BusinessMirror July 06, 2020

Recovery hinges on stimulus funds—think tank

By Cai U. Ordinario

@caiordinario

H

HOUSEKEEPING attendants Evelyn Atienza and Glenda Valdez do their chores inside the pre-departure area of Naia Terminal 3, which will resume international operations starting July 8, 2020. The airport's Terminal 3 airlines which were relocated to Naia Terminal 1 in March will return to Terminal 3 ahead of the resumption of operations. NONIE REYES

OPES for a quick V-shaped recovery are dimming as a local think tank now projects that the P1.3-trillion stimulus package has yet to be approved and spent.

In its latest Market Call report, First Metro Investment Corp.-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research said bulk of the stimulus package can only be spent in 2021.

The think tank said the country’s recovery from the coronavirus 2019 (Covid-19) pandemic relies on the ability of the government to spend the stimulus. It is expected that the measure can only be approved in August.

“A V-shaped recovery may not ensue unless the government can start spending fast its new stimulus package of some P1.3-trillion [approval may come only by

August] and ability of firms to restore and strengthen their supply chains and provide safe work environments for their workers,” FMIC-UA&P Capital Market Research said.

The think tank said consumer spending is not expected to recover soon, since firms may still feel the need to save more for “unexpected adverse events.”

These include a second wave, which the think tank does not think likely; typhoons which are prevalent in the second half of the year; and the slow delivery of financial support to Filipinos from the government.

This dampens demand and is the reason for FMIC-UA&P Capital Market Research to project a benign inflation despite the recent increase in oil prices.

“Even though crude oil prices have soared in June, these will remain still 40 percent below those [prices] a year earlier.

Food prices may only have a slight uptick as removal of strict quarantine mandates

would allow faster restoration of supply chains and transport services. Thus, we see limited upside for headline inflation in Q3 [third quarter],” it said.

However, the think tank said it already expects positive growth in the third quarter and near-normal growth in the fourth quarter.

It also expects that the employment data to be released by the Philippine Statistics Authority (PSA) in September will not be as grim as the April data, which revealed 5 million Filipinos became unemployed during the period.

This optimism, the think tank said, is supported by the gradual easing in lockdowns particularly in Metro Manila and Central Luzon. The recent transition to general community quarantine (GCQ) and better of these areas has freed up about 62 percent of GDP. Continued on A4

BIZ LEADERS SEEK FULL

w

n Monday, July 6, 2020 Vol. 15 No. 270

P25.00 nationwide | 2 sections 16 pages |

OPERATION IN KEY AREAS ONLINE PURCHASES SEEN TO PUSH UP PHL FOOD RETAIL SALES

O

CATHOLICS observe physical distancing as they attend Sunday mass at Quiapo Church in Manila, which is under general community quarantine. ROYDOMINGO

I

By Elijah Felice E. Rosales

@alyasjah

NDUSTRY leaders on Sunday endorsed the full resumption of work in several sectors, particularly construction and manufacturing, deemed crucial in the economy’s recovery in the second half of the year.

Private sector leaders polled by the BusinessMirror agreed the government should now permit some industries to return to 100 percent capacity. Authorizing the full resumption of operations in selected fields would not only generate revenue for the economy, but provide jobs as well for millions in a time of rising unemployment,

they said.

American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe called on policy-makers to let the construction and manufacturing sectors return full gear to supply the domestic requirements for infrastructure and finished goods.

Continued on A2

Lawmakers cite urgency of Bayanihan 2’s passage

By Butch Fernandez @butchfBM

& Jovee Marie N. dela Cruz @joveemarie

L

AWMAKERS on Sunday reiterated willingness to tackle measures to help businesses and workers recover from Covid-related disruptions, as they await Palace’s final confirmation of the date for a special session for the purpose.

And, unlike the Bayanihan 1 law which mostly comprised outright doles amid the emergency situation from the forced lockdowns to stop Covid-19’s spread, the bulk of Bayanihan 2 will go to lending to businesses and sectors disrupted by the pandemic, and to ramp up testing and contact tracing to fight the virus, Sen. Juan Edgardo Angara said over the weekend.

Thus, timely passage of the second

PESO EXCHANGE RATES n

measure, officially called Bayanihan to Recover as One Act—in contrast to the first Bayanihan to Heal as One —is of urgency, given the need to help businesses and workers get back on their feet, and grow the economy, he pointed out in a radio interview.

Angara, chairman of Finance Committee endorsing the money measure, gave assurances of the Senate’s readiness to frontload approval of the awaited funding

that senators trimmed from P157 billion to P140 billion before their sine die adjournment last June 5.

They approved it on second reading, but could not proceed to third reading, as the Executive failed to send a certificate of urgency that would have allowed the chamber to shortcircuit the three-day requirement between second- and third-reading approvals.

NLINE food purchases by Filipino households during the Covid-19 pandemic will drive the country’s food retail sales to rise by a fifth to a record-high $60 billion this year, according to the Global Agricultural Information Network (Gain).

The Gain report, which was prepared by the United States Department of Agriculture Foreign Agricultural Service in Manila, expects a 30-percent shift by Filipino consumers to online food shopping.

The country’s food retail sales reached an unprecedented $50 billion last year on the back of higher purchases by the middle-income class earners, according to a previous Gain report.

Although online grocery stores and delivery platforms have been existing for quite sometime, Filipinos embraced these more during the Covid-19 pandemic to cope with social distancing measures, it added.

“Since the start of the Covid-19 outbreak, consumers have been increasingly cooking food at home, driving a surge in purchases of local and imported food and beverage products from supermarkets and online portals,” read the report, which was published recently.

“Based on interviews with the key players, 25 to 30 percent of their shoppers have shifted to online platforms and they foresee more will move in the coming months as user interfaces are improved, out-of-stock situations are addressed, and delivery times are shortened,” the report added.

Key players

THE report noted that some of the online key players in food retail are Landers, LazMart, Shopee Mart, MetroMart, Puregold, SM Markets Online and Waltermart delivery.

Citing traders, the Gain report said 70 percent of the food service sales or about $10 billion would go to the food retail sector this year as consumers shift away from restaurants to cooking food at home.

“Retailers with strong digital presence are likely to fare better in 2020 as consumers move towards e-commerce since the start of the Covid-19 outbreak,” the report added.

“This unprecedented shift from food service to food retail has created opportunities for more US food and beverage grocery products to enter the market.

The Philippines has been a growing market for imported foods and beverages even prior to the Covid-19 pandemic due to its emerging service-based economy backed by the so-called demographic sweet spot, according to the Gain report.

“With a population of 109 million in a combined landmass the size of Arizona, opportunities for imported foods and beverages are already significant and continue to offer strong potential for growth into the future,” it added.

Last month, the National Economic and Development Authority (Neda) disclosed that Filipinos would demand healthier foods and rely more on digital transactions for their food transactions under the country’s “new normal.”

These are some of the results of the survey conducted by the Neda a few months ago that sought to define and characterize what is the new normal in the country’s agriculture sector.

Online platforms have also become a vital instrument to help farmers directly link with consumers during the Covid-19 pandemic as traditional markets have been disrupted due to restricted movement.

Jasper Emmanuel Y. Arcalas

Continued on A2

US 49.7770 n JAPAN 0.4630 n UK 62.0769 n HK 6.4228 n CHINA 7.0446 n SINGAPORE 35.6876 n AUSTRALIA 34.4556 n EU 55.9543 n SAUDI ARABIA 13.2721

Source: BSP (3 July 2020)

News

BusinessMirror

A2 Monday, July 6, 2020

www.businessmirror.com.ph

Govt marks 9.3-B liters of fuel in steady fight vs tax leakages

T

By Bernadette D. Nicolas

@BNicolasBM

HE government has so far marked 9.3 billion liters of fuel in a bid to plug tax leakages.

An infographic on fuel marking shared by Finance Secretary Carlos G. Dominguez III with reporters over the weekend showed 75 percent of the marked fuel were in Luzon, 20 percent in Mindanao and 5 percent in Visayas from September 2019 to July 2.

Petron still cornered the biggest volume of marked fuel at 24.18 percent or 2.25 billion liters.

Rounding up the top 5 was Shell with 20.41 percent or 1.9 billion liters; followed by Unioil with 11.03 percent or 1.027 billion liters, Chevron with 8.83 percent

or 821.61 million liters and Seaoil with 8.37 percent or 778.63 million liters.

Coming in next were Phoenix (7.97 percent or 741.41 million liters), Insular Oil (5.92 percent or 550.6 million liters), Total or Filoil (2.87 percent or 266.7 million liters), Jetti (2.82 percent or 262.13 million liters) and PTT (1.57 percent or 146.27 million liters).

At least 20 petroleum companies have participated in the fuel-marking program during the period.

The government earlier said it aims to collect P20 billion this year

following the full implementation of the fuel-marking program. This is equivalent to half of the estimated P40 billion in revenue lost to oil smuggling in the country.

Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law, petroleum products that are refined, manufactured, or imported to the Philippines, such as but not limited to unleaded premium gasoline, kerosene, and diesel, shall be marked by an official marking agent after payment of taxes and duties.

Fuel marking makes use of a

unique chemical marker capable of being embedded at a molecular level in petroleum products—gasoline, diesel and kerosene—thereby enabling authorities to test, identify and distinguish petroleum products with paid excise taxes.

Spearheaded by the Department of Finance, BOC, Bureau of Internal Revenue, the fuel-marking program was officially launched on August 2019 with the intention of putting a halt to illegal importation, manufacturing and other fraudulent activities relating to the use and sale of petroleum products in the country.

Ex-DA chief pushes Congress fertilizer probe L

AWMAKERS were urged by a former Agriculture secretary to pursue their respective investigations into allegations of overprice in the contracts for urea fertilizer under the government’s emergency stimulus program in response to the Covid-19 pandemic.

Federation of Free Farmers President Leonardo Montemayor said the Department of Agriculture must address the complaints raised by farmers that the winning bids were higher than prevailing retail prices.

“One would expect that since it was a centralized bidding, and they were buying in bulk, the winning bids should be lower than prevailing retail prices,” said Montemayor, who led the Department of Agriculture during the Arroyo administration.

“W hat happened here goes against common sense. How will the DA explain to farmers why the retail price is lower when it already includes additional costs?” he wondered aloud.

The DA had set a ceiling price of P1,000 per bag of urea fertilizer for supply contracts across the country worth P5.69 billion under its stimulus program Ahon Lahat, Pagkaing Sapat Kontra Covid-19 (ALPAS sa

Covid-19).

In May, the first contracts worth P1.8 billion were bid out, and suppliers La Filipina Uy Gongco Corp. and Atlas Fertilizer bagged the supply for Central Luzon, Calabarzon, Western Visayas and Central Visayas.

Amid the farmer’s complaints that the initial winning bids were higher by as much as P150 per bag, the DA pushed through with the bidding for succeeding supply contracts worth P1.3 billion.

As with the first centralized bidding process, only one bidder was qualified per lot last month—Goldman’s Supply Corp. for North Cotabato; First Planters Agri-Solution for La Union, Ilocos Sur and Pangasinan; and Universal Harvester Inc. for Cagayan, Isabela, Nueva Vizcaya, and Quirino.

DA officials earlier stressed they had followed the procurement law to the letter, and pointed out that DA’s purchase caused retail prices of the farm input to go down.

However, Montemayor said in a statement sent to media on Sunday, “A lot of questions remain unanswered. These congressional investigations must push through because these are in response to

legitimate issues raised by farmers on the ground who will be most affected by these issues. It is the duty of the House of Representatives and the Senate to act on this.”

Montemayor cautioned Agriculture Secretary William Dar against relying solely on the price monitoring reports submitted by the Fertilizer and Pesticide Authority (FPA) and the Philippine Statistics Authority (PSA).

Dar had said the winning bids were not grossly disadvantageous to the government since they were all lower than average price of urea from P1,043 to P1,062 per bag in March to May. Dar explained that they were able to procure over 1.8 million bags of fertilizer at a cheaper price compared to national average retail prices and below their set approved budget for the contract (ABC).

The DA had set a P1,000 per bag ABC for the procurement of 5.691 million 50-kilogram bags of urea, while the winning bids ranged from P900 to P990 per bag.

The DA explained that both the ABC and the winning bids were lower than the prevailing national average retail price of urea fertilizer at the time of procurement.

Citing data from the FPA, the DA said urea fertilizer cost P1,035.60 for April 27 to May 1; P1,037.53 for May 4 to 8; and P1,040.68 for May 11 to 15.

Data show otherwise–Sinag

GROUPS like the Samahang Industriya ng Agrikultura (Sinag) claimed, however, that the DA’s fertilizer procurement is overpriced as prevailing retail price of urea fertilizer in the market today is only about P850 to P880 per bag, which is P50 to P140 lower than the winning bids.

Agriculture Undersecretar y Waldo R. Carpio said earlier in an interview that DA is guided by the data from FPA and PSA in setting the ABC for the procurement, hence, they will not change the ABC for the bidding of the remaining lots.

Dar argued that the retail prices of urea fertilizer declined after the DA undertook the procurement, which is the goal of the centralizing bidding.

“We started the bidding in April and that is the time that retail prices also started to go down. That’s the outcome of the process, retail prices declined,” he said.

Montemayor said, however, that

besides the FPA and the PSA, “the department should also check on the ground using its own people at the regional offices, agri stakeholders, and distributors, among others.”

‘Punish nondelivery’

MONTEMAYOR likewise urged the DA to crack the whip on winning bidders who fail to deliver their supply, saying this will have an impact on food security and rice production.

“Farmers are racing against time because of the cropping season. By now until August, they should have already planted so they can maximize production. Otherwise, farmers will be forced to plant without any fertilizer, and this will impact on the volume they will produce,” he said.

The chairman of Sinag, Rosendo So, earlier said that La Filipina Uy Gongco failed to deliver its obligation of 911,073 bags of urea fertilizer in Central Luzon by the end of June.

As of June 30, the supplier was only able to deliver about 110,000 bags of fertilizer, or about 12 percent of its total obligation, according to So.

Lawmakers cite urgency of Bayanihan 2’s passage Continued from A1

The House of Representatives is expected to adopt the Senate version.

However, Majority Leader and Leyte Rep. Martin Romualdez said on Sunday the House has not yet received the formal request of President Duterte for Congress to hold a special session.

“We are still awaiting the official communication from the Palace. The House leadership under Speaker Alan Peter Cayetano is committed to approve the Bayanihan to Recover as One bill or the Bayanihan 2 to help President Rodrigo Duterte kickstart our economy and strengthen government’s fight against the spread of Covid-19,” said Romualdez.

The House and the Senate adjourned sine die last month without passing a consolidated version of Bayanihan 2, hence the need for a special session to be able to approve an enrolled bill before the reopening

of the Congress on July 27.

Bayanihan 2 grants the Executive branch necessary powers to manage a second wave of widespread Covid-19 infections, should it come. It also contains provisions on economic packages that would aid economic activities hardest hit by the pandemic.

Senate Majority Leader Miguel Zubiri, summing up the funding bill, gave a breakdown of the Bayanihan 2 as of June 4, showing how the Senate version trimmed the allocation to P140 billion: Emergency subsidies—from P18 billion cut to P15 billion; prevention and control of other diseases—P12 billion to P10 billion; capital infusion to government financial institutions—P50 billion; support programs for impacted sectors—P21 billion to P17 billion; support to agriculture sector—P21 billion to P17 billion; assistance to transportation—P21 billion to P17

billion; assistance to tourism—P10 billion; Smart campuses—P3 billion; and Tesda training—P1 billion.

“It is a bit different from Bayanihan 1,” Angara said in Sunday’s radio interview, noting that “only a few ECQ [enhanced community quarantine areas] can receive livelihood assistance, like Cebu.”

Angara said the funding bill will also continue to “help jobless returning overseas Filipino workers [OFWs] and health workers.”

Funding hike sought

IN the House, the deputy speaker for Finance has asked the Palace to increase its funding for the proposed economic stimulus package.

Deputy Speaker Luis Raymund Villafuerte said the House leaders have engaged senators and Executive Department officials in continuous discussions on the proposed provisions of Bayanihan 2.

Although state economic managers have said that Malacañang could only afford a P140-billion stimulus package, Villafuerte expressed the hope that Palace officials would exert greater effort to raise more resources to enable the government to spend more on stimulating the economy after the four-month pause in economic activity due to Covid-19.

Villafuerte thinks the proposed stimulus package needs to be raised to an initial P200 billion to clear the way to a strong and quick economic recovery.

With revenue collections down in the year’s first five months as a result of the economic standstill, economic managers have said the government could only afford to set aside P140 billion for a new Covid response and stimulus package.

Still, Villafuerte is optimistic that the Executive Department can raise more funds, in light of

last week’s report that revenue collections by the Bureaus of Internal Revenue (BIR) and of Customs (BOC) started to pick up this June, with their combined take totaling P270.77 billion. This is P211.5 billion or 28 percent higher than what both agencies collected in the same month last year.

Meanwhile, the House leadership guaranteed the immediate passage of Bayanihan 2, in order to continue giving special powers to President Duterte to best deal with the coronavirus disease 2019 (Covid-19) pandemic.

Pending the special session, Lone San Jose del Monte City, Bulacan Rep. Florida P. Robes said passage of the second Bayanihan bill should be a priority once sessions resume for the Second Regular Session on July 27.

“We have done it before and I hope we will do it again. We should strive to set aside our political differences for the good of our countrymen who are now suffering because of this pandemic. There should be no delay once session resumes on July 27, 2020,” Robes said.

The House Committee of the Whole approved HB 6953 last June 4. It went pass the period of debate and sponsorship. Once session resumes, it is expected to go into a period of amendments before it is submitted for approval on second reading.

DFA closes 2 consular offices for disinfection

T

HE Department of Foreign Affairs (DFA) said the Office of Consular Affairs located in Aseana in Parañaque City, and its Consular Office in NCR South (Metro Alabang Town Center) will be closed on Monday, July 6, 2020.

The DFA said the consular offices have been hit by Covid-19, “so it’s disinfection time.”

“We need to keep our clients and our personnel safe. We hope to resume operations soon. Our other consular offices remain open,” said Foreign Affairs Secretary Teodoro Locsin Jr. on Twitter.

The DFA statement said the consular office premises would be disinfected and other preventive measures implemented “to manage and prevent risks against Covid-19.”

Applicants who have prior appointments and schedules will be accommodated as soon as these offices resume operations, the DFA added.

Those planning to collect their passports from July 6 onwards are requested to wait for the announcement on the reopening of DFA Aseana and the Consular Office in Alabang.

To keep up to date on the latest news and advisories, the public may visit the consular web site at http://consular. dfa.gov.ph, the official DFA Facebook page at Department of Foreign Affairs, Republic of the Philippines, or the official DFA Twitter at https://twitter.com/ DFAPHL. Recto L. Mercene

BIZ LEADERS SEEK FULL OPERATION IN KEY AREAS Continued from A1

“It’s time to open up,” Hinchliffe said. “It’s time to ramp up BBB [Build, Build, Build] and other infrastructure projects so the construction industry should be 100 percent back.”

“And to fill [in] the supply chain, manufacturing needs to be allowed to perform as needed,” he added in his text message to the BusinessMirror.

The country’s factory output in April crashed to its lowest in close to two decades, according to data from the Philippine Statistics Authority (PSA). For that month, the entire Luzon was placed under lockdown; hence, much of economic activity in the island was suspended.

PSA data reported the volume of production index in April fell 59.8 percent, while the value of production plunged 61.4 percent—both the largest contractions since 2001.

For Makati Business Club Executive Director Coco Alcuaz, permitting public transport units to ply the roads again is the first step toward the full resumption of work. At present, only point-to-point buses, modern jeeps and a few UV Express units are allowed at limited carrying capacity to service commuters in Metro Manila and nearby provinces.

“Speeding that up should be a priority because other recovery measures depend on workers being able to get to work and people being able to go places, especially for activities they can’t do electronically,” Alcuaz said.

Philippine Exporters Confederation Inc. President Sergio R. Ortiz-Luis Jr. lamented the lack of public transport units has prevented manufacturers to operate even at 50 percent capacity. He said export firms are ready to return to their normal state, only for reopening to be thwarted by the unavailability of commuting means.

“They [state officials] have to see to it that priority should be getting people back to work. They have to provide the means for people to be able to travel. They try to impose a lot of rules, but do they contribute to the reopening of economy?” Ortiz-Luis asked.

Last week, Trade Secretary Ramon M. Lopez said state agencies are evaluating the proposal of hotels and restaurants to increase operational capacity in general community quarantine areas. The government is leaning toward approving the request as long as business establishments comply with health protocols in place, he disclosed.

According to Lopez, allowing firms to improve operational capacity would result in the return to work for millions of jobless Filipinos. Based on the PSA’s April Labor Force Survey, unemployment rate in the Philippines swelled to 17.7 percent, from 5.1 percent during the same period last year. This translated to at least 7.25 million unemployed Filipinos, most of whom lost their jobs during the lockdown.

Whether the country is fit to further reopen the economy from a public health perspective is a different question, however, with local Covid-19 cases close to breaching the 42,000 mark as of Saturday.

Agriculture/Commodities BusinessMirror

A4 Monday, July 6, 2020 • Editor: Jennifer A. Ng

www.businessmirror.com.ph

Group: Govt vows to look into undervaluation of rice imports

By Jasper Emmanuel Y. Arcalas @jearcalas

& Bernadette D. Nicolas @BNicolasBM

T

HE Federation of Free Farmers (FFF) said the Bureau of Customs (BOC) will form a ”small” group that would address the alleged undervaluation of rice imports to boost government’s tariff revenues and help farmers.

FFF National Manager Raul Q. Montemayor said his group recently met with BOC officials together with representatives from the Department of Agriculture, National Food Authority and Department of Finance to discuss the possible undervaluation of rice shipments.

During the meeting, Montemay-

or said they raised various issues concerning the BOC’s import assessment system that unscrupulous traders may have taken advantage of to undervalue imports and to avoid paying more tariffs.

Among the issues raised by FFF during the Friday meeting was the free on board (FOB) prices of rice shipments, freight and insurance costs, tariff line classifications as well as lower tariffs slapped nonAsean countries, he added.

“We want to help the [BOC] to generate more revenues for u rgent concer ns. [A l so,] t he excess tariff collections would [go to] the rice competitiveness enhancement fund, which will provide the DA and the farmers additional support,” Montemay-

or told the BusinessMirror on Sunday.

Based on its study, the FFF found that since the enactment of the rice trade liberalization law in March 2019, certain rice imports from China, India and Pakistan, were slapped with incorrect tariff.

The FFF study showed that some 2,625 metric tons (MT) of rice from China entered the country from March to April at zero tariff. The group said rice imports from China should be slapped with a 50-percent tariff based on existing laws.

Montemayor said his group also proposed to the BOC to fix the tariff classifications of rice imports entering the country as some importers declare their shipments under tariff lines that have low reference

NIA breaks ground for Balbalungao Earthfill Dam amid Covid-19 pandemic

T

HE National Irrigation Administration (NIA) has recently held a groundbreaking and capsule laying ceremony for an earthfill dam, expected to be completed in 2023.

“This is the first groundbreaking ceremony after the government declared lockdown due to Covid-19,” NIA Administrator Ricardo R. Visaya said in his message when he led the groundbreaking and capsule laying ceremony for the P832.97-million Balbalungao Earthfill Dam on July 2 in Lupao, Nueva Ecija.

Visaya expressed optimism that the Balbalungao Small Reservoir Irrigation Project (BSRIP), which will provide quality irrigation system, will be completed in November 2023. “In our modest way, it is always our mission to improve the well-being of the farmers.”

