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New vaccines seen necessary against new strains of Omicron

THE Philippines may need to bring in new vaccines to deal with emerging subvariants of the coronavirus disease 2019 (COVID-19) omicron strain without having to impose mobility restrictions, a government adviser said.

Jose Maria A. Concepcion III, Go Negosyo founder and member of the Marcos government’s Private Sector Advisory Council, said in a statement on Tuesday that the new types of vaccines, known as bivalent vaccines, offer better protection against the Omicron XBB and XBC subvariant recently detected in the Philippines.

According to Mr. Concepcion, the Philippines needs “up-to-date protection” to safeguard the recovery, which is being pressured by surging commodity prices, interest rates, and the weakening peso in the runup to the yearend, which many businesses depend on for their earnings. 

The Health department reported on Tuesday that the 81 cases of subvariant XBB and 193 cases of XBC variant have been detected in the Philippines.

“This fourth quarter is so important because it is when business momentum increases and many jobs are created, especially in food and retail. It’s also when businesses can have enough cash flow and cross over to 2023,” Mr. Concepcion said.

“There is no need to restrict movement; people only need to be careful. Businesses already know their own health protocols, and by now they have that experience,” he added.

Mr. Concepcion said bivalent vaccines may help do away with the need for restricting mobility, which were damaging to the economy in the pandemic’s early days.   

“The number of cases may go up, but as long as the hospitals are not at full capacity, the economy can remain open,” Mr. Concepcion said.

Mr. Concepcion said that he sent a letter to the Health department on Oct. 12 pledging private sector aid in bringing in and distributing bivalent vaccines, adding that his recommendation is to limit the choice of supplier to Pfizer and Moderna.

“Of utmost importance besides pre-registration is the least disruption in the personal cost and work schedule of those to be vaccinated who are battling more pressing concerns. We can re-activate arrangements and partnerships that have worked well in our previous implementation,” Mr. Concepcion said. — Revin Mikhael D. Ochave

Grab-Move It deal falls below threshold for regulatory review

THE Philippine Competition Commission (PCC) said on Tuesday that Grab Philippines’ acquisition of motorcycle taxi firm Move It does not require its approval. 

“Based on an initial assessment by the PCC, Grab Philippines’ acquisition of Move It likely did not breach the thresholds for compulsory notification,” PCC Officer-in-Charge Chairman Johannes Benjamin R. Bernabe said in a statement.

“Hence, the parties need not wait for approval from the PCC to consummate the transaction,” he added.

The commission noted that the transaction was entered into by Grab and Move It when the P50-billion notification thresholds under Republic Act No. 11494 or the Bayanihan to Heal as One Act was in effect.

“Likewise, the publicly announced size of transaction seems to not have breached the thresholds under the Bayanihan Law,” according to Mr. Bernabe.

But he added that the PCC may still launch a motu proprio review of the transaction if it suspects it will result in a “substantial lessening of competition in the relevant markets.”

Grab Philippines announced its acquisition of Move It in August, paving the way for its entry into motorcycle taxi operations.

“Transactions in digital markets are often characterized by small tangible assets that fail to meet the triggers for mandatory review. Their importance and utility to consumers, however, rank high in the priorities of the commission to merit steadfast monitoring,” the PCC said.

“To note, this new acquisition by Grab Philippines will not affect the company’s existing legal commitments to the PCC relating to its takeover of (the Philippine operations of) Uber,” it added.

The commission added that it supports efforts to amend the Land Transportation and Traffic Code to allow two-wheeled vehicles as a mode of public transportation.

“Notwithstanding any comprehensive competition review, the commission considers the availability of motorcycle taxis and future expansion for the entry of more players as an indicator of an emerging market offering additional public transport options for commuters,” the PCC said. — Arjay L. Balinbin

Electricity spot market prices rose in early Oct.

THE Independent Electricity Market Operator of the Philippines (IEMOP) said the average electricity spot market price in early October rose to P9.31 per kilowatt-hour (kWh) from P9.12 per kWh in September and P7.26 per kWh in August.

IEMOP considers the September average to be the high for the year, with October results still partial and subject to validation.

