Indonesia in talks with WHO to become global vaccine hub — minister

September 16, 2021 | 3:01 pm

JAKARTA — Indonesia is in talks with the World Health Organization (WHO) as well as six drug companies to become a global hub for manufacturing vaccines, its health minister told Reuters.

Detailing the ambitious strategy for the first time, Budi Gunadi Sadikin said in an interview that Indonesia would kickstart the initiative by prioritizing purchases of coronavirus disease 2019 (COVID-19) vaccines from companies that shared technology and set up facilities in Indonesia.

“We are working with the WHO to be one of the global manufacturing hubs for mRNA,” he said, adding he had directly lobbied WHO Director-General Tedros Adhanom Ghebreyesus on a trip earlier this month to Europe.

“The WHO has pointed to South Africa as the first location, and I said that logically Indonesia should be the second.”

The new “technology transfer hubs” are part of a WHO strategy to more widely distribute vaccine production globally and build capacity in developing countries to make new generation vaccines like Moderna and Pfizer’s nucleic acid-based mRNA jabs which can be quickly adapted to handle new virus variants.

Efforts to develop a base for COVID-19 vaccine production in South Africa will focus on trying to replicate Moderna’s shot, but a lack of progress in talks with the US company mean the project will take time, a senior WHO official told Reuters.

Mr. Budi said Indonesia was keen to build expertise in mRNA vaccines, as well as viral vector shots such as those produced by AstraZeneca.

A WHO spokesperson said Indonesia was one of 25 low- and middle-income countries to express interest in hosting a vaccine hub but declined to say if it was a leading candidate.

Mr. Budi said Indonesia was well-placed to export vaccines around the world, especially as it is the world’s most populous Muslim-majority country and could guarantee that its jabs were halal, or permissible according to Islam.

Indonesia has grappled with one of the most severe outbreaks of COVID-19 in Asia and has recorded more than 4.1 million infections and 139,000 deaths, although public health experts say the true figures are likely several times higher.

Indonesia’s rate of infections and deaths has declined sharply in recent weeks but, with only 25 per cent of its target population of 208 million people fully inoculated against COVID-19, it still has a major vaccination effort ahead, especially as it likely will have to provide third booster shots.

Mr. Budi said Indonesian pharmaceutical companies are in discussions with vaccine manufacturers and developers Anhui, Walvax, Sinovac, Genexine, Arcturus Therapeutics and Novavax. The talks range from basic “fill and finish” to upstream production and research and development, he added.

“We open the same opportunities also to AstraZeneca. We are also open to the existing partner Pfizer,” he said. “We are open to anyone.”

Bambang Heriyanto, corporate secretary of Bio Farma, Indonesia’s largest state-owned drug company, confirmed the talks were on and the first step was to collaborate on the transfer of technology. It would take two or three years to build a fully operational production facility, he said.

Mr. Budi said Indonesia would use its leadership of the G-20 group of countries starting in December to promote global health security and prepare for the next pandemic after the coronavirus, also known as SARS-CoV-2.

“No one can guarantee that SARS-CoV-3 and 4 will not come.” — Tom Allard and Kate Lamb/Reuters

Australia to get US nuclear submarine technology as China looms large

September 16, 2021 | 2:45 pm

Columbia-class_ballistic_missile_submarine — US Navy illustration

WASHINGTON/CANBERRA — The United States, Britain, and Australia said on Wednesday they would establish a security partnership for the Indo-Pacific that will involve helping Canberra acquire nuclear-powered submarines, as Chinese influence over the region grows.

Under the partnership, announced by President Joseph R. Biden, Jr., British Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison, the United States and Britain will provide Australia with the technology and capability to deploy nuclear-powered submarines.

In a three-way virtual announcement from each of their capitals, the leaders stressed Australia will not be fielding nuclear weapons but using nuclear propulsion systems for the vessels, to guard against future threats.

“We all recognize the imperative of ensuring peace and stability in the Indo-Pacific over the long term,” said Mr. Biden.

“We need to be able to address both the current strategic environment in the region, and how it may evolve because the future of each of our nations and indeed the world depends on a free and open Indo-Pacific enduring and flourishing in the decades ahead,” he said.

Mr. Morrison said the submarines would be built in Adelaide in South Australia state, in close cooperation with the United States and Britain.

“We will continue to meet all our nuclear non-proliferation obligations,” he said.

Mr. Johnson called it a momentous decision for Australia to acquire the technology. He said it would make the world safer.

EYES ON CHINA
Washington and its allies are looking for ways to push back against China’s growing power and influence, particularly its military buildup, pressure on Taiwan and deployments in the contested South China Sea.

The three leaders did not mention China and senior Biden administration officials who briefed reporters ahead of the announcement said the move was not aimed at countering Beijing.

China’s Washington embassy reacted, however, by saying that countries “should not build exclusionary blocs targeting or harming the interests of third parties.”

