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Modi fails to appease angry India farmers now marching to Delhi

REUTERS

INDIAN Prime Minister Narendra Modi’s surprise decision to scrap three contentious farm laws may not be enough to stem a yearlong protest movement by farmers, with the two sides yet to close the gap on another crucial issue — guaranteed prices for crops.

The protesters postponed their planned march to the capital New Delhi on Monday, after the government assured the laws will be repealed next week when parliament reconvenes for its winter session. Still, the farmers want to push ahead with their demands that include setting up of a mechanism to ensure farmers get minimum support rates for all harvests.

India currently fixes the rates for two dozen farm commodities, including some grains and pulses, and procures limited volumes for its welfare programs at those levels. Private players buy agricultural goods at market-determined prices.

The government has said it will form a group to find ways to make the system “more effective,” but that’s not enough for the protesters. They demand a new law to make it illegal to buy crops below the state-set prices.

“We are not fond of sitting on the streets,” Samyukt Kisan Morcha, an umbrella group of farmers’ associations, said in a letter to Modi dated Nov. 21. “We too desire that after resolving these other issues as soon as possible, we return to our homes, families and farming. If you want the same, then the government should immediately resume talks.”

POLITICAL PRICE
The farmers’ continued anger could carry a political cost for Modi, who announced his biggest policy reversal since assuming power in 2014 by scrapping the farm laws earlier this month ahead of some state elections. It could dent Modi’s image as a strong and decisive leader. 

Analysts say that establishing a price guarantee system for agricultural goods would be impossible, both logistically and fiscally, given India’s annual output of food grains alone of about 300 million tons, the risk of inflation and the government’s stretched budget due to the pandemic.

“The real reason behind the farmers’ demand is their desire for some stability and certainty in their incomes,” said Shoumitro Chatterjee, assistant professor of economics at Pennsylvania State University. But given India’s budget situation, providing such income certainty via a guaranteed price at the national level may be infeasible, he said. 

Modi’s retreat on farm laws has already cast a shadow on the pace of reforms that his administration had promised. Farmers form a powerful voting bloc in the country, where agriculture supports about 60% of its 1.4 billion people.

“Our agriculture sector is crying for massive reforms,” said Atul Chaturvedi, president of the Solvent Extractors’ Association of India. “Current high MSP (minimum support price) can never be sustainable as it would hurt consumers big time.”

The government buys mainly rice and wheat for its welfare programs, mostly from states such as Punjab, Haryana and Madhya Pradesh. Any rise in government purchases would worsen an already wide fiscal deficit, seen at 6.8% of India’s GDP in 2021-22.

BALLOONING SUBSIDY
Buying more at government-set prices could cause the food subsidy bill, which may exceed $33 billion in 2021-22, to balloon further. It could also lead to over-production of crops in India, the world’s biggest grower of cotton and the second-largest producer of wheat, rice and sugar.

“Now we are in a phase where our problem with food is efficient management of surplus,” said Suyash Rai, deputy director and fellow at Carnegie India. If more and more is bought through the public-procurement system, “how will we handle that?”

But farmers say the government only buys from a few states that have good transport network. Price instability is the biggest concern in India, where 86% of farmers cultivate plots of about 2 hectares (5 acres) or less.

“The government procures only in Punjab, Haryana and Western Uttar Pradesh. That too only rice and wheat. So farmers everywhere sell to traders at a lower price,” said Ashok Dhawale, president of the All India Kisan Sabha, a group representing farmers. “The MSP has meaning only when there is a government procurement machinery,” he said. — Bloomberg

GM Barbosa powers San Juan to third PCAP title

GRANDMASTER (GM) Oliver Barbosa swept all his four games to power San Juan to a 19-2, 11.5-9.5 win over last year’s winner Iloilo and claim the 3rd Professional Chess Association of the Philippines (PCAP) title on Saturday night.

The United States-based Mr. Barbosa overpowered Karl Viktor Ochoa in their two rapid and two blitz games to help propel the Predators to their first crown in this three-year-old pro league.