Cabinet Secretary Karlo Alexei B. Nograles, who served as the event’s guest of honor and speaker, delivered his speech through a prerecorded video. Nograles said he finds the event “historic” for being the first groundbreaking of NIA while the country is in quarantine.

With this project, he said he wishes the pursuit of higher agricultural productivity, and higher yield and income for the farmers. “Ang buong Nueva Ecija na siya namang Rice Granary of the Philippines ang makikinabang dito sa proyektong ito.”

As the Chairman of Task Force on Zero Hunger, Nograles said he is pursuing the Enhanced Partnership Against Poverty and Hunger (EPAPH) program wherein the connection of the Irrigators Associations (IAs) to the government’s feeding programs are being established. The products of the IAs are aimed to feed the government beneficiaries.

CONTRIBUTED PHOTO

He said he hopes that more IAs in Central Luzon will take part in EPAPH program since the IAs also play a major role in the rice self sufficiency and food security target in our country.

“Ang irigasyon ay nasa puso ng agrikultura,” he said as he acknowledged the importance of NIA’s mandate in the New Normal situation to ensure irrigation in the continuity of farming.

According to him, NIA has to ensure that irrigation facilities would be prioritized by our government— priority for food security to finally bid goodbye to poverty and hunger. “Today’s groundbreaking while in quarantine is our declaration that our work continues, and that it continues with greater sear to overcome and prove that Covid-19 did not get the better of us.”

The BSRIP has an overall project cost of P1.34 billion with a service area of 840 hectares. The project will utilize the water resources from Balbalungao River through the construction of a 27-meter high embankment dam, canal network and appurtenantstructures,andtherehabilitatedexistingdiversiondam of the San Isidro Communal Irrigation System, envisioned to eventually function as a regulator dam.

Recovery hinges on stimulus funds—think tank continued from a1

New twist in Wirecard mess: fake BI record continued from a8

FMIC-UA&P Capital Market Research also said this has led to faster movements in the supply chains as well as the restoration of transportation facilities.

All these are happening while the number of Covid-19 related deaths has been decreasing. Based on data as of July 3, around 1,280 died of Covid-19.

However, there were 11,073 Filipinos who recovered from the disease, 400 more than July 2. There are a total of 27,983 active cases nationwide.

“If our projections hold, we would have close to normalization by Q4 [fourth quarter]. With the US Centers for Disease Control and Prevention [CDC] announcing the availability of a vaccine by the end of the year, and some medication proving effective, 2021 may usher in a much brighter scenario,” the think tank said.

Earlier, the local think tank believed full-year GDP will contract 0.2 percent this year, consistent with government expectation of a contraction of 3.4 percent to 0.2 percent this year.

It was optimistic as the government for 2021 since it also expects GDP to rebound to a growth of 8 percent to 9 percent next year.

The think tank also expects economic growth to decline further in the second quarter. Economists and even the National Economic and Development Authority (Neda) have already said GDP growth will dive deeper in the April-toJune period.

The decline in the GDP growth in the second quarter will be due to weak domestic demand, which has been the primary driver of the Philippine economy.

Guevarra said he instructed the NBI to coordinate with the Anti-Money Laundering Council (AMLC) despite an earlier pronouncement by the Bangko Sentral ng Pilipinas (BSP) that the missing money of Wirecard did not enter the Philippines.

Two of the country’s biggest banks—BDO Unibank Inc. (BDO) and Bank of the Philippine Islands (BPI)—were being linked to the scandal.

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

Both banks have denied Wirecard was their client.

Lawyer Mark Tolentino, former assistant secretary for the Department of Transportation who was sacked by President Duterte in 2018, is also being linked to the scandal.

His law firm, M.K. Tolentino Law & Business Consultancy Office admitted opening and maintaining foreign currency deposit accounts with BDO and BPI, but did not name their clients citing absolute confidentiality required by the Foreign Currency Deposit Act. Tolentino’s camp denied knowing or participating “in any alleged irregularity” involving Wirecard’s money. Joel R. San Juan

prices. This, he said, could be one way for unscrupulous traders to undervalue imports.

He said rice imports are being declared under the tariff heading of 100640, or broken rice, when in fact the grades of the shipments should be classified under 100630, or whole rice.

“They said they will scrutinize it and will create a small group to focus on it. They seem to be serious about it,” he said.

During the meeting, Montemayor said a finance official agreed with the findings of FFF that there could have been possible undervaluation of rice imports since the RTL law was enacted.

Since the implementation of RTL law last March 2019, the FFF has

raised the issue of undervaluation of rice imports, which deprives the government of additional revenue that could have been allocated to the RCEF. In its latest computation, FFF said the government lost at least P890 million in tariff revenues from over 766,000 MT of rice imported from January to April. The FFF said it estimated that undervaluation in rice imports last year resulted in a tariff shortfall of P1.9 billion.

Sought for comment, Customs A ssistant Commissioner and Spokesman Vincent Philip Maronilla said it is still “too early to jump to any conclusions, especially on the amount of potential additional revenues” that could be raised from resolving the undervaluation of

rice imports raised by the farmers’ group.

“They explained their data and we committed to work with them to validate these data and impose corrective measures if needed,” Maronilla said in a message to the BusinessMirror.

“After the validation of data, subsequent meetings will be set to discuss ways to move forward.”

Maronilla also said the BOC invited the FFF to join their pool of Industry Commodity Experts.

“The BOC under the leadership of Commissioner Rey Leonardo Guerrero has always been open to private- public partnership with our local agricultural industry in the resolution of any issues they may have relating to agricultural product imports,” he said.

‘Model farms aim to raise Caraga corn output’

By Manuel T. Cayon

@awimailbox Mindanao Bureau Chief

D

AVAO CITY—Model corn farms would be established in Caraga region in northeastern Mindanao to expand grains production and boost food supply during the pandemic.

The farms would be set up in Barangay Mandamo in Butuan City, and in the municipalities of Bunawan in Agusan del Sur and San Miguel in Surigao del Sur, the regional Department of Agriculture (DA) said.

The DA said it would give free seeds, fertilizer, soil ameliorants, and biological control agents as well as technical and

marketing support to the three farmcluster cooperators.

Regional Director Abel James I. Monteagudo and Regional Corn Program Coordinator Melody Guimary recently turned over the farm inputs to Mandamo Integrated Farmers Association (MIFA) of Butuan City and Bunawan Agusan del Sur Corn Farmers Association. They were both held at the DA Compound in Taguibo, Butuan City.

Butuan City Agriculture Office chief, Engr. Pierre Anthony Joven, witnessed the turnover.

The DA said corn model farms would demonstrate appropriate technology to increase yield, reduce production cost

through farm mechanization, and produce quality yellow and white corn grains.

The agency said farmer-cluster cooperators have committed 50 hectares of land for the model farm involving around 150 farmers.

“To help our farmers continue their noble role as a food producer, DA will support them through the provision of seeds and other inputs to make them productive despite the pandemic,” Monteagudo said.

Nazario Baslote, chairman of MIFA said the project would help them avail of free seeds and other inputs that could cut their production cost.

“Despite the pandemic, we can produce food continuously,” he said.

Palace says up to SC to decide anti-terror law’s fate amid suits continued from a8

Assurances

THE country’s top two defense and security officials welcomed the signing into law of the anti-terrorism bill while assuring it would not be used to curtail basic rights and freedom.

At the same time, Defense Secretary Delfin Lorenzana and National Security Adviser Hermogenes Esperon Jr. urged Filipinos to give Republic Act 11479 or the Anti-Terrorism Act of 2020 a chance, saying the country needs it in dealing with terrorism.

“It is a much-needed measure to clothe law enforcement agencies with the necessary power to contain and eradicate terrorists who don’t play

by any rules and who hide behind our laws to pursue their evil deeds,” Lorenzana said in a statement released by the Department of National Defense on Sunday.

“We assure the public that we will strictly implement this law according to its intent and spirit. We will ensure that it is not abused,” he added.

Lorenzana appealed to the public to give the law a chance and not be “swayed by misinformation and disinformation.”

On the other hand, Esperon encouraged critics of the law to read it thoroughly, adding those who are against it, especially those who claim that it will violate basic rights and freedom, are those who have not read it.

“They deliberately claim it because they have not read the anti-terrorism bill,” the national security adviser said.

“Dissent, advocacies, mass actions and other similar activities in exercise of civil and political rights are not included. It is there in the antiterrorism law,” Esperon said.

Esperon, a former chief of staff of the Armed Forces of the Philippines, said they would welcome any move to challenge it before the court, still as part of the processes in the country.

“That’s their right. They can go to the Supreme Court. They could also demonstrate, that is part of the freedom of expression, but it should be peaceful, we would even protect them,” he said.

Nearly 70K OFWs back home, says DFA. . . continued from a8 Locsin said, “We are aware that the Covid 19 pandemic and the resulting restrictions worldwide have caused thousands of seafarers to be stranded at sea and they have to extend their service on board ships, after many months at sea, enabled to be replaced after long hours of duty.”

He said, “with this guidelines we are answering the call of the International Maritime Organization [IMO], and the maritime industry, to put in place a framework for ensuring safe ship crew changes and travel during the Covid-19 pandemic and we are doing more.”

Locsin said the country agrees with the IMO “that the current situation is unsustainable for the safety and wellbeing of the ship crew and the safe op-

eration of maritime trade, and we need to address the situation of the world’s seafarers.”

He noted that without the mariners, “there would be no shipping,” and people to “ensure the maintenance of global supply chains.”

Locsin noted the Philippines is “a maritime nation, the most important country of origin in the world for all shipping crews of all ranks, and our Filipino sailors play a key role in merchant shipping worldwide.”

He said the economic impact of the Philippine maritime industry, comprising, among others, the crewing and manning industry and the training of seafarers, is huge and hard to measure.

“Remittances of seafarers alone con-

tribute billions of dollars to the national economy,” Locsin said, adding that the European Union has a marked “preference for Filipino mariners and pays them top euro.”

From January to April, Filipino seafarers sent home $2.14 billion, up 10.7 percent from $1.93 billion in the same four-month period in 2018, according to the party-list group ACTS-OFW. Seafarer remittances totaled $6.14 billion in the whole of 2018, up 4.5 percent from $5.87 billion in 2017.

Around 280,000 students graduate from maritime schools every year. In 1996, it was estimated that there were more than 250,000 Filipino seafarers; in 2013, that number was estimated to have increased to about 460,000.

Travel agencies harassed over refund demands. . .

In a separate interview with the BusinessMirror, Tourism Congress of the Philippines President Jose C. Clemente III said he was also surprised by the IATF announcement. “That day of their meeting, DOT officials called me asking if I wanted travel agencies to reopen. Apparently, someone in the meeting heard a radio commentator citing ‘a large travel agency’ which wanted to reopen so they could already process refunds of clients.

“But I told them [DOT officials], our position has not changed. If

travel agencies want to reopen, it should be done so voluntarily. Becauseevenifwewantedtoprocesstherefundsofourcustomers,where would we get the money? We’re also waiting for refunds from airlines, for instance.” Clemente is also president of Rajah Tours Philippines.

In a position paper sent to Tourism Secretary Bernadette Romulo Puyat on May 11, 2020, on the possible reopening of travel agencies and tour operators, Clemente said, on behalf of the TCP, “there is a majority sentiment that these establish-

ments prefer to remain closed even if the NCR [National Capital Region] is downgraded to GCQ.” He noted there were a few establishments “who have expressed the willingness to voluntarily resume partial operations due to the nature of their clients such as those travel agencies that service the marine manning sector and some with corporate clients in the essential sectors.”

TCP also recommended that those who want to “voluntarily” resume operations should be allowed to do so, but should no longer be

continued from a8

able to enjoy any grace period or wage subsidies accorded to shuttered companies. The PTAA, for its part, said, “Travel agents are also small businessownersaffectedbythepandemic.Despitebeingallowedto operate, the fact remains that international and nonessential travel remains prohibited. Travel agents still cannot generate income to sustainevenminimalskeletaloperationswithouttraveldemandand withzerorevenues.”Itappealedtothepublic to,“Pleaseunderstand why we choose to have our offices remain closed.”

A6

Monday, July 6, 2020 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

The experts look to the future

A

S the pandemic continues to cut a path of economic and health destruction around the world, the reactions of some people are nothing less than astonishing. There are those in the Philippines that seem to take great delight in pointing out the failures of coping with the disease in the United States.

This is like laughing at your next-door neighbor’s house on fire while foolishly giving little or no thought about the fact that yours also will soon be burning. The annihilation of global trade and international tourism is going to affect every nation on the planet.

The economic output of the US in 2019 was $21 trillion, followed by the European Union at $19 trillion. China was at a distant third at $15 trillion. When you compare GDP per capita even considering Purchasing Power, China is ranked number 78, below Thailand, Argentina, and just above Libya. The US by far has the single largest consumer market of any country, representing over 26 percent of the entire global consumer market.

The mouse may be happy to see the elephant fall down but is unlikely to avoid being crushed.

Global trade is the best indicator of the world’s economic activity, and a good way to measure it is the cost of transporting raw materials and goods from one place to another. The Baltic Dry Index (BDIY) is a composite index for the cost of dry bulk shipping as well as a general shipping market bellwether. An eight-year low price was hit at around $500 at the beginning of February as the virus was spreading. It is now up 73 percent year-to-date at about $1,900. That is at least a short term positive. But is it sustainable?

If you want a reasonably unbiased forecast, the best person—or entity—to ask is someone who has a great deal of financial skin in the game. If they are not trying to protect their own interests—or want to sell you something—these people can be helpful. But the analysis must be both broad enough to take into account many factors and specific enough to be useful.

The World Economic Forum in May surveyed 347 global senior risk analysts whose only job is to protect their public and private organization from bad things happening. It was an “Eighteen-Month View of a Post-Covid World.”

Perhaps obviously the greatest concern is a “Prolonged Global Economic Recession.” The least concern was the “Exacerbation of LongStanding Military Conflicts.” But those extremes also had to do with the likelihood of either event happening. A long economic slowdown was given a high 69 percent probability. An increase in “war” was rated at only 2.3 percent.

Interesting also was that since the end of 2019, there has been a surge in cyber-attacks on companies and governments, which became the top technological concern moving forward for 38 percent of those surveyed.

When you move past broad economic issues like recession, bankruptcy, and high unemployment, with a 48 percent probability is “More Restrictive International Travel/Trade Movement.” Then it must be asked, are travel, tourism, hospitality and entertainment fundamentally altered in nature and delivery?

These results are not earth-shattering as all of them are common sense worries. However, considering that this was a geographic and industry balanced survey, it does substantiate the fact that we are all in the same boat. Is the future going to be “every man for himself”? Or are nations going to work together?

Since 2005

BusinessMirror A broader look at today’s business

Simple living and the degrowth movement Atty. Jose Ferdinand M. Rojas II

RISING SUN

I

N our world we see plenty of choices and options—be it food, entertainment, stuff, and even ideas. The production and consumption cycle produces so much waste that in many first world countries, people usually throw out stuff that are still working. But this apparent wealth is seen as growth, something positive and beneficial.

Many thinkers and economists have already warned us that there is a limit to this growth. In Small Is Beautiful, the classic written by E. F. Schumacher in 1973, he said that the kind of economic development that we have now, which is based on consumption, is “absurd as a goal of economic activity and development.”

He recommended what he termed as “Buddhist economics,” which is the maximization of wellbeing and the minimization of consumption.

A study that was done by MIT researchers in the early 1970s be-

Thomas M. Orbos

STREET TALK

Founder

Editor in Chief Associate Editor News Editor Senior Editors

Online Editor Creative Director Chief Photographer Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager

T. Anthony C. Cabangon Lourdes M. Fernandez Jennifer A. Ng Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Dennis D. Estopace Angel R. Calso Ruben M. Cruz Jr. Eduardo A. Davad Nonilon G. Reyes Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–Sun Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

reduce global consumption and production and advocates a socially just and ecologically sustainable society with well-being as the indicator of prosperity, instead of GDP. Some of the important aspects of degrowth are the following: autonomy, care work, self-organization, commons, community, localism, work sharing, happiness and conviviality.

As an example, time, one of the dimensions of degrowth, presents questions about the concept of work, division of labor, and the way people spend their free time. The degrowth movement calls for the sharing of work (both paid and unpaid work), early retirement, part-time work, accessible childcare for workers, longer holidays, etc. There should be limits to paid working hours and there must also be a progressive in-

When the pandemic is gone II

✝ Ambassador Antonio L. Cabangon Chua Publisher

came the first significant research about the consequences of economic growth. This 1972 report, The Limits to Growth, stated that economic growth is a key reason for the increase in global environmental problems like pollution, shortage of raw materials, and the destruction of the planet’s ecosystems.

It is one of the supporting texts of the degrowth movement, which works around the idea that “people should live simply so others, human and non-human, may simply live.”

Degrowth emphasizes the need to

Degrowth emphasizes the need to reduce global consumption and production and advocates a socially just and ecologically sustainable society with well-being as the indicator of prosperity, instead of GDP.

I

N our column last week, we provided a probable picture of how life will be in the post pandemic world, particularly in Metro Manila. As we have mentioned, the picture will be a toss-up between the urban planner’s dream city of wide greenery with human-friendly infrastructure and the stark reality of seldom used or boarded up establishments. But life will go on and we in Metro Manila will find ways and means to cope up and survive.

First to adapt will be our homes, which will become the center of most human activity, be it social or commercial. Any future consideration for progress will keep this in mind and will be eschewed toward such lines. Next will be the re-focus on the community as the first cautious steps outside the residence will be the need to secure the basic needs that are immediately accessible. Hence, the revival of community commerce and activity. The corner stores, barbershops, and outdoor markets will provide us not just with what we need materially, but will also allow the breath of human interaction we also need as we remain socially limited to our immediate locality. We will also see a marked change in how we move from one point to the other. Intercommunity, more so inter-city travel and beyond will become restrictive.

The need for social distancing will dictate what commuters will utilize.

In its old form, public transport will barely survive. Jeepneys, UV vans, buses and even rail commuting will have to adjust drastically for them to see it through.

In this week’s continuation of the article, we will discuss how infrastructure will change to best adapt to this pandemic and give us a better chance of preserving the quality of life that we want for ourselves and for our children.

Just like transport, infrastructure will now highlight safe passage as its primary feature. The need for social distancing will still be there. Moreover, efficient delivery of goods and services to the homes and communities rather than the huge and concentrated “CBDs”—central business districts that represent our economic

Just like transport, infrastructure will now highlight safe passage as its primary feature. The need for social distancing will still be there. Moreover, efficient delivery of goods and services to the homes and communities rather than the huge and concentrated “CBDs”—central business districts that represent our economic development before—will dictate infrastructure re-focus.

development before—will dictate infrastructure re-focus. The government as well as private real-estate developers will re-configure their designs. There will be more open spaces, pedestrian walkways, bike lanes and green parks. Local community centers will also see growth, as people will stay close to their homes. Hence, community or barangay government centers will be converted into onestop service centers where one can do all the basic government transactions. The big enclosed malls will have a difficult time wooing back the crowds they used to have. However, malls can do a pivot as we are beginning to see in other countries where malls are being reconfigured for a mixed-use development to include a component for residential use. Hence, shopping malls such as the huge ones we have here can become “residential communities.”

On a bigger scale, mega government infrastructure projects will

come tax to reduce inequality. Finally, there must be concrete evidence from research to define work and its aim, as well as the contribution of unpaid household or community work to the economy.

This is just an example of the range of action based on one particular degrowth dimension (time) to illustrate how the theory operates and works on a practical level. The other dimensions include availability of resources, hard infrastructure, finances, institutions and socioeconomic organization, social comparison, material needs, and consumer imaginary.

Societies must learn how to live within their ecological means, open and localize their economies, and distribute resources equally and democratically. Focus will shift from material wealth, consumerism, and consumption toward sufficiency, frugality, and everyone’s happiness.

Under the degrowth movement, production and consumption are scaled down to increase the wellbeing of people and to protect the Earth. It’s a pretty simple idea that seems very appropriate at this time in our history.

also need to be re-visited to see if such are adherent to ensuring safety —under its present pandemic interpretation. Any government project that will bring about mass gathering in any instance, be it temporary or semi-permanent, will have to be reviewed and reconfigured. In doing so, designs of government buildings, rails and roads will have this as their primordial consideration, and they will be more functional.

One final characteristic of any infrastructure pivot would be its adaptability to another “Covid” situation.

Therefore, roads, rails and terminals will have the readily accessible “pushbutton” to suspend operations and commence lockdowns while ensuring a more efficient flow of services such as food, medical and security.

As mentioned last week, cities will survive this pandemic but they will need to adjust and adapt. We saw these happen in the cities of Europe after the plague in the middle ages, as well as in other countries that pivoted after the influenza pandemic in the early part of the last century. Metro Manila and other metropolis are no different. There will be changes in our city life and infrastructure that will be a testament to our ability to adapt in our desire to survive.

Thomas “Tim” Orbos was formerly with the DOTr and the MMDA. He is an alumnus of the McCourt School of Public Policy of Georgetown University and the MIT Sloan School of Management.

He can be reached via e-mail at thomas_orbos@ sloan.mit.edu

Opinion BusinessMirror

www.businessmirror.com.ph

Who’s winning the pandemic tax war?

Joel L. Tan-Torres

DEBIT CREDIT

N

ot all is well in the ongoing Covid-19 pandemic war, including that of the tax collection front.

Preliminary data recently released by the Department of Finance (DOF) disclosed that the collections of the Bureau of Internal Revenue (BIR) and Bureau of Customs amounted to a combined total of P1.155 trillion for the first half of 2020. Compared to the P1.375 trillion collected in the first half of 2019, the tax collections are P0.220 trillion or 16 percent lower.

The collections are also P0.032 trillion or 2.76 percent below the revised target of P1.187 trillion for the January to June period of this year. It is to be noted that in April 2020, due to the impact of the Covid-19 pandemic, the Development Budget Coordination Committee in April 2020 reduced the 2020 annual tax-collection target of the two agencies to P2.997 trillion from P3.332 trillion, a reduction of about 10 percent. Definitely, the two principal tax collecting agencies are not faring too well meeting their targets for tax collections, which primarily provide the funding source for government.

The BIR, which accounts for the bulk of the government’s tax collections, reported P901.96 billion of collections in 2020’s first half. This collection period includes the months when strict quarantine measures were imposed to contain the spread of the Covid-19 pandemic that led to a virtual economic standstill in the country.

As a result, the BIR’s January to June 2020 collection is P170.5 billion or 15.9 percent lower than the P1.072 trillion it collected during the same period last year. The January to June collections are also P0.031 trillion or 3.38 percent less than the target of P0.933 trillion. Compared to the original goal of P1.335 billion, this deficit is 32 percent of the goal. The BIR’s annual collection targets were reduced to P1.744 trillion in Revenue Memorandum 15-2020, from P2.260 trillion in RMO 12-2020. The original target was P2.576 trillion as prescribed in RMO 2-2020. The current goal is a whopping 32 percent decline from the original tax collection target. Clearly, government is very much adversely affected by the pandemic crisis.

The BIR must continue to exert all efforts to help the Covid-19 pandemic warriors. During the crisis, the BIR should balance the strict enforcement authority with the benevolent taxpayer service orientation in engaging with the taxpayers. I have seen some positive changes in the way the BIR conducts its tax audits of taxpayers. A number of BIR offices now implement the faster approach of conducting high level audit by exception, rather than the extensive and time consuming data crunching investigations enforced before

the pandemic crisis. The mindset being pursued is that taxpayers are encouraged to pay reasonable tax assessments on a timely basis without too much difficulty and problems.

