A World Health Organization (WHO) panel recommended use of two drugs by Eli Lilly, and GlaxoSmithKline and Vir Biotechnology for coronavirus disease 2019 (COVID-19) patients, adding treatment options as the fast-spreading Omicron variant renders many ineffective.
WHO data shows Omicron, which is evading protection provided by many vaccines and therapies, has been identified in 149 countries. It is quickly replacing Delta as the dominant variant in several nations, forcing governments and scientists to bolster defences with testing, shots and therapies.
The panel on Thursday strongly recommended Lilly’s baricitinib, sold under brand name Olumiant, for patients with severe COVID-19 in combination with corticosteroids, while conditionally endorsed GSK-Vir’s antibody therapy for non-severe patients at the highest risk of hospitalization.
So far, GSK-Vir’s monoclonal antibody therapy is the only one that has shown effectiveness against Omicron in lab tests, while similar treatments from Eli Lilly and Co. and Regeneron Pharmaceuticals offered lower protection in such tests.
The WHO experts noted that the effectiveness of monoclonal antibody treatments — lab-generated compounds that mimic the body’s natural defences — against new variants such as Omicron was still uncertain, and said the guidelines for this class of medicine will be updated when additional data become available.
The WHO guidelines, published in the British Medical Journal, also noted that evidence shows baricitinib improves survival rate and reduces the need for ventilation, with no observed increase in adverse effects.
French medical charity Medecins Sans Frontieres (MSF) welcomed the United Nations agency’s guidelines, and said baricitinib can be a potential alternative to current WHO-recommended monoclonal antibody treatments that remain in short supply for governments and patients in many low- and middle-income countries.
MSF also said that governments must take steps to ensure that patent monopolies do not stand in the way of access to the treatment. — Reuters
AURO Chocolate, a bean-to-bar company which sustainably sources cacao beans from Filipino farmers, launched in December a grab-and-go concept store in SM Mall of Asia’s MOA Square, next to Ikea Philippines, as a way to move forward despite the pandemic.
“Opening a cafe store in the midst of an ongoing pandemic might be surprising for some but we believe that the only way to move forward is by taking a step into it, and for us, that is opening our very first physical location,” said Kelly S. Go, managing director of Auro Chocolate, via e-mail.
In 2020, at the onset of the pandemic and rapid growth of e-commerce, Auro launched its own online platform as well as official online stores through Lazada and Shopee. The physical store is an attempt to further widen their “distribution and presence in Metro Manila and offer a unique sustainable experience for everyone,” she said.
With a vision of being proudly Filipino, the space is made of handwoven material and lit warmly to provide an atmosphere befitting choices like Sourdough Pan de Tsokolate stuffed with Tinapang Bangus, and Tortang Talong and Beef Pares sandwiches.
“We want everything to be locally sourced and crafted,” said Ms. Go, referring to the food and drinks as well as the café itself.
Auro plans to open more physical stores.
FILIPINO TASTES
During the pandemic, Filipinos’ evolving taste in sweets due to various food trends opened up opportunities for introducing more products, according to the company.
There’s Auro’s collaboration with Don Papa Rum, a 70% Dark Chocolate infused with Don Papa Rum; and limited-edition products like the Intergalactic Choco Bomb with The Everyday, and tea-infused chocolate bars with Serenitea.
“We are always looking for different ways how we can innovate the tree-to-bar chocolate experience through our products and honoring our heritage,” Ms. Go said.
She also cited the outpour of support for sustainably sourced, locally made products in the pandemic, increasing the chances of local brands to succeed on the global stage.
SUPPORTING FARMERS
The pandemic didn’t stop Auro from their advocacy of supporting cacao farmers. The company reported that they were able to buy nearly 100 metric tons of cacao beans from farmers, paid with an additional 10–15% premium above the world market price.
Cacao programs also addressed farmers’ concerns regarding production and quality.
Through the Organic Conversion Program (OCP), Auro helps its partners earn international organic certifications that will open new markets for their cacao. Dr. Zoi Papalexandratou, of the ZOTO Cacao Consultancy in Belgium, helps with post-harvest protocols that can maximize the flavor potential of cacao beans.
“With our rich history and tradition with cacao, there is much more to discover in terms of variety, origin, and flavor profile of cacao beans all over the country,” said Ms. Go. — Brontë H. Lacsamana
LONDON — The Royal Family removed Prince Andrew’s military links and royal patronages on Thursday and said he will no longer be known as “His Royal Highness,” as the son of Queen Elizabeth fights a US lawsuit in which he is accused of sex abuse.
Andrew, 61, the Duke of York, was forced to step down from public duties in 2019 because of his connections to convicted US sex offender Jeffrey Epstein, and after a disastrous BBC TV interview which the prince had hoped would clear his name.