The triumph also avenged San Juan’s 8-13, 9.5-11.5 loss to the same GM Joey Antonio-led Iloilo squad in last year’s finale.

“The biggest factor was the team stayed focused and determined,” said San Juan owner Michael Ong Chua.

Grizzled International Master (IM) Ricky de Guzman and Narquingel Reyes also won their four games to help seal the surprisingly one-sided triumph for the Predators, who hurdled the Caloocan Loadmanna Knights, 14-7, 16.5-4.5, in the Northern Division finals on Wednesday.

Also contributing to the win were FIDE Master Arden Reyes, Woman IM Jan Jodilyn Fronda, Narciso Gumila and IM Rolando Nolte, who snatched 1.5 points from his four duels with the fancied Mr. Antonio.

The Kinsela Knights, who turned back Penang of Malaysia, 9.5-11.5, 14.5-6.5, 2-1, in the South, settled for a runner-up finish. — Joey Villar

PSEi seen sideways on fresh coronavirus concerns

BW FILE PHOTO

STOCKS may move sideways this week amid volatile trade due to month-end window dressing and concerns over the spread of a new coronavirus disease 2019 (COVID-19) variant.

The bellwether Philippine Stock Exchange index (PSEi) slid 90.83 points or 1.23% to close at 7,278.44 on Friday, while the broader all shares index dropped 41.88 points or 1.07% to end at 3,871.39.

Week on week, the local bourse slipped by 2.13 points from its 7,280.57 close on Nov. 19.

“Last week saw mostly sideways action, with the index even retesting the 7,400 level. However, majority of the sell-off on Friday was attributed to the scare caused by the Omicron variant, which was already detected in several countries and regions, including neighboring Hong Kong,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The week started on a good note, as investors took positively the rollout of COVID-19 booster shots in the country, which in turn sparked hopes for a further reopening of the economy in the coming months. However, sentiment was parred towards the end of the week, amid participants feeling anxious that the US Federal Reserve might raise interest rates earlier than expected,” Timson Securities Inc. Trader Darren Blaine T. Pangan said in a Viber message on Saturday.

On Friday, the World Health Organization (WHO) declared the new COVID-19 variant (B.1.1.529), now called Omicron, as a “variant of concern” and indicated that their preliminary evidence suggests that it has a high reinfection rate.

First detected in South Africa, the Omicron variant has now recorded cases in Britain, Germany, Italy, Belgium, Botswana, Israel, and Hong Kong, Reuters reported.

Meanwhile, most US central bank policy makers are open to speeding up the unwinding of their bond-buying program if high inflation persists, which would lead them to raise interest rates sooner than expected.

For this week, analysts said trading could be volatile due to persistent concerns over the new coronavirus variant.

“Market may recover on window dressing at last day of the month after getting oversold last week, but the new variant of the virus may continue to provide market uncertainties — thus, volatility may persist,” said Diversified Securities Inc. Equity Trader Ancieto K. Pangan said in a text message on Sunday.

He pegged the PSEi’s resistance at 7,419 to 7,475, while support is at 7,209 to 7,049.

Meanwhile, China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail on Sunday that the PSEi may consolidate with 7,000 to 7,100 as its support area.

“Monday’s close could prove to be critical as a break below 7,270 will likely lead to deeper breakdown. Volatility is also likely to pick up in the coming week,” Mr. Mercado added. — M.C. Lucenio with Reuters

Updated Volkswagen T-Cross SE is home for the holidays

PHOTO FROM VOLKSWAGEN PHILIPPINES

VOLKSWAGEN PHILIPPINES has announced the arrival of the updated SE variant of its T-Cross vehicle. Badged as a 2022 model, the T-Cross SE is said to offer “more features attuned to the evolving needs of multi-faceted, on-the-go millennials.”

It gets a digital Active Info Display (AID) that lends drivers better performance graphics showing important information at a glance, without needing to take attention off the road, adding to an overall better driving experience.