“In particular, they should shake off their Cold-War mentality and ideological prejudice,” it said.

James Clapper, a former director of US national intelligence, told CNN it was a bold step by Australia given its economy’s dependence on China, adding: “Clearly the Chinese will view this as provocative.”

Republican Senator Ben Sasse said the agreement “sends a clear message of strength to Chairman Xi.”

“I’ll always applaud concrete steps to counter Beijing and this is one of them,” he said.

A US official briefing before the announcement said Mr. Biden had not mentioned the plans “in any specific terms” to Chinese leader Xi Jinping in a call last Thursday, but did “underscore our determination to play a strong role in the Indo-Pacific.”

US officials said nuclear propulsion would allow the Australian navy to operate more quietly, for longer periods, and provide deterrence across the Indo-Pacific.

The officials said the partnership, dubbed AUKUS, would also involve cooperation in areas including artificial intelligence and quantum technology.

The partnership ends Australia’s 2016 deal French shipbuilder Naval Group to build it a new submarine fleet worth $40 billion to replace its more than two-decades-old Collins submarines, a spokesperson for Mr. Morrison told Reuters.

The deal with France for 12 diesel submarines, then one of the world’s most lucrative defense deals, was beset by issues and delays due to Canberra’s requirement that the majority of the manufacturing and components be sourced locally.

Australia in June said it was undertaking “contingency planning” as its fleet of Collins-class submarines approach the end of its lifespan.

Mr. Biden said the governments would now launch an 18-month consultation period, “to determine every element of this program, from workforce, to training requirements, to production timelines” and to ensure full compliance with non-proliferation commitments.

The pact should be a boon for the US defense industry and among the firms that could benefit are General Dynamics Corp and Huntington Ingalls Industries Inc.

General Dynamics’ Electric Boat business does much of the design work for US submarines, but critical subsystems such as electronics and nuclear power plants are made by BWX Technologies Inc

Britain said the 18-month program would work out details as to what countries and companies would do what, with the aim for the first submarine to be delivered as quickly as possible.

US officials did not give a time frame for when Australia would deploy a nuclear-powered submarine, or how many would be built. They said that since Australia does not have any nuclear infrastructure, it would require a sustained effort over years.

ONE-OFF TECHNOLOGY SWAP
One US official said the announcement was the result of several months of engagements among respective military commands and political leaderships, during which Britain — which recently sent an aircraft carrier to Asia – had indicated it wanted to do more in the region.

“What we’ve heard in all those conversations is a desire for Great Britain to substantially step up its game in the Indo-Pacific,” the official said, noting its historical ties to Asia.

The US official said Washington had shared nuclear propulsion technology only once before — with Britain in 1958 — and added: “This technology is extremely sensitive. This is frankly an exception to our policy in many respects, I do not anticipate that this will be undertaken in other circumstances going forward. We view this as a one-off.”

The move was being taken as part of “a larger constellation of steps” in the region, he said, including stronger bilateral partnerships with long-term allies Japan, South Korea, Thailand and the Philippines, and stronger engagements with new partners like India and Vietnam.

The announcement comes just over a week before Biden is to host a first in-person meeting of leaders of the “Quad” group of countries — Australia, India, Japan and the United States — that Washington sees as a key means to stand up to China. — Trevor Hunnicutt, Nandita Bose, David Brunnstrom, and Colin Packham/Reuters

UNICEF calls for schools to reopen in pandemic-hit nations

September 16, 2021 | 1:47 pm

MANILA — The United Nations children’s agency UNICEF has urged education authorities to reopen schools as soon as possible in countries where millions of students are still not allowed to return to classrooms 18 months into the coronavirus disease 2019 (COVID-19) pandemic.

Schools in around 17 countries remain fully closed, while those in 39 countries remain partially closed, according to a report released by UNICEF on Thursday.

Among those “almost completely closed” are schools usually attended by nearly 77 million students in the Philippines, Bangladesh, Venezuela, Saudi Arabia, Panama, and Kuwait.

Nearly a third of this figure is accounted for by the Philippines, which is fighting one of Asia’s worst coronavirus outbreaks and where a new school year started this week.

Pupils from the six countries represent more than half of the 131 million students worldwide that have missed more than three-quarters of their in-person learning, UNICEF said.

“The education crisis is still here, and with each passing day that classrooms remain dark, the devastation worsens,” said UNICEF Executive Director Henrietta Fore.

The report said teachers should be prioritized for COVID-19 vaccines, after health workers and those most at risk, to protect them from community transmission.

Students may be safer at home, but the availability of computers, mobile phones and internet, and the uneven quality of education, are among challenges they continue to face.

In the Philippines, some children have been forced to climb onto roofs just to get an internet signal.

In June, President Rodrigo R. Duterte rejected a proposal to allow face-to-face classes to resume in some areas, saying: “I cannot gamble on the health of the children.”

