BusinessMirror June 08, 2020

Unlock industries, PU transport, govt told

By Elijah Felice Rosales

I

N order to reverse job losses, the government has to allow industries to operate at more than half the capacity and authorize all modes of public transport to resume to get people back to work, industry leaders said on Sunday.

The problem was never job creation; it was work resumption, after all. The economy should see its employment figures go up again once the government permits most of work to operate at above 50 per-

A BARBER disinfects his work area after giving a haircut at Better Barbers in Parañaque City. To comply with safety measures to prevent the spread of the virus, only 30 percent of its operation was allowed; it will be allowed to operate at 50 percent capacity after two weeks. NONIE REYES

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cent capacity, private-sector leaders told the BusinessMirror.

Sergio R. Ortiz-Luis Jr., president of the Employers Confederation of the Philippines (Ecop), argued that the jobless numbers ballooned in the latest Labor Force Survey (LFS) because millions of workers have yet to return to work on various causes.

However, at the weekend, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno called the latest data on unemployment “grossly exaggerated” and expressed confidence that labor mar-

ket numbers will start to recover as quarantines and restrictions are being eased nationwide.

The recently reported 220-percent increase in the country’s jobless rate in April is “not a reflection of the true state of the economy and the jobs market,” Diokno said.

Story on page A8.

For his part, Ortiz-Luis told the BusinessMirror: “We [employers] would not hire additional workers.

There are a lot of workers who have yet to return because their offices have yet to reopen. There is also a so-

cial-distancing policy in place that keeps industries from operating at full capacity. The priority should not be creation of new jobs; it should be the resumption of work,” Ortiz-Luis explained.

Further, he asked the government to give all modes of public transport the go-ahead to ply the roads again, as most firms in the Philippines are micro, small and medium enterprises and, therefore, have little to no extra capital to provide shuttle vans for employees.

Continued on A4

BusinessMirror A broader look at today’s business

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n

Monday, June 8, 2020 Vol. 15 No. 242

By Bernadette D. Nicolas

JULY RECOVERY CAN’T STOP CONTRACTION IN 2020—THINK TANK

HE slowdown in economic activities due to the Covid-19 pandemic and the government’s grant of exemption from Documentary Stamp Tax (DST) are seen to hinder attainment of the government’s P188billion revenue target for the said transaction tax this year.

State-run think tank National Tax Research Center (NTRC) said the fewer transactions as a result of Covid-19 and the government’s grant of DST exemption under Republic Act 11469 or Bayanihan to Heal as One Act are also expected to cut the government’s tax take.

“Since the DST is a transaction tax, the slowdown in economic activities and fewer transactions due to Covid-19 will have a negative impact on the attainment of the DST revenue target,” NTRC said in its tax research journal on the tax implica-

tions of Bayanihan law on the DST. The DST is a tax upon documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right, or property incident thereto and in respect of the transaction accomplished.

While the NTRC said the exemption of qualified loans during the ECQ period from the DST is “justifiable” to ensure full compliance of lending institutions with the Bayanihan law, as well as to ease their fi-

By Cai U. Ordinario

N

AS commercial flights begin to resume, passengers are greeted with the sight of pilots and flight attendants wearing protective personal equipment and the cabin seating spaced to comply with physical-distancing measures, as seen in a Cebu Pacific plane bound for General Santos City on June 5. Flight crew undergo rapid antibody testing before flights to ensure they are well and uninfected by Covid-19. NONIE REYES

nancial burden and their clients, the think tank said “this will result [in] a substantial revenue loss from the DST exemption.”

Citing initial estimates from the Department of Finance, NTRC said the government’s grant of DST exemption for credit extensions or

restructuring loan payments due within the enhanced community quarantine period, along with the extension of tax-compliance deadlines, will cost the government P470 million during the period of implementation of the Bayanihan law.

Continued on A4

BSP may cut key rates by 25 bps in June

By Tyrone Jasper C. Piad

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HE Bangko Sentral ng Pilipinas (BSP) may slash policy rates anew to inject more liquidity into the economy after the inflation decelerated last month.

RCBC Chief Economist Michael L. Ricafort and ING Bank Manila Economist Nicholas Antonio T. Mapa said they were expecting a 25-basis-point (bp) cut in the next monetary policy meeting on June 25.

Ricafort, in an e-mail to the BusinessMirror, said the slight easing in inflation could “still provide some leeway/flexibility to cut the local policy rates on the next monetary policy-setting meeting.”

He added, “There is still room to cut the 2.75-percent local policy rate, by at least -25 basis points, with inflation serving as the floor for key interest rates to prevent a situation of net negative interest rates.”

Last week, the Philippine Sta-

PESO EXCHANGE RATES n US 49.9820

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

tistics Authority (PSA) reported that inflation slowed to 2.1 percent in May, down from 2.2 percent a month ago and 3.2 percent a year earlier. The inflation averaged at 2.5 percent as of end-May.

The RCBC economist explained that economic slowdown and risk of recession in the second quarter, coupled with extended community quarantine until May, in the Philippines and across the world could suppress inflationary pressures.

This, in turn, could prompt further trimming of monetary policy, he said, noting that another cut in banks’ reserve requirement ratio (RRR) was also possible.

“The local economy would still need all the support that it needs, both in terms of more fiscal stimulus measures and additional monetary easing measures, especially to provide immediate financial aid/assistance/ lifeline to the most vulnerable sectors See “Rates,” A2

O amount of economic recovery in July will prevent the first contraction of the Philippine economy in 22 years, according to the First Metro Investment Corp.University of Asia and the Pacific (FMIC-UA&P) Capital Market Research group.

In its latest Market Call report, the local think tank believes full-year GDP will contract 0.2 percent this year, consistent with government expectation of a contraction of 3.4 to 0.2 percent this year.

FMIC-UA&P Capital Market Research was as optimistic as the government for 2021 since it also expects GDP to rebound to a growth of 8-9 percent next year.

“A return to some form of normalcy may speed up by July, when government dismantles the lockdown in most of the country, and get the economy running at a faster pace in H2 (second semester),” FMIC-UA&P Capital Market Research said.

“However, this may prove insufficient to avert the first annual decline in GDP in 22 years, given the new health protocols and the difficulties in re-establishing supply chains,” it added.

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 to June 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.

FMIC-UA&P Capital Market Research said consumer and investment demand may have weakened further in the second quarter.

“Consumers have had to make-do with spending on basic necessities given the lack of income due to the lockdowns or layoffs as firms face an uncertain future, and so their spending will likely fall in Q2 (second quarter),” the think tank said.

While domestic demand remained weak, the think tank expects inflation to be stable at around 2 percent. Inflation is not expected to go below that.

Continued on A4

n JAPAN 0.4581 n UK 62.9473 n HK 6.4494 n CHINA 7.0269 n SINGAPORE 35.7653 n AUSTRALIA 34.6825 n EU 56.6696 n SAUDI ARABIA 13.3179

Source: BSP (June 5, 2020)

News BusinessMirror

A2 Monday, June 8, 2020

www.businessmirror.com.ph

‘Creation of dummy FB accounts decentralized but united in purpose’

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By Lorenz Marasigan & Joel R. San Juan

HE digital fingerprints left by the makers of the clone socialmedia accounts of journalists, activists and government critics may not be easily traceable, but bear the same mark: decentralized yet unified, according to experts.

Sunday saw Facebook exploding with posts from people who saw their accounts being cloned, with most victims from the University of the Philippines (UP), a favorite subject of troll accounts because of the activism in the state-run educational institution.

The matter prompted the premier state university to issue a statement of concern, as students, teachers and officials, as well as alumni, raised a howl over the dummy accounts.

Even resigned Department of Information and Communications Technology (DICT) Undersecretary Eliseo M. Rio Jr. saw a dummy account bearing his social-media information. He said he immediately reported it to Facebook.

“It looks like it is done with connected effort. First, they copy your information and pictures,

then make certain changes in the profile link. The only way for us to solve it is for us private citizens to report it to Facebook,” he said in a phone interview.

DOJ chief alarmed

THE Department of Justice (DOJ) on Sunday also expressed alarm over reports of rapid increase in duplicate FB accounts.

Justice Secretary Menardo Guevarra said he would instruct the National Bureau of Investigation Office of the Cybercrime to conduct its own probe.

“I will immediately direct the DOJ Office of Cybercrime to coordinate with the NBI and PNP Cybercrime Units to promptly investigate the apparent proliferation of fake or dummy accounts on Facebook,” Guevarra said.

Guevarra admitted he worries

that false information might be posted on these fake Facebook accounts, when a public health crisis is gripping the country.

“This gives me cause for worry.

We don’t need false information at a time when we’re dealing with a serious public health crisis,” he added.

Decentralized, yet united in purpose

PIERRE TITO M. GALLA, the founder of consumer group Democracy.Net.PH, described the attack as anonymously unified.

“It has most of the fingerprints of an anonymous operation—the decentralization and yet unity of purpose,” he said.

Rio noted that the cybercriminals may have a lot of motives.

These include the proliferation of fake news, to scam people, or to discredit a person for being a government critic.

“I’ve been technically intelligent about these ops for more than 10 years. It’s easy to form a troll team to do this,” said Rio, a respected Marine general before being hired for the DICT. For Angelo Nino B. Gutierrez of Secure Connections, a cybersecurity research project of The Asia Foundation Philippines, identity theft on social media is not uncommon, as cybercriminals regularly scrape accounts for publicly available details that are used to create fake profiles.

“These accounts and the per-

sonal information they contain are used for everything from inflating ‘likes’ on social media, phishing attempts, to scams on people from your friends list,” he said. “This is an important reminder for everyone to practice good cyber hygiene, ensure their privacy settings are in check, and minimize the amount of personal information posted online.”

Rio noted that under the law, anyone who can be proven to have done this could be charged before a court for violation of Republic Act 10175 or the Cybercrime Prevention Act of 2012.

However, he noted that “these may be done outside our servers.”

“The fake accounts may have been made using a virtual private network or VPN so that it is hard to trace,” Rio said.

Privacy commish

FOR his part, National Privacy Commission (NPC) Commissioner Raymund E. Liboro said his group is now monitoring reports on the impostor Facebook accounts.

“While the extent of these incidents is not yet fully determined at this time, we have been receiving reports from different sectors, mostly from the academic institutions,” he said.

UP, in a statement, confirmed that it has brought its plight to the NPC “to help students and alumni report fake or dummy accounts in their name to the data protection

officer of Facebook.”

The UP public advisory asked members to check their Facebook accounts and if there are accounts made without their consent, they should report to the Data Protection Officer of Facebook.

Facebook representatives were unresponsive to media queries, but Liboro said his group was assured

by Facebook Representative in the Philippines Claire Amador that the California-based company is “already investigating the matter.”

Liboro added that his group has already directed Facebook to “report its findings as soon as it becomes available.”

For his part, Rio said this matter should be addressed by Facebook as a private platform, which allows social connection through the Internet.

“Facebook is a private company. To control it, you have to build a wall like China, where Facebook is not allowed. The only way that the government can step in is to totally disallow Facebook, but that’s too extreme,” he said.

He advised people to immediately report dummy accounts and warn friends and families about these fake social-media profiles.

Galla noted that the repercussions of the attacks, for now, are limited.

“Hopefully, the repercussions are limited to people being more concerned about their online accounts,” he said.

Rates…

Continued from A1

and prevent long-term adverse effects on the economy, such as job losses and business closures,” Ricafort added.

Apart from lower inflation, Mapa said the policy rate cut could be triggered by the need to provide additional stimulus to an economy nearing a recession, especially after the unemployment rate escalated dramatically amid the pandemic.

In April, at least 5 million Filipinos lost their jobs following the pandemic-induced lockdown in several parts of the country, according to PSA. This translates to a 17.7-percent growth in unemployment year-onyear.

He also noted that BSP has been telling the investors that it has “elbow room” to slash interest rates further amid a benign inflation environment.

“We believe that the Central Bank will carry out at most a 25-bp rate cut before pausing for the rest of the year to keep real policy rates positive,” he said.

UnionBank Chief Economist Ruben Carlo O. Asuncion, on the other hand, said the “current policy rates are already appropriate and the BSP is watching other metrics aside from inflation.”

“Liquidity is growing and I think that there is growing momentum that should be carefully considered in further cutting exercises,” he added.

The overnight reverse repurchase facility currently stands at 2.75 percent after BSP trimmed it by a total of 125 bp. This brought the overnight lending and deposit rates to 3.25 percent and 2.25 percent, respectively.

The Central Bank also brought down the RRR on reservable liabilities of universal and commercial banks by 200 bps to 12 percent.

BSP Governor Benjamin E. Diokno earlier said the Central Bank was willing to cut the reserve requirement further if needed.

‘Unfundable’ econ stimulus or bigger plunge in growth?

By Jovee Marie N. Dela Cruz

jobs, and 1.5 million jobs in infrastructure over three years, and help up to 5.57 million micro, small and medium enterprises, both formal and non-formal.

P

HILIPPINE growth can shrink by as much as 5.5 percent full year this 2020 without an “aggressive” economic stimulus, a leader of the House of Representatives warned at the weekend, addressing the economic managers.

House Committee on Ways and Means Chairman Joey Sarte Salceda made the statement after the National Economic and Development Authority (Neda) said the spending plan under the proposed P1.3-trillion Accelerated Recovery and Investments Stimulus for the Economy (ARISE) or House Bill 6815 was “not fundable.”

Also, Salceda, an analyst, said the deficit impact of the proposed ARISE is a “much smaller” consideration compared to what he described as the country’s deficit in confidence.

“Make no mistake, growth can fall by as much as -5.5 percent full year GDP this year, if we don’t do enough, and right now, with the way we are missing crucial deadlines with both the stimulus and CREATE [Corporate Recovery and Tax Incentives for Enterprises], we have to do much catchup in July and August,” he said.

The Development Budget Coordination Committee (DBCC) had earlier projected growth in 2020 to shrink by 0.2 percent to 3.4 percent.

Salceda said the package of reforms will cost about 3.6 percent of GDP, or P688 billion in new spending on its first year.

“When I saw the job numbers [announced by the Philippine Statistics Authority], I had no doubt that we will need to be more aggressive with our economic stimulus. There were 8 million fewer employed people in April 2020 than there were in April 2019—that is a very alarming sign that families are struggling,” he said.

Salceda said the economic managers should confront pov-

Dialogue SALCEDA: “We will need to confront poverty now. We cannot let growth fall too far down because it leads to poverty, and poverty is intergenerational. If you don’t confront it now, you are amplifying the problem in the future.”

erty now, which was worsened by the Covid-19 pandemic, through an economic stimulus.

“As I told our economic managers, we will need to confront poverty now. We cannot let growth fall too far down because it leads to poverty, and poverty is intergenerational. If you don’t confront it now, you are amplifying the problem in the future,” he said.

“You will remember that when I appealed that we do lockdowns, I said let’s do lockdowns now so that we won’t have to do more costly lockdowns later. The same principle applies with economic crises.

If you don’t confront the problem now with a strong stimulus plan like ARISE, you will have to spend more to correct a greater damage in the future. When confidence is the commodity in scarcity, you have to be quick, bold and decisive.

Vacillation will hurt. Delays will hurt,” he added.

Salceda said Congress is ready to “line up” P100 billion per year in new revenue measures to support this stimulus.

“The fiscal deficit is not my biggest concern right now. As I told the economic managers, I am prepared to line up P100 billion per year in new revenue measures—as indeed I already have, often at great cost to my own popularity,” he said.

Salceda, also one of the principal authors of ARISE, said this stimulus package is expected to protect and assist up to 15.7 million workers, create 3 million short-term

MEANWHILE, House Deputy Majority Leader and Bagong Henerasyon Rep. Bernadette Herrera on Sunday called for a dialogue between lawmakers and the economic managers to thresh out issues concerning the economic stimulus package.

“I know where my colleagues in the House are coming from because I myself was quite dismayed when I first heard the statement from Neda. But then I realized we need to come to terms with the economic managers in order to make sure this highly important and urgent measure will be funded and fully implemented,” Herrera said.

Herrera believes concerned lawmakers and economic managers “can sit down and find some common ground toward a shared goal of helping Filipinos cope with the Covid-19 crisis.”

“After all, we are all for a doable and more inclusive stimulus plan that could help the economy recover from the devastating impact of the coronavirus pandemic,” she added.

The party-list lawmaker warned that if the ARISE bill is not funded, many companies will close permanently and a lot of people will become jobless in the absence of an “all-inclusive” economic stimulus package.

For this year alone, the spending plan includes assistance to various sectors such as MSMEs (P10 billion); tourism (P58 billion); industry and services (P44 billion); transportation (P70 billion); agrifisheries (P66 billion); and funding for the National Emergency Investment Vehicle (P25 billion) to “minimize permanent damage to the economy.”

www.businessmirror.com.ph

The Nation BusinessMirror

Editor: Vittorio V. Vitug • Monday, June 8, 2020 A3

Economists raise alarm on worsening jobs crisis

By Cai U. Ordinario @caiordinario

& Jovee Marie N. dela Cruz @joveemarie

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OCAL economists believe unemployment and underemployment could worsen in the coming months as results from the April Labor Force Survey (LFS) were “discouraging.”

The grim employment situation would likely continue in the second semester of the year. Ateneo Center for Economic Research and Development (Acerd) Director Alvin P. Ang said unemployment would still be in double digit, particularly in the third quarter.

Ang also said that the country’s underemployment rate could even worsen to around 25 percent this year.

This could lead to a rapid expansion of the informal sector.

“Unemployment could remain double digits until the third quarter as businesses continue to adjust. But hopefully things get better in the fourth quarter,” Ang told BusinessMirror. “Underemployment will go 25 percent, possibly.”

However, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said at the weekend the April jobless rate was “exaggerated” and he believed the number will improve as businesses recover. Story on page A8.

Ateneo de Manila University Professor Geoffrey M. Ducanes, who recently released a paper linking unemployment and poverty in the time of

Covid-19, said underemployment is highly correlated with poverty.

Ducanes said this means the government should continue its assistance to workers. The government should also provide emergency employment and retraining for workers in sectors that were unlikely to recover soon.

In his recent presentation at the National Academy of Science and Technology, he recommended the extension of the Social Amelioration Program (SAP) for “highly vulnerable” households to prevent them from falling into poverty.

“Even though 5 million people were reported to have become additionally unemployed in April, my guess is that several more millions actually lost their income,” Ducanes told the BusinessMirror in an e-mail. “So, this is still very much consistent with the results I presented.”

Recalling promises made

THE “slow downloading” of SAP to millions of low-income families wasn’t loss on Speaker Alan Peter Cayetano who chided government agencies for missing the lessons of past errors.

Addressing members of the House of Representatives before they adjourned their First Regular Session last Friday, Cayetano said the Departments of Health (DOH), Labor and Employment (DOLE) and Social Welfare and Development (DSWD) and other SAP implementers should have learned their lessons from their mistakes in the delivery of the first P100 billion last month.

He recalled that before Congress

approved Republic Act (RA) 11469 last March 23, agencies promised to distribute the first tranche “in 10 days.”

Cayetano praised Malacañang for “working closely with Congress” in passing RA 11469 to ensure the immediate delivery of financial aid to the beneficiaries.

“But what happened? The distribution for April was finished in May. The enhanced community quarantine was lifted in many areas. It’s not clear now what will happen to the second tranche. But they told us that P200 billion was needed to help 18 million poor and near-poor families: P100 billion for April and P100 billion for May,” Cayetano said.

‘Get worse’

DATA from the Philippine Statistics Authority (PSA) revealed that the total number of employed declined by 7.99 million to 33.76 million from 41.75 million.

“There is a difference between this and the increase in the unemployed because some of those who lost their jobs might not have looked for any work because the lockdown has made them unavailable, in which case they would be classified as not part of the labor force,” he explained. “This is apart from those who may have had jobs but not had any earnings.”

For his part, Foundation for Economic Freedom President Calixto V. Chikiamco told the BusinessMirror that the latest employment data was “very bad news” for the economy.

Chikiamco also agreed that the

employment and poverty situation will both “get worse” and “worsen for sure” given the circumstances.

Additional jobless

BUT for IBON Foundation Inc. Executive Director Jose Enrique A. Africa, the actual employment situation was worse than government estimates.

Africa said the country’s real unemployment rate was already at 22 percent and the number of unemployed has already reached 14 million.

The PSA estimates only stated that unemployment was at 17.7 percent and there were 7.3 million jobless Filipinos in April.

“The revised unemployment definition tends to underestimate the magnitude of unemployment by 35 percent and the unemployment rate by 3.3 percentage points,” Africa said.

“An initial correction of this would mean an additional 2.6 million jobless Filipinos who should be counted as unemployed according to the previous definition for historical comparability,” he added.

New definition

IN April 2005, the Philippines revised its definition of unemployed by adopting international standards. Under these standards, one is deemed unemployed if he/she was without work and currently available for work and looking for work.

The new definition also stated that the ranks of the unemployed exclude those without work but not looking for work due to various reasons.

These reasons include being tired or believe that there is no work available; waiting for results of a previous job application; temporary illness/disability; bad weather; and, waiting for rehire/job recall.