The BIR should also continue to hire more “soldiers” for the Covid-19 war. News accounts disclose that the BIR has thousands of unfilled vacant positions, ranging from openings for clerks to positions for Certified Public Accountants and lawyers. The hiring of more personnel will provide to the BIR offices the warm bodies to support the tax collection efforts.

The BIR should fast-track its digital transformation initiative.

In 2019, the BIR launched its digital transformation program intended to convert the BIR to a more responsive agency by 2030. The need to complete this transformation is very urgent and the timeline for the completion should be moved to an earlier date.

The ongoing efforts to create an investor friendly tax environment should be prioritized. The bill on Corporate Recovery and Tax Incentives for Enterprises is supposed to provide tax reform measures to create the tax conducive environment. Unfortunately, Congress was not able to pass the CREATE when it adjourned last month. This should immediately be passed and signed into law when Congress resumes in a few weeks from now.

All taxpayers should also help in the pandemic war. We, as taxpayers, should report our tax obligations honestly and on a timely basis. It is oftentimes difficult to do these during these pressing times when we are handicapped by financial and health concerns. But we should not forego in complying with our tax obligations that provide the lifeline for our country.

With the various stakeholders doing their share, we will win the Covid-19 pandemic war.

Joel L. Tan-Torres is the Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the chairman of the Professional Regulatory Board of Accountancy and partner of Reyes Tacandong & Co. and the SyCip Gorres and Velayo & Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979.

This column accepts contributions from the business community. Articles not exceeding 600 words can be e-mailed to boa.secretariat.@gmail.com.

Monday, July 6, 2020

US Independence Day: Foundational freedoms for the future

By US Ambassador to the Philippines Sung Kim

O

N this day (July 4), 244 years ago, America gained her independence after a hard-fought campaign to secure life, liberty, and the pursuit of happiness. This year, instead of a typical July 4 celebration—enjoying a barbeque under a sky of blazing fireworks with my family—we celebrate virtually due to the Covid-19 pandemic. Despite our physical separation, the founding principles that unite us as Americans are more important than ever.

The freedoms enshrined in our Bill of Rights—freedom of speech, freedom of the press, and the right to assemble—are valued around the world. Respecting these freedoms unlocks prosperity and enables cooperation between sovereign nations.

I am privileged to have called the Philippines home now for more than three years. Each year, the concurrent celebration of US Independence Day and Philippine-American Friendship Day serves as a poignant reminder of the deep and historical connections that we share. From joint military exercises demonstrating our commitment to regional peace and stability, to unfailing humanitarian assistance and diverse people-to-people ties, over the past year, together, we have further enriched our friendship, partnership and alliance.

Not long after we gained independence, the US Congress approved the first deployment of an American warship to the Pacific, in 1817. More than 200 years later, our commitment to a free and open Indo-Pacific endures. Last year, we welcomed the USS Ronald Reagan Carrier Strike Group, with almost 300 Filipino-American sailors aboard, and the USS Montgomery,

the first US ship visit to Davao in decades. The US Coast Guard Cutter Stratton joined maritime training in Palawan alongside the Philippine Navy and Japan Maritime Self-Defense Force. US and Filipino troops strengthened interoperability, battle readiness, and built personal bonds in the joint Balikatan and KAMANDAG military exercises. KAMANDAG included the first largescale airborne drop since World War II, during which 500 US and Philippine paratroopers participated in a “Friendship Jump” demonstrating solidarity and cooperation. And proudly, over the past year, we commemorated the 75th anniversary of the end of the World War II. At inspiring ceremonies, I met heroic American and Filipino veterans who, together, risked everything for liberty, bonding our two nations as allies for freedom.

Friends help each other in times of need, or as I’ve heard here, the weight becomes lighter when we

Ambassador Kim

I am privileged to have called the Philippines home now for more than three years. Each year, the concurrent celebration of US Independence Day and PhilippineAmerican Friendship Day serves as a poignant reminder of the deep and historical connections that we share. From joint military exercises demonstrating our commitment to regional peace and stability, to unfailing humanitarian assistance and diverse people-to-people ties, over the past year, together, we have further enriched our friendship, partnership and alliance. help each other—“Ang mabigat ay gumagaan, kapag nagtutulungan.” Secretary Michael Pompeo said on Philippine Independence Day, “As we stood together during World War II and in the global fight against terrorism, our nations are partnering again to contain and mitigate Covid-19.” I am proud of the more than P978 million ($19.5

Bloomberg Opinion

A

S a fan of professional basketball and a student of economic game theory, I am becoming increasingly concerned. I fear that the NBA, in particular, may be reflecting a still-hidden trend in the broader economy: People may not actually be so keen to return to work.

The NBA is planning to resume a fragment of its regular season, and then the playoffs, in a custom-tailored “bubble” in Orlando, Florida, on July 30. The games will be played only among the top teams in a single complex, with regular testing and tight regulations governing the entry of outsiders. The league is going to the maximum lengths possible to ensure a safe reopening.

There’s only one problem: An

increasing number of players do not seem very interested in being guinea pigs in this experiment. At first the secessions were a trickle. Now they are picking up steam.

Davis Bertrans, arguably the second-best active player on my home team the Washington Wizards, will not play because he doesn’t want to risk injury and endanger his prospects as a free agent next season.

That’s an entirely reasonable excuse, and more and more players are finding them.

The Brooklyn Nets may be going into the bubble without the services of DeAndre Jordan and possibly Spencer Dinwiddie, one of their most important players. Both tested positive for Covid-19, and again that seems like a reasonable excuse for not playing. But of course — assuming they stay fine — they should

million) in Covid-19 US government aid to the Philippines. Complementing this support are donations of food, technology, and other assistance from US companies, a testament to their deep commitment to flatten the curve. In conversations with US firms, I have been moved by their dedication to assist Filipino employees and impressed by their desire to sustain national economic recovery efforts.

Meanwhile, our people-to-people ties are stronger than ever.

For the third successive year, the number of Filipinos studying in the United States grew, and their accomplishments are outstanding.

Filipina Mary Pauline Fornea not only graduated with honors from the US Naval Academy, she also won a bronze medal in the duathlon mixed relay during the 30th Southeast Asian Games. Submarine officer Lt. Melanie Martins, from Pampanga, became the first ever Filipina-American to earn the US Navy “Dolphins” submarine warfare insignia, signifying her competency to assume command in an emergency. In my hometown of Los Angeles, Historic Filipinotown will soon have a landmark named “Talang Gabay: Our Guiding Star” to honor contributions of FilipinoAmericans to the city.

On this day, as Americans celebrate our nation’s founding, we reaffirm our commitment to support overseas the principles we cherish so deeply at home. Happy US-Philippine Friendship Day, and happy 244th US Independence Day!

Balkanization is bad for Facebook’s business Noah Smith

BLOOMBERG VIEW

T

he Internet, once a freewheeling global network, is becoming balkanized into national spheres of influence. This could be bad for both cross-cultural communication and US tech companies.

China has long protected its local Internet, censoring speech behind what has become known as the Great Firewall. The government blocks US-based services such as Google, Facebook and Twitter, and closely monitors the local Chinese versions. Other authoritarian and quasi-authoritarian countries— Iran, Turkey, Pakistan, Vietnam, and Ethiopia—do the same. And Russia recently passed a so-called sovereign Internet law that makes it much easier for the government to monitor and control online content.

Now democracies may be joining in. India just banned 59 of China’s largest Internet apps, including social video sharing service TikTok, reflecting rising tensions between the two giant Asian countries. It

has also shut off Internet to regions experiencing government crackdowns or unrest, such as Jammu and Kashmir in 2019. In Europe, major rules such as the General Data Protection Regulation are forcing Internet companies to operate differently in different regions.

Though this doesn’t officially ban or censor US-based sites like Facebook, it does present an obstacle that could end up inhibiting the flow of information.

This was probably inevitable.

Different cultures perceive concepts such as privacy differently.

And as US global hegemony gives way to a more multipolar world, countries are going to assert their sovereignty by refusing to play by US rules. Further unrest, like the protests that rocked the world in

2019 or tensions between countries such as China and India, are likely to accelerate the trend towards digital division.

This could be tough on US tech companies. Facebook, Twitter, Instagram and YouTube don’t owe their profitability to superior technology, other than some techniques for managing large amounts of user data. They make money because they have a lot of eyeballs to which they can deliver advertisements.

And they have those eyeballs because of network effects. It’s easy to make a Twitter clone—Gab tried it a while ago, and a new entrant called Parler is trying it now. But it’s incredibly hard to get people to switch, because the first people who make the jump will find themselves mostly alone, with everyone they know and want to read still back on Twitter. Similarly, people use Facebook, Instagram, Snapchat, and other social media services because everyone else does.

Captive advertising targets translate into enormous profits. Facebook, Inc., which dominates the social media landscape, has a profit margin that typically ranges between 20 percent and 40 percent. Its market cap as of early July was about $647 billion, or 2.6 percent of the entire S&P 500.

Regional balkanization, though,

The NBA’s reopening is a warning sign for the US economy

By Tyler Cowen

A7

be safe to play by the start of the resumed season. Or at least as safe as any player can be known to be. The net result may be that the Nets are simply a shell of a team.

Portland Trail Blazer veteran Trevor Ariza is not showing up so he can spend time with his son, as part of a custody arrangement. On the Los Angeles Lakers, one of the favorites to win the championship, starting point guard Avery Bradley will not appear for fear of endangering the health of his son, who has respiratory issues.

These players will still be paid, but they are lowering their future market value by expressing less than a full commitment to the team. And it is hard to imagine that many other workplace environments can be made much safer than the planned NBA bubble.

One has to wonder how many other players are planning to drop out, or perhaps hoping that the decision will be made for them: Maybe they will get an injury during training camp, say, or worsening conditions in Florida will require cancellation of the season, or it will become more socially acceptable not to play. In the meantime, the dominant strategy may simply be to wait and root against the resumption of play.

It is also striking who is not complaining—namely, the marginal teams not invited to join the competition in the first place. They’ve simply written the season off.

The ones who want to play most are the superstars, especially on those teams that might win a title.

That is typically a small number of squads, usually less than half a dozen (the Lakers, Clippers and

Bucks would be three obvious picks this time around). LeBron James in particular wants to win another championship and challenge Michael Jordan as the NBA’s G.O.A.T. A big star who wins a title can probably get more lucrative shoe and endorsement contracts.

You can notice a similar skew toward the winners in other American sports. Minor league baseball recently was cancelled for the year, but the major leagues, which have a much higher profile and a lucrative television contract, are planning to resume in a few weeks.

Now compare the evolution of the NBA bubble with the reopening of US offices and schools. For virtually all American workers, the stakes are much lower than for NBA players. And compared to Orlando, the safety and security precautions will

slices through network effects. If services like Facebook are banned in some countries and heavily restricted in others, users will have less company. Most people’s contacts and friends will tend to be in the same country, but not all. And outright bans will cut some services off entirely from huge markets like China, while restrictions like GDPR will force them to invest in expensive localization.

This is an unfortunate side effect of nationalism and unrest. But it’s also reason to worry about a technology industry whose profitability stems mostly from network effects, not know-how. Actual innovations, like Intel Corporation’s semiconductor manufacturing processes, Amazon.com, Inc.’s cloud computing systems, or Google LLC’s machine learning algorithms give these companies some clout: if a country decides it doesn’t want to buy Intel’s chips, it will suffer a real economic penalty.

But if a country decides to create its own Facebook clone, it will lose little, while Facebook’s American owners and workers will lose a lot.

A free and open global Internet may one day reemerge. In the meantime, US companies and policy makers should think about how to invest in products whose value isn’t so subject to the whims of foreign authorities.

be far less rigorous.

If so many NBA players are pondering non-participation, how keen do you think those workers—none of whom are millionaire professional athletes—are about returning to the office? The biggest difference with the NBA is simply that the players have to make a simple yes-or-no decision fairly soon. In effect, their hands are being forced, and so the revolt is slowly becoming more visible.

In the normal business world, the superstars—in this case, the CEOs and other leaders—are indeed eager to resume and expand operations.

But as with the NBA, the grumblings beneath the surface are real and growing.

How well will business reopenings go? If you wish to track the American economy, professional sports has never been a better place to look.

A8 Monday, July 6, 2020

Nearly 70K OFWs back home, says DFA

By Recto Mercene

T

@rectomercene

HE Department of Foreign Affairs (DFA)facilitated the return of almost 10,000 overseas Filipinos (OFs) last week, bringing the total number of repatriated OFs to 68,440 since it began bringing home Covid-19displaced migrant workers in February 2020.

Of the total number, 51.23 percent (35,059 OFs) are sea-based and 48.77 percent (33,381 OFs) are land-based, with the most recent repatriates arriving from Barbados, the Maldives, Singapore, Sri Lanka and the United States on Friday.

The DFA said it is committed to bring home more Filipinos from the Middle East, having facilitated six flights from Saudi Arabia and seven flights from the UAE which repatriated 1,630 and 2,208 fellow Filipinos, respectively.

The DFA also assisted in the safe return of 887 Filipinos from Kuwait and Oman.

Sea-based OFs from all over the world likewise continue to come home as the DFA welcomed repatriated seafarers from Panama, Costa Rica, Barbados, UK, Germany, Norway, Canada, and Singapore this week.

The plight of the seafarers had posed a big challenge, as dozens of cruise ships were stranded by lockdowns around the world, unable to berth in many territories, forcing

the passengers and the thousands of crew, including Filipinos, to stay onboard for months.

The DFA also mounted a chartered flight using its ATN (Assistance to National) Funds to bring home 183 stranded Filipinos, including three infants, and two cremated remains of OFWs from Phuket, Thailand, on June 29.

Green Lane

ON Thursday, the Philippines opened the first “Green Lane” for seafarers in Asia through the signing of the Philippine Green Lane Joint Circular on July 2.

This will ensure that seafarers are accorded speedy and safe travel, subject to health protocols mandated by the Philippine government, including safe and swift disembarkation and crew c h a nge du r i ng t he Cov id-19 pandemic.

The DFA, together with its Philippine embassies and consulates around the world, said it remains fully committed to bringing home its nationals abroad amid the Covid-19 pandemic.

Foreig n A f fa i rs Sec ret a r y Teodoro L. Locsin Jr. on Thursday led the unveiling of a Philippine Green Lane, describing it as a pioneering effort for providing timely humanitarian relief not only for “Philippine seafarers,” but for other mariners from the region as well.

Continued on A4

Travel agencies harassed over refund demands T

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

RAVEL agencies in the country are being harassed and insulted by customers demanding refunds for their canceled tour packages when travel restrictions were implemented to control the spread of Covid-19.

The harassment followed approval by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF) of Resolution No. 51 on July 2, 2020, allowing “travel agencies under Category IV to resume operations in areas under general community quarantine….

Provided that operations shall be limited at skeleton work force and primarily to do administrative

works [sic] such as the processing of refunds and payments to suppliers.” The policy was based on the recommendation of the Department of Tourism and the Department of Trade and Industry.

In an open letter to the public, the Philippine Travel Agencies Association (PTAA) said, “A lot of our member travel agents have been insulted, harassed, cursed, and

threatened by clients following the announcement [of the IATF].”

The group added, “While the government has allowed travel agents to operate, the problem and the issue remains the same. Travel agents are still waiting for refunds from suppliers such as the airlines, cruise lines, hotels, tour operators, and travel consolidators.”

However, the PTA A underscored, “The IATF announcement did not change or hasten this refund process in any way. Without receiving the amount from our suppliers, we are hindered from returning these to you as well.”

Under the Air Passenger Bill of Rights, passengers have the right “to be reimbursed the full value of the fare” when flights are canceled due to force majeure, safety and/or security reasons. But to this day, many aviation and tourism sector analysts cannot agree on whether Covid-19 travel restrictions can be considered “force majeure.”

Continued on A4

INTERTROPICAL CONVERGENCE ZONE (ITCZ) AFFECTING MINDANAO as of 4:00 am - July 5, 2020

CHEER, HOPE The Philippine Red Cross, headed by Chairman and CEO Sen. Richard Gordon(right) gave financial aid to 204 families in barangays 91 and 234 in Tondo—two of the barangays included in PRC’s list of 1,300 target beneficiaries in Manila. The assistance is part of PRC’s response for those heavily affected by the Covid-19 pandemic. PHOTO COURTESY OF PHILIPPINE RED CROSS

New twist in Wirecard mess: fake BI record

J

USTICE Secretary Menardo Guevarra on Sunday promised a full investigation following the relief of two Bureau of Immigration (BI) officers who allegedly tampered with official records to make it appear that German payments company Wirecard AG’s Chief Operating Officer Jan Marsalek entered the country on June 23 and left a day after.

However, Guevarra said the BI is still determining whether other officers or officials may be involved or have knowledge of the illegal act.

Asked whether there were indications of bribery, Guevarra said the motives would be known once the BI is done with its investigation.

Guevarra expects the BI to submit the result of its investigation within the week.

“Two BI personnel were relieved.

One stationed at MCIA [MactanCebu International Airport], the other at the head office. We’ll find out if other persons were involved, as well as their motives, once the work of the BI fact-finding committee is completed,” the DOJ secretary said.

He added that the two BI personnel who encoded the “fictitious” entries will also face administrative sanctions. “Once the fact-finding report shows culpability, the appropriate sanctions will be imposed,” Guevarra explained.

The fictitious entries were discovered following a thorough check on the CCTV footage, airline manifests, and other records. This, following confusion arising from reports that Marsalek, said to have a Filipino wife, had entered the country, just as an international search focused on him over his role in the scandal. Wirecard AG claimed to have lost €1.9 billion or $2.1 billion due to fraud.

Guevarra said the BI supposed records showing that Marsalek left the country on June 24 was found to be contrived, “as there was no such flight to China as indicated in the database of the [BI].”

Guevarra earlier directed the National Bureau of Investigation (NBI) to investigate certain individuals linked in the scandal following reports that some Wirecard funds had entered the Philippines through two banks.

Continued on A4

Palace says up to SC to decide anti-terror law’s fate amid suits

By Bernadette D. Nicolas @BNicolasBM

& Rene Acosta

@reneacostaBM

M

ALACAÑANG on Sunday said it will leave it to the Supreme Court to decide the fate of the controversial anti-terror law, which faced legal challenges right after its signing last week.

“The Palace will leave it to the SC to decide on these petitions and [we] will abide by whatever the ruling is,” said Presidential Spokesman Harry Roque in a statement.

This comes a day after a group filed electronically a petition, asking the Supreme Court to issue a temporary restraining order and writ of preliminary injunction and/ or other injunctive remedies to stop the implementation of the newly signed law.

In filing the petition, the group led by lawyer Howard Calleja questioned the constitutionality of the provisions of the new law.

The petitioners will also be

filing the hard copies of the petition before the SC on Monday, July 6.

Aside from Calleja’s group, other critics have earlier said they are ready to challenge the measure before the high court and expressed concern over some provisions of the new law, including the broad definition of terrorism and a prolonged detention period for terrorism suspects for as long as 24 days without being charged in court.

Retired Supreme Court Senior Associate Justice Antonio Carpio earlier said he will also be a petitioner, adding that allowing the Anti-Terror Council to order arrests and the prolonged detention of terrorism suspects are unconstitutional.

O n Sat u rd ay, t he Nat ional Union of Peoples’ Law yers (NUPL) announced its decision to defer for now the actual filing of its petition on the anti-terror law, saying it wants to include more petitioners who expressed interest to join, ret wea k its

petition in view of the supervening facts, among others.

Despite widespread opposition of various groups that the measure could be used by the government to silence its critics, President Duterte still signed the anti-terror bill into law on Friday, July 3.

Just if y ing t he President ’s move, Roque earlier said the passage of Republic Act 11479 is a sign of the administration’s serious commitment to stamp out terrorism.

With its passage, the Palace said they expect the public to be further protected from terrorist acts.

Minutes after Friday’s signing of the new law, Human Rights Watch (HRW) Asian Director Phil Robertson also warned it would “push Philippine democracy into an abyss.”

The law “threatens to significantly worsen the human-rights situation in the Philippines, which has nosedived since the catastrophic ‘war on drugs’ began four years ago,” Robertson said.

Continued on A4

www.businessmirror.com.ph

Companies BusinessMirror

Monday, July 6, 2020

B1

SMPC ready for economic impact of pandemic–exec

C

By Lenie Lectura

@llectura

onsunji-led Semirara Mining and Power Corp.

(SMPC) said it would still be able to carry out minimum dividend payout and trim debts amid the prevailing conditions and continuing risks presented by Covid-19.

SMPC Chairman Isidro Consunji said the company remains cashflow positive even if it is not spared from lower market prices and weak demand.

“While this puts some strain on our liquidity, we are fortunate to remain cash flow-positive. Barring

any unforeseen circumstances, I am confident that we can meet our obligations to our shareholders, creditors and other stakeholders.

“Based on our current cashflow, I believe we can meet our minimum dividend obligation to our shareholders next year,” said Consunji during

the company’s virtual stockholders’ meeting.

SMPC proceeded with paying out P5.3 billion in cash dividends to shareholders at the start of the enhanced community quarantine (ECQ). Consunji said the move was beyond the company's cash dividend policy of at least 20 percent of the prior year's audited net income.

“However, it will take some time before we can return to the profit and dividend levels that we are used to, given the prevailing conditions and continuing risks presented by Covid-19,” he added.

The company’s net income at end2019 declined by 20 percent yearon-year to P9.6 billion, from P12.1 billion due to depressed global coal prices and power plant outages. It has yet to report its first quarter financial performance.

The company has decided to re-

schedule its P3.7-billion capital expenditure (capex) from 2020 to 2021.

It would also defer hiring for noncore positions, reduce non-essential business expenses and dispose of noncore assets.

“Implementing these measures will allow us to preserve and generate cash, which we intend to use to meet our stakeholder obligations,” Consunji said.

At the end of the first quarter, the company’s short-term loans stood at P5 billion and P16 billion in longterm debt. “We intend to pare down this year using internally generated cash.”

Should the pandemic and the economy worsen, he said the company could tap unused credit lines.

“Our company is well prepared for the challenges ahead. And while we have additional credit lines, we hope that there will be no need for us to use it.”

‘ABS-CBN franchise hearing nears conclusion’

By Jovee Marie N. Dela Cruz @joveemarie

T

he House Committee on Legislative Franchises said it is targeting to terminate on Monday its deliberations on bills granting ABS-CBN Corp. a fresh legislative franchise.

Palawan Rep. Franz Alvarez, the panel chairman, said July 6 may be the last day of hearings for the ABSCBN franchise.

After the committee hearings, a committee report will be prepared for the approval of committee members.

“If all [lawmakers] are done asking questions on Monday, then that’s the last hearing [for ABS-CBN franchise issue],” Alvarez said.

The alleged violations of the Constitution committed by the ABSCBN Corp. that were discussed at the committee level are the alleged tax evasion, labor law violation, foreign ownership issue as well as the citizenship of ABS-CBN Chairman emeritus Gabby Lopez III. The House Committee on Good Government, meanwhile, is expected to tackle the alleged political bias and own political agenda of the TV network.

Earlier, Speaker Alan Peter Cayetano said the leadership of the House of Representatives is targeting to finish the deliberations of the bills granting a fresh 25-year franchise to ABS-CBN Corp. before President Duterte’s State of the Nation Address on July 27.

On Sunday, businessmen belonging to the Makati Business Club issued a statement reiterating their

call to lawmakers to renew ABS-CBN Corp.’s franchise.

“Equal treatment of all companies—especially by regulators, prosecutors, and lawmakers—will signal that rule of law prevailed, encouraging foreign and local investors at a time when we most need their help to create new jobs.”