In a report released in April, the Asian Development Bank estimated school closures lasting more than a year could slash future earnings among the region’s students by as much as $1.25 trillion, or equivalent to 5.4% of GDP in 2020.

UNICEF and its partners will shut down their digital channels for 18 hours on Thursday to draw attention to the crisis and the “18 months of lost learning.”

“This is a crisis we will not allow the world to ignore,” UNICEF’s Ms. Fore said. “Our channels are silent, but our message is loud: Every community, everywhere must reopen schools as soon as possible.” — Reuters

Moderna says COVID-19 vaccine protection wanes, makes case for booster

September 16, 2021 | 1:42 pm

CHICAGO — New data from Moderna Inc.’s large coronavirus disease 2019 (COVID-19) vaccine trial shows that the protection it offers wanes over time, supporting the case for booster doses, the company said in a news release on Wednesday.

“This is only one estimate, but we do believe this means as you look toward the fall and winter, at minimum we expect the estimated impact of waning immunity would be 600,000 additional cases of COVID-19,” Moderna President Stephen Hoge said on a conference call with investors.

Mr. Hoge did not project how many of the cases would be severe, but said some would require hospitalization.

The data stands in stark contrast with data from several recent studies that suggested Moderna’s vaccine protection lasts longer than a similar shot from Pfizer Inc. and German partner BioNTech SE.

Experts said the difference is likely due to Moderna’s higher dose of messenger RNA (mRNA) and the slightly longer interval between the first and second shots.

Both vaccines proved to be exceedingly effective at preventing illness in their large Phase III studies.

Wednesday’s analysis, however, showed higher rates of infection among people vaccinated roughly 13 months ago compared with those vaccinated roughly eight months ago. The study period was from July–August, when Delta was the predominant strain. It has yet to undergo peer review.

Moderna on Sept. 1 submitted its application to the US Food and Drug Administration seeking authorization for a booster shot.

Mr. Hoge said data from its booster studies shows the vaccine could increase neutralizing antibodies to levels even higher than were seen after the second dose.

“We believe this will reduce COVID-19 cases,” he said. “We also believe that a third dose of mRNA-1273 has a chance of significantly extending immunity throughout much of next year as we attempt to end the pandemic.”

Briefing documents from the FDA’s analysis of Pfizer’s booster application, released earlier on Wednesday, suggest that a key issue the agency will consider is whether vaccine protection is waning.

In its analysis, Moderna compared the vaccine’s performance in more than 14,000 volunteers vaccinated between July and October of 2020 with some 11,000 volunteers originally in the placebo group who were offered the shot between December 2020 and March 2022 following its U.S. emergency use authorization.

In the two-month period from July–August, researchers identified 88 COVID-19 cases among those who got the two shots more recently, compared with 162 cases among those vaccinated last year. Overall, only 19 cases were considered severe, a key benchmark in assessing waning protection.

Moderna said there was a trend toward a lower rate of severe cases among the more recently vaccinated, although the finding was not statistically significant.

Data from a separate study presented on Wednesday conducted with Kaiser Permanente Southern California health system, meanwhile, shows that Moderna’s vaccine continued to perform well against the Delta variant.

Researchers compared data on more than 352,000 people who got two doses of the Moderna vaccine with the same number of unvaccinated individuals and found the Moderna vaccine was 87% effective at preventing a COVID-19 diagnosis, and 96% effective at preventing hospitalization.

Hoge said the vaccine’s initial performance is strong, but argued that protection shouldn’t be allowed to wane.

“The first six months are great, but you can’t count on that being stable out to a year and beyond,” he said. — Julie Steenhuysen/Reuters

Billions blown as Macau casino investors fold amid gambling review

September 16, 2021 | 12:34 pm

HONG KONG — Shares of Macau casino operators on Wednesday shed as much as a third of their value, losing about $18 billion, as the government kicked off a regulatory overhaul that could see its officials supervising companies in the world’s largest gambling hub.

With Macau’s lucrative casino licenses up for rebidding next year, the plan spooked a Hong Kong market already deep in the red after Beijing’s regulatory crackdown on sectors from technology to education and property that sliced hundreds of billions of dollars off asset values.

Wynn Macau led the plunge, falling as much as 34% to a record low, followed by a 28% tumble for Sands China. Peers MGM China, Galaxy Entertainment, SJM and Melco Entertainment all fell heavily, taking the drop to HK$143 billion ($18 billion).

US casino companies also fell for the second straight day, losing as much as $4 billion in market capitalization on Wednesday, with Las Vegas Sands Corp slumping to more than a year low, Wynn Resorts Ltd and MGM Resorts International, dropping 8% and 5%, respectively.

The slump came after Lei Wai Nong, Macau’s secretary for economy and finance, gave notice on Tuesday of a 45-day consultation period on the gambling industry to begin from the following day, pointing to deficiencies in industry supervision.