IEMOP said that in September, demand on the Wholesale Electricity Spot Market (WESM) rose 1.47% to 10,639 megawatts (MW), while the average supply fell 4.73% or 675 MW to 13,599 MW due to generator outages.

The spot market is where the power industry buys power when its long-term supply agreements are insufficient. They need to pay spot prices, which are at a premium to power contracted earlier for forward delivery. 

IEMOP said power generated by diesel plants totaled 220-gigawatt hours (GWh) or 2.9% of the generation mix in September, up from 93 GWh or 1.2% in August. 

Coal power plants accounted for 4,434 GWh or 57.6%, natural gas 1,407 GWh or 18.3%, geothermal 772 GWh or 10%, hydro 582 GWh or 7.6%, variable renewable energy resources 172 GWh or 2.8%, biomass 67 GWh or 0.9%, and battery energy storage systems 2 GWh or 0.03%. — Ashley Erika O. Jose

Supermarkets may stop selling sugar if gov’t sets P70/kg price

PHILIPPINE STAR/ MICHAEL VARCAS

A PLAN announced by the Department of Agriculture (DA) and the Sugar Regulatory Administration (SRA) to set the price of white sugar at P70 per kilogram (/kg) might lead to the withdrawal of some varieties of the commodity from supermarket shelves, an industry association said on Tuesday.  

Steven T. Cua, Philippine Amalgamated Supermarkets Association president, said during an interview on BusinessWorld Live caried by One News Channel that association members might stop selling washed and brown sugar because white refined sugar sold according to the government’s pricing.

“They probably won’t be selling washed and brown sugar since white sugar will be at P70/kg, which will be cheaper than brown or washed sugar…. This is what you call intervention within the economy,” Mr. Cua said.

The DA announced on Monday that it will sell sugar to consumers at P70/kg at SRA offices in Quezon City and Bacolod City.

It added that Kadiwa rolling stores will also retail sugar to consumers at P70/kg.

Mr. Cua said retailer price of white refined sugar at over P100/kg.  

“There will still be stock floating around at a P100+/kg, and then there will be items sold by different brands at P70/kg,” Mr. Cua said.

  “Even if a supermarket buys from suppliers (at a price that allows them) to sell at P70/kg, they will still have stock which (need to sell for) P100+/kg… It will be confusing for a bit,” he added.

The DA has said that it is considering a suggested retail price (SRP) for sugar that is “acceptable” to consumers and the industry.  

“P70/kg looks realistic (as an SRP), but again, is it sustainable? The government should be able to sustain it so that it doesn’t go up and down just like fuel prices,” Mr. Cua said. — Revin Mikhael D. Ochave

Tax ‘leakage’ from POGOs estimated at P1.9B as of August

STOCK PHOTO | Image by Aidan Howe from Unsplash

THE tax “leakage” due to incorrect payments by Philippine Offshore Gaming Operators (POGOs) was estimated at P1.9 billion in the eight months to August, a senior legislator said.

Senator Sherwin T. Gatchalian said in a statement on Tuesday that the estimate suggests that “we are not realizing the full benefits of allowing POGO operations in the country.”

The Philippines needs to “consider developing other industries that are sustainable, high-yielding, and long-term,” he added, proposing a renewed focus on the business process outsourcing industry.

Mr. Gatchalian, citing internal research conducted by his staff, said there are discrepancies in the gross gaming revenue declared by POGOs to the Bureau of Internal Revenue (BIR) and Philippine Amusement and Gaming Corp. (PAGCOR).

Indicative gross gaming revenue from January to August, based on the 5% gaming tax payments made to the BIR by POGO operators, totaled P28.36 billion, Mr. Gatchalian said. 

However, the 2% regulatory fee payments to PAGCOR suggest indicative gross gaming revenue for the same period at P66.67 billion, he added, noting as well that PAGCOR’s accounts receivable from POGOs over the same period amounted to P2.3 billion. 

“It’s regrettable that even legitimate POGOS are remiss in the payment of correct taxes,” he said. “This is exactly the reason a tax regime for POGOs was put in place… to reduce uncollected taxes due the government.”