In a separate statement, the Bishops-Businessmen’s Conference for Human Development (BBC) cautioned lawmakers against pursuing what it described as the “divisiveness” of withholding the network’s franchise and permanently shutting it down, noting how it would come on the heels of "the even more divisive Anti-Terrorism Act of 2020, sowing disunity at a time when the country can least afford it.”

Unity is necessary in crisis, “but for scientific reasons, particularly in the case of Covid-19,” said the group.

“We reiterate this as a matter of conscience, not just for our nation but for our lawmakers.”

“Dummy”

Last Thursday, Deputy Speaker and Cavite Rep. Jesus Crispin Remulla accused the embattled ABS-CBN Corp. of using Amcara Broadcasting Corp. as its “dummy.”

Remulla accused ABS-CBN Corp. of fraud for claiming to be a mere “block-timer” at Amcara Broadcasting Network, which appears to be a company owned by the media giant.

“It clearly shows the dummy relationship between Amcara and ABS-CBN. It appears that there is an element fraud here against the legis-

lative powers of Congress,” he said.

Amcara, whose own 25-year legislative franchise is expiring in November, continued to air ABS-CBN’s programs through Channel 43 and TV Plus even after the National Telecommunications Commission (NTC) issued a cease and desist order (CDO) against the network last May 5.

Amcara started its broadcasts using Channel 23. However, Channel 23 was renamed Studio 23 in 2010 and was rebranded as ABS-CBN Sports and Action in 2014.

This prompted the NTC to issue an alias CDO against Amcara last June 30.

Earlier, NTC Commissioner Gamaliel Cordoba admitted that Amcara has no equipment and permit to operate digital television.

“Based on the results of the RNS video monitoring equipment we observed that there is an existing broadcast propagation on 6 megahertz band and the result of the measurement shows that the strong signal is emanating from the direction of ABS-CBN’s tower along Mother Ignacia Street, Quezon City,” Cordoba said, quoting the report of the NTC engineers.

“It clearly shows the dummy relationship between Amcara and ABS-CBN. It appears that there is an element fraud here against the legislative powers of Congress,” Remulla said.

Remulla asked the National Bureau of Investigation (NBI) to help Congress investigate the veracity of the NTC’s findings.

Anakalusugan Rep. Michael Defensor backed the investigation

Ayala unit, govt to probe Iloilo oil spill

A

C Energy, the power arm of Ayala Corp., said it is tapping a third-party company to assist in its investigation into the oil spill incident in Iloilo City.

“As of this time, we are conducting an investigation of the incident and a reputable third-party firm will be engaged to conduct a thorough investigation as to the root cause of the explosion that ignited the fuel gases inside the sealed tank, in order to avoid similar situations from happening in the future,” the company said over the weekend.

The company reported that an explosion damaged its Power Barge 102 (PB102) which carried about 40,000 liters of bunker fuel. This led to an oil spill around 3:00 p.m. last Friday.

The company said it immediately undertook containment procedure that involved the use of multilayered spill booms from PB 102, and additional layers from the Philippine Coast Guard (PCG) and Petron.

Skimming operations have been carried out. It has tapped Shell Philippines for additional oil skimmer equipment.

AC Energy said the incident affected 63 households that have been displaced from their homes due to fumes carried to the area by winds. They were immediately evacuated to the nearby elementary school.

“We have also established a team to closely coordi-

nate with the Barangay for the needs assessment of the affected people so we can provide the needed support.

We would like to thank the PCG, Iloilo Mayor Jerry Treñas, the officials of the local government of Iloilo, and our host community who are helping us in the containment efforts. We are committed to exerting all means to clean up the oil spill as soon as possible and support the affected communities,” said AC Energy.

Measures

As AC Energy steps up to contain the oil spill, the Department of Environment and Natural Resources (DENR) said it will also conduct its own investigation into the incident. DENR Undersecretary for Solid Waste Management and Local Government Units (LGUs) Concerns Benny Antiporda told reporters that a Notice of Violation based on Republic Act 9275, or the Clean Water Act, will be issued to AC Energy. After that, he said a technical conference will be called to address the oil spill focusing on the clean-up operations.

Antiporda, the deputy spokesman of Energy Secretary Roy A. Cimatu said if warranted, a case will be endorsed to the Pollution Adjudication Board (PAB) for the computation of fines against the company.

He clarified that AC Energy, not the National Power Corp., is the owner of the barge and was “very

cooperative.” “They joined us during the meeting with the PCG on July 4. They are conducting clean-up operations at present and they are being supervised by the PCG,” he said.

For now, he said the priority is to contain the oil spill.

The Power Barge is located at Zone 3, Barangay Obrero, in Lapuz, Iloilo City. While no casualties were reported, a big number of families living in coastal communities nearby were quickly evacuated, according to Barangay Obrero Barangay Chairman Ricardo Diño Jr. “Clean-up must be conducted following the National Oil Spill Contingency Plan and clean-up operations shall be supervised by the PCG. The Regional Incident Management Team is created to monitor all aspects of the clean-up from the affected community, health impacts, environmental impacts, and waste management,” he said.

According to Antiporda, the clean-up of heavy bunker fuel in mangroves is needed to allow wave action to disperse the oil and collect them from the sea. “Sorbents and manual clean-up is recommended but must be strictly monitored so as not to disturb the mangroves in the area which may cause more harm than good.

[The] use of dispersant in the mangroves should not be recommended due to adverse effects to the mangroves,” he said. Lenie Lectura, Jonathan L. Mayuga

as he expressed serious doubts on ABS-CBN’s claim that is does not own Amcara.

Converge ICT to raise funds for expansion

By VG Cabuag @villygc

C

onverge Information and Communications Technology (ICT) Solutions Inc., the telecom firm led by Pampanga businessman Dennis Anthony H. Uy, is going public to raise as much as P35.9 billion, mostly from international investors.

According to the registration statement it filed with the Securities and Exchange Commission last week, the company said it will sell a total of 1.49 billion common shares, 1.3 billion of which are its primary and secondary offerings and the rest are its overallotment option.

The shares will be listed on the Philippine Stock Exchange (PSE). Up to 70 percent of the offer shares will be sold overseas, and the rest will be for the domestic market. The company expects to have a final price for the offering in early October and list the shares at the PSE by October 26.

Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch were picked as the joint global coordinators and joint bookrunners, while BPI Capital Corp. and BDO Capital and Investment Corp. were chosen as the local underwriters and bookrunners.

The company said about 90 percent of the net proceeds will be used to fund its capital expenditures to accelerate its nationwide fiber network rollout, such as investments in outside plant equipment, including its proprietary end-to-end fiber network, comprising of the domestic backbone, distribution networks, last mile loops and access to international connectivity networks.

“We expect that the net proceeds from the sale of the primary shares, our cash flows from operations, our available cash P8.1 billion as of June 26, our ex-

isting credit facilities P32.7 billion which are mostly in seven to 10-year term loans and our significant leverage headroom [net debt to Ebitda ratio of only 0.4x as of December 31, 2019] will enable us to fund our planned nationwide fiber network expansion,” the company said.

The remaining 10 percent will be used for general corporate purposes.

The company claims to be the largest high-speed fixed broadband operator in the Philippines, in terms of high-speed residential fixed broadband subscriptions, with a 54-percent market share as of March 31.

The company said Converge ICT has over 30,000 kilometers of fiber as of end-March, and its network is among the most extensive in the country. It network is comprised of a fiber backbone that stretches from the northernmost tip of Luzon Island to its southernmost end, as well as a fiber distribution and last-mile network that covers over 200 cities and municipalities across Luzon, reaching 4.1 million homes.

“Furthermore, we are the only major pure-play high-speed fixed broadband provider, with an exclusive focus on serving the Philippine fixed broadband market.” In May, the company said it acquired approximately 50,000 new residential subscribers, the highest monthly gross adds on record, compared to monthly new residential subscriptions of approximately 33,000 in each of January and February.

In June, the company added approximately 60,000 new residential subscribers, exceeding the May record by 20 percent. “Demand for fixed broadband in the Philippines has accelerated with the onset of the coronavirus pandemic, as workfrom-home arrangements and social distancing became the new normal.”

B2

Companies BusinessMirror

Monday, July 6, 2020

PSE STOCK QUOTATIONS

July 3, 2020

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

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

46 99.9 73.3 20.9 7.54 38.9 8.54 17 21.25 48 96.2 17.02 108.9 54.4 0.72 18.52 2.48 5.61 0.96 0.275 650 0.57 162.1

47.85 99.95 73.4 21 7.55 38.95 9.47 17.44 21.3 48.95 104.9 17.06 109.4 55 0.76 19.1 2.55 7.14 1.01 0.295 750 0.59 167

47.85 101 74.9 20.8 7.6 39.6 8.52 17.44 21.25 48.95 96.1 16.96 108 54.75 0.77 18.6 2.54 6.09 0.94 0.29 750 0.59 168.9

47.85 102.3 74.95 21 7.64 40 8.52 17.44 21.55 48.95 97.5 17.16 111.7 54.75 0.77 19.3 2.54 6.09 1.02 0.305 750 0.59 168.9

46 99.9 72.35 20.8 7.53 38.85 8.52 17.44 21.2 48 96.1 16.96 108 54.3 0.76 18.52 2.54 5.25 0.94 0.275 750 0.57 162.1

46 99.95 73.4 21 7.54 38.95 8.52 17.44 21.25 48 97.5 17.06 109.4 54.75 0.76 19.3 2.54 5.25 1.01 0.275 750 0.59 167

7900 7071930 1719950 76000 348000 2849700 1000 100 480800 1900 80 109500 896870 6770 2000 28700 4000 1000 24000 690000 10 186000 1900

368910 709138275.5 126066471.5 1593770 2638255 112646230 8520 1744 10224910 91635 7744 1868306 98011433 368078.5 1530 535432 10160 5334 23230 194100 7500 107420 317158

INDUSTRIAL

AC ENERGY ALSONS CONS ABOITIZ POWER BASIC ENERGY FIRST GEN FIRST PHIL HLDG MERALCO MANILA WATER PETRON PETROENERGY PHX PETROLEUM PILIPINAS SHELL SPC POWER AGRINURTURE AXELUM CENTURY FOOD DEL MONTE DNL INDUS EMPERADOR SMC FOODANDBEV ALLIANCE SELECT FRUITAS HLDG GINEBRA JOLLIBEE LIBERTY FLOUR MACAY HLDG MAXS GROUP MG HLDG SHAKEYS PIZZA ROXAS AND CO SWIFT FOODS UNIV ROBINA VITARICH CONCRETE A CONCRETE B CEMEX HLDG DAVINCI CAPITAL EAGLE CEMENT EEI CORP HOLCIM MEGAWIDE PHINMA TKC METALS VULCAN INDL CROWN ASIA EUROMED MABUHAY VINYL PRYCE CORP CONCEPCION GREENERGY INTEGRATED MICR IONICS SFA SEMICON CIRTEK HLDG

2.3 1.15 27.7 0.151 26.85 62.65 278.2 13.62 3.09 3.01 11.2 18.38 8 7.53 2.57 14.5 4.18 5.1 7.99 70.4 0.56 1.27 31.55 147.4 39.5 6.46 5.49 0.146 6.06 1.43 0.108 131.5 0.85 58 60 1.03 4.1 9.9 5.18 6.3 7.29 8.34 0.7 0.84 1.92 2.1 3.61 4.05 19.84 1.87 5.73 1.06 1.24 8.19

2.31 1.21 27.85 0.155 26.9 62.7 278.4 13.64 3.1 3.15 11.44 18.4 8.03 7.62 2.58 14.78 4.35 5.12 8 70.5 0.57 1.28 32 147.5 43 6.87 5.5 0.155 6.07 1.45 0.113 131.6 0.86 63 64 1.04 4.67 9.92 5.2 6.37 7.3 9 0.73 0.87 1.97 2.11 3.72 4.2 20.7 1.88 5.8 1.07 1.25 8.2

2.3 1.23 28 0.155 26.9 63 275 13.4 3.07 3.2 11.44 18.28 8.03 7.48 2.55 14.8 4.18 5.16 8 70 0.58 1.28 32.4 147.5 43 6.87 5.59 0.141 6.05 1.44 0.114 135.1 0.88 62 72.75 1.02 4.01 9.82 5.31 6.57 7.6 9 0.71 0.88 1.97 2.15 3.69 4.1 20.7 1.85 5.7 1.05 1.24 7.97

2.35 1.23 28 0.156 28 64 278.2 13.76 3.11 3.2 11.44 18.44 8.05 7.85 2.59 14.8 4.2 5.21 8.05 71 0.58 1.29 32.4 149.3 43 6.88 5.79 0.169 6.11 1.49 0.114 135.1 0.9 65 72.75 1.05 4.01 9.98 5.32 6.57 7.75 9 0.73 0.94 1.97 2.15 3.72 4.2 20.7 1.91 5.8 1.11 1.25 8.19

2.29 1.15 27.7 0.151 26.4 62.6 275 13.4 3.06 3 11.16 18.28 8 7.48 2.55 14.2 4.18 5.08 7.99 69.5 0.56 1.26 31.5 146 43 6.87 5.44 0.141 6.05 1.39 0.105 130 0.85 55.5 56 1.02 4 9.82 5.15 6.3 7.3 9 0.69 0.84 1.81 2.05 3.6 4.05 19.8 1.83 5.7 1.04 1.21 7.81

2.31 1.21 27.7 0.156 26.85 62.7 278.2 13.64 3.09 3.15 11.44 18.38 8 7.62 2.57 14.78 4.2 5.1 8 70.5 0.57 1.28 32 147.5 43 6.88 5.49 0.154 6.07 1.43 0.108 131.6 0.85 58 64 1.03 4 9.92 5.18 6.3 7.3 9 0.7 0.84 1.96 2.1 3.72 4.2 20.3 1.88 5.8 1.06 1.24 8.19

2564000 495000 295400 90000 3047700 70300 158360 14073700 1660000 221000 81900 1425400 43600 185300 245000 449300 96000 429900 3256000 43770 244000 3896000 3900 1203620 400 1700 1076400 4390000 347300 7362000 2390000 564950 14464000 121100 2860 15880000 11000 15500 1014300 5142800 6134000 100 219000 12642000 14000 758000 33000 53000 4000 8370000 49500 972000 794000 3811700

5910460 575000 8197870 13760 82067720 4416632 43939190 190777856 5126760 669410 935310 26198776 349985 1407540 627590 6515690 402770 2204988 26070657 3081617 138030 4946320 124180 177945301 17200 11695 5948769 690470 2107934 10564940 257670 74832396 12673080 7295311 176666 16382490 44050 153852 5283705 32758601 46237306 900 155210 11257070 27040 1585230 121400 220280 80915 15725480 284100 1039520 975390 30711827

HOLDING & FRIMS ABACORE CAPITAL ASIABEST GROUP AYALA CORP ABOITIZ EQUITY ALLIANCE GLOBAL AYALA LAND LOG ANSCOR ANGLO PHIL HLDG ATN HLDG A ATN HLDG B BHI HLDG COSCO CAPITAL DMCI HLDG FILINVEST DEV FJ PRINCE A GT CAPITAL HOUSE OF INV JG SUMMIT KEPPEL HLDG A LODESTAR LOPEZ HLDG LT GROUP MABUHAY HLDG METRO PAC INV PRIME MEDIA SOLID GROUP SYNERGY GRID SM INVESTMENTS SAN MIGUEL CORP SOC RESOURCES TOP FRONTIER ZEUS HLDG

0.485 8.15 769 47.55 6.7 1.7 6.02 0.455 0.54 0.58 950 5.45 4.16 8.6 3.11 460 3.35 67.25 5.12 0.65 2.87 8.22 0.475 3.67 0.81 0.96 160 950 103 0.62 127.5 0.134

0.49 8.27 769.5 48.5 6.73 1.71 6.15 0.5 0.56 0.6 1439 5.48 4.17 8.85 3.43 462 3.4 67.5 5.97 0.66 2.88 8.23 0.52 3.68 0.85 0.99 170 950.5 103.6 0.64 128 0.137

0.5 8.32 777 48 6.85 1.69 6.15 0.465 0.55 0.55 900.5 5.6 4.15 8.28 3.44 473 3.4 66 5.1 0.7 2.84 8.3 0.53 3.75 0.85 0.96 170 945 105 0.61 130 0.14

0.51 9 789.5 48.5 7.03 1.72 6.15 0.5 0.56 0.6 950 5.6 4.19 8.6 3.44 482 3.4 67.6 5.1 0.72 2.88 8.3 0.53 3.8 0.85 0.97 170 951 105.1 0.64 130 0.145

0.48 8.09 765 46.4 6.65 1.68 6.15 0.465 0.54 0.55 900.5 5.4 4.13 8.28 3.44 459 3.4 65.05 5.1 0.64 2.84 8.17 0.53 3.67 0.81 0.96 170 930 103 0.61 128 0.137

0.485 8.15 769.5 48.5 6.7 1.71 6.15 0.495 0.56 0.6 950 5.48 4.16 8.6 3.44 460 3.4 67.25 5.1 0.65 2.87 8.23 0.53 3.68 0.85 0.96 170 950 103 0.64 128 0.137

9140000 29200 198140 423800 7262100 650000 2700 280000 3126000 8000 20 488700 5283000 77900 3000 228010 138000 1671570 5000 6035000 1186000 3469500 23000 24709000 87000 382000 10 1171300 150170 22000 400 1810000

151900 -382253099 -68646221.5 205937 -7098150 -1782455 -1108444 -4201372 -17670 127020 -2332935 26095945 -2190835 -7134758 79497264 880200 -64064 -1107994 23286.9998 209554 30920 -1353852 -314895 -9902250 -579256 13990 37800 129465998 38340 -12460 -1069319 -427100 -56560 -30979249 370300 -234 -5783110 6938 494621 6081468 -8859533 8600 -41890 9900 1023000 -1012052

4487100 240622 152700745 20268370 49293261 1108160 16605 137650 1720970 4650 18505 2680426 21946630 655068 10320 106306424 469200 112292637 25500 4006390 3404570 28,471,829( 12190 91825210 73300 366960 1700 1108645080 15592966 13470 51280 251240

-422100 -88736530 8839290 -21563248 -1387547 -10753500 -57858098 -459000 -38446872 97130 2,171,050.9997) 2819620 923785195 -1133865 -51280 -

PROPERTY ARTHALAND CORP 0.54 0.55 0.57 0.57 0.55 0.55 626000 346530 ANCHOR LAND 8.04 8.89 8.61 8.89 8.61 8.89 2000 17335 AYALA LAND 35.15 35.2 35.4 35.7 34.9 35.2 4664800 164199480 0.99 1.04 0.99 0.99 0.97 0.99 60000 58770 ARANETA PROP BELLE CORP 1.43 1.45 1.44 1.44 1.43 1.43 95000 136190 A BROWN 0.72 0.73 0.72 0.74 0.72 0.73 1127000 814150 CITYLAND DEVT 0.75 0.77 0.77 0.77 0.77 0.77 1000 770 CROWN EQUITIES 0.117 0.12 0.117 0.117 0.116 0.116 700000 81250 4.8 4.85 4.78 4.85 4.76 4.85 3672000 17649980 CEB LANDMASTERS 0.37 0.38 0.37 0.38 0.37 0.37 2560000 958050 CENTURY PROP DOUBLEDRAGON 17.02 17.04 17 17.06 16.94 17 191400 3256284 DM WENCESLAO 6.02 6.05 6.2 6.2 5.92 6.05 541800 3256614 EMPIRE EAST 0.246 0.255 0.255 0.255 0.255 0.255 10000 2550 EVER GOTESCO 0.103 0.106 0.105 0.106 0.101 0.106 640000 66830 1.01 1.02 1.02 1.03 1.01 1.02 20410000 20822620 FILINVEST LAND 0.84 0.85 0.83 0.85 0.83 0.84 99000 82940 GLOBAL ESTATE 8990 HLDG 9.5 9.51 9.52 10.02 9.5 9.5 105200 1010073 PHIL INFRADEV 0.82 0.83 0.83 0.83 0.82 0.82 548000 453180 CITY AND LAND 0.7 0.74 0.74 0.74 0.74 0.74 20000 14800 3.18 3.19 3.17 3.19 3.14 3.18 12411000 39253800 MEGAWORLD 0.147 0.148 0.151 0.153 0.147 0.148 7040000 1041980 MRC ALLIED 0.29 0.315 0.29 0.29 0.29 0.29 500000 145000 PHIL ESTATES ROBINSONS LAND 17.18 17.2 17.3 17.44 17.2 17.2 1018500 17601948 PHIL REALTY 0.231 0.238 0.232 0.232 0.231 0.231 130000 30100 1.59 1.63 1.59 1.6 1.59 1.6 101000 161590 ROCKWELL SHANG PROP 2.68 2.71 2.72 2.72 2.7 2.7 19000 51620 1.81 1.91 1.9 1.91 1.9 1.91 50000 95390 STA LUCIA LAND SM PRIME HLDG 33.35 33.4 33.1 33.4 32.85 33.4 18372100 605420040 VISTAMALLS 3.61 3.71 3.65 3.76 3.61 3.61 82000 301160 1.24 1.26 1.25 1.27 1.23 1.24 2058000 2550170 SUNTRUST HOME PTFC REDEV CORP 37.05 43.95 31.55 31.55 31.55 31.55 100 3155 VISTA LAND 3.97 3.98 3.87 4.03 3.86 3.97 1668000 6607950

-15035910 -5180 61480 -2333860 -296686 -11664280 -337723 14800 11655820 1990 -7157338 43520 475221835 691340