Beijing, increasingly wary of Macau’s acute reliance on gambling, has not yet said how the license rebidding process will be judged.

“Margins will be crushed at the gambling capital of the world and that will drag down all the big casinos,” said Edward Moya, senior market analyst at OANDA in New York.

Some Hong Kong stock analysts wasted little time in downgrading their view of near-term prospects for casino operators in the Chinese special administrative region, who must all rebid for licenses when current permits expire in June 2022.

J.P. Morgan is downgrading to neutral or underweight all Macau gaming names from overweight, because of the tougher scrutiny on capital management and daily operations ahead of license renewals, said analyst D.S. Kim.

“We admit it’s only a ‘directional’ signal, while the level of actual regulation or execution still remains a moot point,” he said, adding the news would have already put doubt in investors’ minds.

Brokerage CFRA downgraded Wynn Resorts to “Strong Sell” from “Buy,” citing heightened regulatory risks and said the review was a major overhang for the company as well as other operators.

TIGHTER REGULATION

At a news briefing on Tuesday, Mr. Lei detailed nine areas for the consultation, such as the number of licenses, better regulation and employee welfare, as well as having government representatives to supervise daily casino operations.

The government also plans to increase voting shares in gaming concessionaires for permanent residents of Macau, as well as more rules on transfer and distribution of profits to shareholders.

Discussions over the future of Macau’s casino licenses come amid rocky US-China relations, leaving some investors fearing an edge for domestic players over US-based casino operators.

The government has not singled out any US players, but companies have moved to beef up the presence of Chinese or local executives as they position themselves more as Macau operators than foreign one.

Before license expiry, operators have tried to strengthen corporate responsibility and diversify into non-gaming offerings to placate Beijing, which fears over-reliance on gambling.

Macau has boosted scrutiny of casinos in recent years, clamping down on illicit capital flows from mainland China and targeting underground lending and illegal cash transfers.

Beijing has also stepped up a war on cross-border flows of funds for gambling, hitting the funding of Macau’s junket operators and their VIP customers.

In June, Macau more than doubled the number of gaming inspectors and restructured departments to boost supervision.

George Choi, a Citigroup analyst in Hong Kong, said while the public consultation document gave few details, the suggested changes benefit long-term sustainable growth, with “positive implications on the six casino operators.”

However, he cautioned, “We will not be surprised if the market focuses only on the potentially negative implications, given the weak investor sentiment.”

The consultation comes as Macau has struggled with a dearth of travelers because of coronavirus curbs since the start of 2020. While gambling revenues have picked up in recent months, they remain less than half of 2019 monthly figures. — Farah Master and Donny Kwok/Reuters

Globe holds national conference on digital learning to culminate National Teachers’ Month and World Teachers’ Day

September 16, 2021 | 12:25 pm

Another school year of online distance learning awaits learners and educators as the country continues to cope with the lingering impact of the pandemic.

Since the sudden shift from traditional to remote learning last year, the educational sectors are still struggling to keep up with the demands of digital learning. While some are privileged enough to have a strong support system and technology at their disposal, other students remain lacking, and this gravely affects the quality of education the students are receiving.

However, the passion and dedication of educators and institutions to provide the best learning solutions keep on burning.

In celebration of National Teachers’ Month and World Teachers’ Day, Globe will hold “Forefront: The 2021 National Conference on Digital Learning” on October 1, Friday, from 8 A.M. to 12 noon. The event will be live-streamed on the Globe Business Facebook page (facebook.com/globemybusiness).

Attendees of the conference will be grouped into breakout rooms to attend parallel sessions and listen to speakers from various academic disciplines.

Mark Arthur Abalos, Globe’s Segment Head for Education mentioned that invited speakers will discuss subjects ranging from technology integration across the curriculum such as virtual laboratories, digital libraries, e-tutoring, educational software, adaptation to new technologies, and more. Attendees will also be graced with the presence of technology leaders of different learning management systems like D2L Brightspace LMS, ClassIn, Google for Education, and Microsoft.

Thus, Globe encourages administrators, educators, policymakers, and teachers to participate in the conference, following the theme, “Transformative Online Pedagogies: Reimagining Education for Better Tomorrows”.

“Forefront aims to celebrate the ceaseless determination of educators and institutions to make learning possible for all, especially in this crisis, and to provide a venue to tackle new issues and solutions that have risen from the past year’s remote learning system,” Abalos said.

Educators and institutions from all over the country will come together to share their views regarding the current learning setup and how the continuous integration of technology in digital learning can transform the quality of Philippine education, all the while providing equal access for all Filipinos.

To register, log on to https://glbe.co/Forefront2021.

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ICC opens probe of Duterte’s drug war

September 16, 2021 | 9:49 am

The International Criminal Court (ICC) has ordered an investigation of Philippine President Rodrigo R. Duterte’s crackdown on illegal drugs that has killed thousands, as it found “reasonable basis” that crimes against humanity had been committed.

