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US CDC no longer recommends students quarantine for COVID-19 exposure

BLOOMBERG

The US Centers for Disease Control and Prevention (CDC) will no longer recommend quarantines or test-to-stay programs at schools or daycare centers for people exposed to coronavirus disease 2019 (COVID-19), the agency said in updated guidelines on Thursday.

The agency also said it was no longer recommending unvaccinated people quarantine after exposure as around 95% of the US population has either been vaccinated, had COVID-19 already, or both.

“This guidance acknowledges that the pandemic is not over, but also helps us move to a point where COVID-19 no longer severely disrupts our daily lives,” CDC scientist Dr. Greta Massetti said in a statement.

The CDC said it had updated its recommendations that people exposed to COVID-19 should wear a high quality mask for 10 days and test on the fifth day after exposure, regardless of vaccination status.

“Both prior infection and vaccination confer some protection against severe illness, and so it really makes the most sense to not differentiate with our guidance or our recommendations based on vaccination status at this time,” Dr. Massetti told reporters.

The CDC’s school guidance also removed recommendations to keep children in cohorts in order to reduce the likelihood of COVID-19 exposure.

While the agency removed its test-to-stay recommendations for schools, it did say schools could consider implementing screening for COVID-19 for high-risk activities like close contact sports or at key times of the year. — Reuters

PHL tycoon Uy’s business may face $700 million debt bill

The business empire of Philippine tycoon Dennis A. Uy, which recently made headlines with a notice of default, may face nearly $700 million worth of loans maturing this year.

The most recent financial report of Uy-backed DITO CME Holdings Corp., covering the quarter through end March and published in late May, lists subsidiary DITO Telecommunity Corporation — a venture with China Telecommunications Corp. — as having taken out the money with three different Bank of China Ltd. (BOC) branches.

An estimated $47 million of dual-currency debt with BOC’s Manila branch set to come due on Aug. 20. A chunk of two other loans — for $199.7 million and $449.9 million — taken out with the lender’s units in Singapore and Hong Kong may also mature then, according to the document. It lists Oct. 12 as another maturity date.

Leo Venezuela spokesman for parent Udenna Corp. said he couldn’t answer questions regarding DITO CME’s finances citing a blackout period before the release of the second-quarter financial report on Monday.

That publication is likely to give a more recent snapshot of its finances, including whether the BOC loans were rolled over, renegotiated or paid back. But the liabilities add to the picture of a debt-fueled expansion of the business empire of Mr. Uy, who counts former president Rodrigo R. Duterte as a family friend.

The Uy and China Telecommunications’ venture is the newest telecoms provider in the Philippines.

Already last month, a DITO CME affiliate received default notice from a consortium of banks. Udenna later said it had “settled the matter.”

The quarterly filing also states that the group’s liabilities exceeded its assets by 126.4 billion pesos at the end of March, which it conceded might cast “significant doubt” on its viability.

“Albeit these conditions, management believes that the group will be able to meet all its outstanding obligations and continue to operate as a going concern,” DITO CME said.

An external spokesperson for DITO Telecom didn’t respond to Bloomberg’s emailed requests for comment. A call to DITO CME’s general number went unanswered.

Bank of China and China Minsheng Banking Corp. did not immediately respond to emailed requests for comment. — Bloomberg

Years of COVID school closures leave Philippines with deep scars

PHILIPPINE STAR/ WALTER BOLLOZOS
PHILIPPINE STAR/WALTER BOLLOZOS

On Aug. 22, schools in the Philippines will finally reopen their doors to students after two and a half years — one of the longest pandemic-induced school closures in the world. As well as devastating the individual prospects of countless children, the extended hiatus is threatening to leave long-term scars on an economy historically reliant on sending high-skilled workers abroad.

Protracted school closures worsen basic literacy standards and will likely reduce the productivity and earnings of children once they enter the workforce, the World Bank warned in a recent report.

About 10% of Filipinos work abroad and the economy is dependent on remittances sent back by its overseas nurses, teachers and engineers, among other workers. A steady flow of graduates is also essential to the country’s push to establish itself as an outsourcing center for international corporations and to increasing the number of decent jobs closer to home.

“The impact is huge,” the country’s economic planning chief Arsenio M. Balisacan said in an interview. “The quality of graduates we produce affects the competitiveness of our labor force.”

While protracted school closures have bedeviled many countries — particularly poorer ones — the problem is particularly acute in the Philippines, where the shutdown has been one of the longest in the world according to data from the United Nations Children’s Fund. Even now, full in-person teaching isn’t planned until November.

One reason for the tardiness in reopening is the country’s social structure. Households are mostly composed of extended families so many children live with grandparents who are vulnerable to the virus because of old age, or with other relatives who may have underlying health conditions.

Exacerbating fears of the virus are long-standing logistical issues in poorly funded schools including overcrowding. Prior to the virus, classes in public schools of more than 60 students were common, necessitating textbook sharing and preventing any meaningful social distancing.

So while parents are dismayed at their children’s lack of progress, fear of the virus has kept criticism of the government in check. Cristina Martinez, a 31-year-old vegetable seller in the coastal town of Hagonoy and mother of four children, says her 10-year-old “can barely read sentences,” particularly in English, the language used in science and math textbooks. “The situation is hard for us, but I think there’s not much we can do.”