SERVICES ABS CBN 14.96 15.02 15.26 15.34 14.92 14.96 467200 7075176 GMA NETWORK 4.98 4.99 5.03 5.03 4.96 4.99 261700 1306717 MANILA BULLETIN 0.355 0.36 0.36 0.36 0.36 0.36 20000 7200 9.45 12.98 12.98 12.98 12.98 12.98 800 10384 MLA BRDCASTING GLOBE TELECOM 2110 2118 2130 2150 2090 2110 46745 99277380 1290 1291 1300 1300 1275 1290 90620 116920265 PLDT APOLLO GLOBAL 0.05 0.052 0.05 0.052 0.05 0.052 2960000 149070 DFNN INC 2.83 2.95 2.99 2.99 2.99 2.99 2000 5980 3.04 3.05 3.44 3.46 3 3.04 180306000 577912300 DITO CME HLDG 1.18 1.54 1.6 1.6 1.57 1.57 20000 31910 IMPERIAL ISLAND INFO 0.071 0.072 0.072 0.076 0.07 0.072 1330000 95370 JACKSTONES 2.3 2.32 2.65 3.57 2.2 2.3 16518000 49844900 NOW CORP 2.12 2.14 2.18 2.18 2.09 2.12 3308000 7044630 TRANSPACIFIC BR 0.172 0.178 0.181 0.181 0.172 0.178 590000 104460 2.19 2.2 2.2 2.21 2.16 2.19 586000 1282840 PHILWEB 9.65 9.7 9.88 9.88 9.54 9.69 26500 258103 2GO GROUP ASIAN TERMINALS 15.52 16.8 16.8 16.8 16.8 16.8 100 1680 CHELSEA 3.47 3.5 3.64 3.64 3.47 3.47 1488000 5222790 CEBU AIR 42.9 43 43.5 45.2 41.6 42.9 457500 19926505 103.8 104 103 103.8 101.6 103.8 5302660 546399757 INTL CONTAINER 12.7 12.8 12.54 12.8 12.54 12.8 4100 52166 LBC EXPRESS LORENZO SHIPPNG 0.78 0.8 0.8 0.8 0.79 0.79 60000 47900 MACROASIA 6.26 6.28 6.4 6.68 6.22 6.28 8294800 53334411 METROALLIANCE A 2.16 2.22 2.22 2.33 2.17 2.22 857000 1905960 2.08 2.25 2.08 2.08 2.08 2.08 1000 2080 METROALLIANCE B PAL HLDG 6.56 6.7 6.8 6.8 6.5 6.7 40400 267292 0.79 0.8 0.82 0.82 0.78 0.8 316000 251460 HARBOR STAR ACESITE HOTEL 1.16 1.3 1.24 1.24 1.24 1.24 10000 12400 BOULEVARD HLDG 0.023 0.024 0.024 0.025 0.024 0.024 28100000 685600 1.65 1.7 1.65 1.65 1.65 1.65 3000 4950 DISCOVERY WORLD WATERFRONT 0.38 0.395 0.385 0.385 0.38 0.38 270000 103600 STI HLDG 0.3 0.305 0.3 0.305 0.3 0.305 1550000 465350 BERJAYA 2.1 2.19 2.12 2.2 2.11 2.19 98000 207690 BLOOMBERRY 7.83 7.88 7.78 7.91 7.7 7.88 6837400 53786845 PACIFIC ONLINE 1.88 1.99 1.89 1.99 1.88 1.99 75000 142010 1.37 1.38 1.4 1.4 1.38 1.38 552000 762700 LEISURE AND RES 2.49 2.52 2.59 2.59 2.46 2.52 97000 241230 PH RESORTS GRP PREMIUM LEISURE 0.315 0.32 0.315 0.32 0.31 0.315 2150000 680500 PHIL RACING 7.6 8 8.01 8.01 8 8 55500 444010 ALLHOME 7.2 7.23 7.49 7.49 7.15 7.2 1651100 12091749 1.57 1.58 1.59 1.62 1.55 1.58 1207000 1909550 METRO RETAIL 46.5 46.6 46.6 46.8 46.4 46.6 2589300 120602570 PUREGOLD 64.4 65.5 65 65.5 64.3 65.5 458100 29654781.5 ROBINSONS RTL PHIL SEVEN CORP 125 127 125 126 125 125 386770 48346695 SSI GROUP 1.15 1.16 1.14 1.17 1.13 1.15 1098000 1263010 15.56 15.6 15.48 15.6 15.38 15.56 1576900 24504110 WILCON DEPOT 0.315 0.33 0.31 0.33 0.305 0.33 1870000 598500 APC GROUP EASYCALL 6.87 6.94 6.8 7 6.8 6.87 32300 221390 GOLDEN BRIA 282 300 281 281 281 281 30 8430 IPM HLDG 4.5 4.79 4.18 4.8 4.17 4.8 12700 54315 PRMIERE HORIZON 0.202 0.203 0.203 0.208 0.2 0.203 1610000 326920 4.26 5.05 3.66 5.01 3.66 5.01 384000 1411210 SBS PHIL CORP

-26196870 2587310 11232260 64799.9999 183220 -23410 -5400 43960 -5871.9999 7000 -3769190 554453 -3520274 680 -14955167 1990 276000 156634 159510 3975200 -14167913.5 -662933 -34300.0003 12960238 -

MINING & OIL ATOK 9.74 10.18 10.18 10.18 9.8 9.8 2300 22958 APEX MINING 1.23 1.24 1.27 1.29 1.23 1.24 4069000 5112500 -473300 0.0009 0.001 0.0009 0.001 0.0008 0.0009 1751000000 1575700 ABRA MINING ATLAS MINING 2.22 2.29 2.3 2.32 2.16 2.29 98000 217320 BENGUET A 1.4 1.43 1.19 1.57 1.19 1.4 1155000 1632230 BENGUET B 1.41 1.5 1.15 1.62 1.15 1.5 552000 809310 COAL ASIA HLDG 0.181 0.19 0.19 0.19 0.19 0.19 500000 95000 95000 2.66 2.69 2.68 2.7 2.66 2.66 952000 2538940 161500 CENTURY PEAK 0.94 0.95 0.89 0.95 0.88 0.95 9510000 8829050 -120260 FERRONICKEL 0.238 0.242 0.239 0.246 0.239 0.239 3180000 760480 GEOGRACE LEPANTO A 0.092 0.094 0.094 0.094 0.092 0.092 6420000 592820 MANILA MINING A 0.007 0.0072 0.007 0.0073 0.007 0.0072 36000000 260000 MANILA MINING B 0.0073 0.0085 0.0084 0.0084 0.0074 0.0074 22000000 173800 0.59 0.6 0.59 0.59 0.57 0.59 193000 113630 MARCVENTURES NIHAO 1.29 1.36 1.37 1.4 1.3 1.3 1080000 1439250 4140 NICKEL ASIA 2 2.01 1.84 2.02 1.84 2 32715000 63861080 -1426950 OMICO CORP 0.36 0.38 0.36 0.36 0.36 0.36 20000 7200 ORNTL PENINSULA 0.49 0.51 0.48 0.51 0.48 0.5 190000 94500 2.66 2.69 2.54 2.69 2.53 2.66 1860000 4910900 -1422910 PX MINING 12.68 12.7 12.74 12.78 12.64 12.7 638300 8103348 -1472134 SEMIRARA MINING 0.0038 0.004 0.0037 0.0037 0.0037 0.0037 1000000 3700 UNITED PARAGON ACE ENEXOR 6.51 6.7 6.52 6.73 6.5 6.71 193200 1262464 671 ORNTL PETROL A 0.0087 0.009 0.0087 0.0091 0.0087 0.0088 90000000 795700 0.0087 0.0094 0.009 0.009 0.009 0.009 1000000 9000 ORNTL PETROL B PHILODRILL 0.0075 0.0077 0.0075 0.0075 0.0075 0.0075 2000000 15000 PXP ENERGY 6.08 6.1 6.55 6.6 6 6.1 3492500 21518724 520583

PREFFERED HOUSE PREF A 99.1 99.8 99.8 99.8 99.8 99.8 340 33932 AC PREF B2R 503.5 505 505 505 505 505 20 10100 -10100 DD PREF 101.1 102 101.2 101.2 101.1 101.1 21210 2144576 99.2 100.4 100 100 100 100 2000 200000 PNX PREF 3A PNX PREF 4 1012 1016 1012 1016 1010 1012 3475 3513000 PCOR PREF 2B 1013 1040 1035 1040 1035 1040 80 83050 PCOR PREF 3A 1040 1049 1049 1049 1049 1049 10 10490 PCOR PREF 3B 1072 1075 1074 1075 1074 1075 2185 2347625 77.75 78.3 78.3 78.3 77.75 77.75 970 75699.5 33669 SMC PREF 2C 76 77.15 76 76 76 76 19050 1447800 45600 SMC PREF 2E 78.1 78.3 78.1 78.1 78.1 78.1 98950 7727995 SMC PREF 2F SMC PREF 2I 78.3 78.9 78.3 78.3 78.3 78.3 20000 1566000

PHIL. DEPOSITARY RECEIPTS ABS HLDG PDR 14.5 14.7 14.7 14.7 14.7 14.7 43000 632100 GMA HLDG PDR 4.82 4.85 4.85 4.85 4.85 4.85 3000 14550 -14549.9999

WARRANTS LR WARRANT 0.68 0.72 - - - - - -

SMALL & MEDIUM ENTERPRISES ALTUS PROP 30 30.1 37.65 39.3 28.3 30 8085700 263560060 -27055535 ITALPINAS 2.03 2.04 2.16 2.16 2.02 2.04 7321000 15138500 1285440 KEPWEALTH 5.85 6.03 5.85 6.06 5.8 6.03 44400 258436 3.1 3.11 3.31 3.33 2.96 3.11 103365000 323121630 3283200 MERRYMART 0.58 0.6 0.61 0.61 0.58 0.58 1475000 865600 XURPAS

EXHANGE TRADE FUNDS

FIRST METRO ETF 96.5 96.75 96.5 97 96.5 96.5 15360 1485359.5 28965

www.businessmirror.com.ph

Surge in demand props up electricity spot-market rate

E

By Lenie Lectura

@llectura

lectricity spot-market price for June went up to P3.25 per kilowatt-hour (kWh), from P2.19 per kWh in the previous month, data released by the Independent Electricity Market Operator of the Philippines Inc. (IEMOP) showed.

IEMOP Chief Operating Officer Robinson Descanzo attributed the price increase to a spike in demand and power plant outage incidents that prompted distribution utilities (DUs) such as the Manila Electric Co. (Meralco) to source more from the spot market.

“The main driver is increase in

demand. In June, particularly second week, there was a price spike because of high peak demand as well as the forced outage of a number of power plants," said Descanzo during a virtual press conference.

Based on IEMOP’s latest assessment, June’s average supply and demand stood at 13,794 megawatts

STOCK-MARKET OUTLOOK Last week

Share prices improved last week, ending three consecutive weeks of decline, as investors picked up bargain stocks and sentiments improved with the gradual reopening of the Philippine economy.

The benchmark Philippine Stock Exchange index (PSEi) gained 180.82 points to close the week at 6,372.66 points.

The main index started the week down, but it recovered during the succeeding trading days as bargain hunters took advantage of lower prices.

“Most of its gains came in towards the end of the week on optimism of a faster economic recovery due to increased mobility. The Land Transportation Franchising and Regulatory Board allowed traditional jeepneys that have existing franchises in 49 routes to resume operations starting last Friday," Christopher Mangun, research head at AAA Securities Inc., said.

"Although, the move is seen to allow only 6,000 out of the estimated 55,000 jeepneys in Metro Manila, or a little over 10 percent of pre-pandemic operations. Investors still saw this as a welcome development that would help the economy get back on its feet."

Trading volumes rose this week with turnover value at P42.42 billion, but this was mainly due to the large block sale of First Gen Corp. in the middle of the week as an American investment firm KKR, through its regional subsidiary Valorous Asia Holdings Pte. Ltd., acquired almost 12 percent of the Lopez-led power company.

As a result, foreign investors were net buyers at P5.39 billion. Sans the large transaction, foreign flows would remain negative, Mangun said.

All other subindices ended in the green, with the broader All Shares index which closed 88.78 points higher to 3,717.93, the Financials index gained 28.60 to 1,267.56, the Industrial index soared 323.66 to 7,950.73, the Holding Firms index added 121.52 to 6,585.99, the Property index rose 121.36 to 3,169.68, the Services index was up 37.58 to 1,432.08 and the Mining and Oil index climbed 136.98 to 5,306.94.

For the week, gainers and losers were almost even at 119 to 113 and 20 shares were unchanged.

Top gainers were Altus Property Ventures Inc., the A and B shares of Benguet Corp., Jackstones Inc., Imperial Resources Inc., Manulife Financial Corp. and First Gen. Top losers were PTFC Redevelopment Corp., Jolliville Holdings Corp., DITO CME Holdings Corp., Filipino Fund Inc., PXP Energy Corp., Metro Alliance Holdings and Equities Corp A and B shares and Asiabest Group International Inc.

This week

Share prices may move sideways this week, as investors will continue to weigh economic recovery hopes against the mounting cases of coronavirus in the Philippines.

Claire Alviar of Philstocks Finance Inc. said investors will also wait for the inflation rate data that will be announced early in the week.

“The difference between past weeks and next week is the optimism for the week ahead could be higher given the strong data coming out offshore. Here at home, recovery hopes have also started as the government eased lockdown measures, and more businesses are reopened already with additional available transportation modes,” Alviar said.

“Traders should still be cautious trading the market as the virus has not yet been contained. On the data front, anticipated benign June inflation rate to be released this week could add positive sentiment as this may, at least, strengthen purchasing power—helpful in the consumer stocks, as well as in the overall economy,” she said.

Mangun, meanwhile, said the main index will move higher and test its next resistance at 6,600 points.

“A successful breakout above this resistance level by the end of the week will signal an even stronger move higher in the coming weeks. Failure to pierce this level will signal investors to sell which will send it lower to test support. It will all depend on investor’s perception of the economic recovery. The market’s movement is still driven by sentiment as investors ignore fundamentals in expectations of grim earnings."

Stock picks

Broker Regina Capital Development Corp. has recommended to buy on pullbacks on the shares of BDO Unibank Inc. after its stock price found some respite after last week's 4.57-percent drop.

“Nevertheless, BDO remains below its key short- and long-term moving averages. The mostly bearish indicators will likely limit BDO's uptrend by its 50-day moving average of P98.80 at least in the near-term,” it said.

Shares of BDO closed Friday at P99.95 apiece.

Meanwhile, it also gave a “buy” recommendation during breakout on the shares of Bank of the Philippine Islands (BPI), as its strong performance pushed prices near its resistance of P72.75.

“As indicators gradually turn bullish, BPI may soon test its resistance and attempt to breakout. If a breakout occurs though, gains will likely be immediately capped at P73.65, the next resistance,” it said.

BPI shares last week closed at P73.40 apiece. VG Cabuag

(MW) and 10,174MW, respectively.

Peak demand, meanwhile, stood at 12,611MW. The effective spot settlement price (ESSP) for customers in June stood at P3.25 per kWh compared with P2.19 per kWh in May. IEMOP is the operator of the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.

Among the top priorities of IEMOP is the transition to the 5-minute market from an hour.

IEMOP officially launched its ‘Fast-Forward to Five’ campaign which aims to highlight the Parallel Operations Program (POP) Activities for the New Market Management System (NMMS) that will facilitate the 5-minute market trading by December.

In relation to the said campaign, IEMOP conducted back-to-back focus group discussions with WESM

stakeholders last June 24 as a precursor to the succeeding phases of the POP. It is also focused on participating with the Ancillary Services Technical Working Group in preparation for the reserve market.

IEMOP has proposed changes in rules to enhance the retail market trading in anticipation of the transition towards full retail competition.

It is collaborating with the Philippine Electricity Market Corp. for the conduct of a detailed study on developing the electricity derivatives market to enhance the risk management mechanism of trading participants in the WESM and the implementation of the Green Energy Option Program and the Renewable Energy Market.

It noted that involvement of the Mindanao power players remains to be a determining factor in setting the timeline and target date for the operation of WESM in Mindanao.

AirAsia: Flyers must order meals online

A

irAsia said over the weekend that additional measures related to the sale of in-flight meals and products are being taken to ensure guests will have a “safe and convenient journey” under the airline’s new norm of flying.

While AirAsia’s award-winning Santan meals will still be served onboard, guests will need to pre-book their hot meals online.

The carrier said in-flight purchasing of meals will be temporarily put on hold to lessen physical interactions in transit while cabin crew handling food will wear extra protective gear for added safety.

Rates for check-in baggage have also been marked down to ensure guest compliance with AirAsia’s strict one carry-on baggage policy.

“With AirAsia, flying safe not only means our assurance of upholding the safety and wellbeing of our guests but also the provision of the highest level of service at affordable rates,” AirAsia Philippines CEO Ricky Isla said.

“Our competitive prices for our award-winning meals and baggage services strengthen our position as the reigning World’s Best Low-Cost airline as awarded by Skytrax.”

AirAsia said guests may choose from all-time favorites such as Uncle Chin’s Chicken Rice, Beef Tapa with Scrambled Egg, and Pasta Arrabiata for only P140, which includes a free drink. These Santan meals are

mutual funds

produced and packed hygienically following strict food safety requirements.

Guests who require more baggage allowance may also take advantage of lower fees for check-in baggage.

Get 30 kilograms for only P590 (instead of P990) or 40 kg for only P690 (instead of P1,190).

Pre-booking of meals and baggage may be done via the “Manage My Booking” tab on airasia.com at least 24 hours ahead of departure.

Meanwhile, in-flight food and beverages will still be available but are limited to snack-to-go options, bottled water and other pre-packed drinks. Sale of non-food items and merchandise will also be limited.

The airline said a new range of safety products will be available for purchase onboard such as hygiene kits containing three surgical masks and disinfecting wipes priced at P120, a reusable AirAsia face mask for P180 and five surgical face masks for P140.

Guests can expect enhanced safety measures throughout the entire journey. These include the mandatory wearing of face masks to be permitted to travel, among others. Guests are also advised to check and comply with measures implemented by local airport authorities for a smooth travel experience.

AirAsia said it is closely monitoring this situation and reserves the right to announce further policies according to the latest developments. Recto Mercene

July 3, 2020

NAV One Year Three Year Five Year Y-T-D per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 207.87 -22.96% -8.71% -5.16% -17.48% ATRAM Alpha Opportunity Fund, Inc. -a 1.0653 -36.08% -12.39% -5.48% -22.92% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.8223 -32.34% -13.08% -7.35% -23.27% Climbs Share Capital Equity Investment Fund Corp. -a 0.7152 -25.76% n.a. n.a.

-20.28% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6867 -22.71% n.a. n.a.

-19.15% First Metro Save and Learn Equity Fund,Inc. -a 4.4414 -20.26% -7.06% -4.76% -16.65% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.7064 -21.2% -9.37% n.a.

-17.24% MBG Equity Investment Fund, Inc. -a 80.18 -34.33% n.a. n.a.

-22.4% PAMI Equity Index Fund, Inc. -a 41.9649 -21.39% -6.71% -3.82% -18.17% Philam Strategic Growth Fund, Inc. -a 446.48 -19.51% -6.21% -4.26% -16.2% Philequity Alpha One Fund, Inc. -a,d,5 0.919 n.a. n.a. n.a.

-10.79% Philequity Dividend Yield Fund, Inc. -a 1.0544 -21.98% -6.66% -3.81% -18.07% Philequity Fund, Inc. -a 31.0265 -21.73% -6.2% -3.5% -18.13% Philequity MSCI Philippine Index Fund, Inc. -a 0.8259 -22.77% n.a. n.a.

-18.88% Philequity PSE Index Fund Inc. -a 4.2709 -21.15% -6.38% -3.14% -18.24% Philippine Stock Index Fund Corp. -a

715.53 -20.89% -6.31% -3.32% -17.95% Soldivo Strategic Growth Fund, Inc. -a 0.6513 -31.1% -10.07% -7.4% -23.5% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.3065 -25.2% -7.66% -4.56% -21.44% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.8218 -20.91% -6.45% -3.24% -17.89% United Fund, Inc. -a 2.9979 -21.29% -4.93% -2.71% -17.94% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 96.0557 -20.69% -5.82% -2.49% -17.87% Primarily invested in foreign currency securities ATRAM AsiaPlus Equity Fund, Inc. -b

$0.9733 -3.93% -0.3% -1.07% -5.36% Sun Life Prosperity World Voyager Fund, Inc. -a $1.3858 5.72% 6.12% n.a.

0.51% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.5752 -10.6% -3.96% -3.48% 0.79% ATRAM Philippine Balanced Fund, Inc. -a 2.0964 -10.53% -3.91% -1.71% -3.88% First Metro Save and Learn Balanced Fund Inc. -a 2.4654 -8.43% -2.06% -2.9% -6.31% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1895 n.a. n.a. n.a.

-17.07% NCM Mutual Fund of the Phils., Inc. -a 1.8726 -4.3% -0.53% -0.22% -4.61% PAMI Horizon Fund, Inc. -a 3.5706 -5.62% -1.38% -1.28% -5.77% Philam Fund, Inc. -a 15.8787 -6.86% -1.72% -1.48% -6.38% Solidaritas Fund, Inc. -a 1.9639 -9.54% -2.91% -1.31% -7.62% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.3652 -14.43% -3.73% -2.46% -12.9% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9676 -6.04% n.a. n.a.

-4.74% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.8796 -14.72% n.a. n.a.

-11.72% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.8561 -16.74% n.a. n.a.

-13.8% Sun Life Prosperity Dynamic Fund, Inc. -a 0.8351 -17.16% -4.53% -3.58% -14.33% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.03842 2.45% 2.4% 1.63% 0.5% PAMI Asia Balanced Fund, Inc. -b $0.9847 -1.31% 0.22% -0.07% -5.13% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.8755 2.52% 4.26% 3.53% -0.9% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.113 0.43% 2.13% n.a.

-1.4% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 366.16 4.51% 3.12% 2.57% 2.34% ATRAM Corporate Bond Fund, Inc. -a

1.9424 2.21% 1.1% -0.01% 2.12% Cocolife Fixed Income Fund, Inc. -a 3.1929 4.66% 5.12% 5.11% 2.46% Ekklesia Mutual Fund Inc. -a 2.3028 5.32% 3.03% 2.41% 3.5% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.453 6.08% 3.45% 2.01% 3.98% Philam Bond Fund, Inc. -a 4.6314 10.71% 4.23% 2.72% 5.91% Philam Managed Income Fund, Inc. -a,6 1.2992 6.98% 4.15% 2.28% 3.38% Philequity Peso Bond Fund, Inc. -a 3.9574 7.32% 4.38% 2.34% 4.47% Soldivo Bond Fund, Inc. -a 1.0289 9.43% 3.43% 1.76% 6.7% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1759 7.24% 4.81% 3.03% 3.25% Sun Life Prosperity GS Fund, Inc. -a

1.7453 6.1% 4.12% 2.49% 2.6% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $473.87 3.3% 2.47% 2.74% 1.21% ALFM Euro Bond Fund, Inc. -a Є215.32 -1.13% 0.63% 0.99% -2.01% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2186 2.9% 2.79% 2.51% 0.94% 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 $1.0697 -1.6% -0.22% 0.26% -2.33% Philam Dollar Bond Fund, Inc. -a $2.4435 4.02% 3.24% 3.12% 1.65% Philequity Dollar Income Fund Inc. -a $0.0605934 2.26% 1.95% 1.86% 0.46% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.177 2.9% 2.01% 2.43% 0.05% Money Market Funds Primarily invested in Peso securities ALFM Money Market Fund, Inc. -a 128.19 3.76% 3.22% 2.42% 1.92% 1.5% First Metro Save and Learn Money Market Fund, Inc. -a 1.0417 2.62% n.a. n.a.

Sun Life Prosperity Money Market Fund, Inc. -a 1.2836 3.1% 3.04% 2.58% 1.5% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0451 1.64% n.a. n.a.

0.76% Feeder Fund Primarily invested in foreign currency securities ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.93 n.a. n.a. n.a.

-6.06%

a - NAVPS as of the previous banking day. b - NAVPS as of two banking days ago. c - Listed in the PSE. d - in Net Asset Value per Unit (NAVPU).

1 - Launch date is September 28, 2019. 2 - Launch date is November 15, 2019. 3 - Adjusted due to stock dividend issuance last October 9, 2019.

4 - Renaming was approved by the SEC last October 12, 2018 (formerly, One Wealthy Nation Fund, Inc.). 5 - Launch date is December 09, 2019.

6 - Re-classified into a Bond Fund starting February 21, 2020 (Formerly a Money Market Fund).

"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

Banking&Finance BusinessMirror

COA slaps disallowance notices on ₧377.3-M tax credits of firms

T

he Commission on Audit (COA) slapped Notices of Disallowance on P377.29-million worth of tax credits granted to four textile firms from 2008 to 2012.

A letter by COA Special Audit Office (SOA) Director Pearl L. Ramos said the COA discovered that the tax credit certificates (TCCs) were issued to these firms by the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS) despite the absence of required import documents, proof of payment of duties and taxes and other forms of certification for the grant of tax credits.

According to the report, the disallowed TCCs were granted by the OSS to the following: Capital-Roll Knit Corp. (CRC) amounting to P40.88 million; Uni-Glory’s Knitting Corp.

(UKC), which received P15.03 million-worth of tax credits; Primeknit Manufacturing Corp. (PMC), P15.76 million; and, Tai-Cheng International Resource Inc. (Tciri), P20.01 million.

Ramos said the disallowed tax credits of P40.88 million to CRC covered 10 TCCs issued from 2010 to 2011 while those disallowed for UKC covered five TCCs issued in 2010.

