BusinessMirror July 01, 2020

Borrowing binge swells 5-month NG debt

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HE national government’s outstanding debt for the first five months of the year swelled by 12.3 percent to P8.89 trillion from P7.916 trillion in the same period in 2019 as Manila borrowed more in May from local and foreign sources to fund its fight against the Covid-19 pandemic.

Latest data from the Bureau of the Treasury also showed that the end-May outstanding debt stock climbed by 3.4 percent from P8.6 trillion as of end-April, primarily attributed to the “increased reliance on government

INSPECTING the progress of the new bus scheme on Edsa, Metropolitan Manila Development Authority Chairman Danny Lim (right) and some lawmakers navigate the center islands of Edsa fenced in to separate passenger and vehicle traffic as the Transportation department implements the “Edsa Busways,” dedicated and controlled lanes exclusively for accredited public-utility buses. NONOY LACZA

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securities issuance and external loan availments to fund Covid-19 response amid a sharp drop in revenue collections.”

The national government’s debt portfolio for the five-month period also surged by 15 percent from the end-2019 level of P7.731 trillion.

Of the total outstanding debt stock of P8.89 trillion as of end-May, 68 percent was borrowed from local sources, while 32 percent came from foreign sources.

Broken down, domestic debt during the period amounted to

P6.034 trillion, ballooning by 14.8 percent from P5.256 trillion a year ago.

Due to the net issuance of domestic government securities, domestic debt also inched up by 2.9 percent from P5.864 trillion as of end-April.

To date, domestic debt surged by 17.7 percent from P5.128 trillion as of end-2019.

On the other hand, external debt for the five-month period also rose by 7.4 percent to P2.857 trillion from P2.659 trillion in 2019.

For May, net availment of external loans amounted to

P114.01 billion as part of continued government efforts to secure financing for the Covid-19 response, while local currency depreciation added P7.65 billion to the peso value of external obligations. On the other hand, third currency adjustments trimmed P1.74 billion from it.

External debt

EXTERNAL debt stock for the period was also higher by 4.4 percent compared to the endApril level of P2.737 trillion.

See “Debt,” A2

BusinessMirror A broader look at today’s business

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DBM OKs RELEASE TO OWWA OF P5-B FUNDS www.businessmirror.com.ph

n

Wednesday, July 1, 2020 Vol. 15 No. 265

P25.00 nationwide | 2 sections 16 pages | 7 DAYS A WEEK

DESPITE WIRECARD, PHILIPPINE BANKING SYSTEM SOUND–BAP

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FERRY boats of the Metropolitan Manila Development Authority’s Pasig River Ferry Service system are seen at a docking area in Pasig City. The MMDA said the boats are being readied in case their services are allowed to operate again as an alternative public transport. NONIE REYES

By Bernadette D. Nicolas & Samuel P. Medenilla

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HE Department of Budget and Management (DBM) authorized the release of an additional P5 billion to augment the emergency repatriation fund for returning displaced overseas Filipino workers (OFWs) due to the Covid-19 pandemic.

The budget department released the authority to spend the additional amount on June 24 after the Overseas Workers Welfare Administration (OWWA)—an attached agency of the Department of Labor and Employment (DOLE)—made the request for more funding given the ballooning costs of assisting and repatriating thousands of migrant workers displaced by the Covid-19 pandemic.

“The DBM has released the

P5-billion allotment and cash allocation to DOLE-OWWA to augment its Emergency Repatriation Fund intended for displaced overseas Filipino worker returnees.

This was charged from pooled savings pursuant to Section 4(v) of the Bayanihan Law,” Budget Assistant Secretary and spokesman Rolando U. Toledo told the BusinessMirror in a message.

Sought for a reaction, OWWA Continued on A2

By Tyrone Jasper C. Piad & Joel R. San Juan

HE Philippine financial system remains stable amid the Wirecard mess involving two local banking giants, the Bankers Association of the Philippines (BAP) guaranteed on Tuesday.

The bankers’ group “assures the public that the country’s financial system is sound and that very strict rules regarding the issuance of bank certifications are in place.”

While these documents may be forged or falsified, the BAP said their authenticity could be ascertained through meticulous verification processes conducted by appropriate institutions.

The BAP encouraged the public to have their bank certifications and documents from third parties be validated by the issuing bank to practice due diligence.

The BAP’s clean bill of health for the banking system came as the Department of Justice said the Filipino banker whose law firm had been tied to Wirecard has reported receiving death threats. The DOJ earlier ordered the National Bureau of Investigation (NBI) to investigate.

Meanwhile, the BAP said it was working with regulators to improve the banking industry’s system.

“We continue to work with the Bangko Sentral ng Pilipinas [BSP] and other government agencies to improve our processes, and our member banks are regularly and proactively strengthening security checks and systems to ensure integrity at every level,” the BAP said.

The names of two of the country’s biggest banks—BDO Unibank Inc. and Bank of the Philippine Islands (BPI)—were recently dragged into the fray after an accounting scandal involving the German financial technology firm Wirecard broke, but both banks denied Wirecard is a client.

The crisis erupted after Wirecard AG’s auditor, Ernst & Young, declined to approve the company’s 2019 accounts after finding out that $2.1-billion worth of funds were missing. This prompted Markus Braun to immediately leave his position as the company’s chief executive officer.

Tracing the assets led to the allegations that BDO and BPI were holding the missing amount. Both banks denied such claims right away, stressing that the documents supporting the allegations were falsified.

BPI and BDO said Wirecard was not even their client in the first place. Both banks have taken action against the employees involved in the falsification of documents.

See “Wirecard,” A2

‘No sharp dips or surges in June inflation’ T

HE growth of consumer prices in the Philippines is expected to have stayed broadly level in June this year, as higher prices of key fuel and food items will be offset by lower utility rates during the month, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

In a message to reporters, BSP Governor Benjamin Diokno said their Department of Economic Research (DER) projects inflation to settle within the range of 1.9 percent and 2.7 percent for June. This is the same range he gave for the May 2020 inflation, which eventually hit 2.1 percent during the month.

“Higher gasoline, diesel and kero-

sene prices, as well as the uptick in the price of rice due to supply bottlenecks, contributed to positive price pressures during the month. These could be partly offset by slightly lower LPG price and electricity rate in Meralco-serviced areas during the month,” Diokno told reporters.

“Looking ahead, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” he added.

Since the start of the year, inflation has been on a downward trend, starting off at 2.9 percent in January. In March, the

PESO EXCHANGE RATES n US 49.8510

onset of Covid-forced restrictions that shuttered most businesses, inflation hit 2.5 percent.

The BSP’s latest inflation projects an average inflation of 2.2 percent for this year and 2.5 percent for next year.

Inflation currently averages at 2.5 percent, based on data for the first five months of the year. This means the BSP expects slower inflation numbers in the second half of 2020.

Elsewhere, inflation is also falling due to the dismal demand because of Covid-19 disruptions.

Thailand’s inflation rate fell to -3.4 percent in May, falling steeper than its

-3-percent inflation in April. Malaysia’s inflation rate is also within the negative territory at -2.9 percent in May.

Singapore’s overall inflation also fell below zero for the first time since 2016, at -0.8 percent.

Indonesia’s inflation in May, meanwhile, fell to 2.2 percent during the month despite a month of “traditionally faster inflation due to a holiday,” according to ING Bank senior economist Nicholas Mapa.

Bucking the trend is Vietnam, whose inflation rose 3.17 percent in June, from the 2.4 percent in May this year, signalling recovering economic activity in the country.

ELECTRIC tricycles, or e-trikes, touted as a greener alternative to traditional tricycles, ferry passengers on Taft Avenue in Manila. ROY DOMINGO

n JAPAN 0.4684 n UK 61.3417 n HK 6.4321 n CHINA 7.0411 n SINGAPORE 35.7662 n AUSTRALIA 34.2177 n EU 56.0425 n SAUDI ARABIA 13.2936

Source: BSP (June 30, 2020)

News BusinessMirror

A2 Wednesday, July 1, 2020

www.businessmirror.com.ph

Debt… Public-school enrollment extended; DepEd reckons with lack of devices

Wirecard…

Continued from A1

Continued from A1

From the start of the year, the national government’s external debt also went up by 9.7 percent from P2.604 trillion as of end-2019.

Meanwhile, total guaranteed obligations as of end-May shrank by 4.2 percent year-on-year to P465.877 billion from P486.158 billion in 2019.

Month-on-month, total outstanding guaranteed debt for the five-month period also dropped by 2.5 percent from P477.682 billion as of end-April.

The lower level of guarantees was due to the net redemption of both local and foreign guarantees amounting to P10.79 billion and P0.73 billion, respectively. This was further trimmed by currency adjustments, particularly third currencies, which reduced the value of external guarantees by P0.28 billion.

Since the beginning of the year, the government’s outstanding guaranteed debt declined by 4.7 percent from P488.746 billion as of end-2019.

Prior to the onset of the Covid-19 pandemic, the government had set a P1.4-trillion borrowing program for this year.

The government borrows to meet its spending requirements and to finance its budget deficit.

The Cabinet-level Development Budget Coordination Committee (DBCC) expects a wider budget deficit this year at 8.4 percent of GDP or equivalent to P1.613 trillion, more than double the country’s budget gap last year at P660.2 billion or 3.4 percent of GDP.

As of end-May this year, the country’s budget deficit expanded to P562.2 billion, nearly 695 times as much as the previous year’s budget gap of only P809 million for the period.

This was on the back of increased disbursements and drop in revenue collections due to the Covid-19 pandemic.

The country’s budget deficit is also projected by DBCC to be at 6.6 percent of GDP or P1.429 trillion for 2021 and 5 percent of GDP or P1.181 trillion for 2022.

The country’s debt-to-GDP ratio is also seen to increase to 49.8 percent this year from 39.6 percent last year.

For 2021 and 2022, the DBCC sees an even higher debt-to-GDP ratio of 51.5 percent and 52.3 percent, respectively.

Despite the projected increase in the country’s debt-to-GDP ratio, economic managers had said this is still far lower than the most recent peak of 71.6 percent in 2004.

A budget deficit occurs when expenditures exceed revenues, while the debt-to-GDP ratio is used to gauge a country’s ability to pay its debt.

Bernadette D. Nicolas

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HE Department of Education (DepEd) on Tuesday announced it extended the enrollment period for public-school students up to July 15, amid projections of an exodus of students from private to public schools and the records so far showing only a little over half of last year’s number had enrolled online.

In an online press briefing, Presidential spokesperson Harry Roque said DepEd opted to implement a two-week extension in the enrollment deadline, which was supposed to end on June 30, 2020.

“The good news for parents, the enrollment has been extended until July 15 [2020],” Roque said.

Roque urged concerned parents to enroll their children before the new deadline.

“Let us not allow the education of our children to be interrupted even if there is Covid-19 [novel coronavirus disease],” Roque said.

He made the appeal after the

Department of Education (DepEd) reported that only around 16 million students enrolled for the next school year.

As of 8 a.m. of June 30, the DepEd recorded a total of 15,907, 786 enrollees. Of the number, 672,403 are enrolled in private schools.

For private schools, DepEd Undersecretary Jesus Mateo said that they may still accept enrollees beyond June 30 as long as it is “within the school calendar law.

For more information about the enrollment and the opening of school year (SY) 2020-2021, DepEd

said that the public may visit www. deped.gov.ph/obe-be.

Last year, 27 million students enrolled from kindergarten to Grade 12.

ICT equipment

AS part of the preparations for online trainings and online classes for SY 2020-2021, a total of 532,637 ICT equipment were distributed in 93 percent of schools nationwide.

However, the DepEd said that providing laptops for each public school teacher would entail funding of P27 billion.

The DepEd said that 77,631 or 11 percent of the teachers do not have a desktop or laptop computer at home, as revealed by the Survey on Teachers’ Readiness for Distance Education undertaken

by DepEd’s Planning Service from April 16 to 20, 2020.

The survey covered 689,329 teacher respondents.

“Applying that percentage to the total number of teachers nationwide, it can be estimated that 93,221 of the 847,467 teachers have no computer device,” the DepEd added.

Given that estimate, the DepEd said that it can already address the

number of laptops and devices the department has at the moment.

“The direction is to provide a laptop for each teacher, and for this to become a reality, it will require about P27 billion of government funding.”

To date, DepEd has an inventory of the following IT devices distributed in 93 percent of schools nationwide: 124,939 standalone desktop computers, 99,548 laptops and 308,150 tablet PCs.

These IT equipment, delivered to the public schools via the DepEd Computerization Program (DCP) in the last five years, may already be issued, and teachers may borrow them for use in blended learning.

“However, it must be emphasized to everyone, that given the limited inventory, this measure is only a temporary solution for teachers without devices,” the DepEd stated.

Although DepEd recognizes and appreciates the fact that a considerable number of teachers use their own devices out of their own resources, they stressed that provision of government-issued laptops still remains the “responsibility of the State.”

Samuel Medenilla, Claudeth Mocon-Ciriaco

ABS-CBN TO LAWMAKERS: WE FULLY COMPLIED WITH LABOR STANDARDS

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HE ABS-CBN Corp. on Tuesday maintained that the TV network is fully compliant with general labor standards, occupational health and safety standards, and security of tenure.

During the continuation of the hearing on ABS-CBN’s franchise, the company’s head of transformation Mark Nepomuceno told lawmakers that the ABS-CBN’s full compliance is the result of the company’s efforts to act in accordance with what it believes is right under the law.

According to Nepomuceno, the ABS-CBN group has a total of 11,071 workers, with 5,918 hired by ABS-CBN Corporation.

He added that based on BIR reports 1604CF and 1604E, the group had paid over 20,000 workers and suppliers in 2019, the estimated number of jobs it generates yearly.

He also explained that the ABS-CBN group is composed of 17 companies, including ABS-CBN Corporation which provides backing to its subsidiaries, and non-renewal of

IN this May 5, 2020, file photo, an activist holds a slogan outside the headquarters of broadcast network ABS-CBN Corp. in Quezon City. AP PHOTO/AARON FAVILA its broadcasting franchise will diminish its capacity to give support.

In the same hearing, Labor Undersecretary Ana Dione said ABS-CBN was fully compliant with the directives of the Department of Labor and Employement

pertaining to labor and occupational health and safety standards after the agency conducted a routine inspection on the network’s premises in July to September 2018.

As a matter of procedure, Dione

said there was a series of mandatory conferences conducted so the parties can show proof of compliance or submit employment records to disprove noted violations and findings during the inspection.

“ABS-CBN has fully complied with all the findings and violations that have been found out during the inspection,” she said.

In the same hearing, Baguio Rep. Mark Go asked the House to protect the jobs of more than 11,000 workers in ABS-CBN and its affiliate companies.

“We’re helping all companies.

We do not know what to do in Congress to create a package to stimulate the economy,” Go said.

“Let's protect the jobs. This is not only for ABS-CBN. This is for the entire country. We want to help this country, let’s help ABS-CBN keep its franchise,” Go said.

The lawmaker also said “if there are problems that we saw [on the granting of ABS-CBN franchise], let’s correct them.” Jovee Marie N. Dela Cruz

DBM OKs release to OWWA of ₧5-B funds Continued from A1

administrator Hans J. Cacdac welcomed the news.

“This gives us the needed boost to help the OFWs. Since this is for the emergency repatria-

tion, which means we could utilize this for food, accommodation and transport of the repatriated OFWs,” Cacdac told the BusinessMirror in a phone interview.

DBM’s Toledo was referring to the Special Allotment Release Order (SARO) and Notice of Cash Allocation (NCA), which gave agencies the authority to spend the amount. Shortly before 5 pm, Cacdac said they received the official authorization from DBM. With SARO, agencies become authorized to incur obligations on behalf of the government in order to implement their programs, activities and projects.

On the other hand, the NCA specifies the maximum amount of cash that can be withdrawn from a government servicing bank for the period indicated.

According to the budget department, the pooled savings are sourced from 2019 and 2020 national budgets in line with Re-

public Act 11469 or the Bayanihan to Heal As One Act. The last day of effectivity of the Bayanihan Law—which gave the President temporary special powers to address the Covid-19 pandemic—was on June 25.

Section 4 (v) of the now expired Bayanihan law allowed the President to direct the discontinuance of appropriated programs, projects, or activities of any agency of the executive department, including government-owned or -controlled corporations in the 2019 and 2020 national budgets whether released or unreleased and allotments for which remain unobligated.

Moreover, the President may also “utilize the savings generated therefrom to augment the allocation for any item directly related to support operations and response measures, which are necessary or beneficial in order to address the Covid-19 emergency.…”

Including the additional P5billion funding authorized for release to OWWA, the DBM has so far released P374.888 billion in allotment and P360.456 billion in cash allocation to different recipient units as of June 30.

Last week, OWWA’s Cacdac said in a Senate Labor committee hearing that the agency’s remaining P18-billion trust fund could be exhausted by next year if the mass repatriation of OFWs continues.

The labor department earlier said that about a third of the over 300,000 OFWs whose employment was affected by Covid-19 are seeking to be repatriated this year.

Presidential Spokesman Harry Roque earlier assured the public that the Palace supports efforts to inject support in the OWWA trust fund.

Senators also earlier said Congress would do its part to help beef up OWWA’s resources for dealing with the unprecedentedly high repatriation, as thousands more OFWs are begging to be brought home.

With the additional P5-billion budget, the OWWA is now “in a better position” to assist OFWs, Cacdac said.

OWWA targets to assist 250,000 OFWs until the end of the year, he added.

He thanked the national government for coming to OWWA’s rescue during its ongoing financial woes.

Financial woes

OWWA asked DBM for the additional funds since its ongoing repatriation and assistance efforts for the thousands of OFWs affected by Covid-19 had entailed big drawdowns from its P18.7billion trust fund.

It said it already spent over P900 million of its trust fund to help 63,000 Covid-affected OFWs. Labor and Employment Secretary and OWWA Board of Trustees chairman Silvestre H. Bello III called for the allocation of more funds to bring home the displaced OFWs so OWWA’s trust fund will remain sustainable.

Without any alternative funding to be used for its repatriation aid, OWWA said its trust fund is expected to be reduced to P10 billion by the end of this year and below a billion if the fund is continually used for repatriation purposes during the Covid pandemic up to 2021.

“This is the first time they [OFWs] will ask for our assistance; why do we need to tap their [trust] funds,” Bello said.

“Government has to take extra steps in order to assure additional budget to help our OFWs,” he added.

The Central Bank also clarified that none of the alleged missing funds entered the Philippine banking system.

Wirecard, meanwhile, said that further assessment of the case indicates the missing $2.1 billion likely never existed to begin with.

The German firm has since hired investment bank Houlihan Lokey to iron out a new financing strategy to keep clientele.

Probe in Manila

IN Manila, the Department of Justice ordered the National Bureau of Investigation, the Bureau of Immigration and the Anti-Money Laundering Council to look into the Wirecard controversy.

This, as former Wirecard chief operating officer Jan Marsalek reportedly stayed for a few days in the Philippines in March prior to the issues regarding accounting irregularities surfaced.

Marsalek was the officer in charge of overseeing Southeast Asian operations.

BDO is leading the banking sector in terms of assets and capital base, which amount to P3.29 trillion and P372.22 billion, respectively, as of end-March. In the same period, BPI’s total assets reached P2.19 trillion, while its capital account stood at P276.13 billion.

In the first quarter, BDO reported that its net earnings declined by 10.20 percent to P8.8 billion, while BPI saw its profits dip by 5 percent to P6.39 billion amid the pandemic.

Shares in BDO surged 4.26 percent on Tuesday to finish at P98, while BPI saw its stocks increase by 3.6 percent to end at P72 amid the 1.68-percent uptick for the benchmark index.

Death threats

JUSTICE Secretary Menardo Guevarra on Tuesday disclosed that lawyer Mark Tolentino has been receiving death threats after his name was dragged into the scandal.

Guevarra said Tolentino and his lawyer Dennis Manalo went to the NBI on Monday to shed light on his alleged role on the issue.

“Attorney Tolentino said he was hired by his principal early this year to provide consultancy services, he undertook to submit a formal affidavit to the NBI. He said he is receiving death threats,” Guevarra told reporters on Tuesday.

The NBI is under the direct supervision of the DOJ.

Tolentino is a former assistant secretary for the Department of Transportation who was sacked by President Duterte in 2018.

He is being linked to the scandal following admission that his law firm, M.K. Tolentino Law & Business Consultancy Office, has foreign currency deposit accounts with BDO and BPI but that it did not name its clients, citing absolute confidentiality required by the Foreign Currency Deposit Act.

Tolentino’s camp denied knowing or participating “in any alleged irregularity” involving Wirecard’s money.

But, BSP Governor Benjamin Diokno claimed that those behind the anomaly are only using the names of BPI and BDO to cover their tracks as initial reports showed none of the missing $2.1 billion entered the Philippine financial system.

Guevarra earlier directed the NBI to investigate certain individuals who have been linked in the scandal.

He also reported that Wirecard’s COO Marsalek was in the country on March 3, 2020, and left after two days based on the records of the Bureau of Immigration.

Marsalek, who was in charge of overseeing daily operations of the company in Southeast Asia, has reportedly been fired from his position and is being blamed for the financial mess.

Guevarra also ordered the NBI to coordinate with the AMLC despite BSP’s earlier pronouncement that the missing money of Wirecard did not enter the Philippines.

He said the NBI and AMLC would work together in looking into money-laundering indications involving the missing Wirecard funds.

The Nation BusinessMirror

www.businessmirror.com.ph

PCG urged to file raps vs captain of Hong Kong cargo ship in sea mishap

By Jonathan L. Mayuga @jonlmayuga

A

S the Philippine Coast Guard (PCG) continues its search and rescue operation for the missing crew of Liberty 5, the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) urged the government to take legal action against the Hong Kong flagged cargo vessel’s captain who may be held liable for the sea mishap.

According to Pamalakaya, the initial report released by PCG should be enough to sue the Hong Kongflagged cargo ship MV Vienna Wood.

Missing Pinoy crewmen identified

THE group noted that the cargo vessel’s crew did not act, or exerted any effort, to rescue the 14 Filipino fishing crew of the capsized fishing vessel.

Following reports of missing Filipino fishing crew and passengers of local fishing vessel FV Liberty 5 after its reported collision with Hong Kongregistered vessel MV Vienna Wood off the coast of Occidental Mindoro before dawn on Sunday, June 28, the Bureau of Fisheries and Aquatic Resources (BFAR) IVB said it has immediately deployed the Fisheries Resource Protection Groups (FRPG) of Sablayan and Lubang, Occidental Mindoro Stations to the site of the incident to assist in the search and rescue operations headed by the PCG and the local government unit (LGU) of Paluan, Occidental Mindoro.

In a news statement, the missing fishing crew and passengers were identified by the PCG in coordination with the BFAR IVB FRPG team. They are: Jose Magnes E. Alfonso (Captain) Renante H. Dahon (Chief Mate) Reynil V. Magura (Chief Engineer) Miguel Q. Booc III (Assistant Chief Engineer) Joeffry R. Bantog (Oiler) Jeerom D. Alaska (Oiler) Michael B. Flores (Master Hatchman) Jayson A. Vigonte (Hatchman) Adrian Robert S. Amogod (Hatchman) Bartolome P. Oab Jr. (Hatchman) Herbert J. Dalabajan (Hatchman) Reynald S. Riparip (Passenger) Ariel L. Tabang

(Passenger) Edwardo S. Manipol Jr. (Passenger). The boat’s captain, Jose Magnes Alfonso, is from Aklan, while the rest of the crew and passengers are from Palawan.

Offer of assistance

THE Chinese Embassy in the Philippines early evening Tuesday said they are ready “to render any necessary assistance” to the search for the missing fishermen.

The embassy said they are shocked and saddened at the collision of a Philippine fishing boat with a Hong Kong-flagged cargo vessel at midnight of June 27.

“This is a tragic incident. Our thoughts and prayers go out to the missing crew members and passengers. We sincerely hope all of them could be rescued at the earliest,” an embassy statement read.

“During this difficult time, our top priority should be given to the rescue of missing crewmembers and passengers,” the same statement said.

“Pending the investigation, we hope all parties refrain from politicalizing the issue and seeking narrow interests from such a humanitarian tragedy,” it added.

Such inaction, Pamalakaya said, should be enough to slap the captain and the crew of MV Vienna Wood with criminal and civil charges.

Since the collision on the midnight of June 27, all 14 crew of Liberty 5 remain missing.

Pamalakaya National Chairman Fernando Hicap said that the actuations of the Chinese cargo vessel endangered the lives of the Filipino fishing crew.

“The PCG report says it all; despite the ship being compliant with the navigational standards and capable of rescuing the 14 fishing crews, they left the helpless fishers to uncertainties,” Hicap said.

Meanwhile, the group, as expected, slammed Malacañang for downplaying the maritime tragedy as banggaan lang, amid precedence and abandonment of the welfare of the victims of Chinese ramming of F/B Gem-ver 1 in June last year. Jonathan L. Mayuga

UPLB chancellor commends Army’s 2nd ID’s response and readiness in face of contagion

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HANCELLOR Fernando C. Sanchez Jr. of the University of the Philippines, Los Baños (UPLB), Laguna commended the troops of the Army’s 2nd Infantry Division (ID) for their response to the pandemic and for their readiness in times of crisis.