Compensating for two years of inadequate learning requires a program that includes make-up classes for younger pupils and training for college students to prevent irreversible human capital losses, Balisacan said.

Success is crucial if the next generation of Filipinos are to access good quality jobs — and new president Ferdinand R. Marcos, Jr., is to keep his pledge to bring the poverty rate to 9% by the end of his term in 2028 from 23.7% as of the first half of last year.

A failing education system means the nation’s future labor force could have a much more limited skill set, said Nicholas T. Mapa, economist at ING Groep in Manila. “This is one of the many scarring effects on the economy.”

The proportion of children who cannot read a simple text by the age of 10 has increased notably over the pandemic without a good education, migrant Filipinos will be looking at roles in vulnerable occupations such as cleaning and domestic work, Department of Migrant Workers Secretary Susan V. Ople said.

These typically attract both poorer pay and conditions. In his inauguration speech, Mr. Marcos said pushing more money into education and reforms such as revamping the curricula is a top priority. Entry-level teachers in public elementary and secondary schools receive monthly salaries of just over $400 and primary education expenditure per child in the country is 30% below the average for lower middle-income countries, according to development agency data.

“We are condemning the future of our race to menial occupations abroad,” Mr. Marcos said, making his case for reform. “Once we had an education system that prepared coming generations for more and better jobs, there is hope for a comeback.” — Bloomberg

Honoring Fidel V. Ramos: the legacy of the Philippines’ 12th President

Photo shows former Philippine President Fidel V. Ramos during the Arangkada anniversary economic forum in Makati in February 2013. — BW File Photo

The wheel of history forever turns. As the years go on, new leaders, heroes, and visionaries become a part of national history. Yet, we must not forget the names of those who have dreamed and labored hard to create the present we enjoy today.

Former President Fidel V. Ramos, who passed away at 94 last July 31, was one such man to be remembered. He had been instrumental in toppling the Marcos dictatorship, and his presidency from 1992 to 1997 came right at that critical point in Philippine history, just four years after the ratification of the 1987 Constitution, following Corazon C. Aquino’s historic term.

According to the Management Association of the Philippines, which released a statement mourning his death, the Ramos administration was known for sweeping reforms on energy, economic liberalization, infrastructure, and social reform among others, which “fueled an engine for national progress built on his twin themes of people empowerment and global competitiveness.”

“His good governance program is unparalleled. He has undoubtedly served the country with the highest standards of professionalism, integrity, and transparency,” the organization said.

Among the most notable of these reforms was his initiative to solve the ongoing power crisis of the time. In his first year, his government reformed the Department of Energy and led the construction of numerous power plants around the country. These efforts were seen to be the some of the first instances of the Build-Operate-Transfer (BOT) model, where private investors are invited to fund certain government infrastructure projects like power plants and railways, make money by charging users, and then transfer operation to the government after a set period.

Senate President Pro-Tempore Loren B. Legarda recognized Mr. Ramos’ work in promoting people empowerment and global competitiveness, saying that he “left a legacy that demonstrated resolute courage, excellent leadership and unwavering allegiance.”

“He led various economic reform initiatives which pushed for the deregulation of key industries and the liberalization of the economy and encouraged the privatization of public entities, to include the modernization of public infrastructure through an expanded Build-Operate-Transfer law,” she said.

Under these reforms, and aided by the economic policies begun by his predecessor, then President Ramos succeeded in opening up the once-closed national economy, encouraging private enterprise as well as inviting foreign and domestic investments into the country. Mr. Ramos saw many of these investment deals himself, as he became known as the most-traveled Philippine President compared to his predecessors, bringing home an estimated $20 billion worth of foreign investments from abroad. He also led the 4th Asia Pacific Economic Cooperation (APEC) Leaders’ Summit in the Philippines in November 1996.

In a statement honoring former President Ramos’ legacy, Senate President Juan Miguel F. Zubiri noted that it was particularly the Philippines 2000 program that turned the nation into one that was dubbed as the Sick Man of Asia into Asia’s Next Tiger Economy. The Philippine Stock Exchange in the mid-1990s was one of the best-performing in the world, through his vision of industrializing the economy by the turn of the century.

Senator Risa Hontiveros-Baraquel, for her part, said that Mr. Ramos’ vision of Philippines 2000 gave the Philippines “a chance to stand tall beside other Asian economies.”

Meanwhile, the Department of Foreign Affairs (DFA) said that President Ramos was widely considered as a ‘foreign policy’ President who “shaped the evolution of the DFA by instituting economic diplomacy and the protection of overseas Filipinos as pillars of Philippine foreign policy”.

“His contributions to our foreign policy will continue to benefit future generations of Filipinos. The DFA community extends its support and prayers to the Ramos family at this difficult time,” Foreign Affairs Secretary Enrique A. Manalo said.

Mr. Ramos also had a hand in the creation of the Southern Philippines Council for Peace and Development in 1996, which ultimately led to the final peace agreement with the Moro National Liberation Front.