Republic Act 11590 or the Act Taxing POGOs, revenue generated by the gaming tax on offshore gaming licensees must be allocated to implement the Universal Health Care Act (60%), the Health Facilities Enhancement Program (20%), and to attain Sustainable Development Goals (20%).

“Before, we projected that revenue from POGO of around P30-40 billion. Now, the reality is P3-5 billion, so if there are leakages, all the more, the figures are disappointing,” Senate Minority Leader Aquilino Martin D. Pimentel III said at a briefing on Tuesday, according to a transcript issued by his office.

The BIR said this month that taxes generated by the POGO industry amounted to P4.4 billion in the eight months to August, ahead of the P3.91 billion full-year total in 2021 but much less than the bullish pre-pandemic projections for the industry.

The Department of Finance had expected a law regulating POGOs to raise P32.1 billion in 2021, on the assumption that operations will return to pre-pandemic levels.

Looking at the weaker-than-expected revenue and rising crime associated with the industry, Mr. Pimentel said there are “overwhelming reasons to (review) our policy on POGO.”

The senate minority leader said a group of senators is pushing to shut the industry down and expressed the hope that the executive branch will expedite the resulting legislation. — Alyssa Nicole O. Tan

Philippines unlocks film financing deals with France under UN pact

REUTERS

THE Philippines has approved funding allowing it to participate in a United Nations (UN)cultural convention, unlocking future film financing deals with France, the Film Development Council of the Philippines (FDCP) said.

“This morning, the (Department of Budget and Management) approved the budget for (participation in the 2005 United Nations Educational, Scientific and Cultural Organization convention), so it means we’re on our way there to finally having a formalized co-production venture with France,” FDCP Technical Consultant Jose Javier Reyes said at a briefing organized by the French Embassy.

The Convention on the Protection and Promotion of the Diversity of Cultural Expressions makes productions here eligible for foreign funding by assuring funders that the Philippines subscribes to a common set of principles in supporting cultural projects.

“If it is ratified, we can access film financing from other countries, especially France,” FDCP International Relations Officer Marian Torre told BusinessWorld in a text message.

A co-production treaty between the Philippines and France can only be sealed once the UNESCO Treaty is ratified, as required by the French government.

“Right now, we are still in that process of trying to finalize the UNESCO treaty, which has to go through the usual (approval) process,” Mr. Reyes said.

“Since there’s a new administration, we’re back to square one, but in the meantime, we already have (preliminary agreements) with various French organizations,” he added.

Talks to sign on to the treaty have been ongoing since 2019. Following the 2022 Third Quarter Meeting and Planning Workshop, the accession package had been forwarded to the Secretary of Foreign Affairs for signing.

However, with the government transition, signatures must also be obtained from the new set of officials from 17 agencies, including the DBM, whose particular concern is ensuring that funding for participating in the convention is available from the national budget.

“This is not yet included in the NEP (National Expenditure Program) since it’s still undergoing the ratification process,” Budget Undersecretary Goddes Hope O. Libiran told BusinessWorld in a Viber message

Should ratification take place after the 2023 budget deliberations, Ms. Libiran said that the “funds will come from Contingent Fund, then in subsequent years included in the (Department of Foreign Affairs) budget.”

“The relationship of the Film Development Council and the French Embassy has been well-nurtured and has resulted in really profitable and great learning experiences for both sides,” Mr. Reyes said. “Many ventures, of which, both the Filipinos and the French provide grants and co-production incentives in order to foster a greater relationship.”

“Film is indeed the new language of the world. It is the medium that defines differences in language and culture and binds us together and the world as one,” he added.

Separately, the Hague Conference on Private International Law (HCCH) is expected to enhance cross-border interaction between individuals and businesses.

During the opening ceremony of the HCCH Asia Pacific Week Manila 2022 at the Makati Diamond Residence, HCCH Secretary General Christophe Bernasconi said international solutions “enhance legal cooperation and integration simultaneously with close neighbors and with countries further afield, whether within regional organizations or with third states.”

“Being able to rely on a uniform international legal framework is of particular importance in an area as vast and as diverse as Asia and the Pacific,” he added.

