Monkeypox in the US: Where could it spread next?

August 8, 2022 | 12:36 pm

CHICAGO — The United States declared monkeypox a public health emergency last week, an effort to bolster the US response to contain the outbreak.

The virus continues to be largely transmitted among gay and bisexual men, but experts say the disease could spill over into other populations, especially due to vaccine shortages. Monkeypox is spread by contact with puss-filled sores and is rarely fatal.

Here is the state of monkeypox now and some other the populations US experts believe may be at risk:

WHO IS GETTING MONKEYPOX NOW?

Last month, the World Health Organization declared monkeypox a global public health emergency. So far, 80 countries where the virus is not endemic have reported 26,500 cases of monkeypox, according to a Reuters tally.

In the United States, 99.1% of U.S. monkeypox cases occurred among those assigned the male sex at birth as of July 25, according to a technical report by the US Centers for Disease Control and Prevention (CDC). Among male patients, 99% reported having sexual contact with other men.

About 38% of cases occurred among white, non-Hispanic males. Another 26% were in Black males and 32% in Hispanic males.

The pattern of sexual transmission in men is not typical. In Africa, where monkeypox has been circulating since the 1970s, 60% of cases are in men, and 40% occur in women.

One reason may be that the virus appears to be “very efficiently transmitted through anal receptive intercourse and to some degree oral sex,” said Dr. Celine Gounder, an infectious disease epidemiologist and an editor-at-large at Kaiser Health News.

WHO ELSE IS AT RISK?

Although the current explosion of cases has occurred in men, experts say there is no biological reason the virus will remain largely within the community of men who have sex with men.

“We certainly know it’s going to spread to family members and to other non-male partners that people have,” said Dr. Jay Varma, director of the Cornell Center for Pandemic Prevention and Response. He said the virus could also spread through massage parlors or spas.

The real question, he said, is whether it spreads as efficiently in those groups as it does among close sexual networks of men who have sex with men.

Experts point to the way HIV spread as a possible indicator for where the virus will go next.

“My greatest fear is that as we try to contain this, it’s going to seep along the fractures in our social geography and go where HIV did, and that’s going into communities of color in the rural South,” said Dr. Gregg Gonsalves, an associate professor of epidemiology at Yale University and a leading HIV/AIDS activist.

Those are places with limited infrastructure for testing, vaccines and treatments.

Dr. Gounder is especially concerned about infections among Black women, who account for the largest share of new HIV infections in the United States, and already suffer significantly higher rates of maternal complications and deaths.

WHO ELSE MIGHT BE AT RISK?

Other at-risk settings include college dormitories, health clubs, and sports teams.

Dr. Gounder is aware of some sports leagues that are preparing for possible infections, noting that sports such as wrestling involve close skin-to-skin contact.

Wrestling, football, rugby and other sports teams have previously had outbreaks of the superbug MRSA, according to the CDC.

“I think it is something we need to be thinking about and prepared for,” she said.

Employers may also need to start preparing. Dr. Gounder said some theaters in New York, for example, are considering how they might protect their workers from possible monkeypox infections through contact with shared costumes.

“We’re still in the beginnings of that, but I am encouraged to see that some are already thinking about that.” — Julie Steenhuysen/Reuters

Philippines’ Q1 GDP y/y growth revised down to 8.2% from 8.3%

August 8, 2022 | 12:31 pm

02 CROWD_MARKETMARIKINA_04_VARCAS_020322 — People flock to the Markina public market on the first day of implementation of Alert Level 1, March 1. — Philippine Star/ Michael Varcas

MANILA – The Philippine economy grew 8.2% in the first quarter of 2022 from a year earlier, only slightly lower than the previously-reported growth of 8.3%, the statistics agency said on Monday.

The government will release second-quarter gross domestic product data at around 0200 GMT on Tuesday. — Reuters

MetroCity AI, Polytechnic University of the Philippines launches talent ecosystem

August 8, 2022 | 11:35 am

Building a talent ecosystem is a top priority for many HR leaders. Unfocused shotgun hiring is ineffective, unsustainable, and very expensive especially with the Great Resignation. Quickly acting on feedback from its corporate users, MetroCity AI started to form partnerships with universities and colleges early this year. First to formally team up is Polytechnic University of the Philippines with a MOA signing at Romulo Café in Quezon City last July 5, 2022.