After his presidency, he continued to espouse the same ideals he sought to instill in the government. Mr. Ramos pushed for the country to become economically competitive on the global market. He represented the Philippines in the ASEAN Eminent Persons Group, tasked to draft the Charter of the Association of South East Asian Nations (ASEAN), and he also served as a member of numerous international groups and fora, including serving as chairman and co-founder of the Board of Directors of the Boao Forum for Asia and co-chairman of the Global Meeting of the Emerging Markets Forum (EMF). He was also heavily recommended for the position of the United Nations envoy to Myanmar (formerly known as Burma) in June 2006.

More recently, Mr. Ramos as a private citizen served various private sector advocacies including chairman for the Ramos Peace and Development Foundation; chairman, Boao Forum for Asia; trustee, International Crisis Group (ICG); member, Advisory Group, UN University for Peace; honorary director, General Douglas MacArthur Foundation; founding member, Policy Advisory Commission, World Intellectual Property Organization (PAC-WIPO); honorary member, World Commission on Water for the 21st century; member, International Advisory Council, Asia House; Patron, Opportunity International (Philippines); global advisor, University of Winnipeg; honorary chairman, Yuchengco Center, De La Salle University; member, Advisory Board, Metrobank; honorary president, Human Development Network (HDN) Philippines; lifetime honorary president, Christian Democrats International (CDI); and chairman emeritus, Lakas-Christian Muslim Democrats (CMD) Party.

The former President was also a member of the Global Leadership Foundation, an organization which works to support democratic leadership, prevent and resolve conflict through mediation and promote good governance in the form of democratic institutions, open markets, human rights and the rule of law.

Hailing from Lingayen, Pangasinan, Mr. Ramos was born to lawyer and congressman Narciso Ramos and educator Angela Valdez on March 18, 1928 in Lingayen, Pangasinan. He studied at the National University where he received his civil engineering degree. He also graduated with a Bachelor of Science in Military Engineering degree from the US Military Academy, after which he earned his masters in civil engineering at the University of Illinois.

He is survived by Amelita Martinez, whom he married in 1954, as do their daughters, Angelita Ramos-Jones, Carolina Ramos-Sembrano, Cristina Ramos-Jalasco, and Gloria Ramos. A fifth daughter, Josephine Ramos-Samartino, died in 2011. — Bjorn Biel M. Beltran

FVR’s vision for the economy

Fidel V. Ramos — BW File Photo

Among the tributes that poured in for former President Fidel V. Ramos, one of the well-remembered is his contribution to the Philippine economy, especially his endeavor to shift the country from being called the Sick Man of Asia. After all, in his inauguration address back in 1992, he said, “To this work of empowering the people, not only in their political rights but also in economic opportunities, I dedicate my Presidency.”

Among those who honored Mr. Ramos on his passing were Budget and Management Secretary Amenah Pangandaman and Socioeconomic Planning Secretary Arsenio M. Balisacan, who, in separate statements, both recognized how the country became a “tiger cub economy” through the late President.

“It was during his administration that the Philippines, under his vision ‘Philippines 2000’, became the ‘tiger cub economy in Asia’, as he was widely credited for spearheading economic reforms in the country,” Sec. Pangandaman said in a statement.

“He was also a visionary,” said Sec. Balisacan. “His foresight and steadfastness enabled the Philippines to weather the 1997 Asian Financial Crisis and be among the continent’s ‘Tiger Cub Economies’.”

Mr. Ramos, also known for his initials FVR, served as the country’s 12th President from 1992-1998. During his inauguration, he noted that one of their priorities was to “nurse the economy back to health and propel it to growth.”

A World Bank working paper from 2008 noted that the country’s economic growth record showed a ‘boom-bust’ picture. The economy could not maintain growth of more than 5% for over six years and although growth managed to stay over 5% for six years from 1975 to 1980, amid the Marcos dictatorship, this economic expansion was paid for by large foreign borrowings that “paved the way for a deep external payments crisis in the early 1980s.” 

The country’s economic situation deteriorated in the 1980s, according to an International Monetary Fund (IMF) paper from 2000. From 1986 to 1989, economic growth was able to rebound under a new government that was led by former President Corazon C. Aquino, though the economy faltered in 1990 to 1991 due to a string of natural disasters, external shocks, and renewed political instability. The economy was still on a “rocky path” in the last years of the 1980s, according to the IMF. Nonetheless, those years saw “important changes that paved the way for fundamental improvement” in the decade that followed.

“The 1990s have witnessed impressive economic progress in the Philippines, reflecting sound economic policies in a more favorable external environment and greater political stability,” IMF said.

Led by FVR, the new government embraced what IMF regarded as a “comprehensive reform strategy,” which targeted “further opening up the economy, reducing macroeconomic imbalances, and addressing other structural rigidities.”

In his 1993 State of the Nation Address, FVR expounded on his socio-economic program Philippines 2000, a vision for the country to be newly industrialized by the year 2000.

“The Philippine State, in the past, had been unable to act consistently in the national interest because it could not resist the importunings of oligarchic groups. And the economy had been governed largely by politics instead of markets,” Mr. Ramos said.

“Because of this experience, we now know that development cannot take place in our country unless we put our house in order. And this — to me — means accomplishing three things: One, restoring political and civic stability. Two, opening the economy: dismantling monopolies and cartels injurious to the public interest, and leveling the playing field of enterprise. Three, addressing the problem of corruption and criminality.”