The infotainment system of the T-Cross SE boasts wireless Apple CarPlay for more seamless connectivity, “completing an uplifting drive experience with the T-Cross.”

Volkswagen Philippines added that the 2022 T-Cross SE’s new features “perfectly complement the fun body color choices, such as Tribu, Syringa Violet, Romance Red, Chinchilla Gray, and Polar White, such that the overall vibe truly reflect the value its intended owners place on individuality and the expression of uniqueness using aesthetics.”

The company offers an extraordinarily low reservation fee of P1,250 on the model. For more information, visit any Volkswagen dealership. Contact Volkswagen BGC at (02) 8558-5888, Volkswagen Quezon Avenue at (02) 8558-5818, Volkswagen Pampanga at (45) 961-1888, Volkswagen Santa Rosa at 0935-427-8545, Volkswagen Cebu at (32) 517-8226, Volkswagen Iloilo at (33) 331-2622, Volkswagen Bacolod at (034) 435-7575, and Volkswagen Cagayan de Oro at 0905-692-0629. Check out www.volkswagen.com.ph; like and follow the Volkswagen Philippines Facebook page and Instagram account at @volkswagenph to keep updated.

Yields on gov’t debt drop on BTr’s borrowing plan

YIELDS on government securities mostly dropped last week due to the Treasury’s borrowing program for December, which showed it plans to raise less funds from the local market.

Debt yields, which move opposite to prices, went down by an average of 4.3 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Nov. 26 published on the Philippine Dealing System’s website.

At the short end of the curve, yields on 91-, 182-, and 363-day Treasury bills (T-bills) inched up by 2.07 bps (to 1.2378%), 0.46 bp (to 1.4571%), and 5.53 bps (to 1.6963%), respectively.

At the belly of the curve, the rate of the two-year Treasury bonds (T-bonds) jumped by 4.54 bps (to 2.7672%). Meanwhile, the three-, four-, five-, and seven-year bonds declined by 5.81 bps (to 3.265%), 11.28 bps (to 3.6987%), 12.15 bps (to 4.0551%), and 11.26 bps (to 4.5301%), respectively.

At the long end, the rates of the 10-, 20-, and 25-year T-bonds fell by 9.56 bps (to 4.9981%), 4.7 bps (to 5.0187%), and 5.18 bps (to 5.0011%), respectively.

“The local yield curve continued to bear-flatten [last] week as front-end yields rose while belly and longer bonds moved lower,” First Metro Asset Management, Inc. (FAMI) said in a Viber message.

“Yields in the 5-year and up sector found support as market cheered on the lower debt supply for December.”

The Bureau of the Treasury (BTr) said it plans to raise P70 billion from the domestic market in December, down from the previous month’s program after seeing strong demand for its retail Treasury bond (RTB) offer.

The December borrowing plan is lower than the P200-billion program initially set in November, before the BTr canceled the auctions of P35 billion each in five-year and seven-year T-bonds on Nov. 16 and 23 to give way to the RTB offering.

The Treasury raised an initial P113.545 billion at its price-setting auction on Nov. 16 for its offer of 5.5-year RTBs. This was oversubscribed by more than five times versus the initial P30-billion offer.

Bank of the Philippine Islands Chief Market Strategist Marco Miguel M. Javier said the lower borrowing program for next month may temper supply risk this week and keep rates sideways or lower.

“We’re keen on Chairman Powell’s testimony to the Senate Banking Committee next week for any clues on a faster tapering/rate lift-off,” he said in a Viber message. “The threat of a new COVID-19 variant may also weigh on investors’ minds.”

US President Joseph R. Biden said he plans to nominate Federal Reserve Chairman Jerome H. Powell to another term as head of the central bank, through which Mr. Powell would face confirmation hearings with the Senate Banking Committee.

Minutes of the Fed’s recent meeting said officials want to be prepared for a quicker tapering of asset purchases if inflation remains elevated, Reuters reported.

Meanwhile, South Africa’s health minister had announced the detection of a new coronavirus disease 2019 variant, which scientists said had a high number of mutations.