The disallowed TCCs issued to CRC were on top of the 75 TCCs flagged by COA in its decision last February 21 with a combined value of P285,578,315 that was issued to the firm between 2008 and 2012.

Meanwhile, COA’s disallowance also covered five TCCs issued in September to November 2008 to PMC and five TCCs issued in June 2011 to Tciri.

In ruling on the disallowances, the SOA pointed out that the firms who were issued TCCs did not use them for their own tax obligations and merely “transferred” their TCCs to other companies.

Moreover, the COA SAO also reported that the alleged importers from which the firms supposedly purchased textile materials were also not registered and accredited with either the Board of Investments (BOI) or Bureau of Customs. The SAO added these firms either had no records of importation and payment of appropriate duties and taxes or paid only minimal duties and taxes to the BOC. The SAO said that, “in effect, none of the requirements for the grant of tax credit was present” or were “disregarded” when the TCCs were issued to these firms.

“There were no proof of payment of import taxes and duties by the suppliers; validation of actual exportation by the [OSS]; in addition to questionable physical existence [of the companies]; and, the tax credit

granted even exceeded the reported payments by the claimants to the suppliers,” the report added.

While both CRC and UKC listed their addresses in Bulacan, PMC listed its address in Valenzuela City while Tciri said its address is in Calamba, Laguna.

Ramos said the Notices of Disallowance were served to the persons liable. The SOA chief also expressed gratitude to the DOF “for the usual support and assistance [it] extended” to the COA in conducting its audit of the OSS. Several officials and employees of the DOF, BOI, BOC and OSS who were responsible for processing and approving the illegal TCCs, as well as their recipients and claimants from the four companies, were held liable

by COA in various instances when the TCCs were issued.

The COA audit disallowances not appealed within six months from the receipt of those held liable for them “shall become final and ‘executory’” as prescribed under the law.

Created under Administrative Order 266 issued in 1992 to process TCCs and duty drawback applications, the OSS is a composite body managed by the DOF, BOC, BOI and the Bureau of Internal Revenue (BIR).

Tax credits were offered as incentives under the Omnibus Investments Code (Executive Order or EO 226) to exporters and manufacturers of BOI-registered products for export that have actually paid duties and taxes on the raw materials and supplies they used.

Approved applications meant refunds on their duties and taxes that were used to pay other tax liabilities due the government.

In July 2018, the DOF reported that the COA uncovered a bigger scam, in which the OSS granted TCCs worth P11.18 billion to 33 ineligible or even non-existent textile companies from 2008 to 2014.

Of this amount, P8.85 billionworth of tax credits were granted to 29 claimants despite the absence of proof of payment of duties and taxes and the export of finished products, and of importation records with BOC. The other four claimants got TCCs worth P2.34 billion, even if their entitlement to the fiscal incentive had already expired.

Upon the receipt of the report on the P11.18-billion tax credit scam, the DOF issued Department Order 039-2018 forming a task force to investigate and run after those involved in the illegal transactions.

Bernadette D. Nicolas

PCSO misses 2019 target by P26.57B

T

By Bernadette D. Nicolas

In its 2019 year-end report, the PCSO said they generated a total of P44.028 billion last year from its Lotto, Keno, Small Town Lottery (STL), Peryahan Games, Instant Sweepstakes and Traditional Sweepstakes.

Compared to its full-year 2019 target, PCSO fell short by 37.64 percent or around P26.57 billion.

This was also a 30.74 percent-drop from the P63.567 billion it earned in 2018.

In its 2019 performance scorecard, the PCSO attributed the decline in ticket sales to several factors, including President Duterte’s order to suspend all of its games and the imposition of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (Train) law.

“The suspension of all PCSO games, mandated by no less than the President of the Philippines, for more than a month, also made a significant impact in the sales generation

of the agency. During this period, the agency lost P2.960 billion,” it said.

To recall, the President temporarily suspended all gaming activities under PCSO due to alleged massive corruption last year.

Aside from this, the PCSO said the provision of Train law, specifically on the imposition of a 20-percent final tax on winnings and another 20-percent documentary stamp tax led to the price increase, which had “detrimental effect to price-sensitive customers.”

Nonetheless, the PCSO said it has taken necessary steps to address the declining sales of their games through renaming its digit games and implementing distance restriction between Lotto and STL outlets to ensure maximum coverage of areas and allow agents to cater to as many clients as possible.

The PCSO said it also reverted the bet cost of Keno from P12 to P10 to make the Keno game more attractive to the gaming public.

The continuous operation of illegal number games also dealt a blow to sales, according to the PCSO. To

neutralize illegal gambling operations, the PCSO said it improved its collaboration with the Philippine National Police to address this issue.

In addition, the objection of local government units (LGUs) to allow STL to operate in their jurisdiction without the necessary permit issued by the concerned LGU and the occurrence of natural calamities were also cited by the PCSO as among the external factors that affected their revenue last year.

The PCSO also identified the failure to remit sales leading to termination of STL agents as one of the internal issues that led to revenue shortfall last year. The PCSO noted it has an outstanding collectible amount of P4.5 billion from delinquent and terminated STL authorized-agent corporations.

Under the amended PCSO charter, the net receipts generated from the sale of sweepstakes tickets, whether for sweepstakes races, lotteries, or other similar activities, shall be divided into prize fund (55 percent), charity fund (30 percent), and operating fund (15 percent).

BancNet seen taking on more important role in banking sector

E

lectronic banking consortium BancNet Inc. is expected to take on a more important role in the banking industry, according to its newly-elected officials.

Its newly-elected president, Cezar P. Consing, told the stockholders that BancNet’s role in the banking industry will become more important this year as consumer behavior change to adapt to the Covid-19 pandemic.

This behavior “has made hightech services much more important in what has been traditionally a high-touch industry,” according to Consing, who is also president and CEO of BPI and of the Bankers Association of the Philippines.

“BancNet is strategically positioned to be at the center of all these changes, as it keeps apace with fintech [financial technology] advancements and with the way people do their financial transactions,” Consing added.

Nestor V. Tan, newly-elected chairman of the Board of BancNet, revealed the consortium’s objectives of “ensuring that our domestic ecosystem stands on solid foundation, ensure operational efficiency through effective governance, infrastructure redundancy and flexibility to accommodate any type of emerging technology that serves this end.”

CONSING

TAN

One such technology is the cutting-edge real-time payments infrastructure that BancNet is building with Mastercard that will enable real-time transactions other than payments and fund transfers.

“It will provide us the capability to do so much more in the years ahead,” Tan, currently the president and CEO of BDO , said during their annual stockholders’ meeting held last June 30. “By tapping its capabilities, we are well poised to continue leading in the digital space.”

He added that “with digital transformation thriving domestically, the next big step for us is to pursue increased international connectiv-

ity through partnerships with our counterparts in other countries so that cross border payments and remittances can be done as simply as using instaPay.” The other elected members of the 15-man Board are RCBC President and CEO Eugene S. Acevedo, Bank of Commerce President and CEO Michaelangelo R. Aguilar, Union Bank President and CEO Edwin R. Bautista, Landbank President and CEO Cecilia C. Borromeo, CTBC Bank Senior Vice President Joseph B. Estavillo, PNB Senior Vice President Marie Fe Liza S. Jayme, UCPB President and CEO Higino O. Macadaeg Jr., East West

Customer choice comes under the microscope

I

@BNicolasBM

he Philippine Charity Sweepstakes Office (PCSO) missed its P70.6 billion revenue target for 2019 pointing to the many “internal and external setbacks” that the government-owned and -controlled corporation faced throughout the year.

Perspectives N today’s environment, customers care less about breadth of assortment and more about availability; and that could change the way many retailers operate.

Indeed, as countries moved into lockdown status and grocery store shelves emptied, many grocery retailers started exploring ways of narrowing their focus down to a decreased range of high-demand items—creating “minimum viable ranges.” In doing so, supply chain efficiency and working capital measures are increasing significantly; few customers have so far complained.

Once again, Covid-19 has accelerated a shift that had already been underway across the retail sector. For some time now, customers have had an almost unlimited selection of items online. Fancy an organic sun-dried tomato ketchup?

Or a blueberry flavored ketchup? Maybe a ketchup already mixed with mustard?

Before the upheaval, consumers could find those and hundreds of other different ketchup brands, flavors, sizes and packages with just a few taps on a smartphone.

Monday, July 6, 2020 B3

In the near future, customer expectations will once again shift. Our view suggests that only two types of retailers will likely survive: those offering a limited yet curated selection and those offering unlimited selection. Those in the middle may be the ones that struggle most.

To combat this, retailers need to improve the sophistication of their loyalty programs, moving away from traditional points-based systems to instead create integrated and unified rewards programs that allow multiple product and service offerings to be bundled together in a way that encourages consumers to dwell in their ecosystem.

Secondly, retailers need to explore a wider range of models and approaches for gathering and analyzing customer data. Integrated reward programs may be part of that solution. So, too, will participation in various platform plays.

But expect retailers to start thinking more about how they can partner with others in their customer’s ecosystem to not only deliver value and improve relevance, but also to capture greater and

richer sources of customer data.

You can also expect to see retailers increase their investments into new and emerging technologies.

Voice ordering via smart speakers, for example, is allowing innovative retailers the opportunity to deliver a more convenient on-demand ordering experience (particularly relevant in a shopping environment dictated by isolation measures). Others are exploring how blockchain might help improve the value of their loyalty programs.

Ultimately, we believe that the shift towards reduced choice will likely lead to more efficient supply chains, lower costs and better customer satisfaction.

The excerpt was taken from KPMG article, “Global Retail Trends 2020: Preparing for the New Reality.” © 2020 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

Printed in the Philippines.

For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

Bank President and CEO Antonio C. Moncupa Jr., AUB Executive Vice President Wilfredo C. Rodriguez Jr., Robinsons Bank President and CEO Elfren Antonio L. Sarte, Metrobank Executive Vice President Richard Benedict S. So, China Bank President William C. Whang and Security Bank Executive Vice President Daniel U. Yu. The Board also elected the following key officers of the company: Aristeo P. Zafra, Jr., CEO; Marie Fe Liza S. Jayme, Treasurer; Agnes H. Maranan, Corporate Secretary; and Elmarie S. Reyes, Assistant Corporate Secretary.

The Board also appointed the members of the Operations Committee, which is responsible for translating Board-defined policies into detailed operating policies and procedures. They are: Dennis C. Bancod (RCBC), Allan V. Bornas (Land Bank), Marie Carolina L. Chua (China Bank), Angelito V. Evangelista (Robinsons Bank), Marie Fe Liza S. Jayme (PNB), Randall Evangelista (UCPB), Allan Libunao (CTBC Bank), Michael Magbanua (Union Bank), Tomas Victor A. Mendoza (BDO), Wilfredo C. Rodriguez, Jr. (AUB), Noel A. Santiago (BPI), Salvador Serrano (East West Bank), Roseann T. Tan (Metrobank), Jay Velasco (Bank Of Commerce), and Daniel U. Yu (Security Bank).

Pinoys open to using biometrics to access online bank accounts

M

ost Filipinos want to incorporate biometrics in accessing their online banking account as means of strengthening data security, a survey shows.

A study by global analytics software firm FICO noted that 72 percent of the Filipinos were willing to provide biometrics to protect their login details, especially at a time when online scams are proliferating.

“It’s very important for consumers to protect themselves from online scams and fraud,” said Subhashish Bose, FICO’s lead for fraud, security and compliance in Asia Pacific.

“Filipinos recognize that usernames and passwords are old technology, with only 43 percent prepared to use them when logging into mobile banking apps. They are willing and ready to adopt additional biometrics to secure their accounts,” Bose added.

Majority or 76 percent said

that the fingerprints could be used, 40 percent chose facial scans while 23 percent went for eye scans.

In terms of login security, most of the respondents said they also use a one-time passcode via short message service.

Others mentioned fingerprint scan, one-time passcode via email, facial scan and one-time passcode generated by banksupplied device.

The study also revealed that only 53 percent of the respondents were using separate passwords to access multiple accounts. Eighteen percent has between two passwords to five passwords being used across multiple accounts, while 14 percent admitted to using only a single password in all accounts.

Moreover, only 15 percent is using an encrypted password manager while 29 percent opt to use “risky approaches to recall passwords” such as jotting them down in a notebook.

In addition, the study noted that Filipinos struggle to remember their current passwords.

Nearly a third of them said they have abandoned an online purchase while 30 percent said they were unable to check an account balance because they could not recall their login details.

“As the pandemic drives takeup of online services by consumers, criminals are preying on this reliance and targeting consumers with malicious activities such as phishing and social engineering,” Bose explained.

He said that Filipinos should be able to educate themselves and employ security measures as most of them access finances via digital platforms as lockdown measures limit movement.

Earlier, FICO noted that 76 percent of the Filipinos were open to creating an online financial account for personal loans, credit cards and daily transactions. Tyrone Jasper C. Piad

B4

Show BusinessMirror

Monday, July 6, 2020

www.businessmirror.com.ph

SB19, Blackpink soar higher than ever

Today’s Horoscope

By Eugenia Last

z

CELEBRITIES BORN ON THIS DAY: Kevin Hart, 41; Tia Mowry, 42; Tamera Mowry, 42; Sylvester Stallone, 74.

Happy Birthday: Tidy up loose ends. Make use of the time you have to assess your life and to make adjustments that will encourage you to eliminate whatever isn’t working for you. Putting more time and effort into the people and projects that make you happy will ensure you move forward with less stress and a greater appreciation for life, love and enlightenment.

Your lucky numbers are 6, 14, 21, 23, 31, 39, 42.

a

ARIES (March 21-April 19): Be cautious about how you deal with others. An emotional incident can spin out of control, making your home environment stressful. Put your energy into selfimprovement, not trying to change others. HH

D

ESPITE the challenges brought about by these troubled times, local boy band SB19 and Korean all-girl group Blackpink continue to make their presence felt.

Blackpink’s latest single “How You Like That” broke records on YouTube when it officially registered 86.3 million views in the first 24 hours of its launch.

The group’s huge fan base waited for a whole year for this much-anticipated release, and supported the girls so warmly despite the slump the worldwide entertainment industry is currently facing because of the pandemic. Moreover, a total of 1.66 million of these fanatics tuned in when the group unveiled this new song, breaking the former record set by another K-pop group, BTS, early this year.

These milestones are not surprising but certainly exceeded expectations especially since the group went on a hiatus for almost a year, taking time off to work on their album. The Korean quartet are also the most-subscribed music group artist on YouTube, with just a little less than 40 million followers who call themselves as Blinks.

The three-minute track, in both Korean and English, is the first of two songs scheduled to be released ahead of the group’s first full-length album this September. The new video is also well conceptualized: Blackpink members Lisa, Rosé, Jennie and Jisoo perform amid backdrops of an ice palace, a lush rain forest, and a domed venue with brilliantly designed horse statuettes. The fans are one in saying that the release of this single is perfectly timed, too.

In a prereleased statement for the media, Blackpink member Jisoo shared: “We wanted to give the message of not being daunted by dark situations, and to not lose the confidence and strength to stand up again.”

Blackpink was formed in Seoul, Korea, in 2016 and became one of the most popular Korean music groups to break through the international music market.

Meanwhile, on the local front, fans of the all-male boyband SB19 are so delighted that their singing idols

b

TAURUS (April 20-May 20): Come up with an idea and follow through. You can get what you want if you adapt to and use what’s available. An overdue change will turn out better than you thought possible. HHHHH

c

GEMINI (May 21-June 20): Stick to what works; if you venture too far from practical, you will end up backtracking—at a price. Be willing to do the work yourself. If you count on someone else, you will be disappointed in the results. HHH

d

CANCER (June 21-July 22): Express your feelings, discuss your position and make plans and adjustments that encourage a better relationship with those you share expenses or space with. Honesty and moderation will help bring about positive change. Live by the rules. HHH

e f

LEO (July 23-Aug. 22): Listen carefully.

Don’t feel compelled to run the show or agree to a change that doesn’t suit your needs, and you’ll find it easier to get along with others. HHH VIRGO (Aug. 23-Sept. 22): Handle financial, contractual and health issues personally.

Joint ventures will lead to a stressful situation.

Make adjustments that will put you in a better position to do things your way. Money and emotions won’t mix. You cannot buy love or trust. HHH LOCAL boyband SB19

KPOP sensation Blackpink

have been featured on the elite Forbes magazine.

The group, composed of Ken, Sejun, Stell, Justin and Josh, is grateful that their fans continue to support them, making them take the 31st post in the Billboard Emerging Artists charts.

Admitting that the band’s formation was inspired by the huge K-pop phenomenon worldwide, SB19 aims to slowly introduce P-pop (Philippine pop) to the world. Mentored, trained, and managed by Seong Han Geong’s ShowBT Philippines Corp., SB19 has only released three songs, the last of which was “Alab [Burning]” in December 2019.

During the pandemic lockdown, Sejun, one of its

members, created the original song called “Ikako: Ikaw at Ako [You and Me],” which he said is a song of hope that the group would like to dedicate to every one experiencing challenges in these extraordinary times. The members consider the recent feature on Forbes magazine as a big step in introducing them to a bigger market, a chance to showcase the talent of the Filipino artist to the world.

Music is powerful—it inspires, ignites, heals, calms, brings people together and allows our faith to soar higher. At a time when we contemplate on what we can live without, we realize that music is certainly not one of them. n

Actor says ‘Justice League’ director Whedon was ‘abusive’ RAY FISHER

LOS ANGELES—Actor Ray Fisher says director Joss Whedon’s behavior was “abusive” on the set of the 2017 film Justice League.

“Joss Wheadon’s on-set treatment of the cast and crew of Justice League was gross, abusive, unprofessional, and completely unacceptable,” Fisher, who played the young superhero Cyborg in the DC Comics film, tweeted on Wednesday. Fisher added that Whedon was “enabled, in many ways, by Geoff Johns and Jon Berg,” two producers on the film who were executives running DC Films for Warner Bros. Pictures at the time.

Whedon has not responded to Fisher on social media, and e-mails from The Associated Press to representatives seeking comment from him and from Warner Bros. were not immediately returned.

Berg told Variety that it was “categorically untrue that we enabled any unprofessional behavior.”

Whedon, known for his writing and directing on

Marvel’s Avengers films and television’s Buffy the Vampire Slayer, was brought in during post-production to replace director Zack Snyder on Justice League. He oversaw extensive reshoots, editing and visual effects on the film.

At the time of his departure, Warner Bros. said Snyder was stepping away to be with his family following the death of his 20-year-old daughter.

In May, Warner Bros. announced that Snyder’s long director’s cut of Justice League would appear next year on the streaming service HBO Max, something fans had lobbied for since the film’s original release with the hashtag ReleaseTheSnyderCut. Fisher showed a sign of his displeasure with Whedon earlier this week when he tweeted a video of himself praising the director as a “great guy” during a panel at San Diego Comic-Con in 2017, with the comment, “I’d like to take a moment to forcefully retract every bit of this statement.” AP

g

LIBRA (Sept. 23-Oct. 22): Speed things up in order to finish what you start. Don’t give anyone a reason to complain or a chance to put demands on you or your time. Reward yourself with something that lifts your spirits or enhances the way you look. HHHHH

h

SCORPIO (Oct. 23-Nov. 21): Someone you least expect will point you in the direction of an opportunity. Check it out, and verify the cost involved before you sign up. An unexpected offer will have guidelines you will have to fulfill before you receive any assets or possessions. HH

i

SAGITTARIUS (Nov. 22-Dec. 21): Keep up with the times. A virtual reunion with old friends will pique your interest. Physical improvements will boost your ego and put you in the right frame of mind to face the past. Romance is on the rise. HHHH

j

CAPRICORN (Dec. 22-Jan. 19): Feel out a situation at home before you begin to make adjustments to the way you live. Someone may not be as eager to make the changes you want to implement. Charm, along with an incentive, will work better than harsh words. HHH

k

AQUARIUS (Jan. 20-Feb. 18): Make changes to the way you live, how you look and the people you associate with, and you will feel better about who you are and what you do.

Don’t follow someone if it isn’t what you want. HHH

l

PISCES (Feb. 19-March 20): Consider the trends, and you’ll discover how to turn a negative into a positive. Look for something that your community is in dire need of, and find a way to offer it for a fair price. Use your imagination. HHH Birthday Baby: You are astute, disciplined and strong-willed.

You are insightful and retentive.

‘heap praises on’ by emily carroll The Universal Crossword/Edited by David Steinberg

ACROSS 1 Collector’s items?

6 Attempt, metaphorically 10 Palindromic Swedish group 14 Elite group of celebrities 15 Pacific predator 16 Very, in Versailles 17 Ravi Shankar’s instrument 18 Signaled 19 Cones’ counterparts 20 Nickname for a royal electronics whiz?

23 Red-beet connection 25 Video stream 26 See the light, perhaps?

27 Refrain from 29 Suffix for meth- or prop 30 Summer hrs. in Somerville 31 “Como ___ usted?”

32 Damaged, as a fender 35 Homes with old laundry devices?

41 Relative of Bumble 42 Add to the payroll 43 Commit perjury 46 Grammy winner Lil ___ X

47 Adjective on many Whole Foods labels 50 Wearing tattered clothes 52 Third child in the Jackson family 53 Comprehend 54 Status for a road that’s on fire?

57 Drag queens’ neckwear 58 Minuscule amount 59 Devices that once had click wheels 62 “I’m ___ your tricks!”

63 Show appreciation for a concert 64 Start of a choosing rhyme 65 Half-moon tide 66 Brown seaweed 67 Kingly DOWN 1 Courtroom figs.

2 Yalie 3 Cameos and such 4 Ivan the Terrible, for one 5 Conflict 6 Fathers who attend all their kids’ games, say 7 Aligned 8 Top-notch pitchers

9 2003 film about a Christmas Eve con 10 Heart chambers 11 Shields of Suddenly Susan 12 Lay somewhere to sleep, with “down” 13 Give the nod 21 Teachers’ grp.

22 Not-so-popular sort 23 Three or four 24 Cubs legend Sammy 28 Chiang Mai currency 29 Download for a Galaxy 33 Poet’s “previously” 34 Middle Eastern capital where Al Jazeera is based 36 Watch a whole season in one sitting, e.g.

37 Like some fair fare 38 Delivery notice?

39 Buffalo’s lake 40 Religious offshoot 43 Westernmost capital on the European mainland 44 Chant 45 List of mistakes

48 I-95, e.g.

49 More deserving of an R rating, perhaps 51 The Fox and the Grapes fable writer 52 Add up 55 ___ Haan 56 Dueling blade 60 One of 31 in julio 61 Salt for Marie Antoinette Solution to Friday’s puzzle:

Style

BusinessMirror

www.businessmirror.com.ph

Monday, July 6, 2020

Men’s makeup goes mainstream in the US

BY GERALD PO�TE� JR. | Bloomberg News

M

LACOSTE SHOWS COMMITMENT TO PRINTLINERS

FAMED French brand Lacoste presents the “L12.12 Polo Merci,” a limited-edition solidarity product whereby turnover will be donated to international partner associations that have worked in this health crisis thanks to the unfailing commitment of their volunteers.

Since December 2019, the world has been confronted with the Covid-19 epidemic, which is accompanied by an unprecedented social and economic crisis. Louise Trotter, creative director of Lacoste since 2019, has designed an exclusive limitededition polo called the L12.12 Polo Merci. Faced with the importance to take action and support the crisis, this product shows the brand’s commitment to the volunteers throughout the crisis.

Historically the Lacoste polo has always located its crocodile in place of the heart, a symbolic reference to Lacoste’s values. In a mark of solidarity, the brand is embroidering a heart around its iconic emblem.

The turnover from each sale of this L12.12 Polo Merci will be donated in full to the Lacoste Fund, which will support the actions of the International Federation of Red Cross and Red Crescent around the world.

