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A hotter planet means a hungrier planet, climate report warns

FARMERS try to recover whatever they can after rice fields in Cagayan Valley were flooded when Typhoon Ulysses swept through the region in November 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

LONDON — The future of food is troubling.

Nearly a third of the world’s crop fields and livestock rangeland will be unsuitable for food production by the end of this century if climate-warming emissions aren’t heavily curbed, a report by the UN Intergovernmental Panel on Climate Change (IPCC) says.

Simultaneous crop failures in the world’s breadbaskets and livestock deaths from extreme heat are just a few of the disasters that may befall the world’s food system by 2050 as the planet warms. Such scenarios would lead to higher prices and put an additional 80 million people at risk of hunger.

“The future looks dark if we do not take action,” said Rachel Bezner Kerr, an IPCC lead author and global development researcher at Cornell University. “No region will be spared.”

ON THE FARM 

Scientists say the worst effects of climate change would start to be unleashed if global temperatures rise more that 1.5 degrees Celsius (2.7 Fahrenheit) above pre-industrial levels. Having already warmed 1.1°C, the planet is expected to hit the 1.5°C threshold within two decades.

The UN report released on Monday looked broadly at many consequences of climate change, from unliveable cities to shrinking economies. But its outlook on future food supply was especially grave.

Global food production is still increasing, but not as fast as in the past. Climate change has already curbed production growth by some 21% over the last six decades, the report says — at a time when demand is rising with the increasing population.

Heavy rains, high temperatures, poorer soil quality, an increase in pests such as locusts and a decrease in helpful pollinators such as bees will cause grain supplies to stumble. Yields of maize, rice, and wheat are expected to fall 10% to 25% for every degree of warming.

Farms could also see huge labor shortages by 2100, with as many as 250 more days per year becoming unworkable in some regions unless climate change is contained.

Tropical and subtropical countries would see losses of up to $22 billion annually in the dairy industry and $38 billion in beef by 2100 as heat stress thins out herds, the report said.

Hot or humid regions, including the Sahel, Amazon basin and Southeast Asia, would suffer most.

“Living in the Philippines, I have seen how tropical cyclones, flooding, and drought can lead to severe lack of nutritious food on the table,” said Rodel Lasco, an IPCC author and scientist with the country’s Climate Change Commission. “The most impacted are the poorest sectors of society.”

IN THE SEA 

Impacts aren’t limited to land. Marine heatwaves, acidifying oceans, saltwater seeping into freshwater areas and harmful algal blooms are taking a toll on fish and other seafood.

Fish currently represent about 17% of global meat consumption and is projected to increase. But global fishery yields have declined 4.1% due to climate change between 1930 and 2010, the IPCC report said, with some areas, such as the North Sea and Iberian Coast, seeing losses as high as 35%.

As global temperatures continue to rise, that trend is expected to continue.

ADAPTIVE POTENTIAL 

As food productivity shrinks, feeding the world will become more challenging.

When governments are alerted that crops are at risk, they typically turn to “Green Revolution techniques of using fertilizers, machinery and large monocultures to boost production,” said Olivier De Schutter, a co-chair of the International Panel of Experts on Sustainable Food Systems not involved with the IPCC report. “But that is clearly not the way forward.”

The report highlights farming methods that coexist with nature to scale up production, such as using agroforestry — the practice of planting crops among trees — or community gardens. Shifting diets away from meat and dairy would also make a positive difference.

But containing climate change is key. “If the planet continues to warm beyond 2°C,” Mr. Lasco said, “trade-offs will be more painful.” — Gloria Dickie/Reuters

Pag-IBIG posts record-high P34.73B net income in 2021

Members to earn dividend rate of 5.16% on Regular Savings, 5.66% on MP2

Pag-IBIG Fund netted an income of over P30 billion for the fifth consecutive year in 2021 despite the ongoing pandemic, the agency’s top executive announced on Thursday (Feb.24) during the Pag-IBIG Fund Chairman’s Report.

“As we close our books for 2021, I am happy to report that your Pag-IBIG Fund achieved another milestone. Our strong performance last year led us to reach a net income of P34.73 billion! This is our highest net income ever, surpassing by 9.5% our P31.71 billion net income in 2020 and topping the previous record of P34.37 billion netted in 2019. I’d also like to note that this is the fifth time that our net income breached the P30-billion mark. Our members will directly benefit because we shall again go beyond what is required of us by declaring over 86% of our net income as dividends for their savings,” said Secretary Eduardo D. del Rosario who heads the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees.