“Government recovery plans need to give much greater direct income support to poor and low-income households,” Africa said. “This is both direct support for families’ welfare as well as a meaningful stimulus from increasing effective demand in the economy.”

Increase in unemployed

THE PSA said last Friday that around 7.254 million Filipinos were unemployed. This was a 220-percent or 4.987-million increase from the 2.267 million in April 2019.

Based on the LFS, the unemployment rate rose from 5.1 percent to a staggering 17.7 percent in the same period. The underemployment rate also rose to 18.9 percent from 13.4 percent last year.

PSA data showed the employment rate in April fell to 82.3 percent from 94.7 percent in January this year.

In April last year, government statisticians recorded employment rate at 94.9 percent. This translates to 33.8 million employed persons in April 2020 from 41.8 million in April 2019.

Labor force participation rate among Filipinos 15 years and older is estimated at 55.6 percent in April, the lowest in the history of the Philippine labor market.

Zero excuses

CAYETANO called on the heads of the DOH, DOLE and DSWD for a better, smoother system of distributing the second tranche of the financial aid.

“I don’t want to be a genius in hindsight and say we could’ve done this and that in Bayanihan I [RA 11469]. We acted on the exigencies, we passed [RA 11469] with the expectation and the agreement that it will be implemented very well. There are problems in implementation that are understandable; but there are problems that are inexcusable,” Cayetano said.

He said aside from the 18 million, up to 6.6 million more middle-income households were to receive financial assistance from other agencies like the DOLE, the Overseas Workers Welfare Administration and the Social Security System.

Expeditiously identify

CAYETANO said the “original sin” in the implementation of SAP was the failure of the agencies to expeditiously identify the intended beneficiaries and the refusal of their regional officers to coordinate with lawmakers and local officials.

“Somehow, instead of listening to the experienced members of Congress, governors and mayors, the DSWD leadership listened to their regional directors, many of whom do not possess experience in problems of this magnitude,” he added. “The ‘original sin’ of not coming up with a better list spiraled into many problems.”

Agriculture/Commodities

A4 Monday, June 8, 2020 • Editor: Jennifer A. Ng

BusinessMirror

www.businessmirror.com.ph

‘Farmers earn billions via direct-selling scheme’

By Jasper Emmanuel Y. Arcalas @jearcalas

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OCAL farmers have earned P5.8 billion from selling their produce to local government units (LGUs) and through the government’s marketing platforms during the months-long lockdowns, the Department of Agriculture (DA) said.

“We commend more than 750 Kadiwa outlets and communities, and 425 LGUs that procured P3.45 billion and P2.38 billion, respectively, of various products from more than 15,000 individual farmers and fishers, and 3,250 farmers’ cooperatives and associations nationwide, assuring them of direct market and reasonable incomes,” Agriculture Secretary William D. Dar said in a recent statement.

PHOTO shows one of the rolling stores at a Petron gas station selling fresh fruits and vegetables from local farmers. CONTRIBUTED PHOTO

BSP: Jobless data exaggerated, labor market numbers to recover. . . continued from a8 “Government officials continue to tout pre-Covid-19 macroeconomic fundamentals as we face this crisis with the PHL posting a stellar growth record of 6+ percent growth over the past 8 years. The magic formula has always been consumption, with the malling-crazed Filipino shopper carrying the economy to higher heights. Growth shifted into higher gear with the addition of access to credit, with households and corporates ‘buying into’ the new Philippine growth story as Filipinos snapped up cars and condos and giant conglomerates built bigger malls and fancier airports,” Mapa continued.

“The magic touch that the Philippines once had of course

was rooted in one thing: job security. Job security, both here and abroad [for OFWs] meant that consumption would continue ad infinitum and that banks would be lining up to grant consumers a credit line. But now that Covid-19 ran roughshod through the Philippine economy and leveled all its past ‘economic fundamental’ grandeur, we realize what held together the magical growth run of the Philippine economy: jobs,” the economist said.

Diokno pledges more

ON the part of the BSP, Diokno said that while they cannot directly ease the rise in unemployment, the measures

they deployed at the onset of the pandemic were “strategic moves to contain the volatilities and ensure confidence in the financial market, thereby averting further damage to the economy.”

Diokno also vowed to do more if necessary, depending on where the next set of data point to.

“The BSP is committed to stave off prolonged and deeper economic contraction. We, therefore, reiterate our support for carefully coordinated actions with other government authorities, as well as pending stimulus bills in Congress aimed at responding to the evolving needs of the economy as it transitions into new economic realities amid the ongoing pandemic,” Diokno said.

July recovery can’t stop contraction in 2020–think tank. . . continued from a1

In May, inflation averaged 2.1 percent, slower than the 2.2 percent posted in April and 3.2 percent posted in May 2019. Inflation in the first five months of the year averaged 2.5 percent.

The Philippine Statistics Authority (PSA) said inflation slowed due to weak demand and cheaper oil prices. There was a 28.8-percent deflation recorded in prices of petroleum and fuels for personal transport equipment.

“Although aggregate demand will wane, this may not result in very low inflation rates [or deflation] because limitations on the supply side [i.e., limited output, disrupted supply chains, etc.] may have a stronger effect. Thus, we don’t expect inflation to go below 2 percent year-on-year in the second quarter,” it said.

Impact on remittances

THE decline in oil prices is also affecting overseas Filipino workers (OFWs). FMIC-UA&P Capital Markets Research said due to this, remit-

tances would likely fall sharply in the second quarter of the year.

The decline in remittances in the second quarter, the think tank said, will further weaken consumption spending in the Philippines.

These are consistent with the earlier estimates of Ateneo Center for Economic Research and Development (Acerd) Director Alvin P. Ang and Institute for Migration and Development Issues (IMDI) Executive Director Jeremaiah M. Opiniano.

In an Ateneo de Manila University (AdMU) Policy Brief, Ang and Opiniano estimated around 300,000 to 400,000 OFWs will be laid off or suffer pay cuts due to the pandemic.

They said this will likely cut the remittances from OFWs by 10 percent to 20 percent or as much as $3 billion to $6 billion, “the steepest decline in remittances in Philippine migration history.” This means remittances could only reach $24 billion to $27 billion this year from $30 billion in 2019.

“Remittances will likely fall sharply in Q2 as Covid-19 [in terms of world economic growth] and ultra low crude oil prices have crushed Middle East economies resulting in huge unemployment in advanced economies and in OFW layoffs,” FMIC-UA&P Capital Markets Research said.

However, the think tank expects government spending to play a crucial role in the economy’s recovery which is expected next year.

FMIC-UA&P Capital Markets Research said the $30-billion stimulus plan of the government that is currently in the works would greatly contribute to the recovery, as well as the “normalization of business operations.”

The think tank said “some hope of recovery” is also being seen, particularly in the second half of 2020. This is driven by the reopening of the economies of the United States, Europe and China, which are among the country’s main trading partners.

Dar said LGUs bought palay worth almost P2 billion; poultry and livestock products, P193 million; vegetables, fruits and other crops, P94.6 million; and fisheries and aquaculture products, P92.3 million.

The agriculture chief said the DA’s Kadiwa ni Ani at Kita marketing program—which is implemented in various platforms, such as retail stores and online—has benefited about 1.3 million households.

“The increasing sales of Kadiwa shows that more farm and fishery producers are participating in our cause to address the food requirements of consumers,” said Dar. “This is a win-win situation for both consumers and farmer-producers, as consumers gain savings from buying goods at lower prices; and additional income for farmers

and fishers participating in the Kadiwa program.”

Dar said the Kadiwa marketing program shall continue under the country’s ”new normal” to serve as households’ food commodity supplier, especially in high-demand areas like Metro Manila.

In a separate statement, conglomerate San Miguel Corp. (SMC) said it will expand the network of its Kadiwa rolling stores at Metro Manila-based Petron gas stations to further support farmers and provide consumers easier access to fresh fruits and vegetables.

SMC said the new Kadiwa stores would be located at the following Petron gas stations: Bel-Air Gil Puyat corner Makati Avenue; Edsa—Sierra Madre; Dasmariñas, Edsa; Katipunan Avenue (La Vista),

Quezon City; Shaw Boulevard corner Wack Wack; C5-Diego Silang, Taguig; Edsa corner Main Avenue Cubao; 188 E. Rodriguez Jr. Quezon City; Marcos Highway, Pasig; Connecticut, San Juan; Ninoy Aquino Avenue, Sucat, Parañaque; Doña Soledad Avenue Better Living, Paranaque; and Dr. A Santos Avenue, Sucat Road, Parañaque.

“Although we are glad to see more traditional markets opening up and catering to more people, there is still a need for the Kadiwa stores, especially for those who live nearby looking for a convenient way to buy fresh fruits and vegetables. Anytime they stop by to fill up on fuel, or even if they’re just walking from home, we hope they will buy fresh produce to help our local farmers,” SMC President Ramon S. Ang said.

Unlock industries, PU transport, govt told. . . continued from a1

Even though quarantine restrictions in Metro Manila are now eased, the government kept the prohibition on jeepneys and buses. Only trains, point to point buses, cabs and ride hailing services were sanctioned to ferry commuters through the major roads, leaving many to fend for themselves on how to reack their work sites.

American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe said the country will likely witness its job figures rebound similar to what the United States experienced after lifting its lockdown.

“The US saw a rebound yesterday [last Friday] in job creation as the country slowly reopens the economy. I would expect similar results here as the country reopens after the ECQ lockdown,” Hinchliffe said, referring to the enhanced community quarantine in Metro Manila that got lifted on June 1.

As for Coco Alcuaz, the executive director of the Makati Business Club, it is now imperative for President Duterte to call for a special session in order to pass the P1.3 trillion stimulus package proposed in Congress.

Last week, the House of Representatives approved the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill. The measure contains P1.3 trillion of funding to be

injected in various sectors for the economy’s rebound in the lockdown aftermath.

However, as scheduled, lawmakers adjourned session sine die—or for an indefinite period—with the Senate failing to deliberate on the ARISE bill.

Senators had rushed another Covid-19 response measure, the Bayanihan extension bill, only to wait in vain till late Thursday for a Palace certification of urgency, that would have allowed a short-circuiting of the three-day gap rule in between second- and third-reading approvals of a measure.

“The government needs to put massive stimulus into the economy to slow the job losses. We urge the President to call Congress back to do that,” Alcuaz said.

He also said the job losses would not be as extreme as what the latest LFS indicated if only the private sector’s call for larger wage subsidies was heeded.

Hiring boost

EUROPEAN Chamber of Commerce of the Philippines Executive Director Florian Gottein pushed for a hiring boost in the tourism and transportation industries, among the hardest hit industries by the coronavirus pandemic due to travel restric-

tions imposed here and abroad. As such, he said it is important that workers in these fields get free trainings to obtain new skills.

With state resources stretched by the pandemic, he added it is now urgent for the government to engage in new public-private partnership projects, particularly in infrastructure, to generate instant jobs.

In the April LFS released last week, unemployment rate accelerated by more than triple to 17.7 percent, from 5.1 percent during the same period in 2019. In real value, the number of jobless Filipinos swelled by nearly 5 million to 7.25 million.

Travel restrictions made it tough for millions to get to work during the lockdown and thousands of business operations had to close— some for good—on declining income, paving the way for a job crisis that was worse than the worst of forecasts.

Globally, the pandemic is seen to displace over 300 million workers, according to estimates by the International Labour Organization (ILO). In May the ILO reported the labor displacement will come as a consequence of prolonged containment measures in at least 64 countries keeping workers at home and firms shut down.

Pandemic to cut govt ₧188-B stamp tax take. . . continued from a1 The P188 billion earlier revenue projection on the collection of DST this year was still hinged on the assumption that the Philippine economy will grow by 6.2 percent to 7.2 percent.

From the P188-billion projected collection of DST this year, around 46 percent or 86 billion is estimated to come from DST imposed on debt instruments, mortgages, pledges, and deeds of trust, assignments and renewals of certain instruments; while P102 billion would be generated from other transactions subject to DST under the amended National Internal Revenue Code of 1997.

With the projected economic slowdown this year, NTRC cited an S&P Global Ratings’ analysis that trade and private investments in the country are also seen to be sluggish due

to the pandemic. This will drag the demand for corporate loans, which account for 82 percent of the Philippine banking system’s loans, and restrain the momentum in retail or individual loans.

Thus, NTRC said the Bureau of Internal Revenue (BIR) must ensure the “effective and efficient collection of DST on other documents/instruments/transactions not covered by the exemption under its Revenue Regulations No. 8-2020.”

From 2014-2018, the government collected an annual average of P89.27 billion from DST. NTRC noted there was a significant increase in DST collections in 2018 resulting from the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law as most DST rates were doubled while

DST on debt instruments increased only by 50 percent.

In 2018 the government collected P139.17 billion from DST, significantly up from P85.92 billion in 2017.

Data from the BIR showed other transactions comprised the bulk of the source of DST collection in 2018, with the government collecting P75.17 billion. Debt instruments came in second, with government collection amounting to P59.79 billion; while the remaining P4.21 billion was sourced from DST on mortgages, pledges and deeds of trust.

There was no DST collected on assignments and renewals of certain instruments for 2018.

Last year, the government programmed to collect P170.4 billion.

The 2019 DST collection by transaction is not yet available.

Solons defend anti-terror bill, environmentalists lodge petition. . .

“What if, [we don’t pass this and] a major terrorist act happens? Or it happens at the next opportune moment for them? Or next month? Next week? At least, when the President signs this and it’s published in the Official Gazette, at least we are armed with the law.”

Lacson pointed out that the UN Security Council had issued an alert to member-states, including the Philippines to “strengthen the legal backbone of countries to effectively counter international terrorism.”

Terrorism “has mutated,” noted Lacson, a former National Police chief. “This isn’t simple explosions or killings. There are so many ways by which terrorists can hit people. And so many have died, been maimed, and so much infrastructure destroyed,” he added, citing the Marawi expe-

rience used as “haven” by terrorists.

“We’ve experienced Marawi. We’re trying to avoid making the Philippines a safe haven for terrorists because we are the weakest.”

Lacson lamented that Republic Act 9732, also known as the Human Security Act (HSA) of 2007, was “severely underutilized if not a dead-letter law as we call it.”

Since the HSA was enacted into law, only one accused terrorist was convicted, so far, he said, and the judge who convicted that person was among their resource persons, Judge Felix Reyes, president of the PSA (Philippine Judges Association).

Lacson said the judge related his difficulty to convict under the new law. “First of all, police are scared to file under HSA because they might eventually have to pay

the fine of P500,000 a day if the suspect is acquitted.”

Lacson said a report submitted to the Senate by prison authorities showed 735 suspected terrorists tagged as high-risk prisoners are still undergoing trial. “But not one of the 735 [involved cases] filed for violation sa HSA. They are instead facing murder, kidnapping, illegal possession of firearms. The problem with that is that government loses the chance to mount a program of de-radicalization. Instead of de-radicalizing the detainees, they are the ones who can recruit inside prisons because they are just facing common crimes.”

Call to junk ‘Terror Bill’

MEANWHILE, more environmental groups are joining the call to

junk the Anti-Terrorism Bill via online petition.

The petition has been signed by more than 2,600 environmental defenders representing 177 environmental groups.

It can now be signed and delivered by netizens from the safety of their homes directly to the e-mail addresses of their district or party-list representative through the online platform of climate activist group 350.org Pilipinas at https://350.org/ junkterrorbill, said Chuck Baclagon, coordinator of 350.org Pilipinas.

“We invite our fellow concerned citizens to make themselves heard by their very own district or partylist representatives. Demand our legislators to withdraw their support for this ‘Terror Bill’ that endangers the lives of environmental

defenders protecting our forests, seas, and climate,” Baclagon said in a news release.

Environmental groups have documented at least 172 environmental defenders who suffered human-rights abuses such as redtagging, illegal arrests, and the denial of humanitarian release from jail during the first two months of the Covid-19 lockdown.

More attacks are feared if the law pushes through alongside what they deem dangerous economic policies railroaded under the guise of Covid-19 recovery.

“Duterte seeks economic stimulus from ‘Build, Build, Build’ infrastructure like the Kaliwa Dam and the Manila Bay Aerotropolis, to the business as usual of mines like Oceanagold in Nueva Vizcaya

continued from a8

and Techiron in Homonhon. The Terror Bill will institutionalize the human-rights abuses already affecting defenders opposed to these projects,” Leon Dulce, national coordinator of Kalikasan People’s Network for the Environment (Kalikasan PNE), one of the initiators of the petition, said.

A number of lawmakers, such as Albay Representative Joey Salceda, have begun withdrawing their support for the bill after widespread online and on-the-ground public protests by activists, academe, legal luminaries, and celebrities.

Opponents of the policy have noted that if at least 20 legislators withdrew their affirmative votes for the Terror Bill, the law will lose its simple majority of possible votes. Butch Fernandez, Jonathan L. Mayuga, Samuel P. Medenilla

Editor: Angel R. Calso

The World BusinessMirror

Massive protests across US demand police reform

W

ASHINGTON—Massive demonstrations against racism and police brutality filled some of the nation’s most famous cityscapes on Saturday, with tens of thousands of people marching peacefully in scenes that were more often festive than tense.

Wearing masks and urging fundamental change, protesters gathered in dozens of places from coast to coast while mourners in North Carolina waited for hours to glimpse the golden coffin carrying the body of native son George Floyd, a black man whose death at the hands of Minneapolis police has galvanized the expanding movement.

Collectively, it was perhaps the largest one-day mobilization since Floyd died 12 days ago and came as many cities began lifting curfews that authorities imposed following initial spasms of arson, assaults and smashand-grab raids on businesses. Authorities have softened restrictions as the number of arrests plummeted.

Demonstrations also reached four other continents, ending in clashes in two European cities.

The largest US demonstration appeared to be in Washington, where streams of protesters flooded streets closed to traffic. On a hot, humid day, they gathered at the Capitol, on the National Mall and in neighborhoods. Some turned intersections into dance floors. Tents offered snacks and water.

Pamela Reynolds said she came seeking greater police accountability.

“The laws are protecting them,“ said the 37-year-old African American teacher. The changes she wants include a federal ban on police chokeholds and a requirement that officers wear body cameras.

At the White House, which was fortified with new fencing and extra security measures, chants and cheers could be heard in waves.

President Donald Trump, who has urged authorities to crack down on unrest, downplayed the demonstration, tweeting: “Much smaller crowd in D.C. than anticipated.

The demonstrations extended to Trump‘s golf resort outside Miami, where about 100 protesters gathered.”

Elsewhere, the backdrops included some of the nation's most famous landmarks. Peaceful marchers filed across the Golden Gate Bridge in San Francisco and the Brooklyn Bridge in New York. They walked the boulevards of Hollywood and a Nashville, Tennessee, street famous for country music-themed bars and restaurants.

They also gathered in places as far flung as a St. Louis suburb and cities in the Deep South.

Many wore masks—a reminder of the danger that the protests could exacerbate the spread of the coronavirus.

Roderick Sweeney, who is black, said he was overwhelmed to see the large turnout of white protesters waving signs that said "Black Lives Matter” as hundreds gathered in San Francisco. “We've had discussions in our family and among friends that nothing is going to change until our white brothers and sisters voice their opinion,” said Sweeney, 49. The large turnout of white protesters “is sending a powerful message.”

In Philadelphia and Chicago, marchers chanted, carried signs and occasionally knelt in silence. At a massive showing near the Philadelphia Museum of Art and its famous “Rocky” steps, protesters chanted “No justice, no peace!” before heading for City Hall.

A large crowd of medical workers, many in

In this September 29, 2014 file photo, the first Boeing 747-8 Intercontinental airplane to be delivered to Air China is moved into position from Boeing’s assembly facility to Paine Field in Everett, Wash. The Trump administration said Friday, June 5, 2020, it will let Chinese airlines operate a limited number of flights to the US, backing down from a threat to ban the flights. The decision came one day after China appeared to open the door to US carriers United Airlines and Delta Air Lines resuming one flight per week each into the country. AP Photo/Ted S. Warren

US will allow limited flights

by Chinese airlines, not a ban

T

he Trump administration said on Friday it will let Chinese airlines operate a limited number of flights to the US, backing down from a threat to ban the flights.

The decision came one day after China appeared to open the door to US carriers United Airlines and Delta Air Lines resuming one flight per week each into the country.

The Transportation Department said it will let Chinese passenger airlines fly a combined total of two round-trip flights per week between the US and China, which it said would equal the number of flights that China’s aviation authority will allow for US carriers.

Delta praised the US government for trying to “ensure fairness and access to China.” United said it was reviewing the matter. Neither said whether the latest development in the dispute between the two countries would affect their plans. Both had hoped to offer more flights.

The Transportation Department said it might further ease restrictions if China does the same. Officials are concerned, however, about conditions China is imposing that could affect whether US airlines resume their flights. Those requirements include taking temperatures of all passengers in mid-flight and suspending an airline’s future flights if five or more passengers test positive for the coronavirus after arriving in China.

China’s embassy in Washington did not respond to messages seeking comment.

