated, or seven days if “Green List” countries will be in they are unvaccinated or partially effect from November 28, 2021 to vaccinated. December 15, 2021. See “Hotels,” A2 Continued on A2
n n SINGAPORE SINGAPORE 36.8968 36.8159 n BSP (December 3, 2021) n JAPAN JAPAN 0.4454 0.4374 n n UK UK 67.0888 67.2329 n n HK HK 6.4693 6.4722 n n CHINA CHINA 7.9027 7.9013 n n AUSTRALIA AUSTRALIA 35.7494 36.2807 n n EU EU 56.9683 56.5758 n n SAUDI SAUDIARABIA ARABIA 13.4356 13.4531 Source: Source: BSP (November 26, 2021)