THE UNEMPLOYMENT RATE rose to 8.9% in September, as bad weather left nearly 900,000 without work in the farm sector and strict lockdowns claimed over 340,000 factory jobs, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.
PHILIPPINES AIRASIA, Inc. said Thursday that the return of more destinations to its network has been driven by their opening for leisure travel, signaling the beginnings of a “recovery” for the tourism industry.
“Aside from Caticlan (Boracay), Bohol and Cebu, leisure travelers may now also fly to Puerto Princesa, Iloilo Province, Bacolod, Davao and Tacloban to enjoy their much missed getaways,” Philippines AirAsia said in a statement.
Such destinations now only require vaccination cards in lieu of a coronavirus test or a medical certificate.
“Reopening of leisure travel for most parts of the country signals recovery for the tourism industry,” the low-cost airline said.
It also said that the easing of restrictions provides a “welcome boost to end the year on an encouraging note.”
In its analysis published on Oct. 19, the Center for Asia Pacific Aviation said, citing International Air Transport Association projections for next year, that “‘Within-Asia’ traffic… is forecast to be still nearly 90% below 2019 levels for the full year 2022.”
“Before the coronavirus pandemic, the Asia Pacific region accounted for about a third of global RPKs (revenue passenger kilometers). But in 2022, the region will now remain approximately three-quarters below Europe and North America,” it added.
AirAsia said it logged a 50% increase in seats sold in October.
Load factor for the same month also grew 76%, with Boracay, Cebu, Tacloban, Bohol and Iloilo as the leading destinations.
“The spike in forward bookings is also seen to increase further with the recent decision of the Department of Tourism’s to fully subsidize the RT-PCR (reverse transcription-polymerase chain reaction) test for qualified local tourists,” the airline said.
The airline said last month that it was hoping to rehire laid-off workers in the Philippines by the second quarter of 2022.
The airline also plans to reopen some of its regional routes, including Hong Kong, Singapore, Taiwan, Thailand, and Malaysia. — Arjay L. Balinbin
THE PRICE of some foods typically consumed on Christmas Eve may rise between 4% and 8%, according to the Philippine Amalgamated Supermarkets Association (Pagasa).
Pagasa President Steven T. Cua said in a television interview Thursday that selected foods for Christmas Eve dinner, known as “Noche Buena” could see price increases of up to P2 depending on the size of the product.
“We have to plan what we need to buy so that we can meet our budget. Always have a list of things to buy. Consumers can stick to a budget,” Mr. Cua said.
According to Mr. Cua, price increases for such foods will need to be carefully managed because they will affect the entire supply chain. In terms of volume, however, he expects supply to be sufficient because of weak demand.
“As long as people have money, either from ayuda (cash aid), remittances, or 13th month pay, they will buy groceries and Noche Buena items,” Mr. Cua said.
The Department of Trade and Industry (DTI) has said that only four of 11 Noche Buena product categories that it tracks are covered by active price hike petitions, including ham, tomato sauce, pasta, and cream.
The DTI said no such applications were submitted for fruit cocktail, cheese, sandwich spread, mayonnaise, the variety of Edam cheese known as keso de bola, spaghetti, and macaroni. — Revin Mikhael D. Ochave
FINANCE Secretary Carlos G. Dominguez III said climate financing should be done through grants, investment, and subsidies to improve vulnerable communities’ ability to adapt to climate risks.
Mr. Dominguez, who represented the Philippines at the 26th United Nations Climate Change Conference (COP26) in Glasgow, said that climate financing should be done through this three-point “blended approach.”
He had been pushing for more climate financing from wealthy economies that have not offered enough to help developing nations reduce their carbon footprints as they transition to clean energy.
Such countries bear the most responsibility for their historic emissions, he said in the lead up to the conference.
In a statement issued by the Department of Finance (DoF) Thursday, Mr. Dominguez said: “Grants should come in the form of educational or technical assistance programs to help people conceive and execute localized projects on the ground.”
Investment should focus on projects that create business opportunities and jobs that lead to energy self-reliance, he added.
Subsidies must address the financial costs communities take on to transition to climate-resilient economies as they start moving away from power plants that use fossil fuel.
“This blended approach should be at the heart of climate finance. Given that such funds come from investors and taxpayers, accountability and transparency must be ensured,” Mr. Dominguez said at the 4th High-Level Ministerial Dialogue on Long-Term Finance.