The dispute between Washington and Beijing over airline service has been building for weeks and is part of broader trade and diplomatic tension between the world's two biggest economies.

In early January, there were more than 300 flights per week between the two countries, but international carriers reduced and then stopped flying to China as the coronavirus pandemic devastated demand for air travel. United, Delta and American Airlines suspended flights to China before mid-March.

Chinese airlines reduced but didn’t eliminate their flights to the US. They ran about 20 flights per week in February, 34 by mid-March. Air China, China Eastern Airlines, China Southern Airlines and Xiamen Airlines continue flying those routes. Travel in both China and the US has partly recovered in the past two months, although it remains far below 2019 levels. In May, Chicago-based United and Atlanta-based Delta petitioned China to resume flights there, but received no response.

The Trump administration protested that China's refusal to grant access to US airlines was unfair. The Transportation Department announced on Wednesday that it would prohibit all passenger airline flights from China no later than June 16. AP

lab coats and scrubs, marched to Seattle's City Hall. Signs they held read, “Police violence and racism are a public health emergency” and “Nurses kneel with you, not on you”—a reference to how a white officer pressed his knee on Floyd’s neck for several minutes.

Atop a parking garage in downtown Atlanta, a group of black college band alumni serenaded protesters with a tuba-heavy mix of tunes. Standing within earshot, business owner Leah Aforkor Quaye said it was her first time hitting the streets.

“This makes people so uncomfortable, but the only way things are happening is if we make people uncomfortable,” said Quaye, who is black.

In Raeford, North Carolina, a town near Floyd's birthplace, people lined up outside a Free Will Baptist church, waiting to enter in small groups. At a private memorial service, mourners sang along with a choir. At the front of the chapel was a large photo of Floyd and a portrait of him adorned with an

angel's wings and halo.

“It could have been me. It could have been my brother, my father, any of my friends who are black,” said Erik Carlos of nearby Fayetteville. “It made me feel very vulnerable at first.”

Floyd‘s body will go to Houston, where he lived before Minneapolis, for another memorial in the coming days.

Protesters and their supporters in public office say they‘re determined to turn the outpouring into change, notably overhauling policing policies. Many marchers urged officials to “defund the police,” which some painted in enormous yellow letters on the street leading to the White House near a “Black Lives Matter” mural that the mayor had added a day earlier.

Theresa Bland, 68, a retired teacher and real estate agent protesting at the Ohio Statehouse in Columbus, envisioned a broader agenda.

“I’m looking at affordable housing, political justice, prison reform,” she said. AP

Monday, June 8, 2020

A5

Opec+ extends production cuts in win for Saudi-Russia alliance

O

pec+ agreed to a one-month extension of its record output cuts and adopted a stricter approach to ensuring members don’t break their production pledges.

The deal will underpin the oil market recovery, easing the financial pain felt by resourcedependent emerging economies, shale explorers in Texas, and blue-chip companies like Royal Dutch Shell Plc. It’s a victory for Saudi Arabia and Russia, who put a destructive price war behind them to successfully cajole Iraq, Nigeria and other laggards to fulfill their promises to cut production. The two leaders of Opec+ showed that they intend to keep a close watch on the oil market, meeting every month to assess the balance between supply and demand amid an uncertain economic recovery from the global pandemic.

“Our collective efforts have borne fruit, and despite many uncertainties, there are encouraging signs that we are over the worst,” said Saudi Energy Minister Prince Abdulaziz bin Salman. “Demand is returning as big oil-consuming economies emerge from pandemic lockdown,” he added.

After a videoconference lasting several hours on Saturday, delegates said all nations had signed off on a new deal for a production cut of 9.6 million barrels a day next month. That’s 100,000 barrels a day lower than the reduction in June because Mexico will end its supply constraints, but a tighter limit than the 7.7 million barrels a day set for July in the group’s previous agreement.

In addition, the communiqué states that any member that doesn’t implement 100 percent of its production cuts in May and June will make extra reductions from July to September to compensate for their failings.

Those promises are a particular vindication

for the Saudi minister, who has consistently pushed fellow members to stop cheating on their quotas since his appointment last year.

But they could also add an element of risk.

In theory, the entirety of the 23-nation production agreement, which runs until April 2022, is now contingent on every member making 100 percent of their pledged cuts, according to the communiqué. That’s something rarely achieved in the 3 1/2 years that Opec+ has existed, or indeed the decades-long history of the Organization of Petroleum Exporting Countries itself.

Daunting challenge

Oil has just posted a sixth weekly gain in London, more than doubling to $42.30 a barrel since April with traders anticipating tighter supplies as demand recovers from lockdown. US President Donald Trump on Friday hailed the cuts from Opec and its allies for saving America’s energy industry, and US Energy Secretary Dan Brouillette welcomed the deal on Saturday.

The oil market “is still in a fragile state and needs support,” Russia’s Energy Minister Alexander Novak said in opening remarks at the virtual meeting. “That is why today more than ever it is important to adhere to 100 percent compliance.”

The group hopes to build on its success by pushing the market into a supply deficit next month, using a price structure called backwardation to start to chip away at the billion barrels of oil stockpiles that built up during the pandemic.

There was no discussion in the meeting about the future of the additional 1.2 million barrels a day of voluntary output cuts being implemented by Saudi Arabia and its Gulf allies in June, delegates said. Bloomberg News

A6

Monday, June 8, 2020 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

How people’s trust can be broken

I

F “in war, truth is the first casualty” and the pandemic has been described as a “war,” then do the math.

We the people have been bombarded (it’s a war after all) with premeditated lies, “fake news” and distorted facts. All along the way is a concerted effort at “fearmongering,” the purpose of which is probably to “sell the news” or a political agenda.

In the past months there have been mixed results from the clinical use of hydroxychloroquine to treat Covid-19 patients. The US Food and Drug Administration released a Safety Communication against hydroxychloroquine. The global press/media went into near hysterics over a widely read study published

by The Lancet medical journal claiming the use of hydroxychloroquine to treat coronavirus leads to an increased risk of death.

“It found that patients who took the drug had a 34 percent increased chance of death and a 137 percent increased risk for heart arrhythmias,” according to the Washington Post. The publication of the study had consequences. All trials testing the drug’s effectiveness stopped within days, including a study by the World Health Organization.

Last week The Lancet retracted the study, as they “can no longer vouch for the veracity of the primary data sources.” It turns out that Surgisphere, the company that provided the database behind The Lancet and New England Journal of Medicine hydroxychloroquine studies, has provided controversial data for the study.

The press/media published the results without ever “fact-checking” that Surgisphere previously had been involved in data controversies by providing false information even about the company itself. An independent audit of the provenance and validity of the data has now been commissioned by the authors not affiliated with Surgisphere because of “concerns that have been raised about the reliability of the database.”

The British daily The Guardian did a partial background check, but the damage to the credibility of the potential benefits of the drug had been done. Here’s part of what the daily has discovered: Surgisphere’s employees have little or no data or scientific background. An employee listed as a science editor appears to be a science fiction author. While Surgisphere claims to run one of the largest hospital databases in the world, it has almost no online presence.

The crucial question: What if lives could have been saved with hydroxychloroquine?

In the Philippines, we read the following stories from different news outlets.

“PH facing up to 30 percent drop in remittances this year.” “With Covid-19, remittances expected to fall by up to 6.9 percent.” “Remittances from OFWs may decline by 2.5 percent.” “Remittances are expected to decline by 7 percent.”

These are all estimates or guesses from different expert sources published by news outlets. But BusinessMirror in a single story by Tyrone Jasper C. Piad on May 18th quoted sources from the Bangko Sentral ng Pilipinas, ING Bank, and the RCBC and Union Bank chief economists. The title was straightforward: “Remittances to sink deeper, analysts fret.” That’s what journalism that is not agenda-driven looks like.

This is not a minor issue when we are living through momentous times.

While the Covid-19 appears to be loosening its grip on the health of the world, the adverse economic consequences are just beginning to appear. The reaction to the latest Philippine unemployment data is another case in point.

We are still in what is the strongest and longest quarantine of any country on Earth. Yet we read “PH unemployment shocks at record high in April.” If you shut down 90 percent of the businesses in an area making up 40 percent of the total economy, is it difficult to imagine that unemployment would go up to historic levels?

Trust is both an emotional and logical act. Governments and the press/media are both in deep “trust trouble.” The current global protests may have been triggered by an event. But the bigger and much more serious issue is simply, “Who can you trust to tell you the truth?”

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Human-centered design and the WFH protocol Atty. Jose Ferdinand M. Rojas II

RISING SUN

B

efore the Covid-19 pandemic, many employers would not even dream of allowing their employees to work from home.

It used to be a privilege reserved for a few, favored employees. Management would insist that the work must be done in the office, something that many of us now realize is untrue.

The pandemic made us see that many of our traditional work practices need to be reexamined because some of them are only being followed simply because it has always been done that way. There is no wisdom in requiring someone to sit at a desk for eight hours a day just to deliver subpar work when that same person could do so much more if given more

freedom, comfort and generally better working conditions. That translates to less/no exposure to traffic and pollution, less cost for both employee and employer, and more productive hours in the comfort of one’s home.

The current WFH arrangement may be tweaked, improved, designed or practiced in such a way that the

human being (employee) is seen and considered as such. This means, for instance, that his/her health should be a priority and her specific and personal needs taken into consideration. As people see less of each other physically and due to the presence of this global crisis, people tend to be more concerned about each other’s well-being and state of mind/health.

Employers want to know what their employees need to help them work better. Many companies have provided computer units and Internet connection to their people, and that’s just the most basic infrastructure that was set up.

Some organizations conduct various programs to make sure their workers are doing fine: regular checkins, mandatory mental health days, virtual happy hours, half-day Fridays, etc. They do know that people are going through a difficult time and they want to make sure that their employees are able to respond

to problems like stress and anxiety.

Employees who are also parents have suddenly found themselves working in the midst of quarreling children, or while entertaining a baby or feeding a toddler. The home has turned into a home/office/school space with minimal boundaries such that activities may overlap at any time. Organizations do recognize this reality and have started to implement flexible working hours for parents or employees with family responsibilities. The new management is willing to build the work around the home environment in support of their employees.

As companies struggle to keep afloat during this crisis, they too find reprieve in the WFH arrangement as it allows them to save on overhead costs and other expenses.

It’s true that setting up the additional infrastructure is an additional expenditure, but savings may offset it in the long run.

Covid-19: Lessons for the Philippine power sector

By Sara Jane Ahmed, Alberto Dalusung III, Jose Logarta Jr. & Pete Maniego Jr.

W

hen the novel coronavirus first appeared in China late last year, nobody expected that the new disease, officially dubbed Covid-19 by the World Health Organization in February 2020, would become a global pandemic. Advanced and developing economies were ill prepared for its impact. Public health systems were overwhelmed. Broad and restrictive quarantine measures, including lockdowns, were imposed, severely restricting global and domestic economic activity. The preliminary numbers indicate the impact on the global economy will be worse than the financially induced global recession in 2007-2009.

The country’s financial and economic managers strived to mitigate the pandemic’s effects on the marginalized sectors by realigning budgets and mobilizing new funds from borrowings. Opportunely, the country’s strong macroeconomic fundamentals made this possible.

The spread of the virus has impacted industries, including the power sector.

Despite burden sharing among consumers and major players in the main grid, power system inflexibility may translate to either higher cost for consumers or losses for inflexible generators.

Opportunities with flexible generation certainly deserve separate discussion among power sector policy-makers and players. For sure, the new normal will reflect broad structural changes, in turn affecting the energy intensity of the economy in the short, medium and long term.

To address the impact of the enhanced community quarantine, the Department of Energy and the Energy Regulatory Commission (ERC) acted promptly to ensure stable power supply by making sure the wholesale electric-

ity spot market would continue to operate amid the challenges faced by the transmission, distribution, and generation sectors. The DOE also ensured that frontline workers in the sector are authorized to travel and provided with sufficient health protection.

There are, however, downsides to the responses under the current regulatory system.

First, the spot market, based on central economic dispatch predicated on variable costs, ensures that the generation mix would always be leastcost in the short run. However, even prior to Covid-19, market results had been distorted by take-or-pay natural gas fuel-supply contracts that lead to higher costs. On the other hand, the crisis has accentuated the advantages of variable renewable energy in keeping prices low and stable. Supply from VRE, especially those under the Feedin-Tariff system, had stable prices. The low-demand situation also accentuated the merit-order-effect on spot prices.

Further, the low-demand situation also highlighted the unfolding advantages of renewable energy and natural gas

over coal supply, as shown by data from the Independent Electricity Market Operator of the Philippines. The generation reduction came almost entirely from coal capacity, and barely scathed natural gas operators.

Secondly, the must-offer rules for capacity meant to guarantee competition might have a perverse effect on costs, and need to be reexamined. Covid-19 has induced a demand reduction like no other since the market was launched in 2006. Maintenance rescheduling due to low demand could be construed as anticompetitive behavior under current rules, even though rescheduling makes economic sense. Energy Secretary Alfonso Cusi encouraged generators to take advantage of the low demand to schedule preventive maintenance.

For end users, Meralco offered a 30-day payment extension for bills due from March 1 to April 14, which was later adopted by ERC for all franchise areas. The ERC subsequently mandated that all consumption during the quarantine period—under bills falling due in March, April, and May—should have a payment deadline not earlier than June 15. The deadline extensions and the installment plans had affected and will continue to affect the cash flows of the industry players over several months. Utilities will in turn need to extend deadlines for payment to the generation sector.

Meralco has faced numerous criticisms by the Joint Congressional Energy Commission (JCEC), the DOE, and ERC over the lack of transparency and inadequate communications that led to anxiety over “bill shocks.” The utility has promised to address these concerns immediately.

Meralco experienced a fall in peak demand of almost 40 percent to 4,516 megawatts in March 2020 and further to 4,289 MW in April. As a result, the country’s largest distribution utility promptly invoked force majeure provisions in its power supply agreements— seven contracts with three conglomerates in the power sector. Consent was granted by Ayala, San Miguel, and Aboitiz, according to Meralco VP for Utility Economics Lawrence Fernandez.

Otherwise, end-users already saddled with minimal or no income during the lockdown would face higher per kilowatt hour rates owing to lower capacity utilization. Estimates by the Senate Energy Committee indicated that per kWh rates in Luzon and the Visayas would have risen by 15 percent and 5 percent, respectively.

Almost all electric cooperatives, due to lack of negotiating power by virtue of their size, were not able to avail themselves of force majeure. According to the Philippine Rural Electric Cooperatives Association, of the 59 electric cooperatives that suffer from higher unit electricity rates because of lower utilization of contracted capacity, only two have managed to negotiate with their suppliers. Electric cooperatives sought the assistance of ERC to trigger negotiations on force majeure arguments. During the JCEC hearing, ERC Chair Agnes Devanadera promised to deal with the problems of the cooperatives on a caseto-case basis, upon prodding by JCEC co-Chair Senator Sherwin Gatchalian.

On the positive side, mainly shielded by the effects of Covid-19 are the contestable electricity consumers procuring power from retail electricity See “Covid-19,” A7

Opinion BusinessMirror

www.businessmirror.com.ph

Sit down before standing up

Is this the end of the jeepneys?

Siegfred Bueno Mison, Esq.

THE PATRIOT

Thomas M. Orbos

STREET TALK

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ever before in our history has public transportation been adversely affected. The fear of infections has led to social distancing and put the majority of the populace on a lockdown, greatly decimating commuter traffic in recent months. And maybe the one most affected is the jeepney sector.

Unlike their counterparts such as the bus sector, which are mostly run as established businesses, jeepney operations are mom and pop affairs that are sustained on a day-to-day basis. The long lull has pushed them to the brink. Short of the discovery of a vaccine that can bring us back to life as before, this period we are now in might see indeed the death of the old jeepneys.

Even before the pandemic, the jeepneys were already barely surviving. Facing a government that was undeterred in its push to modernize, the sector was also suffering from a reduction of ridership in recent years. One reason was the proliferation of UV Express vans, most of them “colorums” or unregulated, which sprouted in most cities. These vehicles had the advantage of comfort as they were air- conditioned, can either take the role of a taxi or a jeepney stopping anywhere for their passengers at very much close or the same fare per kilometer as the jeepneys. On another end was the growing motorcycle option for the Filipino commuter, with the easy price entry to acquire two-wheeled vehicles, and the advent of motorcycle ride sharing that was somewhat on its way to being legalized just before the lockdown.

Enter ing the new nor ma l, jeepneys find themselves in a more difficult position than other transport modes. Because of their configuration, the old jeepneys expose commuters to more personto-person interaction even if social distancing and partitions are in place. Jeepneys also operate under a boundary system, which means this can only work if quotas that are now practically impossible, again because of fewer commuters, are attained. Lastly, bicycle riding is now widely accepted as it provides a cheaper and safer mode of transport in these Covid times, targeting the same commuter segment being served by the jeepneys.

Jeepney organizations are thus in a bind on where to take their constituents. Their natural reaction is to ask for government subsidy, which can only work in the short term. Not to mention that the government does not have the money to do this sufficiently.

So, what then is left for the jeepney community to move on in order to survive? Participating in the modernization program is one, as modern jeepneys seem to have a guaranteed place in the new normal given their ample room for social distancing. But not all current operators can afford the cost to modernize, or can be accommodated in the program. Those who cannot modernize need to look for other options.

And this may be the area that government can come in to help

Covid-19. . .

continued from A6

suppliers. In the Luzon grid, where the preponderance of contestability, i.e., 5 of 9 gigawatts (GW) of demand is already eligible, with 80 percent of the 5 GW under retail supply contracts. Most of these contracts that impose volume and price risks on suppliers took effect after 2017. Expanding the scope of retail competition as mandated by the Electric Power Industry Reform Act remains in legal limbo at the Supreme Court. In fact, templates of post 2016 retail supply contracts explicitly identified “pandemics” as a force majeure event. Thus, small consumers continue

Monday, June 8, 2020

Jeepneys can be used as mobile sari-sari stores operated by displaced supermarkets, which would do well for people locked in their homes. Restaurants, dry goods companies, and even pharmaceuticals can replicate this scheme. Jeepneys can be used as shuttle services by small to medium enterprises that cannot afford company vehicles. the jeepney sector—helping them “pivot” and take advantage of the resilient nature of the jeepneys.

After all, the jeepneys were a creation of a “pivot” situation after the last world war. Government is in the best position to help them “pivot” again by identifying new opportunities for the jeepney sector in other sectors, training them for their new roles, and connecting them to potential partners and users. There are so many areas for these nimble Filipino mechanical creations that can easily adapt to its required mission. Jeepneys can be used as mobile sari-sari stores operated by displaced supermarkets, which would do well for people locked in their homes.

Restaurants, dry goods companies, and even pharmaceuticals can replicate this scheme. Jeepneys can be used as shuttle services by small to medium enterprises that cannot afford company vehicles or would rather not allow their employees to ride in public transport that would have a higher risk of infection. Jeepneys may be employed by the government as their mobile errand cars for their various requirements—maybe to ferry medical personnel and social workers or to fill in as mobile contact tracers, among others.

There are many other possible uses for the jeepneys if one would think further. But it would need the government to hold them by the hand. Not by providing subsidies that can only last for so short a time but rather helping them pivot into other roles.

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undamental of all human freedoms is the freedom of expression. Our thoughts and opinions can generally be expressed in speech with minimal government interference.

From what I recall in my Constitutional Law class, protected speech does not include speech that incites imminent criminal action that impacts national security.

Much has been posted on social media regarding the events surrounding the killing of African-American George Floyd in the hands (or in the knee) of Minneapolis City police officers. Some people took to the streets to let their voices be heard against racial discrimination. Unfortunately, those who resorted to violence and looting of commercial establishments were not exercising their freedom of expression. The angry mob, filled by evil motives, simply took advantage of the chaotic events. Needless to say, what has transpired in most urban areas in the US reflected the polarizing divide that has prevailed in America for more than a hundred years.

In the Philippine setting, people have taken a stand in some nation-dividing issues. For instance, the closure of media giant ABS-CBN due to the expired franchise dominated the news in recent weeks. More recently, the Anti-Terrorism Bill has taken over the headlines. I refuse to take a stand unless I understand the rationale behind such government action. Though I am torn, intellectually and practically, as to the one key provision in the Anti-Terrorism bill, I will take a stand.

As a lawyer, I am appalled at the provision that allows for a detention period of 14 days without the benefit of a judicial charge. Worse is the accompanying provision that allows a 10-day extension to such detention. If the bill, mysteriously certified as urgent in the time of a pandemic, becomes a law, government agents can arrest any person upon mere suspicion of committing a terrorist act, as defined in the law. There is a plethora of jurisprudence that has provided enough legal bases for law enforcement agencies to understand the finer points of a legal arrest without a warrant.

In fact, my thesis in law school, titled “Warrantless Arrests In Intelligence Operations Affecting National Security,” compiled all such cases to come up with a proposal to sanction the legality of warrantless arrests in limited high level intelligence operations, on top of those allowed by the Revised Rules of Criminal Procedure and judicial decisions.