Present during the MOA signing were PUP Vice President for Student Affairs and ServicesTomas O. Testor, Assistant to VP for SAS/Director of ARCDO Engr. Florinda H. Oquindo, ChiefCDPSJane S. Pulma, Chief ARSMavel B. Lagarde, MetroCity AI co-founders Jayr Castro and King del Rosario, and UP Diliman’s UPSCALE Senior Consultant Johnny Sy.

The vision is quite simple. First, it will ensure companies will have quality applicants by going directly to the source of top fresh talent. All companies have to do is to post their job opportunities on the MetroCity AI platform and activate the AI screening process. So even with thousands of applicants, recruiters are guaranteed an organized stack ranking that can quickly identify a shortlist and cuts down manual work.

Second, applicants will have quality opportunities from industry partners. The asynchronous video interview process is also convenient because it can be answered at their own time. The AI screening also provides automatic feedback so there’s no more guesswork or ghosting by recruiters.

Finally, universities will greatly benefit with the treasure trove of aggregate data to improve their career services or academic offering. MetroCity AI will provide administrators such as PUP’s Alumni Relations and Career Development (ARCDO) a tailor-fit portal that provides data on hireability, areas for improvement, and feedback of their graduates.

PUP plans to have the first virtual job fair utilizing MetroCity AI’s platform by Q4 2022.

MetroCity AI is part of the Batch 10 startups of UPSCALE Incubation Program of the University of the Philippines – Diliman. They are one of the recipients of the Accenture startup grant via UP Engineering Research and Development Foundation, Inc. (UPERDFI) and UPSCALE Innovation Hub.

PUP is one of the country’s highly competent educational institutions. It is considered to be the largest state university in the Philippines with over 70,000 students and approximately 10,000 graduates applying for jobs every year.

For more information, you can visit www.metrocity.ai. You can also email the founders at hello@metrocity.ai.

Final call to nominate entries to The Real Deal: Asia CEO Awards 2022

August 8, 2022 | 11:00 am

With two weeks left until the deadline of nominations on Aug. 15, everyone is encouraged to submit their entries and to be part of one of the grandest business awards in the Philippines and the Asian Region, the Asia CEO Awards.

NOMINATE NOW: https://www.asia-ceo-awards.org/nominations.

For more than a decade, this most-awaited award-giving body has been recognizing pillars of industries like Ramon S. Ang of San Miguel Corp., Manuel V. Pangilinan of PLDT, Inc., as well as movers of the nation like former Philippine President Fidel V. Ramos.

Big and small enterprises, local and international companies, and executives of different nationalities are welcome to join.

Asia CEO Awards Chairman Chris Mills said they also want to highlight young men, young women, young leaders, small companies, and start-ups. “In all cases, it’s to really show the best that the Philippines is doing,” said Mr. Mills who is also past president of the Canadian Chamber of Commerce in the Philippines.

This year’s Asia CEO Awards is backed by Title Sponsor, PLDT Enterprise, a leading company that equips businesses with digital solutions fit for the changing times and expanding needs of customers.

“We call on all Filipinos especially those who are passionate about nurturing business excellence to help promote the Philippines as an important economic hub in Asia. Together, let us build this country as a first-world nation,” urged Rebecca Bustamante, Asia CEO Awards president.

Major Sponsors and Categories

This year’s Major Sponsors include Airspeed, Arthur Nowak CX, Insular Life, Kyani, LBC Business Solutions, Reed Elsevier, Regus, Smart Enterprise, TOA Global, United Neon. Official Knowledge Partner is PwC while the Official Venue is Manila Marriott.

Asia CEO Awards 2022 and its partners offer the following categories:

• Airspeed Service Excellence Company of the Year — The award is open to any Philippine-based organization that achieved important success in service excellence. The accomplishment(s) must demonstrate an organization providing high service level standards.

• Arthur Nowak Diversity Company of the Year — The award is open to organizations in the Philippines that demonstrated proactive acceptance and respect for human differences. Human differences may include, but are not limited to race, religion, gender, gender identity and physical ability.