He laid out the two components of the Philippines 2000, the first of which is the Medium-Term Philippine Development Plan for 1993-1998. The other component sought to address the larger environment, covering the political, social, and cultural climate, in which economic growth must transpire.

The paper published by the World Bank likewise noted that FVR’s reform agenda was broad. Because apart from economic liberalization measures, also involved are institutional, redistributive, and political reforms.

“At the end of the day, he had been most successful where the reform effort entailed liberalization and deregulation, that is, getting government out of the way to foster market efficiency,” the World Bank paper said. “The success record of his programs for institutional reform is less evident, partly because these are by nature more intractable and complex and require sustained action over a long period, perhaps longer than a President’s term.” — Chelsey Keith P. Ignacio

Move-in ready perks await with Homepossible: Next Best Home Deals in Avida this August

Finding a property to settle in after years of being in the pandemic may leave home seekers and smart investors wary of whether their investment will be worthy of value. Nonetheless, the past 2 years have made home seekers and investors more discerning in their real-estate investment. Now that the economy is slowly regaining its foothold in business and investment, it is crucial for home seekers to choose a property that is not only primed for growth but also designed to curate a holistic lifestyle.

Given the array of property options springing from the market, home seekers are expanding their investment choices. Beyond looking into prime locations, they are searching for a community that is ready to fulfill their lifestyle needs and aspirations. Avida Land makes this aspiration Homepossible with investment options from its expansive portfolio of move-in-ready properties offering a convenient and modern living experience, affordable amortization, and exclusive move-in deals that every homeowner and investor can take advantage of.

Avida Land, Ayala Land’s mid-segment brand, has remained steadfast in its mission to make affordable dream communities a reality for middle-income Filipinos through its sensible home investments and sustainable mixed-use developments that are sure towards limitless growth and possibilities, and secure in its commitment to enriching lives with its proven track record for over 30 years.

Move-in Ready is Investment Ready

Investing in an Avida ready-for-occupancy (RFO) property goes with value-for-money ‘rewards’ when you are able to move ahead and fulfill your aspirations in the new normal. Avida Land is ready to achieve those aspirations when home buyers move to a ready community.

“Moving to a ready community allows you to have the immediate experience of your investment. Hence, you do not need to wait for its completion since all move-in ready properties are fully-constructed with standard unit provisions and sensible amenities. Home buyers will also get the privilege of being near modern living conveniences with its strategic location,” says Tess A. Tatco, AVP for Corporate Marketing.

Since all Avida properties are within key locations, your home investment is sure to appreciate over time with the continuous infrastructure developments and local government activations that will attract further growth and progress. With this, you can take advantage of securing a passive income generation when you lease your unit.

Most Avida RFO properties are mixed-use developments where you will get to live a life with ease as your lifestyle essentials are within reach. Having a dedicated retail space within the community and being nearby commercial and institutional establishments, this allows you to experience hassle-free living and to give you an opportunity to spend time on what truly matters.

Homepossible: Next Best Home Deals

Invest in Avida Move-in Ready properties nationwide and experience what Avida living and ‘rewards’ on investment is. Join the grand open house event this August 13!

There are exclusive move-in ready perks that await as Avida launches its grand open house event, Homepossible: Next Best Home Deals, featuring its ready-for-occupancy properties nationwide. Home seekers will enjoy as high as PHP 1.5 M discount with flexible early move-in payment terms. Plus, a tropical vacation of a 3-day and 2-night stay at El Nido Resort for two (2) is in store for home buyers ready to reserve an Avida unit.

Discover more about their move-in ready properties and take advantage of the one-day move-in offers from Abenson Home, Tefal Philippines, and Bank of the Philippine Islands (BPI).

These showrooms are open for viewing from 10 AM – 5 PM:

  • Glorietta Showroom, Makati City
  • Avida Towers Ardane Showroom, Alabang
  • Avida Towers Verge Showroom, Mandaluyong City
  • Avida Towers Cloverleaf Showroom, Quezon City
  • Avdia Towers Sucat, Paranaque City
  • Serin Tagaytay Project Pavilion, Tagaytay City
  • Nuvali Info Center, Sta. Rosa, Laguna
  • Avida Towers Aspira Showroom, Cagayan De Oro City
  • Avida Towers Riala Showroom, Cebu City
  • Avida Towers Abreeza Showroom, Davao City
  • Avida Towers Atria Showroom, Iloilo City
  • Avida Village Iloilo Project Pavilion, Iloilo City
  • Avida Village Northpoint Project Pavilion, Bacolod City

Be in a community that is ready for you. Be on the move for what’s next and unravel limitless opportunities with Avida!

Make your next best move and register at https://bit.ly/avidahomepossible2022

For more information on Avida Land and its move-in deals this August 13, visit their website www.avidaland.com, like and follow @AvidaLandPH on Facebook and Instagram, and @avidaofficial on YouTube.

 

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SLMC Bonifacio Global City MAB Corp. to hold annual stockholders’ meeting on September 14

 

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Ahunan launches ‘Tayo Na Pakil’ community development program

As part of its development agenda for Pakil in Laguna, Ahunan Power Inc. (Ahunan) launched a corporate social responsibility (CSR) program dubbed “Tayo Na Pakil,” a celebration of what the future holds for the municipality. Ahunan is a subsidiary of Prime Infrastructure Capital, Inc. (Prime Infra), the infrastructure arm of Enrique K. Razon, Jr.