Under the Pag-IBIG Fund charter, the agency is required to declare at least 70% of its annual net income as dividends, which shall be credited proportionately to its members’ savings. However, Management has a recommendation to set aside 86.56% of its net income as dividends to maximize the benefit to its members during the second year of the pandemic. This is now up for approval of the Board, he added.

With robust financials, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti meanwhile said that the dividend rates on member’s savings – both mandatory and voluntary – will remain higher than other instruments available in the market.

“We know that many of our members have been asking about the dividend rates. Now we can finally share the news. For 2021, dividend rates will remain above 5%. Returns for the Pag-IBIG Regular Savings is recommended to be at 5.16% per annum, and the Modified Pag-IBIG 2 Savings to be at 5.66% per annum. Considering the challenges caused by the pandemic, Pag-IBIG’s dividend rates are still much higher than other savings accounts and financial products in the market today,” he said.

According to Moti, Pag-IBIG Fund maintained a Capital Adequacy Ratio (CAR) of 15% in 2021, which is higher than the 10% threshold set by the Bangko Sentral ng Pilipinas (BSP) for the banking industry. He added that while the agency is not regulated by the BSP, Pag-IBIG voluntarily maintains a high CAR to account for the current economic challenges, to protect the funds of its members, and to maintain the agency’s financial stability.

“The last two years under a pandemic have not been easy, but Pag-IBIG still managed to claim a number of victories. For 2021, I’m proud to say that we are back to breaking records and attaining the ‘highest evers’ in our numbers. And, we have our members to thank for it. Because by fulfilling their obligations despite the hardships and by increasing their savings in Pag-IBIG, they are helping to keep the Fund healthy and resistant against a downward trend. And with a stable Pag-IBIG Fund, more members are served and our programs remain responsive to their needs. With Pag-IBIG back to its record-breaking form, I’m excited to see what 2022 will bring,” Moti said.

 


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Oil spike could drive up Q2 inflation

MODELS of oil barrels and a pump jack are displayed in this illustration photo taken on Feb. 24, 2022. — REUTERS
MODELS of oil barrels and a pump jack are displayed in this illustration photo taken on Feb. 24. — REUTERS

THE SUSTAINED INCREASE in oil prices is likely to drive inflation beyond the Philippine central bank’s target in the second quarter, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.

Despite the heightened global  uncertainty, Mr. Diokno said the  BSP  has the policy space to support economic output, which is expected to go back to pre-pandemic levels in the second half.

“Prices are fairly stable. Our forecast is that we will be within the target range in the first quarter. And then maybe in the second quarter, it will be a little bit because of this oil prices, but it will go down again in the third and the fourth quarter,” he told ABS-CBN News Channel on Tuesday.

The BSP said February inflation likely settled at 2.8% to 3.6%, while a poll of 15 analysts by BusinessWorld yielded a median estimate of 3.3%.

If realized, inflation could be faster than 3% in January but still within the 2-4% target of the BSP. Philippine Statistics Authority will report February inflation data on Friday.

The BSP last month raised its inflation forecast for 2022 to 3.7% from 3.4% due to higher global oil and nonoil prices.

Oil prices have climbed in recent months due to persistent supply issues and geopolitical tensions. Last week, Brent crude exceeded $100 a barrel for the first time since 2014 after Russia invaded Ukraine.

Latest data from the Department of Energy showed gasoline, diesel and kerosene prices have increased by P8.75, P10.85, and P9.55 per liter, respectively, since the start of 2022.

Mr. Diokno said they were closely monitoring developments in the Russia-Ukraine conflict and its impact on the Philippine economy. He noted both countries’ investments in the Association of Southeast Asian Nations (ASEAN) region are minimal, but said the conflict is affecting domestic oil prices.

“This is going to be hard for oil-importing countries like the Philippines,” he said.

For now, the BSP will keep its forecast that Dubai crude oil would average $83.3 per barrel this year.

“As long as it does not exceed $95 per barrel on a sustained basis, not much just a day or two of fluctuation, it will be okay, our inflation target of 2-4% will hold,” Mr. Diokno said.

“Higher than that, there may be some effect but it’s not going to be disastrous for the Philippines. I think we should be more concerned about food rather than oil because oil is not a big part of our consumption index,” he added.

A Nomura Holdings, Inc. report by analysts Sonal Varma and Ting Lu showed the Philippines, along with India and Thailand, will be the “biggest losers” in case of a continued rise in oil and food prices. A 10% rise in oil prices may add 0.4 percentage point to inflation in the Philippines and India, they added.