• InLife Young SHERO of the Year — The award is open to Filipino women leaders who are under age 40 and who have achieved recognizable success, overseeing organizations in the Philippines that have advanced the nation’s economic and/or social standing in the eyes of the world.

• Kyani Wellness Company of the Year — The award is open to any Philippines-based organization that achieved important success at workplace health promotion activities or organizational policy designed to support healthy behavior in the workplace and to improve health outcomes of employees.

• LBC Business Solutions SME Company of the Year — The award is open to any Profit-Making Company that achieved important success. Small and medium-sized enterprises (SMEs) are defined as non-subsidiary, independent firms employing between 10 and 500 employees.

• Reed Elsevier Top Employer of the Year — The award is open to any Philippines-based organization that achieved important employer success while overseeing a business enterprise either within Philippines or outside of it. The accomplishment(s) must demonstrate Filipino (or mixed Filipino/expatriate) management talent performing at the highest standards and be recognized as internationally significant.

• Regus Entrepreneur of the Year — The award is open to individuals who started enterprises from scratch and built them into larger organizations providing pioneering services and product, employment for Filipinos and expansion into multiple locations.

• Smart Enterprise Global Filipino Executive of the Year — The award is open to any Filipino citizen or person of Filipino descent who achieved recognizable success in Philippines or outside of it. Award candidates can be in any discipline but more attention is given to fields such as business, government and academics.

• TOA Global Young Leader of the Year — Candidates for this award are individual young leaders who have accomplished remarkable achievements that advance the nation’s economy or social standing in the eyes of the world. The young leaders should not be older than 35 years old during the year considered and have the title ranging from manager and up.

• United Neon Most Innovative Company of the Year — The award is open to any Philippines-based organization that achieved important success within Philippines or outside of it. The accomplishment(s) must demonstrate management talent performing at the highest standards and be recognized as internationally significant. The innovation must be meaningful to the organization and to society.

• Executive Leadership Team of the Year — The award is open to any Executive Management Team that achieved important success while overseeing a major organization. The team should have also demonstrated exceptional leadership skills resulting to the maximization of stakeholders values.

• CSR Company of the Year — The award is open to corporate and non-corporate organizations that highlight corporate social responsibility (CSR) in providing a social commitment to the Filipino people by promoting environmental protection & awareness, livelihood programs and youth development projects that contribute to the society.

• Technology Company of the Year — The award is open to corporate organizations, academe and startup companies that focuses on Information and Communications Technology, Bio Technology & Material Science, Sciences and Math & Engineering.

• Expatriate Executive of the Year — The award is open to any non-Filipino who achieved measurable success while overseeing an organization within Philippines. The accomplishment must have made a strong contribution to the development of the country’s economic capabilities.

• Sustainability Company of the Year — The award is open to any Philippines-based organization that achieved important success at environment progress and demonstrated leadership and commitment to sustainability. The accomplishment(s) must demonstrate specific initiative Filipino (or mixed Filipino/expatriate) managers have initiated to drive environmental progress and impact global sustainability.

To book tickets for the awards night of the Asia CEO Awards 2022 to be held on Oct. 11, 6:00 p.m. at the Manila Marriott Grand Ballroom, visit https://www.asia-ceo-awards.org/. Fo updates, follow them at https://www.facebook.com/AsiaCeoAwards.

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Jobless rate steadies at 6% in June; job quality improves

August 8, 2022 | 10:57 am

Unemployment rate steadied in June, while job quality improved to its best in over a year, the Philippine Statistics Authority reported on Monday.

Preliminary results from PSA June round of the Labor Force Survey (LFS) showed unemployment rate at 6% in June, steady for the second straight month. It was also lower than the 7.7% posted in June last year.

The ranks of unemployed Filipinos slightly increased by 62,000 to 2.990 million in June from 2.927 million in May. However, it shrank by 781,000 from 3.770 million last year.

In the first half, PSA reported unemployment rate average at 6%, lower than the 7.8% average in 2021 and 10.4% average in 2020. However, this was still higher than the pre-pandemic average of 5.1%.

Meanwhile, employment rate steadied at 94% in June from May. This was higher than the 92.3% in June last year.

In absolute figures, employed Filipinos were up by 508,000 to 46.592 million in June from 46.084 million in May. This was also higher by 1.516 million from 45.076 million a year ago.