FAMI said flattening pressure on the curve may persist in the near term heading into the listing date of the RTBs.

“We see GS (government securities) yields to remain supported until yearend to early next year in view of inflation falling back within the BSP’s (Bangko Sentral ng Pilipinas) 2-4% target.”

Headline inflation last month slowed to 4.6% from 4.8% in September amid a slower increase in food prices. Still, this was the third straight month inflation exceeded the central bank’s target. — J.P. Ibañez

Style (11/29/21)

G-DRAGON, Nike Kwondo1

G-DRAGON’s new Nike Kwondo1

NIKE and South Korean designer G-DRAGON have launched the Nike Kwondo1, a second footwear collaboration and new silhouette. Leveraging a white canvas design, G-DRAGON, and his PEACEMINUSONE label, came up with the Nike Kwondo1. Key features of the shoe include: a premium leather upper with Brogue detailing inspired by Nike’s Tiempo football boots and classic golf shoes; stylish wings, removeable flap tongue and lace kiltie to balance both a formal and sporty aesthetic; an all-white colorway silhouette that serves as a blank canvas for any look and style; the PEACEMINUSONE daisy motif embroidered on the back tabs, and together with the label’s detailing on the tooling and aglets, represent Nike’s partnership with one of the most creative minds in the world. The footwear is named for the blending of Korean martial arts “taekwondo,” G-DRAGON’s Korean name Kwon Ji Yong, and Nike’s slogan “Just Do It.” The Nike Kwondo1 will be released globally on Dec. 3 on Nike.com, SNKRS, and at select retailers, and in North America in early 2022.

Uniqlo opens its 1st store in Camanava

JAPANESE global apparel retailer, Uniqlo, opened its first store in the area within the cities of Caloocan, Malabon, Navotas, and Valenzuela (Camanava) at SM City Grand Central on Nov. 26. Located at the 2nd level of the mall, the Uniqlo SM City Grand Central store has 830 sqm shopping space featuring the brand’s LifeWear clothing. The new store will showcase the latest lineup of Uniqlo items — including the latest Fall/Winter collection for men, women, kids and babies, just in time for the holidays. Shoppers can avail of special offers from Nov. 26 to Dec. 3 on Women’s Ultra Stretch Leggings Pants, Men’s Chino Shorts, and Kids Easy Shorts. For more updates, visit Uniqlo Philippines’ website at www.uniqlo.com/ph and follow social media accounts, Facebook (facebook.com/uniqlo.ph), Twitter (twitter.com/uniqloph) and Instagram (Instagram.com/uniqlophofficial).

Maybelline Lifter Gloss with Hyaluronic Acid now in PHL

MAYBELLINE’S new Lifter Gloss with Hyaluronic Acid has been going viral on TikTok for all the right reasons: it is a hydrating and plumping gloss. Usually used in skincare, Hyaluronic Acid or HA is a cult-favorite among skincare aficionados. The hype is real with Hyaluronic Acid: an ingredient that attracts and holds on to moisture in skin cells. With HA as a key ingredient in its formula, Maybelline Lifter Gloss is able to give lips a plump, luscious look upon application and nourishes lips at the same time. Maybelline’s formula keeps lips supple and hydrated with care. And it has an easy-to-use XL wand. The gloss is available in six pink and nude shades. The lip gloss is available for P349 at Maybelline’s Official Lazada and Shopee stores: https://bit.ly/LifterGloss-Shop.

Gift giving with Avon

GOOGLE reports that global searches for “online gift” increased by 80% in 2020 compared to 2019, and has expanded beyond the usual special occasions like birthdays and the holidays, as well as giving gifts beyond immediate family or social circles. Facebook also shares that about 73% of holiday shoppers in the Philippines agree that the holidays is the best season to find deals. So Avon is making it easy to shop for gifts online via  www.avonshop.ph, with everything from make-up and fragrances, skincare and jewelry, intimates and accessories, and more, all in one shop. These include the Far Away Royale fragrance, Avon Anew Essence for skincare, and the latest Avon x Love Marie Collection Plate set. For the undecided, Avon representatives can recommend gifts based on who you’re giving to and the best products that fit your budget. Don’t have an Avon Representative? Visit www.avon.ph or like and check out Avon Philippines on Facebook.