Thursday’s move by the royal family means he will now lose all his royal connections.
“With the queen’s approval and agreement, The Duke of York’s military affiliations and royal patronages have been returned to the queen,” Buckingham Palace said in a statement.
“The Duke of York will continue not to undertake any public duties and is defending this case as a private citizen.”
On Wednesday, Andrew’s lawyers failed to persuade a US judge to dismiss a civil lawsuit in which Virginia Giuffre accuses him of sexually abusing her when she was a teenager.
US District Judge Lewis Kaplan said Ms. Giuffre, 38, could pursue claims that Andrew battered her and intentionally caused her emotional distress while Epstein — a financier who killed himself in jail in August 2019 while awaiting his sex trafficking trial — was trafficking her.
The prince, the 95-year-old queen’s second son, has denied Ms. Giuffre’s accusations that he forced her to have sex more than two decades ago at a London home of former Epstein associate Ghislaine Maxwell, and abused her at two Epstein properties.
The judge’s decision means Andrew could be forced to give evidence at a trial which could begin between September and December 2022 if no settlement were reached.
‘MARATHON NOT A SPRINT’
“Given the robustness with which Judge Kaplan greeted our arguments, we are unsurprised by the ruling,” a source close to Andrew said.
“However, it was not a judgment on the merits of Ms. Giuffre’s allegations. This is a marathon not a sprint and the Duke will continue to defend himself against these claims.”
A representative for Ms. Giuffre did not immediately respond to a request for comment.
Andrew’s links to Epstein had led to a swathe of damaging media reports, leading the prince to decide to do a TV interview in November 2019 which he hoped would resolve the matter.
It instead led to ridicule and further questions, and as the controversy grew, Buckingham Palace had increasingly distanced itself from the prince, declining to comment and referring all questions to his lawyers.
“This is now about the protection of the royal family’s reputation. This is likely to do, and is already doing, considerable reputational damage — it’s being followed around the world,” the BBC’s royal correspondent Nicholas Witchell said.
The US conviction last month of his friend Ghislaine Maxwell on sex trafficking and other charges of recruiting and grooming underage girls for Epstein to abuse, together with his own case, had left his reputation in the British media in tatters.
A royal source said the decision over Andrew came after wide discussions among the Windsors, and that his military affiliations and patronages would be redistributed to other members of the family.
Earlier, an open letter to the queen, signed by more than 150 veterans calling for Andrew to have his military titles taken away and “if necessary, that he be dishonorably discharged,” was published by the anti-monarchy campaign group Republic.
They called for Elizabeth to take immediate action because her son had been “uncooperative and less than truthful” about his relationship with Epstein, and had brought the armed services he represented into disrepute.
“Regardless of the result of Virginia Giuffre’s civil case against Prince Andrew, his position in Britain’s armed forces is now untenable,” the veterans’ letter said.
The scandal surrounding Andrew comes on the heels of the damage caused after the queen’s grandson Prince Harry and his American wife Meghan quit royal duties to forge new careers in Los Angeles, later accusing the royal household of racism.
They too were stripped of all their patronages, the “His and Her Royal Highness” titles, and Harry also lost his prized military roles. — Michael Holden/Reuters
WASHINGTON — The US Supreme Court on Thursday blocked President Joseph R. Biden, Jr.’s coronavirus disease 2019 (COVID-19) vaccination-or-testing mandate for large businesses — a policy the conservative justices deemed an improper imposition on the lives and health of many Americans — while endorsing a separate federal vaccine requirement for healthcare facilities.
Mr. Biden voiced disappointment with the conservative-majority court’s decision to halt his administration’s rule requiring vaccines or weekly COVID-19 tests for employees at businesses with at least 100 employees. Mr. Biden said it now is up to states and employers to decide whether to require workers “to take the simple and effective step of getting vaccinated.”
The court was divided in both cases, centering on pandemic-related federal regulations at a time of escalating coronavirus infections driven by the Omicron variant in a nation that leads the world with more than 845,000 COVID-19 deaths.
It ruled 6–3, with the six conservative justices in the majority and three liberal justices dissenting, in blocking the rule involving large businesses — a policy that applied to more than 80 million employees. The court’s majority downplayed the risk COVID-19 specifically poses in the workplace, comparing it instead to “day-to-day” crime and pollution hazards that individuals face everywhere.
The vote was 5–4 to allow the healthcare worker rule, which requires vaccination for about 10.3 million workers at 76,000 healthcare facilities including hospitals and nursing homes that accept money from the Medicare and Medicaid government health insurance programs for elderly, disabled and low-income Americans. Two conservatives, Chief Justice John Roberts and Justice Brett Kavanaugh, joined the liberals in the majority in that case.