In a statement, the Hague-based tribunal’s pre-trial chamber said the government’s anti-narcotic drive “cannot be seen as a legitimate law enforcement operation, and the killings neither as legitimate nor as mere excesses in an otherwise legitimate operation.”

The court said its judges considered evidence presented on behalf of more than 200 victims, and found that a “widespread and systematic attack against the civilian population took place pursuant to or in furtherance of a state policy.”

The court will also probe vigilante-style killings in Davao City when Mr. Duterte was still its vice mayor and mayor. The tough-talking leader, who is barred by law from running for reelection, has less than a year before his six-year term ends.

Former ICC prosecutor Fatou Bensouda sought the investigation before she retired in June, alleging that “state actors, primarily members of the Philippine security forces, killed thousands of suspected drug users and other civilians during official law enforcement operations.”

Philippine-based human rights group Karapatan said the ICC pre-trial chamber’s view that the attacks were widespread and systematic reaffirms the views of victims and their families.

“Duterte and his cohorts should be made accountable for these crimes,” it said in an e-mailed statement.

Presidential spokesman Herminio L. Roque, Jr., had said the Philippines would not cooperate with the ICC probe because it lost jurisdiction of the case after the country broke ties with the tribunal in 2019.

In June, Mr. Duterte said his government would not give full access to records of its war against illegal drugs and insurgency, citing national security concerns.

The ICC has said the withdrawal would not affect its investigation.

Tens of thousands of drug suspects have died in police anti-drug operations, many of them allegedly killed after resisting arrest, according to the United Nations.

In 2018, Mr. Duterte said extrajudicial murders happened under his administration’s drug war. The Philippine Commission on Human Rights has said the state was violating human rights for failing to stop police abuse.

At least 122 children were killed in the government’s deadly drug war between July 2016 and December 2019, according to the World Organization Against Torture.

Judges Peter Kovacs, Reine Adelaide Sophie Alapini-Gansou and María del Socorro Flores Liera signed the ICC order to investigate. — Kyle Aristophere T. Atienza

International court backs probe into Philippines’ ‘war on drugs’

September 16, 2021 | 9:46 am

caloocan-drugs05 — Photo by Miguel Antonio N. De Guzman

AMSTERDAM – Judges at the International Criminal Court on Wednesday approved a formal investigation into possible crimes against humanity allegedly committed under the leadership of Philippine President Rodrigo Duterte in the context of his “war on drugs”.

The ICC said in a statement that judges had approved a request by prosecutors to begin the investigation into potential murder as a crime against humanity.

Judges’ assessment of material presented by prosecutors, was that “the so-called ‘war on drugs’ campaign cannot be seen as a legitimate law enforcement operation”, but rather amounted to a systematic attack on civilians.

Human rights groups accuse Duterte of inciting deadly violence and say police have murdered unarmed drug suspects on a massive scale as part of the campaign. Police deny this, and Duterte says the police are under orders to kill only in self-defense. The government in Manila could not immediately be reached for a reaction late on Wednesday.

Philippines rights group Karapatan said the court’s comments “reaffirms the views of victims and their families.”

“Duterte and his cohorts should be made accountable for these crimes,” it said after the ICC decision.

In a July speech, Duterte lashed out at the court, saying he would continue his fight against drugs. “I have never denied (it), and the ICC can record it: Those who destroy my country – I will kill you,” he said.

Although the Philippines has withdrawn from membership of the ICC, it was a member between July 2016 and March 2019, the period covered by the prospective investigation.

The judges said that relevant crimes appeared to have continued after that date, but that the court was limited to investigating those suspected to have occurred while the Philippines was a member. — Reuters

Towards a more equitable and sustainable Philippines

September 16, 2021 | 8:00 am

OL-RCBC_AC-Energy---405-MW-Ninh-Thuan-Solar-Farm,-Vietnam — 405-megawatt solar project of Ayala-led AC Energy in partnership with the BIM Group in Vietnam. RCBC is the sole lender of this project. It is one of the largest solar farms in Southeast Asia.

Sustainable finance is positively influencing society in the Philippines. A recent bond issuance exemplifies its potential to create habitats that will prosper for generations.

When addressing the United Nations General Assembly in late-September 2020, President Rodrigo Duterte called for the world to tackle the climate crisis with the same urgency used to fight COVID-19, asserting it had widened social inequality and compounded the effects of the pandemic.

According to a report published that same month, more than 70% of micro, small and medium enterprises (MSMEs) in the Philippines were forced to close a month after the outbreak. MSMEs are the backbone of the Philippine economy, employing almost two-thirds of the country’s workforce, and accounting for 99% of businesses nationwide.

Months after, unemployment reached a 15-year high, while healthcare facilities were overrun, due to surging cases of COVID-19.