Instead of suspending the excise tax on fuel, Mr. Diokno supports fuel subsidies for selected sectors.

“The fuel subsidy is a better option than adjusting or maybe suspending the tariff on imported oil. Because it’s targeted, it benefits the mass transport system,” he said.

The 2022 national budget allows such subsidies if crude goes beyond $80 per barrel for three straight months.

The Development Budget Coordination Committee last week said it was preparing to release P2.5 billion in fuel subsidies for qualified public utility vehicle drivers. The Agriculture department also has a P500-million budget for fuel discounts to farmers and fisherfolk.

Apart from rising oil prices, Mr. Diokno also flagged other factors that may cause faster price increases that could hurt the economy’s recovery.

“There is the increase in inflation, both in advanced and emerging market economies, due to firming demand, input shortages caused by supply-chain bottlenecks resulting from mobility restrictions and weather disruptions, and rapidly rising commodity prices,” Mr. Diokno said at a Manila Times forum on Tuesday.

He also said the elevated global commodity prices, heightened geopolitical tensions and uneven pace of vaccinations around the world might dampen global recovery.

At its latest policy review on Feb. 17, the Monetary Board kept the key policy rate at a record low of 2% to support recovery, but said it was ready to respond to second-round effects of inflation.

“The BSP will maintain its accommodative policy stance given a manageable inflation environment and emerging uncertainty surrounding domestic and global growth prospects,” Mr. Diokno said.

“The BSP will remain vigilant over the current inflation dynamics to ensure that the monetary policy stance continues to support economic recovery to the extent that the inflation outlook would allow,” he added.

The central bank will have its next policy review on March 24.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said higher oil prices would cause the country’s import bill to rise further. While this could mean an inflation spike caused by supply issues, he said the impact could hamper inflation expectations.

“The wider trade gap caused by bloated oil imports will then likely drive peso weakness, which in turn would fan inflation even further. Furthermore, the possible emergence of second-round effects could drive the inflation path higher,” Mr. Mapa said in an e-mail.

He said he expects the BSP to start hiking rates by the second quarter to be in line with global monetary policy tightening. The US Federal Reserve has signaled it might start raising interest rates this month.

“We expect BSP to finally relent and reverse course, remembering fully well the repercussions of policy dissonance with the Fed. We continue to price in a rate adjustment by the BSP by the second quarter, all the more given that gross domestic product growth will likely show four straight periods of expansion by the end of the first quarter,” he said. — Luz Wendy T. Noble

2021 budget deficit falls below ceiling

PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Senior Reporter

THE GOVERNMENT fell short of its budget deficit ceiling in 2021, as it generated better-than-expected revenues but missed its spending target, data from the Bureau of the Treasury (BTr) showed.

This brought the full-year deficit to P1.7 trillion, up by 21.87% from the previous year but missing the P1.9-trillion ceiling by 10%.

The 2021 deficit is equal to 8.61% of gross domestic product (GDP), lower than the programmed 9.3% but higher than 7.65% in 2020.

In December alone, the fiscal gap ballooned to a record P338 billion, up by 11.7% from last year’s P302.6 billion as revenues contracted by 3%.

Government spending rose by 5.21% year on year to P569.3 billion in December.

Primary payments — or total expenditures minus interest payments — grew by 5.08% to P542 billion. Interest payments increased by 7.87% to P27.3 billion during the month.

Revenues in December reached P231.3 billion, down by 3.03% from a year earlier.

Accounting for over 96.6% of the total, tax revenues rose by 6.75% to P223.5 billion.

Tax collections from the Bureau of Internal Revenue (BIR) slipped by 0.60% to P162.4 billion, while revenues generated by the Bureau of Customs (BoC) reached P60.3 billion, or 32.9% higher than last year. Other tax collecting offices posted P800 million in revenue, up by 28.53% from a year earlier.

Nontax revenues from the Bureau of the Treasury reached P4.7 billion, down by 43.41%

The government runs on a budget deficit when it spends more than it makes to fund programs that support economic growth. It borrows from foreign and local sources to plug the gap.

FULL-YEAR DEFICIT
Breaking down the P1.7-trillion full-year deficit, total spending reached P4.68 trillion, up by 10.6% compared with the previous year’s P4.23 trillion.

Spending grew due to “infrastructure and other capital expenditures, continued spending for various recovery measures including vaccine procurement and equity infusion in support of government financial institutions lending assistance programs, as well as higher internal revenue allotment shares of local government units,” the BTr said.