“The ‘L12.12 Polo Merci’ is in line with the brand’s continued commitment in this unprecedented health crisis. This solidarity action illustrates how fashion can, at its own level, act in solidarity to serve the most exposed people,” said Thierry Guibert, Lacoste CEO. The polo retails at €130 or P7,250, and available only in the brand’s Metro Manila stores (Alabang Town Center, Greenbelt 5, Solaire, SM Megamall, Ayala Malls TriNoma) and lacoste.com.ph.

EN’S makeup is going mainstream in America. CVS, the country’s largest drugstore chain, is making the biggest bet on the category in the US yet, by adding a cosmetics line from Stryx, a brand launched last year, to 2,000 stores (about a quarter of its total).

The retailer is giving more legitimacy to a small, but growing, group of products that had mainly been sold through high-end stores.

With this move, CVS likely has potential customers such as Max Belovol in mind. The 23-yearold grew up wearing dazzling eyeshadows and foundation for figure-skating competitions, but didn’t become truly comfortable with wearing makeup during work until the coronavirus lockdown.

“It’s a Zoom effect,” said Belovol, a law student based in Atlanta, who prefers concealer and its subtle look. “People don’t have to worry about how they look at work. You can paint your nails, and nobody on the Zoom call is going to know.”

Belovol is part of a growing shift—about one third of US men under 45 said they would consider trying makeup, according to a survey by Morning Consult in September. Chalk it up to quarantine boldness, like Belovol, and the continued evolution of traditional masculinity that has already created a $9.3 billion US men’s grooming and skin-care market.

“It’s simple for cosmetics—men are a growth industry,” said Ben Parr, co-founder of marketing firm Octane AI, who points to the millennial generation’s embrace of men wearing makeup as a major catalyst.

“You’re seeing that impact starting now.”

Getting into a nationwide chain marks a quick ascent for Manhattan-based Stryx. Just three years ago, 25-year-old Devir Kahan woke up on his wedding day with a pimple and couldn’t find a quick fix.

The episode convinced him that he’d discovered an underserved market—guys looking for a product to make their skin look better, especially during a breakout. Kahan cofounded Stryx in 2017 and has raised about $1 million from investors, including venture firm XRC Labs. Now its concealer tool ($19.99) and a new gel cleanser ($11.99) will be in CVS locations alongside shaving cream and razors. It’s the “ultimate validation,” said Kahan, also chief executive officer of Stryx, and will help normalize a stigmatized practice that’s flown under the radar for years.

“It’s not about a full face of makeup or color,” Kahan said. “We’re talking about improving blemishes, fixing up under-eye bags, a zit—all these sorts of things.” For decades, men’s grooming in the US equated to having a tight shave free of cuts and razor bumps, a practice that revolved around just two products: shaving cream and after-shave from giant brands, like Gillette and Old Spice. That Mad Menera mentality began fading at the turn of the century when more men embraced fashion and skin care. The term metrosexual went mainstream.

In response, brands introduced a broader array of products, spanning wrinkle creams, moisturizers and hair serum. The market has grown about 13 percent over the past five years. However, revenue is projected to decline by 1 percent in 2020 due to softer razor sales as beards remain popular, according to Euromonitor International.

In the US, where male ruggedness is part of the country’s DNA, online search data shows a surging interest around men’s cosmetics. Queries for “male makeup looks” jumping almost 80 percent in April compared to about about a year ago, according to data from market analytics firm Moz. Other top requests include “covering redness,” “hiding acne” and “hiding bags under eyes.” America appears to be catching up to other countries, like Japan, where there are fewer taboos around men wearing makeup.

Makeup is a “natural extension” of men enhancing their beauty regimens over the past two decades, according to Parr, the marketing executive. It’s also bound to gain popularity, as society continues moving away from gender norms, he said. “Men’s grooming has seen incredible growth during this stay-at-home period,” CVS said in a statement. Adding Stryx is part of a strategy to go after that market by bringing in more emerging brands that focus on guys. “Men are a top customer focus at CVS Beauty.”

Even though Stryx is pitching a product traditionally made for women, its presentation is

stereotypical male. The packaging is black, grey and dark blue. The concealer tool is pitched as sleek and discreet and could be easily be mistaken for a black pen, clip included. A photo on Stryx’s web site rests the makeup on a wooden desk, next to a leatherbound notebook and rocks glass half-filled with booze. A slogan reads: “Handsome made easy.”

“We didn’t just take a women’s product and slap a ‘For Men’ label on it,” Stryx says on its web site. “Our products are meticulously formulated for male skin.”

Formen, a men’s cosmetics company founded in 2010, uses an antlered deer head—like you’d find stuffed on a wall—as its logo. A fluid foundation comes in a black vile shaped like a skull. The brand, found mostly in Canada, also promises discreteness, and touts the sturdiness of its concealer’s heavy weight aluminum container.

Axel Getz, a 24-year-old environmental consultant, became a makeup convert last year after a beauty-store clerk convinced him to try a tinted moisturizer from a women’s line. His skin turned “angelic,” the New York resident said, and a day later friends complimented his appearance without a single mention of the makeup.

“A lot of guys just never give themselves the chance, and that goes for men of all sexualities,” said Getz, who had that same hesitancy until he tried that tinted moisturizer. “From that point on, I was like: ‘Oh damn, I’m sold on this.’” ■

Use acids on your face responsibly by following instructions

IF you’re still working from home, this is the best time to embark on a skin-care routine, if you don’t have one yet. I am always asked what my routine is.

For day, I cleanse using Simple Moisturizing Facial Wash (this changes depending what is available).

After that, I apply Estee Lauder Micro Essence Skin Activating Treatment Lotion. This is not a toner but a pre-serum that would help your skin absorb products better. I don’t use a cotton round to apply this. I just pour on my fingers and pat it gently on my face, neck and chest area.

I let the Estee Lauder Micro Essence dry and after a few minutes, I spray on the Shiseido Ultimune Defence Refresh Mist. This is a new product that I’ve been using only for a few days. It’s the spray mist form of Shiseido’s best-selling Ultimune Power Infusing Concentrate. I apply Cetaphil Sun Light Gel SPF 50+ as my last step. Whenever I am asked what my skin-care secret is, I always say that it’s sunscreen. Sunscreen is the most important step of any skin-care regimen.

You should wear sunscreen to avoid premature aging and the potential risk of skin cancer.

For nighttime, it’s almost the same base routine except that I also use micellar water and remove the Ultimune mist and sunscreen. After cleansing, I apply

the Estee Lauder Micro Essence and follow that with the NIOD Multi-Molecular Hyaluronic Complex MMHC2. I follow this with the Shiseido Ultimune Power Infusing Concentrate on my face, neck and chest and The Ordinary Argireline Solution 10 percent under my eyes, between my eyebrows and all the other areas on my face.

Thrice a week, I apply The Ordinary Alpha Lipoic Acid 5 percent as my last step. Once a week, I use The Ordinary AHA 30 percent + BHA 2 percent Peeling Solution. Please note that I am a

longtime acid user. This thing is very potent.

Use only if you will follow instructions and not fall asleep or forget about it. You apply this evenly across your face and neck with your fingers, avoiding the eye area. Leave on for no more than 10 minutes and then rinse thoroughly. I normally clean my face before applying this so I just rinse after and just apply La Mer Moisturizing Cream.

I’ve been using acids since the 1990s. I was also a

longtime Tretinoin user. The peeling products in the 1990s were quite harsh. I remember using Airol, then a topical Tretinoin in liquid form. If my memory serves me right, you were supposed to apply Airol every night for two weeks (it was very painful, by the way) and wait for your skin to start peeling. The whole experience was painful and uncomfortable but the effect was worth it. I would call using The Ordinary AHA 30 percent + BHA 2 percent Peeling Solution a better experience. This mask, by the way, is the bloodlike product that has gone viral on Instagram.

As the Deciem web site explains it, “Alpha hydroxy acids [AHA] exfoliate the skin’s topmost surface for a brighter and more even appearance. Beta hydroxy acids [BHA] also exfoliate the skin with an extended function to help clear pore congestion. This combined 32 percent AHA/BHA solution offers deeper exfoliation to help fight visible blemishes and for improved skin radiance. The formula also improves the appearance of skin texture and reduces the look of fine lines with continued use.”

My friend Rae (she is also a longtime acid user) applies The Ordinary AHA 30 percent + BHA 2 percent Peeling Solution on her face for a few minutes everyday and she told me that her skin looks so good that her husband thought she was wearing foundation. I’ve been using it for a while now and my skin has never looked better. Maybe it has but I don’t remember. Just remember: If you’re not familiar with acids, don’t use this. You are better off getting a chemical peel from your dermatologist.

Used properly, The Ordinary AHA 30 percent + BHA 2 percent Peeling Solution will get rid of dead skin cells and other stuff that cause clogged pores.

Also, don’t apply this product the Instagram way (directly from the dropper onto your face). Put a few drops on your palm and apply over the face.

B5

B6 Monday, July 6, 2020

‘Discover Home’ at Las Casas Filipinas de Acuzar

Cru Steakhouse reopens for dine-in

Casa San Juan and Casa Balayan II

A

Indulge again in hand-cut and carefully prepared steak as Cru Steakhouse is now open for dine-in starting July 4

C

RU Steakhouse is bringing back the fine to your dining as it opens their doors again for dine-in—and they’ve got more than premium steak to feast on!

Indulge in Certified Angus and Wagyu steaks hand-cut, carefully prepared, and cooked to perfection starting July 4— and while your Cru favorites remain, the restaurant is adding plump and robust French Legris oysters to the menu this whole month of July only.

Guided by the brand’s strong Commitment to Clean and with strict compliance to government protocols, Marriott Hotel Manila’s steak restaurant Cru Steakhouse is ready to welcome guests again. Feel the assurance of safety from the moment you step in the restaurant with fit to work and ServSafe® certified chefs and servers in face shields and masks to welcome you and bring your favorite dishes.

Make your selection conveniently through QR code-enabled menu presentations.

Dining with a companion? Enjoy quality time with those who you missed while practicing distancing. Food is served

through Russian style service where servers bring food straight from the kitchen to the table and served by portion to guests. Sneeze guards are placed and hand sanitizing wipes are readily available on every table for a more enjoyable dining experience.

Accomplished health declaration form and prior reservation is required as limited number of guests are only allowed to dine-in. Floor markers are visible to ensure social distancing. Disinfection of all tables and chairs between customers are strictly observed, and check settlement also remains contactless through tap and pay wireless EDC machines—which are frequently sanitized—and online payment methods via Paymaya, WeChat Pay, and Alipay are available.

While Cru patrons might be excited to indulge again on the signature grills, the restaurant is serving another premium offering other than steak —Legris oysters meticulously farmed at the river mouth of the Aber Wrac’h estuary of the Lilia archipelago in France are served fresh in plates of six for P988 nett and 12 for

P1,888 nett. Savor the robust flavor and aroma of oyster along with lime or lemon, mignonette sauce, cocktail sauce, and horseradish sauce. Club Marriott members also get to enjoy free two pieces of classic oysters Rockefeller when dining in at Cru Steakhouse from July 4 and 5, 2020 only.

Cru Steakhouse is open daily starting July 4, 2020 from 5PM to 9PM and is located at the main hotel of Manila Marriott. Inspection points with hand sanitizers, foot bath, and thermal scanning are placed upon entering of the property. A one-way system for entry and exit will also be implemented.

Select Cru Steakhouse offers and more Marriott favorites are available for takeaway, pick-up, and delivery via Delishvery, Foodpanda, and soon on Pickaroo. For orders, reservations, and inquiries about Manila Marriott’s latest offers, call 0917 659 5420 or visit the hotel’s website www.manilamarriott.com, and social media accounts in FB, IG, and Twitter @ ManilaMarriott. Be updated and join their Viber Community at Make it Marriott.

S the quarantine measures began to ease down and the world slowly adjusts to new travel norms, Las Casas Filipinas de Acuzar launched their newest offer titled “Discover Home.”

A component of their recently-launched “Secured Stays at Las Casas,” an initiative that aims to bring back guests’ confidence in hotel stays with their stringent safety protocols, said new offer is specifically crafted to inspire travelers to help in jumpstarting local tourism post-COVID19.

Valid from July to December 2020, “Discover Home” gives guest the chance to explore the country’s untold stories as represented by over 70 restored SpanishFilipino houses perfectly nesting inside the heritage site well-complemented by an accommodation in one of its premier casas.

Guests may choose from its luxurious houses depending on the capacity. Choices include Casa Byzantina, good for 14 persons

and the most lucrative house inside Las Casas, Casa Balanga for four, Casa Irosin for eight, Casa Terraza for two, Casa Gapan for 10, among others.

More so, be at home and totally at ease with Las Casas 24-hour Butler Service providing impeccable commitment to assuring unforgettable and safe stays.

Aside from their personal butler, guests can also enjoy full-board meals (breakfast, lunch and dinner), private use of yacht, cocktails, Heritage Walking Tour, Hotel de Oriente Access, Calesa Ride, access to semiprivate swimming pool, beach area, and more.

This offer is also open to guests who opt to stay longer – up to one month.

To know more about “Discover Home” and other related updates, visit www. lascasasfilipinas.com or follow Las Casas Filipinas de Acuzar on Facebook and Instagram.

In tune with today’s virtual shift: J. Romero announces “Work-From-Anywhere Forever”system

HKTB hosts World’s First Global Online Forum on post-pandemic travel

T

HE Hong Kong Tourism Board (HKTB) hosted an online forum on 24 June, titled “Beyond COVID-19: Global Tourism’s New Normal” – the first event of its kind focusing on the postpandemic tourism prospects for Hong Kong, Mainland, Asia, and the world.

Over 4,000 tourism industry representatives, journalists, and academics registered for the event as global industry leaders share insights into the effects of the coronavirus outbreak on travel, how the industry should respond, and the trends to expect as people begin travelling again in the post-pandemic period.

In his opening remarks, HKTB Chairman Dr. YK Pang emphasized the importance of restoring consumer confidence. “As an industry, our central mission must be to give every traveller the confidence and reassurance that their trip is safe from start to finish,” he said. “Our cooperation must cross geographical and business boundaries.

We must pool our knowledge and expertise and draw on our collective ingenuity to navigate the challenges that lie ahead of us.”

Dr. Pang announced that the HKTB would team up with the HKSAR Government and trade partners to create “Open House Hong Kong” – a unique and region-leading travel platform to tell the world Hong Kong is a COVID-safe destination ready to welcome back visitors with attractive offerings and exciting experiences. He invited trade partners from around the world to support the platform by providing enticing offers for travelling to Hong Kong as a leading destination for visitors from every continent.

Seven internationally-respected speakers gave their insights into the challenges confronting the industry. Here is a selection of their expert observations: Steve Saxon, Partner, McKinsey & Company: “COVID-19 is a major humanitarian challenge.

Yet there are implications for the wider economy and businesses. For instance, USD 0.9 trillion to 1.2 trillion has been lost in export revenues from tourism worldwide. While global tourism may return to previous levels in 2022, China, Indonesia, and the US stand out in optimism, with travel in China coming back to around half of the previous levels currently. However, traveller confidence is still low, and recovery is slower than expected.

On the other hand, there is a major opportunity to capitalise on domestic travel and younger and family travellers, as most consumers are expecting to travel less – especially internationally – after COVID-19. China, the UK, and Germany are among those with greatest potential in domestic travel.”

Hermione Joye, Sector Lead, Travel & Vertical Search APAC, Google: “COVID-19 has led to a generational shift in the way the world operates, the travel industry almost came to a halt with global interest in travel dropping 3 times of that of pre-COVID times (based on search data). As a result, there is no longer a predictable normal when it comes to how consumers behave, and this is particularly true when it comes to the way they are thinking about travel. I am looking forward to sharing trends, consumer insights and principles that could help marketers respond in the ‘new normal’.”

Jane Sun, CEO, Trip.com Group: “At Trip.com Group, we believe it is our duty to guide travellers and the industry through this challenging period.

That’s why from the onset of the pandemic, our teams have worked tirelessly to process over RMB 30 billion in cancellations, and we’ve given our partners over RMB 1 billion in financial support.

Now, as things come under control, we’re seeing a rebound in demand, we’ve launched a USD 500 million fund for partners, and we’re offering flexible, safe, and discounted travel options for customers – to help our customers and the industry ‘travel on’.”

Gloria Guevara, President & CEO, World Travel & Tourism Council (WTTC): “The COVID-19 pandemic has had a devastating global socioeconomic impact, our recent research shows that more than 197 million jobs are at risk, which would cause a loss of more than USD 5.5 trillion to Travel & Tourism GDP worldwide. It is vital for the survival of the Travel & Tourism sector that we work together and map out the road to recovery, through coordinated actions, and rebuild the confidence that people need to begin travelling once again.

Our recently launched ‘Safe Travels’ stamp will enable travellers to recognise the businesses and destinations worldwide which have implemented the WTTC global protocols and will encourage the return of ‘Safe Travels’ around the world. It will, in turn, enable the Travel & Tourism sector to reopen

for business and move in a coordinated approach.”

Alexandre de Juniac, Director General and CEO, International Air Transport Association (IATA): “The revival of the travel and tourism sector is vital.

Millions of livelihoods depend on it. As some parts of the world begin to reopen their economies, I have no doubt that people will still want to travel.

But adapting to the realities of COVID-19 and rebuilding people’s confidence is a challenge that must be met head-on with cooperation. Aviation is a case in point. The International Civil Aviation Organization (ICAO) developed global guidelines to mitigate the risk COVID-19 transmission when traveling by air. Now governments need to align in leading the implementation with the full support of the industry. We will only be successful by working together.”

Peter C. Borer, COO, the Hong Kong and Shanghai Hotels Ltd.: “The hospitality industry will move forward towards a ‘new normal’, with unprecedented health and safety measures in place. As leaders of the industry, we must collaborate, leave behind the paradigms of the past and look towards a new future. The hotel industry was already moving towards digitisation, artificial intelligence and robotics, and the health crisis has accelerated this trend. In the short term, we must regain the confidence and the trust of our guests and reassure them that they are safe when they stay with us. However, in the long term, the fundamentals of hospitality will not change, and guests will always appreciate personalised service.”

Kai Hattendorf, Managing Director & CEO, The Global Association of the Exhibition Industry (UFI): “Exhibitions and business events are the market places and the meeting places for every industry around the world. They are key to any economic recovery, and we have the know-how and standards to make them safe to attend.

COVID-19 will lead to new procedures, standards, and processes. The pandemic is accelerating trends that were already shaping up around the ‘marriage’ of the on-site event with online services before, during, and after the event. Business events will become more digital. But the main element that is driving success is and remains the direct exchange, the face-to-face meeting. Clicks don’t discuss deals, and eyeballs don’t sign orders.”

A

S economies begin to reopen and quarantine rules ease, physical offices across the globe are welcoming workers with heightened health checks, sanitation processes, and safety protocols. Yet, the all-Filipino advertising agency, J. Romero, is going against the grain with its announcement of keeping its work-from-home setup—permanently.

Sixty-One Years of Big Moves, J. Romero is anchored on an industry experience that has borne witness to events that have rocked the country and the world, such as the ASEAN formation, the Philippine martial law era, people power revolutions, some of the first local program broadcasts and publication issues, the country’s first connection to the Internet, the Asian Financial Crisis, and the birth of the Asian and Philippine Advertising Congresses, to recount several. Amid this list, J. Romero was able to mold and remold its structure to keep up with the times and effectively grow brands with long-standing relationships— Ortigas & Company for 14 years, Shakey’s for 18, Nestea for 19, Fortune Tobacco for 24, Eskinol for 35, and Dunkin’ for 27 years and counting.

This signature resilience is what J. Romero has decided to use in navigating through the reshuffled landscape left by the mighty coronavirus pandemic.

“In Stride With Your Brilliance” To mark its 61st anniversary this July 1, 2020, J. Romero will officially make the shift to go 100% virtual and actualize the essence of its new credo, “In Stride With Your Brilliance”, in today’s battleground.

This is the agency’s commitment to keep synchronicity at the core of partnerships, whether with clients, suppliers, or colleagues, so that every piece of work completed together is

directed, purposeful, malleable—hard requirements in these muddled times.

Taking the virtual leap is key to matching one’s genius, wherein internal productivity is optimized, operational costs are reduced, and growth mindsets are expanded. These are a few of the strategic advantages that J. Romero has unlocked during its forced three-month test run of the work-from-home setup.

All Together Now! Contrary to the observed, cold downsides of remote work, J. Romero has formed more solid bonds than ever, more unfiltered, more honest, thanks to the clear technologies that let everyone stay in close contact. And although company culture, the spirit of collaboration, and cohesion in general have been easy to keep intact, teams will still be able to come together occasionally, once safe, in the agency’s virtual office address in 6750 Ayala Avenue.

Further strengthening its virtual structure, J. Romero has upgraded its tools, issued connectivity allowances, and set productivity and security measures. To balance it all? The agency will continue to put high value on work ethics— training its team members to keep pure both work time and leisure time. Discipline is pivotal especially for Account Managers extending their skill sets as Strategists and Producers, Internal Media Directors handling research, and Senior Creatives like 2020 AdAge Young Creatives Cover Winner, Miguel Bade, delving into photography and directing.

From home or from anywhere within the same time zone with an internet connection, J. Romero is looking forward to staying in tune with its partners in a digitally literate, location-independent, future-forward world.

Marketing BusinessMirror

www.businessmirror.com.ph

Monday, July 6, 2020 B7

Do you still know your consumers?

First of two parts

By Abigail L. Ho -Torres

A

WWW.FREEPIK.COM

PR Matters

NY good public relations campaig n has a clearly drawn up stakeholder map.

After all, how can you craft appropriate messages when you do not know anything about your audience? But let’s face it—we are now navigating uncharted waters, and what we think we know about our consumers may no longer be valid.

Think about your own situation. You are probably not the same person you were merely 100 days ago, when the country was first placed on quarantine to slow the spread of Covid-19. If you are like me, you are probably still working from home and going out only when absolutely necessary. Even if you used to shun e-commerce and digital payment platforms, you may have probably started ordering food and other necessities online in the past three months, paying for those goods via e-wallets or online banking accounts.

This pandemic has forced us to change our habits, and may have even altered our priorities, motivations and aspirations. The same is true for the rest of the world, including our own customers and other stakeholders.

Swiftly changing sentiments

In a joint study titled, “Consumer Moods: A Report on Consumer Disposition and Sentiments Amid ECQ and Covid-19,” FastForwardMR and Good Thinking noted that 37 percent of Filipinos described their pre-Covid-19 lives as better than the year before, while 24 percent said they were worse off. The study ran in two waves: from March 2430 and from March 31 to April 3, the second and third weeks of the enhanced community quarantine (ECQ).

Age and socioeconomic class played a role in how respondents viewed their situations. Younger people, or those from Generation Z, and those from the higher income brackets felt that they were better off during the survey period than in the previous year.

Generation Y respondents had the bleakest outlook, with the majority saying their quality of life had deteriorated from the year before.

Asked about their life during ECQ, 77 percent of the respondents said they were managing the situation, while 20 percent said they

AWARDS: NESPRESSO TALENTS ANNOUNCES PHILIPPINES’S TOP 10 FINALISTS, PARTNERING WITH FDCP AND DLSU-CSB

MANILA, PHILIPPINES—Amid recent events that faced the world with many uncertainties, creativity proved to be a resilient gift that always flourishes.

This year, Nespresso Talents continued pushing the boundaries in filmmaking through its vertical format challenge.

Launched in February, the theme “Virtuous Circles” challenged aspiring filmmakers to tell stories of how one good deed can be a catalyst for greater things to benefit the world.

