BusinessMirror January 20, 2022

Page 1

Quarantine leave pay tough for biz–Concepcion By Tyrone Jasper C. Piad Tyronepiad

& Samuel P. Medenilla @sam_medenilla

P

RIVATE companies must only pay for half of the paid isolation and quarantine leave program given the financial difficulties brought about by the pandemic, Presidential Adviser for Entrepreneurship Jose Maria A. Concepcion said. In a statement on Wednesday, Concepcion said the private sector might find it challenging to shoulder the entire cost of the paid leaves due to Covid-19 infection of the employees. The Department of Labor and

ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion

Employment (DOLE) issued an advisory earlier this week urging employers to implement paid quarantine leaves for workers, in addition to their existing benefits, as a financial safeguard amid the pandemic. Govt ready to pay if…. On Wednesday, the DOLE said the government is ready to pay for the quarantine leaves of workers once the necessary law for it is passed by Congress. In fact, Labor Assistant Secretary Dominique R. Tutay disclosed they even sought the inclusion of an additional P3 billion in their 2022 budget specifically to provide such benefit. “We saw the situation in 2020

and 2021 when many people exhausted their leave credits. So as part of our foresight while we are preparing for the 2022 budget, we proposed the paid pandemic leave,” Tutay said in an online press briefing. She noted workers who had used up all their leave credits, but still got quarantined or affected by lockdowns end up with a no work, no pay rule. Unfortunately, she said their proposed budget did not even make it to the level in Congress since it was already removed by the Department of Budget and Management (DBM) from the 2022 National Expenditure Program. She noted they are currently

backing the passage of the pending legislation, which will institutionalize quarantine leaves. Ideally, she said the quarantine leave should be shouldered by private companies to make it sustainable; however, since many businesses are still reeling from the pandemic, she noted the government could pay for the additional benefit. “The problem is if you provide a new social security to workers, it will be paid by the establishments and their workers. But since many [companies] have yet to recover [from the pandemic], the government might as well provide [the See “Quarantine,” A2

BusinessMirror

www.businessmirror.com.ph

A broader look at today’s business

Thursday, January 20, 2022 Vol. 17 No. 104

EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR

(2017, 2018, 2019, 2020)

DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS

P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK

SLOW FISTC ROLLOUT DUE TO ‘STRONG’ PHL BANKS F n

Full banking services not yet restored in storm sites

By Bernadette D. Nicolas @BNicolasBM

IVE asset management companies have been set up since the enactment of the law almost a year ago allowing the creation of these entities to enable banks and other credit-granting institutions to offload bad loans and non-performing assets they have accumulated during the pandemic.

The Securities and Exchange Commission (SEC) said two of these five Financial Institutions Strategic Transfer Corporations (FISTCs) are 100-percent Filipinoowned while the rest have Japanese and Swiss investors. In a report to Finance Secretary Carlos G. Dominguez III, the SEC said both the Philippine Equitable Recovery FIST-Asset Management Corporation (AMC) and Philippine Recovery Company FISTC- AMC Inc. are 100-percent Filipino-owned. Meanwhile, those with foreign investors are: Argo Global Servicing Philippines (FIST-AMC) Inc., owned by Argo Global Investment Co., LTD, a Japanese corporation; Resurgent Capital (FISTCAMC) Inc. which has China Bank Capital Corp., a domestically registered investment banking subsidiary of China Banking Corporation, among the incorporators; and Collectius FISTC-AMC Private Limited Corp., which is wholly owned by Switzerlandbased Collectius 2 AG.

By Bianca Cuaresma @BcuaresmaBM

T

A CHILD gets vaccinated against the coronavirus, and gets free entrance to the newly renovated Manila Zoological and Botanical Garden, on Wednesday, January 19, 2022, in Malate, Manila. The zoo is eyed as a vaccination site for children aged five to 11 in preparation for the national government’s vaccine rollout for minors. NONIE REYES

PANDEMIC SEEN BEHIND CAUTION ON HAVING KIDS By Cai U. Ordinario @caiordinario

T

HE job losses, business closures and the overall uncertainty created by the pandemic may have discouraged Filipino couples from having children in the past year, according to the Commission on Population and Development (Popcom). In a virtual briefing of the Philippine Press Institute on Wednesday, Population and Development Undersecretary Dr. Juan A. Perez III said preCovid-19, having a child would take up as much as a third of a couple’s savings, if they had any. If not, they would tend to borrow this amount.

See “Slow,” A2

PESO EXCHANGE RATES n US 51.3200 n JAPAN 0.4478

Perez told the BusinessMirror this cost, which only computes the cost of having a newborn, likely increased due to the pandemic. Buying personal protective equipment will already cost P500 each. “That study was done preCovid and referred to a newborn member of the family. That has not been updated,” Perez said. “The issue may be whether such savings still exist or may have been used up because of joblessness/underemployment during Covid.” Perez said another issue that could come into play is the increase in the cost of living in recent years. Between 2018 and 2021, the cost of living nationwide increased by 15 percent.

However, the increase was not uniform. In some regions, Perez said, it was higher at 25 percent (Region 3 or Central Luzon), but only 4 percent in others (Bangsamoro Autonomous Region in Muslim Mindanao or BARMM). This, he said, could see the cost of having a newborn to slightly increase or remain the same at a third of a couple’s savings, depending on where the couple resides. “Yes, [there could be] a slight increase. Health costs may have also gone up independently due to the need for testing and PPEs,” Perez told the BusinessMirror. Apart from the cost of bringing new life into the world, housing remains a concern,

particularly during the pandemic. Perez said the average size of homes in the country is 20 square meters. This makes it difficult to encourage couples to have children. The small living spaces are already an issue in terms of maintaining social distancing and more so, if there is another person or child added to the household.

Fear of virus

FOR St. Luke’s Medical Center Psychiatrist Bernadette Monteclaro Manalo, the fear of contracting the virus also discouraged Filipinos from being intimate. She said the pandemic “kills See “Pandemic,” A2

HE Bangko Sentral ng Pilipinas (BSP) confirmed on Wednesday it is still working with banks in the Visayas to restore full banking services more than a month after Typhoon Odette ravaged the islands. In a statement, the BSP said in the interim, affected banks have reported to the BSP that they have adopted shortened banking hours following power, telecommunication, and Internet disruptions caused by the typhoon. To fast-track their return to full operations, the BSP also reported that affected banks are working currently with utility companies and other web service providers. “The BSP also advises residents and consumers in these areas to adopt e-banking and digital payment services when possible and transact in banks and branchlite units located in nearby areas where services are fully operational,” the BSP said. “The banking community in affected areas looks forward to the immediate full restoration of utility and Internet services that will enable the resumption of banking operations,” it added. Reports from the National Disaster Risk Reduction and Management Council (NDRRMC) showed that damage to agriculture caused by typhoon Odette hit P7.684 billion while damage to infrastructure hit P16.9 billion. Aside from banking disruptions and damages, BSP Governor Benjamin Diokno earlier said supply disruptions and agricultural damage from Typhoon Odette will likely result in a “temporary uptick in the prices of food items and other necessities over the near term.” “The BSP will incorporate the typhoon’s impact into its projections once firm estimates become available,” Diokno said.

n UK 69.7798 n HK 6.5866 n CHINA 8.0772 n SINGAPORE 37.9979 n AUSTRALIA 36.8580 n EU 58.1404 n SAUDI ARABIA 13.6788

Source: BSP (January 19, 2022)


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
BusinessMirror January 20, 2022 by BusinessMirror - Issuu