However, this was lower by 1.3% than the P4.74-trillion spending program.

Meanwhile, revenue collection last year hit P3 trillion, or 5.24% higher than the previous year and better than the P2.9-trillion program.

Tax collections, which represent 91% of the total, jumped by 9.4% to P2.74 trillion.

The BIR collected P2.08 trillion, up by 6.52% year on year, while Customs collections increased by 19.69% to P643.6 billion.

BTr said its income contracted by 43% to P125.3 billion “mainly due to lower dividends on National Government shares of stocks, interest on advances from GOCCs (government-owned and -controlled corporations), and other government service income.”

Nontax revenues from the Treasury plummeted by 42.95% to P125.3 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government should raise its revenue collections after seeing a modest year-on- year decline in 2021.

“There is a need to further increase tax revenue collections, in view of the further reopening of the economy towards greater normalcy,” he said via Viber.

UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message fiscal consolidation should be the priority of the next administration.

“Successful implementation of all the presidential candidates’ promises so far would definitely have budget implications moving forward,” he said.

The record-high deficit was expected given that pandemic-related complications had caused soft revenue streams, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

“Government officials were actually holding back on spending to avert a substantial hit on the debt-to-GDP ratio which settled at a precarious level of 60.5% of GDP,” he said via Viber.

“The challenge for the incoming administration would be to find a way to improve our fiscal position in the near term while still ensuring that fiscal authorities provided enough support for the recovery.”

220302Fiscal_Performance(NEW)

Philippines’ manufacturing PMI highest in over 3 years

REUTERS

MANUFACTURING ACTIVITY in the Philippines rebounded to its highest level in over three years in February, as demand and production picked up amid the further easing of mobility restrictions.

The IHS Markit Philippine Manufacturing Purchasing Managers’ Index (PMI) jumped to 52.8 in February, from 50 in January. This was the highest PMI reading since the 53.2 posted in December 2018.

A reading above 50 indicates an improvement in conditions for the manufacturing sector versus the previous month, and below the threshold means the opposite.

Manufacturing purchasing managers’ index of select ASEAN economies, February 2022

“February data revealed a return to growth for the Philippine manufacturing sector with the PMI rising to the highest in over three years. There were many key takeaways from the latest data but central to the improvement were solid expansions in both output and new orders,” Shreeya Patel, an economist at IHS Markit, said in the report released on Tuesday.

She attributed the strong growth to looser restrictions in February.

Metro Manila and nearby provinces were under a more relaxed Alert Level 2 in February, as the Omicron-driven surge in coronavirus infections subsided.

Manufacturing companies’ output and new orders increased, IHS Markit said. Production grew at the quickest pace in more than three years, as restrictions eased and more raw materials were widely available, it added.

New orders went up as companies enjoyed improved domestic demand. Exports also expanded in February, ending four straight months of contraction.

IHS Markit noted a sharp rise in purchasing activity among manufacturers who are anticipating greater demand in the next few months.

However, Ms. Patel flagged concerns over high prices and employment levels at manufacturing companies.

“Inflationary pressures were historically elevated which forced firms to push through hikes in selling charges,” she said. The higher prices of energy, raw materials, fuel and transport fueled a sharp rise in costs during the month.

Employment levels also continued to drop, with the latest decline the quickest in five months.

“Voluntary resignations continued, which has been seen since the pandemic hit the Philippines’ economy two years ago. Fortunately, production does not seem to have been impacted by staff shortages and firms are keeping backlogs at bay,” Ms. Patel said.

Philippine manufacturers continue to be optimistic about their long-term growth prospects, but the degree of optimism was below the series average, IHS Markit said.

SECOND IN ASIA
The Philippines’ PMI was the second-best reading among six Southeast Asian countries for the month, after Vietnam’s 54.3. It also exceeded the region’s average of 52.5.

Thailand, Indonesia and Malaysia all expanded in February, while Myanmar remained in contraction.

“Manufacturing conditions in ASEAN (Association of Southeast Asian Nations) improved strongly in February, with the PMI remaining among the highest on record as output rose solidly again amid the fastest upturn in new work since last October,” Lewis Cooper, an IHS Markit economist, said in a separate report.

Mr. Cooper said the survey’s price indicators showed a sharp increase in costs facing ASEAN goods manufacturers. “As a result, firms again raised their selling prices, with the rate of inflation the steepest on record,” he added.

Alex Holmes, Asia economist of Capital Economics, said the February PMIs showed that the Omicron surge had less of an economic impact than previous waves and that the industry would strengthen in the first quarter.