Tayo Na Pakil takes on a community-centered approach focused on education, environment, heritage, and wellness, and will benefit thousands of Pakil residents.

“Ahunan’s CSR program reflects the commitment of Prime Infra for its host communities, to build better lives and resilient economies. It also highlights the cooperation and partnership between Ahunan and the Pakileños working towards the development and progress of the municipality,” said Guillaume Lucci, President and CEO of Prime Infra.

Present at the launch held August 3, 2022 at the Pakil Elementary School were Department of Environment and Natural Resources – Community Environment and Natural Resources Office (DENR – CENRO) Sta. Cruz, Laguna Officer-in-Charge Venerando Garcia, Pakil Mayor Vincent Soriano, Pakil Central School Principal Arnel Macabasco, Ahunan President Rafael Bueno, Jr., barangay officials and health workers, elementary public school teachers, and community facilitators, among others.

As part of its greening efforts, Ahunan and DENR – CENRO Sta. Cruz, Laguna signed a letter of intent for a proposed partnership on tree planting and watershed management in support of the government’s National Greening Program.

DENR – CENRO Sta. Cruz Laguna OIC Venerando Garcia (seated left) and Ahunan Power Inc. President Rafael Bueno, Jr. sign the Letter of Intent for a proposed partnership on tree planting and watershed management in support of the government’s National Greening Program. Standing as witnesses are local government officials of Pakil.

“We are pleased to be part of this celebration—the Tayo Na Pakil community development partnership. As we know, (Ahunan’s) project aims to supply energy not just in Pakil, but in the whole province of Laguna as well…The municipality of Pakil is very fortunate because of this project; and on our part, we fully support this undertaking,” said Garcia.

Ahunan is in the pre-development stage of its 1,4000-megawatt pumped storage hydroelectric power project in Laguna. In June, the company was granted Original Proponent status by the Manila Electric Company in relation to its offer to supply 500 megawatts of mid-merit power.

Ahunan also donated materials and supplies for facility repairs to Pakil Elementary School to kick off its educational assistance through the Brigada Eskwela program.

Other planned activities under the five-year Tayo Na Pakil program are medical missions, livelihood and technical skills training, and sports and youth development.

Pakil Mayor Soriano said he is grateful for the thousands of livelihood and employment opportunities that will be created out of Ahunan’s projects and programs.

“Within three or five years and beyond, Pakileños will no longer have problems in sending their kids to school or having access to medical care because they will have sources of income” he said.

“We are thankful to Ahunan Power Inc. because you included Pakil in your corporate social responsibility program,” Soriano added.

 

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Probe on ‘illegal’ SRA order underway

Packs of sugar are arranged on a shelf in a store in Quiapo, Manila, Aug. 11, 2022. — PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza and Revin Mikhael D. Ochave, Reporters

AN INVESTIGATION is underway over the “illegal” sugar importation order that was aimed at addressing the tight local supply and high prices, according to Malacañang.

“An investigation is ongoing to determine whether any acts that would cause the President to lose trust and confidence in his officials can be found or if there is malice or negligence involved. In such a case, if such findings are made, then the only determination left will be how many heads will roll,” Press Secretary Rose Beatrix Cruz-Angeles told a news briefing on Thursday.

The Palace on Wednesday denied President Ferdinand R. Marcos, Jr. approved Sugar Order (SO)No. 4, which would have allowed the importation of 300,000 metric tons (MT) of sugar by the third quarter.

The Sugar Regulatory Administration (SRA) on Wednesday morning uploaded on its website a copy of the order which was signed by the SRA board members, including Agriculture Undersecretary Leocadio S. Sebastian “on behalf” of Mr. Marcos. The order was taken down by Wednesday afternoon.

“(Mr. Sebastian) was not authorized to sign such a resolution because the President did not authorize the importation,” Ms. Cruz-Angeles said, noting that the order was “illegal.”

She said the meeting of the SRA board was not approved by Mr. Marcos, who is the designated chairman as secretary of the Department of Agriculture (DA).

“You don’t convene the Sugar Regulatory Board in the absence of the President and in the absence of any such approval on his part. You can only convene the board with the assent, explicit assent of the President. He did not make such an agreement,” Ms. Cruz-Angeles said.

Mr. Sebastian and other SRA board members are now under investigation, but there is no preventive suspension as of now, the Palace official said.

The board includes vice chair and SRA Administrator Hermenegildo R. Serafica, Roland B. Beltran as the miller’s representative and Aurelio Gerardo J. Valderrama, Jr. as the planters’ representative.

‘SENSITIVE MATTER’
Ms. Cruz-Angeles defended the President’s decision to reject the proposed sugar importation amid soaring prices of refined and raw sugar.

“The importation has to be carefully studied to protect both the consumer against the rising prices of basic commodities while ensuring at the same time that we do not destroy the local industry,” she said.

She said Executive Secretary Victor D. Rodriguez has ordered the creation of a sugar importation plan.