In a statement, Mr. Biden said the court’s decision allowing the healthcare worker mandate “will save lives” and his administration will enforce it. Workers must be vaccinated by the end of February.
The court heard arguments last Friday in the legal fight over temporary mandates issued in November by two federal agencies aimed at increasing US vaccination rates and making workplaces and healthcare settings safer. The cases tested presidential powers to address a swelling public health crisis.
In an unsigned ruling, the court said the rule affecting large businesses, issued by the Occupational Safety and Health Administration (OSHA), was not an ordinary use of federal power.
“It is instead a significant encroachment on the lives — and health — of a vast number of employees,” the court said.
“Permitting OSHA to regulate the hazards of daily life -simply because most Americans have jobs and face those same risks while on the clock — would significantly expand OSHA’s regulatory authority without clear congressional authorization,” the court added.
Challengers led by the state of Ohio and the National Federation of Independent Business (NFIB), which represents employers, asked the justices to block OSHA’s rule after a lower court lifted an injunction against it. Companies were supposed to start showing they were in compliance starting this past Monday.
In dissent, Justice Stephen Breyer wrote on behalf of the liberal justices that the decision “stymies the federal government’s ability to counter the unparalleled threat that COVID-19 poses to our nation’s workers.”
‘WELCOME RELIEF’
“Today’s decision is welcome relief for America’s small businesses, who are still trying to get their business back on track since the beginning of the pandemic,” said Karen Harned, executive director of the NFIB’s legal arm.
The high court blocked a Dec. 17 decision by the Cincinnati-based 6th US Circuit Court of Appeals that had allowed the mandate to go into effect.
In the healthcare facilities case, the court’s differently comprised majority concluded that the regulation “fits neatly” within the power Congress conferred on the government to impose conditions on Medicaid and Medicare funds, which includes policies that protect health and safety.
“After all, ensuring that providers take steps to avoid transmitting a dangerous virus to their patients is consistent with the fundamental principle of the medical profession: first, do no harm,” the court said.
Four conservative justices dissented from the healthcare facility decision, concluding that Congress had not given the federal agency the authority to require vaccinations for millions of healthcare workers. In one dissent, Justice Samuel Alito doubted that the agency can “put more than 10 million healthcare workers to the choice of their jobs or an irreversible medical treatment.”
The justices lifted orders by federal judges in Missouri and Louisiana blocking the policy in 24 states, allowing the administration to enforce it nearly nationwide. Enforcement was blocked in Texas by a lower court in separate litigation not at issue before the Supreme Court.
Gerald Harmon, president of the American Medical Association physicians group, said that although he is pleased the court allowed the healthcare worker mandate, the broader workplace rule is also needed.
“Workplace transmission has been a major factor in the spread of COVID-19,” Mr. Harmon added. “Now more than ever, workers in all settings across the country need commonsense, evidence-based protections against COVID-19 infection, hospitalization, and death.” — Lawrence Hurley and Andrew Chung/Reuters
A RUSSIAN FLAG flies with the Spasskaya Tower of the Kremlin in the background in Moscow, Russia, Feb. 27, 2019. — REUTERS
VIENNA/MOSCOW — Poland’s foreign minister said on Thursday that Europe was at risk of plunging into war as Russia said it was not yet giving up on diplomacy but that military experts were preparing options in case tensions over Ukraine could not be defused.
In Washington, the White House said the threat of a Russian invasion of Ukraine remained high with some 100,000 Russian troops deployed and the United States would make public within 24 hours intelligence suggesting Russia might seek to invent a pretext to justify one.
“The drumbeat of war is sounding loud, and the rhetoric has gotten rather shrill,” Michael Carpenter, US Ambassador to the Organization for Security and Cooperation in Europe (OSCE), said after talks with Russia in Vienna.
“The threat of military invasion is high,” White House national security adviser Jake Sullivan told reporters. “There are no dates set for any more talks. We have to consult with allies and partners first.”
Russia said dialogue was continuing but was hitting a dead end as it tried to persuade the West to bar Ukraine from joining NATO and roll back decades of alliance expansion in Europe — demands that the United States has called “non-starters.”
“At this stage it is really disappointing,” Russian Ambassador Alexander Lukashevich told reporters after a meeting of the OSCE, the third leg in a series of East-West talks this week.
He warned of possible “catastrophic consequences” if the two sides could not agree on what Russia has termed security red lines but said Moscow had not given up on diplomacy and would even speed it up.
The Russian comments reflect a pattern of Moscow saying it wants to pursue diplomacy but rejecting calls to reverse its troop build-up near Ukraine and warning of unspecified consequences for Western security if its demands go unheeded.
Earlier, Polish Foreign Minister Zbigniew Rau told the 57-nation security forum: “It seems that the risk of war in the OSCE area is now greater than ever before in the last 30 years.”