In his speech during the graduation ceremony of 179 new soldiers in Tanay, Rizal, on Monday, Sanchez expressed his gratitude to the soldiers whom he said were “instrumental in our effort to reunite our stranded students with their families when ECQ [enhanced community quarantine] was implemented to contain the spread of Covid-19.”

The chancellor of UPLB cited the parallelism in the missions of the UPLB and the Philippine Army and emphasized that “the loyalty of the soldiers must be to the people whose safety and interest we are both mandated to uphold.”

“As new soldiers of the nation, you represent the next generation of the Army as an institution, which is an important pillar in safeguarding democracy in the Philippines,” he told the new soldiers, while urging them to “study and engage with the complex and interrelated issues of Philippine society.”

“Your training has well-equipped you with the knowledge and skills that you need to perform your duties with honor, excellence and compassion,” he stressed.

The highlight of the graduation ceremony was the “Symbolic Entrustment of Firearms,” which, according to the military, signifies the people’s trust to the soldiers’ readiness and ability to accomplish their mission

“to serve the people and secure the Filipinos’ homeland.”

Lt. Col. Jose del Rosario, commandant of the 2nd Division Training School, said that the training went as scheduled despite the pandemic, “because we cannot afford to put the security of our people on hold,” while explaining that “adjustments and innovations were introduced to make sure that the school complied with health protocols without sacrificing the quality of our new soldiers.”

“After 18 weeks, 179 men emerged from the 190 boys who volunteered to serve our country and people through the noble profession of arms,” del Rosario said.

The batch received an excellent rating of 95 percent from the Philippine Army’s Quality Assurance Team which evaluated their core competencies on marksmanship and land navigation.

The 2nd Division Training School was adjudged as the best Army training school across the country in 2019.

Maj. Gen. Arnulfo Marcelo Burgos Jr., commander of the 2nd ID, said the advent of Covid-19 allowed them to develop a new breed of soldiers who are “more exposed, aware and in touch with the realities of the world outside the confines of their training grounds since they were not only trained on basic military knowledge, but also, they had the privilege of having an up-close and personal training as well as practical exercises on the values of compassion and selflessness after they were tasked to manufacture thousands of face masks for our medical frontliners.” Rene Acosta

Editor: Vittorio V. Vitug • Wednesday, July 1, 2020 A3

‘Misencounter’ or gunslay in cold blood?: NBI probes death of 4 Army men in Jolo

A

By Rene Acosta

@reneacostaBM

LL policemen involved in the reported “shootout” in Sulu on Monday that resulted in the killing of four Army soldiers, including two junior officers, have been disarmed as the National Bureau of Investigation (NBI) begins its probe into the incident.

The disarming of firearms and restriction to quarters of the policemen from the Jolo Municipal Police Station who figured in what the leadership of the Bangsamoro Autonomous Region police described as a “misencounter,” was part of the administrative action taken by the police leadership.

Maj. Marvin Indammog, Capt. Irwin Managuelod, Sgt. Jaime Velasco and Cpl. Abdal Asula died after they reportedly tried to engage policemen in a firefight on Monday afternoon near the headquarters of the Jolo police station, as claimed by the police in an initial report.

The Army, which will transport to Manila three of the bodies, however, belied the claims of the police, saying the soldiers were shot in cold blood by the policemen, whose identities the Philippine National Police did not provide.

Army chief Lt. Gen. Gilbert Gapay was reportedly “enraged” by the inci-

dent and demanded for a full-blown investigation by the NBI. His call was joined by other military officials, including Armed Forces Western Mindanao Command chief Lt. Gen. Cirilito Sobejana.

Gapay and Sobejana said that the four soldiers, who were in civilian clothes and riding a sport-utility vehicle, were on an official intelligence mission against members of a terrorist group and bomb makers in Sulu’s capital.

Reports about the events that led to the death of the four soldiers were, however, conflicting.

The police said the vehicle bearing the soldiers was flagged down by the policemen for which the Army members identified themselves as military personnel. The four were told to proceed to the police station for proper verification.

The police claimed that the vehicle, upon reaching the police station, sped away, prompting the policemen

to chase it that led to a shootout.

Another report said that the vehicle stopped not far away from the police station, wherein Indammog alighted with a gun to the policemen, which prompted them to open fire.

Defense Secretary Delfin N. Lorenzana described the death of the four soldiers as “very unfortunate” and could not comment pending the investigation of the NBI. “The reports that are coming in are very hazy,” he said on Monday night.

Gapay said the four soldiers were part of a military intelligence team under the 11th Infantry Division that were “hot on the trail of Abu Sayyaf members, bomb makers, and suicide bombers in Sulu province.”

“They were flagged down by personnel of Jolo Municipal Police Station who were manning a checkpoint in Jolo town proper. Even after properly identifying themselves, the police personnel approached and fired upon them for still unknown reasons,” the Army chief said.

“The commanding general, Philippine Army is enraged and demands that a full-blown investigation must be conducted on the death of four soldiers from the hands of PNP forces,” Army spokesman Col. Ramon Zagala said in a news statement.

The Bangsamoro Autonomous Region police, through its commander Brig. Gen. Manuel Abu, assured it will extend its full administrative and operational support to the NBI “to ensure impartiality and to help establish the truth behind this unfortunate incident.”

The PNP leadership said it was con-

doling with the “family and colleagues of two Philippine Army officers and two enlisted men who died in the unfortunate incident of a misencounter with PNP personnel in Jolo, Sulu.”

“The PNP and AFP officials in Sulu have agreed that the National Bureau of Investigation Regional Office in Zamboanga City will conduct and lead the investigation to ensure impartiality and to eliminate any suspicion of undue influence,” it said in a news statement.

Meanwhile, Sen. Panfilo Lacson called for a “speedy but thorough” determination of the facts and circumstances that led to the tragic shooting of the four Army men.

“It is wise and proper that both Philippine National Police Chief P/ Gen. Archie Gamboa and Armed Forces of the Philippines Chief of Staff Gen. Felimon Santos Jr. have agreed that the National Bureau of Investigation take full control of the criminal investigation, and allow the evidence to dictate the findings,” Lacson said in a news statement.

“But the NBI’s investigation results notwithstanding, and more than making fully accountable all those responsible for the incident, the ground commanders of both sides must be in full control of the situation to avoid an escalation of the situation,” he added.

“Our security forces already have their hands full in their fight against their common adversaries such as terrorism and insurgency in Mindanao,” he added. “ Allowing disunity in any form would give the enemy an unwanted advantage that could prove fatal for our nation.”

Makati mayor padlocks Bel-Air bar, says city pubs to remain closed under GCQ

By Claudeth Mocon-Ciriaco Correspondent

M

AKATI City Mayor Abigail Binay had ordered the closure of Skye Bar at Barangay Bel-Air for illegally operating and violating laws and protocols under the general community quarantine (GCQ).

Binay also reminded owners of bars in the city that they are not yet allowed to operate under current Inter-Agency Task Force on Emerging Infectious Diseases (IATF) guidelines.

“We strongly remind owners of bars in Makati City that they are not allowed to operate under current IATF guidelines, and that the city government

“As we have repeatedly warned, we will not tolerate those who willfully put themselves and others in harm’s way by violating laws and protocols intended to curb the pandemic and promote a Covid-free city and nation.”—Binay

requires all business establishments to submit a notice of reopening to the city’s Business Permits and Licensing Office within three days after reopening,” she said adding that the notice may be submitted using Makati BPLO

portal (bit.ly/MakatiBPLOReopening), the city’s web site (www.makati.gov.ph), and the Makatizen App. On June 28, authorities apprehended around 100 guests inside the bar drinking liquor and ignoring social distancing rules.

Charges have been filed against them for violating Executive Order 11, the Makati Revenue Code, RA 11332, and related IATF guidelines.

Binay also called on law-abiding citizens to be vigilant and report to them, through hot line 168 or Makatizen App, any person, or establishment violating the law so that they can be held liable and meted with the appropriate punishment as provided by the law.

“As we have repeatedly warned, we will not tolerate those who willfully put themselves and others in harm’s way by violating laws and protocols intended to curb the pandemic and promote a Covid-free city and nation,” she said.

Among those arrested were celebrity host KC Montero and his wife, along with 119 others for violating social distancing. The bar owner identified as Felix Maramba was also arrested.

Makati Police Investigation Unit chief Major Gideon Ines Jr., said that they received a tip that persons in the bar were violating social distancing. The police also received a video that led to the raid conducted at around 6 p.m.

Go to DOH and DSWD: Mental health concerns should be a priority amid raging pandemic

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EN. and Senate Committee on Health Chairman Christopher Lawrence “Bong” Go is appealing to the Departments of Health (DOH), and Social Welfare and Development (DSWD) to bolster efforts to extend psychosocial assistance to individuals struggling with mental health issues, such as anxiety, depression and other more serious psychological issues.

“In this time of pandemic, we should also ensure that mental health is valued, promoted and protected. Aside from physical health, ’yung mental health, napaka-importante rin po,” Go recently stated.

The senator noted the ongoing pandemic and subsequent diseasecontainment responses have created conditions that are taking a toll on the mental health of many adults and children. Public measures, such as social distancing and self-isolation, can cause loneliness and fear in people which, in turn, increases anxiety and stress.

Moreover, people receiving mental health services before the pandemic may have been cut off in areas under community quarantine.

“Marami pong nade-depress dahil sa sitwasyon ngayon. In fact, nakakalungkot ang mga OFWs [overseas Filipino workers] natin, napakatagal na napalayo sa kanilang pamilya.

Alam ninyo, hindi nababayaran ’yung lungkot. Napakahirap mapalayo sa pamilya,” he continued.

DSWD Secretary Roland Bautista revealed that concerned agencies led by DSWD and DOH are actively working to address the rising number of Filipinos seeking mental health treatment. Over 150 individuals have availed of the agency’s online psychosocial counseling as of June 2020.

Despite this, Go believes the government can do more to lend support to Filipinos during the crisis. This includes expanding existing mental health services, raising awareness about mental health is-

sues, and addressing barriers, such as stigma, access and inconvenience that discourage people from seeking treatment.

He encouraged the aforementioned departments to take advantage of online platforms, such as social media and other technologies, which may provide free and greater access to mental health care and psychosocial support.

Last May 28, the senator presided over a Senate health committee hearing to discuss Senate Bill 1471, which seeks to amend Republic Act 11036 or the Mental Health Act. Filed by Sen. Juan Edgardo “Sonny” Angara and supported by Senator Go, the bill will enhance Section 5 of the Act or the Rights of Service Users.

The new section will provide Filipinos with mental health conditions immediate access to the “compensation benefits and/or any special financial assistance that he or she is entitled to under existing laws should the service user sustain temporary or

permanent mental disability while in the performance of duty or by reason of his or her office or position.”

The proposed amendment is an opportunity to reinforce the rights and protections afforded to the affected Filipinos, according to Go. Essential workers reporting to work despite facing substantial health risks must be adequately protected, he added.

Go reminded employers that the mental well-being of their employees has a direct impact on their productivity. “Now more than ever, they must fulfill their moral obligation to take care of their workers given the emotional toll of the pandemic.”

“With or without Covid-19, napakaimporante ng health, kalusugan po ng bawat Pilipino.... Let me reiterate, let us learn from this pandemic and work together to strengthen our health-care system and to better provide quality health care to our people,” added Go.

A4 Wednesday, July 1, 2020 • Editor: Vittorio V. Vitug

Economy BusinessMirror

www.businessmirror.com.ph

Banana volume exports climb 2 percent from Jan to April but total value dips 6.4% to $618.57 million

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By Jasper Emmanuel Y. Arcalas

@jearcalas

HE value of the country’s banana exports from January to April fell by 6.4 percent to $618.57 million from $660.52 million last year, preliminary trade data from the Philippine Statistics Authority (PSA) showed.

The total worth of banana exports declined despite a 2-percent increase in volume of shipments during the four-month period, data also showed.

During the reference period, data showed, the country exported 1.486 million metric tons of bananas compared to the 1.458 MMT shipped in the same period of last year.

Japan was the country’s top buyer of bananas as it accounted

for 40 percent of the total worth of bananas exported during the reference period, data showed.

T he Ph i l ippi nes e x por ted $247.792 million worth of bananas to Japan, which was 11 percent over the $223.221 million worth of shipment it made in the January-to-April period of 2019, PSA data showed.

PSA data showed that the country shipped 504,124.669 MT of bananas to Japan, which was 13.5

percent over the 444,162.152 MMT recorded volume last year.

China was the second-biggest buyer of Philippine bananas during the four-month period as it cornered 34.1 percent of total export volume.

The country’s banana exports to China declined by 22.5 percent to 419,411.191 MT from 541,182.695 MT last year, PSA data showed.

In terms of value, banana shipments to China fell by 25.9 percent to $172.814 million from last year’s $233.349 million, PSA data also showed.

Philippine banana exports to South Korea, the country’s thirdlargest market, declined by 8.5 percent to $86.682 million from $94.76 million, according to PSA data.

PSA data also showed that the volume of bananas shipped to South Korea shrank by 8 percent to 191,117.483 MT from 207,654,198 MT. In May, Filipino banana exporters told the BusinessMirror that they expect banana shipments to drop by

as much as 40 percent in terms of volume this year as output is drastically reduced by Fusarium wilt and climate change, with the aggravating impact of Covid-19 on trade.

Pilipino Banana Growers and Exporters Association (PBGEA) Executive Director Stephen A. Antig said the 40-percent reduction is a worst-case scenario, considering the extent of damage to plantations by Fusarium wilt, or Panama disease, coupled by the drought experienced in Mindanao.

Antig estimates that 20 percent of the country’s area planted to bananas have been damaged by Panama disease. As of March, he said, the disease has already affected about 30,000 hectares to 40,000 hectares of banana plantations in Mindanao.

Worse, Antig said, the unfavorable weather conditions, particularly the drought in Mindanao, is adversely affecting local banana production.

He explained that the lack of

rainfall, which should have started already, he noted, would impact small and medium growers without access to irrigation facilities. “[The 40-percent reduction] is possible. And I hope it is already the worst-case scenario,” Antig told the BusinessMirror in a phone interview in May. Banana production in the first quarter fell to its lowest level in four years, as Fusarium wilt affected over 30,000 hectares of banana plantations and reduced output by 2.43 percent year-on-year to 2.063 million MT. PSA data obtained by the BusinessMirror showed that banana output from January to March declined by 51,389.60 MT, from last year’s 2.114 MMT. Historical PSA data showed that this is the lowest first quarter output for the fruit in four years since the 2.048 MMT recorded in 2016.

“The main reason for the decline would be Fusarium wilt,” Antig said.

Govt eyes ₧52-B budget for subsidies, testing, employment, transport services

By Samuel P. Medenilla @sam_medenilla

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HE government is now eyeing a P52-billion budget to provide subsidies for patient testing, employment and transportation services “to open up the economy” during the novel coronavirus disease (Covid-19) pandemic.

This was among the recommended provisions to be included in the pending stimulus package bill, Bayanihan II bill, in Congress of the economic managers to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) in its meeting on Monday.

Boost public confidence

OF the said amount, Presidential spokesman Harry Roque said P10 billion will be allocated for the expanded targeted testing of suspected

Covid-19 carriers.

He noted this will boost public confidence “go back to work and restore consumption demand” by ensuring them that infected individuals will be identified.

The measure also aims to minimize the expenses of the Philippine Health Insurance Corp. (PhilHealth), which is currently mandated to pay for the authorized reverse transcriptionpolymerase chain reaction (RT-PCR) of its members.

“We need to open the economy, but before we could do this we need the confidence that workers will have not be infected that is why we are expanding the testing,” Roque said in an online news briefing on Tuesday.

The expanded testing will be complimented with stricter implementation of minimum health standards as well as the localized quarantine in the municipal and barangay level.

Employment component

TO help in enforcing localized quarantines, the government will use a portion of its proposed P15 billion to be used for its cash-for-work program to hire additional contact tracers.

Roque earlier said the government plans to hire an initial 50,000 contact tracers to locate areas, which have large concentration of Covid-19 cases.

The cash-for-work funding will also be used for salary subsidy for small and medium enterprises, which is being proposed by the Department of Labor and Employment (DOLE).

Secured transportation

THE other proposed P17-billion budget will be used for the “service contracting” of public-utility vehicles (PUV), which are now operating at reduced passenger capacity to enforce social distancing measures.

“The economic team is now considering giving a modest subsidy, which will be enough for public transportation to recoup their costs,” Roque said.

He said the economic managers proposed a scheme wherein PUVs will be given enough subsidy to achieve a “breakeven point plus 10 percent markup less the average daily revenue.”

The economic team noted “full subsidy is not affordable [for the government] and could result to moral hazards, entitlements, and overcrowding [if free].”

They also recommended a study on restriction on certain PUVs like jeepneys; allocation of dedicated lanes for PUVs; accelerate automated fare collection system for PUVs; promotion of active transport mode like walking and cycling, and allowing certain PUVs to travel on routes

outside their franchise.

Next regular sessions

ROQUE said the proposed provision of the Bayanihan II still need a final approval of the IATF since it was only approved in principle by the policymaking body on Monday.

He said the Department of Finance (DOF) earlier said the maximum cost of the stimulus package should be capped to P140 billion only.

The Palace official said President Duterte currently has no request to Congress to hold a special session to tackle the pending bill.

“It seems it could be discussed during the regular [session] of Congress because, after all, the State of the Nation Address is just around the corner in July,” Roque said.

Congress will resume its session during Duterte’s next Sona on the third week of July.

Batasan or the Palace: Sona venue still uncertain Congress leaders, however, got signals the Palace may go for the option with the President doing the Sona “at the Palace.”

This, as President Duterte was reported to have gotten an 8.5 rating in his “war on drugs,”

which Sotto, who once headed the anti-drug agency, credited to Malacañang’s ongoing war against illegal drugs.

Apart from that, Sotto also cited the administration’s drive to “uplift the people’s welfare with a firm hand, something rarely seen from the President,” noting

that the communist insurgency was also seen to “lie low” under Duterte’s term.

Still, Sotto said “we must relieve ourselves of the pandemic problem, address transport issues and deal with peace and order more strictly.”

He added, in a mix of English and Filipino, that it would also be better if the Duterte government is to retain the General Community Quarantine

continued from a8

in some areas, noting that “some think that the problem is over so they became careless and dispense with precautionary measures.”

“The lockdown was effective because people realized it is the responsibility of all and not just the government,” Sotto said, suggesting that “we need to share responsibility to get past the contagion.” Butch Fernandez

Watch exiting POGOs, govt warned; foreign workers to lose permits continued from a8

SC World Development Group Ltd., is one of the two POGOs identified by the Philippine Amusement and Gaming Corp. (Pagcor) that have officially asked for cancellation of their offshore gaming licenses, according to reports.

Aside from SC World Development Group Ltd., another POGO reported to be exiting the country is Don Tencess Asian Solutions Inc. Also, Pagcor said 13 other service providers were also reported to have also closed down their operations and more will likely follow suit due to stringent tax rules from the BIR and the impact of movement restrictions amid the Covid-19 pandemic.

But the Department of Finance said these POGOs are not yet off the hook as the government vowed it will still go after its tax dues.

Also, Salceda said POGOs will still be liable under Philippine law as withholding agents of their income tax liabilities.

“At the same time, this development underscores why we need to codify into law our tax regime for POGOs. As I emphasized then, when I filed the POGO tax bill,” he said.

“It is important that we codify POGO taxation so that avoiding tax liabilities becomes tax evasion, and that allows us a whole host of other implied powers—from the ability to issue hold-departure orders, to the ability to use law enforcement to investigate suspected illegal POGO activities,” Salceda added.

Under the current system where Pagcor acts as some sort of a middleman for the franchise fees of POGOs, Salceda said there is an additional shroud of protection that makes it harder for the government to collect POGO taxes.

“The House, both majority and minority, are behind my POGO tax bill, and I invite the Senate to file their counterpart proposal, and the execu-

tive to certify my committee’s report as urgent,” he said.

Salceda’s House Bill 5267 would require POGOs to pay a 5-percent tax on gross receipts from their operations covered by the law granting their franchise.

Also, foreign employees working for POGOs would be presumed to earn P600,000 and pay a 25-percent tax on their salaries, wages, annuities, compensation, remuneration, honoraria, and allowances.

In May, the government allowed the partial resumption of operations of POGOs in an attempt to raise some revenues while several parts of the country remain under lockdown in a bid to curb the spread of Covid-19, but POGOs that were deemed not tax-compliant were prohibited from resuming their operations.

POGOs, however, are insisting that they are not liable to pay the 5-percent franchise tax since they are an offshore business.

PHL-Thailand cigarette dispute still unresolved before WTO

By Elijah Felice E. Rosales @alyasjah

T

HE lack of seating judges in the World Trade Organization’s (WTO) Appellate Body is hampering the Philippines’s bid to retaliate against Thailand for its noncompliance with the ruling on their cigarette dispute.

At the Dispute Settlement Body (DSB) meeting on Monday, it was reported the Philippines and Thailand are nowhere near resolving their differences over the next step on their cigarette case. What was reached during the meeting was the conclusion that the matter can only be resolved if the Appellate Body is functioning as usual.

The Philippines is trying to secure the WTO’s approval to suspend concessions on $594 million of Thai imports as a retaliation for Thailand’s disregard of the ruling on their cigarette dispute.

According to a Geneva trade official, the two Southeast Asian nations expressed their resolve to reach a solution. The Philippines, for one, raised again its willingness to resort to arbitration as stipulated under Article 25 of the WTO’s Dispute Settlement Understanding (DSU).

Likewise, it stood firm with its push to retaliate against Thailand, citing Article 22.2 of the DSU, for its continued noncompliance with the ruling issued nearly a decade ago.

For its part, Bangkok argued its appeals are pending the review of the Appellate Body, and that proceedings would have to stop for the meantime that the tribunal is nonoperational. Dubbed as the supreme court of world trade, the Appellate Body only has one member at the moment, and can only hear cases with a quorum of three seating judges.

The United States is blocking the nomination of any new member on frustrations against some decisions made by the Appellate Body, especially those related to its trade conf lict with China.

The European Union, as such, said both the Philippines and Thailand have the right to carry out their respective actions with regard their cigarette dispute.

However, all would be at lost for as long as the Appellate Body is lacking the quorum to review and decide on disputes.

“The EU said the dispute reflects the disruptive effect of a functioning Appellate Body is having on the rights of WTO members: the Philippines has the right to pursue the matter, and Thailand has the right to have its appeals reviewed,” the Geneva trade official said.

In 2008 the Philippines initiated dispute settlement proceedings against Thailand over wrongful values assigned to its cigarette exports.

The WTO in 2011 ruled in favor of the Philippines, to which Thailand appealed and lost in 2012. In spite of losing both the proceedings and the appeal, Thailand failed to implement measures consistent with what the WTO indicated in its decision.

In response, Manila deferred its option of retaliation at first and asked the WTO to investigate Thailand for its noncompliance instead.

Last year, the WTO’s compliance panels ruled that Thailand has yet to comply with the ruling, and any appeals thereafter would be resolved within 90 days. Thailand declined to cooperate with the Philippines in its efforts to settle the dispute, compelling it to go the hard way and use retaliatory rights against one of its neighbors in the region.

Editor: Angel R. Calso

The World BusinessMirror

Wednesday, July 1, 2020

A5

WHO: Countries complaining about contact tracing are ‘lame’

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ONDON—The head of the World Health Organization on Monday dismissed complaints from countries complaining that contact tracing is too difficult to implement as a control strategy for the coronavirus pandemic as “lame.”

The UN health agency has repeatedly advised countries that shutting down their Covid-19 outbreaks requires having a strong contact tracing program in place, a labor-intensive process of tracking down contacts of people with coronavirus to ensure those at risk isolate themselves.

In recent months, countries with large outbreaks of Covid-19, including Britain and the US, have said there are simply too many

contacts to trace for an effective system to be put into place.

Britain had vowed to have a “world-class” contact tracing system in place earlier this month.

But the UK ultimately ditched the digital app it developed for that purpose and politicians have acknowledged the program is not yet running at full strength despite recruiting thousands of workers.

In recent weeks, British health officials have said their contact

tracers are failing to reach about one quarter of people with the virus—leaving thousands of people free to pass on Covid-19.

At a media briefing on Monday, WHO Director-General Tedros Adhanom Ghebreyesus pointed to his emergencies director Dr. Michael Ryan as an example of someone willing to go to extraordinary lengths to conduct contact tracing, citing Ryan’s work—while wearing a bulletproof helmet and vest—during an Ebola outbreak in a part of Congo where armed groups had attacked and killed health workers.

“He believed he had to do everything to stop Ebola and to show that saving lives actually requires that level of commitment,” Tedros said.

Tedros said it wasn’t acceptable that some countries claimed there were too many contacts to trace and that the process itself was too difficult. He has previously lauded the contact tracing programs adopted by countries like South Ko-

rea, Singapore and China, which involved teams of health workers tracing tens of thousands of people and ensuring that those exposed to the virus were isolated.

Tedros said that well-resourced countries that aren’t fighting wars have little excuse for not carrying out good contact tracing.

“If contact tracing helps you to win the fight, you do it, even [when] risking your life,” he said. “If any country is saying contact tracing is difficult, it is a lame excuse.”

He noted that Tuesday would mark six months since WHO was first informed by China of an unusual cluster of pneumonia cases, the first sign of coronavirus’ emergence. The disease has since sickened more than 10 million people and killed about 500,000.