“The global pandemic has deepened poverty, tested weak healthcare systems, and exposed the need to bridge the digital divide,” notes Eugene S. Acevedo, President and Chief Executive Officer of Rizal Commercial Banking Corporation (RCBC). Financial support from banks like RCBC would prove critical in helping businesses and society cope with the fallout from the pandemic.

A greener archipelago
Prior to the pandemic, the Philippines had become a leader in renewable energy. The country ratified the Paris Agreement in 2017, committing to reductions in greenhouse gas emissions of 70% by 2030. The Philippine government has since boosted this commitment to 75% by the same date.

Various financing initiatives were highly effective in driving the nation’s sustainability agenda. For instance, in 2018, the ASEAN Sustainability Bond Standards were launched; the standards assure investors that bond proceeds are channelled into genuinely green projects and social initiatives. RCBC issued the country’s first ASEAN Sustainability Bond a year later.

In early-2020, the nation’s central bank, Bangko Sentral ng Pilipinas, rolled out the country’s Sustainable Financial Framework. The framework mandates banks to embed sustainability principles into their operations, while supporting businesses and projects that benefit the environment and society. For example, by December 2020 about PHP152 billion (US$3 billion) of green bonds had been issued nationally, financing more than 70 projects across low-carbon transport, renewable energy, and sustainable water and waste management.

Yet those excited by the nation’s advances in sustainability planning feared a slowdown due to the worsening COVID-19 crisis. Could the country continue its promising journey, even amid a global pandemic?

Keep solving problems
The leadership at RCBC firmly believed that it could. As did their peers at Standard Chartered Philippines, a close partner of RCBC and a co-financier of numerous sustainability projects. Together, the two banks remained committed to financing these, despite the intensity of the global health scare.

“The pandemic heightened awareness on the impact that social vulnerabilities can have on our customers and our business,” explains Acevedo. “We realized that the long-term viability of the bank rests on how we solve society’s pressing problems, such as social inequality and vulnerability to climate change.”

At the time, RCBC’s treasury team was preparing to refinance a maturing bond. Given its commitment to upholding social and environmental responsibility, the bank planned an ASEAN Sustainability Peso Bond offering, the nation’s first sustainability-labeled transaction of 2021, with Standard Chartered Philippines acting as sole lead arranger and book runner.

The dual-tranche 2.5-year and 5.25-year bond offered fixed interest rates of 3.20% and 4.18%, respectively — attractive yields in today’s near-zero interest rate world. The bonds were to be offered with a minimum size of PHP3 billion (US$60 million), with proceeds to be directed towards addressing climate and societal challenges.

“Our collaboration with Standard Chartered helped us overcome market obstacles to successfully issue a six-times oversubscribed, record-sized ESG bond to financially support Philippine MSMEs and reinforce our commitment to the Government’s sustainability aspirations.”

— Eugene S. Acevedo
RCBC President and CEO

Further complications
Aside from the pandemic, other obstacles lie ahead. While 2020 was a record year with new bond issuances topping PHP388 billion (US$7.7 billion), early-2021 was somewhat muted due to the influx of supply from the previous year. Investor sentiment favored shorter-term issues, and volatility in the foreign exchange markets made local currency issuances less attractive to investors. The issuance of a three-year retail treasury bond by the Philippine government one month before RCBC’s offering threatened to further distract the market.

Making the environment more challenging, the nation imposed strict home quarantine measures during the deal’s execution, putting half of the Philippine population on lockdown and potentially dampening investor appetite.

Nonetheless, the team forged ahead. Robust market liquidity, combined with local investors’ search for higher-yielding products, resulted in a solid order book. The bank closed the books at PHP17.87 billion (US$350 million) — almost six times more than its minimum issue size.

“The issue was RCBC’s largest so far and eclipsed all our expectations,” enthuses Acevedo. “A good portion went into the 5.25-year bond. This speaks volumes about the investing public’s confidence not just in RCBC but in the banking system as a whole.”

Positive outcomes
Standard Chartered Philippines’ participation in the transaction was crucial. The bank’s experience in advising, structuring, executing and distributing issuances, coupled with a dedicated debt capital markets team, enabled RCBC to overcome market obstacles.

The bond proceeds refinanced RCBC’s sustainable lending portfolio, which supports projects with environmental benefits and those vital to society’s needs. Notably, the bank plans to provide financial support to Philippine MSMEs, in order to help generate employment and much-needed income to communities.

Such activities are in line with the sustainable finance frameworks of both RCBC and Standard Chartered, which prioritize capital raising and lending to sectors that benefit the environment and society. These range from renewable energy, green buildings, clean transportation, and pollution prevention and control — through to affordable housing, water provision, education and healthcare.

“The transaction demonstrated how Standard Chartered is truly ‘Here for Good’ by supporting issuances that will create positive outcomes for the environment and society,” says Lynette Ortiz, Chief Executive Officer, Standard Chartered Philippines.