However, as a former Army officer assigned in the intelligence service, I understand the inherent difficulty in complying with legal requirements in the conduct of operations against known threats to national security. Back then,

it was almost impossible to secure a warrant in time to swiftly arrest members of ultra-rightist groups. After all, these lawless elements, mostly former members of the military, were not only extremely mobile and resourceful but were also well versed as to how our unit operates. At that time, these groups threatened the stability of the country as they kept on planning and launching coups to overthrow the administration. I know that some of my colleagues then were taking short cuts if only to accomplish objectives.

As a mission-oriented organization that focuses on numbers, our unit found creative ways to get the job done at all costs, justifying the means with the end, that is, capturing enemies of the State!

“Sit down before you stand up” simply means that before we exercise that freedom of expression, we should have a more reflective understanding of the issues. This is so because the Bible tells us, in Proverbs 13:3, “Guard your words and you’ll guard your life, but if you don’t control your tongue, it will ruin everything.” Our eight tongue muscles, though not the strongest of all, never tire out. People cannot run the whole day but they can talk all day! Seemingly insignificant, our tongue muscles can be very powerful for it is written in James 3:5-6, “Likewise, the tongue is a small part of the body, but it makes great boasts. Consider what a great forest is set on fire by a small spark. The tongue also is a fire, a world of evil among the parts of the body. It corrupts the whole body, sets the whole course of one’s life on fire, and is itself set on fire by hell.”

We must use our spoken words wisely for they can either build or destroy.

Before going to the streets to protest and vilify another, one should truly comprehend the issues. Sitting down will allow emotions to subside. Sitting down will also allow conscience to dictate motives in speaking out. Our innate

A7

human nature makes us say or do things for the wrong reasons. Every well-meaning Filipino, when government tries to stifle the most fundamental of all freedoms, ought to stand up! In the Bible, Ecclesiastes 3:7 tells us that there is, “a time to tear and a time to mend, a time to be silent and a time to speak.” But please be aware of the issues first by sitting down before standing up. For believers, sitting down allows the Holy Spirit within, to harmonize logic, reasoning, and emotions with a spiritual perspective.

Lest I will be mistaken, all of us should not be apathetic to issues affecting society; instead we must use our freedom of expression to stand up.

As for this Anti-Terrorism bill, the long period of detention may help get the job done in capturing evil terrorists as vital information can be legitimately coerced in a lengthy investigation. But such prolonged and extendible detention without a warrant is evil. In the process, government agents in their quest to combat evil terrorists become evil as well. Society cannot and should not allow evil to fight evil. Standing up against this provision in the bill, I expect some of my former colleagues in uniform to criticize me or even unfriend me in social media. That’s their right as well as it is mine to speak out and stand up. But I hope they sit down first, as I did.

A former infantry and intelligence officer in the Army, Siegfred Mison showcased his servant leadership philosophy in organizations such as the Integrated Bar of the Philippines, Malcolm Law Offices, Infogix Inc., University of the East, Bureau of Immigration and Philippine Airlines. He is a graduate of West Point in New York, Ateneo Law School, and University of Southern California. A corporate lawyer by profession, he is an inspirational teacher and a Spirit-filled writer with a mission.

For questions and comments, please e-mail me at sbmison@gmail.com.

Value as nexus: Reflections on the academic tracks in accountancy

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

With these diverging programs, one might look for a deeper connection across these specialized tracks. This connection will unify the profession’s vision of “a new accounting.” Beyond the mechanical aspects of accounting, these specialized tracks appear to converge at the concept of value. Accounting after the fourth Industrial Revolution gravitated toward the creation, preservation, protection, and assurance of value.

Management accountants create value for the benefit of the organization and its stakeholders. Contrary to the “bean-counter” stereotype, management accountants lead organizations by envisioning the strategic direction of the entity and making this vision a reality for

the benefit of various stakeholders. Through various theories and techniques, management accountants help determine and execute optimal business decisions based on evidence and insight. Also, the management accountant’s agility and flexibility allow him/her to make necessary corrections to his/her initial decisions on a timely manner based on recent developments.

With these sound decisions, management accountants help usher the sustainable growth of businesses and, ultimately, economies.

An information systems accountant occupies a niche in most organizations as complex decisions are coupled with more complex technologies. Side by side with value creation, information systems ac-

countants preserve value through the technologies, systems, and infrastructures needed to capture pertinent information, whether financial or non-financial. While accounting and information technology (IT) were treated as separate silos in the past, the complexity of current transactions and technologies paved the way for information system accountants. They ensure that the value created by management accountants are tracked and preserved in a sound and robust system as supported by appropriate technologies, after all, value not accounted for is value lost.

With the imminent threats to value created and facilitated, internal auditors are needed to protect it. Internal auditors appraise the entity’s strategic, operational, reporting, and compliance activities vis-à-vis the entity’s objectives.

Through this appraisal, internal auditors protect value from deterioration and loss created by internal and external factors. Also, internal auditors assess whether the controls instituted by management and information system accountants are in place during the value creation and facilitation processes, respectively.

Ultimately, internal auditors ensure that value created and facilitated are protected for the benefit of the various stakeholders of the entity.

In the end, all value created by business entities must positively impact the stakeholders. While value has been created, facilitated,

to be held captive by the procurement decisions of the distribution utilities.

The economy-energy nexus and opportunities in the power sector In addressing the economic crisis induced by Covid-19, the National Economic and Development Authority under Secretary Karl Kendrick Chua has proposed an economic recovery plan addressing the sectors most severely hit by the pandemic. The plan addresses liquidity problems through loans and targeted, time-bound, and conditional equity infusions. We hope that the conditionalities would be anchored on sustainable development criteria so we can aim for a better, not just new, normal.

The downgrade in the economy’s

growth trajectory means power sector capacity additions will be delayed.

The DOE has revealed that electricity demand fell by 30 percent in Luzon, 17 percent in the Visayas, and 25 percent in Mindanao. The delay provides an opportunity for the DOE to reset energy development policy by enabling flexible energy generation, allowing greater renewable absorption in the grids, and redirecting resources to support energy price stability.

The country’s financial regulators have been proactive in safeguarding the financial system, while enabling opportunities for the post-Covid-19 recovery and growth period. In April 2020, the Bangko Sentral ng Pilipinas (BSP) approved the Sustainable

Finance Framework to safeguard the financial system from evolving transition risks including stranded assets and to value low-carbon opportunities.

The BSP framework complements the mandatory environmental, social and governance reporting guidelines for publicly listed companies starting 2020 previously issued by the Securities and Exchange Commission. For the Southeast Asian region, the Asean Green Bonds Standards was released in 2018 to jump-start green finance. In 2019, the Philippines listed $2.02 billion of green bonds. Green bonds are effective in addressing investment and liquidity needs through the capital markets.

Under the current regulatory design, the investors and operators of

inflexible power are shielded from the impacts of fuel price and demand fluctuations in their contracts—“unless force majeure conditions are successfully invoked.” Their income is guaranteed through adjustments in electricity bills of captive households and small businesses that can ill afford it. Equitable risk sharing among all parties involved in the transaction should be standardized in the power supply agreements.

Force majeure clauses should protect the interests of end-users, while incentivizing utilities and power generators to procure flexible and least cost generation. The competition bill in the power sector (Senate Bill 1653) prepared by the Senate Committee on Energy can enable the policies under various laws

Fermin Antonio del Rosario Yabut

DEBIT CREDIT

F

rom a humble department in most commerce schools in the early 20th century, accountancy education has gone a long way in the Philippines. Currently, accountancy programs reflect the specialized needs of the industry and the market.

With the updated Commission on Higher Education memorandum orders on accountancy programs, students intending to pursue a career in accountancy can now choose among accountancy, management accounting, internal audit, and accounting information systems for their tracks.

and protected inside the organization, various (external) stakeholders need assurance that the value the entity purports to deliver is faithfully represented and relevant.

External auditors, graduates of the BS Accountancy program, provide the said assurance to various stakeholders. With their independence, professional skepticism, and judgment, external auditors enhance the value created, facilitated, and protected by other accountants through the assurance report external auditors provide. The quality of assurance provided by external auditors, in turn, is reflected in the general confidence of the market.

As we enter a new industrial era, the value that accountants create, facilitate, protect, and assure is not confined to financial value. There is an increasing need for organizations and economies to grow sustainably, not only financially. In line with the triple bottom line model, accountants create, facilitate, protect, and assure value in financial, human, and environmental aspects. As we reflect in the seemingly diverging tracks of accountancy education, I offer this conjecture: the nexus of new accounting is in the creation, facilitation, protection, and assurance of financial, human, and environmental value for sustainable and equitable growth.

Fermin Antonio del Rosario Yabut is a CPA in the academe and a former deputy director of an academic publishing house.

meant to enhance consumer protection and market competition.

The smallest consumers should have enjoyed the benefits of Retail Electricity Supply and Open Competition many years ago, as envisioned under the Electric Power Industry Reform Act of 2001. But the pandemic provides the power sector with opportunities to put in place far-reaching reforms. It’s time to seize the day.

Pete Maniego Jr., Jose Logarta Jr., and Alberto Dalusung III are energy policy advisors of the Institute for Climate and Sustainable Cities. Sara Jane Ahmed is an energy finance analyst of the Institute for Energy Economics and Financial Analysis. A longer paper is under development as input to planners and policymakers.

A8 Monday, June 8, 2020

Solons defend anti-terror bill, environmentalists lodge petition

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AWMAKERS defended the decision to approve the bill amending the 2007 Human Security Act, as warnings against its big potential for abuse—including protests from environmental activists—mounted over the weekend.

Senate President Vicente Sotto III said there would be no need for government to impose martial law to contain terrorism once the antiterror bill is signed into law.

Sotto stressed that rights advocates were asked to provide inputs safeguarding human rights when the Senate bill was being crafted between 2018 and February this year, the passage on third reading by the chamber.

He said the bill’s definition of what is “terrorism” follows the UN definition. He reiterated that Minority Leader Franklin M. Drilon, a former Justice secretary and civil libertarian, was also asked to put his inputs in the Senate version.

Sotto added that “warrantless arrests,” which critics keep raising, have long been allowed in the country.

The bill’s main advocate in the Senate, Sen. Panfilo Lacson, clarified that the upper chamber had considered and passed the measure in February, way before there was official recognition of the Covid pandemic. He was responding to criticism that the government should not have prioritized the measure, when the clamor is for more bills to help Covid-impacted sectors and businesses to recover.

The House of Representatives rushed passage of the amendatory anti-terrorism bill before adjourning last week, sparking accusations it was railroaded.

BSP: jobless data exaggerated, labor market numbers to recover

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HE Bangko Sentral ng Pilipinas (BSP) chief has called the latest data on unemployment “grossly exaggerated” and expressed confidence that labor market numbers will start to recover as quarantines and restrictions are being eased nationwide.

BSP Governor Benjamin Diokno told reporters over the weekend that the recently reported 220-percent increase in the country’s jobless rate in April is “not a reflection of the true state of the economy and the jobs market.”

“Record-high unemployment rate [is] grossly exaggerated. The in-

crease in unemployment was more a result of the policy decision to save lives in response to the Covid -19 pandemic. Note that the April 2020 Labor Force Survey [LFS] was conducted from 20 April to 16 May, at the height of the ECQ. A big part of the economy was shuttered; the consequent rise in joblessness was

State-induced,” Diokno said.

Just last week, the Philippine Statistics Authority (PSA) reported that the jobless rate of the Philippines rose to 17.7 percent. This means that 7.254 million are out of jobs in April to May of this year.

This is a stark rise from the 2.267 million jobless Filipinos in the same period in 2019.

The underemployment rate also rose to 18.9 percent from 13.4 percent last year. Despite the staggering drop in employment numbers, Diokno said the BSP expects job recovery as the containment measures are relaxed nationwide.

“I’m confident that the next jobs report which is due in August 2020 will show a starkly different picture. The next LFS [will be conducted from 20 July to 15 August,”

Diokno said.

“But as job loss was uneven during the lockdown, so will job creation in the transition. Construction and manufacturing can easily be restarted. While the entire services sector might be gradually restored, some industries like air travel, hotels, tourism-related firms might take some time to restart due to risk aversion on the part of consumers.

Some might even take much longer such as theaters, ball games, conventions, and others,” he added.

“Some jobs might be permanently lost while new ones emerge,” he further said.

But while the BSP and other economic managers are confident that labor numbers will amply improve in the following months, private economists expressed concern.

Continued on A4

Popcom: No time to hire, train Covid tracers, tap bgay teams

By Cai U. Ordinario

@caiordinario

T

‘Terrorism knows no time’

LACSON, in noting the bill’s much earlier time line in the Senate, said at the weekend, in a mix of English and Filipino: “First of all, this has nothing to do with the pandemic.

The terrorist knows no timing, no border. When they’re ready anytime when we least expect it, that’s when they attack.

Continued on A4

“No salary, no consumption. No consumption, no growth.”

ING Bank Manila senior economist Nicholas Antonio Mapa said that the so-called strong economic fundamentals that the country is hinged upon is largely based on the employment security of Filipinos working in the Philippines as well as overseas.

“The Philippine unemployment rate hit 17.7 percent as scores of Filipinos lost their jobs as the pandemic bulldozed what we once thought to be impregnable ‘economic fundamentals.’ More than 7.3 million Filipinos are now out of a job as companies have been forced to slash payrolls to keep businesses afloat and in anticipation of difficult economic times ahead,” Mapa said.

THE Aani Weekend Market at Food Terminal in Taguig City reopens after almost three months. ROY DOMINGO

Meralco sees lower electric rates in June

By Lenie Lectura

A

@llectura

HEAD of the June electricity rate announcement, the Manila Electric Co. (Meralco) expects lower rates this month.

“There is a likelihood of a rate reduction this June,” said Meralco Utility Economics Head Lawrence Fernandez in a text message.

The utility firm will hold a virtual press briefing on Monday to announce the June rates.

Rates for May stood at P8.7468 per kilowatt hour, lower by P0.2483 per kWh, from April’s P8.9951 per kWh. This was mainly because of lower generation charge as Meralco invoked the Force Majeure (FM) provision in its Power Supply Agreements (PSAs) for the duration of the lockdown.

Fernandez explained that the June rates could be lower because of the suspension of the Environmental Charge component of the Universal Charges (UC) and the continued FM savings.

“While collection of the FiT-All will resume, this will probably be offset by the suspension of the Environmental Charge component of the Universal Charges and by the savings on fixed costs on generation supply due to the continued invoking of Force Majeure last May.

“May’s FM savings will be smaller, however, when compared to April’s savings of more than P800 million, as only a portion of the May supply month was under ECQ,” he said.

Meralco explained last month that the significant reduction in power demand in its service area during the enhanced community quarantine (ECQ) period prompted it to invoke the FM provision in its PSAs, thereby reducing fixed charges for generation capacity that would have been charged by suppliers.

April’s generation charge reflected a P129-million reduction in fixed costs due to Meralco’s FM claim. In May, the FM claim totaled P877 million, equivalent to savings of P0.3452 per kWh. For both April and May billing months, the reduction due to FM amounted to more than P1 billion.

Demand in the Luzon grid is starting to pick up, he said. Meralco recorded that demand jumped to more than 10,400 megawatts, its highest level since the ECQ was imposed. When the ECQ started in the second half of March, demand fell to less than 8,000 MW. “We will continue to monitor the demand whether or not this will justify [invoking] Force Majeure,” said Fernandez, when asked if this would

continue in the months to come.

Meanwhile, Meralco can conclude this month the meter readings of all its customers, which was halted since March 16 when the Covid-19 lockdown began.

Fernandez said Meralco was able to conduct meter readings of 60 percent of its customers last month.

“There 2.8 million customers whose meters we weren’t able to read last May, but we’re targeting to finally read this June. This means we were able to actually read 60 percent of meters last May,” he said.

Meralco drew flak as many customers complained of high electricity bills. Officials explained that the spike in the May electricity bills was “reasonable” since this already included a portion of the customer’s actual consumption for previously estimated months.

It explained that some of the March and all of the April bills were estimated based on the preceding three months—December, January, and February—which were likely to be significantly lower than actual consumption for these months.

With the resumption of meter readings, Meralco can now render the bill based on the actual consumption and the corresponding bill adjustments.

Fernandez said the so-called bill

shock could have been avoided if smart meters had been installed.

“If we had in place this mechanism, we would not have estimated the consumption during the quarantine period, for simple reasons like we would not have sent meter readers out because consumption can already be determined remotely,” he said.

Meralco targets to have 3.3 million of its customers shift to smart meter service over the next eight years.

The smart meters can handle prepaid and postpaid electricity services. Subscribers with smart meters can manage their electricity usage and budget through consumption information, alerts and notifications.

Meralco has already deployed 102,000 smart meters for its prepaid electricity service. By the first half of 2021, Meralco would have installed a total of 145,000 smart meters, 38,000 more for the PRES or the Prepaid Electricity Service, and 5,000 for postpaid.

Beyond the 145,000 smart meters, Meralco continues to work with the Energy Regulatory Commission (ERC) for the approval of 1 million more smart meters, which are to be deployed over a period of three years.

Meralco ended 2019 with 6.88 million customers.

HE Philippines does not have enough time to hire contact tracers to prevent the further spread of the coronavirus 2019 (Covid-19) pandemic, according to the Commission on Population and Development (Popcom).

In a statement, Popcom said local government officials, including those in barangays nationwide, could become the country’s contact tracers.

Popcom said local government units (LGUs) should organize these barangay-based contact tracing teams, as more overseas Filipino workers (OFWs) get repatriated and thousands access government programs such as the Balik Probinsya program.

“We cannot wait for the hiring of professional or untrained contact tracers.

Health and population volunteers can do the job, and, as anticipated in the JMC [Joint Memorandum Circular (JMC) 2020-01], with support for the hazardous work they do, and through appropriate logistical support from national agencies and local governments,” Popcom Executive Director Dr. Juan A. Perez III said.

Perez said the JMC was signed by Popcom, the National Economic and Development Authority (Neda), Department of Health (DOH) and Department of the Interior and Local Government (DILG) last April 30.

Based on the JMC, mayors with Covid19-stricken constituents can mobilize the 200,000-strong barangay health workers across the Philippines and 10,000 volunteers.

The JMC also allowed LGUs to employ about 10,000 population volunteers nationwide, the barangay police officers or tanods, and other local volunteers to conduct contact tracing under the supervision of city, as well as the municipal epidemiology and surveillance units.

He said barangay health and population volunteers regularly visit every house in their villages to deliver health messages and services.

With the onset of community quarantines since March, Perez said these volunteers have been delivering contraceptives to family planning clients who cannot leave their homes.

“Contact-tracing teams should already be in barangays without confirmed cases but with suspect cases, since they are the kind which may eventually turn positive,” Undersecretary Perez insisted.”

1-M contact tracers

EARLIER, Neda said the government can support as many as a million contact tracers for the next three months.

In a Senate hearing, Socioeconomic Planning Secretary Karl Kendrick T. Chua said the government is currently looking at employing 136,000 contact tracers. Health Secretary Francisco T. Duque III added that the DOH requires 130,000 contact tracers.

Duque said if contact tracers will be employed for three months and receive a salary of P30,000, this will require a budget of P11.7 billion.

If this computation is applied to the 1 million contact tracers that Chua said the government can support, this will cost about P90 billion.

www.businessmirror.com.ph

Companies BusinessMirror

Monday, June 8, 2020

B1

‘Hotels in PHL can recover quicker than rest of Asia’

By Ma. Stella F. Arnaldo

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Special to the BusinessMirror

T WILL be a long road ahead for Asia-Pacific tourism post-Covid 19, with a travel expert predicting recovery in 2024, when hotels return to 2019 occupancy and revenue levels.

But the region is expected to recover ahead of others, if travel restrictions are lifted by July or August.

In the recent “Travel Tomorrow” webinar co-hosted by the Department of Tourism (DOT) and the United Nations World Tourism Organization (UNWTO) STR area director for Asia Pacific Jesper Palmqvist, said the global research company earlier projected that recovery would happen in 2022. “Our forecast now is 2024.

So that's a long time. It sounds scary. But what I'm saying is that by 2022, we’ll see occupancy very close to 2019, but [room] rates usually lag after. If you have a big domestic market, which you do in the Philippines, it will ramp up a little bit quicker than others.” (See “Travel experts suggest PHL adopt inter-island travel corridors to help tourism recover,” in the BusinessMirror, June 5, 2020.)

STR data showed in 2019, av-

erage occupancy rate among Philippine hotels was at 70 percent, compared to the average of 50 percent for April and May 2020.

The Philippines has allowed hotels and other accommodation establishments to remain open for employees of essential industries like hospitals, business process outsourcing, and returning overseas Filipino workers. Longtime guests, including tourists booked before the enhanced community quarantine was imposed on March 16, have also been allowed to remain in their hotels.

An STR survey last year showed Metro Manila hotels were financially in good shape (See, “Profits of Metro Manila hotels rising—STR,” in the BusinessM irror , September 12, 2019).

Data from the UNWTO indicated that Asia lost 35 percent of its international tourists from February to April.