WHO said the pandemic was “accelerating,” particularly in the Americas.

“The hard reality is that this is not even close to being over,” Tedros said. “The worst is yet to come.” AP

States reverse openings, require face masks amid virus resurgence

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rizona’s Republican governor shut down bars, movie theaters, gyms and water parks on Monday and leaders in several states ordered residents to wear masks in public in a dramatic course reversal amid an alarming resurgence of coronavirus cases nationwide.

Among those implementing the facecovering orders is the city of Jacksonville, Florida, where mask-averse President Donald Trump plans to accept the Republican nomination in August. Trump has refused to wear a mask during visits to states and businesses that require them.

Arizona Gov. Doug Ducey’s order went into effect immediately and for at least 30 days. Ducey also ordered public schools to delay the start of classes until at least August 17. Most Arizona bars and nightclubs opened after the governor’s stay-at-home and business closure orders were allowed to expire in mid-May. Arizona health officials reported 3,858 more confirmed coronavirus cases on Sunday, the most reported in a single day in the state so far and the seventh time in the past 10 days that daily cases surpassed the 3,000 mark.

Since the pandemic began, 74,500 cases and 1,588 deaths stemming from the virus have been reported in Arizona.

“Our expectation is that our numbers next week will be worse,” Ducey said on Monday.

The state is not alone in its reversal.

Places such as Texas, Florida and California are backtracking, closing beaches and bars in some cases amid a resurgence of the virus.

In New Jersey, Gov. Phil Murphy announced Monday that he’s postponing the restarting of indoor dining because people have not been wearing face masks or complying with recommendations for social distancing. New Jersey has been slowly reopening, and on Monday indoor shopping malls were cleared to start business again.

Democratic governors in Oregon and Kansas said Monday that they would require

In this photo taken on June 27, medical personnel prepare to test hundreds of people lined up in vehicles in Phoenix’s western neighborhood of Maryvale, Phoenix for free Covid-19 tests organized by Equality Health Foundation, which focuses on care in underserved communities.

Arizona’s Republican governor shut down bars, movie theaters, gyms and water parks on Monday, June 29, and leaders in several states ordered residents to wear masks in public in a dramatic course reversal amid an alarming resurgence of coronavirus cases nationwide.

AP/Matt York

people to wear masks. Oregon Gov. Kate Brown’s order will require people to wear face coverings in indoor public spaces star ting Wednesday. Kansas Gov. Laura Kelly said she will issue an executive order mandating the use of masks in stores and shops, restaurants, and in any situation where social distancing of 6 feet (2 meters) cannot be maintained, including outside.

The order goes into effect on Friday.

“The evidence could not be clearer: Wearing a mask is not only safe, but it is necessary to avoid another shutdown,” Kelly said.

Idaho is moving in a different direction, at least when it comes to the elections.

Despite the continuing spread of the virus, state elections officials said Monday that they would allow in-person voting—as well as mail-in ballots—for August primaries and the November general election, the Idaho

Statesman reported. Idaho’s May 19 primary was the first statewide election held by mail only. The primary had record voter turnout.

In Texas, a group of bar owners sued on Monday to try to overturn Republican Gov. Greg Abbott’s order closing their businesses. They contend Abbott doesn’t have the authority, and they complained that other businesses, such as nail salons and tattoo studios, remain open.

“Gov. Abbott continues to act like a king,” said Jared Woodfill, attorney for the bar owners.

“Abbott is unilaterally destroying our economy and trampling on our constitutional rights.”

But Democratic New York Gov. Andrew Cuomo said that Abbott is on the right path, and he added that Trump should order the wearing of masks.

“States that were recalcitrant...are doing a 180, and you have the same states now wearing masks,” Cuomo said. “Let the

president have the same sense to do that as an executive order, and then let the president lead by example and let the president put a mask on it, because we know it works.”

One of Cuomo’s Republican counterparts, Utah Gov. Gary Herbert, on a conference call with Vice President Mike Pence and members of the White House coronavirus task force, also asked Pence and Trump to issue a national call to wear masks.

Republican Florida Gov. Ron DeSantis has opposed a statewide mask requirement but said in response to Jacksonville’s action that he will support local authorities who are doing what they think is appropriate.

I n re ce nt we e k s, t h e R e p u b l i c a n s moved some of the convention pageantry to Jacksonville after Democratic Gov. Roy Cooper of North Carolina objected to the holding of a large gathering in Charlotte without social-distancing measures.

Less than a week after Jacksonville Mayor Lenny Curry said there would be no mask requirement, city officials announced on Monday that coverings must be worn in “situations where individuals cannot socially distance.”

White House spokesman Kayleigh McEnany responded by saying the president’s advice is to “do whatever your local jurisdiction requests of you.”

Elsewhere around the world, Britain reimposed lockdown restrictions on the city of Leicester after a spike in cases, ordering the closing of schools along with stores that do not sell essential goods.

The European Union is preparing a list of 15 countries whose citizens will be allowed to visit the bloc beginning Wednesday, Spain’s foreign minister, Arancha Gonzalez Laya, told the Cadena SER radio network. Because of the resurgence in the US, America may not be on that list.

“This is not an exercise to be nice or unfriendly to other countries. This is an exercise of self-responsibility,” she said. AP

New Zealand cancels Apec summit, will lead it virtually

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ELLINGTON, New Zealand—New Zealand on Tuesday canceled its plans to host a major meeting of US and Asian leaders next year because of the coronavirus, opting instead to lead a virtual summit.

New Zealand was scheduled to host the Asia-Pacific Economic Cooperation forum in Auckland.

The event would have brought thousands of people to the country throughout the year, culminating in a leader’s week in November 2021.

Apec focuses on trade issues, although it also provides a chance

for world leaders to catch up. Its 21 members include the US, China, Japan, South Korea, Mexico, Indonesia and Hong Kong.

Last year, Chile canceled the Apec leaders’ meeting because of violent anti-government protests.

This year Malaysia has been hosting virtual Apec meetings.

New Zealand’s Deputy Prime Minister Winston Peters said it was necessary to cancel next year’s summit now for planning and security reasons.

“There were people who would be coming in months and months in advance, all caught by the Covid-19 situation,” Peters said. “So we had to

accept the plain fact that we couldn’t do it, other than by the mechanism we’re going to use now.”

New Zealand has been praised globally for its health response to the virus. After a strict lockdown, the nation of 5 million people has eliminated community transmission, at least for now. Its 22 active cases are all quarantined travelers who returned from virus hot spots including the US, India, Pakistan and Britain.

New Zealand has shut its borders to almost everybody except returning citizens and residents, who are required to spend two weeks in quarantine.

Auckland Mayor Phil Goff said he understood the reasoning behind the cancellation.

“I am disappointed that Auckland won’t physically host Apec, but the health of our country has to come first,” Goff said in a statement.

New Zealand had already run into problems with an expensive convention center it was building to host the summit. Workers accidentally set the roof on fire in October. It burned for several days, sending a noxious plume of smoke over the city and forcing organizers to find alternative venues. AP

A6 Wednesday, July 1, 2020 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Philippine war against stunting

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efore the pandemic struck the Philippines and the lockdown was imposed to contain the spread of Covid-19, the National Nutrition Council already approved the theme for this year’s celebration of National Nutrition Month: “Batang Pinoy SANA TALL... Iwas stunting, SAMA ALL!”. The NNC Technical Committee greenlighted the theme for the 46th Nutrition Month campaign this July on January 30, weeks before Covid-19 spread in local communities. The government had hoped that the theme would raise awareness and mobilize action to address stunting among Filipino children.

Stunting among children, which is primarily caused by poor nutrition, repeated infection, and inadequate psychosocial stimulation, is a serious problem in the country. This is because the Philippines is 1 of the 10 countries with the most stunted children in the world, according to NNC. Government data indicated that 1 in 3, or 30 percent of Filipino children zero-59 months old are stunted, with stunting highest among 12-23 months at 36.6 percent.

The NNC said stunting can lead to low educational performance, lost productivity, increasing risk of developing noncommunicable diseases and even death. It can cost the Philippines anywhere from 1.5 to 3 percent of the country’s gross domestic product if not addressed. The good news is that stunting among children can be prevented with proper nutrition and care in the first 1,000 days from the period of conception, or until the child’s second birthday.

Unfortunately, the pandemic has presented a huge challenge to communities and policy-makers to improve access of poor residents to nutritious food.

The implementation of quarantine measures to contain the spread of Covid-19 made some food items more expensive due to mobility restrictions. As Luzon and other parts of the country were placed under lockdown for nearly three months, millions of workers also lost their jobs, making it harder for families to purchase nutritious food.

This year’s observance of Nutrition Month is an opportune time for the government to promote and educate Filipinos about food programs, such as urban gardening, that will help augment food supply in cities. These urban gardens can serve as alternative sources of vegetables badly needed not only by children, but also by adults, during the pandemic. Experts have recommended the consumption of nutritious food items, such as fruits and vegetables, to fortify the body’s immune system so it can fight the virus that causes Covid-19.

Local government units should work with communities to establish these vegetable gardens and other mechanisms to enhance their locale’s food security. LGUs should also heed the prescription of the Department of Agriculture (DA) to craft their respective food security plan. This recommendation was made after Zamboanga City, Basilan, Sulu and Tawi-Tawi grappled with a rice crisis in 2018 (See, “Piñol asks local governments to craft food security plan,” in the BusinessMirror, September 14, 2018).

The food security plan must include the topographical and geographical map of the town or city; total population and land area; existing and potential production areas for rice, corn, vegetables, poultry and livestock; and food sufficiency levels. It should also identify the interventions required to achieve food sufficiency in their locales and possible sources of food supply if the areas are not suitable for, and capable of, farm production.

During the lockdown, a number of government programs had to take a backseat to the fight against the virus that has infected 36,438 Filipinos and killed 1,255 as of June 29, according to data from the Department of Health.

Policy-makers and communities should hasten the roll out of initiatives that will get us back on track and finally win the war against malnutrition and stunting. This, however, will not happen sans a concerted effort among all stakeholders to boost food security.

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Aurora C. Ignacio

All About Social Security

T

he Covid-19 pandemic continues to wreak havoc not only on the health and well-being of people, but more so on their economic and financial stability.

Several companies have decided to downsize their work force while others made the hardest decision to declare permanent closure.

Meanwhile, other business sectors such as real estate, manufacturing, transportation, tourism, hospitality, among others, are not yet fully operational in compliance with the Inter-Agency Task Force guidelines. As a result, more Filipino workers across the country have gone jobless amid this global health crisis.

The national and local governments have extended financial aid especially to the poorest of the poor, senior citizens, persons with disabilities, single parents, including the workers from small and large businesses, and self-employed individuals. However, the real-life situation shows that government subsidies may not be sufficient for some who have large numbers of

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immediate family members, or even extended family members that they need to feed. There are other financial obligations—monthly rents, utilities, and even debts to settle.

Another sad truth is that some of our kababayans didn’t receive government subsidies. We’ve seen these stories on quadmedia and it’s definitely not humane to turn a blind eye and do nothing.

The Social Security System (SSS) has now made available its Calamity Loan Assistance Program (CLAP) to help its members overcome the difficulties brought about by the pandemic. Online application started on June 15, 2020, which will run for three months only.

It took some time for SSS to launch the online CLAP application as its web site and information technology resources had to prioritize the implementation of the Small Business Wage Subsidy Program of the

The Social Security System has now made available its Calamity Loan Assistance Program to help its members overcome the difficulties brought about by the pandemic. Online application started on June 15, 2020, which will run for three months only.

national government. Now that the SBWS is nearing completion, the SSS has launched the CLAP to give further aid to its members.

All SSS members who have a recorded Philippine residence or office address may apply for the CLAP. To qualify, the members must be registered in the My. SSS facility in the SSS web site as only online applications will be accepted. They must have at least 36 monthly contributions, six of which should be posted within the last 12 months before the month of application. They should not have been granted any final benefit like total permanent disability or retirement, and must not have an outstanding loan under the Loan Restructuring Program (LRP) or any previous CLAP. The loan amount shall be the average of the last 12 monthly salary credit—rounded up to the nearest thousand—or the amount applied for, whichever is lower.

Considering the current eco-

nomic difficulties, the loan amortization period has been extended from 24 months to 27 months, inclusive of the three months moratorium period. That means the member shall start paying only on the fourth month following the date of the approval of the loan. Deadline for the payment shall be on or before the last day of the month following the applicable month.

The interest rate has been lowered to 6 percent per annum, instead of the usual 10 percent for regular salary loans. No advanced interest shall be charged, but a service fee of 1 percent of the loan amount shall be deducted from the proceeds of the loan. Any excess payment for the amortization shall be applied to the outstanding principal balance.

As SSS aims to distribute its finite resources equitably, members who avail themselves of the CLAP will not be allowed to apply for future calamity loans until the CLAP is fully paid.

Finally, members need to keep in mind that loans have to be repaid as agreed upon.

Let us all continue praying until this pandemic is over.

Aurora C. Ignacio is SSS president and chief executive officer.

We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss. gov.ph for topics that you might want us to discuss.

Reopen schools to secure learning and potential of an entire generation

T. Anthony C. Cabangon

BusinessMirror is published daily by the Philippine Business Daily Mirror

MEMBER OF

SSS assistance during the Covid-19 pandemic

By Karin Hulshof & Shigeru Aoyagi

G

lobal school closures in response to Covid-19 has exacerbated an already worrisome learning crisis—some 325 million children in many countries across East Asia and the Pacific have now missed more than two months of school.

This has placed an unprecedented risk to children’s education, protection and wellbeing, especially for the hardest-to-reach, the most marginalized and the 35 million who were already out-of-school. Some of these children may never return to school. Any gains made in education in recent years are at risk of being reversed.

Governments have attempted to provide continuity of education through online learning, mobile phones, television, radio and printed materials with varying success.

While Covid-19 has posed challenges in delivering education to all, it has also provided opportunities for educators to innovate and to take leaps into the unknown. This pandemic and disruption also has the potential to spark creative new partnerships to build more resilient education systems for the future.

Part of the solution is focusing

on remote learning opportunities both to mitigate the current disruption and build more open and flexible education systems in the coming years. The measures include virtual and online learning, but crucially must consider low-tech and no-tech solutions for children and youth who have little or no Internet access and are among the most vulnerable to education disruption. Distance learning is a complement, not a replacement, for school enrolment.

With the situation in the region stabilizing, we urge governments to reopen schools as soon as possible.

Schools do much more than teaching children how to read, write and count. They provide nutrition, health and hygiene services; provide mental health and psychosocial support; and dramatically help to reduce the risk of violence, teenage pregnancy and child marriage.

With the situation in the region stabilizing, we urge governments to reopen schools as soon as possible. Schools do much more than teaching children how to read, write and count. They provide nutrition, health and hygiene services; provide mental health and psychosocial support; and dramatically help to reduce the risk of violence, teenage pregnancy and child marriage.

We do not yet have enough evidence to measure the impact of school closures on transmission rates of Covid-19 and public health decisions will continue to be informed based on new data about the virus. What we do know already is that the longer schools stay closed, the risks to children’s learning, safety and wellbeing are growing daily.

We understand that to reopen schools, governments need to make careful choices based on health and social and economic considerations.

To help them make those decisions, United Nations International Chil-

dren’s Fund, United Nations Educational, Scientific and Cultural Organisation, the World Bank and the World Food Program have issued new guidelines on reopening schools. The framework for reopening schools is based on safe operations, focus on learning, including for the most marginalized, and wellbeing and protection. All of these pillars require broad-based partnerships to provide both the policy and financial support for an inclusive and equitable response.

Across the region, policy-makers are considering the timetable of lifting school closures. There are common sense policy measures that can assist in this process, such as staged re-openings with attendance for only a few days a week or for particular grades, clear physical distancing and personal hygiene measures, and adapted personnel and attendance regulations. Clear guidance at the national level is needed, in particular to safeguard vulnerable students and staff.

The longer children stay out of school, the less likely they are to return. These risks are particularly acute for girls and young women, See “Reopen,” A7

Opinion BusinessMirror

www.businessmirror.com.ph

Wednesday, July 1, 2020 A7

It’s Zuckerberg and My reaction to the coco levy story published by a major daily Facebook’s time to bend

By Tae Kim & Alex Webb | Bloomberg Opinion

M

ark Zuckerberg has a problem, and he can fix it.

Public furor over Facebook Inc.’s content policies has led some of its biggest advertisers to take action, with brands from Starbucks Corp. to Unilever, Coca-Cola Co. and Verizon Communications Inc. all vowing to pull ads from the socialmedia giant’s namesake Facebook platform as well as Instagram for at least the month of July. The move was initially spurred by a campaign led by a coalition of civil rights groups—including the AntiDefamation League and NAACP—to force Facebook to do more to curb hate speech and language promoting violence. As the effort has gained traction, the numbers joining the boycott are increasing on a daily basis. On Monday afternoon alone, Best Buy Co. said it would pause its ad spending on Facebook, while Axios reported that Microsoft Corp. had suspended its advertising as well.

Facebook has come in for criticism about its practices before and got past it largely by riding out the negative publicity while offering some incremental fixes. For example, Facebook already survived the Cambridge Analytica data-privacy scandal a couple years ago without serious long-term ramifications. And so, Zuckerberg may be tempted to hunker down this time as well. On a purely short-term financial basis, it would make sense. According to Pathmatics data, the top 50 advertisers on Facebook accounted for just 4% of the company’s sales last year. The vast majority of the rest comes from millions of small- and medium-sized businesses that are less affected by any public shaming from activists, and arguably more reliant on the exposure they get from buying ads on Facebook and Instagram. But a decision based purely on dollars and cents would be short-sighted in this instance, and bad for business.

More and more, it’s becoming clear that the recent wave of protests over racial injustice isn’t a short-lived phenomenon, but one that appears to reflect a sea-change in perception and beliefs, and—like the #MeToo movement before it—demands a change in behavior. The backlash that started at the grassroots level and moved on to corporate action is likely to move next to the political and regulatory sphere. Wouldn’t it be better for Facebook, already in the public glare, to bend and make its own meaningful policy changes instead of being forced to accept more punitive prescriptions at further potential damage to its reputation and business?

Facebook is already facing growing regulatory scrutiny in the US. Politicians from both sides of the aisle have made proposals to reform Section 230 of the Communications Decency Act, which shields Internet companies from legal liability over user-generated content. For now, Republicans and the Department of Justice are focused on issues of conservative speech censorship, while Democrats have asked for the faster removal of misinformation and false claims inside political ads. The disparate points of emphasis likely means nothing will happen in Congress before the November election.

However, if one party controls both houses of Congress and the White House next year, the probability of regulation will rise considerably.

In the near term, the risk for Facebook may be greater from Europe than the US. The region’s authorities have identified antitrust as the more effective way to tackle Silicon Valley’s shortcomings than regulation, whose limits have been exposed by the General Data Protection Regulation that kicked in two years ago. It has done little either to change the business practices of Google or Facebook, or to reduce their market power. And discussions about data or content are always questions of regulation, rather than antitrust.

But antitrust is far more of an existential threat to Facebook than is regulation. That’s not simply because it could, in the most extreme circumstances, result in a breakup of the Menlo Park, California-based company. It’s because antitrust by definition seeks to tackle a company’s business practices.

In the near term, the risk for Facebook may be greater from Europe than the US. The region’s authorities have identified antitrust as the more effective way to tackle Silicon Valley’s shortcomings than regulation, whose limits have been exposed by the General Data Protection Regulation that kicked in two years ago. It has done little either to change the business practices of Google or Facebook, or to reduce their market power.

Just last week, Germany’s highest civil court ruled that Facebook must stop logging browsing activity outside of its platforms without users’ explicit permission, and that such permission couldn’t be a condition of using its other services. Crucially, though, the decision was based not in data protection but antitrust laws: it said that Facebook was abusing its market power to force users to accept the terms because it is the dominant social network. And the ruling fundamentally attacked the company’s business model, which is built on using such data to target ads effectively. An effort by Britain’s Competition and Markets Authority is even less ambiguous: It’s carrying out a study into online platforms and digital advertising.

While the UK is no longer a member of the European Union, the bloc’s regulators are following the findings of the study closely. After years of tackling Google, Facebook is now high on the European agenda. The two firms’ dominance of digital advertising is fueled by their low incremental costs. Tackle their business models, and you might resolve the harmful content problem, runs the argument. The EU plans new rules by the end of the year on content regulation and platform liability, while Margrethe Vestager, the EU’s antitrust and tech chief, is seeking new powers to break companies up. And the European Commission has more power than US regulators: it can impose decisions unilaterally, which companies can then challenge in court. In the US, regulators generally need court approval first before any ruling is imposed.

So, Zuckerberg needs to acknowledge the growing uproar is symptomatic of new and lasting societal, political and regulatory crosscurrents. While he has long been adamant it is not Facebook’s job to be the “arbiter of truth,” there is no better climate, in the face of pressure from advertisers, politicians and civil rights groups alike, to alter that stance—he can change tack without losing as much face. Serious changes are needed— from being more effective in taking down hate speech quickly to clamping down on false claims and disinformation from all users. Such moves would help the company get ahead of future actions from regulators. That would be wise as government regulation will likely be far more punitive—whether it be from the European Union or a potentially new American administration.

Simply, Facebook’s traditional hands-off approach isn’t good enough anymore. It’s time for Zuckerberg to show some real leadership.

Dr. Jesus Lim Arranza

MAKE SENSE

H

aving spent a big part of my professional career in the coconut industry, I am privy to some government policy reforms that had underlying impact on the coconut industry, most especially the Coconut Levy Fund under PD 276 dubbed Coconut Consumer Stabilization Fund (CCSF).

Here are the factual clarifications of the following statements that saw print in one of the country’s major dailies on June 18, 2020 that I find to be inaccurate: 1. That President Corazon Aquino asked the PCGG to run after the ill-gotten wealth of Marcos and his cronies including the stake of Cojuangco in San Miguel Corp. (SMC).

Truth: The above statement is correct. However, inadvertently or advertently, they omitted the fact that the Supreme Court already ruled in favor of Cojuangco. In Republic of the Philippines vs. Sandiganbayan GR 166859, the Supreme Court affirmed the Sandiganbayan ruling that the block of shares in SMC in the name of respondent Eduardo Cojuangco is the exclusive property of Cojuangco.

2. That upon the proposal of then Defense Minister Juan Ponce Enrile, Marcos imposed taxes which they called Coco levy on the production of coconut, the proceeds of which were supposed to fund the coconut industry’s development.

Truth: The Coco levy, used to subsidize the millions of consumers buying coconut-oil based products, was instituted under PD 276 entitled Coconut

Consumers Stabilization Fund (CCSF).

The objective is to prevent the spiraling of prices of coconut oil-based products in the Philippines for Filipino consumers, through a subsidy mechanism. (Those who are interested to know how the levy was collected and disbursed can write to the undersigned).

3. That Marcos tapped Cojuangco to administer the funds, but the coconut farmers contend that he funneled the money to set up a bank.

Truth: The Coco levy fund under PD 276 was formulated and managed by the private sector, the United Coconut Associations of the Philippines, which held office in Ermita, Manila.

The Coconut Consumers Stabilization Committee created by PD 276 was composed of the late Jose “Pepot” Eleazar of Cocofed, myself as head of the Coconut Oil Refiners Association, and the representative of then President Ferdinand E. Marcos to the coconut industry, the late General Gregorio Fider, among others.

However, all the documents and equipment of CCSF in its Ermita office were moved to the Philippine Coconut Authority office in three military 6 x 6 trucks upon the instigation of PCA assigned Military supervisor Col.

Rodrigo Gutang, saying that CCSF was part of the government. At that time, Cojuangco was not even known yet in the coconut industry.

On the comment of the farmers that this was used by Cojuangco to buy the bank, they must be referring to RA 6260 which was passed by Congress prior to PD 276, authorizing the Cocofed to collect levy in exchange for a coco-fund receipt, with the aim of raising P100 million to finance the creation of a financial institution for the coconut farmers.

4. That when Cojuangco returned from exile, he expanded SMC by buying the local Coca-Cola franchise; Truth: Coca-Cola was part of San Miguel Corp. and when Cojuangco returned to the Philippines, it was sold by San Miguel. Hence, today, it’s no longer part of SMC. As a backgrounder, in 1973 there was a shortage of fats and oil in the world market that drove prices up. As a consequence, this created a shortage of coconut oil based products in the domestic market, prompting then Minister of National Defense Juan Ponce Enrile to call for a meeting with all coconut industry leaders at Camp Aguinaldo.

That meeting was also attended by then Trade Secretary Troadio Quiazon Jr., then PNP Chief General Fidel V. Ramos, Agriculture Undersecretary Jose Drilon and Undersecretary Collantes among others. Enrile asked us why there was a shortage of coconut oil based products in the country, even as he also asked why only the pint-size cooking oil was under price control.

In response to Enrile’s question, I explained that under the socialized pricing mechanism, the pint-size cooking oil, which is consumed by the lower income group, could easily

be subsidized by the bigger sizes that are consumed by the more affluent consumers. Thereafter, Enrile asked Quiazon to place all sizes of cooking oil under price control.

With that, Enrile announced that we will meet again after 72 hours and he expects the coconut sector to come up with a solution to the shortage problem, even as he also told us that if we cannot find a solution, he will ban the export of copra.

When we were about to leave the hall, Ramos stood up and said, “Gentlemen, if you come back after 72 hours and you don’t have a solution to the problem, you have to turn to the right and the right is the stockade.”