“We just imported last May. Now, we have to determine if an importation, supposedly to address the critical levels that are approaching at the end of the month, will affect the harvest season which opens in September,” Ms. Cruz-Angeles said.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said the fiasco involving Agriculture department officials is the last thing that the country needs in a time of crisis.

“While the authorities may see the SRA (issue) as usurpation of authority, the business sector will see it as an insensitive assertion of authority,” he said in a Messenger chat.

The economist said additional sugar imports would have been a “welcome relief” for consumers.

As of early August, the average price of refined sugar in wet markets climbed to P95 per kilogram or up 79.5% from P52.93 in the similar period a year ago. The average price of raw sugar in wet markets surged by 57.7% to P71.43 from P45.29 in 2021.

The conflict “creates unwarranted and unhealthy speculations among stakeholders,” Arjan P. Aguirre, a political science professor at Ateneo, said in a Messenger chat.

“This makes the government look that it’s not in control of the situation, that it is giving in to pressures and that it is not that ready to be transparent with its decisions and plan.”

George T. Barcelon, president of the Philippine Chamber of Commerce and Industry, asked the government to come up with immediate solution to the soaring sugar prices, which is hurting local businesses and exporters.

In a phone interview, Mr. Barcelon said the country’s sugar supply may not stabilize even after the harvest season, adding that climate change also affects producers’ output. “It is not enough, that is why importation is necessary.”

The DA, which is headed by the President, should work closely with the Trade department and other agencies to come up with a sound decision, he said.

‘POSITIVE SIGN’
Meanwhile, United Sugar Producers Federation President Manuel R. Lamata welcomed Mr. Marcos’ decision to reject sugar imports, saying the President is protecting the local industry.

“We were shocked and disgusted with the zarzuela made by the (SRA) board that acted illegally in issuing SO 4. They made us believe that this went through proper consultation and had the imprimatur of the President,” he said in a statement sent via Viber.

Federation of Free Farmers National Manager Raul Q. Montemayor said in a Viber message that it is a positive sign that Mr. Marcos is “taking a more balanced and nuanced view towards imports.”

“I hope a similar approach is adopted with respect to imports of rice, meat and other major food commodities,” Mr. Montemayor said.

Samahang Industriya ng Agrikultura (SINAG) Jayson H. Cainglet Executive Director said agencies like the DA and SRA should support local producers.

“(They should) only import what is needed and upon the explicit approval of the local industry… The SRA and DA should realize that the marching order of the President is to support local production. The board should immediately heed the call of the President and the local industry to stop this madness for imports,” Mr. Cainglet said in a statement.

PHL aims to become high-income economy by 2045 at the latest

Buildings are seen along EDSA in Quezon City, July 3 — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Diego Gabriel C. Robles

THE PHILIPPINES now aims to become a high-income economy by 2045 at the latest, Socioeconomic Planning Secretary Arsenio M. Balisacan said.

“Assuming that the economy can regain its growth trajectory in the next decade, also the trajectory targeted for the medium term of this administration, and hold on to it for two more decades, the Philippine economy can become a high-income economy by the first half of the 2040s,” Mr. Balisacan said on Thursday during the European Chamber of Commerce of the Philippines luncheon meeting.

Mr. Balisacan told reporters after the event that the timeline for achieving high-income economy status was pushed back to 2045, from 2040 previously, reflecting the impact of economic scarring from the pandemic.

The Philippine economy contracted by a record 9.6% in 2020, as the government implemented strict lockdowns to curb the spread of the coronavirus disease 2019 (COVID-19).

“The aspirations [of Ambisyon 2040] remain the same. It’s just the timeline that might have to be realistically revisited. There was a very sharp contraction in 2020 that really dragged down the average growth for the Duterte administration substantially. If only we could have maintained at least 6%, it could have been doable,” Mr. Balisacan said.

The country’s gross domestic product (GDP) expanded by 5.7% in 2021, and by 7.8% in the first half of 2022. The government targets 6.5-7.5% growth this year, and 6.5-8% annual growth for next year until 2028.

Mr. Balisacan reiterated that the Philippines is still expected to reach upper middle-income status by 2024.

According to the World Bank, the Philippines remained a lower middle-income economy despite a 6.12% increase in its gross national income (GNI) per capita to $3,640 last year.

The World Bank increased its income range for the upper middle-income bracket to a GNI per capita of $4,256-$13,205 this year, from $4,096-$12,695 in 2021.

The National Economic and Development Authority (NEDA) chief acknowledged the threat of elevated inflation in the medium term but is confident of the economy’s resilience.

“While inflation is a key policy challenge in the near term, the Philippine economy shows resilience… the priorities for the medium term, 2023 to 2028, [remains to be] reinvigorating job creation, rapid poverty reduction, and hastening economic transformation. All while adhering to prudent macroeconomic management,” Mr. Balisacan said.

Inflation quickened to 6.4% in July, the fourth consecutive month it exceeded the Bangko Sentral ng Pilipinas’ 2-4% target.

For the first seven months, inflation averaged 4.7%, mainly due to soaring prices of food and higher transport costs.

Meanwhile, Mr. Balisacan said newly enacted economic reforms will help improve the country’s business climate and attract more investments.