UNWTO officials hoped that

travel restrictions would ease up in July, with countries like Spain and Italy already announcing they are open to international travel within the European Union.

At the same webinar, Sandra Carvao, chief of UNWTO’s Tourism Market and Intelligence Competitiveness said, if this scenario prevails, she sees the loss of just 60 percent of international tourists towards the end of the year. “If we start seeing opening processes in July and August, probably Asia is better positioned trying to recover traffic than other regions, where most of the travel will take place in July, August and September.”

What will likely recover first in the region is domestic tourism, travel to local accessible destinations for leisure or weekend getaways, which has already started to happen in mainland China, said Palmqvist. Corporate business “will come much earlier than we thought, in business that is approved by government, and then smaller business that are allowed in certain regions in some countries. I think because of the size and the variation in Philippines, we can see that here too and that's true for the group,” he added.

But for the Meetings Incentives Conventions and Exhibition (MICE) business, “We’re looking at smaller events, hybrid events where technology will be important. Maybe you have five people

online in one room in a hotel or in a meeting room, and the rest are spread out digitally.” Definitely, international tourism will be the last to recover, he said.

For consumer confidence in the tourism industry to return, Carvao stressed there must “very transparent information on the situation on the ground all that done in full collaboration with the private sector with the necessary health authorities. So that borders can be open with responsibility and that there are also our monetization of protocols because consumers need to have that safety that when they go to one destination or to another they can expect the same level of safety.”

She a lso underscored that stakeholders themselves need to be transparent among themselves to boost the confidence of tourists. “We need to ensure that the travel journey is safe and seamless the whole way, and many issues arise here like cancellation policies transparency and information that consumers need to have at the time of booking to actually make that journey integrated. So the players can share information, obviously, with respect for data privacy and regulations. [It’s] also very important to make sure that the destinations have their own measures in place to ensure consumers can feel confident again to travel.”

CDC seeks solutions to dilemma of Clark locators C

lark Freeport—The Clark Development Corp. (CDC) and the Bases Conversion and Development Authority (BCDA) said it has taken into cognizance the plight of locators inside this freeport, particularly the request for a rental reprieve coursed through the Clark Investors and Locators Association (CILA).

CILA is requesting the reprieve to cushion the impact of the lockdowns in Pampanga from March 16 to May 31 on their businesses.

The group reiterated its request from the state-run CDC to grant them rental reprieve amid the Covid-19 pandemic.

In a statement, the CDC said “both the CDC and the BCDA are making representations with the Department of Trade and Industry [DTI] in seeking ways to address this concern. “ The CDC said the “Covid-19 pandemic has clearly affected the operations of many industries inside the Clark Freeport Zone and elsewhere in the country. CDC and the BCDA acknowledge this concern vis-a-vis employment and the need to also help generate funds for government undertakings that will help shore up the economy amidst the global pandemic.”

But the group is adamant. “Without government support, particularly from CDC, we

will hardly make it,” said CILA Chairman Ireneo Alvaro.

“It is only fair to ask for reprieve as majority were not able to operate during those 2 to 3 months. I hope CDC would not also expect income when its tenants do not open their shops,” he added.

In a letter to CDC President and CEO Noel F. Manankil on March 16, CILA called for rentals reprieve during the lockdown period.

These rentals comprise the months of March, April and May. The enhanced community quarantine (ECQ) enforced last March 16, shut down business operations and limited movement in Luzon Island as the country moved to contain the Covid-19 pandemic.

CILA said “businesses have started to feel the drastic effects of the pandemic with steep decline in production, operation and sales.”

“With the travel ban implemented since the start of outbreak, the hospitality sector like the hotels and resorts have recorded their lowest occupancy rates of 30-40 percent from the normal 80-90 percent,” said CILA. “CILA, as the prime business organization of Clark Freeport Zone, is asking your good office to consider giving relief on government

shares and/or rental dues of the locators affected by the pandemic.”

After two months of not getting a reply from CDC, CILA sought the intervention of the BCDA reiterating its “request for rental and other government monthly charges reprieve for the locators in Clark.”

In a letter to BCDA President and CEO Vivencio Dizon on May 14, CILA has reiterated its call for rentals reprieve noting “they were given the impression that our request has been approved in principle by the board and just awaiting the proper clearances from concerned government agencies.”

In its last letter, CILA indicated that “our members are at a tipping point on whether to continue operating in the Clark Freeport Zone and any positive feedback from your end will come a long way in persuading them to remain here in Clark,” CILA told both the BCDA and the CDC. Ashley Manabat

Eton Properties conducts Covid-19 rapid testing for employees

A

s part of its commitment to the health and safety of its employees and clients, Eton Properties Philippines conducted a rapid antibody testing for its on-site employees who were allowed to go to work following the declaration of general community quarantine (GCQ) in Metro Manila.

The rapid testing was conducted on June 1, the first day of GCQ, at Elements at Eton Centris in Quezon City following strict safety protocols such as physical distancing, wearing of face masks, sanitation, prior case investigation and seeking of consent.

“We are pleased to announce that all Eton frontliners who underwent the rapid test was negative of Covid-19.

With strict precautionary measures in place, we want to assure our customers and clients in our commercial, office, and residential properties that we will do what we can to maintain a virus-free

environment in our communities,” says Karlu Tan Say, Chief Operating Officer of Eton Properties.

On top of rapid testing for employees, Eton Properties has continuously imple-

mented safety measures in its developments including a no mask, no entry policy, regular sanitation and disinfection, social distancing guidelines, and improving digital access for its customers.

STOCK-MARKET OUTLOOK Last week

Share prices gained last week with the main index rising more than 10 percent and closing near the level recorded just before the lockdown was implemented in mid-March.

The benchmark Philippine Stock Exchange index (PSEi) gained 626.29 points to close at 6,465.13 points.

The main index now nears the pre-pandemic levels of 6,770.38 recorded on March 6, according to the PSE data.

“The PSEi ended with gains for seven consecutive trading days, something that we have not seen since 2018 when the market bottomed out. The main index ended at its daily high almost every day last week. Most were caught off guard as volatility picked up after several weeks of calm trading,” said Christopher Mangun, research head at AAA Securities Inc. The main index shed points on Friday and exhibited stronger selling pressure at the open, as it lost more than 200 points. It was able to recover most of it before the end of the trading day.

Average daily trading value for the week ballooned at P8.16 billion, as foreign investors turned net buyers at P2.91 billion.

All of the subindices ended in the green, with some gaining double-digit rates. The broader All Shares index gained 315.58 points to close at 3,773.28 points, the Financials index soared 184.77 to 1,361.19, the Industrial index was up 493.66 to 7,804.75, the Holding Firms index climbed 665.19 to 6,611.71, the Property index increased 388.41 to 3,259.48, the Services index added 34.47 to 1,396.91 and the Mining and Oil index was higher 584.28 to 4,947.

For the week, gainers led losers 193 to 43 and 14 were unchanged.

Top gainers were Megawide Construction Corp., Macroasia Corp., Benguet Corp. A and B shares, Apollo Global Capital Inc., All Home Corp. and JG Summit Holdings Inc. Top losers were Ever-Gotesco Resources and Holdings Inc., Metro Alliance Holdings and Equities Corp. A and B shares, IPM Holdings Inc., Republic Glass Holdings Corp., Manila Broadcasting Co. and PH Resorts Group Holdings Inc.

This week

Share prices are expected to continue its ascent this week as investors are more optimistic on the recovery of the country's economy.

Online broker 2Tradeasia said last week's increase is a good sign of fund managers' optimism and recovery.

“While Covid-19 bruised global economies, healing is bound to make its mark too. Seize on dips to gradually position, and opt for modest gains on rallies,” the broker said.

It sees immediate support for the main index at 6,400 points and resistance at 6,600 to 6,800 points.

There will only be four trading days this week, as June 12 is a public holiday to celebrate the Philippines's Independence Day. Meanwhile, Mangun said the PSEi blew through major resistance levels at 5,950 and 6,350. Its next target is now 6,800.

“Most are concerned that the stock market’s performance does not reflect the status of the economy. The growing divide between asset prices and economic growth has investors under invested despite its recent price action. There is also some concern that the current move is ‘too far, too fast' which will encourage investors to take profits and ride the next wave higher,” he said.

“We would like to caution investors as the momentum might run out quick and we could see it lead to a major sell off. The higher prices move, the sooner investors will be tempted to secure gains,” he said.

Stock picks

Broker Regina Capital Development Corp. advised to take profits on the stock of GT Capital Holdings Inc. as momentum that built up in the last two weeks has already breached its 50-day moving average.

“However, since this was a gap up from its previous P368 to P387.50 range, it went to the roof to overbought regions. There is still gas in GTCAP [GT Capital] to push it further, with the next strong resistance found at P463.32, established in mid-May. And since the rally was abrupt, expect some quick profit-taking for GTCAP until around P415, before bouncing back again," it said.

GT Capital closed Friday at P480 apiece.

Meanwhile, the broker recommended to buy during pullbacks on the stock of SM Prime Holdings Inc. The stock may have benefitted from the general uptrend in the overall market. Its ascent, however, was more granulated, with small upticks that establishes some interim support along the way.

“This way, the rally is slightly support compared to the substantial jump in other stocks. However, SM Prime faces its fist resistance at its 100-day moving average at P34.45. Expect a slight dip towards P32.50 before gaining enough momentum to continue the ascent,” the broker said.

SM Prime shares closed last week at P32.90. VG Cabuag

B2

Monday, June 8, 2020

Companies BusinessMirror

www.businessmirror.com.ph

Cebu Pacific offers more local flights

By Recto Mercene @rectomercene

C

ebu Pacific said over the weekend that it will offer flights to more local destinations from June 8 to June 30 as part of the gradual rebuilding of its domestic route network.

Cebu Pacific and Cebgo said these additional routes are: from Manila to Dipolog, Pagadian, Zamboanga, Masbate, Tablas and Davao.

The airline has scheduled the Cebu-Clark-Cebu trip from June 10 to June 30, and a round trip from Manila to Bacolod, Cotabato, Dumaguete Iloilo, Boracay (Caticlan), Roxas, Tacloban, Bohol and Coron from June 16 to June 30. Additional routes include Manila-Coron (Busuanga)Manila and Cebu-Davao-Cebu from June 16 to June 30.

Flights that have already restarted this week are the round trip from Manila to Naga, Cebu and Cagayan de Oro. The airline said flight details as well as bookings are through the web site, www.cebupacificair.com. For added flexibility, new bookings include CEB Flexi for free. This allows passengers to rebook their flights up to two times.

For passengers with existing bookings, the airline said they may rebook to any of the above-mentioned flights through the “Manage Booking” page on its web site.

Cebu Pacific said this is a developing situation “and we will have an agile approach to rebuilding our network schedule.”

“It may be necessary for us to add or cancel flights at last minute given

mutual funds

the fluidity of restrictions and directives from the Inter-Agency Task Force [IATF], the local government units [LGU] and other concerned government agencies.” Cebu Pacific said it will provide updates through their web site and official social media accounts “and endeavor to inform our passengers in a timely manner.”

The carrier “strongly urges” passengers to check guidelines of the IATF, or with the LGU of origin and destination.

Passengers may be asked to present proof of purpose of travel and other requirements upon entering the airport or at arrival at the destination, the airline said.

Cebu Pacific has implemented new flexibility policies to give passengers peace of mind in the event their flights are cancelled. They have the following options: n Free rebooking Passengers may rebook to any other travel date within three months.

Change (rebooking) fees and fare difference are waived. n Full Travel Fund Passengers may place the full cost of the ticket in a Travel Fund valid for one year. If the Travel Fund is not used within one year, passengers can apply for a full refund. n Full refund Processing of refunds will start after the community quarantine is lifted and regular work schedules resume. However, due to the unprecedented volume of requests for refunds, the process will take as long as three to four billing cycles.

June 5, 2020

NAV One Year Three Year Five Year Y-T-D

per share Return* Return Stock Funds ALFM Growth Fund, Inc. -a 212.74 -20.69% -8.23% -4.74% -15.54% ATRAM Alpha Opportunity Fund, Inc. -a 1.0306 -37.28% -13.72% -6.38% -25.43% ATRAM Philippine Equity Opportunity Fund, Inc. -a 2.8728 -31.5% -12.86% -7.3% -21.9% Climbs Share Capital Equity Investment Fund Corp. -a 0.7286 -23.87% n.a. n.a. -18.78% First Metro Consumer Fund on MSCI Phils. IMI, Inc. -a 0.6935 -22.81% n.a. n.a. -18.34% First Metro Save and Learn Equity Fund,Inc. -a 4.5591 -18.41% -6% -4.23% -14.44% First Metro Save and Learn Philippine Index Fund, Inc. -a,4 0.7238 -19.26% -8.8% n.a.

-15.21% MBG Equity Investment Fund, Inc. -a

76.55 -37.47% n.a. n.a.

-25.92% PAMI Equity Index Fund, Inc. -a 42.9319 -19.5% -6.47% n.a. -16.28% Philam Strategic Growth Fund, Inc. -a 455.49 -17.8% -6.02% -3.87% -14.51% Philequity Alpha One Fund, Inc. -a,d,5 0.9142 n.a. n.a. n.a.

-11.25% Philequity Dividend Yield Fund, Inc. -a 1.0737 -20.61% -6.44% -3.44% -16.57% Philequity Fund, Inc. -a 31.6895 -20.14% -5.81% -3.08% -16.38% Philequity MSCI Philippine Index Fund, Inc. -a 0.847 -20.99% n.a. n.a.

-16.81% Philequity PSE Index Fund Inc. -a 4.3755 -19.1% -5.9% -2.63% -16.23% Philippine Stock Index Fund Corp. -a

731.78 -18.97% -5.9% -2.84% -16.09% Soldivo Strategic Growth Fund, Inc. -a 0.6637 -29.95% -9.99% -7.06% -22.05% Sun Life Prosperity Philippine Equity Fund, Inc. -a 3.3872 -23.35% -7.23% -4.08% -19.53% Sun Life Prosperity Philippine Stock Index Fund, Inc. -a 0.8405 -19.03% -6.02% -2.76% -16.02% United Fund, Inc. -a 3.0737 -19.64% -4.59% -2.15% -15.87% Exchange Traded Fund First Metro Phil. Equity Exchange Traded Fund, Inc. -a,c 98.2671 -18.73% -5.38% -1.98% -15.98% ATRAM AsiaPlus Equity Fund, Inc. -b

$0.9578 0.65% -0.93% -2.25% -6.87% Sun Life Prosperity World Voyager Fund, Inc. -a $1.3571 9.79% 5.33% n.a.

-1.57% Balanced Funds Primarily invested in Peso securities ATRAM Dynamic Allocation Fund, Inc. -a 1.5691 -10.58% -4.23% -3.64% 0.4% ATRAM Philippine Balanced Fund, Inc. -a 2.1206 -9.48% -3.68% -1.63% -2.77% First Metro Save and Learn Balanced Fund Inc. -a 2.4903 -7.1% -1.68% -2.65% -5.37% First Metro Save and Learn F.O.C.C.U.S. Dynamic Fund, Inc. -a,1 0.1916 n.a. n.a. n.a.

-16.15% NCM Mutual Fund of the Phils., Inc. -a 1.8759 -3.68% -0.59% -0.2% -4.44% PAMI Horizon Fund, Inc. -a 3.5711 -4.72% -1.58% -1.27% -5.75% Philam Fund, Inc. -a 15.9203 -5.82% -1.84% -1.44% -6.13% Solidaritas Fund, Inc. -a 1.9788 -8.74% -2.79% -1.14% -6.92% Sun Life of Canada Prosperity Balanced Fund, Inc. -a 3.4033 -13.07% -3.51% -2.25% -11.92% Sun Life Prosperity Achiever Fund 2028, Inc. -a,d 0.9684 -5.34% n.a. n.a.

-4.66% Sun Life Prosperity Achiever Fund 2038, Inc. -a,d 0.8885 -13.2% n.a. n.a. -10.83% Sun Life Prosperity Achiever Fund 2048, Inc. -a,d 0.8688 -14.97% n.a. n.a.

-12.53% Sun Life Prosperity Dynamic Fund, Inc. -a 0.8428 -15.95% -4.43% -3.42% -13.54% Primarily invested in foreign currency securities Cocolife Dollar Fund Builder, Inc. -a $0.03841 4.72% 2.53% 1.62% 0.47% PAMI Asia Balanced Fund, Inc. -b $0.9726 2.42% 0.37% -0.73% -6.29% Sun Life Prosperity Dollar Advantage Fund, Inc. -a $3.8133 5.42% 3.68% 2.88% -2.49% Sun Life Prosperity Dollar Wellspring Fund, Inc. -a,3 $1.0989 2.17% 1.67% n.a.

-2.65% Bond Funds Primarily invested in Peso securities ALFM Peso Bond Fund, Inc. -a 363.94 4.21% 3.01% 2.47% 1.72% ATRAM Corporate Bond Fund, Inc. -a 1.9363 2.55% 0.88% -0.08% 1.8% Cocolife Fixed Income Fund, Inc. -a 3.1821 4.68% 5.15% 5.11% 2.11% Ekklesia Mutual Fund Inc. -a 2.2785 4.98% 2.74% 2.21% 2.4% First Metro Save and Learn Fixed Income Fund,Inc. -a 2.4319 6.43% 3.19% 1.88% 3.09% Philam Bond Fund, Inc. -a 4.5486 10.88% 3.89% 2.29% 4.02% Philam Managed Income Fund, Inc. -a,6 1.2879 6.77% 3.89% 2.11% 2.48% Philequity Peso Bond Fund, Inc. -a

3.9231 7.82% 4.16% 2.16% 3.56% Soldivo Bond Fund, Inc. -a 1.0233 10.03% 3.39% 1.58% 6.12% Sun Life of Canada Prosperity Bond Fund, Inc. -a 3.1501 7.79% 4.7% 2.86% 2.41% Sun Life Prosperity GS Fund, Inc. -a

1.7348 6.91% 4.13% 2.37% 1.98% Primarily invested in foreign currency securities ALFM Dollar Bond Fund, Inc. -a $472.23 3.48% 2.42% 2.59% 0.86% ALFM Euro Bond Fund, Inc. -a Є215.03 -0.53% 0.57% 0.86% -2.14% 3.44% 2.67% 2.31% 0.52% ATRAM Total Return Dollar Bond Fund, Inc. -b $1.2135 First Metro Save and Learn Dollar Bond Fund, Inc. -a $0.026 2.36% 1.45% 1.2% 0.78% PAMI Global Bond Fund, Inc -b $1.0645 -1.25% -0.35% -0.03% -2.8% Philam Dollar Bond Fund, Inc. -a $2.428 5.74% 3.05% 2.81% 1.01% Philequity Dollar Income Fund Inc. -a $0.0602707 2.64% 1.83% 1.73% -0.07% Sun Life Prosperity Dollar Abundance Fund, Inc. -a $3.1661 4.45% 2.01% 2.2% -0.29% Money Market Funds Primarily invested in Peso securities 127.73 3.79% 3.13% 2.37% 1.55% ALFM Money Market Fund, Inc. -a First Metro Save and Learn Money Market Fund, Inc. -a 1.0397 2.66% n.a. n.a.

1.31% Sun Life Prosperity Money Market Fund, Inc. -a 1.281 3.27% 3.03% 2.56% 1.3% Primarily invested in foreign currency securities Sun Life Prosperity Dollar Starter Fund, Inc. -a $1.0439 1.7% n.a. n.a.

0.65% Feeder Fund Primarily invested in foreign currency securities -6.06% ALFM Global Multi-Asset Income Fund Inc. -b,d,2 $0.93 n.a. n.a. n.a.

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

RCBC digital transactions sustain growth momentum

R

izal Commercial Banking Corp. (RCBC) saw its digital transactions surge during the protracted community quarantine; and the bank said it expects the same pace moving forward.

In a statement on Wednesday, the Yuchengco-family led bank said that over 1,000-percent growth in transaction value coursed through its cardless automated teller machine (ATM) withdrawal service was registered in May. The daily transaction count of cardless ATM withdrawals ballooned by 906 percent during the enhanced community quarantine (ECQ) from those booked prior March 16, RCBC said. Digital banking enrollment was also up during ECQ, surging by 193 percent, it added.

The bank’s send cash service rose by 569 percent in daily transaction value and 516 percent in amount. The said banking feature allows customer to transfer money to unbanked recipients through its ATM network and remittance center partners.

Transaction coursed through InstaPay climbed by 262 percent in the same period. RCBC said that it waived transaction fee for InstaPay and PesoNet fund transfers until June 15.

ATM Go, its mobile ATM service, registered daily average transaction volume growth of 147 percent during ECQ after booking record high of over 25,500 approved transactions

in May 28 alone.

The platform has disbursed over P2.4 billion to more than 875,000 families or 4.3 million individuals.

Bulk or more than 70 percent of the disbursement were completed during the 11-week ECQ and modified ECQ period.

In a statement mid-April, RCBC said its mobile ATM registered more transactions in the first quarter due to conditional cash transfer payouts for government beneficiaries under the “Pantawid Pamilyang Pilipino” program and the distribution of social amelioration emergency cash subsidy.