While overlooking wars during that period in the former Yugoslavia and parts of the former Soviet Union, his comment highlighted the level of European anxiety over Russia’s build-up of some 100,000 troops within reach of its border with Ukraine.
Russia denies plans to invade Ukraine but its military build-up has forced the United States and its allies to the negotiating table.
Rau reported no breakthrough at the Vienna meeting, which followed Russia-US talks in Geneva on Monday and a Russia-NATO conference in Brussels on Wednesday.
‘DIFFERENCE OF APPROACHES’
Russian Deputy Foreign Minister Sergei Ryabkov said the earlier meetings had shown there was a “dead end or difference of approaches,” and he saw no reason to sit down again in the coming days to restart the same discussions.
He told RTVI television Russian military specialists were providing options to President Vladimir Putin in case the Ukraine situation worsened but diplomacy must be given a chance.
The Russian ruble fell by more than 2% against the dollar on Mr. Ryabkov’s comments, which also prompted a sell-off in government bonds. A trader at a major Russian bank told Reuters the market had partly reacted to a comment from Mr. Ryabkov, in reply to a question, that he would neither confirm nor rule out the possibility that Russia might deploy “military infrastructure” in Cuba and Venezuela.
Mr. Sullivan said US intelligence agencies believed Russia may want “the option of fabricating a pretext for an invasion, including through sabotage activities and information operations, by accusing Ukraine of preparing an imminent attack against Russian forces in Eastern Ukraine.”
Washington would share details “on what we see as this potential laying of a pretext” with the media within 24 hours, he added.
US Defense Secretary Lloyd Austin spoke to his Ukrainian counterpart, Oleksii Reznikov, about the Russian buildup. The Pentagon estimated two-thirds of the Russian forces near Ukraine were “out-of-garrison,” meaning they had deployed from other parts of Russia.
‘ELIMINATE THREATS’
Moscow says it is threatened by NATO’s expansion towards its borders by taking in 14 new members from former communist eastern Europe since the Cold War ended. It wants to draw “red lines” to stop the alliance from admitting Ukraine as a member or basing missiles there.
Washington has rejected those demands but said it is willing to talk about arms control, missile deployments, and confidence-building measures to move on from one of the most fraught moments in East-West relations since the Cold War.
Ambassador Lukashevich told the OSCE that unless Moscow received a constructive response, “we will be forced to draw appropriate conclusions and take all necessary measures to ensure strategic balance and eliminate unacceptable threats to our national security.”
He went on: “Russia is a peace-loving country. But we do not need peace at any cost. The need to obtain these legally formalized security guarantees for us is unconditional.”
Kremlin spokesman Dmitry Peskov criticized a sanctions bill unveiled by US Senate Democrats that would target top Russian government and military officials, including Putin, as well as banking institutions, if Russia attacks Ukraine.
Mr. Peskov said imposing sanctions on Mr. Putin would be tantamount to severing relations.
“We view the appearance of such documents and statements extremely negatively against the background of an ongoing series of negotiations, albeit unsuccessful ones,” he said. — Thomas Escritt and Tom Balmforth/Reuters
OTTAWA — Coronavirus disease 2019 (COVID-19) vaccine requirements for foreign truckers at the Canada-US border still could cause supply-chain disruptions if both countries do not allow exemptions, the head of the Canadian Trucking Alliance (CTA) said on Thursday.
Late on Wednesday, Canada dropped a vaccine mandate for Canadian truckers returning home from the United States that was supposed to kick in on Saturday, but unvaccinated non-Canadians will still be turned back at the border.
The United States has signaled, without providing details, that foreign truck drivers will have to show proof of inoculation to enter the United States starting on Jan. 22.
So if both countries keep their respective bans on unvaccinated foreign drivers, thousands will be taken off the roads, creating the first policy measure since the pandemic began that could limit cross-border trucking traffic.
“After the 22nd, my members won’t be able to go into the United States if they’re unvaccinated. And the Americans won’t be able to get into here if they’re not vaccinated,” Stephen Laskowski, president and chief executive of the CTA, told Reuters.
“So we’re asking both countries to work together to remove their foreign national [vaccine] mandate and look for a better date to put this in place,” he added.
The trucking industry carries more than two-thirds of the C$650 billion ($521 billion) in goods traded annually between Canada and the United States.
The CTA estimates that 10% to 20%, or between 12,000-22,000 of Canadian truck drivers, and 40%, or some 16,000, of U.S. truck drivers traveling into Canada would be sidelined by mandates.
Supply chain disruptions drove Canada’s headline inflation to an 18-year high in November, and the Bank of Canada has signaled that it could raise interest rates to counter rising prices as soon as April.