“The strong rebound in the Philippines PMI in February, as cases fell back, suggests growth will be quick to pick up again,” he said in a note.

Mr. Holmes said demand for Asian goods might ease in key markets. “But while there are signs of fewer new backlogs, this has only recently begun, and the sheer size of existing unmet orders means that producers will be kept busy for months to come. This will cushion the blow and means regional industrial output and exports are set to hold up well for at least the next couple of quarters,” he added. — Tobias Jared Tomas

Gov’t raises P458 billion from latest RTB offering

REUTERS

THE GOVERNMENT raised P457.8 billion via its offer of five-year retail Treasury bonds (RTBs) that ended on Monday.

The Bureau of the Treasury (BTr) said P457.4 billion of the total amount raised was fresh funds or “new money.” The remaining P259.5 million was from the bond exchange program. It was the 27th issuance of RTBs, and the first this year.

“By our funding activities in the domestic space, we are shielding our debt portfolio from volatility in the global financial markets, all while taking advantage of the commitment of the Bangko Sentral ng Pilipinas of supporting the country’s economic recovery,” National Treasurer Rosalia V. de Leon said in a statement on Tuesday.

The bond offer was launched on Feb. 15, with the Treasury raising an initial P120.764 billion from the rate-setting auction.

The retail Treasury bonds fetched a coupon rate of 4.875%, with settlement on March 4. The maturity date is March 4, 2027.

A bond trader said demand was within the expected range.

“It could have been more if not for the external factors during the offer period,” the trader said via Viber. External factors include the oil price surge and the anticipated US Federal Reserve rate hike this month.

Proceeds from the issuance would be used to fund coronavirus disease 2019 (COVID-19) recovery plans, the BTr said.

The five-year bonds were sold in denominations of at least P5,000 and in multiples of P5,000 thereafter.

Holders of fixed-rate Treasury notes maturing on March 14 and July 4 also swapped their holdings for the RTBs. The minimum exchange offer was P5,000.

The Treasury offers retail bonds to small investors who want low-risk, higher-yielding savings instruments backed by the National Government.

“The BTr’s pursuit of financial literacy and inclusion continues to be the backbone of many of our investor-centered initiatives,” Ms. De Leon said.

“This year, we strive to improve not only our ordinary investors’ access to government securities but to also help them understand the value behind developing a habit of investing.”

In November 2021, the government raised P360 billion from its offering of five-and-a-half-year RTBs. Of the total amount, P330.5 billion was raised from fresh funds, while the rest was from the bond exchange program.

It was the Treasury’s second RTB offering of 2021 after it raised P463.3 billion from three-year retail debt in February. — Jenina P. Ibañez

Airlines say return to full capacity depends on demand

PHILSTAR

By Arjay L. Balinbin, Senior Reporter

LOCAL airlines said they are still assessing demand before returning to full passenger capacity after the government lowered the lockdown in the capital region and 38 other areas to Alert Level 1.

“During this pandemic, we would operate at full capacity if flight booking is 100%,” Philippine Airlines (PAL) Spokesperson Cielo C. Villaluna told BusinessWorld in a phone message on Monday.

“Passenger capacity per flight is dependent on demand,” she added.

For its part, budget carrier Cebu Pacific said the situation “remains fluid.”

“We cannot say for sure yet, but we will continue to monitor as we do all possible to prepare for the expected increase in demand for air travel,” the airline said in a statement to BusinessWorld.

Meanwhile, Philippines AirAsia said the airline follows the rule of the airport of destination.

“This is the case with destinations like Bacolod and Iloilo. However, if our destination LGU (local government unit) falls under Alert Level 1, we will implement 100% full capacity,” it said in a statement.

Under the guidelines released by an interagency task force, public transportation in areas under Alert Level 1 will be at full seating capacity.

Public travels between an area with a higher alert level classification and an area under Alert Level 1 will be limited to the capacity of the area at higher risk.

Air, sea and rail public transport in and out of areas under the first alert level will operate at full capacity.

Flag carrier PAL said its safety protocols remain the same.

“The highest standards of safety continue to be observed on each and every flight. Our cabin crew frontliners continue to wear full PPE (personal protective equipment) throughout the journey,” it said in a statement on Tuesday.

“The requirement for passengers to wear face masks and face shields in-flight (except during meals) remains in place. Our HEPA (high-efficiency particulate absorbing) filters cleanse cabin air of bacteria and viruses while disinfection of aircraft surfaces is carried out after every flight. Our flight and cabin crew teams are fully-vaccinated,” it added.