In April and May, RCBC deployed 60 ATM Go Terminals to new and existing payout partners. Up to 90 more of the mobile ATM platform is expected to be given to onboarding partners this month.

ATM Go has now more than 1,800 terminals and is available in 72 out of 81 provinces across the country.

“We see no sign of slowing down for the growth of transactions in our digital platforms,” according to Angelito M. Villanueva, RCBC executive vice president and chief financial innovation and inclusion officer.

Villanueva also expressed optimism that many Filipinos will still prefer transacting digitally even after shifting to the general community quarantine on June 1.

Tyrone Jasper C. Piad

Perspectives

Purpose moves to the forefront

F

rom the outset of the coronavirus disease 2019 (Covid-19), the vast majority of governments and businesses have been clear that they plan issues to put people ahead of profits. And, as companies around the world moved to retool their business models to support government response requirements, it quickly became clear that brands were already being judged by their actions and their purpose.

The upheaval only accelerated a trend that was already well underway. Consider this: according to a study by Edelman in late 2018, nearly two-thirds of consumers around the world said they would decide to either buy or boycott a brand based solely on its position on a social or political issue.

Company results further reinforce the importance of purpose. Brands that demonstrated a positive impact on people’s lives grew 2.5 times more (over a 12year period) than brands with a low perceived impact. A further report backlashes shows that ‘meaningful’ brands also generate higher returns on their key performance indicators—almost three times the purchase intent more than double the repurchase intent in existing customers. Not surprisingly, meaningful brands outperformed the stock market by 134 percent.

What Covid-19 has demonstrated is that customers want businesses to stand for something bigger than just the products they sell or the dividends they return to their shareholders. They expect the retailers they purchase from to reflect their values and to care about the same societal issues they do. And Covid-19 has given retailers ample opportunity to demonstrate their purpose.

This year, expect to see retailers start to focus on improving transparency across the entirety of their business. Particular focus, not surprisingly, will be on

those that help society respond and recover to the current health troubles. Those going the extra mile to support their customers and their employees through this challenge will undoubtedly come out the other side with greater brand loyalty.

That being said, customers expect their brands to do more than just talk a good talk. According to the “Meaningful Brands” survey, only around 38 percent of consumers think companies and brands currently communicate honestly about their commitments and promises. Recent backlashes against perceived instances of corporate ‘green washing’ suggest that consumers are setting a rather high bar for retailers to pass.

In 2020, expect to see the leading retailers move from having a purposeful brand promise to using their purpose as a guiding growth principle and decisionmaking lens. Simply put, smart retailers will use this critical period as a way to demonstrate that they live their purpose rather than just talking about it.

Journey to becoming purpose led: 1) Purpose as an isolated tactic: Begins with one-off activity such as CSR 2) Purpose as a societal brand promise: Longer-term commitment 3) Purpose underlying all firm-wide activities: A guidinggrowth principle 4) Purpose as a business led movement: Igniting the social movement with others joining the cause.

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.

Monday, June 8, 2020 B3

Corporate bond market sees rebound in 2nd half

By Tyrone Jasper C. Piad

T

VG Cabuag

@Tyronepiad &

@villygc

he corporate bond market may bounce back in the second half to fulfill refinancing obligations, a study by First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) noted.

In their report “The Market Call,” FMIC and UA&P revealed that corporate bonds trading volume slowed down in April to P4.7 billion from P6.3 billion the previous month.

Looking at year-on-year figure, however, the latest booked amount was higher compared to nearly P4 billion notched in 2019 for the same month.

“Corporate bond issuances may rebound in the second half but, most likely, simply to refinance existing debt, since firms have put on hold most expansion plans,” the report read.

Trading volume

The combined trading volume of top five firms issuing bonds registered at P1 billion in April, which is 22.8 percent of the pie.

Ayala Corp., which placed last in March, advanced to the top with bond trading amounting to P396.5 million, which showed 236-percent surge month-on-month.

In April, Robinsons Land Corp. announced that the over-subscription for its P10-billion fixed rate bonds were doubled to P10 billion,

bringing the offering to a total of P20 billion.

Aboitiz Power Corp, meanwhile, proposed the offering of P9.5-billion fixed retail bonds in the same month.

The issuance received “PRS Aaa” credit rating with stable outlook.

Overall, the bond market is still the “go-to” asset amid the coronavirus pandemic, FMIC and UA&P said.

Property developer

Ayala Corp. subsidiary Ayala Land Inc. (ALI) secured the approval of the Securities and Exchange Commission for its P10-billion fixed rate bonds.

Property developer ALI said it would use the proceeds of the float to augment its capital expenditures (capex) this year.

The said debt paper is part of the P50-billion shelf registration of the company, and is already the fourth tranche.

The company has so far raised some P21 billion out of its shelf registration.

The offer supplement dated June 2 covers fixed-rate bonds with a

principal amount of up to P6 billion, with an oversubscription option of up to P4 billion, which will mature in two years. The company will list the bonds at the Philippine Dealing and Exchange Corp. (PDEx).

The fixed-rate bonds shall be offered to the public at face value through the joint lead underwriters and bookrunners BDO Capital and Investment Corp., BPI Capital Corp. and China Bank Capital Corp.

ALI’s fixed-rate bonds shall be issued in denominations of P50,000 each, as a minimum, and in multiples of P10,000 thereafter, and traded in denominations of P10,000 in the secondary market.

Venture projects

The company said in its prospectus that proceeds of the bond offer will be for its current leasing projects and to acquire new land.

These include its capital infusion for the Ayala Land-Eton joint venture projects on Parklinks, land acquisition by Unity Realty and Development Corp. in Pampanga and also by Alveo Land Inc. also in Pampanga, Laguna, Cavite and Bulacan.

ALI in April said that it has slashed its capex by more than a third and said it will not launch new projects and rationalize any investments or land acquisition this year as it expects the lockdown will affect its financial performance.

Augusto Cesar D. Bengzon, the company’s CFO, said the company has slashed its capex by P40 billion to P70 billion from the previous P110 billion.

Getting real

IN 2019, ALI’s capex reached P109

billion.

“We have also decided not to launch any new projects this year.

We believe we have sufficient projects in our development pipeline to sell once the situation normalizes, given the P158.9-billion worth of projects launched in 2019,” Bengzon said.

“We recognize that we may miss out on some opportunities but we believe that this is the right decision to ensure that Ayala Land is in a healthy and strong financial position throughout this crisis, for however long it may persist,” he added.

The company also revised all its cash flow projections for the year, taking into account a possible slowdown in residential sales, the rent concessions that it provided to mall tenants, as well as the lower occupancy in its hotels and resorts portfolio.

Coupon rate

Likewise, Metropolitan Bank & Trust Co. (Metrobank) recently announced that it was able to raise P10.5 billion from its bond offering on the back of robust demand from investors.

Each bond carries a coupon rate of 3 percent and has a tenor of 1.25 years.

The bonds are set to be listed in the PDEx on June 24.

The recent offering is the sixth tranche out of the Metrobank’s P100-billion bond and commercial paper program.

FMIC, ING Bank N.V.-Manila and Standard Chartered Bank were tapped as joint lead arrangers for the transaction.

Metrobank has accumulated P70.5 billion from bond offerings since November 2018.

Guardians of the world economy PNB extends stagger from rescue to recovery fee waiver

T

he world’s governments and central banks are shifting from rescue to recovery mode as the deepest slump since the Great Depression shows signs of bottoming out.

After rolling out trillions of dollars’ worth of measures to prevent their economies and markets from collapsing, they are now doubling down with even more spending to backstop a recovery as coronavirus lockdowns ease. In what counts for good news these days, Bloomberg Economics’ global GDP growth tracker showed economies contracted at an annualized rate of 2.3 percent in May, less than the 4.8 percent slump in April.

“Policy makers are moving from triage to recovery,” Deutsche Bank Securities Chief Economist Torsten Slok said. “They are realizing that more fiscal support will be needed to households and small businesses to prevent this liquidity crisis from turning into a solvency crisis.”

The new wave of stimulus has both governments and central banks moving in sync to continue flooding lenders, markets and companies with cheap credit at an unprecedented pace.

The European Central Bank last week expanded its asset purchases by 600 billion euros ($677 billion) to 1.35 trillion euros, and extended them until at least the end of June 2021. And Germany’s government agreed another 130 billion-euro fiscal stimulus push and said it will back a proposed new 750 billion-euro European Union recovery fund.

“Action had to be taken,” ECB President Christine Lagarde said in a press conference.

Biggest splurge

It’s a similar story in Asia.

Japan is planning another $1.1-trillion worth of spending in its biggest splurge yet and the central bank in May called an emergency meeting to roll out 30 trillion yen ($274 billion) of loan support for small businesses.

China last week unveiled another 3.6 trillion yuan ($508 billion) in spending and South Korea’s 76 trillion won ($63 billion) ‘New Deal’ fiscal package is its largest to date.

In the US, lawmakers continue to debate extra fiscal stimulus and the Federal Reserve, which meets on June 10, has just launched a new Main Street Lending Program, the latest in trillions of support it has already poured into the economy and markets.

While the Fed is unlikely to signal any moves when its officials gather this week, many economists expect it to harden its commitment to easy monetary policy later in the year and perhaps even start pursing a Japanstyle campaign to control long-term borrowing rates.

The latest US jobs numbers give some hope that the stimulus unleashed so far is beginning to kick in. A record 2.5 million workers were added by employers during May while unemployment declined to 13.3 percent, wrong footing economists who had forecast widespread job losses.

Far from consensus

To be sure, there’s far from consensus that the latest wave of support will be enough to get growth back to where it was at the start of the year. Some of the steps being taken are merely to replace existing policies as they start to expire.

“It seems clear already approved packages are perceived to be not enough,” said Alicia Garcia Her-

rero, chief Asia-Pacific economist at Natixis SA. There are other concerns that monetary policy can only do so much to revive growth before it loses its potency.

“How does the Fed actually get money to millions and millions of households and small businesses, that is difficult to do operationally,” former New York Federal Reserve Bank President William Dudley told Bloomberg Television.

“It’s much easier to intervene in the capital markets where the Fed can rely on counterparties, primary dealers and others,” Dudley said. “It is much more difficult to lend one by one to millions of different entities.”

Return to austerity

Another risk is a return to austerity, even if it seems unlikely now. JPMorgan recently predicted a fiscal thrust of 3.3 percent of GDP this year and 1.5 percent drag next year.

US senators have put the brakes on a $3 trillion fiscal package that was approved by lower house lawmakers. China’s government has ruled out a return to the kind of large scale stimulus it rolled out after the global financial crisis, preferring to keep a lid on rising debt.

Still, because the crisis meant economies were forced into shutdown, much of the emergency response so far has been less about driving growth and more about avoiding total collapse. It’s that dynamic which is leaving governments with little option but to borrow harder.

“We shouldn’t look at the positive immediate growth impact of the opening up process as being the rate of growth that may last,” said David Mann, chief economist for Standard Chartered Plc. Bloomberg News

for online transactions

T

he Philippine National Bank (PNB) announced it is offering a waiver of fund transfer fees for InstaPay and PesoNet until June 11 to encourage more online and digital transactions.

The listed bank said this was in line with the call of Bangko Sentral ng Pilipinas to push for the use of digital platforms for fund transfers.

“We see the use of our digital channels gaining ground as customers learn more about the use of these services,” PNB said.

The bank is also urging its customers to transact via digital channels even though many physical branches are open to practice social distancing. PNB said this could help in containing the virus.

“Our goal is to get more of our customers into our digital platforms. Our branches around the country are now reaching out to customers who have not registered with internet banking or our mobile app,” it added.

This, as the bank observed a surge in digital transaction and enrollment.

In April, PNB announced that it has teamed up with RD Pawnshop to expand its cash remittance network. Under the partnership, customers may withdraw cash from 100 select RD Pawnshop branches across the country.

PNB said this can aid customers because most banks have adopted shortened service hours amid the pandemic, noting that access to cash has become more urgent.

Tyrone Jasper C. Piad

B4

Show BusinessMirror

Monday, June 8, 2020

Clockwise: Louie Ignacio, Richard Somes, Bea Alonzo, Tippi Ocampo and Nelia Silverio

www.businessmirror.com.ph

Painting purpose and joy into their lives

Today’s Horoscope

By Eugenia Last

z

CELEBRITIES BORN ON THIS DAY: Maria Menounos, 42; Kanye West, 43; Julianna Margulies, 54; Keenen Ivory Wayans, 62.

Happy Birthday: Revisit how you want to structure your life as you move forward. Picking up knowledge and skills that will help you find a better position or encourage you to head in a direction that offers greater potential is favored. Your memory will serve you well when dealing with situations that can influence your position, reputation and prospects. Your lucky numbers are 2, 8, 17, 21, 26, 34, 45.

a

ARIES (March 21-April 19): Rely on your ability to take hold of a situation and turn it into something advantageous. Don’t sit back and wait; use your skills to outmaneuver someone who is pressuring you to do something you don’t want to do.

HH

M

UCH has been written about art as an outlet for our feelings. We have heard and read about people using art as an escape, as an expression that is easier to convey than words, and as part of one’s healing process. In these extraordinary times when the future seems uncertain, perhaps it holds true that there is no such thing as a creative and noncreative person anymore, there are only those who use their creativity and those who don’t.

The lockdown has kept most of us in our homes with a lot of time to allow us to decide on what to do.

Some have discovered cooking, others have turned to home workouts and keeping healthy. Some friends have started reading again, while others have found joy in gardening and growing plants.

There are a lot of artists in our midst, and while others continue to pursue their favorite art forms, there are also some who have channeled their artistic energies into painting.

In his Quezon City abode, filmmaker and television director Richard Somes found joy, passion and peace in painting. In less than three months, the well-loved director has finished around five to six big paintings which we think he should exhibit in a one-man show when things are sort of back to normal again.

“If there is one thing this pandemic taught me, it is finding my true self in the darkest of times. In isolation and confinement, I have discovered things inside me that I can still be good at—writing, cooking, or just simply going back to the things that brought me joy in my childhood, which is to draw and paint.

Somes, who recently decided not to continue as the director of the military-themed afternoon TV series A Soldier’s Heart when work resumes, admitted that he still wrestles with fear and uncertainties every day.

“The world is in chaos, and it’s sad. But I still hope not to lose my grip on the things that define me as me.”

GMA director Louie Ignacio continues to get inspiration from stories of kindness, generosity, selflessness and faith during this quarantine period to churn out wonderful works of art.

“If I am happy, I choose red, greed and yellow. If

b

TAURUS (April 20-May 20): An opportunity will grab your attention. Do whatever it takes to learn and to apply your skills to fit the qualifications necessary to up your game. Make a move that will surprise others and position you for advancements. HHHHH

c

GEMINI (May 21-June 20): Push harder for what you want. Pursuing the necessary research will encourage you to take on something that excites you. Personal goals are within reach if you believe and trust in your ability to finish what you start. HHH

d

CANCER (June 21-July 22): Look for alternative ways to solve a work-related problem. Modify how you have handled matters in the past to fit trends. It’s how you go about doing things that will help you stand out. HHH

e

LEO (July 23-Aug. 22): Don’t make an unnecessary change. Work with what you already have, and you will save money and get things done on time. Showing off won’t bring the returns you want, but living up to your reputation and promises will. Self-improvement is encouraged. HHH

f

VIRGO (Aug. 23-Sept. 22): A steady pace will help you bypass an argumentative situation. Stick to what you know and do best, and don’t let anyone bait you into sharing your personal opinions. If you want to advance, keep politics and religion out of your conversations. HHHHH

I am inspired, I lean toward blue, gold and orange. If I am sad, I pick up gray and ash hues and, mix black and white. If I am angry, I mix all the colors until they turn into chaotic mud. I paint according to my mood, I create as my inner voice dictates, “ he shared.

Fashion designer Tippi Ocampo has kept innumerable journals since she was a child, and even now she still keeps these to hold her random doodles, illustrations, thoughts and rants. “Since my travel journals have been currently shelved, my dreams expansive and my journals filled, I’ll let my dreams allow me explorations of a different kind,” she wrote.

And Ocampo took her brush and whatever leftover paint she could find and started putting colors and hues and shapes to her canvas.

Socialite and businesswoman Nelia Silverio also took to her brush and paints and canvases. She paints a lot of flowers and fruits and colorful subjects “It’s my

way of finding balance to the many negative energies brought about by this pandemic, and it’s my little way of channeling my energies into an activity that makes me happy.” Silverio recently welcomed the birth of her grandson Matthew. “Painting makes me happy, being a lola gives me joy!”

Then there’s actress Bea Alonzo, who posted in her social-media account that she has also started painting. “I’m trying different things in this unprecedented time. Never even thought of painting before. It’s like reading a book—you are taken to another world, a world where you are the only one allowed to enter. It’s an escape. It makes my heart happy.”

Truly, painting is one good way of running away momentarily without having to leave home. Choose what heals and restores you. Do what makes you happy. n

GMA Regional TV hits 100K-subscriber mark on YouTube GMA Regional TV (GMA RTV, www. gmaregionaltv.com), the regional arm of leading broadcast company GMA Network, marks another milestone as it recently reached 100,000 subscribers on online video platform YouTube.

Launched on February 26, 2016, GMA RTV’s YouTube channel is the only platform that made various GMA RTV programs and videos available to netizens anytime, anywhere. These original content

include daily newscasts which previously aired on GMA RTV local channels such as Balitang Amianan, Balitang Bisdak, One Western Visayas and One Mindanao. Netizens also get to watch GMA RTV’s festival coverages and specials, as well as GMA RTV Presents.

“We are proud to reach our 100K-subscriber mark on YouTube and we want to share this achievement with every Kapuso netizen who made this possible,” said GMA

Regional TV Vice President and Head Oliver Amoroso. “Videos featured on GMA Regional TV’s YouTube channel mirror the story of every Filipino in every corner of the Philippines. We are happy that through this platform, we are able to bring such local stories to all our Kapuso all over the world.

And as GMA Network celebrates its 70th anniversary, GMA RTV is committed to produce relevant content both on-air and online because local

news and stories matter.”

GMA RTV has been bringing local news and information that matter to Filipino viewers nationwide with its local newscasts all over the country, and just recently with the morning shows GMA Regional TV Live! in Central and Eastern Visayas and At Home with GMA Regional TV in Mindanao.

At the same time, more viewers get to watch these local programs via GMA Regional TV Strip that airs weeknights on GMA News TV at 9:45 pm.

g

LIBRA (Sept. 23-Oct. 22): Put more effort into honing your skills and making sure that you are presenting who you are and what you can do in the best way possible. Don’t exaggerate or make unrealistic promises. HH

h

SCORPIO (Oct. 23-Nov. 21): Use experience and your intuition to help you make the right decision. Don’t feel you have to contribute money to something that eludes you.

Invest in something you want to pursue, not someone else’s dream. HHHH

i

SAGITTARIUS (Nov. 22-Dec. 21): Confusion will set in if you are gullible or make premature assumptions about someone. Take the time to find out exactly what’s going on before you say something you will regret. Evaluate how you feel about someone before you share your intentions. HHH

j

CAPRICORN (Dec. 22-Jan. 19): Think matters through, and put your plans in motion. A positive change at home will add to your comfort and convenience. Handle situations with peers and partners intelligently, and you will get your way. HHH

k

AQUARIUS (Jan. 20-Feb. 18): An adjustment at home will make a difference to how well you take care of yourself physically and emotionally. Don’t give in to someone pressuring you to make a change that will jeopardize your health or well-being. Say no to indulgent behavior. HHH

l

PISCES (Feb. 19-March 20): Diversify, and you will find a unique way to use your skills and talents to get things done on time. Someone will be jealous of your accomplishments and the attention you receive. Include everyone in your success in order to avoid opposition. HHHH Birthday Baby: You are entertaining, imaginative and proactive.

You are flexible and alert.

‘commerce center’ by evan kalish The Universal Crossword/Edited by David Steinberg

ACROSS 1 Don’t Cry for Me Argentina musical 6 Not too many 10 Toni Braxton’s vocal range 14 Easy basket that rhymes with Pippen 15 Achy 16 Bird on a Canadian coin 17 Con pro (see letters 4 to 7) 19 Missing from base, briefly 20 “Affirmative” 21 Certain fishing bait 22 “As a final note...”

24 Attend 25 Short Japanese poem 26 What a professor who rarely gives A’s has (5 to 9) 30 Each 32 See 47-Down 33 Actress Long or Vardalos 34 Greenish-blue hue 35 Locations 37 Teeth on a wheel 38 Six-legged pest 39 Name that’s a Roman numeral followed by its value

0 Like many a stuffed toy 4 41 Wishes undone (5 to 9) 45 Spot to moor 46 Response to “speak,” maybe 47 Beer brand from Holland 49 Time traveler’s destination, maybe 50 Treasure ___ 53 Lion’s den, e.g.

54 “Fingers crossed for all of us” (4 to 7) 57 Soothing lotion ingredient 58 Paleo diet staple 59 Wanderer 60 Three squared 61 “If all ___ fails...”