The quality of jobs improved in June as underemployment rate — the share of those already working, but still looking for more work or longer working hours to total employed population — decreased by 12.6% in June from 14.5% in May and 14.2% in June last year.

This was equivalent to 5.888 million Filipinos looking for more work or longer working hours, a 780,000 reduction from 6.668 million in May. It was also down by 522,000 from 6.410 million a year ago.

Underemployment rate in June was the lowest in 13 months or since the 12.3% recorded in May 2021.

The labor force size also went up by 570,000 to 49.581 million in June from 49.011 million in May. This was also higher by 735,000 from the 48.846 million labor force size in the same month last year.

This put the labor force participation rate — the share of labor force to the total population 15 years old and over — to 64.8% in June, higher than 64% in May, but lower than the 65.1% in June last year.

This is the highest LFPR in three months or since the 65.4% in March.

On a monthly basis, the number of new entrants to the Filipino workforce decreased by 237,000 to 980,000 in June. This translated to a 2% share of new entrants to the total labor force that month, slightly lower than 2.5% in May.

A Filipino workers worked an average of 40.3 hours a week in June, higher than the 39.8 hours a week in May and 39 hours a year ago.

Services sector remained the largest employer in June with 56.5% share, down from 59% a month ago.

It was followed by agriculture and industry with 24.5% and 19%, respectively.

The June round of LFS was conducted from June 8 to 28, covering 10,915 sample households. — Bernadette Therese M. Gadon

[B-SIDE Podcast] What I’ve learned after helping write the 1987 Constitution

August 8, 2022 | 10:10 am

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By Patricia B. Mirasol, Reporter
speaking to Bernardo M. Villegas

WITH EVERY CHANGE of administration comes the question of what needs to change, and what needs to be retained. In this episode of BusinessWorld B-Side podcast, multimedia reporter Patricia B. Mirasol takes a look back at how the 1987 Philippine Constitution was drafted with Bernardo M. Villegas, an economist and one of its framers. They also discuss foreign ownership liberalization, the additional factors driving foreign direct investments, plus the key area the next administration needs to focus on.

Don’t enshrine provisions that can change with circumstances.

“Except for vital issues like the right to life and the family as a foundation of society, all other issues are debatable and should not be enshrined in the constitution,” Mr. Villegas said in response to possible drawbacks to the recent constitutional amendments pertaining to foreign ownership and liberalization.

Things can change decades down the road that can necessitate changing the laws, he added. Right now, however, “we need (foreigners) badly, because we’re buried in debt.”

The ideal constitution is a short constitution — a defect the 1986 Constitutional Commission was not able to address, according to Mr. Villegas.

“It’s too verbose…” he said. “You should understand that we were traumatized by Martial Law and the EDSA revolution. We overdid it by putting in too many restrictions.”

The Filipino First mentality is backward and must be expunged.

“I’m very happy we have those three amendments,” Mr. Villegas said, referring to Republic Act (RA) No. 11647 (The Amended Foreign Investment Act), RA 11595 (The Amended Retail Trade Liberalization Act), and RA 11659 (The Amended Public Service Act).

RA 11647 eases restrictions and requirements on foreign ownership in businesses. RA 11595 removes the categorization of enterprises and reduces the minimum paid-up capital of foreign retailers from $2.5 million to P25 million. RA 11659 allows full foreign ownership in sectors like telecommunications, railways, subways, and airlines.

All three are expected to generate more jobs, improve basic services, allow the exchange of technology, and help the economy recuperate from the COVID-19 pandemic.

These are also expected to inject much-needed foreign capital into the economy that will ultimately help fund programs such as “Build, Build, Build.”

He was one of the few in the constitutional commission who wanted to do away with the “Filipino First” provisions, Mr. Villegas told BusinessWorld. Because there wasn’t much competition from overseas, the ultra-nationalist protections soon gave rise to oligopolies, an outcome he described as “Rich Filipinos First, Damn the Rest of Us.”

While the Duterte administration has done a good job with “Build, Build, Build,” Mr. Villegas added that the next two administrations will have to do even better, since the country’s infrastructure as compared with its neighbors is “still so poor.”

Agriculture is the Achilles heel of the economy.