Ramos’ words sent shivers to us since it was barely a year and a half after the declaration of Martial Law in the country.

Having heard that, Drilon said, “Maselan na itong usapan” (This is a sensitive topic), then he invited our group to proceed to his office at the Agriculture Department to discuss the possible solution to the problem. And after thorough discussions, the group agreed that since 80 percent of the country’s production of coconut is exported and enjoying windfall profits, it can easily subsidize the 20 percent in the domestic market.

After the meeting with Drilon, there was no subsequent meeting at Camp Aguinaldo. And thereafter, President Ferdinand E. Marcos issued PD 276.

Dr. Jesus Lim Arranza is the chairman of the Federation of Philippine Industries and Fight Illicit Trade; a broad-based, multisectoral movement intended to protect consumers, safeguard government revenues and shield legitimate industries from the ill effects of smuggling.

Response of health insurers to the Covid-19 pandemic Atty. Dennis B. Funa

INSURANCE FORUM

T

he Insurance Commission conducted a survey on health insurers to determine their overall response to the Covid-19 pandemic. The survey was conducted from April 16 to May 8, 2020. Surveyed were life and non-life insurance companies, Mutual Benefits Associations (MBAs) and Health Maintenance Organizations. Owing to the sudden emergence of the pandemic, which was declared by the World Health Organization (WHO) on March 11, 2020, the Commission was blind to the real situation on the ground. Moreover, it was unprecedented in contemporary history. There was a real need to find out what was happening, and a survey was the only way to find out. The life and MBA sectors had 100 percent respondents, the non-life had 96 percent and the HMO sector had 89 percent respondents. Out of those surveyed, 58 percent issued health insurance products, of which 61 percent covered pandemic cases.

The health insurers surveyed paid a total of P326.95 million in benefits (all figures were as of the last date of the survey). Of this amount, P307.26 million was in payment of contractual obligations.

P19.68 million was ex-gratia, meaning paid out of the generosity of the insurer. A total of P308.16 million in insurance claims were made. The benefits can be classified as medical benefits, death benefits, and other benefits.

It is worthy to note that a majority of those surveyed (93 entities) stated that they will consider or continue to provide coverage for pandemic cases in the future as they believe that it is part of their obligation to provide this kind of critical and much-needed assistance to their clients. In the life

Reopen. . .

continued from A6

learners with disabilities, ethnic minorities, migrant learners and other vulnerable groups. We ask governments to balance children’s best interests with overall public health considerations.

We urge countries to seize the

benefits, and critical illness benefits.

For medical benefits, P239.5 million was paid for contractual obligations, while P19.2 million was paid ex-gratia.

The highest medical benefits went to in-patient benefit with claims amounting to P124.3 million. Of this amount, P93.26 million was for contractual obligations, while P16.73 million was paid ex-gratia.

The second highest benefit went to critical illness with P23.22 million in claims. Out-patient benefit totaled P74.89 million. Medical reimbursement benefit amounted to P130 million (all from the life sector), and the daily hospitalization benefit amount to P0.87 million.

Benefits paid by sector

Let us break down the P307.26 payments pie. Of this amount, P258.8 million was claimed for Medical Benefits. The medical benefits include in-patient, out-patient, medical reimbursement, daily hospitalization

The biggest responder to the pandemic, in terms of Medical Benefits, is the HMO sector with P231.36 million in claims paid. This is 89.40 percent of the P258.8 million total Medical Benefits claims paid. The life and non-life sectors paid P14.44 million and P12.99 million, respectively, in Medical Benefits.

The life insurance sector, expectedly, paid the most Death Benefits at P59.14 million, or 96 percent of the total P61.54 million death benefits paid. The MBAs and the HMOs paid P2.01 million and P0.39 million, respectively.

The life insurance sector also paid the most for Other Benefits (which include travel inconvenience, travel cancellations and delays, cash assistance, and others) at P4.45 million, or 67.32 percent of the total P6.61 million Other Benefits paid. The non-life and the MBA sector paid P1.51 million and P0.35 million, respectively.

opportunity to open up better, use the new modalities created or experimented with during the crisis, equip teachers with new skills, create safer learning environments and focus on those children who could be deprived of the opportunity to return to school. At stake is the fundamental human right to education and futures of hundreds of millions of learners. We also know that the

welfare of societies depends on inclusive and quality education in terms of reducing inequalities, improving health outcomes and increasing social cohesion.

We are committed to help countries recover, rebuild and reimagine their education systems. When schools reopen, we must make sure that every child is included and learns; every child has access to

sector, 22 life insurers expressed willingness to provide coverage for pandemics in the future, 8 answered they would be unwilling. It is more divided in the non-life sector, with 26 non-life insurers willing to provide pandemic coverage in the future and 28 unwilling. For the MBAs, 26 out 33 licensed MBAs said that they would be willing to cover pandemics in the future. Nineteen HMOs affirmed that they will continue covering pandemics in the future.

Medical benefits

Life insurance perspective on the pandemic

A total of 26 life insurers, out of the 30, sell health insurance products, of which 22 cover pandemics. Nonetheless, two of the life insurers which excluded pandemics will still accommodate Covid-19 related claims due to the call from the Commission to cover such claims (CL 2020-19 and 2020-24). Confirmatory testing is covered by nine life insurers. Eighteen life insurers have reported 887 Covid-19 related claims.

Non-life insurance perspective on the pandemic

FIFTY-four out of 56, or 96 percent, of the non-life insurers responded to the survey. And 27 of the respondents confirmed that they issue health insurance products but only 15 of them covered pandemics.

Confirmatory testing is covered by 11 non-life insurers. Seven non-life insurers have reported 444 Covid-19 related claims.

MBA perspective on the pandemic

All 33 MBAs responded to the survey. Of the total number of MBAs, only six issue health insurance products. And only four of them cover pandemics. One MBA which excludes pandemics manifested that it will nonetheless cover pandemics in view of the Commission’s call to cover them.

HMO perspective on the pandemic

TWENTY-five out of 28 HMOs responded to the survey. Ten of those surveyed cover pandemics, subject to maximum limits. Confirmatory testing is covered by 11 HMOs. Fourteen HMOs have reported 2,514 Covid-19 related claims. school-based health, hygiene and nutrition services; and every child is connected to the Internet. Without this we risk undermining the learning and potential of an entire generation of children.

Karin Hulshof is Regional Director of Unicef East Asia and Pacific and Shigeru Aoyagi is Director of Unesco Asia and Pacific Regional Bureau for Education.

A8 Wednesday, July 1, 2020

Batasan or the Palace?

Sona venue still uncertain

M

ALACAÑANG is mulling over other options for President Duterte’s traditional State of the Nation Address (Sona), as both the Palace and Congress balance health concerns amid the Covid-19 pandemic with the legal requirements and traditions when the Chief Executive addresses a joint session of senators and congressmen at the Batasan complex.

When lawmakers reconvene plenary sessions on July 27, the options are to have the President deliver his Sona following traditions at the Batasan plenary hall, or deliver it before Congress leaders with Duterte at the Palace.

“All [options] mean live [coverage] in the area where it is held,” Senate President Vicente Sotto III said on Tuesday in an interview with radio DWIZ, pointing out that “all senators or at least 12 should be in attendance because we need a quorum.”

Sotto, however, voiced hopes they will go for the first option with the three leaders (President, Senate President and Speaker of the House) at the Batasan, where the Chief Executive traditionally delivers his annual Address.

The Senate President indicated they are still hoping “the Palace will go for the option where the three leaders—the President, Senate President and Speaker of the Hous—will be at the Batasan.”

Continued on A4

Watch exiting POGOs, govt warned; foreign workers to lose permits

F

By Samuel P. Medenilla @sam_medenilla & Jovee Marie N. dela Cruz @joveemarie

OREIGN nationals (FN) employed by Philippine Offshore Gaming Operators (POGOs) that will shut down their local operations will automatically lose their work permits.

This, as the chairman of the House Committee on Ways and Means on Tuesday asked the government to closely monitor the exiting POGOs, as their closure may be used by some as a “tactic” to reopen under a different declared ownership.

The Department of Labor and Employment (DOLE) issued the reminder on the automatic loss of the FN’s work permits amid reports that two POGO firms are now eyeing to end their domestic operations due to tax issues.

SOUTHWEST MONSOON AFFECTING THE WESTERN SECTION OF LUZON. as of 4:00 am - June 30, 2020

“Their [permits] will be canceled automatically. They will no longer h ave t he r ight to work since their operator will leave [the country],” said Labor Secretary Silvestre H. Bello III on Tuesday.

However, he said the affected FNs could apply with other remaining POGO firms that are compliant with local regulations and are paying the right taxes.

FNs who will be working in the country for more than six months, or for certain industries

like POGOs, are required to get an Alien Employment Permit (AEP) from DOLE. As of May, DOLE reported there were 18,701 AEP holders in the POGO industry.

The Philippine Amusement and Gaming Corp. (Pagcor) earlier announced that offshore licensee SC World Development Group Ltd.— a unit of Macau’s gambling giant SunCity Group—and Don Tencess Asian Services Solutions Inc., a local licensee, are now in the processing of ceasing their operations in the country.

The Department of Finance (DOF), however, maintained that both companies will still be required to pay their tax dues even if they shut down their operations.

For his part, Bello said they are still awaiting Pagcor’s report on the said closure of the two POGO firms.

Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) urged DOLE to ensure all of workers, including FNs, who will be affected by the closures, will be

given government aid.

“Reports say that some 140,000 workers will be affected by these closures, and at least 108,00 of them are foreign workers,” Sentro Chairman Daniel L. Edralin said in a statement.

“The foreign workers affected by the closure of POGOs should also be taken care of as our affected migrant workers deserve humane treatment in their respective countries of work if they are to be repatriated,” he added.

Ruse to evade taxes

IN urging the government to track the POGOs that have expressed intent to exit the country, Albay Rep. Joey Sarte Salceda, the House Ways and Means panel chairman, said, “[They may do this reopening] under different ownership with the real owners and operators being able to evade previous tax liabilities.”

Earlier, the lawmaker said the estimated tax liabilities of POGOs are now at P42 billion.

Continued on A4

Experts: Amid crisis, shift funds, efforts to blue economy

By Elijah Felice E. Rosales @alyasjah

GROUP of mu lt id isc iplinary experts is proposing a three-pronged approach in developing the country’s production activities at the time of economic recession due to the coronavirus pandemic, and it involves shifting funds and programs toward the blue economy.

In a white paper, the Brain Trust Inc. laid out what it deemed as crucial strategic imperatives to maximize production capacities that would enable survival in a time of crisis. The experts behind the group said now is the best time to systematize, scale and shift the agriculture and fisheries sectors to make them sustainable.

Under the “systematize” pillar, Brain Trust suggested that the government design a recovery plan that would serve as foundation for long-term sustainability of the agri-fisheries sector.

It said the National Economic and Development Authority (Neda) should adopt a systems checklist of key drivers of climate-change vulnerabilities. This would give the Neda Board the criteria in approving development programs for the reduction of these vulnerabilities.

Brain Trust also urges the Neda to formulate a climate-change vulnerability reduction strategy to serve as basis for the public sector fiscal program and yearly budgeting cycles.

In the scale pillar, Brain Trust recommended moderating the utilization of living resources to within their ability to allow them to replenish and maintain stability.

In particular, fish catching should be allowed only within the sustain-

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able yields of each species, which should result in the maintenance of fishermen income and well being of the water resources.

“As climate-related risks to oceans and seas get more severe, productivity would likely decline, and the stability and sustainability of marine species and ecosystems would likely diminish,” the Brain Trust paper read.

As for the “shift” pillar, the group argued there is a need for the government to refocus the country’s production concentration from the coastal and irrigated lowlands to the rain-fed uplands and out to the oceans and seas. It explained that coastal farmlands are at high risk of sea-level rise and saltwater intrusion.

As such, it said it would be wise to allocate funds for the establishment of large upland rice estates, as well as provide housing and support services for lowland rice farmers.

Moreover, the gover nment is being advised to utilize the 200 million hectares of seas and oceans that the archipelago has.

Brain Trust said research and development efforts on how the production sectors can shift to the blue environment should be prioritized.

“In short, we must shift the bulk of our primary productivity from the area limited brown to our much vaster blue environment,” the paper read.

Brain Trust Inc. is a multidisciplinary think tank founded by experts that include former Neda chief Cielito Habito. The other founders are Ella Antonio, Roehlano Briones, Maria Lourdes Lagarde, Vincent Lazatin, Ben Malayang III, Marian Pastor-Roces, Danilo Songco, Jose Maria Lorenzo Tan and the late Mario Taguiwalo.

25 cities outside NCR get backing for IT-BPM

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HE government and the private sector have identified 25 areas across the Philippines that will receive immense support for the development of new information technology and business process management (IT-BPM) hubs as part of efforts to boost investment and livelihood generation in the countryside.

The IT and Business Process Association of the Philippines (Ibpap) on Tuesday announced the 25 cities nationwide that will get assistance from both state and the private sector for the setup of new IT investments. Ibpap President and CEO Rey E. Untal said these locations will serve as the countryside alternatives to Metro Manila for IT-BPM investors.

In alphabetical arrangement, these 25 digital cities are: Balanga; Batangas City; Cabanatuan; Dagupan; General Santos City; Iligan City; Iriga; Laguna cluster of Los Baños, Calamba and San Pablo; Laoag City; Legazpi City; Malolos; Metro Cavite; Metro Rizal; Olongapo City; Puerto Princesa; Roxas City; San Fernando, La Union; San Fernando, Pampanga; San Jose del Monte; Tacloban; Tagbilaran; Tarlac City; Tuguegarao City; Urdaneta; and Zamboanga City.

“They will receive the support of the DICT [Department of Information and Communications Technology], LGUs, industry leaders and academe, combined with the assistance of these multiple stakeholders, to ensure progress in terms of institutional development, talent development, infrastructure development, and marketing and promotion,” Untal explained.

With the identification, these 25 cities are expected to take much of the expansion projects in the countryside of existing IT firms operating in Metro Manila.

“We will hopefully motivate existing investors to expand to these places, attract new investors to them and in general help in their economic development,” Untal said.

Leechiu Property Consultants CEO David Leechiu said it is crucial to improve the infrastructure and talent viability of these digital cities for them to be a magnet for investments. He said the IT-BPM sector continues to grow even in these trying times, and it is ideal to share this growth to the countryside.

“In the most difficult recessions and crisis, the office sector continues to grow led by the IT-BPM sector,” he said. “We have seen a 34- to 35-percent increase in office space in April and May at the height of lockdown, and this shows the very resilience of the IT-BPM sector and how that has benefitted the Philippines.”

“It is so important that in the middle of this mayhem, we have to do everything we can to develop the IT-BPM sector not just in Manila but all throughout the Philippines,” he added.

According to Untal, the Ibpap is just waiting for the pandemic to be over with. Once the crisis is addressed and the situation is no longer as risky as now, the group will conduct launches of the digital cities to promote them to IT-BPM investors.

“We identified these digital cities on the bases that we do not see the Covid situation as being permanent. At the same time, we took into account what the implications are of the constraints that we are dealing with. When we started discussing this initiative early this year, we have lined up a very busy second half, essentially for doing the launches,” Untal reported.

However, he did not disclose how much capital investments they are expecting to be poured into the identified locations as a result of their promotion as IT-BPM hubs. He said the targets will come right after the launches are carried out and the situation becomes clear.

Data from the Leechiu Property Consultants showed that 82 percent of the 1.75 million square meters office space consumed last year was in Metro Manila. Bulk of those office spaces went to the usual IT-BPM spots of Bay Area, Quezon City, Taguig, Makati, Ortigas and Alabang.

Much of the remaining 18 percent, on the other hand, went into the traditional metro areas outside of the capital region, namely, Cebu, Clark, Cavite, Iloilo and Bohol. Elijah Felice E. Rosales

www.businessmirror.com.ph

Companies BusinessMirror

Wednesday, July 1, 2020

B1

LT Group outlook ‘guarded’ as pandemic hits spending

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By VG Cabuag

@villygc

T Group Inc., the holding firm of most businesses of tycoon Lucio Tan, said it is “guarded” in its outlook for the rest of 2020, even as it expressed confidence that its strong performance last year will allow the company to weather challenges.

“Even as the economy is restarted under different permutations of the quarantine thereafter, it will take a while before our economy goes back to normal, or to what it used to be,” Michael G. Tan, company president, said during the firm’s annual stockholders’ meet-

ing, which the company conducted online.

Tan said the pandemic would hit the public's purchasing power and will affect demand for consumer goods, where most of the company's businesses are. “[It] will affect the sales volumes

of the products of PMFTC Inc., Tanduay and Asia Brewery. Eton [Properties Philippines Inc.] will also be affected as some tenants may end their lease contracts. PNB [Philippine National Bank] will have to grapple with nonperforming loans and slower demand for loans.”

PMFTC Inc. is the combined tobacco business of Philip Morris Philippines and Tan's Fortune Tobacco, while Tanduay Distillers Inc. is the liquor maker. Asia Brewery Inc. is LT Group's beverage company.

He said the effects of the pandemic were already felt starting mid-March, when the government declared an enhanced community quarantine (ECQ), particularly by the bank, tobacco and the alcoholic and nonalcoholic beverage businesses.

“Some plants were not allowed to

operate when ECQ was declared as the products were considered nonessential. Sari-sari stores that play a big role in reaching consumers, were closed in some areas. There were also liquor bans declared by some local government units.”

Tan noted government estimates that the economy will contract by 2 percent this year. However, some economists expect a much steeper fall.

In 2019, LT Group's attributable net income reached P23.12 billion, or 43 percent higher than the P16.19 billion reported for 2018.

This was the highest income that the company achieved since its re-IPO (initial public offering) in April 2013.

In the first quarter, its attributable net income amounted to P6.21 billion, 41 percent more than the P4.42 billion it reported last year.

SMC vows to continue big-ticket projects

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onglomerate San Miguel Corp. (SMC) on Tuesday said its big-ticket infrastructure projects will push through, including the capital-intensive new international airport in Bulacan.

SMC also promised not to scrimp on capital given the pressing need of the country to recover from the devastation caused by the Covid-19 pandemic.

“The best way we can do this is to continue, and not scale back, on investments in infrastructure and capacity expansion, as well as provide support for the poor, and other key sectors such as agriculture and the health industry,” San Miguel Presi-

dent and COO Ramon S. Ang said during the company's stockholders' meeting that it conducted online.

Ang said all of the company's ongoing major projects, including the construction of new manufacturing facilities in various regions nationwide and major infrastructure projects such expressways, railways and its proposed airport in Bulacan, will continue.

“All our major, important projects will continue. Before the pandemic, and even more so now, we believe these projects will be key to making more Filipinos resilient, by providing jobs and boosting local economies, which in turn, will

provide livelihood opportunities.”

“With more manufacturing facilities in key regions that provide direct jobs and downstream employment, infrastructure that increases mobility and ease of trade, and sufficient and reliable access to power and fuel, we hope to help our economy through this crisis and boost our nation’s recovery.”

Among the new facilities the company is completing are 12 feed mills with a capacity of 1 million annual tons each, expanded poultry farms and a poultry processing facility; new breweries in Cagayan de Oro and Sta. Rosa in Laguna, and the new unit of Masinloc power plant. Some of its

ongoing infrastructure projects are Skyway 3, Skyway extension, Skyway 4, MRT-7 and TPLEx, or the TarlacPangasinan-La Union Expressway.

“Our major businesses are wellpositioned to make recoveries, especially with the lifting of restrictions starting June. Since May, we have been seeing a recovery. We’ve lost no time in working to regain our position and doubling our efforts to serve consumers,” Ang said.

Meanwhile, the company still has not changed the composition of its board of directors following the death of Eduardo M. Cojuangco Jr., the company’s chairman and CEO, last month. VG Cabuag

McDonald’s PHL to open more stores

Alliance Global Q1 income plummets

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nfazed by the Covid-19 pandemic, McDonald's Philippines said on Tuesday that it will continue to expand nationwide, as the company is opening 15 more stores this year.

In an online press briefing, McDonald’s Philippines President and Chief Executive Officer (CEO) Kenneth S. Yang admitted that the number is lower than their original target since they need to adjust their plan given the crisis.

“That’s something we have to continue to assess as time goes [by], and let’s see how the economy will be able to sustain additional growth from the business. So we are flexible and ready to accelerate our growth once the circumstances allow,” Yang said.

Since the health crisis started, the fast-food giant has introduced innovations both in its physical stores and digital platforms to adjust to the new normal while adhering to the safety protocols set by the government.

“We have made a lot of adjustment, especially to ensure we continue to have revenue or sales and we continue to do that, and drive our omnichannel."

Among its new offerings is an ordering channel via the Facebook Messenger chatbot that allows consumers to conveniently place their orders online. The “Park, Order and Pay” has also kicked off in some stores. The M Group Selections allow small groups to celebrate with McDonald’s food at good value, available via McDelivery, drive thru, pick up or take out.

The brand remains available and accessible through platforms such as McDelivery, GrabFood, and FoodPanda. Customers can check out deals and other special offers through the McDonald’s app available on Android and iOS. “As we continue and the lockdowns eased and people start to have the confidence to go out and dine out, we should see also ourselves improving,” Yang said.

“But in the meantime, we will try to take advantage, exploit all these channels that are available to us so that we can continue to strengthen the business even now. And I think as we proceed in the future, we should see our business really solidify and also strengthen and be able to expoit dine-in.” Roderick L. Abad

Megaworld Bonifacio Global City. BusinessMirror file photo

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lliance Global Group Inc., the holding firm of businessman Andrew Tan, said its income in the first quarter plunged 39 percent to P4 billion, from the previous year's P6.5 billion, as the Taal Volcano eruption and the pandemic affected its performance.

Consolidated revenues fell 7 percent to P38 billion from last year’s P41 billion, the company said.

“While most businesses have been affected by this health crisis, the situation reinforced our belief that our business model is sound and sustainable. For instance, we view our decision to focus on township developments as the way of the future," Andrew L. Tan, the company's CEO, said.

“Even our foray into the international market for our spirits business has allowed us to diversify our

risks, even as this pandemic has global dimensions.”

Property developer Megaworld Corp. recorded a 9-percent drop in attributable net income to P3.5 billion, from P3.8 billion last year.

Consolidated revenues were flat at P15.1 billion, with only rental income posting a growth of 8 percent year-on-year to P4.2 billion.

Travellers International Hotel Group Inc., Tan's gambling arm and the operator of Resorts World Manila, had a net loss of P1 billion for the period, reversing its P244 million net income last year.

Total gross revenues declined by 19 percent year-on-year to P6.9 billion as gross gaming revenues dropped to P5.6 billion, weighed down by the impact of the temporary halt in casino gaming operations as the community quarantine was imposed by mid-March.

Non-gaming revenues fell 17 percent to P1.3 billion with the limited operations of its hotels.

Emperador, the fifth-largest Scotch whisky manufacturer in the world, recorded a 16 percent year-on-year decline in attributable profit to P1.5 billion in the first quarter. Consolidated revenues went down by 3 percent to P10.7 billion, as whisky revenues fell 8 percent during the quarter to P3.1 billion. International sales were affected by the early onset of the global pandemic.

Golden Arches Development Corp., the owner of the local franchise of McDonald’s fast food, meanwhile, saw its attributable net income in the first quarter plunge by 72 percent to P108 million, from P383 million last year. The company ended the quarter with 669 stores. VG Cabuag

B2

Companies BusinessMirror

Wednesday, July 1, 2020

Phoenix focuses on retail business to boost margins

P

By Lenie Lectura

@llectura

hoenix Petroleum on Tuesday vowed to further improve its retail business to boost margins amid challenging times.

The independent oil firm said it is diversifying its core petroleum operations and repositioning its portfolio toward high growth, high margin businesses as it transitions into the new normal. “We need to adapt our core business to changes and disruptions in markets. Commercial accounts fueled our growth over the last decade but going forward, retail is going to be the major force driving Phoenix,” Henry Fadullon, company president, said.

“We are building this capability

beyond fuels and we aim to further expand this portfolio with high growth, high margin consumer brands over time.”

Over the past three years, Phoenix Petroleum embarked on a consumer experience-focused growth strategy that targets the underserved, convenience needs of its existing customers beyond fuel, which led to its investments in LPG (liquefied petroleum gas) and FamilyMart.

In 2016, the company’s commercial business accounted for over 66

percent of revenues, with retail fuels comprising about 33 percent. Today, Phoenix generates around 45 percent of domestic revenues from retail fuels as well from other higher margin products, such as LPG, convenience retailing and payments.

“At the center of our efforts is our customer. By understanding their customer journey and experience, we are able to see their underserved needs and try to fill these through our expanding retail portfolio that is now beyond fuels. With the changes in purchasing behavior post-pandemic, we are complementing these retail offers with digital initiatives that in turn multiply the footprint exponentially,” Fadullon said.

Phoenix has a total of 20,000 touchpoints comprised of its service stations, LPG and lubricant retail outlets, FamilyMart stores, and Posible retailers. Combined, these touchpoints can reach over 1.2 mil-

mutual funds

lion customers.

Phoenix Petroleum said it is strenghtening its brand with the rollout of its digital transformation program in response to the business challenges of the ongoing pandemic.