A ‘merry’ safe Christmas at SM Supermalls

SM Supermalls is making sure that all its visitors get to have a “merry” safe Christmas. For one, SM malls have rolled out its #SafeMallingAtSM campaign. This means that as government alert level restrictions slowly ease, SM is intensifying its safety protocols to ensure public health and safety, especially during the holiday rush. SM malls nationwide are disinfected thoroughly and regularly, especially in areas with heavy foot traffic, plus alcohol dispensers are deployed in strategic places. Meanwhile, all mallgoers are required to have their temperature checked at the mall entrances, wear their face masks and shields, and encouraged to practice social distancing at all times. To date, 77 SM malls have been awarded the Safety Seal. This is a voluntary certification that affirms that the establishment is compliant with the government’s public health standards and utilizes contact tracing with StaySafe.ph. Meanwhile, Santa Clause may not be coming to town but “Santi” Claus is. Santi the robot will be found around the decked halls of select SM malls to greet visitors and help ensure health and well-being by sanitizing every area with an aerosol disinfectant that is 100% hypoallergenic, non-toxic, and non-corrosive. Currently, over 5 million COVID-19 jabs have been given at SM malls nationwide in partnership with the LGUs. Moreover, SM employees are 100% vaccinated. With all the essentials  – from the latest gadgets, to new home décor, from dining, and self-care sessions with a new hairstyle or manicure; to getting vaccinated, and even applying for government IDs — found at SM, visitors don’t have to go anywhere else to complete their Christmas shopping and tick off that to-do list. Still, if someone decides to play it safe by opting to stay at home, SM still has them covered through its SM Store Gift Registry and SM Malls Online app. Ask family and friends for their wish list for the holidays through SMS, Viber, Facebook, and e-mail using the SM Store’s Gift Registry app (https://www.thesmstore.com/pages/gift-registry). The SM Malls Online app is available for free via the Google Play or App Store with SM North EDSA, SM Megamall, and SM Mall of Asia.

Lush is becoming anti-social

THE GLOBAL brand Lush has turned its back on Instagram, Facebook, TikTok, and Snapchat until these platforms take action to provide a safer environment for users, the company said in a statement. This policy is rolling out across all the 48 countries where Lush operates. Concerns about the serious effects of social media are barely being acknowledged, it noted, so Lush “has decided to address these serious issues now and to start by changing its own practices rather than waiting until others notice that there is actually a real problem.” Having previously attempted this in 2019, the company said “our resolve has been strengthened by all the latest information from courageous whistleblowers, which clearly lays out the known harms that young people are exposed to because of the current algorithms and loose regulation of this new area of our lives.” Jack Constantine, Lush’s CDO and Product Inventor, is quoted as saying, “As an inventor of bath bombs, I pour all my efforts into creating products that help people switch off, relax and pay attention to their wellbeing. Social media platforms have become the antithesis of this aim, with algorithms designed to keep people scrolling and stop them from switching off and relaxing.” The company said it will not become “completely anti-social” as it can still be found on Twitter and YouTube. In the Philippines, Lush is exclusively distributed by Stores Specialists, Inc., with shops at Alabang Town Center, Bonifacio High Street, Glorietta 4, Greenbelt 3, Robinsons Magnolia, Shangri-La Plaza, SM Mall of Asia, and TriNoma. Available also in Zalora and Trunc.com.