The National Economic and Development Authority’s AmBisyon Natin 2040 vision of having every Filipino “enjoy a strongly rooted, comfortable, and secure life” is doable, Mr. Villegas said.

It will, however, hinge upon equality of education, infrastructure development, and a focus on agriculture. The latter alone will reduce the poverty rate, Mr. Villegas added, as about three-quarters of the poor are from rural areas.

“I would like to emphasize — for the next administration — the importance of rural and agricultural development,” Mr. Villegas said. “Our biggest failure came from decades of neglecting poor farmers.”

Apart from continuing to build farm-to-market roads, Mr. Villegas told BusinessWorld that small-scale farmers can adopt models, such as the nucleus estate, to achieve economies of scale even with their small landholdings.

In such a model, small-scale farmers lease their land to corporations, who are then responsible for coordinating the transfer of technology, as well as the processing of the produce to higher-value products.

“We were able to do it with pineapples. (We can do it) in cacao, coffee, durian, avocado… but that requires leadership,” said Mr. Villegas. “That requires cooperation between the executive and the legislative.”

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Iloilo City and SM Prime collaborate on PPP to redevelop 2 city public markets

August 8, 2022 | 9:00 am

Main-IIloilo City and SM Prime — Top row (left to right): Iloilo Vice-Mayor Jeffrey Ganzon, Iloilo Mayor Jerry Treñas, SM Prime President Jeffrey Lim, SM Supermalls President Steven Tan, and SM Supermalls Senior Vice-President Bien Mateo. Bottom row (left to right): Iloilo Central Market officers Danilo Lemos, Sonia Lim, Marites Poja, Analiza Catedrilla, Josefino Barroca, Boy Adorio, Benjie Beniegas, and Elnora Mendoza Lava

In line with the national government’s thrust to transform the Philippines through PPPs and collaboration between LGUs and the private sector, Iloilo City Mayor Jerry Treñas recently signed the lease agreement with SM Prime Holdings, Inc. for the redevelopment of the Central and Terminal Markets in the bustling Southern capital. SM is investing P1.5 billion to P2.5 billion in the project.

“Wherever we can, we do markets for Micro, Small and Medium enterprises (MSMEs) and small vendors in the same city where we have SM malls,” said SM Supermalls President Steven Tan in a separate interview on the partnership. “SM has long been a part of Iloilo City, and it is now time for us to give back to the city.”

Mr. Tan cited that SM has partnered in the past with LGUs for such projects as the Marketmall in Dasmariñas, Cavite, which was well-received by the community, as it has transformed the public market into a spacious, safe, clean and more complete marketplace where both MSMEs and national brands are thriving.

Top row (left to right): Iloilo Vice-Mayor Jeffrey Ganzon, Iloilo Mayor Jerry Treñas, SM Prime President Jeffrey Lim, SM Supermalls President Steven Tan, and SM Supermalls Senior Vice-President Bien Mateo. Bottom row (left to right): Iloilo Terminal Market officers Emily Terol, Lelibeth Villaran, Linda Roque, Ma. Paz Eclarinal, Rosario Camarista, Marjorie Dumalag, Johna Reyes, Valentina Estember, and Philip Lim

“As a home for small businesses, the vendors of the public markets have a place where they can grow, as the synergy between the established SM brand and those who are starting out has always been good to the customers, the businesses and the city,” said Mr. Tan.

The modern markets will have retail spaces and ample parking, and will bring in not only more local customers, but hopefully will spur tourism as it will be a showcase of the best the city has to offer in terms of local products and well-loved Ilonggo food specialties.

“The MSMEs and vendors would definitely be selling more as it will be a convergence zone for the growth of micro, small and medium businesses,” added Mr. Tan.

Mr. Treñas clarified that the management of the markets would remain with the city government through the Local Economic Enterprise Office.

“The city government will operate the markets. It will continue to deal with the vendors.” Mr. Treñas further told the vendors that their suggestions during the consultations would be considered.

Mr. Treñas cited that this is one of the many redevelopment projects ongoing and planned for the city.

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AboitizPower making headway in decarbonization journey with data and innovation

August 8, 2022 | 7:10 am

As the Aboitiz Group embarks on a Great Transformation towards becoming the first “techglomerate” in the country by 2025, the company’s power arm is making great strides in helping realize this ambition.

AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said they are transforming their business through digitalization and innovation. At the same time, they are moving closer to their ambition of growing their Cleanergy portfolio. Cleanergy is AboitizPower’s brand for clean and renewable energy.

“We have almost 1,000 megawatts of disclosed renewable energy projects so far, all of which are expected to be delivered within the next three years. With that, we are well on our way towards delivering 3,700 MW of additional RE capacity by 2030 as part of our decarbonization journey,” he said.

AboitizPower announced last year that it aims to generate a net attributable capacity of 9,200 MW by the end of the decade, half of which will be sourced from RE and without a new coal plant. With this development, Rubio said they are “very optimistic” about hitting their goal.

“We are eager to complete these projects to continue serving the country’s growing power needs with RE and contributing to a sustainable energy transition,” he added.

AboitizPower’s decarbonization journey is reinforced by its innovation and digitalization initiatives. These stand at the forefront of the organization’s growth strategy and play a crucial part in the Great Transformation.

The Aboitiz Group is in full swing in its transition to becoming a “techglomerate” or a conglomerate that heavily integrates technology and design thinking in all its production, services, and processes.

In partnership with Aboitiz Data Innovation, AboitizPower launched its Data Innovation Program to strengthen its foray into Artificial Intelligence (AI), data science, and new technology applications. The program aims to create shared value within the company and for all its stakeholders, impacting electricity costs and improving energy reliability and security in the country.

Rubio stressed the importance of innovation and data science in making impactful progress in moving the company’s bottom line and benefiting consumers. For AboitizPower, it is a concerted effort to drive innovation and data science. It is a moving force on all business fronts, including generation, distribution, and commercial operations.

The company is exploring various innovation projects proposed by AboitizPower team members to jumpstart its data innovation program. Among these are battery optimization, predictive analytics, and intelligent benchmarking of existing assets, to name a few.

“We are leveraging technology and innovation to improve our operations and to serve our customers better. This way, we can bring more value to the communities where we operate,” Rubio said.

AboitizPower will continue to pursue innovative energy solutions toward a more sustainable future and will strive to transform energy to power progress and help build prosperity for all.

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Security Bank forges ahead as it celebrates 71 years of BetterBanking service

August 8, 2022 | 7:00 am

Security Bank Corporation (PSE: SECB), one of the Philippines’ leading universal banks, has been serving retail, corporate, institutional, and MSME clients since it opened its doors in 1951.

In the 1980s, while expanding its branch network, the Bank launched various innovative credit and trust products that have become forerunners of many of today’s industry offerings. It was a pioneer in the country’s credit card industry with the launch of the first credit card franchise through Diners Club.

In 1991, new majority owners led by current Chairman Emeritus Frederick Y. Dy took over Security Bank, provided a fresh direction, and in 1995, the Bank was listed at the Philippine Stock Exchange. In 2016, Japan’s banking giant MUFG Bank Ltd. invested PHP36.9B for a 20% stake in Security Bank—enabling both organizations to leverage cross-border capabilities and further innovate their financial products and services.

Delivering on a vision of customer-centricity

Solenn Heussaff joins the Security Bank family as the banks’ newest brand ambassador together with brother Erwan Heussaff.

Building on a heritage of BetterBanking service, as recognized over the years by The Asian Banker, Euromoney, Asiamoney, Alpha Southeast Asia, and many others, the Bank embarked on a new journey in 2020. Amid the pandemic, the Bank found opportunities to evolve and carve out paths for growth. With changing customer behaviors and business needs in mind, the Bank pivoted to invest in service differentiation.

Anchored on a vision to become the most customer-centric bank in the Philippines, Security Bank focused its lens on high growth sectors in retail, wholesale, and MSME segments—understanding and investing in what matters to clients. In doing so, significant investments were made in people engagement and talent development, scalable infrastructure, cloud technology, as well as robust risk management controls.

The Bank recently held its Service Tenure Awards to honor and recognize long-serving employees, including 40-year veteran, Retail Banking Segment Head, Maki Tingson. (L-R, Nerissa Berba, SVP and Head of Human Capital Management, Maki Tingson, EVP and Retail Banking Segment Head and Chairman Emeritus, Frederick Dy.