“Companies should resist the instinct to forego brand building when finances run tight, which is based on the thinking that marketing is not an essential expense. The truth is that a brand’s resiliency should be put on full display precisely during times of crisis,” said Celina Matias, assistant vice president and head of integrated marketing and strategies for Phoenix and its portfolio of brands.

The independent oil firm said when the pandemic kicked in, the company sharpened its focus on digital communications by intensifying its presence on social media and coming up with compelling content to keep their respective followings steadily growing.

June 30, 2020

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 200.73 -25.16% -9.57% -5.72% -20.31% ATRAM Alpha Opportunity Fund, Inc. -a 1.0198 -38.66% -13.76% -6.09% -26.21% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.716 -34.51% -14.04% -8.01% -26.16% Climbs Share Capital Equity Investment Fund Corp. -a 0.6908 -28.09% n.a. n.a.

-23% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6674 -24.87% n.a. n.a. -21.42% First Metro Save and Learn Equity Fund,Inc. -a 4.2973 -22.54% -8.01% -5.29% -19.35% -24% -10.65% n.a.

First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.6784 -20.52% MBG Equity Investment Fund, Inc. -a 77.97 -36.04% n.a. n.a. -24.54% PAMI Equity Index Fund, Inc. -a 40.2829 -24.21% -7.9% -4.59% -21.45% Philam Strategic Growth Fund, Inc. -a 431.51 -21.94% -7.2% -4.87% -19.01% Philequity Alpha One Fund, Inc. -a,d,5 0.8911 n.a. n.a. n.a. -13.49% Philequity Dividend Yield Fund, Inc. -a 1.02 -24.33% -7.56% -4.39% -20.74% Philequity Fund, Inc. -a 30.0054 -24.04% -7.1% -4.08% -20.82% Philequity MSCI Philippine Index Fund, Inc. -a 0.7953 -25.45% n.a. n.a. -21.88% Philequity PSE Index Fund Inc. -a 4.1045 -23.88% -7.39% -3.88% -21.42% Philippine Stock Index Fund Corp. -a 686.84 -23.72% -7.36% -4.08% -21.24% Soldivo Strategic Growth Fund, Inc. -a 0.6279 -33.23% -11.11% -8.04% -26.25% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.1849 -27.59% -8.62% -5.24% -24.33% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.7886 -23.77% -7.52% -4.01% -21.2% United Fund, Inc. -a 2.8972 -23.49% -5.93% -3.33% -20.7% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 92.1911 -23.54% -6.88% -3.26% -21.17% ATRAM AsiaPlus Equity Fund, Inc. -b

$0.963 -3.13% -1% -1.39% -6.36% Sun Life Prosperity World Voyager Fund, Inc. -a $1.3665 5.73% 5.49% n.a. -0.88% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.5479 -11.88% -4.4% -3.82% -0.95% ATRAM Philippine Balanced Fund, Inc. -a 2.0577 -11.85% -4.41% -2.05% -5.66% First Metro Save and Learn Balanced Fund Inc. -a 2.4214 -9.8% -2.61% -3.21% -7.98% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1864 n.a. n.a. n.a.

-18.42% NCM Mutual Fund of the Phils., Inc. -a 1.843 -5.67% -0.96% -0.52% -6.12% PAMI Horizon Fund, Inc. -a 3.5054 -7.25% -1.93% -1.61% -7.49% Philam Fund, Inc. -a 15.6132 -8.26% -2.23% -1.79% -7.94% Solidaritas Fund, Inc. -a 1.925 -11.18% -3.44% -1.63% -9.45% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.292 -15.97% -4.35% -2.89% -14.8% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9482 -7.67% n.a. n.a.

-6.65% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.8524 -17.07% n.a. n.a. -14.45% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.8271 -19.27% n.a. n.a. -16.72% Sun Life Prosperity Dynamic Fund, Inc. -a 0.8166 -18.64% -5.14% -3.98% -16.23% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.03848 3.05% 2.32% 1.66% 0.65% PAMI Asia Balanced Fund, Inc. -b $0.9855 -0.29% 0.4% -0.16% -5.05% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.8478 2.76% 3.93% 3.19% -1.61% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.1096 0.64% 1.94% n.a.

-1.7% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 365.62 4.4% 3.09% 2.52% 2.19% ATRAM Corporate Bond Fund, Inc. -a 1.9413 2.2% 0.8% -0.04% 2.07% Cocolife Fixed Income Fund, Inc. -a 3.1915 4.64% 5.11% 5.1% 2.41% Ekklesia Mutual Fund Inc. -a 2.3047 5.47% 3.02% 2.41% 3.58% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4517 5.96% 3.43% 1.98% 3.93% Philam Bond Fund, Inc. -a 4.6466 11.12% 4.37% 2.72% 6.26% Philam Managed Income Fund, Inc. -a,6 1.2982 6.96% 4.13% 2.26% 3.3% Philequity Peso Bond Fund, Inc. -a 3.9526 7.66% 4.3% 2.27% 4.34% Soldivo Bond Fund, Inc. -a 1.0276 9.32% 3.38% 1.71% 6.56% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1731 7.31% 4.68% 2.92% 3.16% Sun Life Prosperity GS Fund, Inc. -a 1.7435 6.08% 4.03% 2.41% 2.49% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $473.7 3.48% 2.43% 2.75% 1.17% ALFM Euro Bond Fund, Inc. -a Є215.37 -0.89% 0.58% 0.98% -1.98% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2193 2.98% 2.83% 2.53% 1% First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.026 1.56% 1.45% 1.28% 0.78% PAMI Global Bond Fund, Inc -b $1.0706 -1.49% -0.24% 0.25% -2.25% Philam Dollar Bond Fund, Inc. -a $2.4433 4.42% 3.1% 3.12% 1.64% Philequity Dollar Income Fund Inc. -a $0.0605936 2.59% 1.94% 1.87% 0.46% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1796 3.35% 1.86% 2.48% 0.14% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 128.12 3.77% 3.2% 2.42% 1.86% First Metro Save and Learn Money Market Fund, Inc. -a 1.0414 2.64% n.a. n.a.

1.47% Sun Life Prosperity Money Market Fund, Inc. -a 1.2834 3.14% 3.04% 2.58% 1.49% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.045 1.65% n.a. n.a.

0.75% Feeder Fund Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.92 n.a. n.a. n.a.

-7.07%

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).

"While we endeavor to keep the information accurate, the Philippine Investment Funds Association (PIFA) and its members make no warranties as to the correctness of the newspaper’s publication and assume no liability or responsibility for any error or omissions. You may visit http://www. pifa. com.ph to see the latest NAVPS/NAVPU."

www.businessmirror.com.ph

PSE STOCK QUOTATIONS

June 29, 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 PBCOM PHIL NATL BANK PSBANK PHILTRUST RCBC SECURITY BANK UNION BANK COL FINANCIAL FERRONOUX HLDG IREMIT MEDCO HLDG NTL REINSURANCE PHIL STOCK EXCH

45.65 94 69.3 21.85 7.14 36.45 17.9 20 48.45 96.05 16.74 103.9 54 17.5 2.5 0.91 0.295 0.55 161

47 94.3 69.5 21.9 7.15 36.5 19.6 20.15 48.5 108.5 16.94 104 54.2 17.7 2.8 0.98 0.3 0.56 167.9

47 97.9 70 21.95 7.38 37 18.98 20.5 48.5 108.5 17 105.9 54.95 17.5 2.69 0.98 0.29 0.55 161

47 97.9 70.1 21.95 7.38 37 19.6 20.5 48.5 108.5 17 105.9 54.95 17.68 2.82 0.98 0.295 0.57 168

47 94 69.2 21.65 7.11 36.4 18.98 19.92 48.05 108.5 16.8 102.5 53.85 17.2 2.69 0.88 0.29 0.55 161

47 94 69.5 21.9 7.14 36.5 19.6 20 48.45 108.5 16.94 104 54 17.68 2.8 0.9 0.295 0.55 167.9

2600 5438810 2302800 282700 1520300 3714900 2100 788000 2600 20 15300 786990 23400 6500 89000 52000 60000 105000 190

122200 516279889 159781382 6174505 10929828 135726355 40072 15801828 125525 2170 259222 81821036 1264601 113972 246100 47040 17450 58280 31848

112800 -233064620.5 -100224773.5 -43300 -1717252 -63906615 -5808148 -52171105 -663290 61250 -

INDUSTRIAL AC ENERGY 2.16 2.17 2.22 2.22 2.16 2.17 4871000 10639950 -1011140 ALSONS CONS 1.18 1.2 1.19 1.21 1.17 1.19 337000 399890 -2380 26.7 27.4 27.25 27.45 26.3 27.4 779800 20921400 -6402750 ABOITIZ POWER 0.155 0.159 0.151 0.159 0.151 0.159 230000 34810 BASIC ENERGY FIRST GEN 22.9 22.95 22.7 23 22.1 22.9 1717000 39061730 12842425 FIRST PHIL HLDG 57.05 58.8 57 58 57 57.05 14960 853592 -366255 268.4 268.8 268.6 269.6 265.6 268.4 199440 53406744 -7915962 MERALCO 12.52 12.54 12.14 12.58 11.84 12.52 4787100 59144558 -3394698 MANILA WATER PETRON 3.06 3.07 3.07 3.07 3.06 3.06 2037000 6242610 -511150 PETROENERGY 2.7 2.9 2.98 2.98 2.72 2.9 18000 50700 11.46 11.48 11.3 11.46 11.02 11.46 114300 1291672 22400 PHX PETROLEUM 18.02 18.1 18.4 18.4 18 18.02 207100 3,741,684( 1,464,403.9997) PILIPINAS SHELL SPC POWER 7.9 8 8 8 7.9 8 321700 2547856 83310 AGRINURTURE 7.37 7.5 7.8 7.95 7.2 7.53 321400 2402190 -3171 2.52 2.57 2.59 2.59 2.5 2.54 1310000 3302320 -281710 AXELUM 75.05 77.95 75.05 75.05 75.05 75.05 350 26267.5 BOGO MEDELLIN CENTURY FOOD 14.48 14.5 14.68 14.72 14.4 14.5 1129000 16372690 -1966366 DEL MONTE 4.2 4.45 4.45 4.45 4.2 4.2 11000 46450 -12600 4.97 4.98 5.09 5.09 4.85 4.97 1160200 5754075 100336 DNL INDUS 8.01 8.05 8.13 8.13 8.01 8.01 20153700 162,818,118( 161,683,666.9998) EMPERADOR SMC FOODANDBEV 67.6 68.5 68.5 68.5 67 68.5 86260 5850318.5 -1030277 ALLIANCE SELECT 0.54 0.55 0.56 0.57 0.55 0.55 777000 428430 1.3 1.31 1.34 1.37 1.3 1.3 12255000 16253300 -769930 FRUITAS HLDG 31.5 32 31.5 31.5 31.25 31.5 108500 3414885 2710545 GINEBRA JOLLIBEE 137.8 137.9 139 139 135.1 137.9 718430 98712821 -4883913 MACAY HLDG 6.46 6.85 6.79 6.87 6.79 6.87 5000 34050 -4122 5.41 5.42 5.66 5.66 5.39 5.42 605700 3294404 -182864 MAXS GROUP 0.13 0.139 0.139 0.139 0.133 0.133 280000 37840 -4170 MG HLDG SHAKEYS PIZZA 5.91 5.93 5.95 5.95 5.85 5.92 3661500 21642221 1415125 ROXAS AND CO 1.52 1.53 1.56 1.56 1.51 1.52 1320000 2019510 -502220 4.31 4.49 4.49 4.49 4.49 4.49 1000 4490 RFM CORP ROXAS HLDG 1.51 1.58 1.53 1.53 1.51 1.51 24000 36450 UNIV ROBINA 128.5 129 129.2 129.5 126 129 495250 63695567 -1505626 VITARICH 0.82 0.83 0.87 0.87 0.81 0.82 8045000 6623370 -287410 52.6 57.65 52.3 52.35 52.25 52.25 61650 3221238.5 CONCRETE A CONCRETE B 51.25 62.45 50.75 62.45 50.75 62.45 22630 1148589.5 CEMEX HLDG 1.01 1.02 1.06 1.06 0.99 1.01 28753000 29296130 -12974740 EAGLE CEMENT 9.8 9.85 9.92 9.92 9.79 9.8 147900 1449502 -447864 5 5.02 5 5.15 4.98 5.02 653200 3265447 -193014 EEI CORP 6.22 6.23 6.41 6.41 6.02 6.22 2450900 15117400 377923 HOLCIM MEGAWIDE 7.05 7.06 7 7.06 6.8 7.06 5936300 41068114 -7330054 PHINMA 8.33 8.9 8.33 8.9 8.33 8.9 1500 13098 0.72 0.73 0.72 0.73 0.72 0.72 97000 69940 TKC METALS VULCAN INDL 0.84 0.86 0.87 0.87 0.83 0.84 567000 477910 830 CHEMPHIL 120.2 129.9 120.2 120.2 120.2 120.2 230 27646 1.93 1.97 1.98 1.98 1.93 1.97 9000 17620 CROWN ASIA EUROMED 2.32 2.33 2.23 2.49 2.06 2.32 2838000 6513110 LMG CHEMICALS 4.5 4.57 4.58 4.58 4.58 4.58 40000 183200 MABUHAY VINYL 3.64 3.66 3.67 3.68 3.67 3.67 12000 44060 -7360 20.2 20.8 20 20.85 19 20.2 4300 86170 CONCEPCION GREENERGY 1.89 1.9 1.92 1.92 1.81 1.9 8088000 15174260 172250 INTEGRATED MICR 5.82 5.84 5.7 5.85 5.6 5.84 191900 1099626 193585 IONICS 1.02 1.03 1.04 1.04 1 1.03 455000 464750 1.26 1.29 1.32 1.32 1.2 1.29 3984000 4942650 8680 SFA SEMICON 7.93 7.94 7.5 7.94 7.26 7.94 6821000 51533063 -508750 CIRTEK HLDG

HOLDING & FRIMS ABACORE CAPITAL 0.465 0.47 0.485 0.485 0.455 0.465 14250000 6614750 ASIABEST GROUP 9.3 9.31 9.73 9.73 8.93 9.3 37200 338839 762 765 774.5 774.5 755.5 762 240210 183029640 AYALA CORP 45.25 45.5 46.75 46.75 44.85 45.25 1086600 49107805 ABOITIZ EQUITY ALLIANCE GLOBAL 6.48 6.5 6.7 6.7 6.18 6.5 48424500 309285598 AYALA LAND LOG 1.65 1.67 1.65 1.67 1.65 1.67 408000 675470 6.15 6.22 6.14 6.22 6.14 6.15 9000 55913 ANSCOR ANGLO PHIL HLDG 0.485 0.5 0.415 0.5 0.415 0.5 80000 39150 ATN HLDG A 0.54 0.56 0.57 0.57 0.54 0.56 1029000 558640 COSCO CAPITAL 5.17 5.2 5.2 5.2 5.16 5.19 78800 407355 4 4.01 4.05 4.06 3.98 4.01 12219000 48911150 DMCI HLDG 7.97 8 8.26 8.26 7.62 7.97 206500 1,644,736( FILINVEST DEV FJ PRINCE A 3.1 3.5 3.12 3.12 3.12 3.12 12000 37440 FORUM PACIFIC 0.19 0.199 0.19 0.19 0.19 0.19 70000 13300 449 449.8 450 450.2 439 449 184270 81812998 GT CAPITAL 3.21 3.4 3.34 3.34 3.34 3.34 10000 33400 HOUSE OF INV JG SUMMIT 62.35 62.5 61 62.55 60.75 62.5 941140 58684689.5 JOLLIVILLE HLDG 4.1 5.28 5.35 5.35 5.35 5.35 600 3210 5.12 5.97 5.1 5.1 5.1 5.1 100 510 KEPPEL HLDG A LODESTAR 0.76 0.77 0.67 0.76 0.65 0.76 10539000 7516970 LOPEZ HLDG 2.69 2.7 2.72 2.72 2.68 2.69 664000 1784670 LT GROUP 7.83 7.9 8.1 8.1 7.7 7.9 1179700 9345324 0.415 0.5 0.405 0.5 0.405 0.5 3000 1405 MABUHAY HLDG METRO PAC INV 3.69 3.7 3.74 3.78 3.68 3.7 42431000 158021170 PACIFICA HLDG 2.7 2.9 2.7 2.89 2.7 2.89 6000 16390 PRIME MEDIA 0.75 0.8 0.76 0.81 0.71 0.81 146000 109190 0.95 0.99 1 1 0.95 0.95 71000 67650 SOLID GROUP SYNERGY GRID 150 172 156 156 145 156 800 121050 SM INVESTMENTS 915 917 930 934.5 906 915 190290 173588495 SAN MIGUEL CORP 99.45 99.5 99.95 99.95 97.6 99.5 83370 8226605.5 1.82 1.99 1.81 1.82 1.81 1.82 21000 38210 SEAFRONT RES TOP FRONTIER 128 129.1 137.9 137.9 126.5 126.5 1460 192650 WELLEX INDUS 0.185 0.19 0.185 0.19 0.185 0.19 1000000 188900 ZEUS HLDG 0.135 0.14 0.143 0.143 0.143 0.143 660000 94380

PROPERTY

ARTHALAND CORP ANCHOR LAND AYALA LAND ARANETA PROP BELLE CORP A BROWN CITYLAND DEVT CROWN EQUITIES CEB LANDMASTERS CENTURY PROP CYBER BAY DOUBLEDRAGON DM WENCESLAO EMPIRE EAST EVER GOTESCO FILINVEST LAND GLOBAL ESTATE 8990 HLDG PHIL INFRADEV CITY AND LAND MEGAWORLD MRC ALLIED PRIMEX CORP ROBINSONS LAND PHIL REALTY ROCKWELL SHANG PROP STA LUCIA LAND SM PRIME HLDG VISTAMALLS SUNTRUST HOME VISTA LAND

0.53 8.02 33.9 1 1.41 0.77 0.74 0.12 4.25 0.365 0.255 17.12 6.19 0.245 0.101 0.98 0.83 9.61 0.81 0.68 2.89 0.146 1.32 16.96 0.232 1.51 2.7 1.81 31.7 3.55 1.23 3.66

0.54 8.3 33.95 1.05 1.42 0.78 0.76 0.124 4.36 0.37 0.265 17.18 6.2 0.246 0.102 0.99 0.88 9.71 0.82 0.73 2.9 0.147 1.44 17 0.243 1.59 2.72 1.9 31.9 3.7 1.24 3.71

0.56 8.04 33.4 1 1.42 0.73 0.76 0.12 4.3 0.38 0.255 17.12 6.31 0.255 0.097 1 0.86 9.89 0.84 0.68 2.95 0.153 1.41 17.4 0.247 1.55 2.7 1.81 31 3.72 1.26 3.8

0.56 8.69 34.05 1 1.42 0.79 0.76 0.127 4.36 0.38 0.26 17.7 6.31 0.255 0.102 1 0.88 9.89 0.84 0.69 2.97 0.153 1.44 17.4 0.247 1.6 2.71 1.92 31.9 3.72 1.28 3.8

0.52 8.01 33.2 1 1.4 0.72 0.76 0.12 4.22 0.365 0.255 17.06 6.18 0.244 0.097 0.98 0.82 9.61 0.8 0.68 2.85 0.145 1.32 16.72 0.247 1.51 2.69 1.81 30.7 3.6 1.19 3.61

0.54 8.69 33.95 1 1.41 0.77 0.76 0.12 4.36 0.37 0.26 17.18 6.19 0.246 0.102 0.99 0.88 9.61 0.82 0.69 2.89 0.147 1.44 17 0.247 1.58 2.7 1.9 31.9 3.7 1.24 3.71

1977000 14800 7346200 4000 507000 9648000 110000 2030000 3102000 5410000 20000 216400 71700 1130000 180000 20752000 15000 15500 7728000 22000 35670000 18320000 111000 1429900 30000 22000 117000 92000 4721500 38000 6222000 1611000

-1955750 -17680395 -34417395 748252 16500 232200 -5605750 1,456,312.9997) -15270656 -26347033.5 -251500 -155850 -1392913 -3527220 -75595630 -1867191 -19940 -

1058130 120782 248003330 4000 715210 7350680 83600 243770 13362550 2019200 5150 3717124 445866 279210 17560 20482100 12840 150527 6327260 15040 103104420 2696800 151660 24225476 7410 34570 315850 171400 148711810 137040 7691890 5908950

24332 -58822095 -2810 123200 83600 -153800 231876 -8262670 -3340 -49000 112340 5520 -17630680 -2335158 24300 -3982025 -589390

SERVICES ABS CBN 15.1 15.12 15.44 15.44 15.06 15.1 159700 2428684 GMA NETWORK 4.73 4.84 4.98 4.98 4.7 4.8 534000 2548260 0.355 0.36 0.365 0.365 0.35 0.36 640000 232600 MANILA BULLETIN MLA BRDCASTING 10.8 13 13 13 13 13 700 9100 GLOBE TELECOM 2088 2090 2110 2112 2054 2088 51585 107643970 PLDT 1225 1235 1237 1237 1201 1235 107270 131436020 0.051 0.052 0.052 0.053 0.052 0.052 22020000 1159310 APOLLO GLOBAL 2.83 2.9 2.99 2.99 2.83 2.9 13000 37330 DFNN INC DITO CME HLDG 3.68 3.69 3.74 3.76 3.5 3.68 79919000 291318870 IMPERIAL 1.21 1.32 1.23 1.23 1.21 1.21 21000 25480 0.073 0.077 0.079 0.079 0.073 0.073 1010000 74710 ISLAND INFO NOW CORP 2.08 2.09 2.07 2.08 2.03 2.08 8007000 16592260 TRANSPACIFIC BR 0.172 0.175 0.175 0.177 0.171 0.175 620000 106740 PHILWEB 2.21 2.23 2.23 2.24 2.2 2.21 1928000 4265910 9.52 9.75 9.6 9.95 9.5 9.52 74400 723033 2GO GROUP 15.52 16.8 16.8 16.8 16.8 16.8 300 5040 ASIAN TERMINALS CHELSEA 3.62 3.63 3.72 3.72 3.52 3.62 813000 2931530 CEBU AIR 39.75 39.95 41.95 41.95 39 39.75 323600 12910595 100.4 101 98.3 101.9 96.25 101 1286930 128935043 INTL CONTAINER 12.64 13.08 12.56 13.1 12.56 13.08 1500 19010 LBC EXPRESS LORENZO SHIPPNG 0.77 0.78 0.77 0.77 0.77 0.77 24000 18480 MACROASIA 6.16 6.18 6.1 6.27 6.09 6.18 7536200 46352351 2.3 2.32 2.4 2.4 2.24 2.3 3822000 8773910 METROALLIANCE A METROALLIANCE B 2.08 2.39 2.05 2.05 2.05 2.05 1000 2050 PAL HLDG 6.56 6.6 6.55 7.05 6.55 6.56 64200 446309 HARBOR STAR 0.81 0.84 0.81 0.81 0.8 0.8 614000 494100 0.024 0.025 0.024 0.025 0.024 0.025 13200000 321000 BOULEVARD HLDG DISCOVERY WORLD 1.6 1.62 1.76 1.77 1.62 1.62 8000 13860 GRAND PLAZA 12.04 13.66 13.7 13.7 12.02 12.02 200 2572 WATERFRONT 0.385 0.39 0.385 0.385 0.38 0.385 370000 142400 6.3 6.44 6.3 6.3 6.3 6.3 1600 10080 CENTRO ESCOLAR 770.5 800 770.5 771 770.5 771 20 15415 FAR EASTERN U STI HLDG 0.3 0.305 0.305 0.305 0.3 0.3 2500000 758750 BERJAYA 2.1 2.2 2.07 2.23 2.07 2.2 278000 603460 7 7.04 7.3 7.3 6.9 7 9199100 64572931 BLOOMBERRY 1.86 1.95 1.89 1.99 1.85 1.86 94000 175710 PACIFIC ONLINE LEISURE AND RES 1.43 1.44 1.51 1.51 1.42 1.43 8362000 11878280 MANILA JOCKEY 2.55 2.69 2.54 2.56 2.54 2.55 15000 38330 2.6 2.61 2.65 2.73 2.61 2.61 235000 622530 PH RESORTS GRP 0.31 0.315 0.32 0.32 0.31 0.315 3750000 1172700 PREMIUM LEISURE ALLHOME 7.18 7.19 7.21 7.21 7.02 7.19 3566700 25426657 METRO RETAIL 1.61 1.62 1.62 1.65 1.59 1.62 4677000 7549930 44.9 45 44 45.2 42.5 45 3546600 158427570 PUREGOLD ROBINSONS RTL 62.9 64 63.45 64 62 64 359730 22503036 PHIL SEVEN CORP 126 127 125.8 125.8 125.8 125.8 220 27676 1.13 1.14 1.17 1.17 1.11 1.13 2775000 3126710 SSI GROUP 15.02 15.18 15 15.28 14.9 15.18 920200 13875930 WILCON DEPOT APC GROUP 0.31 0.325 0.31 0.31 0.31 0.31 250000 77500 EASYCALL 6.9 6.94 7.03 7.03 6.52 6.9 71500 486484 280.2 300 281.2 281.2 280.2 280.2 480 134712 GOLDEN BRIA PRMIERE HORIZON 0.199 0.2 0.204 0.205 0.199 0.2 3600000 721310 SBS PHIL CORP 4.51 5.34 4.83 5.9 3.7 5 374000 1448800