LA-based Pinay unveils soy wax candle brand

LOS ANGELES-based Filipino entrepreneur Joyce Jamlang-Tiongson has harnessed the power of scents in Ryliv Home, her recently launched brand which offers hand-poured soy wax candles with the  aroma of essential oils. At the onset of the pandemic, Ms. Jamlang-Tiongson belonged to a corporation which was forced to close its doors. Now home-bound, she turned to scented candles and diffusers to ease the stress brought about by the sudden unexpected situation. This inspired her to venture into this endeavor. Armed with an Export Management Degree from the De La Salle-College of Saint Benilde and her 11 years of extended overseas experience as a sales manager, she conducted extensive research and experimented until she perfected her first batch of homemade candles. Thus in early 2021, Ryliv Home, named after her son Ryder and her daughter Olivia, started operations. The initial series offered four sizes and over 10 scents, headlined by the bestselling Eucalyptus, French Lavender, Gardenia, Plumeria and Black Oud. The selections likewise include Sweet Pea, Citrus Flower, Coconut, Apple Cinnamon, Cashmere and Vanilla, Rosewater and Chamomile, Sandalwood and Pumpkin Spice. Now, Ms. Jamlang-Tiongson has released her first Christmas collection, which comes in the scents of Winter Forest and Pine Mist. Currently, she is gearing up to open a physical boutique for home fragrance and goods in the US. For more information, visit Ryliv Home on https://www.instagram.com/rylivhome/ or https://rylivhome.com/.

Economic reopening, holiday spending boost SM Prime shares

By Keren Concepcion G. Valmonte, Reporter

SM Prime Holdings, Inc. was one of the most actively traded stocks last week, as investor sentiment was boosted by the country’s gradual economic reopening amid the upcoming holiday season.

Data from the Philippine Stock Exchange (PSE) showed a total of 51,411,300 SM Prime shares worth P1.68 billion were traded from Nov. 22 to 26, making it the fifth most actively traded in the stock market last week.

SM Prime shares closed at P36.60 per share on Friday, up by 1.8% from a week ago.

Year to date, however, the stock’s price declined 4.94%.

“The stock may have been affected positively by the optimistic sentiment brought by the decline in new COVID-19 (coronavirus disease 2019) cases in the country, which points to a more probable economic reopening in the coming weeks,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Friday.

“This may benefit the company’s residential and mall businesses, and the whole economy in general,” he added.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said investors might be optimistic on the issue as the gradual reopening of the economy fell at the start of Christmas holiday season, “which accounts for a significant share of sales for many businesses and industries.”

“Senior citizens and children were finally allowed to go out of their houses after more than one and a half years, thereby also boosting foot traffic for malls and other retailers closer to pre-pandemic levels and in time for the peak season for sales during the Christmas holiday season,” Mr. Ricafort said in a separate Viber message on Friday.

The Health department on Saturday logged 899 new COVID-19 infections, bringing the country’s active cases to 17,052. The country’s total cases stood at 1.83 million.

Metro Manila will be under Alert Level 2 until end-November. Meanwhile, the Philippines has declared Nov. 29, Nov. 30, and Dec. 1 as national COVID-19 vaccination days, targeting to have at least 15 million Filipinos vaccinated.

“However, offsetting risk factors include the surge in new COVID cases in some European countries especially new record daily cases recently in Germany as well as some concerns over the new coronavirus detected in South Africa (B.1.1529) that led to some travel restrictions in some parts of the world,” Mr. Ricafort said.

The government has also implemented a travel ban until Dec. 15 against South Africa, where the new COVID-19 variant Omicron was first detected, along with other countries.

On the other hand, Swedish furniture store Ikea finally opened its doors in Manila last week, Thursday.

“The recent opening of Ikea’s biggest store in the world here in the country also bode well for mall and retail businesses in the coming months or years as the economy moves closer to greater normalcy as new COVID-19 cases eased to the lowest levels since late last year amid increased vaccination program to expedite the achievement of population protection and eventually herd immunity,” Mr. Ricafort said.

The store is located on a property leased by SM Prime’s Mall of Asia spanning 68,000 square meters (sq.m.) — making it the world’s biggest Ikea outlet. The store has a 15,000-sq.m. showroom and market hall and 16,000 sq.m. of warehouse space.

Last week, the company also launched SM City Grand Central in Caloocan, which added over 116,000 sq.m. of gross floor area to its mall portfolio.