Meanwhile, low-cost carrier Philippines AirAsia said it is gearing up for a “stronger travel demand” this summer.

The shift to Alert Level 1 is expected to “entice more people to travel, especially that all AirAsia destinations are now accepting vaccination cards for fully inoculated travelers,” the airline said in a statement on Tuesday.

“Partially vaccinated guests will also be accepted but subject to LGU travel requirements such as antigen tests,” it noted.

At the same time, Cebu Pacific announced on Tuesday that fully vaccinated travelers from the Philippines may now travel to Singapore for leisure starting March 3 and that they no longer need to quarantine upon arrival, following the extension of the vaccinated travel lane to the country by the Civil Aviation Authority of Singapore.

PAL negotiating $100-M loan

An airplane is seen on the runway at the Ninoy Aquino International Airport (NAIA) in Manila, March 14, 2016. — REUTERS/ROMEO RANOCO/FILE PHOTO

PHILIPPINE Airlines’ (PAL) listed operator PAL Holdings, Inc. said on Tuesday that the airline is “in the process of negotiating an additional $100-million, three-year term loan from international lenders.”

“As at the date of emergence from Chapter 11, PAL had a cash balance of $391 million,” it noted.

The listed company’s shareholders had approved last year the increase in capital from P13.5 billion to P30 billion.

PAL Holdings said it is preparing for the stock swap to be offered to the new shareholders of the airline.

The airline will file an application for equity restructuring with the Securities and Exchange Commission, specifically to partially wipe out its deficit as of Dec. 31 “using the reduction surplus generated upon its decrease of capital in December 2021,” the listed company noted.

“Ownership in [the airline] is expected to increase to 100% upon approval of [PAL Holdings’] application for increase in capital to P30 billion where creditors holding 20% of the capital stock of [the airline] shall have exchanged their shares for [PAL Holdings’] shares.”

Before the Chapter 11 filing, the flag carrier had around 91 operating aircraft. It had approximately $6.07 billion in long term liabilities.

“As of 1 Jan. 2022, [the airline] emerged from Chapter 11 having reduced its fleet by 20 aircraft and its financial liabilities by$2.1 billion,” PAL Holdings noted.

“The returned aircraft represent approximately 30% of [the airline’s] passenger capacity which not only coincides with the reduced passenger demand, but also contributed to reduced fleet cost,” it added.

At the same time, PAL Holdings noted that the combination of reduction in aircraft capacity, indebtedness, staffing levels and other cost-cutting initiatives has reduced the airline’s monthly fixed costs by around $36 million, compared to 2019 fixed cost levels. — Arjay L. Balinbin

Ayala Land records P3.6-B fourth-quarter net income

AYALA Land, Inc. (ALI) recorded a 54% increase in net income to P3.6 billion net income in the fourth quarter after revenues inched up 2% to P33.5 billion quarter on quarter.

“Our focus in 2021 was to ensure we provided the right environment in our communities for our residents, businesses, and institutional locators to adapt and function better while executing our business recovery plans,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a disclosure to the exchange on Tuesday.

The company said its operations remained resilient despite the pandemic. Property development revenues went up 40% quarter on quarter to P24.4 billion.

Meanwhile, commercial leasing revenues climbed 35% to P6.4 billion. The growth was driven by improved shopping center revenues at P3 billion, 101% better than the previous quarter and a 106% growth from the same period in 2020.

Hotels and resorts revenues also climbed to P981 million, a 55% growth from third-quarter results and 62% year on year.

For 2021, ALI scored a 40% net income after taxes attributable to equity holders, generating P12.23 billion from P8.73 billion in 2020. Its total revenues also grew 10% to P106.14 billion from P96.27 billion a year ago.

The company’s property development revenues for the year were propelled by its fourth-quarter performance, going up 14% to P75.94 billion in 2021 from P66.64 billion in 2020.

Sales reservations for the year rose 13% to P92.2 billion due to the “solid demand” seen in Ayala Land Premier and Alveo lots in Southern Luzon, with fourth-quarter sales growing 5% year on year to P22.1 billion.

The company reported its lot sales reservations surged 36% to P41.5 billion in 2021.

ALI launched 22 residential projects collectively worth P75.3 billion last year, seven times more than the projects launched in 2020.

Meanwhile, commercial leasing revenues inched down 5% year on year to P20.6 billion. Malls, hotels, and resort operations were limited as the country continued to impose pandemic restrictions.