Asia-Pacific Week Manila 2022, which runs between Oct. 18 and 20, had as a speaker Foreign Affairs Secretary Enrique A. Manalo, who highlighted “the remarkable role of the HCCH in shaping private international law and in fostering international initiatives in the areas of family and child protection law, transnational litigation and cooperation and international commercial, digital and financial law.”

“In these times of uncertainty and a changing global landscape, cross-border cooperation among HCCH States Parties in the Asia-Pacific region will provide an opportunity to expand areas of common interest and possible solutions to common issues,” he added.

The Philippines is a party to five HCCH instruments, the most recent being the Child Support Convention which entered into force for the Philippines on Oct. 1. To date, the Philippines is the only country in Asia to have ratified the convention. — Alyssa Nicole O. Tan

House panel pushing measures to reduce cost of remittances

CUSTOMERS receive money from their families working abroad at a remittance center in Makati City in this file photo. — REUTERS

LEGISLATION to bring down the cost of remittances sent by overseas Filipino workers (OFWs) will be the House Committee on Overseas Workers Affairs’ priority, the panel’s chairman said on Tuesday.

Committee members aim to draft measures “that will support the efforts of the government in lowering the remittance charges (on) OFW funds,” KABAYAN Party-list Representative Ron P. Salo said in a statement.

Last week, the committee considered various bills calling for OFW protections and reduced remittance costs.

The Bangko Sentral ng Pilipinas estimates remittances at $2.72 billion in August, against $2.60 billion a year earlier.

The total for 2021 sent through banks was $31.418 billion, he said, which is “expected to further increase this year.” — Matthew Carl L. Montecillo

High fuel prices seen dampening fisheries output in fourth quarter

PHILSTAR

FISHERIES production in the fourth quarter is expected to suffer due to high fuel prices, which prevented many fisherfolk from heading out to sea, an association of small fishermen said.

The Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) said in a statement on Tuesday that its members are also taking on other jobs because of their inability to operate their boats.

It cited “ever-rising production costs, in which 80% goes to fuel expenses alone.”

Oil companies implemented price hikes on Tuesday, with the price of gasoline raised by P0.80 per liter, diesel P2.70, and kerosene P2.90.

The group asked the government to address inflation via price controls, a freeze on the excise tax on fuel products, and fuel subsidies to the marginalized.

“As the Agriculture Secretary, President Ferdinand R. Marcos, Jr. has a lot of responsibility (for) the continued decline of agricultural and fishery production due to neglect (in addressing) the rising price of fuel and other commodities,” PAMALAKAYA spokesman Ronnel S. Arambulo said.

The Philippine Statistics Authority estimates that fisheries output dropped 3.4% to 4.25 million metric tons in 2021. — Revin Mikhael D. Ochave

Philippine Justice chief rejects resignation calls

JUSTICE SECRETARY JESUS CRISPIN REMULLA — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINES’ Justice chief on Tuesday rejected calls for his resignation after police arrested his son for drug possession last week.

“It will not happen,” Justice Secretary Jesus Crispin C. Remulla told a news briefing after coming home from a working visit to Geneva. “I will not comment anymore on the other issues there, but it will not happen.”

Officials of the Philippine Drug Enforcement Agency (PDEA) on Oct. 11 arrested Mr. Remulla’s son Juanito Jose for possession of high-grade marijuana worth about P1.3 million.

He is facing a charge of illegal drug possession before a Las Piñas court, while another complaint for illegal drug imports will undergo preliminary investigation before the Pasay City Prosecutor’s Office.

PDEA Director Derrick Arnold C. Carreon earlier said the younger Mr. Remulla was the lone suspect in the anti-illegal drug operation conducted in Las Piñas City near the Philippine capital.

The Justice chief said he would not interfere in his son’s case.

The arrest prompted calls for Mr. Remulla’s resignation, even among some lawmakers who questioned how an impartial probe could be done by prosecutors under the watch of the Justice department.

Mr. Remulla said quitting is not his decision to make.

“That is not my call. I am a very honorable person when it comes to this. It’s the president’s call,” he said, referring to President Ferdinand R. Marcos, Jr.