SM Prime’s trading session last week started with the stock declining by 0.14% from its Nov. 19 close, before climbing 2.47% and 1.76%, respectively, on Tuesday and Wednesday. Investors pocketed gains from the stock as its share price went down 1.2% and 1.21% on Thursday and Friday.

According to its latest earnings report, SM Prime’s net attributable income inched up 1.05% in the July-to-September period to P3.98 billion from P3.94 billion in the same period last year.

Meanwhile, its net attributable income for the nine-month period rose 9% to P15.62 billion from P14.37 billion a year ago.

RCBC’s Mr. Ricafort placed SM Prime’s stock price resistance at the P38 to P40 range, while P35 was considered its immediate support.

Meanwhile, Timson Securities’ Mr. Pangan pegged the stock’s major support area at P32.50, with P40.40 as its nearest resistance level.

“The stock seems to have been trading between this huge range area for almost the whole year, and a break of either the support and resistance areas may be considered a significant move for this issue,” Mr. Pangan said.

How PSEi member stocks performed — November 26, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, November 26, 2021.

Philippines scores below average in global sustainability list, lags the region

Philippines scores below average in global sustainability list, lags the region

Labor candidate for President to fund recovery with wealth tax

PHILSTAR FILE PHOTO

LABOR LEADER and Presidential candidate Leodigario Q. de Guzman said his P1-trillion recovery plan will be financed by a one-time 20% wealth tax on the 500 richest families in the Philippines, with relief measures to be focused on workers in financial distress due to the pandemic.

“We are very confident that our campaign will touch the hearts and minds of our countrymen,” he told BusinessWorld in a Viber message. “With the help of a free and independent mass media, we will be able to get our message of real change across.”

He expects his platform to be blocked by “old and backward political forces” who have “long protected and advanced the interests of billionaires and big businesses,” and is counting on support for his plan from independent workers.

The recovery plan will include a P475-billion public jobs generation program, P400 billion in health stimulus, and P125 billion for micro, small, and medium enterprises (MSMEs), all designed to address the public health and livelihood crises.

“We cannot primarily rely on the private sector to revive the economy. ‘Trickle-down economics’ is a sham. Its promise of poverty alleviation as a by-product of business growth is untrue,” he said in English and Filipino in a statement Saturday.

The P475-billion jobs program, he said, is expected to create 2.45 million jobs, reducing the unemployment rate by half. Targeted jobs include barangay health workers, forest rangers and forest biodiversity caretakers, teaching assistants and school personnel, agriculture workers, construction workers, and builders workers involved in public works projects.

The P400-billion health program will eliminate all health-related out-of-pocket expenses for one year.

The MSME recovery plan will set a fixed wage subsidy for 1 million workers who will be selected based on labor intensity, level of distress in the industry, and the prevailing unemployment rate in the province where the MSME is based.

Eligible MSMEs will receive a subsidy equivalent to 75% of the worker’s wages for at least one year, on the condition that all employees are paid in full, according to Mr. De Guzman, whose Labor First Policy is also pushing for a minimum wage of P750 a day.

In his plan for 2023 onwards, the government will institutionalize the job generation program via P500 billion per year employment guarantee for 2 million workers to be funded by a recurring tax on financial assets of between 1% and 5% depending on wealth thresholds.

It will also include a P90 billion per year subsidy which will provide a P500 daily allowance to 1.3 million involuntarily unemployed workers for half a year, funded through an additional 10% corporate income tax that may require reversing the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.

He proposed a P250-billion annual budget to support a single-payer healthcare system, and to better compensate healthcare workers. All private healthcare contractors will also be enrolled in fixed-price public-private partnership contracts with the government, to be financed by a 5% Real Property Tax, which will be transferred from local government units to the national healthcare service. — Alyssa Nicole O. Tan

Spot prices on WESM fall to P5.17 per kWh

THE average spot price of electricity on the wholesale electricity spot market (WESM) fell to P5.17 per kilowatt-hour (kWh) in November from  P6.75 a month earlier, as supply increased while demand was stable, the market operator said Friday.