“More than ever, it is crucial that we ensure social and economic development through our business, operations and communities,” she says. “With our broad range of banking capabilities and on-the-ground expertise, Standard Chartered is helping businesses and society to navigate through the current crisis with an aim to build a more equitable and sustainable Philippines.”

For more insights on ASEAN, please visit www.sc.com/asean-insights.

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Mount Elizabeth Hospital provides diverse medical expertise within reach of international patients

September 16, 2021 | 8:00 am

AHVC Doctor Group Photo(1) resized — Doctors from Asian Heart & Vascular Centre

In certain conditions, patients need or opt to get support from healthcare facilities in another country. Mount Elizabeth Hospital in Singapore aids its international patients, including from the Philippines, to access its services and experience its various medical expertise.

The process of going overseas can be a struggle at times, which could further concern the patients and the families and relatives looking after them. Mount Elizabeth Hospital understands and addresses this challenge by going the extra mile for its patients residing abroad through its Patient Assistance Center.

Operated by Parkway Hospitals Singapore, the Patient Assistance Center is an overseas office providing one-stop patient care to more than 20 cities around the world. The Philippine office is located at the Marco Polo Hotel in Ortigas Center, Pasig City.

The Patient Assistance Center serves Filipino patients and their families who need support in medical and travel arrangements, thus lessening their stress over the process of acquiring a healthcare service in another country.

Attending to these needs of patients and their families are the trained, dedicated, and warm staff of the Patient Assistance Center, who would assure their stress-free and comfortable journey.

Some of the one-stop concierge services of the Patient Assistance Center include medical referrals and appointment booking; evacuation and repatriation assistance; flight reservation; visa application and extension; accommodation arrangement; airport meet-and-greet service and domestic transfer arrangement; direct admission arrangement; assistance before, during, and after hospitalization; multi-language translation and interpreter service; hospital billing and financial inquiries.

Through the Patient Assistance Center in the Philippines, Filipinos can reach the world-class medical care and off-shore medical treatment that Mount Elizabeth Hospital could provide, which can also bring peace of mind for the patients.

Mount Elizabeth Hospital has been serving as a medical hub in the Asia-Pacific region for more than 40 years. It has received a Joint Commission International (JCI) accreditation, which indicates its gold seal of approval for quality healthcare.

The hospital houses up-to-date technologies and a diverse mix of skilled specialists across a wide variety of medical fields. One of its specialist clinics is the Asian Heart & Vascular Centre (AHVC).

The team at AHVC has cardiologists who hold experience in handling several cardiovascular diseases such as coronary artery disease, heart failure, cardiac arrhythmia and sudden cardiac death, heart valve problems (valvular heart disease), adult congenital heart disease, and sports cardiology.

Among them are Dr. Chan Wan Xian, a senior consultant, echocardiologist, and heart failure intensivist; Dr. Edgar Tay; and Dr. Stanley Chia, who are both senior consultant cardiologists and interventional cardiologists.

This multidisciplinary team of highly skilled doctors, along with the nurses and cardiac technicians, commits to serving patients with compassion, integrity, and professionalism.

The specialist heart center also collaborates among experts in different sub-specialties in managing conditions, whether simple or complex, to make the total patient care better with a focus on a holistic approach.

Offering a comprehensive range of cardiology services from prevention to diagnosis as well as treatment and rehabilitation, AHVC partners with patients with the determination to help them attain good health.

Parkway Patient Assistance Center in the Philippines is located at G/F, Marco Polo Hotel, Meralco Avenue and Sapphire Road, Ortigas Center, Pasig City. Contact their office at +63 917-526-7576, or e-mail manila.ph@parkwaypantai.com.

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Philippines raises $866M from maiden retail dollar bond offer

September 16, 2021 | 12:34 am

US dollar bills are seen in this photo illustration taken on Nov. 16, 2014. — REUTERS/MARCELO DEL POZO/FILE PHOTO

THE GOVERNMENT on Wednesday raised an initial $866.2 million from its maiden offering of retail dollar bonds (RDBs) targeted at individual investors.

The Bureau of the Treasury (BTr) awarded $551.8 million worth of five-year RDBs and another $314.4 million via the 10-year dollar-denominated notes during the price-setting auction on Wednesday.

The two-tranche offer attracted tenders of $607.8 million for the five-year bonds and $330.4 million for the 10-year bonds, exceeding the initial offer of $200 million for each tenor.

The five-year bonds, which mature in October 2026, had a coupon rate of 1.375%.

On the other hand, the 10-year bonds due in October 2031 fetched a 2.25% coupon rate.

The offer period runs until Oct. 1, unless shortened by the BTr. The RDBs are available at a minimum investment of $300 (P15,000), with increments of $100 thereafter.

The launch follows a series of recent promotional events aimed at Filipinos overseas, who remit home more than $2 billion in income every month.