“Beneficiary countries need to constantly assure their donors and taxpayers and investors that their money is being used prudently.”
The dialogue tackled the progress made by countries to come up with a financial system to support climate resilience. Representatives from the UK, Uruguay, the NatWest group, and the Organisation for Economic Cooperation and Development also joined the meeting.
The Philippines has committed to reduce greenhouse gas emissions by 75% from 2020 to 2030. Of the 75% target, just 2.71% can be achieved with internal resources, while the remaining 72.29% is conditional on international assistance. — Jenina P. Ibañez
CANADIAN-AUSTRALIAN mining firm OceanaGold Corp. said it started mineral processing at its Didipio gold and copper mine project in Nueva Vizcaya and Quirino provinces, a few months after securing a contract renewal from the government.
Scott Sullivan, OceanaGold chief operating officer, said the start of milling is two weeks ahead of schedule, following the completion of plant upgrades and maintenance activities, while the start of mining activity was one month earlier than planned.
“Following the confirmation of the Didipio Mine Financial or Technical Assistance Agreement (FTAA) renewal, Didipio is producing gold and copper again, which will be an important source of free cash flow generation for the company and a significant contributor of socio-economic benefits for the region and country,” Mr. Sullivan said in a statement Thursday.
“As the underground mining operations continue to ramp up over the course of the next eight to nine months, the primary ore feed will be sourced from low-grade stockpiles, of which the company has approximately 23 million tons of ore on surface,” he added.
According to OceanaGold, the Didipio process plant is estimated to hit throughput at a pace of 3.5 million tons per annum over the next few weeks.
It added that for the rest of 2021, the company expects to produce between 7,000 and 12,000 ounces of gold and 1,000 tons of copper with estimated all-in costs of between $100 and $150 per ounce on a by-product basis.
OceanaGold said it continues to ramp up operations to full production to rates of 10,000 ounces of gold and 1,000 tons of copper a month, while it managing risks from the coronavirus disease 2019 (COVID-19) pandemic.
In July, OceanaGold said it obtained a renewal of its FTAA for another 25 years, applied retroactively from June 19, 2019.
Modifications to the FTAA include a listing requirement of at least 10% of OceanaGold Philippines, Inc. shares on the Philippine Stock Exchange within the next three years, augmenting the percentage of gross revenue allotted for community development, and the transfer of its main office to a host province within the next two years.
The Mines and Geosciences Bureau has called the reopening of the Didipio mine an important boost to the national economy, along with the issuance of Executive Order No. 130, which lifted the ban on new mineral agreements. — Revin Mikhael D. Ochave
AN INDUSTRY association backing education reform said Congress and Malacañang must prioritize a bill that proposes to grant legislators oversight over education, which was among the sectors hardest hit by the COVID-19 (coronavirus disease 2019) pandemic.
The Philippine Business for Education (PBEd) urged President Rodrigo R. Duterte Thursday to certify as urgent House Bill 10308 or the proposed Congressional Oversight Committee on Education Act, which is awaiting second reading.
PBEd Chairman Ramon R. del Rosario, Jr. said that while there are positive developments in the industry such as the pilot reopening of schools on Nov. 15, the committee is needed to drive quality reforms in education.
“Let us call for an independent assessment (mechanism) for learning so that we can better diagnose our weaknesses and come up with targeted solutions,” he said in a news conference.
PBEd warned earlier this year that the education sector is “in a serious crisis” featuring declining access and quality, citing the findings of the Programme for International Student Assessment in 2018, which concluded that 72% of 15-year-olds in the Philippines are low achievers in Reading, Math, and Science.
The measure, if signed, would lead to the formation of a Congressional oversight committee tasked with reviewing, assessing, and recommending courses of action to education agencies such as the Department of Education and the Commission on Higher Education for three years.
The Senate also has a counterpart bill pending at the committee level.
A similar group was formed in 1990 known as the Congressional Commission on Education, which recommended alternative learning modes, promotion of Filipino as a mode of instruction, and additional funding for basic education programs, among others.
PBEd also called for amendments to the measure to include education stakeholders along with the private sector in the composition of the proposed committee.
“Proper representation… ensures that practical and theoretical expertise from the ground is heard. It also facilitates the implementation of reforms because the recipients are involved not just in the discussions, but in the outcomes,” Mr. Del Rosario said.