62 Choreography elements DOWN 1 Web site for artisans 2 Part of VP 3 Hoppy brews, for short 4 “Tiny” Dickens character 5 “A is to B as C is to D,” e.g.

6 Space City MLB team 7 ___ gras 8 Hosp. areas 9 Regions sometimes called natural

sponges 10 State whose northernmost city was renamed Utqiagvik 11 Sign of widespread disinterest 12 Screwdriver, for one 13 Just 18 The “R” of RBG 23 Opera set in Egypt 24 “You go, ___!”

25 Hearty’s partner 26 Ability Superman uses to melt objects 27 Spud 28 Is really into 29 Pageant accessory 30 List-ending abbr.

31 “___, vidi, vici” 35 “I’d like to know...”

36 When some WNBA games end, for short 37 Treble ___ 39 Speck of land 40 Octet in an oxygen atom 42 Order often served with sides 43 Computers in a landfill, e.g.

44 “Gee..”

47 With 32-Across, M*A*S*H star 48 Timbuktu’s country 49 School orgs.

50 Widely shared video, perhaps 51 “Now!” 52 Pea holders 55 Deep-sea wriggler 56 Cannabis Solution to Friday’s puzzle:

Style

BusinessMirror

www.businessmirror.com.ph

Monday, June 8, 2020

BRITISH BRAND NOW DELIVERS FASHION, FOOD FANS of Marks & Spencer in the Philippines can now get their hands on thousands more clothing, beauty and food products through its new web site.

With more than 13,000 pieces available to buy online, www.marksandspencer.com.ph brings this season’s latest in-store collection across a variety of colors, styles and sizes at the click of a button.

Shoppers around these parts can now discover a wide range of M&S’s affordably stylish wardrobe essentials for women, lingerie, men and children.

The online range includes a variety of styles and several types of fit for men and women, as well as an extensive range of toiletries and fragrances.

Alongside this for the first time, customers will be able to shop an exclusive range of much-loved M&S food items, from biscuits, chocolates to juices, wines and more on the site.

Anthony Huang for Marks & Spencer Philippines said: “After months of anticipation, we’re excited to celebrate the launch of the M&S Philippines web site, bringing our quality range of clothing, beauty, and food products directly to customers’ doors.

With convenience and choice topping the agenda for Philippine shoppers, the new site is set to be a huge hit with our busy customers, who can snap up lots of stylish online exclusives and much-loved M&S food products.”

With a convenient choice of delivery, customers throughout the country can order their clothing, beauty, and food favorites straight to their home or work address. Early-bird shoppers who sign-up to M&S’s mailing list will also bag a special offer on their first online orders.

All online products will be priced in Philippine peso with PayPal as payment option. Paypal supports Visa, Mastercard, Amex and Discover.

CHARLOTTE TILBURY, whose famous beauty products include the Magic Cream moisturizer and Pillow Talk lipstick.

Charlotte Tilbury bags a makeup fortune with star power

BY TOM METCALF & AMANDA GORDON Bloomberg News

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HARLOTTE TILBURY, with her wavy red mane and layers of gold necklaces, greeted her “darlings” recently during a live Instagram chat with actress Sofia Vergara.

The celebrity inspirations and social media sensibility are among the beauty brand’s strengths, and many of the products have British pizzazz: there are lipsticks called Duchess and Queen, and another called JK Magic, named for author J.K. Rowling.

“I’ve done her makeup many, many times,” Tilbury said in the chat with Vergara. “I love Harry Potter.”

The makeup artist, who was raised on the Spanish island of Ibiza, is now a UK business luminary after Barcelona-based perfume maker Puig said it would acquire a majority stake in the label, according to a statement Thursday. Byron Trott’s investment firm BDT Capital Partners is buying a minority stake.

While financial details weren’t disclosed, a person familiar with the matter said the deal values the business at more than £1.2 billion ($1.5 billion).

“We’ve reached a pivotal point in our growth since launching seven years ago, and we’re looking forward to unlocking new opportunities with Puig,” Tilbury said in the statement.

The transaction will make Tilbury, 47, one of Britain’s richest female entrepreneurs. She’s estimated to own about half the firm, regulatory filings show. The company’s press office didn’t reply to messages seeking comment on Tilbury’s net worth.

Tilbury, who secured an investment from Sequoia Capital in 2017, founded her namesake brand in 2013 after making her name working with celebrities including supermodel Kate Moss and actress Penelope Cruz. Tilbury is retaining a significant minority stake in the business famous for products, such as Magic Cream moisturizer and Pillow Talk lipstick. Many of her products shimmer, or promise to smooth out pores, or plump lips. One fragrance is titled “Scent of a Dream.” Her social media savvy has long boosted the brand. A YouTube tutorial recreating the look she gave attorney Amal Clooney for her wedding to actor George Clooney attracted 2.6 million views. She has 3.5 million Instagram followers.

Some of the celebrities she got to know along the way are poised to benefit, too. Fashion photographer Mario Testino and model Stella Tennant were among shareholders listed in a regulatory filing last year.

The cosmetics industry has given rise to several major fortunes in recent years. Coty Inc. said it’s in talks with Kim Kardashian West for a possible collaboration, just months after the company completed a $600 million deal with the reality TV star’s sister, Kylie Jenner.

In South Korea, Kim Jung-woong’s GP Club Co. was valued at $1.3 billion after Goldman Sachs Group Inc. purchased a 5 percent stake in the face-mask maker in 2018. ChinWook Lee’s Have & Be Co., which specializes in skin-care products, was acquired by Estee Lauder Cos. last year for $1.1 billion.

The figures still pale in comparison with the world’s biggest cosmetics fortunes. They include Francoise Bettencourt Meyers, the richest woman in the 500-member Bloomberg Billionaires Index, whose $60.5 billion net worth is derived from her stake in L’Oreal SA. Estee Lauder has made the Lauders one of the world’s richest families. ■

really is my go-to for events: on my fair-skinned friend, it’s a nice pinkish nude; on me, it’s a pale pink that pulls slightly purple. This lipstick has a matte texture that is not drying.

■ SCARLET ROUGE. This satin lipstick is a medium red that’s creamy and light on the lips. If there is a red that’s neutral, this one is it. I love how it is nondrying despite the semimatte finish and that for a red, it fades well and leaves an even-looking stain behind.

■ CHERRY LUSH. This is also one of my favorite reds. Cherry Lush has a pearl finish that’s not so obvious. It just looks like a sheen. You can also blot this upon application.

■ BLACK DAHLIA. I’ve always wanted a dark burgundy lipstick and my friend gave me this. I’ve had Black Dahlia for a while and only found the courage to wear it pre-ECQ. I thought this semimatte lipstick would apply patchy but it didn’t. I love how opaque it is. I thought it would be shockingly dark but it wasn’t. It’s actually OK to wear during the day.

Sadly though, Black Dahlia is a limited-edition shade.

■ INDIAN ROSE. This medium rosy pink in a matte finish is a favorite of many. I use this when I have

heavy eye makeup on. Otherwise, it’s too light for me.

On fairer-skinned girls, it’s a nice nude lipstick for everyday wear.

■ JASMINE ROUGE. This pinkish red looks dark plum on me for some strange reason. If there is one lipstick that makes lips look luscious, this is it. It’s really moisturizing and creamy but not slippy. It has a slight sheen that isn’t bothersome.

That sound of that click is everything A FRIEND, who handles e-commerce for a number of beauty brands, revealed that during the enhanced community quarantine (ECQ), online sales of makeup and skin-care products were higher than expected.

I’m not really surprised. How many times have I been tempted to buy Clinique Moisture Surge 72Hour Auto-Replenishing Hydrator while we were quarantined? As I write this, the Lazada 6.6 Bounce Back Sale is here and I’m tempted again.

It’s not the only thing that’s tempting me.

Tom Ford’s Most Wanted iconic Lip Color shades— Scarlet Rouge, Impassioned, Velvet Cherry, Wild Ginger and True Coral—are now on www.rustans.com, together with the brand’s best-selling Private Blend fragrances and makeup essentials.

Before the ECQ, one of my favorite things to do whenever I had an event in Makati was to go to Rustan’s and, swatch the lipsticks and sample the fragrances at the Tom Ford counter.

If you know me, you’ll know that I love Tom Ford, particularly the lipsticks. So I’m always asked: Are the lipsticks worth it? I’ll be honest. My Tom Ford makeup and fragrances are gifts from a good friend and the brand. About 70 percent are from my friend and 30 percent are from the brand. But even without these gifts, I would buy the lipsticks. I wouldn’t have as much though.

The Tom Ford lipstick packaging is heavy and luxurious. What I like most about the square tube is the click when I close it. It’s the lipstick equivalent of closing a BMW sedan door. The sound alone screams luxury.

Anyway, here are my favorite lipsticks from Tom Ford Beauty:

B5

■ DOMINIC. This dark red is from the Lips & Boys Lip Color collection. It’s a mini version of the Tom Ford regular lipstick, which makes it perfect for those who carry smaller bags. If you’re wearing jeans, this would fit into your pocket. Dominic is one of my favorite red lipsticks. It has a satin texture, which translates to semimatte. You can blot it with a tissue after application for a more matte look or apply sparingly and spread the product with your pinky finger so it looks like a stain.

■ CASABLANCA. This is described as a “reddened plum” but on me, it’s a rosy brown. This is one of my favorite lipsticks and probably Tom Ford Beauty’s best-selling lip color. I love its creamy texture and how it fades on the lips nicely and evenly. I brought several lipsticks when I traveled to Europe in February but I used only this because it didn’t make my lips dry at all.

This has a bit of a shine but it isn’t glossy.

■ PUSSYCAT. This is another global best seller.

Described as a cool-toned pinky-plum, Pussycat is a challenge for me. I need to wear more eye makeup than usual to make it pop. When that happens, it

B6 Monday, June 8, 2020

Republic Cement turns mobile lab into rapid test truck Valenzuela JODAs gear up for jeepney modernization, received food packs while operations still on hold

A sigh of relief: 1,430 jeepney drivers in Valenzuela City were provided with Alagang Valenzuelano Food Packs, an aid to displaced jeepney drivers while PUJ operations remain unclear this quarantine period, June 03, 2020. (Rodrigo de Guzman/VC PIO)

W

ITH each day considered as a challenge to make both ends meet for jeepney drivers and their families, Mayor Rex Gatchalian led the distribution of the food packs before the officers and members of the various Jeepney Operators and Drivers Associations (JODAs) with terminals in Valenzuela City on June 4.

Taking the time to visit seven (7) jeepney terminals in the City, Gatchalian also inquired of the JODAs’ plans on the modernization of jeepneys or the Public Utility Vehicle Modernization Program (PUVMP), promising that the City Government will assist and walk them through the entire process should they decide to push through on having modernized units.

Among the beneficiaries were the officers and members of Karuhatan Gen. T. de Leon - Ugong Operators and Drivers Association, Inc. (KARTUJODA), Malinta - Caloocan - Novaliches Jeepney Operators and Drivers Association, Inc. (MACANOJODA), Novaliches Malinta Jeepney Operators and Drivers Association, Inc. (NMJTSC), Malinta Valenzuela - Novaliches Operators and Drivers Association, Inc. (MAVANODA),

Malanday - Polo - Paco Operators and Drivers Association, Inc. (MBVJODA), Meycauayan - Lawang Bato - Punturin Bignay Jeepney Operators and Drivers Association, Inc. (MELAPBJODA), and Alliance - Valenzuela - Meycauayan Jeepney Operators and Drivers Association, Inc. (AVAMEJODA).

Mayor REX also encouraged the operators and drivers to keep an open mind about jeepney modernization.

Jeeps in jeopardy, with the resumption of operations of public utility jeepneys (PUJs) still on hold despite the declaration of General Community Quarantine (GCQ) and the “traditional” jeepney phaseout posing an apparent threat amid the COVID-19 pandemic, Valenzuela City sees to it that the City Government feels the struggles of the displaced jeepney drivers and will gladly assist their respective JODAs on applying for the jeepney modernization program.

The Department of Transportation (DOTr) pioneers the PUVMP of the national government with the purpose of pushing for the country’s public transportation system to be more efficient and environmentally friendly by 2020.

JODAs have until the December 2020

to consolidate their franchise and form cooperatives or else they forfeit the chance to be granted franchise and operate in their routes.

However, modernization comes with a hefty prize. Each modernized jeepney costs anywhere between Php 1.2 to 2.2 million and is fitted out with a Global Positioning System (GPS), a closed-circuit television camera (CCTV), an air-conditioning unit, WiFi access and a television. It also charges a higher fare compared to a regular jeep, and is soon expected to integrate an automated fare collection system using coins and Beep cards.

Jeepneys will only be permitted to ply the roads beginning June 22, with modern jeeps or e-jeeps given priority over the old, “traditional” ones.

"Hindi ko kayo pipilitin kung ayaw ninyo. Pero kailangan nating maging proactive. Hindi matatapos 'tong usapan ng modernized jeep. Kahit payagan kayo ngayon, laging may banta na huhulihin kayo... Hindi pwedeng hindi kaya e. Kasi lahat naman sa mundo mahirap e. Pero pag hindi mo sisimulan, walang mangyayari sa atin," the mayor told the operators.

He is expected to meet with the JODA presidents again to further discuss this matter.

As of January 2020, three (3) transport cooperatives have already applied for the PUV modernization loan program that are operating in the city. Bank financing through the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) were granted to the cooperatives namely, Metro Valenzuela Transport Service Cooperative, Inc. (METROVAL) with 17 units, Novaliches-Malinta Jeepney Transport Service Cooperative (NMJTSC) currently with 23 units and another 29 units to be turned over this year, and Blumentritt Transport Service Cooperative.

"We will make sure that in the meantime that they cannot earn a living, food packs will be given to sustain their family's needs, for as long as the city can… Will also help them comply with the national government mandate on modernizing," Gatchalian said.

Republic Cement’s ARAW Truck, or Antibody Rapid Testing on Wheels, provides access to COVID-19 rapid antibody testing through partnering with healthcare providers and delivering a safe and convenient testing facility for customers, contractors, and communities.

R

EPUBLIC Cement, a leading construction solutions provider in the country, recently launched the Antibody Rapid Testing on Wheels (ARAW) Truck to help provide easy access to COVID-19 Rapid Testing to its customers, contractors, and communities.

Designed as a public service, the ARAW Truck provides a safe and convenient testing facility by bringing the testing straight to Republic stakeholders. Republic coordinates and partners with the chosen healthcare and testing provider of the customer, contractor, or community and provides transportation and logistics support free of charge in order to get the tests where they need to be as quickly as possible. The initiative also helps stakeholders in the construction sector comply with government directives to test employees before return to work.

By implementing additional stringent health and safety precautions, the truck allows for the increased protection of health workers, minimal PPE wastage, easy disinfection, organized unidirectional flow for entry and exit supporting social distancing, and provides an area separate from offices or public areas for testing.

“Deploying the ARAW Truck is an initiative that is in our DNA. It brings together the two things that is at the very core of all we do: health and safety and our strong commitment to nation-building and supporting the country through this crisis,” shares Republic Cement CEO Nabil Francis. “Now, more than ever, it is important for us to evolve and adapt the ways we provide value to our stakeholders in order to support industry’s transition to a new normal together.”

Powerful & Independent Women in PR, Advertising and Digital Marketing

Manila Marriott brings Father’s Day treats to your home!

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O man deserves more loving than all dads in the world, and if you’re still looking for ways on how to turn around Dad’s day, then Manila Marriott just got two big feasts fit for the real MVP. Celebrate Father’s Day right at home with Dad’s Backyard Style Pork Roast Package and Gentlemen’s Grill Tomahawk Package.

Manila Marriott cooks up a treat for the king with Dad’s Backyard Style Pork Roast Package for Php 3,500 nett which includes 8 Spiced Pork Belly Roast (5kg) with Rosemary Garlic Sauce (400ml) good for four to six persons. Steak-loving dads is also up for a meaty surprise with the Gentlemen’s Grill Tomahawk Package for Php 5,500 nett that includes Grilled Certified Angus Beef Tomahawk (30oz) Frenched cut bone in rib eye seasoned with CRU spice served with Black Peppercorn Sauce (400ml), and Marriott Cafe’s Signature Sautéed Tiger Prawn Gambas (12 medium size prawns) good for two to four persons. Both packages come with chef crafted side dishes from the Baked 3 Cheese and Macaroni (1kg), Garlic Crushed Potatoes (1kg), Green Beans Fricassee (1kg), Grilled Mediterranean Vegetables in BBQ Glaze (1kg) to the Homemade Signature Classic Pecan Pie. To top it off, just add Php 980 nett for a special Father’s Day sixinch round chocolate cake in Maracaibo sponge and mousse, chocolate crumble and glaze decorated with edible chocolate tools to show your appreciation for Dad.

I Enjoy Marriott Signature Red Velvet Philippine Independence Cake and donate to Save the Children

Father’s day or not, who better be that hero than dad? But just like how most fathers are superheroes to their children, apart from Dad’s day, this coming Independence day let’s express our deepest gratitude to the heroes amid the pandemic. Give hope and share a meal. Purchase a meal for your chosen frontliners, charity, or organization, and Manila Marriott will have it prepared and delivered. Choose from two menu options of Pork Adobo, Bokchoy, Boiled Egg, and Garlic Rice or Boneless Chicken Inasal, Baguio Beans, Boiled Egg, and Steamed Rice—both comes with a bottle of water for only Php 220 for every meal, minimum of Php 10,000. You can also enjoy a cake for charity when you buy an eight-inch Marriott Signature Red Velvet

Make Father’s day extra special with a decadent cake

Philippine Independence Cake available from June 12 to 14 for Php 2,000 where a portion of the sales will be donated to Save the Children.

Manila Marriott is open for pickup and take-away. Just place an order, settle the payment through BDO bank transfer or Paymaya, wait for the SMS confirmation, pick-up at the hotel, and receive your goods. Father’s day offer is available from June 20 to 21, pre-order is required.

For inquiries, orders, and more information on latest offers of Manila Marriott call 0917 659 5420, visit www. manilamarriott.com. To join ongoing conversations, follow @manilamarriott at Facebook, Twitter, Instagram, and join Make It Marriott on Viber.

NDEPENDENCE Day is just around the corner and what better way to celebrate independence than by empowering yourself by learning from some of the country’s most powerful and independent women in digital marketing and advertising.

These women have shown that not even a pandemic can stop them from staying on top of their game. They have proven to be innovative and truly a leader in their field by showing how adaptable they are to any situation thrown at them, be it a pandemic or the ever-changing times.

Featuring 3 amazing speakers - Miss Amor Maclang (Co-Founder GeiserMaclang), Miss Venus Navalta (CEO of IPG Mediabrands) and Miss Margot Torres (Managing Director of McDonald’s Philippines,) this talk is bound to be a great source of life hacks, amazing work tips, and inspiring stories. Joining our powerhouse cast of speakers is host Miss Issa Litton (Head Trainer, COO of 1Lit Corp) who is a powerful woman herself and one of the most in-demand host in the country.

Amor Maclang is an architect and a risk management strategist. She leads businesses that make a positive impact on the country.

She is also a champion for the plight of farmers and is helping to raise awareness for their plight. She is also co-founder of Geiser Maclang, one of the strongest marketing, PR, communications, and public affairs companies in the Philippines.

Venus Navalta is a highly respected media industry leader, working with the world’s biggest communications companies, winning 9 Media Agency of the Year awards as well as honors from Cannes, Spikes and

FOMA. After her second retirement and at age 56, she founded the global company, IPG Mediabrands, in the Philippines and changed her story. Venus is an advocate of the arts and rice sufficiency.

Margot B. Torres is the managing director of one of the country’s leading fast-food chain, McDonald’s. With over 30 years of experience in marketing, communications, and management, Margot is a force to be reckoned with. Margot recently received the CEO Excel Award from International Association of Business Communicators as well as Asia Marketing Federation’s Women Marketer of the Year.

Celebrate Independence Day with Powerful & Independent Women in the world of Digital Marketing & Advertising on June 12, 2020 (2:00PM) organized by PMCM Events Management with CEO & Founder Miss Mys Sandico.

Mys believes that these women make a big difference in any industry they are in and their success stems from a combination of personal drive and ambition. Paired with the full support of their family, friends, and the people they work with, these women create an impact on their work that makes the life of people around them better.

Livestreaming https://www. facebook.com/pmcmevents/ Raffle Prizes will be given away to viewers after the Q&A so stay tuned until the end of the program. #LetsSupportLocalEvents, #PMCM2020, #ResilientEvent Organizers, #HappyIndepdenceDay2020 For more details call PMCM Events Management at 09178344978

Marketing BusinessMirror

www.businessmirror.com.ph

Monday, June 8, 2020 B7

This is the time to get creative “T

PR Matters

By Abigail Ho-Torres

his is precisely the time when artists go to work.

There is no time for despair, no place for self-pity, no need for silence, no room for fear. We speak, we write, we do language.

That is how civilizations heal.

I know the world is bruised and bleeding, and though it is important not to ignore its pain, it is also critical to refuse to succumb to its malevolence. Like failure, chaos contains information that can lead to knowledge—even wisdom. Like art.”