The theme proved to be more relevant than ever as the pandemic intensified the world’s need for inspiration, solidarity, and meaningful storytelling.

On its fifth run globally, the Philippines is the only Southeast Asian country that joined this year’s Nespresso Talents. The competition

were struggling to cope with what’s happening. While the average number of positive responses was the same at 77 percent for both survey runs, there was a marked increase in negative sentiments from Wave 1 (ECQ week 2) and Wave 2 (ECQ week 3). In the span of a week, from 17 percent of respondents saying they were somewhat struggling to cope, this number jumped to 22 percent, with 9 percent saying they were struggling very much.

As reflected in the survey results, significant sentiment changes, especially in a crisis situation such as this, can occur in a matter of days. So just imagine how different consumer sentiments were a year ago, when Covid-19 was unheard-of.

Causes of anxiety

Among those who said they were not managing very well, the primary pain points they identified were their finances, due mainly to their inability to work, and

welcomed both budding and expert filmmakers which consequently generated a total of 83 entries. As the competition draws to a close, meet Nespresso Talents’ top 10 finalists who showcased stories of challenging realities and the inherent resilience among Filipinos.

Gallaga (filmmaker / screenwriter / film educator) and Visualization by Carlo Catu (award-winning film director). The workshop was attended by students from various universities, film enthusiasts, aspiring film makers, and industry practitioners.

Cultivating the art of filmmaking

n Jemma by Chloe Villavelez— A deaf woman learns how to paint despite the communication barrier between herself and the art studio staff. n Tsinelas by Charlene Tupas— Despite differing backgrounds and personal challenges, two boys meet and one of them offers help that creates an impact in the other boy’s life. n My Brother by Massah GonzalesGamboa—A heartwarming story that narrates a boy’s admiration for his older brother, who continues to be his role model. n Ilaw by Andrei Fonseca—A mother finds inspiration in her children amidst the darkness of life’s daily struggles. n The Challenges of Doing Good by Gary Georgec—A chronicle about a man’s father who pursued to commit one act of good every day.

Storytelling is a part of Nespresso’s brand DNA. With this project, the brand offered a global platform for Filipino storytellers to showcase their ingenuity and passion.

A partnership that is as perfect as a cup of freshly brewed coffee, Nespresso Philippines sought the support of the Film Development Council of the Philippines (FDCP) to reach out to the community of storytellers and filmmakers. It also partnered with Manila’s top film school, De La Salle-College of Saint Benilde, to bring awareness to the competition by hosting a one-day free workshop conducted by some of CSB’s academe. The workshop covered the following categories: Storytelling by Tito Valiente (film educator / film critic), Critiquing by Wanggo

The Top 10 Finalists

mobility or transport, with many saying they had to walk long distances just to buy essential items. The need for work-related adjustments, lack of social interactions, and health-related safety concerns rounded up their top 5 sources of anxiety.

The first run (March 27-30) of the Covid-19 Barometer study by global insights and consultancy firm Kantar showed similar results, with 83 percent of respondents expressing the need to be more proactive in their financial planning and more than half believing this pandemic will have a long-term economic impact.

Another study, this time conducted from May 11-14 and May 16-20, showed drastic changes in consumers’ main sources of worry. According to the “PhilCare CQ Wellness Study: Filipinos and the New Normal,” while Filipinos still worried about their finances two months into the quarantine period, they had become more concerned

n Sama-sama by Roman Marcus Abad—A heartwarming animation depicting a rabbit and a turtle’s journey to watch a hot air balloon festival. n Imong Anihon Imong Gitanom

by Breech Asher Harani—A reflection on nature as one of the most overlooked catalysts for change. n Dreamers by Ej Gagui—An aspiring filmmaker partners with two hopeful actors from the Aeta community to pursue their dreams with the help of each other. n Padayon by Clanch Dayve Belleza—A story of a man who struggles to provide for his sick mother but learns to keep going through the process. n Cheat Day by Ramil Lantican— A teacher finds herself in a ruckus when her students execute a secret surprise.

Celebrating talents

Out of the 10 entries, the local jury will choose the top 3 films which will be announced on July 9. The winning filmmakers will receive the following cash prizes: €1,500 for the first prize, €1,000 for the second prize, and €500 for the third prize. All three will also

about their health, as well as the pandemic itself.

Topping their list of worries was the possibility of a second wave of infections, followed closely by their fear of getting Covid-19 and other types of illnesses. Hearing about the number of positive cases also caused them anxiety. Finances came in at only No. 5 on the list.

Evolving behaviors, habits and needs

The PhilCare CQ Wellness Study also showed how consumer habits and activities evolved while people were in quarantine. More than three quarters of the respondents said they prayed and engaged in spiritual activities more frequently than they did before the pandemic struck.

Respondents also reported watching more free TV, spending longer hours online, learning new things, doing mental exercises like meditation, engaging in hobbies, doing physical exercises, reading,

be given a trophy and a Nespresso coffee machine with capsules.

Nespresso Philippines formed a bona fide set of jury consisting of producer, director, TV Host, writer, and professor, Joey Reyes; filmmaker, director, and scriptwriter, Antoinette Jadaone; TV & events host and World Wide Fund for Nature & World Vision ambassador, Marc Nelson; Nespresso Asia Regional Business Development Manager, Fabio de Gregorio; and Novateur Coffee Concepts Managing Director, Patrick Pesengco. All five jurors can attest that the selection process was nothing less than inspiring. Seeing how much talent and creativity is out there, and how much potential lies in Filipino filmmakers truly encouraged the group, and validated the significance of the project.

“The 10 finalists really earned their spot. They communicated the theme well and I feel very hopeful for the next generations of filmmakers.

Congratulations to all of them,” says Jadaone.

The same sentiments were shared

by Reyes, who further elaborated on his optimism toward the project: “Nespresso Talents is a great opportu-

and playing online games—likely to fill the void left by activities done outside the home and with other people. Working from home also figured in their quarantine activity list—something that may not have been possible for many employees if we were in more normal times.

What people did less of during the quarantine period were vices like smoking and drinking. This could be attributed to having a cash-scarce mindset, forcing people to focus more on the essentials, as well as the imposition of a liquor ban while under ECQ. This back-to-basics mindset was also reflected in the results of the Consumer Moods study. Asked about the first things they will do upon lifting of the ECQ, more than half of the respondents said they would visit or meet loved ones, go to church and pray, and go to work.

Close to 40 percent said they would continue their quarantine habits of social distancing and frequent handwashing, as well as attend to their finances, particularly the payment of bills and saving for the future. Around a third of the respondents said they would pick up where they left off, and buy necessities such as food, groceries, and medicine.

Other than basic grocery food and medicine, which topped the list of the first things they will buy after the ECQ, respondents also said they would spend on personal care products, fresh and frozen food, bills payments, and household care products, in that order.

As PR and marketing professionals, how can we best respond to these pandemic-induced changes?

(To be continued) PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Abigail L. Ho-Torres is AVP and Head of Advocacy and Marketing of Maynilad Water Services Inc. She spent more than a decade as a business journalist before making the leap to the corporate world.

We are devoting a special column each month to answer our readers’ questions about public relations.

Please send your questions or comments to askipraphil@gmail.com.

nity for aspiring filmmakers because it makes them think out of the box.

The virtuous circles theme and the vertical format medium motivated young filmmakers to sharpen their creativity, which is very important in an industry that highly values brilliant storytelling. The top 10 finalists did exactly that so I commend them for their brilliance and hard work.”

Pesengco explained that Nespresso’s role in film is something that is rooted in the company’s identity: “Creativity plays an integral role in all the things we do in Nespresso. We always strive to tell stories that uplift people, and what better way to do it than through film? We are proud of the finalists and we hope that the theme, virtuous circles, doesn’t end here—we hope that it continues to inspire others so that we can really look forward to brighter days ahead.”

A supporter of cinema and dynamic storytelling, the brand hopes to go further with its initiative to foster Filipino talent in filmmaking and continue to run the Nespresso Talents in the coming years.

Watch the films of the local finalists at https://www.nespresso.com/

B8 Monday, July 6, 2020

By Jerome Pugmire

S

The Associated Press

PIELBERG, Austria—All 20 Formula One drivers are going to show their support for the fight against racism before Sunday’s season-opening Austrian Grand Prix, although they will do so individually on the grid rather than with a collective gesture.

Soccer players on fields in England and Germany have taken the knee together simultaneously before games in support of the Black Lives Matter movement, and F1 drivers discussed what to do during a drivers’ briefing on Friday evening.

“All 20 drivers stand united with their teams against racism and prejudice, at the same time embracing the principles of diversity, equality and inclusion,” the Grand Prix Drivers’ Association said on Saturday. “Each individual has the freedom to show their support for ending racism in their own way and will be free to choose how to do this ahead of the race start.”

World champion Lewis Hamilton has spoken widely about racism in recent weeks following the death in Minneapolis of George Floyd—a handcuffed and unarmed Black man—after a police officer pressed his knee on Floyd’s neck for nearly eight minutes in May. Hamilton attended a Black Lives Matter march in London and is setting up a commission to increase diversity in motorsport.

The six-

Sports ‘WE RACE AS ONE!’ BusinessMirror

time F1 champion, who is the only black driver in F1, was asked after Saturday’s qualifying session if he plans to take the knee before the race at the Red Bull Ring in Spielberg.

PSC O.I.C.: LET’S TAP PRIVATE SECTOR FOR OLYMPIC BETS

P

HILIPPINE Sports Commission (PSC) OIC Commissioner Ramon Fernandez on Sunday bared plans of tapping private sector support for the four Tokyo Olympicsbound Filipino athletes as government funds, including the PSC’s, remained focused on fighting the Covid-19 pandemic.

“As we all know, the President [Duterte] utilized our budget for the fight against the Covid-19 pandemic,” Fernandez said. “So we will be calling out to our supporters.”

Boxers Eumir Felix Marcial and Irish Magno, pole vaulter EJ Obiena and world champion gymnast Carlos Yulo have qualified for the Tokyo Games, but funding their training, and those who are still hoping to qualify, took a beating because of the pandemic.

The PSC’s biggest source of funds, the Philippine Amusement and Gaming Corp.-fed National Sports Development Fund, is almost depleted because casinos remain shuttered. Malacañang has also redirected its budget to the pandemic, including the PSC’s from general appropriations.

“If government funding remains a huge obstacle in the second half of the year, the PSC will try to reach for financial assistance from the big companies to safeguard the training of the national athletes who are preparing for the Tokyo Olympics,” Fernandez said.

Fernandez, the PSC OIC as Chairman William Ramirez is on leave, told the PSC Chatroom that he will talk with Philippine Olympic Committee President Rep. Abraham Tolentino and Team Philippines Chef de Mission Mariano Araneta to also discuss the condition of athletes who are gunning for Olympic spots.

Tolentino earlier said he would lobby in Congress for the return of the PSC’s P1.3 billion budget that were redirected for the government’s response against the pandemic.

“It is important that the athletes are now turning to higher gear in their training,” Fernandez said. “We have to knock on the doors of the private sector. The financial requirement of the athletes is a concern. We have to look for money.” Ramon Rafael Bonilla

“Honestly, I don’t have any plans at the moment. I’ve not thought that far forward,” Hamilton said. “We spoke in the drivers’ briefing.

Interesting. But it was good that we’re all at least in

Valtteri Bottas wears a mask and makes a thumbs up sign at the Red Bull Ring racetrack in Spielberg, Austria. AP

N

EW ORLEANS—Jrue Holiday expects basketball to be the easy part.

The Pelicans guard will be living in the National Basketball Association’s (NBA) “bubble” when 22 teams gather near Orlando, Florida, this month to resume their suspended season.

Holiday’s wife, Lauren, a former US national team soccer player, is pregnant with the couple’s second child at a time when much of society has been shut down by the coronavirus pandemic. The veteran New Orleans player might be away from home for more than a month.

Meanwhile, Memphis rookie Ja Morant expects to miss his daughter’s first birthday next month. Boston’s Gordon Hayward may leave the team when his fourth child is born in September. And players like Washington’s Bradley Beal and Portland’s Damian Lillard wonder how intense NBA restrictions on player movement will be received.

These are but a few examples of why the NBA, its teams and the players’ union are making mental health and wellness resources available to players now and once they arrive at Disney’s

discussion. I don’t know what we’ll see tomorrow.”

On Thursday, Hamilton called out other F1 teams for not doing enough to combat racism, and said the sport still needs to push for more diversity. Mercedes is competing in an all-black car instead of the usual silver, while Hamilton and teammate Valtteri Bottas have “End Racism” written on the car’s halo.

Hamilton praised some drivers for speaking out against racism, but he still feels others need to do more and he raised that in their briefing.

“Just saying ‘thank you’ for those who have said something on their social media platforms because they’ve got a great voice, a great platform, then encouraging those who haven’t to say something,” Hamilton said. “I just described the scenario that silence is generally complicit. There still is some silence in some cases.... There are people who still don’t fully understand exactly what is happening and what [is] the reason for these protests.”

French driver Romain Grosjean plans to take a knee on Sunday.

“I wasn’t a great fan [of the idea] in the beginning,” Grosjean said. “But afterward I read a lot of things on the subject and now I think it’s a gesture a sportsman must make to show he’s against racism.”

Valtteri Bottas, meanwhile, upstaged Hamilton on Saturday to take pole position for Formula One’s season-opening Austrian Grand Prix.

The Finnish driver edged out the world champion by .012 seconds at the Red Bull Ring in Spielberg. He clenched his fist as he climbed out of his car and shared a hug with Hamilton.

“It’s something special when you push the car to the limit,” said Bottas, who is chasing an eighth career win. “Feels so good.

Wide World of Sports complex.

“It is going to leave the guys with a lot of time on their own, and challenges with families, newborns and whatever else they have going on in their personal lives are going to be magnified because they’re going to be in confined spaces for prolonged periods of time,” said William Parham, a Loyola Marymount psychology professor and director of the National Basketball Players Association’s mental health and wellness program.

“There’s no way around it, so I would anticipate some increased anxiety, some increased tension, some increased restlessness.”

There will be no fans at Disney. There also will be restrictions on where players can go, plus rules keeping families away until at least the second round of the playoffs. The hope is to significantly limit exposure to

THE Pelicans’ Jrue Holiday (11) dribbles against the Grizzlies’ Ja Morant in the first half of their game in Memphis in January. AP

Armour and Bryson DeChambeau were tied for second after 67s.

DeChambeau had a testy exchange with a TV cameraman after a bogey on the sixth hole.

“He was literally watching me the whole entire way up after getting out of the bunker, walking up next to the green,” DeChambeau said. “And I just was like, ‘Sir, what is the need to watch me that long?’ I understand it’s his job to video me, but at the same point, I think we need to start protecting our players out here compared to showing a potential vulnerability and hurting someone’s image. I just don’t think that’s necessarily the right thing to do.”

DeChambeau birdied four of the last six holes and pumped his right fist after making a 12-foot birdie putt at 18.

Wolff made a 14-foot eagle putt at the 559-yard, par-5 14th to pull into a tie with Armour at 17 under, and added birdies on the par-three 15th and par-five 17th. He finished with the eagle, nine birdies, five pars and three bogeys.

If the 21-year-old Wolff can hold on Sunday, it will be his first victory since the 3M Open last year in Minnesota.

It’s very impressive [from the team].”

Red Bull’s Max Verstappen was third and Lando Norris gave McLaren a boost by finishing fourth. Verstappen has won the past two years here, including 2019 when he started third behind Hamilton and Ferrari’s Charles Leclerc.

“It’s going to be interesting quite a bit warmer tomorrow and hopefully this will play to our advantage,” Verstappen said.

“Today, Mercedes was on a different level, unfortunately. Last year we were also a little bit off in qualifying so I expect we will be a bit better in the race.”

Bottas had the leading time when drivers embarked on their final laps and beat his own mark before sliding off the track into the gravel.

Hamilton was chasing a record-extending 89th career pole. He was ahead but then dropped off slightly as Bottas secured a 12th career pole.

“Great job by Valtteri. It’s a great start to the season,” Hamilton said. “We show year on year that we continue to be the best team. We’re open-minded...constantly learning from each other and pushing the boundaries.”

Ferrari struggled for speed, with Leclerc nearly one second behind in seventh and Sebastian Vettel failing to make it into the third and final part of qualifying, known as Q3. He starts the race from 11th on the grid.

Vettel is leaving Ferrari at the end of the season with his future in F1 uncertain.

Earlier, Hamilton posted the fastest time in morning practice. The 35-year-old British driver was also quickest in both sessions on Friday.

Midway through third practice, F1 newcomer Nicholas Latifi misjudged the exit of a turn and spun his Williams car into a protective tire wall.

NBA emphasizes mental health as teams await Disney ‘bubble’

Wolff shoots 64 to take 3-shot lead in Detroit D

ETROIT—Matthew Wolff has been working on his mindset, trying to have a good time regardless of results to help him perform closer to his potential.

An ice cream truck outside the Detroit Golf Club seemed to help.

Wolff had a roller-coaster round that went well enough Saturday to give him a three-shot lead in the Rocket Mortgage Classic. He shot his second straight eight-under 64 to move into position for his second Professional Golfers Association (PGA) Tour victory.

“I have to give credit to the ice cream truck that was circling the property,” said Wolff, who was 19-under 197 after three rounds. “I’m not joking, actually.”

Wolff made a 35-foot putt on the 138-yard No. 5 for birdie, his second of nine birdies.

“I heard the ice cream truck and I’m like, ‘I have a good feeling about this,’” Wolff recalled. “Just had that little like ice cream truck song in my head. I think that helped me just not think about the speed or the line or anything, just keep my head free.”

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

“Just going to go out there, have fun and hopefully I hear the ice cream truck a little bit,” he said.

Last year, he made a 26-foot putt from the fringe for eagle on the final hole for a one-stroke win at the 3M Open in his third tournament as a professional. Wolff joined Tiger Woods and Ben Crenshaw as winners of a PGA Tour event and the individual NCAA title in the same year.

The former Oklahoma State star, though, has struggled enough this season that he was 108th in the world going into the week. He missed the cut at the previous two tournaments and was 54th at the PGA Tour’s first event after its restart.

Armour played well and was in a great mood on the front nine while making five birdies to reach 16 under, giving him a one-shot lead.

He chatted and laughed with some fans, watching the tournament from beyond a chain-link fence, near the seventh tee. AP

Covid-19 inside the bubble.

Even under normal circumstances, Holiday sees family time as a cherished respite. Life at Disney will clearly complicate that.

“This is one of the mental parts about it that guys have to adjust to, where someone like me, I go home and it’s where I kind of relax,” Holiday said. “I try my best not to bring my work home with me so I can hang out with my wife, my dog, and my daughter and I can do things like that.... I think that’s going to be a little bit of a challenge, especially after like seven to 10 days.”

Likewise, Beal said living in the bubble will hardly be “a walk in the park.”

“We can’t just leave. We can’t just order whatever food we want. We can’t just do activities we want to do. We can’t go to our teammates’ rooms,” Beal said. “You’re restricted, and you can’t do the things that you’re normally used to doing.”

The Pelicans’ mental health and wellness program is led by team psychologist Jenna Rosen, and New Orleans general manager David Griffin calls it “critical.”

“Let’s not kid ourselves. This quarantine situation is going to be very difficult,” Griffin said. “We will work through mindfulness training with Jenna literally every day.... It’s going to be about who can keep themselves in the best frame of mind, quite frankly.”

Mental health has been a priority for the NBA and the NBPA, especially after players like Cleveland’s Kevin Love and San Antonio’s DeMar DeRozan opened up about their inner struggles.

DeRozan knows it won’t be easy at Disney.

“It’s tough,” he said. “You’re taking guys who’ve been with their families every single day for the last few months and all of a sudden separating everybody into this one confined space and taking away a lot of joyful things that we do outside of basketball.”

Milwaukee forward Giannis Antetokounmpo, who has played for Greece’s national team, said being away for three weeks during international tournaments was challenging. This trip to Disney could last three months if the Bucks make the NBA Finals. AP MATTHEW WOLFF had a rollercoaster round that goes well enough to earn him a three-shot lead in the Rocket Mortgage Classic. AP

Rick Olivares bleachersbrew@gmail.com

Bleachers’ Brew

That lost 2010 home match effect “IF the question is, ‘did the home game in Panaad, Bacolod (in February of 2011 against Mongolia in the Asian Football Confederation [AFC] Challenge Cup Qualifiers) reinforce the belief that had we an actual home match during the semifinals of the 2010 Suzuki Cup, could have won against Indonesia,” clarified Azkals Team Manager Dan Palami during my webcast interview last Friday.

“The answer is—certainly. Most certainly.”

The man who helped change the fortunes of Philippines football has been able to reflect on the game’s changes over the years and given everything that has happened since, he is in a unique position to offer that informed opinion.

And I agree with him.

I interviewed Palami on this being the calendar year being the 10th Anniversary of the historic 2010 Suzuki Cup. And at some point, we had to discuss that “lost home game.” What happened was Asean Football Federation (AFF) officials judged the Philippines as unprepared to host a semifinals home game; hence, awarding Indonesia with a second home game.

Back then, any howls of protest even a formal cable from Philippine Football Federation (PFF) officials about still playing in the Philippines were met with deaf ears.

The third and final match of the Philippines in Group B competition in the 2010 Suzuki Cup ended in a scoreless draw with Myanmar. The match had hardly finished and yet, we already knew that we were not going to have a home field match. Hearing that somewhat dampened the atmosphere of qualifying for the semifinals for the first time in the biennial tournament.

In truth, there were so many things going on in our minds in Vietnam. The scoreless draw saw us qualify for the semis. I was near the presidential section when the final whistle blew and I will always remember looking down at our bench and seeing then-Philippines Head Coach Simon McMenemy yell, “Yeah” while throwing up his hands as the players and coaches jumped all over the place.

The match ended before 9:30 p.m. and after that there was about a 15-minute postgame press conference. By the time coach and me walked into the locker room, talk had centered on the “no home field” story. That was the second thing on everyone’s mind.

Former PFF General Secretary Chito Manuel forwarded a cable to AFF officials and Ravy Khek simply replied, “We cannot accede to your appeal.”

Said Palami of that incident, “Knowing what I know now, it [the home game] could have been played in a neutral venue. It is water under the bridge. We had a big chance. If we had drawn the first leg, the pressure would have been on Indonesia to get a result. And we would have had the experience of playing them.”

Palami also believes that the raucous Philippine crowd would have really spurred the Azkals on. Since then the Kaholeros and the Ultras—vociferous supporters all—were formed. And all of a sudden, there were cheers, chants, and well, jeers.

The longtime national team manager also confirmed that the “lost home game” also forced not only the Philippine Football federation, but also the national team and even clubs look to the longterm.

All of a sudden, football was popular and the potential was there for a breakout sport.

“We then prepared for a longer term plan,” explained Dan. “I always felt that if we prepare well, we will do well. We went on a Southeast Asian tour and played as many games as possible as a team. Nag-World Cup Qualifiers and Challenge Cup medyo we were caught up in a lot of tournaments. That was what was necessary to elevate us a more respected and stronger team. Sunud-sunod na tournaments and activities.”

But hindi pa ganun ka-calibrated approach ko.

It was just inexperience. Going to a higher ranking in Fifa was about playing as many games as you can and getting those wins. We were doing that but not as the way we want. It matters who you play with and when you play—that is when there is a spike in the rankings. But it was a good experience and that experience will always be remembered by a lot us.”

And as former media officer of the national team who witnessed many a great result or event, don’t I know it.

The events of the 2010 Suzuki Cup—along with that lost home game—sure changed the way people look at the Beautiful Game in this country.