Pasig City Rep. Roman T. Romulo, chairman of the House Committee on Basic Education and Culture, said that he was open to the suggestion as it would further discussions on the education sector despite the upcoming elections.
“While politicians are busy with elections, maybe our private partners will be able to proceed with this bill so that the next administration has something to consider because there must be many things that are reviewed to see how it is working,” he said.
However, he said that there should be a mechanism for determining which representatives from the private sector are selected for the committee. He expressed confidence that the bill will be passed by the House before the year ends. — Russell Louis C. Ku
THE DEPARTMENT of Energy (DoE) said Thursday that it considers coal and petroleum resources to be key to meeting the country’s power needs.
“While we issued a moratorium on coal projects, we still consider coal and oil energy resources vital to the country’s quest for power,” Energy Secretary Alfonso G. Cusi said at a virtual briefing Thursday.
He described Philippines as an “energy-hungry nation” which has yet to attain energy security.
“We do, however, take into consideration the environmental issues surrounding these (coal and petroleum) projects and we are encouraging hybridization of conventional energy plants to balance their effect on the environment,” Mr. Cusi said.
He added that the country is keen on ramp up production of petroleum products and coal.
Last year, power plants running on fossil fuels accounted for 78.8% of aggregate electricity output, according to the Philippine Energy Plan. Coal facilities and oil-based power plants produced 58.2 terawatt-hours (TWh) and 2.5 TWh, respectively.
During the briefing, Mr. Cusi also reiterated the department’s plans to establish the Philippines as a destination for investment in natural gas.
“We see natural gas as the fuel of the future. We hope that the facilities being put up in the country right now will help us attain energy security and that we can still make the Philippines the next LNG (liquified natural gas) hub of our region, given our strategic location,” he said.
At present, the country only has one indigenous gas field — the Malampaya project — which is set to be commercially depleted by 2027.
The offshore field produces power for five gas-fed plants on Luzon, which service 20% of national demand. — Angelica Y. Yang
MANUFACTURER First Philec, Inc. said the launch of its so-called green transformer is on track for a fourth-quarter release, with plans for it to be sold in overseas markets.
“Definitely, we are ready to launch it by fourth quarter,” First Philec President Ariel C. Ong said at a virtual briefing Thursday.
“We are actually in the final stages of our plans to enter an international market,” Mr. Ong said.
First Philec is a unit of First Philippine Holdings Corp.
Distribution utility Manila Electric Co. (Meralco) will be the first recipient of the transformers.
“They’re very open to sustainability solutions so we’re going to give them a few samples to evaluate,” Mr. Ong said of Meralco.
The company has said that its new transformer is made of 100% recyclable and biodegradable materials. The transformer features insulating coolant made from natural ester, a vegetable-based and non-polluting oil product sourced from sustainably-grown crops.
First Philec said its new product aims to reduce system losses and improve distribution efficiency, benefitting power providers and their customers.
The company gave no details on product pricing.
First Philec has installed over 250,000 transformers in the Philippines. It claims to be the largest manufacturer of amorphous or energy-efficient transformers in Southeast Asia. — Angelica Y. Yang
EAST ZONE water concessionaire Manila Water Co., Inc. announced a prequalification process for contractors seeking to participate in the design and construction of a water treatment plant in Antipolo City.
The company said Thursday that potential bidders to send a letter of intent on or before Nov. 26 for the Wawa Water Treatment Plant contract, which will supply an additional 438 million liters per day (MLD) of water to its customers.
Manila Water expects to issue invitations to bid by the first quarter of 2022.
“The project, when completed, shall be capable of treating raw water with a product water quality that is in full compliance with the Philippines National Standards for Drinking Water of 2017 and the employer treated water quality output requirements, and serve the client network for Antipolo and neighboring municipalities,” Manila Water said.
Manila Water has an offtake agreement with the Metropolitan Waterworks and Sewerage System (MWSS) and WawaJVCo, Inc. to supply raw water from the Wawa and Tayabasan rivers.
The first phase involves the supply of 80 MLD of raw water by Dec. 31, 2021 while the second phase involves the 438 MLD raw water deal, which kicks in on Dec. 31, 2025.
Separately, the MWSS Regulatory Office said Thursday that its board of trustees approved the removal of the foreign currency differential adjustment (FCDA) from customer water bills issued by Manila Water and Maynilad Water Services, Inc. starting Nov. 18.