In the United States, inflation rose at its fastest pace year-to-year in nearly four decades in December.
Mr. Laskowski said he is in contact with the American Trucking Associations (ATA), and that neither the CTA or the ATA have any information as to how the US mandate will be enforced. The ATA did not immediately respond to a request for comment.
Canada’s border agency and the ministry of public safety, which oversees the border, did not immediately comment when asked about potential exemptions for foreign drivers.
The White House declined to immediately comment. — Steve Scherer/Reuters
CCBPI’s Manufacturing Director Frank Garcia receives the Corporate Award for Excellence in Supply Management Practices at the 2021 Gawad Sinop Awards
Coca-Cola Beverages Philippines, Inc. (CCBPI)—the bottling arm of Coca-Cola in the country—has won the prestigious 2021 Gawad Sinop Awards for Excellence in Supply Management, in recognition of its operational achievements with one of the most complex supply chains in the region. CCBPI was cited for its sustainability and clean energy initiatives, for the optimization of its sprawling operations, and for its holistic outreach and relief programs that utilize the strengths of its extensive supply chain.
Outgoing CCBPI Logistics Director Ruth Genota also earned the Supply Management Professional of the Year award for her leadership contributions, particularly to CCBPI’s extensive logistics operations. CCBPI operates one of the biggest truck fleets in the country, with almost 3,000 trucks and over 2,000 sales service vehicles. Approximately 2,500 shipments per day are undertaken, transporting to 20,000 doors across the country.
Genota has since assumed the role of the Global Logistics Excellence Director for Bottling Investments Group, CCBPI’s mother company.
The Gawad Sinop Awards was organized by the Foundation of the Society of Fellows in Supply Management, Inc. and the Philippine Institute of Supply Management, meant to recognize individuals and institutions who significantly go above and beyond in the supply chain management industry.
Gawad Sinop’s recognition of CCBPI is testament to its commitment to quality service, integrating best-in-class practices and innovations to an extensive and complex supply chain that caters to millions. CCBPI operates 20 plants and over 70 distribution centers across the Philippines. Of the Company’s 10,000 associates, 6,000 are part of its supply chain—spanning manufacturing, quality and safety, and logistics and warehousing.
In line with this, implicit in every bottle of Coca-Cola in the market, is the promise that it was manufactured and delivered following the most stringent of safety measures and protocols— this promise is at the forefront of the Company’s day-to-day operations.
Outgoing CCBPI Logistics Director, Ruth Genota, recognized as the Supply Management Professional of the Year at the 2021 Gawad Sinop Awards. Genota has since assumed the role of Global Logistics Excellence Director for Bottling Investments Group, CCBPI’s mother company.
Service through supply chain innovations
Gawad Sinop likewise cited CCBPI’s sustainability initiatives across its operations. To date, as much as 65% of Coca-Cola’s total energy consumption is sourced from renewable and clean energy. CCBPI has also launched multi-phased solar power projects, with the first completed in 2021 via 14,000 solar panels installed in three plants. Four more sites are being prepared for the next phase, toward the company’s goal of a 24,000 solar panel project.
Coca-Cola has also been delivering significantly on reducing overall energy consumption. To track progress on this front, the Company uses a metric called Energy Use Ratio (EUR), which is the amount of energy used for every liter of product produced. The suite of energy savings initiatives has so far improved Coca-Cola’s energy use ratio from 2014 to 2021 by as much as 30%, which means that Coca-Cola is utilizing less power even as it produces more beverages.
On an annual basis, Coca-Cola ships around 6,000 containers across the country. CCBPI Logistics also operates in one of the most difficult environments in the world, given that delivery across an archipelago is compounded by challenges in transport infrastructure. CCBPI has thus established more efficient logistics operations and, in June 2021, launched its Mega Manila Hub—a strategic convergence point for the Company’s shipping operations, giving it an opportunity to synergize transport movements and generate cost savings to serve more people all over the Philippines.
The Gawad Sinop award also recognized CCBPI’s mobilization to provide relief goods to communities and institutions nationwide in times of disasters and hardships, from typhoons and earthquakes to community quarantines due to the COVID-19 pandemic.
Without much fanfare, CCBPI has actually been leveraging its considerable operational capabilities, such as the scale of its truck fleet, to provide COVID-19-related relief to as many Filipinos as possible. More specifically, the Company has been making use of its nationwide transportation network to deliver essential beverages and food packs to as many households and communities as it can nationwide, from city centers to far-flung communities.
Supply chain excellence professionals
CCBPI’s scale has spurred continuous innovation within its operations, as well as a special focus on strengthening the capabilities of its associates—for CCBPI has always recognized that it is People that drive the growth of companies. As a necessary consequence, companies thus have a built-in incentive of doing their share in providing a career development path for their people.