-37390410 -10172655 -26500 -3287420 60009.9999 49630 -21574.9999 -25500 -1633545 10322864.5 -2633216 10080 -219750 75230 8079219 8520 8070 -3100 15052029 5293320 31268325 1017754.5 2516 161029.9998 652810 -452040 -

MINING & OIL ATOK 9.84 10.18 9.84 10.18 9.84 10.18 3900 38410 1.3 1.31 1.23 1.33 1.22 1.3 23127000 29895850 547450 APEX MINING 0.0009 0.001 0.0008 0.001 0.0008 0.001 122000000 112700 ABRA MINING ATLAS MINING 1.91 1.94 1.95 1.95 1.9 1.95 136000 262450 BENGUET A 1.12 1.19 1.03 1.12 1.01 1.12 11000 11250 1.14 1.15 1.14 1.14 1.14 1.14 5000 5700 5699.9999 BENGUET B 0.18 0.191 0.182 0.182 0.18 0.181 150000 27130 COAL ASIA HLDG CENTURY PEAK 2.68 2.7 2.68 2.71 2.68 2.71 102000 275860 270500 DIZON MINES 7.52 7.57 7.58 7.58 7.5 7.55 7000 52954 0.86 0.87 0.87 0.87 0.84 0.86 1717000 1459260 -453620 FERRONICKEL 0.239 0.24 0.237 0.245 0.237 0.239 1420000 341690 GEOGRACE LEPANTO A 0.088 0.089 0.088 0.091 0.087 0.089 9120000 812690 LEPANTO B 0.086 0.096 0.091 0.1 0.09 0.098 400000 36930 0.0065 0.0067 0.0066 0.0067 0.0066 0.0067 28000000 186600 MANILA MINING A MANILA MINING B 0.0068 0.0078 0.0077 0.0077 0.0067 0.0067 16000000 115200 MARCVENTURES 0.58 0.6 0.59 0.6 0.55 0.6 15121000 8330560 NIHAO 1.42 1.44 1.39 1.48 1.36 1.44 1311000 1868340 -41440 1.76 1.77 1.82 1.83 1.72 1.77 7877000 13756660 30540 NICKEL ASIA 0.485 0.5 0.49 0.49 0.49 0.49 10000 4900 ORNTL PENINSULA PX MINING 2.54 2.55 2.38 2.6 2.38 2.54 2688000 6788430 -2100280 SEMIRARA MINING 12.38 12.56 12.68 12.7 12.26 12.56 1643700 20589118 1172272 0.0037 0.0038 0.0038 0.0038 0.0038 0.0038 9000000 34200 UNITED PARAGON ACE ENEXOR 6.51 6.75 6.77 6.77 6.5 6.75 126500 827026 -8476 ORNTL PETROL A 0.0084 0.0085 0.0085 0.0085 0.0083 0.0084 35000000 297200 ORNTL PETROL B 0.0086 0.0094 0.0086 0.0086 0.0086 0.0086 3000000 25800 6.66 6.7 7 7 6.59 6.66 3089900 20709104 296814 PXP ENERGY

PREFFERED HOUSE PREF A 99 99.9 99 99 99 99 600 59400 504 518 503 503 503 503 60 30180 AC PREF B1 ALCO PREF B 100.1 103.5 103.5 103.5 103.5 103.5 940 97290 AC PREF B2R 503 505 504.5 504.5 504.5 504.5 1960 988820 DD PREF 100.1 101 100 100 100 100 11580 1158000 104 109 104 104 104 104 20 2080 FGEN PREF G GTCAP PREF A 1010 1012 1010 1010 1010 1010 10 10100 GTCAP PREF B 1019 1024 1019 1019 1019 1019 10 10190 MWIDE PREF 100.3 101 100.1 101 100.1 101 2090 211000 99.2 100.5 100 100 100 100 10 1000 PNX PREF 3A PNX PREF 3B 102.3 106.8 102.2 102.2 102.2 102.2 10 1022 PNX PREF 4 1002 1010 1010 1010 1002 1002 40 40320 PCOR PREF 2B 1011 1035 1011 1035 1007 1035 490 494000 1050 1065 1050 1050 1050 1050 5 5250 PCOR PREF 3A PCOR PREF 3B 1072 1075 1072 1075 1072 1075 100 107230 SMC PREF 2C 77 78.2 78.2 78.2 77 77 2270 175750 SMC PREF 2D 75 75.8 75 75 75 75 10 750 75.5 77.15 75.3 75.3 75.3 75.3 20 1506 SMC PREF 2E SMC PREF 2F 78 78.1 78 78 78 78 11010 858780 -780000 SMC PREF 2H 76 77 75.5 75.5 75.5 75.5 110 8305 SMC PREF 2I 78 78.3 78 78 78 78 31380 2447640

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 14.36 14.58 14.56 14.62 14.36 14.36 206500 3002160 -2587358 4.6 4.78 4.63 4.63 4.6 4.6 293000 1348910 4630 GMA HLDG PDR

WARRANTS LR WARRANT 0.68 0.71 0.68 0.68 0.68 0.68 52000 35360

SMALL & MEDIUM ENTERPRISES ALTUS PROP 27.75 - 20 27.75 20 27.75 9067300 239319880 -18750960 1.97 1.98 2.12 2.12 1.95 1.98 11446000 22944820 45150 ITALPINAS 5.96 6.1 6.1 6.1 5.95 5.96 43800 262828 9030 KEPWEALTH MAKATI FINANCE 1.91 2.45 - - - - - - MERRYMART 3.24 3.25 3.51 3.55 3.2 3.25 92181000 306043910 2294180 0.59 0.6 0.63 0.63 0.58 0.59 4918000 2973730 4740 XURPAS

EXHANGE TRADE FUNDS

FIRST METRO ETF 92.4 92.5 93.75 93.75 92 92.4 16880 1562227.5 148584

www.businessmirror.com.ph

Banking&Finance

Security Bank closes offer period earlier

By Tyrone Jasper C. Piad @Tyronepiad

S

ecurity Bank Corp. is concluding the offer period of its P5-billion bond transaction earlier on the back of strong demand.

In a disclosure on Tuesday, the listed bank said that the bond offer period will end on July 3.

“We appreciate the overwhelming support that our investors and clients have been giving our bond offer. In view of the strong demand we have received so far, we are shortening the offer period to end on July 3, 2020, from the initial target end of offer period of July 15, 2020,” Security Bank Treasurer and Executive Vice President Raul Martin A. Pedro was quoted in a statement as saying.

Each bond carries a tenor of 2 years and a fixed rate of 3.125-percent per annum. Minimum denominations were set for P1 million and increments of P100,000 thereafter.

The 69-year-old bank said it intends to list the bonds on the Philippine Dealing and Exchange Corp. on July 24, 2020.

Security Bank assigned Philippine Commercial Capital Inc. and SB Capital Investment Corp. as joint

lead arrangers and selling agents for the issuance.

The transaction will be issued from the bank’s P100-billion bond and commercial paper program. It was initially established with an aggregate amount of P50 billion in December 2018 before the bank’s board of directors approved to increase it to P100 billion.

Security Bank raised P2.31 billion from the issuance of long-term negotiable certificates of deposits in December last year. It was in line with the initiative of the country’s sixthlargest private domestic universal bank to diversify sources of funding and finance expansion plans.

The bank saw its net profits increase by 21 percent to P2.9 billion in the first quarter despite hiking provisions for credit losses amid the pandemic. It earmarked an allowance for bad loans at P5.7 billion in the first three months, which already surpassed the 2019 full-year provision of P4.2 billion. Established in 1951, Security Bank has a total of 309 branches and 839 ATMs as of March 31, 2020.

Security Bank shares slid 0.96 percent, or P1, to end at P103 each amid the 1.68-percent rise for the main index on Tuesday.

Traders turn to dollar basis to eke out returns

T

he cost of the dollar is becoming pivotal to bond investments and borrowing strategies in a world where every basis point of return has to be eked out.

With the Federal Reserve’s fingerprints all over funding markets, the dynamics of using foreign-exchange swaps and cross-currency basis to juice up returns and lower borrowing costs have shifted since the worst of the coronavirus selloff in March.

“More sophisticated borrowers will look across various foreign currency markets to identify opportunities for basis swap or interest-rate arbitrage to ensure they achieve the lowest possible all-in cost of funding,” said Lorna Greene, a Hong Kong-based director of debt syndicate and origination for Asia at National Australia Bank Ltd. Here’s a look at some options available to investors that explore the interplay between funding, currency and bond markets as the world’s stock of negative-yielding debt jumped by more than $5 trillion in the past three months.

Dollar dilemma

The Federal Reserve beefed up existing swap lines in March allowing cheap access to the US currency to many overseas banks. But that penalizes investors already flush with dollars, who lose their edge for going abroad.

For example, lending dollars for euros in currency markets earns traders about 0.8 percent a year, less than half the five-year average of 2 percent.

With most of the safest government bond yields in Europe already negative, US investors have to look to credit markets. Short-dated corporate bonds denominated in euros and sterling offer attractive pick-ups over American peers, though given the relatively steep shape of the US curve, this disappears past the sevenyear point.

A dollar-based investor buying short-dated Japanese government securities will also get a modest pickup over domestic bonds.

Japan: Forget treasuries

The traditional investment for Japanese investors is US Treasuries—they own $1.3 trillion of them.

But with benchmark Treasury yields trading close to historic lows, the Asian funds are showing signs of taking on more risk. They bought the biggest amount of American corpo-

rate debt in eight years in March, a record amount of agency bonds and shed Treasuries.

It’s easy to see why.

A composite of US 10-year fixedrate bonds issued by investment grade firms offers yields in the region of 1.8 percent, according to data compiled by Bloomberg. A Japanese investor, employing three-month rolling hedges, earns around 1.3 percent, well above the 0.1 percent of a hedged 10-year Treasury-note.

Meanwhile, Japanese investor demand for longer-term basis swaps is growing as they seek to lock in cheap hedge costs for as long as possible, according to Takahiro Sekido, chief Japan strategist and head of global yen strategy at MUFG Bank Ltd. Yen-dollar basis for 30-year contracts plunged to its most negative this year in late May, and has stayed near those levels even after the Fed flooded markets with liquidity.

That’s indicative of how Japanese investors are paying a higher premium to swap their currency for dollars for the long-term, which is evident in the widening longer-dated basis curve.

Swap shop

The trend is not just a Japanese one.

“The cost of currency hedging for local investors such as insurance companies has fallen from about 1.2 percent to 0.2 percent since the Fed announced its zero-rate policy last March,” said Kim Duyoung, Seoulbased chief investment officer of the global investment division at NH-Amundi Asset Management Co. “We are recommending institutions and individual investors to invest in dollar assets above everything,” he said.

Aggressive moves

Still, investors active in cross-currency basis need to be mindful that changes in the level of the swap itself will impact the mark-to-market value of positions.

These sorts of risks are often overlooked, according to Bob Stoutjesdijk, Rotterdam-based fund manager at Robeco Institutional Asset Management. Any stress in the financial system can lead to aggressive moves in the basis which have the potential to wipe out an investors’ additional yield pickup, he said in an interview.

“In that sense, we don’t really like those kind of trades because you’re picking up pennies in front of a steam-roller,” he said. Bloomberg News

BusinessMirror

Wednesday, July 1, 2020 B3

Average rate of 35-day T-bills hits record-low cap

T

By Bernadette D. Nicolas

@BNicolasBM

he average rate of 35-day Treasury bills (T-bills) capped at a record-low on Tuesday as rates continued to plunge after monetary authorities further cut policy rates by 50-basis point last week.

The Bureau of the Treasury also fully awarded P15 billion in 35-day T-bills also on the back of strong demand for the short-term debt papers that attracted P62.5 billion total bids.

National Treasurer Rosalia V. De Leon told reporters that rates were

still lower due to the rate cut by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP).

The 35-day T-bills fetched an average rate of 1.684 percent, plummeting by 41.7 basis points from 2.101 percent average rate from the previous auction.

Despite the auction being oversubscribed by more than four times as much as the P15-billion offering, De Leon said they did not upsize the volume of award for 35-day debt papers “because of the very short tenor.”

To recall, the Treasury revived the 35-day bill offering and once again started auctioning it off on March 31 to provide an outlet for investors and, at the same time, enable government to fund its short-term requirements. The suspension of BSP’ term deposit facility auction back then also prompted the Treasury to issue 35-day T-bills.

The third policy rate cut last Thursday slashed the interest rate on overnight reverse repurchase (RRP) facility by 50 basis points (bps) to 2.25 percent, effective Friday, June 26. The interest

rates on the overnight deposit and lending facilities were reduced to 1.75 percent and 2.75 percent, respectively.

On Monday, the Treasury also raised an additional P10 billion in 364-day T-bills through the tap facility auction, which was opened to all 11 government securities eligible dealers-market makers.

The additional P10 billion raised by the Treasury on Monday added to the P26 billion in 91-day, 182-day and 364-day T-bills it sold earlier in the day.

For this week, the Treasury raised a total of P51 billion from selling debt papers.

For July, the Treasury programmed a P205-billion borrowing from the local debt market, up from the P170 billion programmed for June.

Federal Reserve hopes for recovery Former banker wealth while preparing for 2nd virus wave launches technology firm

T

he Federal Reserve is preparing for the possibility of an economically debilitating second wave of coronavirus infections even as it’s hoping that can be avoided.

In launching the Main Street and corporate lending facilities this month and starting to buy corporate bonds, the central bank has laid the groundwork for stepped-up support for the economy and financial markets should they be undermined by fresh outbreaks of the virus.

“They want to be ready in case things get worse,” said Michael Feroli, chief US economist at JPMorgan Chase & Co. Lawmakers are likely to question Fed Chairman Jerome Powell about a resurgence of the virus in some parts of the US when he appears before the House Financial Services Committee on Tuesday with Treasury Secretary Steven Mnuchin.

In testimony prepared for delivery to the committee, Powell stressed the importance of containing the contagion as the economy recovers from its deepest contraction in decades.

“While this bounceback in economic activity is welcome, it also presents new challenges—notably, the need to keep the virus in check,” he said.

Texas, Florida

Among America’s most-populous states, Texas, Florida and California are experiencing climbing coronavirus cases even while others, including New York, see declines. Overall, counties accounting for between onethird and half of US gross domestic product are suffering from worsening trends in new cases or Covid-19related deaths, according to research

by Deutsche Bank AG economists.

US stocks rebounded on Monday after dropping to a two-week low on June 26 as increasing virus infections began stopping progress on reopening the American economy, with Texas and Florida halting drinking at bars.

Federal Reserve Bank of Kansas City President Esther George, in remarks on June 25, said that the US economy is likely to begin recovering in the third quarter, but rising virus cases are a risk to the outlook.

Powell has said that policy makers assumed there wouldn’t be a “substantial second wave” of infections when they penciled in their forecasts for the economy at their last meeting on June 9-10. But he and other officials have made clear they’re primed to do more if a widespread outbreak threatens the economy.

for superrich

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Pedestrians wearing protective masks walk past stores in San Francisco, California, US, on June 4.

The Federal Reserve is said to have laid the groundwork for stepped-up support for the US economy and financial markets threatened by fresh outbreaks of the virus. Bloomberg News

Finance first responders IN the event of a severe second wave, Krishna Guha, head of central-bank strategy at Evercore ISI, said he expects the emergency credit programs that the Fed has launched during the crisis to morph from being little-used backstops for private-sector lending to becoming front-line providers of finance. That seems to be how Fed officials are thinking.

In explaining why the central bank started buying corporate bonds this month even though the market for such debt has improved substantially, Powell said the Fed wanted to follow through on its commitment to do so and also show it would be able to act forcefully if the economy worsened.

“We just want to be there if things turn bad in the economy,” he told the Senate Banking Committee on June 16. “If things go in a negative direction, we want to make sure that we’re there.” The Fed has invested about $8.7 billion in bonds and exchangetraded funds through its Secondary Market Corporate Credit Facility.

The facility, among nine emergency programs the Fed has rolled out since mid-March, has a capacity of $250 billion and is aimed at helping bigger companies cope with the coronavirus contagion.

So too is the Primary Market Corporate Credit Facility, which the Fed opened for business Monday. The program, which is the last of the Fed’s emergency facilities to become operational, is designed to buy bonds directly from companies upon issuance.

‘Build substantially’

The Fed has so far not made any loans under its Main Street Lending Program, aimed at helping smaller firms. Boston Fed President Eric Rosengren expects participation in

the $600 billion program to “build substantially over time,” especially if the US experiences a resurgence of the coronavirus later this year.

“It actually has the potential to be a significant help to a lot of borrowers, both businesses and nonprofit borrowers, particularly if the fall ends up being more troublesome than we’re hoping,” he told Bloomberg News in a June 19 interview.

In his prepared testimony, Powell said the program will begin extending credit “soon.”

Wrightson ICAP LLC Chief Economist Lou Crandall said the Fed might not mind saving a substantial part of its lending capacity as insurance against the risk of future credit crunch, so long as officials are confident that commercial banks are willing to provide financing to such borrowers on reasonable terms.

Former Fed Chairman Ben Bernanke argued that it’s fine if the Fed’s corporate-credit facility isn’t that active. “It doesn’t need to be big as long as it’s there,” he told a virtual Brookings Institution conference on June 25. “It has succeeded in making the corporate bond market work pretty normally.”

Main Street

The lack of lending by the Main Street Program is another matter.

“That is a concern, both politically and also in terms of getting liquidity to the firms that need it,” Bernanke said. Lawmakers might press Powell to explain why the Main Street loan facility has been slow to gear up.

They also might call on him and Mnuchin to help borrowers in the commercial mortgage-backed securities market. More than 100 lawmakers wrote to the two policy makers last week warning of a crisis in the market if something wasn’t done.

Bloomberg News

obby Console-Verma isn’t letting the pandemic slow down his business plans.

The former investment banker and fund manager has set up 1fs:Wealth, a London-based technology firm that aims to help family offices and rich individuals manage their assets. Console-Verma, 54, has recruited five staff members since March and built up an advisory board.

He plans to hire more as the company now starts to take on its first clients.

“It is still possible to successfully build a business during these difficult times,” said Console-Verma, who has yet to meet several of his new employees in person. “Not having any distractions such as traveling to the office has meant that we have been incredibly productive.”

Family offices, the lightly regulated entities that manage money for the wealthy, have proliferated this century. There are more than 10,000 single-family offices globally, at least half of which were started in the past two decades, according to accounting firm EY, including those of Alphabet Inc.’s Eric Schmidt, British inventor James Dyson and media scion James Murdoch.

Console-Verma came up with the idea for his latest venture last year after previously co-founding London-based fund manager Tower Gate Capital, which was sold for an undisclosed sum in 2016. He also worked at Nomura Holdings Inc. and Credit Suisse Group AG. 1fs:Wealth allows family offices and rich individuals to analyze their public and private investments in one digital platform, and also stores documents for their holdings. Console-Verma, the firm’s chief executive officer, is trying to raise around $2 million in seed funding to help 1fs:Wealth develop areas including artificial intelligence capabilities and a mobile-based version to accompany its current model for computer desktops.

Those with family offices typically “have accumulated numerous different types of physical assets, from properties to art pieces, jewelery, cars, private jets, yachts and so on,” said Vahe Vartanian, founder and CEO of membership group Global Family Office Community. “It is easy to lose track of where all of these assets are located, where they are in the world at a particular time, as well as the associated documents, such as deeds, insurance documents, receipts and valuations.” Bloomberg News

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Wednesday, July 1, 2020

Show BusinessMirror

www.businessmirror.com.ph

Today’s Horoscope

By Eugenia Last

z

CELEBRITIES BORN ON THIS DAY: Katy Mixon, 39; Celine Dion, 52; Eric Clapton, 75; Warren Beatty, 83.

Happy Birthday: It’s time to get serious about what you want to do next. Making a move that will help you parlay what you have experienced and learned into a new direction will boost your enthusiasm and, encourage you to branch out and meet people. A physical activity incorporated into your schedule will lead to better health and personal confidence. Your numbers are 2, 13, 21, 24, 28, 35, 49.

PR FAILS

SO this entertainment company has tried every trick in the book to get out of the predicament it is in but so far, every PR strategy has failed. So now, they’re tugging at the hearts of fans by announcing that stars have taken pay cuts in favor of people who need it more. There’s even a story planted that one of the company’s biggest stars is foregoing any pay for that same reason. Everyone knows that this star forced the cast and crew of his show to shoot during quarantine and no extra precautions were taken despite the pandemic. The thing is that this company has turned its legal battle into one PR stunt after another, forgetting that the actual problem exists and has to be faced. All is not lost, however, because the influential boyfriend of one of their new stars is bent on helping the company so that’s good news.

a

ARIES (March 21-April 19): Discuss your plans with someone close to you, and the feedback you receive will help you make a decision.

Consider the changes necessary to achieve your dreams, and get the ball rolling. HHHH

b

TAURUS (April 20-May 20): Change begins with you. Consider what will make you happy, and start making the adjustments that will help you achieve your goal. Check out the possibilities, ask an expert and make a decision based on practicality, not emotions. HHH

c

GEMINI (May 21-June 20): Stick to what you do best. Don’t share your ideas, or someone will take advantage of you and steal credit for your insight. Trust is best earned, so don’t give in or let someone manipulate you. HHH

IN THE FREEZER

HOW true is the rumor that the network is no longer interested in supporting the careers of these two controversial celebrities? According to sources, the network has realized that the celebrities aren’t really assets but liabilities. Yes, they have fans who are noisy and vocal but the shows of these two celebrities don’t rate well, which means their supposed fans don’t even watch their shows. Also, one of them is older but still underperforming in terms of talent development while the other one seems hopeless at this point. The younger one seems to have a good following on social media. However, this is not enough for the network to reconsider. The younger celebrity is a problem because the network is not happy with her attitude.

The celebrity can be alternately rude and obnoxious, and only turns on the charms when she needs to.

FAKE IT

Everybody’s wondering how this youngish celebrity, a wife and mom, can afford all the designer goods that she is wearing. Her husband might have some savings but it’s not enough to pay for all those bags and shoes. The celebrity always has the newest release from the most prestigious brands. From her Instagram feed alone for three days, you will see millions worth of bags and shoes. Even some influencers and celebrities are wondering how on Earth she and her husband could afford such a lavish lifestyle. From her husband’s family, the actress learned that image is everything and if you don’t have it, you can fake it. So, yes, many of the credibility’s bags and shoes are Class A fakes. Nobody cares. The celebrity even borrows fake jewelry from her sisterin-law and no one has noticed that everything she wears is fake.

AN UNUSUAL MARRIAGE

THE actress is pregnant and her rich junkie husband is not awake or sober long enough to pay attention to her or her needs. He has given her enough money to take care of herself and her family. It wasn’t in the plan for her to get pregnant but it happened. She isn’t exactly unhappy. Her husband isn’t a bad man. He is kind to her and indulges her. He is out of it most of the time but he is generous. The love story of the actress and her husband is unconventional. He is much older than her. Many thought their marriage would not last but it did. It’s not a perfect marriage but it works for them. The actress is like her husband’s anchor.

Without her, he’d be in a much worse state. So who cares if he’s into his recreational stuff most of the time? They are happy and it’s all that matters.

d

CANCER (June 21-July 22): When in doubt, ask. Don’t let your emotions lead you down the wrong path. Ask questions to avoid making a mistake. Don’t feel you have to overspend to make an impression. Fine-tune a contract, and negotiate on your behalf. HHH

CLOCKWISE: Dwayne Johnson, Jennifer Hudson, Usher and Miley Cyrus

World leaders, stars unite at event aimed at fighting virus L

ONDON—A summit that included a starstudded virtual concert hosted by Dwayne Johnson has raised nearly $7 billion in cash and loan guarantees to assist the poor around the globe whose lives have been upended by the coronavirus pandemic.

Global Citizen said its summit with world leaders had raised $1.5 billion to help Covid-19 efforts in poor countries, along with a promise of 250 million doses of a vaccine for those nations if one is successfully developed. The group said it had secured $5.4 billion in loans and guarantees from the European Commission and the European Investment Bank to support fragile economies worldwide.

The event included a Johnson-hosted concert with performances by Jennifer Hudson, Miley Cyrus, Coldplay and Chloe x Halle. Cyrus performed The Beatles’s “Help!” in an empty stadium and Hudson performed “Where Peaceful Waters Flow” from a boat in Chicago. “The $6.9 billion that was pledged today to support the world’s poorest and most marginalized communities is an incredible next step on our journey out of the Covid-19 era, but there is more still to be done, as no one is safe until everyone is safe,” Hugh Evans, CEO of Global Citizen, said after the event on Saturday.

“As we fight this virus, we also need to take

care of the most vulnerable people and address the challenges they’re facing right now,” Canadian Prime Minister Justin Trudeau said during the event.

Speakers also included the leaders of Germany, New Zealand, El Salvador, Sweden, South Africa and Barbados. Organizers said the show was not just a fundraiser, but aimed to draw awareness to the disproportionate impact the coronavirus pandemic has had on marginalized communities.

French President Emmanuel Macron said shared action was needed to defeat the virus.

“Let’s mobilize, let’s refuse an ‘every man for himself’ approach, let’s continue to move forward together. France and Europe take their responsibility today and will do so tomorrow,” Macron said.