Nov. 18 is the date the revised water concession agreements come into force. The deals called for of a tariff freeze until Dec. 31, 2022 and the removal of the FCDA.
The FCDA for Manila Water customers was 0.84% of the 2021 average basic charge of P28.52 per cubic meter (cu.m.) or 24 centavos.
Households consuming 10 cu.m. or less will experience a reduction of P1.26, while those consuming 20 cu.m. and 30 cu.m. will see a decrease of P2.79 and P5.69, respectively.
The impact on Maynilad customers, whose FCDA was equivalent to minus 0.55% of the 2021 average basic charge of P36.24 per cu.m. or minus P0.20 per cu.m., will increase standard rates for water and sewerage services.
The MWSS said Maynilad’s FCDA will instead be converted into a transitory adjustment in water bills between Nov. 18, 2021 to Dec. 31, 2022 as a consumer protection measure.
“The cash flow effect of the FCDA removal will be considered in the calculation of the opening cash position of the concessionaire in the 5th Rate Rebasing Exercise,” MWSS said.
Asked to comment, MWSS Chief Regulator Patrick Lester N. Ty said by mobile phone that the water bills of Maynilad customers will not increase.
“In order to protect the interest of the public, we converted it to a transitory adjustment so their monthly water bill will not increase and remain the same. Maynilad can just include this in the next rate rebasing,” Mr. Ty said.
The FCDA is a tariff mechanism, reviewed quarterly, which allows concessionaires to regain losses or return gains as a result of foreign exchange rate movements. The water providers pay concession fees in foreign currency to the MWSS, and also make non-peso payments on their loans.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave
PHILIPPINE SHARES extended their climb on Thursday after the removal of curfew hours in Metro Manila, which were implemented for over a year and a half due to the coronavirus pandemic.
The 30-member Philippine Stock Exchange index (PSEi) improved by 19 points or 0.26% to close at 7,203.72 on Thursday, while the all shares index inched up by 4.08 points or 0.09% to 4,437.17.
“The continuous decline in our COVID-19 (coronavirus disease 2019) cases, and the lifting of curfew in the National Capital Region which is expected to augment economic activities lifted sentiment. Wall Street’s continuous rally towards record highs also helped in Thursday’s session,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a Viber message.
Metro Manila had implemented curfew hours for over a year and a half to limit mobility in an attempt to curb the spread of COVID-19. These were lifted beginning on Thursday, Nov. 4.
The Health department reported 1,591 new COVID-19 infections on Wednesday, bringing the total active cases to 38,014. The Philippines has reported over 2.79 million COVID-19 cases since the pandemic began.
“The index sustained solid gains with more index heavyweights reporting earnings,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message, adding that the US Federal Reserve’s announcement on the reduction of its monthly bond purchases also contributed to market sentiment.
The Fed, as widely expected, announced on Wednesday that it would begin reducing its $120 billion in monthly purchases of Treasuries and mortgage-backed securities at a pace of $15 billion per month, with a plan to end the purchases altogether in mid-2022, Reuters reported.
“Selling pressures were noticed however with the market dropping to an intraday low of 7,176.64, down by 0.11% from the preceding day. Trading was quite active,” Philstocks Financial’s Mr. Tantiangco added.
Value turnover went up to P7.68 billion with 4.69 billion shares switching hands on Thursday, inching higher from the P7.52 billion with 2.33 billion issues traded the previous day.
All sectoral indices closed in the green on Thursday led by mining and oil, which went up by 83.02 points or 0.84% to finish at 9,916.99. Industrials gained 61.59 points or 0.57% to 10,779.16; services picked up 5.43 points or 0.28% to 1,903.75; financials increased by 1.94 points or 0.12% to 1,579.61; property climbed 3.80 points or 0.11% to finish at 3,242.24; and holding firms inched up by 0.75 point or 0.01% to 7,058.58.
Decliners outperformed advancers, 123 against 80, while 42 names closed unchanged.
Foreigners turned buyers on Thursday, logging P371.99 million in net purchases versus the P23.75 million in net outflows recorded on Wednesday. — Keren Concepcion G. Valmonte with Reuters
THE PESO slipped versus the greenback on Thursday following weaker labor data and ahead of the release of the October inflation report.
The local unit closed at 50.595 per dollar on Thursday, shedding by 2.5 centavos from its P50.57 finish on Wednesday, based on data from the Bankers Association of the Philippines.