–Toni Morrison

WHEN writer and Nobel Prize awardee Toni Morrison wrote those lines in an article titled “No Place for Self-Pity, No Room for Fear” on The Nation in 2015, the world was not in a crisis as it is now. But those words from half a decade ago still ring true today. We are in the midst of a global pandemic. We are all uncertain of what the future holds. These are the times when creativity is needed the most: to help the world’s people settle into the so-called new normal.

For the first time in our lives, those of us who are not frontliners have been forced to stay at home, in an effort to slow the spread of the virus. Social beings that we are, finding ourselves suddenly quarantined has had different effects on us, good and bad: some got bored, others got anxious; some got productive, finally getting around to doing that thing that they really wanted to do, but had no time for; and there are also those who thrived in isolation.

Whatever the case may be, I think it is safe to say that we all looked for things to do—to keep our bodies and minds busy so we won’t need to dwell on the bad news. Thank heavens for the Internet, and for artists and brands that ramped up their creativity to help us keep our sanity.

Part of the Bayanihan Musikahan web site showing the impressive numbers the campaign has generated.

Lea Salonga sings her heart out for the second time on the Bayanihan Musikahan stage. screenshot from video on

Robert Alejandro sketches during one of his online art sessions. screenshot from video on Robert Alejandro’s Facebook page

Bayanihan Musikahan Facebook page

The show must go on

Performers were among those displaced by this pandemic, but those who can were among the first to offer help to others. A series of online concerts started airing on Facebook in March, at the start of the quarantine season, in an effort to raise funds for food, protection kits, and barangay quarantine spaces for frontliners and marginalized Filipinos.

Bayanihan Musikahan has since raised over P90 million in donations, providing aid to more than 90,000 families all over the country. And it all started from simple exchanges on Facebook walls—the right people asking each other “what can we do to help?”

According to National Artist for Music Ryan Cayabyab, who also happens to be the face of the campaign, the four people who started the ball rolling—multi-awarded songwriter Trina Belamide, art critic and curator Marian Pastor Roces, events and production company head Jay Adlao Block, and educator Dan Songco—all have “that pusong dalisay [pure heart] to sincerely put time and effort to help our most vulnerable brothers and sisters.”

“I am just so lucky, and very happy that I got into this project. My role is to give the project a face, and to help mobilize the performing artists’ community. If it weren’t for the artists’ gung-ho attitude, we would not have pushed ourselves this far. And if it weren’t for all those companies who donated and the individuals who dug deep into their pockets, we clearly would have not pushed ourselves, again, this far. It was the civilian action doing its thing, and the wheel rotated so fast that we almost could not catch our breath. It was breathtaking and exhilarating, seeing all the people coming together for this focused cause,” Cayabyab related.

Bayanihan Musikahan had its last show on May 30, capping weeks of performances from more than 200 artists. Aside from frontliners and

Lisa Macuja-Elizalde sees online ballet classes bringing the art closer to the people. screenshot from video on Lisa Macuja-Elizalde’s Facebook page

marginalized Pinoys, the campaign also gave back to members of the live performance industry who suddenly found themselves jobless. But more than the donations raised, what Bayanihan Musikahan did for the thousands of people who watched the performances, myself included, was provide a sense of hope and some semblance of normalcy.

Art therapy

Another form of art that has taken over the Internet these past several weeks is the visual kind. Awardwinning artist and Papemelroti coowner Robert Alejandro has been hosting art sessions on his Facebook page since the start of the lockdown.

Although no stranger to teaching art, having hosted children’s TV art show Art Is-Kool close to two decades ago, he admitted to being very nervous at the onset, as this was his first time to hold art classes online.

“I just saw a post from a foreign artist on Instagram giving a live online art class, and I thought it was a great idea. I was very nervous the first time I did it,” he related. “As corny as it may sound, my classes are an expression of love, gratefulness, and care. I started the very first day of the lockdown, and we’ve done so much art already.”

His art classes have attracted children and adults alike, with grateful mothers even posting about how the classes have helped their children cope with boredom and uncertainty.

“The parents and children are so appreciative of the classes. I think

having fun, a bit of learning, and a routine are very important in these strange, anxious times. The classes give a sense of stability and happiness, too,” he said.

The local comics community, through Komiket, has also been offering various creative classes to help people feel better during these trying times. Komiket is the country’s biggest local comics and art market, and has been mounting Comic Book Creator’s Workshops since 2015.

According to author, filmmaker, and Komiket cofounder Paolo Herras, these free online classes are also a first for Komiket. Classes that have been offered so far range from the technical to the process-driven.

Some workshops, like Creativity for Healing and Art Tambays: Comics as Journal Therapy, are geared more toward mental and emotional health.

“As we were all locked down with our worries, fears, frustrations, and anxieties, Komiket wanted to contribute mental and emotional support by offering free creative workshops. Through these small acts of sharing, we wanted to make the world feel a little bit better,” he said.

Keep movin’

For those who want a little more movement, prima ballerina and Ballet Manila artistic director Lisa Macuja-Elizalde holds online classes via Facebook, both for a minimal fee and in support of various fundraisers. Most of her classes are for her school, The Lisa Macuja School of Ballet.

“The idea came about when I started teaching the company three times a week in order to keep everyone in shape and keep morale high.

We advertised online that you could take classes with the company for a small fee. We had many enrollees, so we decided to offer it to students of all capabilities and training levels as well,” she said.

What’s good with taking online ballet classes thrice a week, she said, was the structure it provided a person’s day.

“I think it’s important to have some form of schedule or structure to your day. Attending an online ballet class three times a week gives you some sort of schedule to look forward to. It also helps you move and get the endorphin rush of moving and dancing to music. And it’s also a form of social interaction with a teacher and ballet classmates, even if it is through a screen. We are all learning together,” she related.

While these online classes were spurred by the lockdown, she said that because of the public’s good reception, these would continue even after the lifting of the quarantine.

This is also seen helping stoke people’s interest in ballet.

“That’s one of the reasons we are doing the online classes: it builds a larger community for ballet, whether as dance students, or audience members, or supporters of the performing arts. The reach of online classes is helping, for sure,” she said.

If ballet is not your thing, you can opt to join online exercise classes.

Health-care service provider PhilCare, through its Wellness from Home campaign, seeks to redefine the concept of working from home by throwing fun workouts into the mix.

PhilCare President and Chief Executive Officer Jaeger Tanco related that even before the imposition of the quarantine, the company had already established various programs to help ensure that its clients lived healthy lives. Among these initiatives were yoga lessons, cooking demos, personality development classes, and health lectures—all of which were conducted in clients’ offices.

But when the quarantine made doing all of those impossible, he said PhilCare had to think outside the

box if it wanted to continue serving the health and wellness needs of its customers.

“We decided to concentrate on fitness and exercise videos because of the feedback we’ve been getting from our members. We also know how regular exercise releases endorphins, or the happy hormones, which everybody can benefit from, especially now,” he said, adding that some of PhilCare’s workout videos had reached as many as 40,000 views.

Citing Google Trends data from March 1 to 31, iSentia Head of Insights and Innovation in Asia Prashant Saxena shared in a recent webinar that demand for how-to fitness videos for adults and kids were on the rise, with search for “exercises at home” being led by the Philippines.

“Consumers are looking at this period of isolation to reset, reboot, and emerge stronger,” he shared during the webinar What’s On Media: Adapt & Respond—Changes in Consumer Behavior.

Way forward

We all have our own ways of dealing with this crisis. Whichever way you choose to go, always be in touch with your creative side and try to incorporate some physical movements in your daily routine. Not only will you be boosting your immunity, you’ll also be increasing your chances of holding on to your sanity.

If you’re an individual or brand who wants to stay relevant to your customers, now is the time to step up your game. Be authentic. Be creative.

We all need a bright spot in our lives right now.

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.

Sports BusinessMirror

B8 Monday, June 8, 2020

mirror_sports@yahoo.com.ph / Editor: Jun Lomibao

NBA clarifies tiebreakers, uneven sked in new format

Rick Olivares bleachersbrew@gmail.com

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IAMI—The National Basketball Association (NBA) has told teams that playoff seeding will be based on winning percentage, and that any tiebreakers necessary after that will follow the usual procedures.

It was an issue that needed clarity because the 22 teams that will be going to the Disney complex near Orlando, Florida, for the planned resumption of the season next month will not have played the same number of games.

The NBA told teams of the plan for utilizing tiebreakers in a memo late Friday.

Based on the league plan for the restart, with games starting again in late July, Dallas will end up playing an NBA-high 75 contests.

Most others will play between 72 and 74; the low total will be 71, which San Antonio and the Los Angeles Lakers will finish at if the NBA’s plans for teams to play eight games at the Disney complex before the playoffs begin comes to fruition.

The NBA has not yet revealed how team schedules will be adjusted once play resumes without Atlanta, Charlotte, Chicago, Cleveland, Detroit, Golden State, Minnesota and New York taking part in the remainder of the 2019-20 season.

There are some playoff races that are particularly close and where the teams involved will end up playing a different number of games.

In the East, Brooklyn and Orlando are separated by a half-game and the Nets will end up with one less game than the Magic.

In the West, four teams—Portland, New Orleans, Sacramento and San Antonio—are all separated by a half-game in the race for ninth place and potentially a berth in a play-in series. The gap between those four teams is .010 percentage points, and the Trail Blazers will play 74 games, the Pelicans and Kings will both play 72 and the Spurs 71.

Typically, NBA teams play 82 games— which wasn’t possible this season because of the coronavirus pandemic and the suspension of the season on March 11.

This will be the first season in which NBA teams play an uneven number of games since 2012-13, when a game between the Boston Celtics and Indiana Pacers was canceled in response to the Boston Marathon bombing. The Celtics and Pacers finished at 81 games, though that did not have any impact on playoff seeding that season. AP

Bleachers’ Brew

GREGG POPOVICH says white people must help lead the charge for change. AP

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AN ANTONIO—San Antonio Spurs Coach Gregg Popovich said he’s “embarrassed as a white person” that George Floyd could die in such a “nonchalant” manner.

The 71-year-old Popovich addressed Floyd’s death in a video released Saturday by the Spurs as part of the team’s #SpursVoices social-media series.

Floyd was in handcuffs when a Minneapolis police officer pressed his knee into his neck as he pleaded that he couldn’t breathe. Derek Chauvin is charged with third-degree murder and second-degree manslaughter.

“In a strange, counterintuitive sort of way, the best teaching moment of this recent tragedy, I think, was the look on the officer’s face,” Popovich said. “For white people to see how nonchalant, how casual, just how everyday-goingabout-his job, so much so that he could just put his left hand in his pocket, wriggle his knee around a little bit to teach this person some sort of a lesson—and that it was his right and his duty to do it, in his mind....

“I think I’m just embarrassed as a white person to know that that can happen. To actually watch a lynching. We’ve all seen books, and you look in the books and you see black people hanging off of trees.... But we just saw it again. I never thought I’d see that, with my own eyes, in real time.

“It’s like the neighborhood where you know there’s a dangerous corner, and you know that something’s going to happen someday, and nobody does anything. And then a young kid gets killed and a stop sign goes up. Well, without getting too political, we’ve got a lot of stop signs that need to go up—quickly—because our country is in trouble. And the basic reason is race.”

Popovich said white people must help lead the charge for change.

“We have to do it. Black people have been shouldering this burden for 400 years,” Popovich said. “The only reason this nation has made the progress it has is because of the persistence, patience and effort of black people. The history of our nation from the very beginning in many ways was a lie, and we continue to this day, mostly black and brown people, to try to make that lie a truth so that it is no longer a lie. And those rights and privileges are enjoyed by people of color, just like we enjoy them. So it’s got to be us, in my opinion, that speak truth to power, and call it out, no matter what the consequences. We have to speak. We have to not let anything go.”

Popovich has led the Spurs to five National Basketball Association (NBA) titles and is a three-time coach of the year.

He’s set to coach the United States in the Tokyo Olympics.

The NBA plans to go to Disney World next month to finish

COACH POP: I’M ASHAMED I’M WHITE a season, with a schedule calling for the 22 remaining teams to play more than 150 more games and for the league to eventually crown a champion.

Coaches are seeing potentially a bigger purpose, as well.

Many players and coaches have spoken out in recent days following the death of George Floyd, who died after a Minneapolis police officer pressed his knee into his neck for several minutes even after he stopped moving and pleading for air. But two coaches said Saturday that once the league arrives at Disney, they would expect the NBA’s visibility to be an asset again in the hope for actual change.

“I don’t think anybody is really ready to move on. And we shouldn’t,” Miami Coach Erik Spoelstra said. “If anything, many times before, so tragically, there would be a similar incident of social injustice like this and then two weeks later people forget about it. This will be an opportunity for the entire association to land in one spot...to keep this conversation going and use our platform to make sure that this doesn’t go away.”

Spoelstra said he’s had numerous talks with other head coaches and some players in recent days about the best path the NBA could take next. NBA Commissioner Adam Silver has talked at length about it in recent days as well, with numerous internal staff conversations on the topic going on this past week even as the league was finalizing the return-to-play proposal that the Board of Governors approved Thursday and players ratified Friday.

Orlando Coach Steve Clifford also seems convinced that the league’s players and coaches will take some sort of action

Black Lives Matter in Bundesliga B ERLIN—Germany’s soccer league was marked by gestures against racism and support for the Black Lives Matter movement on Saturday as Bayern Munich took another step toward a recordextending eighth straight Bundesliga title.

All of Borussia Dortmund and Hertha Berlin’s 22 outfield players took a knee in the center-circle together before the top tier’s late game with no fans present. Coaches and other team members from both sides did likewise beside the field, bringing to mind former San Francisco 49ers quarterback Colin Kaepernick’s protest before games against police brutality and racial inequality.

ERIK SPOELSTRA: I don’t think anybody is really ready to move on. AP

Dortmund’s players had warmed up wearing t-shirts with slogans such as “United together,” and “No justice, no peace.”

Bayern and Bayer Leverkusen’s players wore black armbands against racism in their game earlier Saturday, which Bayern won 4-2 after rallying from a goal down. Bayern’s players had ”Black Lives Matter” printed on their armbands, partly covering sponsor Qatar Airways’ logo on the left arm.

The teams’ gestures were made as tens of thousands of people across Germany attended anti-racism demonstrations in the wake of the death of George Floyd in Minneapolis on May 25. Floyd, a handcuffed black

man, died after a white police officer pressed his knee against his neck, ignoring his “I can’t breathe” cries even after Floyd eventually grew still.

Fortuna Düsseldorf’s American midfielder Alfredo Morales took a knee before coming on in his team’s 2-2 draw with 10-man Hoffenheim, and Cameroon midfielder Pierre Kunde did likewise after scoring for Mainz in a 2-0 derby win at Eintracht Frankfurt.

Emre Can’s 57th-minute strike was enough for Dortmund to win 1-0 and stay seven points behind Bayern with four games remaining. Bayern, which has won its last nine games, looks unlikely to squander its lead.

when the season resumes.

“I don’t think there’s any question,” Clifford said. “I think everybody’s priority right now and hope is that we can all be part of the change that’s so necessary in our country. We’ll have a collective platform where everyone can collectively send a message condemning racism, racial injustice, calling for police accountability.

There will be a platform and I think we’re all thinking that way.”

Many of the league’s biggest names have used social media to condemn police brutality and racial injustice, and some NBA players have also appeared at demonstrations and marches around the nation in recent days.

The National Basketball Coaches Association has also said that it will work collectively to find answers and determine the best courses of action. It has not said if it has made any specific decisions yet, though said it intends to work with “local leaders, officials and law enforcement agencies” in NBA cities to influence change.

Spoelstra has been on several calls with political leaders in South Florida in recent days for that same purpose. He also said Saturday that the current racial strife in the country took him back to how Heat players responded in 2012 after the death of Trayvon Martin, an unarmed black teen who was shot by a neighborhood watch volunteer—as well as countless other incidents.

“We all thought that that was going to move the needle and it didn’t and it broke your heart,” Spoelstra said. “And then when that happens over and over and over...what this is going to require is not even trying to evaluate, it’s just put your head down and get into this fight, and make it happen this time.” AP

Borussia Dortmund (yellow jersey) and Hertha BSC Berlin players kneel around the center circle as a mark of support for the protests after the recent killing of black American George Floyd. AP

Robert Lewandowski scored Bayern’s fourth to claim his 30th Bundesliga goal of the season, set up by Thomas Müller, who now has 20 assists. However, both players were booked in the first half and will miss the next game against Borussia Mönchengladbach due to an accumulation of yellow cards.

Bayern’s players had warmed up wearing anti-racism t-shirts in Leverkusen, where the home team had to do without young star Kai Havertz due to muscular problems.

It also had to do without fans, as all Bundesliga games are being played without supporters amid strict hygiene measures against coronavirus.

Reminiscing with Manotoc THAT laugh. Hearty and a tad high-pitched. It’s still there. As is the sharp wit and keen eye.

Tommy Manotoc may be getting on in years, but the man, in addition to still packing a mean golf game, has a sharp memory.

Over a live Web interview, along with Ariel Vanguardia and Joey Guillermo—from his San Francisco, California, home—we chatted for an hour-and-a-half last Saturday afternoon (9 p.m. Pacific Time) about his getting into coaching, winning Philippine Basketball Association (PBA) titles, golf, and his family.

And there was that familiar fire, the snap in his bones that gets the blood pumping as he took a stroll down memory lane.

I loved how he threw himself in the Crispa-Toyota conversation in those first four years of the PBA by leading the U-Tex Wranglers to a championship in 1978.

As Manotoc said, the superstars all went to those two teams so he had to patiently build a winner. While he had some collegiate stars in Lim Eng Beng, Mike Bilbao and Fitz Gaston, they were young compared to the seasoned veterans of Crispa and Toyota.

Coach Tommy revealed how he built his team around defense and a rigorous conditioning program. While most teams placed a premium on offense (defense to an extent), Manotoc figured that in order to do battle with Crispa and Toyota, he had to make sure his team was fit. This was a time, when players would smoke between breaks and training was scrimmaging. Sure, there were plays, but scientific basketball wasn’t even thought of just yet.

While he noted that Lim Eng Beng was a scoring star, perhaps Gaston and Bogs Adornado embodied what his team was all about. Both Gaston and Adornado were—for lack of a better term—reclamation projects.

That was a time when you busted your knee, your career was thought to be over. But U-Tex took them in and they performed with aplomb.

Manotoc showed that he wasn’t a one-trick pony when he inflicted one of the most painful losses to Toyota when his Wranglers came back from two games down and four points behind in Game Five with 16 seconds left to win a second title.

And to add to his legend, he became the second coach—after Ed Ocampo—to win a championship with two different ball clubs when he guided San Miguel Beer to a title in 1982. Ocampo led Royal and Toyota to PBA crowns.

But Manotoc got a leg up on Ocampo when he led Crispa to the league and the club’s second grand slam in 1983.

Coach Tommy defrayed credit for his wins. “It wasn’t all me,” he admitted. “When I was in U-Tex, I had two legitimate NBA [National Basketball Association] veterans in Glenn MacDonald who played for the Boston Celtics and Aaron James who was a part of the starting five of the New Orleans Jazz along with Pete Maravich. There were times, they knew what OI was going to say even before I did it. They had the experience. In Crispa, while the second unit of Yoyoy Villamin and Padim Israel pushed the local stars like Freddie Hubalde, Abet Guidaben and Atoy Co, there was Billy Ray Bates. A lot of it was Bates.”

Manotoc recounted how Bates came to play for Crispa.

“I was in Hawaii and I read in the newspaper there was this basketball game for the day and so I went.” The place was rocking because of Bates who was out of the NBA for a variety of offenses.

Coach came away convinced that Bates would be the import they needed and when he returned to Manila, he informed team management, “Get Bates and we will win.”

The rest is history.

And yet, Manotoc’s story doesn’t end there. Golf was his first love and prior to his becoming a PBA coach, he was a two-time golfer of the year. He returned to the game he loves. In fact, before our Web interview, he had just gotten back from a match on the greens with his children.

He recounted of an opportunity to play with Phil Mickelson who was recently in the news for his charity golf game along with Tiger Woods and National Football League stars Tom Brady and Peyton Manning. He got to play with Mickelson, the five-time winner of major golf tournaments alongside a couple of local journalists.

We also intimated that when he returns to the Philippines, maybe he could organize a golf game similar to the Mickelson/Brady-Woods/Manning charity game.

“Anything for the country,” he summed up. “As long as we can help.”

Bayer Leverkusen substitute Florian Wirtz, meanwhile, has become the youngest person to score a goal in the Bundesliga at age 17 years and 34 days with an impressive strike against Bayern Munic.

The attacking midfielder came on for the second half and wrong-footed Lucas Hernandez—the most expensive player in the league±before lifting the ball over Bayern ’keeper Manuel Neuer inside the far post for Leverkusen’s consolation goal in a 4-2 defeat.

Wirtz is 48 days younger than previous recordholder Nuri Sahin, who scored for Borussia Dortmund against Nuremberg on November 26, 2005. AP