“And if I feel later on that I’m not anymore effective in this position, then I will talk to the president about what has to be done in the future.”

Mr. Marcos has also rejected calls for his Justice secretary to quit, saying he hasn’t done anything wrong.

“The moment I arrived, I called him immediately when I landed,” Mr. Remulla said. “He just said he commiserates with my plight as a parent, that’s all.”  “And he said ‘Just go back to work because we need you.’”

Mr. Remulla said he had yet to talk to his 38-year-old son. “I’ve stayed away from the case. I have not talked to anybody. I have not asked anybody any favor. I just talked to a cousin of mine who’s a lawyer, who will start or has started representing him already.”

The Justice chief also said he would not talk to Prosecutor General Benedicto A. Malcontento about his son’s drug case. He also said he would not entertain any appeals from his son’s lawyers, adding that the case would probably go straight to the courts.

“I know it’s not only me on trial here. It’s my son on trial, it’s the country on trial in some ways. It’s par for the course. It happens,” he said.

Mr. Remulla spent touted the success of his Geneva trip, where he met with United Nations officials on the Philippines’ human rights situation. He called the trip productive, citing the UN’s decision not to take action on the Southeast Asian nation.

The UN Human Rights Council ended its 51st session in Geneva on Oct. 7 without taking action on the Philippines, despite dire expressions of concern from the UN human rights office, civil society organizations and families of victims of abuses.

The council dealt victims of human rights violations in the Philippines a serious blow by failing to pass a resolution that would ensure continued scrutiny of the country’s rights situation, Human Rights Watch said this month.

The 2020 Human Rights Council resolution on the Philippines required the UN Office of the High Commissioner for Human Rights to monitor and report on the Philippine rights situation through 2022.

A September report by the high commissioner’s office highlighted prevailing rights violations and recommended continued monitoring and reporting to the council.

But council member states and donor countries that supported the 2020 resolution and the ensuing Philippine-UN Joint Program did not press for a 2022 resolution, Human Rights Watch said.

Meanwhile, Mr. Remulla said his agency aims to build new prisons in the countryside in the next three to four years to ease jail congestion.

“There is a need to humanize our prisoners and to treat inmates as people, not just a number out of 39,000,” he said. “We also have about 318 names of prisoners lined up with the executive secretary for executive clemency.”

He earlier said the national penitentiary, which was designed to house 6,000 prisoners, had 17,000 inmates.

The DoJ also plans to relocate the national penitentiary’s minimum security facility to Nueva Ecija in northern Philippines.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making them the most overcrowded prison system in the world, according to the World Prison Brief.

Many of the country’s jails fail to meet the minimum United Nations standards given inadequate food, poor nutrition and unsanitary conditions, according to Human Rights Watch (HRW). — Norman P. Aquino and John Victor D. Ordoñez

Palace: Oct. 31 will be a special nonworking day to boost tourism

BW FILE PHOTO/ KOALA CRUZ

PRESIDENT Ferdinand R. Marcos, Jr. has issued a proclamation making the eve of All Saints’ Day, Oct. 31, a special nonworking holiday, according to the presidential palace. 

The president issued the order so Filipinos can spend more time with their families and boost local tourism, Acting Press Secretary Cheloy Velicaria-Garafil told a news briefing.

All Saints’ Day on Nov. 1, which falls on a Tuesday, is also a special nonworking day. 

The “no work, no pay” policy covers special non-working holidays unless there are company rules or agreements “granting payment on a special day,” according to a Labor department order.

Employees asked to work on a special nonworking day should be paid 30% more of their daily pay for the first eight hours of work. Workers who work overtime should receive 30% more of their hourly rate.

On the other hand, workers who don’t work on regular holidays get paid. Those who work are paid 200% of their regular rate.

Only people from middle to upper classes will go out and enjoy tourism activities, said Jairus D. Espiritu, who teaches philosophy at the Mapua University.

“Those who live from paycheck to paycheck would likely stay home,” he said in a Facebook Messenger chat.