To this end, CCBPI maintains a Supply Chain Excellence Team (SCE) that is focused on building a culture of continuous improvement across the organization. Its flagship people development program, SMART Supply Chain, is anchored on the Company’s principle of championing its people and building on their skills and talents. Associates that are hired as line operators and production technicians are given the resources, training, experience, and the tangible opportunity to become production engineers. Through this upskilling initiative, Coca-Cola promotes employee advancement among its associates.
CCBPI Manufacturing Director Frank Garcia, who accepted the Gawad Sinop awards on behalf of the company, said in a statement during the ceremony: “Coca-Cola shares the vision of PISM to grow the Filipino supply chain management profession. We are truly honored to be given this award and be recognized by PISM—it’s an affirmation that our Supply Chain management initiatives at CCBPI are helping pave the way in leading the industry towards the future.”
CCBPI’s receipt of the Gawad Sinop awards also underscored the Company’s guiding principle and People-First commitment. Garcia emphasized that the award was testament to the hard work of the over 10,000 Coca-Cola associates who, day in and day out, commit themselves to providing happy refreshing moments through top-quality Coca-Cola beverages to Filipinos across the country.
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THE ECONOMY is still well-placed to grow within target this year as the Omicron variant is expected to be a risk to the economic outlook in the short term, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.
“Our position is that, despite the recent variant of the virus, we will hit our projected growth of 7-9%. So the variant, as it turned out, is mild and less lethal,” Mr. Diokno said at the 2022 virtual inaugural meeting of the Management Association of the Philippines.
“We hope that the variant will be gone by the middle of February or March. So that gives us confidence that we will hit our growth target of 7-9% this year, and 6-7% for the next two years,” he added.
Like other countries, the Philippines is experiencing an Omicron-driven surge. Active cases rose by a record 34,021 to 237,387 on Thursday, based on data from the Department of Health.
After the holidays, the government imposed tighter restrictions to curb the infection spread. Metro Manila and provinces seeing the surge were placed under Alert Level 3 until Jan. 15. This means businesses had to reduce their operations.
Economic managers earlier said the more restrictive Alert Level 3 in Metro Manila and nearby regions could cost P3 billion in losses to productivity contributions.
Government officials are keen on imposing granular lockdowns instead of total lockdowns that were implemented earlier.
Mr. Diokno is hopeful that because the Omicron is “mild and less lethal” and since it hit early in the year, its impact will not be long-lasting to the growth outlook.
“We hope that the variant will be gone by the middle of February or March. So that gives us confidence that we will hit our growth target of 7-9% this year, and 6-7% for the next two years,” Mr. Diokno said.
The last time the country saw an infection spike was in August, no thanks to the Delta variant. Despite this, the economy beat expectations as it grew by 7.1% in the third quarter, bringing full-year growth to 4.9%.
The Philippine economy contracted by a record 9.6% in 2020 due to having one of the world’s longest and strictest lockdown at the early stages of the pandemic. — Luz Wendy T. Noble
The southbound portion of Roxas Boulevard will be closed to vehicular traffic starting 6 a.m., Jan. 15 to make way for the rehabilitation of the damaged Libertad Drainage Main Box Culvert. PHOTO BY METRO MANILA DEVELOPMENT AUTHORITY
By Arjay L. Balinbin, Senior Reporter
TRUCK OPERATORS are expected to incur additional expenses as they would need to take a longer route during the closure of the southbound portion of Roxas Boulevard.
The Roxas Boulevard southbound lane will be closed to motorists for “two months” beginning Saturday (Jan. 15) to give way for the repair of the damaged box culvert, South Manila district engineer Mikunug D. Macud of the Department of Public Works and Highways (DPWH) told BusinessWorld in a phone interview.
The damaged box culvert, which was built in the 1970s, is directly in front of HK Sun Plaza in Pasay City heading to the EDSA-Roxas Boulevard flyover.
Mr. Macud said the northbound portion of the road will also be closed for another two months after repairs on the southbound portion are completed by March 15.
“The number one effect is additional expense on the part of the truckers because we will have to take longer routes, use much more fuel and pay bigger toll fees. Plus, the fact that if everyone uses those routes, there will be more traffic,” Confederation of Truckers Association of the Philippines President Maria B. Zapata said partly in Filipino in a phone interview.
“So this is really a struggle for the operators,” she added.
The Metropolitan Manila Development Authority (MMDA) said 887 cargo trucks and 1,029 trailers traverse the Roxas Boulevard southbound lane every day.
As an alternate route, trucks and trailers from Bonifacio Drive going to Roxas Boulevard southbound can turn left to P. Burgos Avenue, then straight towards Finance Road and Ayala Boulevard, then right to San Marcelino Street, and then P. Quirino Avenue to South Luzon Expressway to their destination.