Revenues from shopping centers went down 13% to P7.92 billion from P9.06 billion in 2020, while earnings from hotel and resorts operations declined 12% to P2.83 billion from P3.21 billion.

However, the company saw a 5% growth in office leasing revenues to P9.88 billion from P9.41 billion, owing to the operations of business process outsourcing (BPO) and corporate companies.

ALI’s capital expenditure (capex) amounted to P64 billion in 2021, the majority or 52% of which was spent on residential projects, 17% on land acquisition, 15% on commercial projects, and 14% on estate development.

“As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our land bank, diversified portfolio, and market-leading estate developments,” Mr. Dy said.

ALI remains “very positive” in its outlook this year for all its business segments, it announced in an analysts’ briefing on Tuesday.

The company is planning to launch projects worth P100 billion this year. It is also looking at more estate developments after the pandemic “highlighted” the benefits of “estate living.”

For 2022, the company has earmarked P90 billion for its capex. Of the budget, 49% will be allocated for residential developments, 19% for land acquisitions, 18% for estate developments, 5% for malls, 2% for offices, 2% for hotels and resorts, and a remaining 5% for other plans.

ALI shares at the stock market closed unchanged at P39 per share on Tuesday. — Keren Concepcion G. Valmonte

Steer clear of toxic positivity in online consultations

PIXABAY

WHEN consulting online, patients and doctors alike should beware of behavioral red flags such as virtue signaling (the conspicuous communication of moral values to garner praise for one’s righteousness); social vigilantism (the tendency to propagate one’s “superior” belief to correct others’ ignorance); and toxic positivity (the belief that people should maintain a positive mindset no matter how dire a situation is).

“[Because] the Internet is an extension of society, we should apply the same standards online as we do in public,” said Dr. Patrick Gerard L. Moral, a physician and associate professor of medical ethics at the University of Santo Tomas.

Toxic positivity, added Dr. Moral, silences emotions, deters individuals from seeking support, and pressures them to pretend to be happy. An example of toxic positivity is telling someone who can’t support his family that he is at least alive.

“That’s why I share that I’m clinically depressed,” he said at a Feb. 24 webinar organized by the Philippine College of Physicians (PCP). “I want people to know my life isn’t perfect.”

Physicians have been using online platforms for their healthcare advocacy since the pandemic. Social media, as pointed out during the webinar, provides a vehicle to receive real-time information, stamp out health misperceptions, and learn from patients and caregivers.

Healthcare providers can practice digital responsibility by being deliberate about what they post and understanding that sensibilities — such as political views and sense of humor — aren’t universal. They also need to declare any conflict of interest and shun harassment.

GREAT EQUALIZER
In the Philippines, the most popular physicians in cyberspace include the cardiologist Dr. William T. Ong, who has a 7 million-strong following on YouTube and is now running for vice-president, as well as Dr. Carlo Nemesio B. Trinidad, a nephrologist from Dagupan Doctors Villaflor Memorial Hospital and creator of the Hello Kidney Facebook page, which has close to 100,000 followers.

“Social media is the great equalizer. It breaks down hierarchies and enables connections,” Dr. Trinidad said. “There is the potential to reach millions with a single post or tweet.” He added that platforms like Twitter have enabled him to connect with “gods of [the medical] fields” and meet trialists he would otherwise have just read about in books.

Dr. Trinidad cautioned, however, that posting publicly is not for the faint of heart. He narrated how he was trolled when he said tuob (or steam inhalation therapy) is not effective against coronavirus.

“People said I was for Big Pharma, that I didn’t respect elders,” he said at the PCP webinar, adding that he approaches naysayers with diplomacy. “If you mention facts, you may not convince the person you’re talking to, but you may convince the lurkers.” 

The goal for physicians is to be positive influencers, according to Dr. Moral — individuals who are relatable, add context to sensational headlines, and stay informed on current questions.

“At its heart, digital media is about people, relationships, and communication. We have to translate our communication skills into the digital setting,” he said. — Patricia B. Mirasol

 


How to consult online

Dr. Patrick Gerard L. Moral, a physician and associate professor of medical ethics at the University of Santo Tomas, shared this guide on the art of digital messaging by Facebook Messenger in partnership with Debrett’s London, a professional coaching company.

Knowing how to communicate online will help ease the teleconsultation process.

• Hone your tone — avoid irony unless you are sure the other person will get the joke.

• Keep it concise — stick to a few sentences, especially for someone you don’t know well.

• Don’t multi-message — don’t send five messages if one suffices.