Worldwide, nearly 10 million people have been reported infected by the virus, and nearly a half million have died, according to a tally by Johns Hopkins University.

Experts say those figures seriously understate the true toll of the pandemic, due to limited testing and missed mild cases.

About a dozen potential Covid-19 vaccines are in early stages of testing. While some could move into late-stage testing later this year if all goes well, it’s unlikely any would be licensed before early next year at the earliest. AP

e

LEO (July 23-Aug. 22):Learn by watching others. If you make a premature decision, you will end up paying for your mistake. Pay more attention to doing your best and finishing what you start.

Take care of your responsibilities before you offer to help others. HHHH

f

VIRGO (Aug. 23-Sept. 22): Expect someone to use emotional manipulation to get his or her way. Don’t let anyone take advantage of you or what you have to offer. Draw the line, and you’ll gain respect. A personal victory is within reach. HH

g

LIBRA (Sept. 23-Oct. 22): High energy, coupled with dedication and determination, will help you accomplish what you set out to do. You’ll impress people with the way you handle your responsibilities and the solutions you offer. A change at home will turn out better than anticipated. HHHHH

h

SCORPIO (Oct. 23-Nov. 21): Observe the changes going on around you. If you don’t agree with what someone is doing, say so and opt to do your own thing. Follow your intuition, and learn from mistakes when dealing with friends, lovers and relatives. HHH

i

SAGITTARIUS (Nov. 22-Dec. 21): Inconsistency will lead to problems when dealing with people who are close to you.

Uncertainty regarding someone from your past will surface, causing emotional turmoil. Stick to the facts to avoid a conflict that could disrupt your personal life.

HHH

j

CAPRICORN (Dec. 22-Jan. 19):Someone you work alongside will use emotional tactics to confuse you. An opportunity will have stipulations you may not like. Read the fine print before you commit to anything. Go about your business, and focus on doing the best job possible. HHH

k

AQUARIUS (Jan. 20-Feb. 18): Follow through with your plans. It’s when you second-guess what you are doing that you fall behind or make a mistake. Someone will want to spend more time with you. Question motives before you decide to lend a helping hand. HHHHH

l

PISCES (Feb. 19-March 20): Can you keep a secret? Your integrity will be in question if you are too forthcoming with information about someone. If you feel like talking, share positive statistics, and you’ll gain respect instead of disapproval. HH Birthday Baby: You are dynamic, ingenious and original.

You are compassionate and proactive.

‘chemical equivalents’ by george jasper The Universal Crossword/Edited by David Steinberg

ACROSS 1 Excel command 5 Twilight heroine 10 Like JFK and LAX: Abbr.

14 Ancestry.com diagram 15 Criticizes severely 16 Nuclear reactor part 17 Best Actor winner for Network 19 Prince William’s alma mater 20 Samuel of the Supreme Court 21 Towel possessive 23 The “O” in XO 24 ___ & World Report 26 Cry one’s eyes out 27 Picnic crasher 28 All in the Family creator Norman 29 Where meals and deals go down 32 Actress Russell of The Americans 33 Correct way to sing 34 They turn blue litmus paper red 36 They turn red litmus paper blue 38 James ___ Garfield 40 Well-off 41 Support for a key player?

4 Shirts and such 4 48 Poetic planet 49 Banana bread additions 50 Herb with white flowers 52 Subj. such as ecology 53 Tolkien monster 54 Car dealer’s contract 55 Become slushy, say 57 Chemically neutral, or a hint to 17-, 29- and 41-Across 61 Two-time host of The Tonight Show 62 Like The Raven 63 Board game with secret passages 64 Place to fill up in Canada 65 Better Call Saul, e.g.

66 Towel possessive DOWN 1 Minnesota Wild’s city 2 End of an ultimatum 3 Site for rods and cones 4 Balance unsteadily 5 Texter’s good bud 6 Manning who retired in 2020 7 PC-to-PC connection

8 Nutlike Chinese fruit 9 More full of volcanic powder 10 On thin ___ 11 Polite refusal 12 Defeat handily 13 Drawn out, as a filibuster 18 Column’s opposite 22 Bath sound 25 Did 35 in a 25, say 26 Conflict that ended on November 11, 1918 30 40-Down workplaces 31 Le Monde article?

32 Japanese garment 34 Spirited horses 35 “What more ___ I say?”

36 Wite-Out manufacturer 37 Like sore biceps 38 One of a biblical 12 39 Trees in a Frost poem 40 Hosp. caretakers 42 Was uncouth at the dinner table 43 One may make art on glass 44 Long ditch

45 Delphi prophet 46 Charlatan 47 Stockholm natives 51 ___ carte 56 Court romantically 58 Garment with a training variety 59 Hoped-for outcome 60 ___ & Perrins Solution to yesterday’s puzzle:

Image BusinessMirror

www.businessmirror.com.ph

Wednesday, July 1, 2020

B5

Grow your own garden

I

N the concrete jungle that is Manila, you rarely see anything green. There are pocket wall gardens along Edsa struggling to survive, and for a time there was a row of ficus bordering it.

The trees are now scarce and far in between. Sadly, parks and open spaces have become a luxury only available to a few. If you are like me who grew up in the province surrounded by flora, the city can be harsh territory wanting some green.

Which is what I sought to do over the last weekend.

We have a small patch of land in front of our house which we asked somebody to landscape. The border near our wall is lined with camachile which sprout glorious leaves of pink and lilac in the summer. The groundcover is plain bluegrass so I enhanced it with some cuphea which blooms little purple flowers, and some purple and pink chichirica for added color.

However, my real project last weekend was the little garden in our balcony where I sip tea after dinner. I wanted to hang some pots macrame-style for the Peruvian ferns but gave up after several attempts—the nylon rope does not work, as well as the jute kind. I ended up repotting the yellow bells and the dama de noche so they could grow better and bigger, and rearranged some pots so the cypress could be in one corner and the philodendron on the other side. All of my plants in the balcony are potted because of the limited space, and it is also convenient whenever I want to rearrange them. But the important thing for me was to have a space where I can sit, relax and enjoy my brew.

One of the things I like about working on the garden is the physical element of carrying, tilling and potting plants which is basically a form of exercise.

You burn calories but at the same time you become stronger from all the activities involved in making your garden. After an afternoon of fixing the plants, my shirt was drenched with sweat but I got the satisfaction from being able to exercise and having fun putting it together. I actually did not notice the afternoon pass because I was so focused and happy fixing my garden.

Gardening also relieves stress. Maybe the focus of completing a task and seeing the result of our work has the effect of calming us and giving us a sense of accomplishment. Not to mention a garden also has the same effect as what the Japanese call shinrin-yoku or “forest bathing,” otherwise known as nature therapy or ecotherapy. This technique is used in improving one’s well-being by being surrounded with nature.

And what better way to do this than have your own garden where you can have your nature therapy. I am not surprised that three cats have joined me on the balcony and I also have two resident butterflies fluttering around the flowers. What could be more stress-free than that?

Maintaining your own garden can also help you get more sunlight which triggers your body to

Gardening relieves stress. Maybe the focus of completing a task and seeing the result of our work has the effect of calming us and giving us a sense of accomplishment. A garden also has the same effect as what the Japanese call shinrin-yoku or “forest bathing,” otherwise known as nature therapy or ecotherapy. This technique is used in improving one’s wellbeing by being surrounded with nature. I am not surprised that three cats have joined me on the balcony and I also have two resident butterflies fluttering around the flowers. What could be more stress-free than that? produce serotonin, one of the happy hormones that is responsible for boosting your mood and making you feel calm. And of course sunbathing in the early morning has numerous benefits, including the ability of your body to produce vitamin D which is responsible for regulating calcium absorption in the body. This helps your body maintain healthy bones, teeth and muscles. So, you see, maintaining your own garden helps in your general well-being.

And not only that, your garden can also have environmental benefits. Plants are natural air

purifiers and having a garden helps in ensuring you have enough clean air. Your garden can also become a home and playground for your pets and attract butterflies and bees which help in pollination. If you plant vegetables aside from ornamentals, you also gain the added benefit of having another source of food. You not only help yourself but you also help the environment.

Starting your own garden is not that hard. You first need to choose a place where you want your garden. If you do not have space for a bed of soil, potted plants are the way to go. If you do have a space

where there is soil, you need to consider foot traffic and the kind of plants you want to put there. Choose local plants which are suitable for your available space. Aside from foot traffic, also consider how much sun the area gets within the day, the adjacent structures or machineries, how the foliage would look in the space, and most importantly the season.

When you buy plants, ask the plant vendor what their recommendations are depending on the effect you like for your garden. Local plant vendors offer excellent advice on how to take care of the plants you buy, what to avoid, and other useful information to maintain your garden properly.

Of course, choose the plants you like. After all, the garden is meant for your enjoyment. You can experiment by putting together different plants which bloom at different times of the year. This way, you have a highlight plant throughout the year. A plant you might like to try is the kalanchoe, which sprouts a fiery red bloom during the Christmas season. This can be your focus plant as an alternative to poinsettia. Again, ask your local plant vendor what can go together and when a plant is at its best.

You can also make gardening an opportunity to bond with your family or just enjoy the garden together. Having a small garden will benefit not just you and your family but the environment as well.

I liked what I did with my balcony garden. I might have a small space for it but it is a place I can call my own where I can just relax and see the world pass by.

For now, I am content sipping my tea surrounded by yellow bells and the faint jasmine smell of the dama de noche. n

Combating the coronavirus contagion

By Nico Erie Ciriaco Small to medium enterprises (SMEs) form an integral part of our economy. They contribute to our gross national product (GNP). However, the Covid-19 global pandemic, like a great equalizer, has preyed on both established and relatively new enterprises.

The crisis has drastically changed the playing field for businesses everywhere.

A well-established spa is closing by month’s end.

Ditto a skin-care clinic that had been enjoying a steady clientele but whose operations plunged into the red at the onset of the pandemic. We also know of an entrepreneur who still peddles their line of clothing despite garnering only 10 percent to 20 percent of what they used to generate from sales, because he is optimistic things will go back to normal.

“In investing, never put all of your money in one and the same thing. Always diversify,” advised entrepreneur Wilbert Tolentino, who is holding tight onto his ventures as he rides the Covid-19 pandemic.

“Ever since I started my businesses, I’ve been following the traditional Chinese business mindset of not putting my money on a singular merchandise, product, or undertaking. That’s because in the long run, the stronger ventures will subsidize the struggling undertakings until they get their bearings and be self-sufficient.”

The NEDA (National Economic and Development Authority) has observed that the “acid test” for a local enterprise to join the market as one of its many

players is passing the two-year “rite of passage.”

Those who operate continuously for five years has a greater chance of surviving the rigors of the trade. Yet, as the pandemic erupted, it has folded a number of enterprises that had been in business for longer than a decade.

Continuing, Tolentino said: “While the Covid pandemic has crippled most traditional business setups, technology has found a way in helping merchants peddle their stuff online. Entrepreneurs need to adapt to the prevailing business atmosphere in order to be in the running with others in the fast-changing market. Telecommunication companies have been offering tailor-fitted packages that address the needs of their varied clientele.

“Despite the obstacles presented by the pandemic, some observers think me and my staff seem to be taking the many restrictions in stride. This is because long before the pandemic erupted, right from the beginning of my journey as businessman, I already envisioned a scenario wherein an external factor would close businesses one day. I didn’t know what it would be but I was certain it would happen one day.

“When the outbreak happened, I had to close most of my shops. The good thing was all of my businesses have set aside contingency funds regularly. In times of peace and quiet, we use it for bonuses or incentives during the holiday season. In this case, we used it to extend cash and relief goods for all staff members. We suffered from advanced rental payments because the checks have been issued postdated beforehand. It was

an overhead paid with no revenue in return for the meantime.

“The other setback we encountered was the momentary closure of our overseas business partners for our few BPO offices. Fortunately, they have reopened when the Philippine government allowed a number of certain business to reopen.”

Aside from Wemsap, a web development BPO that promotes products online, Tolentino also runs a bar, a spa/salon, as well as a buy-and-sell business of imported items.

“Also, if you have the gumption for securities and futures investment, put your money in some blue chip stocks or T-bills. Always take care of your personnel, especially in rough times. They will be your fallback.

Be innovative. These loyal set of workers will be the rungs that will catapult you to heights you may never have dreamed to attain. This fight could be a long one. As an adage inspire us, ‘When the going gets tough, the tough gets going.’ We hold tightly on our reins with no intention of quitting midstream,” said Wilbert, concluding our phone interview.

As of press time, the Philippines has recorded confirmed cases of 32,455 patients with 8,442 recovered cases and counting. Worldwide, the tally shows 9.37 million confirmed cases with 4.61 million recovered cases. The countries hardest hit by the pandemic are the United States, Brazil, Russia and India. All of the world’s governments are setting their sights on the release of a vaccine that would bring things back to normal.

Entrepreneur Wilbert Tolentino in pre-pandemic days.

B6 Wednesday, July 1, 2020

KINTO: A new mobility service to fit your dynamic lifestyle

Vista residences adapts a ‘New Normal’ safety policy for its residents

W

ITH the rapid spread of the coronavirus (COVID-19), infecting thousands of people worldwide, condo dwellers living in buildings with shared facilities and compact spaces are presented with an unprecedented set of challenges.

Vista Residences, one of the country’s leading leisure condominium developers, worked together with Globalland Property Management, Inc. to develop an extensive health and safety protocol to ensure the wellbeing of their community.

“Our residents, tenants, and employees’ health and safety are our utmost priority. We didn’t hesitate to tap into the expertise of Globalland Property Management to assist us in crafting and implementing precautionary measures to decrease the risk of disease transmission,” says Elizabeth M. Kalaw, Chief Operating Officer, Vista Residences.

Following the recommendation of the Department of Health (DOH) and World Health Organization (WHO), physical and social distancing protocols is strictly observed.

Vista Residences’ new guidelines on elevator etiquette suggest that only a maximum of four people can take the lift at a time to avoid overcrowding. Markers have been put in place to serve as guide for those lining up for the elevator. Elevator buttons are covered with plastics that are regularly disinfected and sanitized.

Sanitation and maintenance have always been a matter of great importance for Vista Residences, more so now than ever. Hand sanitizers and alcohol dispensers can be found on the counter by the entrance. Globalland

Property Management is on top of making sure that the building is cleaned and sanitized at all times.

“Our maintenance team conduct a thorough and frequent cleaning and disinfection of the building premises every hour. We also make sure that our custodial staff are well-equipped and protected with masks and gloves to ensure their safety,” shares Engr. Louie G. Guillarte, Operations Head, Globalland Property.

Another best practice that’s being exercised in all Vista Residences properties is the No Mask, No Entry policy. Everyone entering the building will also undergo a mandatory alcohol spraying and thermal scanning for temperature check administered by the guard or the personnel assigned. Anyone detected with a high temperature of 37.5C and above is required to seek immediate health care within 24 hours. A medical certificate will be requested to ensure that health care has been sought. Guests who show signs or symptoms of cold, flu or the like will not be allowed entry.

New tenants, move-ins, visitors and guests must also fill out a Health Declaration Form and even submit a health certificate or quarantine clearance issued by the InterAgency Task Force on Emerging Infectious Diseases (IATF), if the conditions apply.

Another cause of concern for a lot of people living in residential buildings is delivery for goods and services. Deliveries have been a lifeline for condo residents who are not physically able to buy their food, groceries, and other essential supplies during this period.

Guillarte also noted that Vista Residences

allow these services as long as it’s a no contact delivery. “We don’t ban deliveries because it’s a big help to our residents, but strict safety protocols apply to all delivery personnel. They are allowed up to the entrance only. The unit owner or tenant will have to personally pick up their deliveries.”

To further minimize social gatherings, shared amenities including but not limited to the Function Hall, Fitness Gym, Swimming Pool and Lounge areas are still closed for operation until further notice.

Signage on the safety protocols and No Mask, No Entry policy are mounted within the properties to make sure that everyone is well informed and reminded of the guidelines.

Asked about how the residents and tenants have received the news on the new policy, Kalaw has this to share: “We understand that these adjustments to the ‘new normal’ may not be easy for everyone, but we greatly appreciate the consideration and cooperation that we have received from the Vista Residences community.”

“Aside from following the new guidelines, we have seen and received reports that the residents are also doing their own initiatives, bringing paper towels or tissue and using it to touch common touch points like door handles, elevator buttons, and mailboxes; these might seem like simple gestures, but they contribute greatly in helping us curb the disease.”

Real estate and property development are one of the many sectors impacted by the COVID-19 outbreak. Vista Residences promises to continue working on improving their services and policies not just for their residents, but also for the benefit of everyone.

“There is now a shift in property management and development. More than just providing top-notch amenities, excellent views, and convenient locations, it’s also our responsibility to do what we can to ensure the safety of the whole community. It’s one of the ways that we can help the country during this difficult time.”

Vista Residences is the vertical development arm of Vista Land. Vista Land posted net income growth of P11.6 billion for full year 2019 with consolidated revenues, which grew by 7% (P44.4 billion from P41.5 billion last year). Vista Land launched projects with an estimated value of P38.5 billion for 2019 composed of affordable housing and mid-rise buildings.

Aliwalas life beyond the Metro

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T’S time to build a life outside the Metro!

Living in the city is what dreams are all about for most Filipinos. A life surrounded with luxuries and overflowing opportunities captures the success stories featured in newspapers and magazines. But this comes to a pause when this picture-perfect goal was shaken most recently by COVID-19 pandemic.

Pollution has been threatening lives for years.

Air, water, and noise pollution make up most of the city life. Now, the threat of pandemic instilled deeper worries. It caused lockdowns, prevented close contacts, therefore revealing the dangers of congested areas. Health and safety are now threatened due to the usual city situations.

With the amount of worries most Filipinos face living and working in the Metro, there is a need to search for a place, and a space, that is altogether safe, convenient, and maaliwalas.

Life Outside the Metro , Building a life beyond the Metro’s borders becomes one of the perfect solutions to escape health scares. There is a great need in having maaliwalas place to start the ideal balanced life. Past the Metro’s borders, in 40 locations nationwide, Lessandra communities stand, ensuring a life near the progress, yet far from all the worries.

More than building houses, Lessandra aims to provide homes and communities that exude convenience, quality, and security. From the first step of owning a home, to actually living in Lessandra, there is a guaranteed safety that awaits every Filipino ready to start an aliwalas life.

The life inside Lessandra communities is situated far enough to be safe, yet close enough to still revel in the life surrounded by opportunities.

Rather than only seeing the four pale corners of the room, everyone, especially the children, can freely move, explore, and enjoy the colorful surroundings filled with nature and parks.

Easy Way to Aliwalas Life, Easy-to-own housing has been defined by Lessandra’s back-to-back launch of digital innovations: Lessandra AR3D

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OYOTA Financial Services Philippines launches KINTO ONE, a new mobility service that fits today’s dynamic lifestyle.

With continuously changing customer demands, Toyota has geared up to provide a new customer experience for Filipino consumers who are exploring to shift from conventional car ownership to usership. Whether it is hassle-free personal transportation, moving of goods from point A to B, or the privilege of driving a new car every three or four years, KINTO ONE is the mobility service of the next generation.

“KINTO One”, the product package offered

by Toyota Financial Services Philippines, allows customers to select from Toyota models and drive the car for three or four years. It is a full service lease package with no down payment required.

The fixed monthly subscription already covers vehicle registration, annual comprehensive insurance, and regular periodic and preventive maintenance. Once the lease term is completed, the customer simply returns the vehicle to Toyota Financial Services and everything else is taken care of; such a great worry-free option for customers.

KINTO One offers basic level of customization to suit the customer’s lifestyle: · Car Model: Vios 1.5 G CVT Rush 1.5 G CVT Fortuner 4x2 G CVT (Diesel) Corolla Altis 1.8 V HV · Mileage Options: Light Package at 15,000 km/year Standard package at 20,000 km/year Maximum package at 30,000 km/year · Subscription Terms: Three (3) years

Pizza Hut celebrates delivery riders through Rider’s Pizza Day

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S a show of their appreciation to delivery riders, Pizza Hut will be celebrating Riders’ Pizza Day on June 30, 2020. On the said date, delivery riders will be given a box of free pizza for every ala carte order of a Large Super Supreme Pan Pizza that they deliver.

beat the safe space, free from the risks and worries brought by congested places and communal spaces.

Lessandra is definitely the more preferable place, where safety and aliwalas can be felt everywhere in each of its community. As health and safety scares start to fill the country and the world, life inside the Lessandra communities—life outside of the Metro—is the perfect and aliwalas solution to ease every worry each Filipino may have during the current time.

Lessandra is one of Vista Land’s residential brands that caters to the affordable market segment where demand is seen to continue amid this challenging times.

Vista Land posted net income growth of P11.6 billion for full year 2019 with consolidated revenues grew by 7% to P44.4 billion from P41.5 billion last year. Vista Land has presence in 147 cities and municipalities across the country and generate over 50% of its revenues outside Metro Manila.

For inquiries, call 0998 845 5126, or visit https:// lessandra.com.ph/. Follow Lessandra on Facebook, @ LessandraOfficial, Twitter, @lessandraonline, Instagram, @lessandraofficial, and YouTube, @lessandraofficial!

Under the promo, Pizza Hut will give a box of Regular Hawaiian Supreme Handstretched Pizza for free to the corresponding delivery rider for every ala carte order of a Large Super Supreme Pan Pizza, one of Pizza Hut’s most beloved pizza flavors made with nine delicious toppings on Pizza Hut’s signature Pan Pizza. Orders can be made through Pizza Hut’s hotline 8911-11-11 for metro manila orders, #11111 for provincial orders, via their website www.pizzahut.com.ph, or through their food delivery partners GrabFood and FoodPanda.

“Pizza Hut values the everyday modernday delivery hero, which is why we decided to honor their hard work through this initiative.

It’s our own simple way of giving back to our delivery partners for helping us bring food safely to countless Filipino homes,” said Pizza Hut Marketing Manager, Lorent Adrias.

Don’t miss out on the latest deals and promos from Pizza Hut by visiting their official Facebook page at www.facebook.com/pizza-hut.

Amway Philippines adapts amid COVID-19 pandemic with business agility and portfolio relevance

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App, Lessandra Website, and the latest, Lessandra Online Reservation Portal. Combined with the strong presence in YouTube, owning a space in the Lessandra communities has been made easier for every homebuyer wanting to experience the aliwalas life in Lessandra.

As social distancing is a huge part of the New Normal, shifting to online platforms is inevitable. With this, online house and site tours were made possible with the Lessandra AR3D and the Lessandra Online Channel on YouTube.

Forms, requirements, payments, and interviews swiftly shifted online, making dreams still come true despite the physical restrictions of community quarantines in most of the country. For as short as an hour, dream Lessandra homes can be achieved with the seamless digital innovations available.

Life Inside Lessandra, Nothing beats having an own space, from waking up to resting for the night. An angat life can be found in each Lessandra community nationwide, from the house interiors up to the leisure activities available in the courts, clubhouses, and pools within the community. More than that, nothing can

Four (4) years “KINTO is a step closer to realizing Toyota’s vision of Mobility for All. We would like to provide as much flexibility as possible to customers based on their lifestyle and preferences. We recognize that the next generation has a need for car usage, but not necessarily in the form of vehicle ownership. KINTO makes it easy for them,” said Mr Atsushi Murakami, President of Toyota Financial Services Philippines.

KINTO One will be available in all Toyota Metro Manila dealers beginning June 26, 2020. For details, please visit KINTO ONE Official Facebook page: www.facebook.com/ kintophilippines.

mway Philippines, local unit of the global direct selling giant, highlights the relevance of its product portfolio as well as its ability to swiftly adapt to rapid environmental changes as key factors in thriving during these uncertain times.

The pandemic has already seen a number of businesses suffer from the challenges that the past few months have brought. There are, nonetheless, organizations such as Amway Philippines that are able to not only stay afloat but even thrust forward amid the crisis.

“A significant pillar of our business at Amway has always been in personal health and wellness. This has proven to be more relevant than ever during this time of community quarantine, where consumers have embraced a lifestyle of selfcare,” says Amway Philippines Country Manager, Leni Olmedo.

“Strengthening our focus on this market and enhancing the accessibility of these products through multi-channel ordering has allowed us to generate more business and develop deeper relationships with our direct sellers.”

As the pandemic caused major shifts in consumer trends towards immunity and self-care, Amway found itself in a good position to readily respond to these needs with their health, personal, and home care products. The company houses multiple brands such as Nutrilite health supplements and Artistry Studio skin care and cosmetics that promote a healthy and empowered lifestyle, with high standards and sustainable processes in place that result to pure, safe and effective products.

“Having a diverse portfolio won’t necessarily make your business crisis-proof,” Olmedo said. “But if your portfolio is made of products that are relevant to your consumers, you will always have a market in any given situation.”

Olmedo advises businesses to take this time to look at consumer trends and revisit their portfolio. They can expand their products and services or better yet, come up with innovative and smart solutions to help improve lives during – and beyond – this crisis. But it doesn’t end with in-demand products and services; businesses also need to be able to quickly adjust logistics and operations to adapt to challenges and sudden changes.

For Amway Philippines, its direct sellers or Amway Business Owners (ABOs) had to shift from face-to-face interactions to video calls. “We provided our ABOs with trainings and resources to bring their offline communities online,” Olmedo shares. “We saw that the platform may have changed to digital, but the core of business-building through strong personal connections remained the same.”