The Marcos government prioritizes the growth of the tourism sector along with manufacturing, agriculture, outsourcing, and creative industries, Socioeconomic Planning Secretary Arsenio S. Balisacan separately told a news briefing.

The tourism sector accounted for 12.8% of the Philippines’ economic output in 2019, or about P2.48 trillion.

Tourism’s contribution to the country’s economy fell to 5.2% last year after a global coronavirus pandemic forced many countries to close their borders.

Mr. Balisacan said recession in developed economies and the Philippines’ economic partners means weaker tourism demand, as well as exports and investment.

Mr. Marcos, 65, said in his first address to Congress in July he would boost tourism by improving roads and ports to give people easier access to tourism spots.

Earlier this month, his office said the Transport department would develop Philippine ports to boost the country’s cruise tourism.

The Philippines is known for its beautiful beaches and mountains, as well as its hospitable citizens. — Kyle Aristophere T. Atienza

Philippines logs 1st cases of Omicron subvariant XBB and XBC variant

Commuters pass through a walkway in Recto, Manila, Aug. 25. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINES has logged its first cases of the Omicron subvariant XBB and the XBC variant, the Department of Health (DoH) said on Tuesday.

The country detected 81 cases of the new XBB subvariant and 193 cases of the XBC variant, which is said to be a recombinant of the Delta and BA.2 variants, Health office-in-charge Maria Rosario S. Vergeire told a news briefing.

She said the 81 XBB cases were detected in two regions in the country.

Seventy of the XBB patients have recovered, eight were still isolated, while the remaining three patients were still being verified.

Ms. Vergeire said the 193 XBC cases were detected in 11 regions.

She said 176 of the patients have recovered, three were still isolated and five have died. The remaining nine patients were being verified.

The Omicron XBB subvariant has been the primary cause of fresh spikes in infections in Singapore, Ms. Vergeire said. The Singapore Ministry of Health had said there was no sufficient evidence that the sublineage causes a more severe illness, she added.

Evidence “does not suggest any differences in disease and/or clinical manifestations” between the XBB subvariant and the original Omicron variant, Ms. Vergeire said, citing the US Centers for Disease Control and Prevention.

“The XBC variant is under monitoring and investigation as classified by the United Kingdom Health Security Agency,” she said. Other global health agencies such as the World Health Organization and European Centers for Disease and Control have yet to determine the variant’s risks. — Kyle Aristophere T. Atienza

Sandiganbayan junks graft charges vs ex-TRC officials

PHILSTAR FILE PHOTO

THE PHILIPPINES’ anti-graft court has junked graft charges against former officials of the defunct Technology and Resource Center (TRC) over the release of more than P20 million to a group owned by a lawmaker.

In a 51-page decision dated Oct. 14, the Sandiganbayan Second Division said government prosecutors had failed to prove the guilt of former TRC Deputy Director General Dennis L. Cunanan and Manager Francisco B. Figura.

The two were accused of releasing P20 million of congressional funds from an Isabela congressman to the Aksyon Makamasa Foundation, Inc., owned by the lawmaker. The court said the officials had also expressed doubt about the fund release.

“Even as Cunanan had been a signatory as then deputy director general in the two disbursement vouchers involving the priority development assistant fund (PDAF), he had unequivocally indicated his misgivings on the process of implementation, through the attention of group Manager Figura,” it said.

The TRC, formerly known as the Technology and Livelihood Resources Center, was dissolved in 2014, according to a 2017 memo by the Department of Science and Technology.

The malversation charges against the former officials were also dropped for lack of evidence.

“Accused Figura and Cunanan are properly entitled to exculpation in light of the misgiving and protestation they timely raised with respect to the PDAF transactions.”

In August, the court rejected a plea by businesswoman Janet Lim-Napoles, the so-called mastermind of the PDAF scam, to suspend malversation cases against her.

She is under trial in a separate graft case involving the release of congressional funds worth P15 million for a nonexistent livelihood project in Nueva Ecija province.

The PDAF allowed legislators to fund small-scale projects in their districts that fell outside the national infrastructure program and was voided by the Supreme Court in 2013 for being illegal. — John Victor D. Ordoñez