Specifically, he cited the amended Retail Trade Liberalization Act, the Foreign Investment Act, and the Public Service Act as “game-changing reforms” that signal the country’s openness to public-private partnerships (PPPs) and foreign investment.

“I still think that the way for us to move is not to close our doors. But obviously there are sectors that we’ll need to be quite sensitive about because they are politically sensitive sectors,” he said.

He also signaled the NEDA’s intention to review the implementing rules and regulations (IRR) of the Build-Operate-Transfer law which is viewed negatively by economists and the private sector as it compels private proponents to shoulder more risk while relieving the government of responsibility for delayed deliverables.

“The review aims to address the private sector’s concerns about the viability of PPPs while upholding the government’s objective[s],” Mr. Balisacan said.

“We are mindful of how investor decisions rely on the predictability of such regulations when envisioning their long-term plans that will require a significant amount of resources,” he added.

Sy siblings still PHL’s richest even as wealth drops by $4B

THE SY SIBLINGS remained the richest in the Philippines, despite a $4-billion drop in their net worth in 2022, according to Forbes Asia.

The combined wealth of 50 tycoons in the Philippines dropped by 9% to $72 billion this year, from $79 billion a year ago, as the economy continued to recover from the impact of the coronavirus pandemic.

“More than two-thirds of the listees saw their wealth shrink,” Forbes Asia said in a statement on Thursday.

Philippines' 50 richest 2022The Philippine economy expanded by 7.4% in the second quarter, bringing the average gross domestic product (GDP) to 7.8% in the first six months of 2022. However, elevated inflation, monetary policy tightening and geopolitical tensions have weighed on growth.

“Despite domestic demand recovering from the pandemic, the pressures of inflation, rising commodity and energy prices, reduced exports, a weak stock market and a depreciating currency all contributed to the decline of the combined wealth of the 50 richest tycoons in the country,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message on Thursday.

Forbes based the tycoons’ net worth on stock prices and exchange rates as of market close on July 22.

Topping the list of the Philippines’ 50 richest people are the six Sy siblings, namely Teresita, Elizabeth, Henry Jr., Hans, Herbert and Harley.

The Sys have a combined net worth of $12.6 billion, $4 billion lower from a year ago’s $16.6 billion. They inherited their fortune from their late father and SM Group founder Henry Sy, Sr., who died in 2019.

“For the Sy family, while SM Prime Holdings, Inc. and BDO Unibank, Inc. did quite well, it was the drop in the share price of SM by 21% that has really taken a toll on their net worth,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

Manuel B. Villar, property tycoon and former politician, ranked second on the Forbes list after his net worth rose by $1.1 billion to $7.8 billion this year. He was the biggest dollar gainer in the list, according to Forbes Asia.

Mr. Villar, whose companies include publicly listed Vista Land & Lifescapes, Inc., VistaMalls, Golden MV Holdings, and VistaREIT, is still the wealthiest individual on the Forbes list.

“With regards to (Mr.) Villar, there was a significant rise in his net worth mostly attributable to the recent IPOs (initial public offerings) of his two companies: AllDay Marts, Inc. and VistaREIT,” Mr. Temporal said.

The third richest Filipino is Enrique K. Razon, Jr., chairman and president of International Container Terminal Services, Inc., whose net worth slipped to $5.6 billion, from $5.8 billion a year ago.

“The slight decline of 3% in [Mr. Razon’s] net worth could be primarily due to the 13% drop in the share price of Manila Water Co., Inc., the water concessionaire that Razon acquired from the Ayala group last June 2021,” Mr. Temporal said.

In fourth place are JG Summit Holdings, Inc. President and CEO Lance Y. Gokongwei and his siblings, with a net worth of $3.1 billion, lower than the $4 billion last year.

The Aboitiz family ranked 5th on the list with a combined fortune of $2.9 billion, unchanged from a year ago.

“Rising interest rates and elevated WESM (Wholesale Electricity Spot Market) prices have presented a favorable environment for two of their major companies: Aboitiz Power Corp. and UnionBank of the Philippines. Moreover, recent acquisition of Citi Business has also boosted the valuations of the latter. We note that AP and UBP’s market cap has increased by 28% and 68%, respectively,” Mr. Temporal said.

In sixth spot is DMCI Holdings, Inc. Chairman Isidro A. Consunji and his siblings, whose wealth surged by a 47% increase to $2.65 billion this year.

Jollibee Foods Corp. founder Tony Tan Caktiong and his family remained in 7th place, despite a slight drop in their net worth to $2.6 billion this year, from $2.7 billion last year.

Ayala Corp. Chairman Jaime Augusto Zobel de Ayala and his family dropped to 8th place as their wealth fell 22% to $2.55 billion, from $3.3 billion a year ago.

Ramon S. Ang, San Miguel Corp. vice-chairman and president, ranked 9th on the Forbes list as his net worth rose by 6% to $2.45 billion.

In 10th spot is Alliance Global Group, Inc. Chairman Andrew L. Tan, whose wealth slipped to $2.4 billion this year, from $2.6 billion in 2021.

The Forbes list included two new entrants — the Po family and Sylvia C. Wenceslao.

The Po family, the heirs of Century Pacific Food founder Ricardo Po, Sr., ranked 16th on the list with a net worth of $1.2 billion.