The peso opened Thursday’s session at P50.55 per dollar. Its weakest showing was at P50.62, while its intraday best was at P50.53 versus the greenback.
Dollars exchanged dropped to $782.25 million on Thursday from $941.7 million on Wednesday.
The peso was slightly weaker due to cautious sentiment after the release of data showing a weaker employment market in September, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The September Labor Force Survey showed the unemployment rate worsened to 8.9% that month from 8.1% in August, the Philippine Statistics Authority (PSA) said on Thursday. This is the highest rate so far in 2021 or since the 8.8% seen in January.
This means 4.25 million Filipinos were jobless in September from the 3.88 million unemployed in the prior month.
National Statistician Dennis Clare S. Mapa said the higher unemployment rate was likely due to the decline in agriculture jobs following recent typhoons as well as the harvest season.
Meanwhile, a trader said the peso inched down versus the dollar ahead of the release of October inflation data on Friday.
A BusinessWorld poll of 21 economists held last week yielded a median estimate of 4.9% for October headline inflation. If realized, this would be faster than the 4.8% in September.
Analysts said weather disturbances and continued oil price hikes likely caused faster price increases in October.
For Friday, Mr. Ricafort expects the local unit to move within P50.47 to P50.67 per dollar, while the trader gave a forecast range of P50.50 to P50.75. — L.W.T. Noble
A CORONAVIRUS surge fueled by the Delta variant in the Philippine capital region and nearby cities has already been reversed, a group of public health researchers said on Thursday.
“We have reversed the Delta surge already in the NCR (National Capital Region),” OCTA Research fellow Fredegusto P. David told a virtual forum Thursday streamed on Facebook.
Metro Manila is now back to where it was before it struggled to contain a spike in infections spurred by the highly contagious Delta variant, which has been closely watched by health experts worldwide, Mr. David added.
He said the decline in infections in the capital region was first observed in mid-September.
Metro Manila’s number of cases remains on a downward trend as its seven-day average dropped to 630 cases daily, the OCTA fellow said.
The region’s virus reproduction rate was at 0.43, lower than the critical cut-off of 1.4, while its average daily attack rate remains moderate at 4.45 per 100,000 people, he said.
The positivity rate in Metro Manila decreased to 4%, which meets the World Health Organization’s standards.
CASE COUNT
Philippine health authorities reported 1,766 coronavirus disease 2019 (COVID-19) cases on Thursday, bringing the total to nearly 2.8 million.
The death toll rose to 43,825 after 239 more patients died, while recoveries increased by 2,591 to 2.7 million, it said.
The Department of Health (DoH) said there were 37,159 active cases, 68.9% of which were mild, 5.3% were asymptomatic, 8.2% were severe, 14.11% were moderate and 3.5% were critical.
It said 22 duplicates were removed from the tally, 17 of which were recoveries, while 214 recoveries were reclassified as deaths. Two laboratories failed to submit data on Nov. 2.
The DoH said the intensive care unit occupancy rate in the Philippines and Metro Manila was at 43% and 37%, respectively.
Mr. David said several urban areas outside the metropolis — such as Davao City, Bulacan, Batangas, Cavite, Laguna, Pampanga, and Rizal — are now also classified as low risk from the coronavirus.
Cebu City in central Philippines is now considered as “very low risk,” he said.
“There are some areas in the country which still have a significant number of cases but most of them are already on a downward trend,” Mr. David said.
“I could count maybe five municipalities with significant risk,” he added. “It’s like we reversed back to March of this year.”
COVOVAX
Meanwhile, the local distributor of CovovaxTM developed by US biotechnology firm Novavax is optimistic of getting emergency use approval in the Philippines soon after the COVID-19 vaccine recently received authorization in Indonesia.
“We welcome this development and look forward to the start of the global rollout of CovovaxTM,” Vinay Panemanglor, founding member and chairman of the board of directors of distributor Faberco Life Sciences, Inc. (Faberco), said in a statement on Thursday
“CovovaxTM has high efficacy and safety levels, and we are anticipating approval of our EUA (emergency use authorization) from the Philippine Food and Drugs Administration shortly following the Indonesian EUA. We have completed all submissions and are ready to start shipment as soon as we get the approval,” he said.
Novavax, Inc. announced on Oct. 31 that it has also filed applications for use in other countries and for listing with the World Health Organization.— Kyle Aristophere T. Atienza