• Share with care — don’t forward a message unless the original sender has given permission.

• Know your audience — keep the conversation relevant to the majority.

• Don’t leave them hanging — respond, even if only to say you don’t know the answer.

• Abide by the quick reply — leave a message unread until you have time to respond.

• Give up the ghosting — end an interaction with a polite explanation.

• Practice good exit-quette — either mute a conversation or offer a brief reason for leaving it.

• Sign off in style — sign off every messaging conversation.

SEC eyes monitoring unit to guard LGUs from scams

By Keren Concepcion G. Valmonte, Reporter

THE Securities and Exchange Commission (SEC) is looking to launch a monitoring group to prevent scamming activities at the local government unit (LGU) level.

In an e-mailed response to questions, the SEC said it is planning to put up an Anti-Scam Task iGroup or the so-called “ASTiG” Network.

“This will help the SEC stop unauthorized investment-taking activities and fraudulent schemes at the community level,” the SEC Office of the Commission Secretary said on Monday.

BusinessWorld reached out to the regulator after Masahiko Ferrer Tanaka brushed off the SEC’s advisory to warn the public against investing in Mr. Tanaka’s Global Booking Hub/GBH/Easy Money Vlogs.

In its Feb. 8 advisory, the SEC said Global Booking Hub is involved in delivery services and foreign exchange. The commission warned the public against investing in its Tora (TRA) token and its “Booking Loads” Plan, among its other investment programs.

Mr. Tanaka, in a Facebook Messenger chat, said that the advisory was true but claimed that the commission does not have complaints because the warning was merely a pakulo or a gimmick.

However, the SEC maintained that Global Booking Hub is not licensed to solicit investments. The SEC said it is not registered “and therefore cannot secure the necessary license to offer/sell securities to the public, in accordance with Republic Act No. 8799, or the Securities Regulation Code.”

“The advisory was issued to prevent further harm to the public, by serving as a warning against dealing with/investing in the said entities,” the SEC Office of the Commission Secretary said.

As of end-February, the commission has issued 34 advisories against entities offering unlicensed investment programs to the public, some of which have been identified by the regulator to be similar to pyramiding schemes and Ponzi schemes.

“The SEC continues to strengthen its investor protection programs through the conduct of webinars and information campaigns that seek to improve the public’s financial literacy and ability to spot investment scams,” the SEC Office of the Commission Secretary said.

Pfizer/BioNTech COVID vaccine less effective in ages 5 to 11 — NY study

PIXABAY

TWO DOSES of the Pfizer, Inc. and BioNTech SE coronavirus disease 2019 (COVID-19) vaccine was protective against severe disease in children aged 5 to 11 during the recent Omicron variant surge, but quickly lost most of its ability to prevent infection in the age group, according to a study by New York State researchers.

The vaccine’s efficacy against infection among those children declined to 12% at the end of January from 68% in mid-December compared to kids who did not get vaccinated, according to the study, which has not yet been peer reviewed.

For those aged 12 to 17, the vaccine’s protection against infection fell to 51% in late January from 66% in mid-December.

“These results highlight the potential need to study alternative vaccine dosing for children and the continued importance of layered protections, including mask wearing, to prevent infection and transmission,” the researchers said.

The vaccine was around 48% effective in keeping the younger age group out of the hospital, with 73% efficacy against hospitalization among adolescents last month, the data showed. That was down from effectiveness of 100% and 85% against hospitalization for the two age groups as of mid-December.

Dr. Paul Offit, a pediatric infectious disease expert at Children’s Hospital of Philadelphia, questioned whether the data were robust enough to say that the vaccine’s efficacy had significantly declined, particularly against severe disease.

“It’s not surprising that protection against mild illness would wane,” Dr. Offit said. “We know that Omicron is somewhat immune evasive for protection against mild illness. The goal of the vaccine is to protect against severe illness — to keep children out of the hospital.”

Dr. Offit said the number of hospitalizations were too few to draw any real conclusions, and that there was little information on why the children were hospitalized. He noted that protection from previous infection among the unvaccinated might also skew the numbers.

“Natural infection can protect against serious illness,” he said.

Younger children receive a lower 10-microgram dose of the vaccine than 12- to 17-year-olds, who receive the same 30-microgram dose as adults and are eligible for a third booster shot.

Pfizer said it is studying a three-dose schedule of the vaccine in the pediatric population, noting that studies in adults suggest that “people vaccinated with three doses of a COVID-19 vaccine may have a higher degree of protection.” — Reuters