Ms. Wenceslao, who took over as chair of D.M. Wenceslao & Associates, Inc. after her husband Delfin’s death last year, had a net worth of $340 million at 39th place.

According to Forbes, the minimum net worth to make the Philippines’ richest list was $185 million, down from $200 million in 2021. — J.I.D. Tabile

ABS-CBN, TV5 partnership to face scrutiny — NTC

GLENN CARSTENS PETERS-UNSPLASH

By Arjay L. Balinbin, Senior Reporter

THE National Telecommunications Commission (NTC) will investigate the partnership between ABS-CBN Corp. and TV5 Network, Inc. of the Pangilinan group’s MediaQuest Holdings, Inc., a commissioner said on Thursday.

“Kailangan po natin ito busisiin mabuti dahil madami pong lumabas na violations ang ABS-CBN noong nakaraang pagdinig ng renewal ng kanilang prangkisa noong nakaraang 18th Congress na nagresulta sa ‘di pag-renew ng kanilang prangkisa,” NTC Commissioner Gamaliel A. Cordoba said in a statement when asked to comment on the deal signed by the two media companies on Wednesday.

(We need to study this carefully because the previous hearing on ABS-CBN’s franchise in the 18th Congress revealed numerous violations committed by the company, which resulted in the network’s franchise not being renewed.)

ABS-CBN was forced to stop its broadcast operations in May 2020 after former President Rodrigo R. Duterte’s allies in Congress denied its franchise renewal application.

According to the NTC, it has issued a memorandum order prohibiting franchise grantees from entering into commercial agreements — in which the commission has jurisdiction — with parties “that have outstanding obligations to the national and local governments.”

“The franchise grantee shall ensure that all the parties it transacts or enters into agreements with obtain clearances from the Bureau of Internal Revenue, Bureau of Customs, NTC, and Securities and Exchange Commission,” Mr. Cordoba said.

The commercial agreements together with these clearances should be submitted by the franchise grantee to the NTC “prior to consummation.”

“Ang iba pong ahensiya ng gobyerno ay tutulong din po sa pagbusisi nitong mga violations na ito na lumabas noong 18th Congress, kasama po dito ang DOJ, LRA, PCC at iba pa,” Mr. Cordoba added.

(Other government agencies, such as the Department of Justice, Land Registration Authority, and Philippine Competition Commission, will help in the investigation of the violations seen in the 18th Congress.)

Under the partnership deal, the equity of the MediaQuest group — which is owned and controlled by the PLDT Beneficial Trust Fund — in TV5 will be reduced to 64.79% of the voting and outstanding capital stock, allowing it to retain control of the television network.

‘SYNERGIES’
Analysts see the partnership as mutually beneficial for ABS-CBN and TV5 Network.

“There would be synergies in the partnership… in terms of programs/content and wider reach to more Filipinos nationwide and globally, building up on earlier agreements such as some ABS-CBN shows aired by TV5,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a phone message to BusinessWorld.

The partnership would also lead to “higher advertising revenues/sales, earnings, and valuation for both groups,” he added.

The partnership should help level the playing field as they could leverage on each other’s expertise against the ever-changing technology-driven business, according to Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio.

“While everything isn’t set in stone as of yet, the news was positively viewed by the market — leading to a gap-up in ABS-CBN share prices today,” she said in a phone message.

For his part, Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said: “TV5 will finally get the popular content it has been searching for since MediaQuest took over in 2010.”

“ABS-CBN will finally get a home for its top-rating shows after losing its franchise two years ago.”

Mercantile Securities Corp. Analyst Jeff Radley C. See said that investors “should stay cautious” given the “political” factors that could affect the partnership.

“We can’t really do anything if they still continue to target ABS-CBN,” he said, alluding to the lawmakers and groups critical of the media company.

‘SABOTAGE’
Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the ABS-CBN-TV5 deal has no impact on franchise and competition.

“Adversaries of ABS-CBN at all levels of government will try to sabotage this partnership. In fact, we are already seeing this in Congress, as some congressmen are pushing for inquiries into the deal,” he said in an e-mailed statement.

He pointed out that the deal is not a franchise issue. “This involves no transfer of controlling stakes requiring congressional approval.”

On the competition side, he said there might be no basis for the PCC to strike the deal, as it does not involve a transaction that will reduce or limit competition.

“In fact, when ABS-CBN lost its franchise in 2020, it ceased to be the dominant player in the broadcast segment, and TV5 has not yet attained dominant status in the same sector,” Mr. Ridon noted.

“However, given the size of the transaction and the entities involved, they may opt to undertake voluntary review with the PCC. This is not compulsory, as the transaction does not meet the current P50-billion threshold for compulsory review,” he added.

The PCC has warned both ABS-CBN and TV5 “to ensure compliance with our antitrust law and engage in consultation with the commission, where necessary.”

“The PCC’s mandate to review transactions, whether on the basis of compulsory notification or motu proprio, remains in place to avoid the rise of new monopolies or consolidation of market power that may be detrimental to consumers,” the commission said in a recent statement.

ABS-CBN shares closed 5.09% higher at P11.98 apiece on Thursday, while PLDT shares closed 1.74% higher at P1,811 apiece.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

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