For free-flowing movement, Ms. Zapata suggested that all local government units (LGUs) in the National Capital Region (NCR) lift the ban on cargo trucks.
Sought for comment, MMDA Chairman Benjamin “Benhur” de Castro Abalos, Jr. said in a phone message: “There is no truck ban in the NCR except EDSA since last year.”
Ms. Zapata said traffic enforcers should be more considerate of truckers during the closure of Roxas Boulevard, noting the high penalties for offenses such as “obstruction.”
She said the truckers are hoping to discuss their requests with the Metro Manila Council, which is composed of mayors.
In a separate phone interview, Philippine Exporters Confederation, Inc. (Philexport) Assistant Vice-President Flordeliza C. Leong said the closure of Roxas Boulevard is a disruption but it will improve infrastructure in the long term.
“When there’s disruption in the flow of goods and the movement of people, there are cost implications, there is also delay in terms of time, and all these will mean additional cost. Unfortunately, this is passed on to the consumers,” she noted, adding that there will also be “missed opportunities and decline in productivity because of the longer route.”
Among the alternatives previously eyed was for the container vans to be carried on barges for transport from the Manila International Container Terminal to the Cavite Gateway Terminal in Tanza, Cavite.
Mr. Abalos said in a phone interview that the plan will still push through, “but not right away while the DPWH is still fixing the road network in the Tanza station.”
“There were some problems encountered, particularly the right of way, because the trailers are big… They’ll be stuck in traffic, so the suggestion is there should be one entrance and one exit, so while the DPWH is fixing it, we have no choice [but to push through with the closure], kasi unang-una, delikado at baka mag-collapse na ito (because it is dangerous and the box culvert may collapse),” he added.
The agency plans to implement a zipper lane or counterflow scheme for light vehicles “on a case-to-case basis.”
THE COUNTRY’S dollar reserves inched up as of end-December buoyed by higher valuation of gold buffers, but fell short of the central bank’s year-end projection.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the gross international reserves (GIR) stood at $108.891 billion as of end-December. This is 1.08% up from the $107.723 billion as of end-November but was lower by 1.11% from the record $110.117-billion level seen as of end-2020.
The GIR also fell below the $111-billion end-2021 projection given by the BSP.
“The month-on-month increase in the GIR level reflected mainly the National Government’s net foreign currency deposits with the BSP and upward adjustment in the value of the BSP’s gold holdings due to the increase in the price of gold in the international market,” the BSP said in a statement
At its end-December level, the GIR is enough to cover 10.3 months’ worth of imports of goods and payments of services and primary income.
It is also equivalent to about 8.8 times the country’s short-term external debt based on original maturity and 5.9 times based on residual maturity.
The seasonal increase in remittances sent by overseas Filipinos during the holiday season drove the GIR to its highest level in 12 months or since December 2020, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The end-December GIR level also reflects the 3% increase in world gold prices during the month, he added.
“Despite stark depreciation pressure on the local currency throughout the year, the central bank has managed to maintain a very decent stash of ammunition to stave off any speculative attack on the currency,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.
The peso closed at P50.999 a dollar on Dec. 31, 2021, weaker by 6.2% from its P48.023 finish on Dec. 29, 2020.
Having an ample level of foreign exchange buffers safeguards an economy from market volatility and is an assurance of the country’s capability for debt repayment in the event of an economic downturn.
The BSP earlier said that they expect lower GIR than previously anticipated amid the “use of reserves to pay foreign currency obligations and various expenditures.”
As of end-December, reserves in the form of foreign investments edged up 0.26% to $91.748 billion from $91.505 billion as of end-November. This was 2% down from the $93.644 billion seen a year ago.
The country’s gold reserves were valued at $9.332 billion as of end-2021, higher by 3.7% than the $9 billion a month earlier but falling by 19.6% from the $11.605 billion as of end-2020.
The Philippines’ reserve position in the International Monetary Fund (IMF) increased by 2.5% month on month to $801.6 million, but fell by 1.4% from the $813.1 million from a year ago.
Special drawing rights held by the Philippines — or the amount the country can tap from the IMF — stood at $3.942 billion for the third straight month and jumped more than three times (219%) the $1.232 billion seen as of end-2020.
Meanwhile, foreign currency deposits stood at $3.066 billion, increasing 23% month on month and by 8.7% year on year.
Asian Institute of Management economist John Paolo R. Rivera said any restriction measures would impact the country’s foreign exchange buffers.
“GIR tends to improve when restrictions are stricter because we do not get to unload our foreign currency reserves as our economy has lower domestic demand and is more reliant on domestic production,” Mr. Rivera said in an e-mail.