Central bank Governor Benjamin E. Diokno said the issuance of dollar bonds will help promote bond market activity and boost foreign exchange inflows.

“Rest assured that there will be no impact on the US dollar-Philippine peso exchange rate if an investor withdraws from his foreign currency deposit account,” he said in a recorded message aired during launching ceremonies.

Following the auction, National Treasurer Rosalia V. de Leon told reporters the BTr was “happy” with the results of the maiden offering, with rates reflecting the performance of Republic of the Philippines (RoP) tenors, strong market liquidity, and the lingering concerns of the market over the timing of the US Federal Reserve in dialing back on its accommodative monetary policy.

She said the government is hoping the strong demand for RDBs will continue for the rest of its two-week offer period, especially from domestic small investors.

“[We] need two weeks since [there is a] need to throw the net far and wide to catch more,” Ms. De Leon said.

A bond trader said the rates fetched for the two bonds were attractive as they were higher than the prevailing market rates for dollar-denominated debt.

“If we compare the five-year ROP due 2026, that bond has an indicative offer of 1.086%, so that’s about 30 bps (basis points) lower than this new 5-year RTB. While when we look at the 10-year (due 2031), that bond’s indicative offer is at 1.82%, lower by 43 bps compared to the RDB 10-year with a coupon of 2.25%,” the trader said via Viber.

“We expect good follow-through demand during the offer period especially at a time where dollar deposit rates are close to zero,” the trader added.

The bonds will be settled on Oct. 8 and will be listed and traded on the Philippine Dealing and Exchange Corp.

These can be purchased through various online platforms such as the BTr’s online ordering facility, Bonds.PH mobile app, and the Overseas Filipino Bank mobile app.

The state-run Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines served as the joint lead issue managers for the issuance, along with BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., Standard Chartered Bank and UnionBank of the Philippines.

“We are inviting the investing public to support the BTr’s RDB offering to expand their portfolio and contribute directly to the government’s recovery and development agenda. Through LANDBANK’s online investment channels, individual investors worldwide can invest safely and conveniently in these bonds that offer relatively higher returns,” LANDBANK President and CEO Cecilia C. Borromeo said in a statement on Wednesday.

The government aims to raise P3 trillion this year from local and foreign sources to plug its budget deficit seen to hit 9.3% of overall economic output. — Beatrice M. Laforga and Reuters

Cash remittances reach seven-month high in July

September 16, 2021 | 12:33 am

By Luz Wendy T. Noble, Reporter

MONEY SENT HOME by overseas Filipino workers (OFWs) reached a seven-month high in July, reflecting the improved employment situation in major economies that have begun recovering from the coronavirus pandemic.

Cash remittances rose 2.5% to $2.853 billion in July from $2.783 billion a year earlier, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday.

July remittance inflows are at the highest level since the $2.89 billion in December 2020.

Cash remittances likewise increased 8.1% from the $2.638 billion in June.

“The increase in cash remittances was due to the growth in remittances from land-based workers and sea-based workers, which rose by 1.6% (to $2.308 billion from $2.273 billion) and 6.9% (to $545 million from $510 million), respectively,” the BSP said.

For the first seven months of 2021, cash remittances stood at $17.771 billion, up 5.8% from the $16.802 billion in the same period of 2020.

The BSP said remittances from OFWs in the United States, Malaysia, and South Korea helped boost the year-to-date tally.

By countries, the US is still the biggest remittance source, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, South Korea, Qatar, and Taiwan. Together, inflows from these countries made up 78.6% of the total for the period.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the remittance growth can be attributed to the improvement in the labor markets abroad as more economies reopened.

“It seems that a number of those who have been repatriated at the early part of the pandemic back in 2020 may have already returned and our OFWs are very aware of the need to send many back home probably for health support to family,” he said in an e-mail.

The “more favorable” exchange rate also helped boost remittance sent back home, alongside improving economic activities, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

The peso has been relatively weaker versus the dollar in the previous months, moving around the P49 to P50 range. At its close of P49.97 per dollar on July 30, the peso depreciated by 94.7 centavos or by 1.9% from its 48.023 finish on Dec. 29, 2020.

Meanwhile, personal remittances, which include inflows in kind, went up 2.6% to $3.167 billion from $3.085 billion in July 2020.

Year to date, personal remittances increased 6% to $19.783 billion from $18.658 billion in the same period of 2020.

Mr. Asuncion is bullish that remittances will remain resilient ahead of the holiday season.

On the other hand, Mr. Roces said the spread of the Delta variant poses risks to the outlook as the reimposition of lockdown measures may lead to more OFWs losing their jobs.

“But remittance inflows remain crucial, especially for recipient households and to the economy, in general, as it stands to get supported via consumption,” Mr. Roces said.

Remittance inflows support household spending, which makes up about 70% of the economy.

The BSP expects cash remittances to rebound with a 4% growth this year after declining by 0.8% in 2020.

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