The Independent Electricity Market Operator of the Philippines (IEMOP) added in its second market report for the year that the power providers supplying the WESM had total capacity of 21,344 MW, including 437.7 MW added from new power plants since May.

It said renewable power capacity grew by 133.2 MW since its last report, ahead of the launch of the Department of Energy’s (DoE) Green Energy Option Program.

WESM supplies spot power to companies whose contracted long-term supply proves to be insufficient, typically at a higher price than those agreed in power purchase agreements.

“As for market transactions, the Effective Settlement Spot Price (ESSP) increased from P3.41/kWh in September to P6.43/kWh in October,” the IEMOP said, adding that the total supply of power purchased from the spot market also increased to 8% from 7.8% over the same period.

ESSP is the effective rate paid by the customers for their respective WESM transactions for each billing month.

The IEMOP is gearing for the launch DoE’s Green Energy Option Program (GEOP), as authorized by the Renewable Energy Act of 2008, which will give eligible consumers the option to choose renewable energy generators for their power.

Under Section 6 of the Implementing Rules and Regulations of the Renewable Energy Law of 2008, the Energy Regulatory Commission (ERC), is required to manage the GEOP market in a manner that encourages the expansion of the renewable energy industry.

“In the long run, the GEOP will help us to achieve energy independence as it reduces our dependence on imported energy sources,” ERC Chairperson and CEO Agnes Vicenta T. Devanadera said in a statement on its plans for regulating the GEOP.

Under the GEOP rules, end-users with monthly average peak demand of 100 kilowatts (kW) and above for the past 12 months and end-users who had been operating for less than a year when the GEOP comes into effect are qualified to select renewable energy as their power source.

The renewable energy suppliers accredited by the Department of Energy are Bac-Man Geothermal, Inc., First Gen Energy Solutions, Inc., SN Aboitiz Power-Magat, Inc., SN Aboitiz Power-RES, Inc., AC Energy Corp., SPARC-Solar Powered Agri-Rural Communities Corp., Citicore Energy Solutions, Inc., Aboitiz Energy Solutions, Inc., Prism Energy, Inc., AdventEnergy, Inc., Shell Energy Philippines, Inc., Green Core Geothermal, Inc., DirectPower Services, Inc., and Solar Philippines Retail Electricity, Inc. — Marielle C. Lucenio

Exporters expecting further growth as markets reopen, industry digitizes

EXPORTERS said they expect shipments to grow as markets reopen and industry members make progress on their digitalization efforts.  

George T. Barcelon, Philippine Exporters Confederation, Inc. (Philexport) chairman, said the lowering of alert levels in the Philippines and progress on the vaccination program, are also vital to the economic recovery.

The Philippine Statistics Authority reported that exports in the nine months to September rose 18% year on year to $55.68 billion.  

“Electronics are expected to continue to be the biggest dollar earner, with industrial, medical, automotive, and telecom electronics products as the growth drivers,” Mr. Barcelon said in a statement over the weekend.  

He said Philexport is implementing a “Future-Ready” program, known as P30, focusing on technology upgrades and closer collaboration with partners.

The program features the AI-powered Philexport portal and the preparation of business continuity plans.

Mr. Barcelon said the Philexport portal offers business matching services, online transactions, and marketing support.

“At Philexport, we have also started the digitization of files and (are) now moving to the development of systems that will support the portal and our online operations. We also intend to share these templates with our business support organizations and company members,” Mr. Barcelon said.

Mr. Barcelon said the Export Connect collaboration platform will help members coordinate with government agencies on regulatory requirements.

Separately, Employers Confederation of the Philippines  president Sergio R. Ortiz-Luis, Jr. said the organization is working with the Labor department and the Technical Education and Skills Development Authority to upgrade worker skills ahead of the economy’s digital transformation.  

“We are handholding the micro, small and medium enterprises to pivot to sectors and platforms that are successfully exhibiting resilience and increasing demand,” Mr. Ortiz-Luis said.  — Revin Mikhael D. Ochave

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