For his part, ING’s Mr. Mapa said developments related to tightening of the monetary policy in the US could affect GIR developments this year. Federal Reserve officials have already signaled possible rate hikes this year to curb elevated inflation in the United States. — Luz Wendy T. Noble
THE PHILIPPINES’ budget deficit would likely stay far above the pre-pandemic average in 2022 even as the gap narrows on a rebound in revenues, adding fiscal pressures to the next administration, Fitch Solutions Country and Industry Research said.
Fitch Solutions in a report on Wednesday said the 2022 deficit would likely narrow to 7.9% of gross domestic product (GDP) from an estimated 8.3% last year.
“Rebounding revenues on the back of the economic recovery will offset still expansion fiscal spending, with the government seeking to accelerate the economic recovery in 2022,” the think tank said.
Fitch Solutions raised the budget deficit forecast from the previous 7.8% of GDP for 2021 and 6.9% for 2022, noting the country still faces risks from the pandemic’s threat to revenues.
“We believe the Philippine government could come under some pressure to speed up fiscal consolidation plans given the sharp rise in public debt levels during the pandemic,” Fitch said.
As revenues slipped during the pandemic, the country’s deficit expanded to 7.5% of GDP in 2020 from 3.4% a year earlier.
In the 11 months to November, the budget deficit reached P1.33 trillion, up by 24.63% compared with the P1.07 trillion in the same period last year.
The government’s economic managers said the fiscal gap could reach 8.2% of GDP for 2021, then 7.7% for this year.
Fitch Solutions said economic growth this year would likely be stronger than in 2021 despite the threat of the Omicron variant of the coronavirus disease 2019 (COVID-19).
“As such, while the budget continues to provide economic stimulus, revenue growth should be such that the overall deficit narrows in 2022,” it added.
This year’s P5-trillion national budget is larger than previously expected, Fitch Solutions said.
Spending would likely grow by 11.2% in 2022, up from the expected 11% for 2021.
“Following an announcement that unused funds from the 2021 budget could be spent in 2022, we expect this to push up overall spending for the year,” Fitch Solutions said.
Meanwhile, revenues are projected to expand by 14% this year from 7% in 2021 as eased lockdowns support more domestic activity and tax collections.
Revenue collection in the 11 months to November hit P2.7 trillion, or 5.99% higher than last year, Treasury data showed.
Amid the deterioration of the country’s fiscal position during the pandemic, Fitch Solutions said the next president could face challenges if he or she prioritizes growth over deficit consolidation.
The think tank expects the debt-to-GDP ratio to rise to 69.2% in 2022. To compare, the debt-to-GDP ratio was 63.1% as of September last year.
“Government bond investors may become increasingly concerned about the surge in public debt, especially if they believe that further public debt increases are likely,” Fitch Solutions said. “In turn, this could see borrowing costs rise over the coming years as bondholders demand a higher risk premia.”
The think tank said the next president would also need to scale down spending to cut the deficit and maintain investor confidence, noting this is a “challenging” choice while the country needs spending in infrastructure, education, and healthcare. — Jenina P. Ibañez
THE DEPARTMENT of Budget and Management (DBM) is asking National Government agencies to avoid duplicating services that have been devolved to local government units (LGUs) in its national budget call for 2023.
DBM in a national budget memorandum dated Jan. 12 noted the increase in resources made available to LGUs.
“National Government agencies should refrain from duplicating the direct delivery of devolved functions and services with the LGUs, and rather focus on capacitating and monitoring the LGUs and shift to addressing emerging national program concerns,” DBM said.
This should be consistent with strategies that agencies outlined in their devolution transition plans, the department added.
The Supreme Court’s Mandanas ruling is named after Batangas Governor Hermilando I. Mandanas who successfully challenged the government’s previous position that LGUs were entitled to a smaller share of National Government funds.
Starting this year, LGUs get a bigger share of the National Government’s tax collections, alongside the transfer of basic services.
DBM in the memorandum said regional needs are expected to be prioritized in national plans. At the same time, regional plans should be aligned with set national priorities.
“Regional agency programs must also be responsive to the needs of the poorest, disadvantaged but well-performing LGUs in their sectors,” DBM said. “Agency programs to be implemented by LGUs shall have been coordinated with the targeted LGUs as to the resource availabilities and should be responsive to local and regional needs.”
The Finance department has said the Supreme Court’s Mandanas ruling would lead to lower economic growth because the higher tax allocation for local government units would dampen spending efficiency.
Meanwhile, Institute for Leadership, Empowerment, and Democracy (I-LEAD) Executive Director Zy-za Nadine Suzara said spending inefficiencies by LGUs will not deter economic growth because a greater bulk of the budget remains with the National Government.
The 2023 budget will include only implementation-ready agency proposals to improve efficiency in delivering public services, DBM said. — Jenina P. Ibañez