She adds that a digital pivot is imperative for all companies, and for Amway, an online approach poses as an opportunity to attract even more participants in virtual programs since it is agnostic to time and location.

Logistics is another item that needs to adjust. Right now, everyone is prioritizing contactless deliveries and cashless payments to lessen the risk for contamination, so businesses need to look and invest in those solutions. E-commerce is another possibility that should be explored as it gives versatility and multiple platforms to a business – expanding its reach when successfully implemented.

Yet, Olmedo shares the most vital step that businesses must be taking now: keeping stakeholders informed. She explains, “Timely information helped our ABOs navigate their businesses in the midst of uncertainty. We strongly believe that during these difficult times, it’s important to be visible and transparent, even if the message is not what people would like to hear.”

BusinessMirror

Editor: Tet Andolong

Wednesday, July 1, 2020 B7

Wayste: Building sustainable cities of tomorrow

The app is designed to connect households and businesses to waste collectors—from kariton scavengers to large waste trucks

The operation of the Wayste app is similar to that of other servicebooking apps like Grab or Foodpanda, and goes through four phases

Amor Maclang

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first dibs in real estate

HE real-estate industry has been enjoying the wave of a massive boom, and with that, a greater demand for livability in an urban setting.

A livable city must have easy and affordable to ethically grown food and other amenities, easy travel between destinations, cleaner energy, and spaces for beauty and enjoyment.

Over three years since it was just an idea, Wayste has come far and is poised to revamp how the country deals with its trash. Wayste and its team are currently a finalist entry on the CNN Philippines business reality show, The Final Pitch. The show, hosted by business mogul and investor John Aguilar, is currently on its fifth season, which focuses real estate and making cities more ecological and livable.

Wayste has proven itself a fierce

competitor and powerhouse business, not only on the show, but for the future. Waste is a constant and eternal after-effect of literally every human activity, and proper disposal is an essential element to the livability of any city, but in the Philippines, it is one of the most under-addressed.

The problem Wayste is trying to solve In the Philippines alone, 12.78 million tons of waste is generated every year— not accounting for the increased levels of medical waste now being produced.

Studies have shown that, even though the Philippines has adequate policies in place to manage waste, such poli-

cies and regulations are only loosely followed, which could mean yet undetected damage to the environment.

The presence of several global brands also contributes to the massive plastic waste produced. What’s worse is, a Georgia study has shown that nearly 81 percent of plastic waste in the Philippines is mismanaged.

Several incidents in the last decade have also shown that first world countries had been treating the Philippines like a dumping ground, shipping containers upon containers of their own waste to us. Investigations have yielded no insight into possibly how much garbage has been shipped to the Philippines over the years. This does not pose well for our real estate and livable cities thrust.

Some European countries have created waste disposal systems and cycles so efficient that they have had to import the waste of neighboring nations to fulfill their own country’s recycling needs. Such a phenomenon has proven that it is possible to produce zero waste—even negative waste—on a national scale. In an ideal setting, it would be so in the Philippines, but it is very clear that there is still a long way to go.

Bridge360, a tech company homegrown right here in the Philippines, has come up with Wayste, using their team of renowned experts and innovators. Wayste is an app that seeks to facilitate waste management, by connecting consumers—whether private or commercial—with waste management institutions and professionals to maintain livable cities in the Metro.

The goal behind Wayste was to democratize waste management, and empower communities to monitor their own waste management.

The seamlessness of the connection between community and waste managers creates transparency, and therefore, better compliance to regulations and standards.

It is built on a social enterprise model, wherein segregation is gamified and incentivized in order to stimulate community involvement. The app is designed to connect households and businesses to waste collectors— from kariton scavengers to large waste trucks. The app also collects everimportant data on waste collections.

The user experience The operation of the Wayste app is similar to that of other service-booking apps like Grab or Foodpanda, and goes through four phases. It begins with the user, who wants to dispose of some segregated trash—anything from kitchen wastes, recyclables, electronic waste, etc. Through the app, the user can take a picture of their trash so they can be matched with the appropriate trash collector with the right capacity.

The app uses mapping technology to show the user trash collectors within the area, among which the user can choose at their discretion. After having been matched with a trash collector and finished the agreement, the user can then rate their experience with the collector. These ratings are a feedback system to make sure the experience is good for both the user

The Wayste team is actively looking for local government unit (LGU), institutional partners, nongovernment organization (NGO) partners, industry partners, real-estate developers and funders. and trash collector.

The trash collector can then bring and dispose of the waste at a nearby disposal or recycling center. This part of the process can be tracked and monitored by the moderator. Once this process is finished, the user receives a report on how their waste was disposed.

They can then enjoy the incentives (in the form of Eco Points) of having both used the app, and congratulate themselves on having contributed to a zerowaste initiative. These Eco Points can then be redeemed for various rewards with Wayste’s partners.

How Wayste came to be The inception of Wayste was back in 2017, with Bridge360’s Engr. Rage Gonzales, during her time at the Asian Institute of Management. Finally, Engr.

Rage decided, as CEO and founder of Bridge360, that Wayste should and would come to existence in January 2019.

By May 2019, development on the app and web dashboard had begun. In July 2019, the Wayste Team took a trip to Hong Kong as one a few handpicked start-up exhibitors from the Philippines to present their brainchild. The team grew in August of that year as more app developers and environmental advocates joined the team.

In October of 2019, Wayste was still growing and going through its planning and development stages, but was also being implemented in Bacolod City. By the end of 2019, beta testing was done. The pilot testing proved that another business model had to be

deployed. The newly enhanced Wayste with additional features such as a marketplace and citizens engagement portal are expected to be available for public use by end of August 2020.

Waste management was already a global problem even before the pandemic hit, but an unprecedented side effect of the Covid-19 crisis was the sheer amount of medical waste being produced. Masses of masks, hand sanitizer bottles, etc., are not being disposed of properly, and are ending up in our oceans. The increased demand for home deliveries is also contributing, with the usage of cardboard and single-use plastics increasing.

Real-estate partners The Wayste team is actively looking for local government unit (LGU), institutional partners, nongovernment organization (NGO) partners, industry partners, real-estate developers, and funders. Wayste will be opening its Series A funding round around the Q3/Q4 of 2020. This is now the opportunity to help the environment through technology. Let’s all strive to have a more livable and more caring communities. Contact Rage Gonzales, Bridge360’s founder and CEO, and Wayste’s project lead at ragegonzales@waysteph.com.

Watch the entrepreneurs like Wayste Inc. on The Final Pitch Season 5: Real Estate and Livable Cities Edition.

Premieres Sundays 8:30 p.m. with replays Mondays 9:30 p.m. and Saturdays 5:30 p.m. on CNN Philippines.

Check out TheFinalPitch.ph to watch previous episodes and seasons.

The Japanese way at The Seasons Residences Coworking space remains sustainable for enterprises amid coronavirus

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T the heart of Japanese minimalism is the cultural concept of “Ma” or the space between things. It is about finding beauty in simplicity. It is a philosophy that the Japanese apply to all aspects of life, from the respectful pause when they bow to each other, to the quiet moments for contemplation while drinking coffee, and even to elements of design.

The use of space in Japanese residences is where this concept of efficiency is quite evident and clearly beneficial. Throughout the years, they have refined home organization into a lifestyle and an art form—creating clutterfree, relaxing, and welcoming spaces. It is no wonder that Japanese residential designs are a perfect example of smart, yet aesthetically pleasing, space usage and making the most out of compact living.

Space and storage are given the Japanese approach at The Seasons Residences, the upscale Japanese-inspired residential development that will soon rise at Bonifacio Global City (BGC). Each unit of The Seasons Residences channels Japanese discipline, design and aesthetics to maximize space.

Similar to a typical Japanese home, the units at The Seasons Residences open to a genkan, the transitional space between outdoors and indoors where visitors are welcomed and are required to take off their shoes before entering. This is a Japanese tradition that goes back to the Meiji era over a thousand years ago and has persisted to the present even with the introduction of Western influences.

The Seasons Residences continues this Japanese tradition by installing a getabako or shoe cabinet at the entrance of every condominium unit. The getabako prevents footwear from cluttering up valuable space inside the unit; it minimizes dirt, mud, and grime from entering and soiling the floor.

By Roderick L. Abad

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In Japanese homes, the kitchen is considered a utilitarian space where the design focuses on functionality rather than aesthetics. It is important that every element has a purpose and a place. Following this concept, the kitchens at The Seasons Residences are equipped with practical storage solutions to minimize clutter. The built-in sink is larger than standard, so multiple tasks can be done at the same time. Each unit comes with spacious cabinets for proper storage of utensils, equipment and food. For a clutter-free kitchen, a built-in floor storage is also installed to keep heavy items like condiments, bottles, and canned goods out of sight. This is a common feature in highly traditional Japanese homes.

The innovative storage solutions at The Seasons Residences extend to the bedrooms as well. Floor-to-ceiling Japanese-style closets maximize the space in the area, giving plenty

of room to breathe and interact. Going back to the philosophy of “Ma,” having negative space lets one focus, de-stress, and keep the mind free from negativity.

The ingenious storage systems, as well as the generous spaces at The Seasons Residences help residents organize, allowing them more time to reflect, relax and meditate. Embracing harmony also creates more room for relationships and meaningful interaction. Take a closer look at how we treat spaces by visiting the showroom at 7th Ave cor. 34th St., Grand Central Park, North BGC, Taguig City (across the Lexus Manila Showroom). For more information, e-mail invest@federalland.ph.

The Seasons Residences is a collaboration between Federal Land Inc., Nomura Real Estate Co. Ltd., and Isetan Mitsukoshi Holdings Ltd. The development’s first tower, Haru, is set for completion in 2023. Reni Salvador

OW that global economic activities have slowly resumed with the easing of lockdown measures against the coronavirus disease 2019 (Covid-19) pandemic, companies have reopened their businesses while still prioritizing employee engagement and productivity.

Although working from home has brought a great deal of convenience, returning to the workplace remains possible without compromising social distancing.

It is for this reason that companies still consider to have multiple workspaces in the same place to back up their segregated employees. This is by alternate staffing or having or setting up their headquarters in one building and have supporting functions in other flexible shared offices.

“Having a workspace remains as a powerful tool to foster engagement, inspire innovation, and drive productivity,” said Turochas Fuad, WeWork managing director for Southeast Asia and Korea. “A well designed one will further elevate the work environment and experience for employees, promoting better collaboration, comfort and happiness in the workplace. It is now even more important to provide employees with the confidence of a workplace that prioritizes their health and safety.”

The WeWork Southeast Asia team has recently reviewed feedback and worked with industry partners and government bodies across health and safety, cleaning, construction, and design to install

enhancements.

From adjusting shared spaces with staggered seating and buffer zones to accelerated cleaning and sanitization procedures, the focus will be on three key areas: prioritizing personal space, cleanliness and behavioral signage.

“WeWork has redefined the workspace over the years, reimagined for the way spaces are sourced, built and designed to ultimately bring people together and help members be successful,” he said.

Fuad added that their space design aims to achieve an elevated office environment and experience for the members, “promoting better collaboration, productivity, comfort and happiness in the workplace.” While Manila is stil under the general community quarantine, the company keeps on engaging its members by taking inspiration from its community element—arranging webinars and sessions with business leaders and members to sustain ongoing engagements and exchange of ideas.

“While distancing may be part of the new work order, our goal is to ease the transition back to the workplace by proactively revamping WeWork’s product to meet member expectations around social distancing and cleanliness. This allows us to focus on our ability to create an environment that facilitates connection globally in a thoughtful and user-friendly way,” the top executive said.

Beyond fostering partnership and productivity, the firm’s role is also to drive business efficiency of its members.

“As many of our enterprise members have a global presence through us, they

have been turning to us for counsel and guidance to navigate the evolving situation and ensure the safety of their employees across the region,” Fuad said.

“We are also seeing an increase in proactive conversations from our members and non-members to better understand the importance and relevance of spaceas-a-service as part of their business continuity planning strategy.”

Flexible workspaces allow enterprises to scale the amount of space needed, especially in the time of Covid-19. In fact, big companies are future-proofing operational efficiencies by innovating their global real-estate strategy and closing deals with flexible workspaces.

As the Philippines continues to attract global and regional companies, they turn to WeWork to address their real-estate needs—with their speedto-market up to three times faster than traditional options and with end-to-end solutions from information technology, employee experience to security and now post-Covid-19 solutions.

WeWork Philippines has been able to track a 25-percent growth in enterprise members from last year to May 2020, being one of the markets with the highest growth across Southeast Asia, next to Malaysia.

Given the new normal, strict protocols will always come with innovative approaches toward collaboration and productivity so as to have common workspaces. Fuad stressed: “We will always be driven by the concepts of community and connection and ready to pivot to what companies need. This is what truly makes us WeWork.”

BusinessMirror

B8 Wednesday, July 1, 2020

BOXING federation President Ricky Vargas and Secretary-General Ed Picson say the national boxers need to return to actual training.

Vargas bats for age limit at POC

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icky Vargas on Tuesday said he would recommend an amendment in the Philippine Olympic Committee’s (POC) charter that would set an age limit of 70 for individuals seeking election to sensitive positions in the sports body.

Vargas, a former POC president who currently heads the boxing association, said in Tuesday’s online Philippine Sportswriters Association that it would be beneficial to the POC if it gives chance to the “younger generation.”

“I’m doing these changes because we feel these are important,” said Vargas, stressing that the

Sports BOXERS NEED TO REBOOT

International Olympic Committee already implemented a 70-year-old age limit for its officials.

“It’s about giving way to younger generations. Give them the opportunity to run the organization,” he said.

Vargas continued that officials should also be a president of one, and not multiple, national sports association, while adding that associations no longer recognized by their international federations should be automatically dropped from the POC membership.

Ramon Rafael Bonilla

By Ramon Rafael Bonilla

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ILIPINO boxers are hoping for a muchneeded recalibration to keep them back on track toward their and the country’s Olympic dream.

“We lost steam,” Ricky Vargas, president of the Association of Boxing Alliances in the Philippines, told Tuesday morning’s Philippine Sportswriters Association Forum webcast “Our boxers were ready [for Tokyo 2020 Olympics], until the virus,” added Vargas in the forum powered by Smart and presented

by San Miguel Corp., Go For Gold, Philippine Amusement and Gaming Corp., Amelie Hotel and Braska Restaurant.

The Tokyo Olympics were scheduled for next month but were postponed for next year because of the Covid-19 pandemic.

And despite a year’s postponement, doubts persist as to whether Tokyo could still go on with the Games or cancel them outright.

A recent survey, as reported by the wires, revealed more than half of Tokyo’s residents are uncomfortable with the Olympics because of the risks the Games would present.

“I’m just hoping that the Olympics will push through because this is our best chance,” Vargas said, adding that if the pandemic stays next year, canceling the Games is the only option facing the host and the International Olympic Committee.

Eumir Marcial and Irish Magno already qualified for Tokyo, while four others—Nesthy Petecio, Carlo Paalam, Rogen Ladon and Ian Clark Bautista—are still trying to qualify.

Abap Secretary-General Ed Picson, who also joined the forum, said the boxers remain steadfast in training although they have to make do with online supervision by their coaches.

“But training online is not the same. We need to go back to the gym to spar and box. Not only here, but overseas as well,”Vargas said.

“But given the situation, that [online training] is the next best thing,” Picson said.

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

YOUNG BOXER CLEARED OF COVID

THE boxing officials heaved a sigh of release upon receiving confirmation on Tuesday afternoon that a 17-year-old boxer, a product of the Batang Pinoy, was cleared of contamination with the virus.

BusinessMirror learned from the boxer himself—whose identity had to be kept— that he tested positive after undergoing a rapid test last Friday.

He immediately underwent swab testing and was isolated from his teammates at the Abap’s Baguio City facility for three days. On Tuesday afternoon, the swab tests showed negative results.

Picson said they were initially alarmed because the young boxer lived and trained with his senior teammates, including Magno and Petecio.

The Abap official assured that the boxers observed health protocols and only left the facility to buy essentials at convenience stores.

FROOME’S NOT GOING ANYWHERE CHRIS FROOME’S mid-season transfer is off as Tour de France spot beckons at Team Ineos.

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HRIS FROOME’S chances of a mid-season transfer are over after a source close to his contract situation told Cyclingnews that the four-time Tour de France winner would remain at Team Ineos until his contract expires

at the end of the season.

The news comes after weeks of speculation linking Froome to a mid-season move to Israel Start-Up Nation ahead of this year’s rescheduled Tour de France.

Froome is out of contract at the end of the year and has been linked to a number of teams including Israel Start-Up Nation, CCC Team, Bahrain McLaren and Movistar.

Bahrain McLaren, although having the best roster from the possible list of suitors, is hampered by financial constraints related to the Covid-19 pandemic and has put its riders on wage deferrals.

CCC Team has yet to find a sponsor beyond 2020, while Movistar was quick to distance themselves from a high-profile move after staking its future on a flurry of younger riders signed at the end of 2019.

Froome’s position at Team Ineos looked uncertain ahead of the Tour, with Egan Bernal and Geraint Thomas also looking to lead the team. Froome, 35, has not raced a Grand Tour since 2018 and is coming back from a long injury layoff after crashing at the 2019 Critérium du

Dauphiné but he told media several times that he is fit and ready to aim for a fifth and recordequaling Tour de France title.

A slow response from Team Ineos when it came to contract talks opened the door for other teams to approach Froome, but at a recent training in Isola, France, the team assured Froome that he would form part of their strategy at the Tour de France, with a threepronged leadership challenge.

There had been concern within the Froome camp that a decision to move to another team for 2021 would threaten his spot in this year’s Tour. However, those concerns appear to have been eased by the team for now. The team has not yet released their final selection for the Tour.

A move to Israel Start-Up Nation this summer would have given Froome a clear run at Tour

All’s silent at All England Club on Wimbledon’s supposed Day 1

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IMBLEDON, England—When the clock struck 11 a.m. at the All England Club, there was silence.

Not because a player dressed all in white was about to whack a serve on one of Wimbledon’s many perfectly kept grass courts, but because there is no tennis this year at the oldest Grand Slam event in the world.

Monday should have been the first day of the two-week Wimbledon tournament, and matches usually start just before noon on the outside courts. But because of the coronavirus pandemic, the tournament was canceled for the first time since World War II. “Sad,” said Mary Robbins, a local resident who grew up in Wimbledon and relishes getting a glimpse of Roger Federer or Serena Williams walking through the neighborhood. “It’s been part of our lives forever.”

Every year, just in time for strawberry season in Britain, the world of tennis turns its focus to the All England Club. The traditional tennis whites worn by every player, the gleaming green grass at the start giving way to brown blotches along the baseline at the end, the majesty of Centre Court on the final weekend.

“It’s the highlight of the year for us,” said

A GARDENER waters plants alongside a statue of former Wimbledon champion Fred Perry at the All England Lawn Tennis Club in Wimbledon in London on Monday. AP

Fans set to return to SKorean pro baseball with restrictions

S

EOUL, South Korea—South Korea’s professional baseball league says it will require fans to wear masks and to sit at least a seat apart as it prepares to bring back spectators in the coming weeks amid the coronavirus pandemic.

The Korea Baseball Organization on Tuesday said fans will also not be allowed to eat food in the stands. Teams will also be initially allowed to sell only 30 percent of the seats for each game, a figure that could be expanded to as much as 50 percent depending on the progress in the country’s antivirus efforts.

Fans will also be screened for fevers and discouraged from shouting, singing and cheering during the game. And perhaps as a means of discouraging any boisterous behavior, beer will also be banned and fans will only be allowed to drink water or nonalcoholic beverages.

They will be able to buy tickets only with credit cards so that health authorities could easily locate them when needed. South Korea has been actively tracing the contacts of virus carriers using credit-card information, cellphone location data and surveillance camera footage.

The KBO became one of the world’s first major sports competitions to return to action in May, but without fans in the stands. Seats have been covered with cheering banners, dolls or pictures of fans as teams tried to mimic a festive atmosphere.

Health authorities and sports ministry

NO TO RACISM

officials have been discussing preventative measures as they try to schedule a return of fans in baseball, soccer, golf and other sports.

The plans could be announced as early as this week.

South Korea’s moves to readmit fans in sporting events come despite a resurgence of the coronavirus in the Seoul metropolitan area, which is home to about half of the country’s 51 million population. Despite the steady rise in infections, government officials have been reluctant to enforce stronger social distancing guidelines out of concerns of further hurting a fragile economy. AP

Players see action during the English Premier League match between Crystal Palace and Burnley at Selhurst Park in London on Monday. Fans are nowhere to be seen but the league stresses a point in the fight against racism. AP

leadership but it would have also needed the blessing of Dave Brailsford and possibly a financial compensation package in order to release Froome from his current deal earlier than planned. The Israel team’s roster is also not currently equipped to fully support Froome, and would need strengthening over the winter in any case.

The end of transfer speculation over a midseason move does little to dispel talk surrounding Froome’s long-term future. Cyclingnews learned that Ineos is still some way off when it comes to offering its only multiple Grand Tour winner a new contract and that talks with Israel Start-up Nation has reached a point where any counter offer from Ineos would be too late.

An announcement over Froome’s long-term future is set to be made in the near future.

Cyclingnews

Robert McNicol, the librarian at the All England Club who has been working from home since March. “As somebody who loves tennis, it’s what I live for every year.”

But 2020 is not like any other year. The coronavirus has claimed more than 500,000 lives around the globe and caused havoc on much of the sports world. And while many sports have gotten back into action or are about to, Wimbledon decided in April to skip this year, in part because it had the foresight to buy insurance against a pandemic.

That insurance will certainly help the All England Club deal with the loss of income this year, but the local businesses in Wimbledon Village just up the hill from the grounds are going to take a big hit.

Normally, the shops, restaurants and bars fill their windows with tennis-related themes, hoping to draw in tennis-obsessed visitors. It’s like a little slice of tennis heaven for two weeks.

“The tennis quadruples my turnover, which allows me to pay my rent,” said Kelly Duffy, a restaurant owner whose patrons often include professional players and their families.

Duffy has been fortunate, though. Because she has a license to sell alcohol for takeaway as well as food, she’s been able to open her business through most of the lockdown, bringing in more money than usual in recent months. AP

Al Mendoza alsol47@yahoo.com

THAT’S ALL

‘We can’t outrun the coronavirus’ IN a running contest, you race to win.

Because losers, like loonies, are left mostly unremembered. To hardcore sports buffs, only winners make memories matter.

I guess that’s the frame of mind of Adam Silver when he decided to set the NBA (National Basketball Association) restart on July 30.

Silver, largely frowned upon as a suitable replacement of the late, eminent, David Stern as NBA commissioner for his perceived lack of sterling credentials—a myth, I must say—has picked the Disney World in Orlando, Florida, as new venue for the NBA games.

For three months beginning July 7 when players from 22 teams start arriving in Florida, the Disney campus is home to the world’s greatest basketball players. Everyday they will be tested for Covid-19 protocols, with games on a touch-and-go modality.

The resort is the most massive of all Disney attractions in the world. So mammoth, indeed, that one week would be too short a time for you to cover the entirety of the complex. I should know. I was there in 2000.

So overwhelmed was I of the hugeness of Epcot (the real name of the Disney complex, Epcot being the acronym for Experimental Prototype Community of Tomorrow envisioned by Walt Disney in 1966) that, of the resort’s 11 pavillons representing 11 countries (Canada, the United Kingdom, France, Morocco, Japan, US, Italy, Germany, China, Norway and Mexico), my buddies and I could only finish “touring” one country: Mexico.

OK, you want more history?

I was there 20 years ago with Jake P. Ayson and the late Vince Villafuerte (bless his soul) upon the invite of Martin Valdes.

Jake, Vince and I happened to be in Florida for a golf rules conference at nearby Sawgrass Golf Club in Ponte Vedra Beach. We visited Epcot as it is considered a mortal sin not doing it when you are in Orlando.

And Martin was a mannah from heaven as he was an Epcot executive at that time. With Martin’s free tickets for us, Jake, Vince and I saved at least $200 each.

Martin also happens to be in the life story of Tiger Woods that I won’t get tired writing about.

The son of my bosom buddy Gabby Valdes of Forbes Park, Martin was the kid Tiger Woods defeated via a stinging last-hole birdie for the 10-and-under boys crown in the San Diego, California, World Optimist Championships in the 80s.

So devastated was Martin of his heartbreaking setback that he refused to receive his runner-up trophy during the awarding ceremonies. Worst, Martin, to erase the memory of his impending win suddenly transforming into defeat, abruptly retired from golf—only to have Tiger Woods as his next door neighbor in Sawgrass years later.

“That’s life, indeed,” said Martin, chuckling.

Now back to Silver, who considers the NBA return on July 30 as a day to start outracing the coronavirus.

“I’m very comfortable with my decision for the restart,” Silver said. “The Disney complex is a closed network and while it’s not impermeable we are in essence protected from [Covid] cases around us. My ultimate conclusion is that we can’t outrun the virus and this is what we’re going to be living with for the foreseeable future, which is why we designed the campus the way we did.”

Let’s wish him well—and the NBA as well.

THAT’S IT Jake, Vince and I got “stuck” at the Mexico pavillon theme park because of our “one margarita too many” binge, with burritos, empanadas, tamales and enchiladas on the side. Hic! I bought a wooden Mexican parrot as a remembrance; the blue-andyellow carving still hangs by our front window.