“Serving our customers has always been crucial to our success. We have taken this a step forward by investing in our customers—thinking long-term and focusing our resources to innovate and delight them. We have and continue to make investments in order to transform our customers’ journey and exceed their expectations across our different products and services,” said Sanjiv Vohra, Security Bank President and CEO.

Apart from investments in new organizational teams to support its vision, the Bank partnered with global frontrunners like Oracle, AWS, Google, Microsoft, Bain, and McKinsey on its strategic journey and digital transformation. This was complemented by initiatives to equip its people with the skills needed to embrace change and take on complex challenges—leveraging industry-leading platforms like LinkedIn Learning and Glint to track success.

Creating lasting impact for all stakeholders

Security Bank Foundation awarded technical vocational scholarships in partnership with Don Bosco Academy Pampanga and the Bank’s industrial clients, Motech Automotive Educational Center, Inc. and Sambon P&E Philippines, Inc.

Taking its mission of enriching lives, empowering businesses, and building communities to heart, the Bank has put its stakeholders at the core of its sustainability journey. Its BetterBanking commitment is demonstrated by collective efforts to provide excellent financial products and services for clients, add value at every customer interaction, care for employees’ health and welfare, act responsibly, and support advocacies that align with its mission.

SBFI recognized for its Ready Set Read education program at the League of Corporate Foundation CSR Guild Awards (From left to right: SBFI Program Officer Racquel Tanyag, SBFI Program Manager Louie De Real, KCFI President and CEO Rina Lopez-Bautista, and KCFI Director for Operations Edric Calma.

These advocacies promote health and wellness, livelihood development, community-building programs in disaster recovery, arts and culture, and women empowerment. These complement the pioneering work of Security Bank Foundation Inc. (SBFI), the Bank’s Corporate Social Responsibility (CSR) arm. SBFI drives the Bank’s advocacy for quality education through various initiatives, including scholarship and classroom-building programs.

Security Bank employees participated in the “Hope Begins with a Meal” food packing activity led by International Care Ministries. ICM and its partner companies packed a total of 16,000 meals for delivery to impoverished families in the Philippines.

The Bank worked with Helping Women and Others (HWAO) Foundation and their partners to construct the PGH Chemo Prep Room, which will improve preparation of chemotherapy medications and help more cancer patients.

Security Bank has made significant strides in its sustainability imperative. The Bank’s Sustainability Framework was developed in 2020, outlining its approach to addressing environmental, social, and governance issues.

Security Bank joined the GFANZ global coalition event to accelerate transition to net-zero with its President and CEO Sanjiv Vohra in attendance—a testament to its commitment to zero out coal power generation financing.

To further underpin this framework, in 2021, the Board approved the Bank’s Environmental and Social Risk Management System (ESRMS), detailing the policies and due diligence requirements to identify, address, and mitigate environmental and social risks in its operations, lending and investing practices, and supply chain.

A key component of its ESRMS is the commitment to zero out coal power generation financing. In fact, the Bank has stopped funding the construction of new coal power generation plants with a view to completely exit direct financing by 2033.

“As we celebrate our 71st anniversary, we’re committed to innovating our BetterBanking service to benefit our stakeholders. With over seven decades of experience and a sharp focus ahead, we’re optimistic about achieving our vision to become the most customer-centric bank in the Philippines,” adds Vohra.

To know more about Security Bank, visit www.securitybank.com.

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GDP growth likely eased in Q2 — poll

August 8, 2022 | 12:33 am

commuters-EDSA Bus Carousel — COMMUTERS line up early at the EDSA Bus Carousel in Quezon City, June 21. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Lourdes O. Pilar, Researcher

THE Philippine economy likely grew at a slower pace in the second quarter as surging inflation may have affected consumer spending.

A BusinessWorld poll of 18 economists and analysts last week yielded a median gross domestic product (GDP) growth estimate of 7.5% for the April-June period, easing from the 8.3% growth in the first quarter and 12.1% in the same period a year ago.

If realized, the figure would put average growth at 7.9% in the first half, above the government’s 6.5-7.5% full-year target.

Official second-quarter GDP data will be released on Aug. 9, alongside factory output and international merchandise trade statistics for the month of June.

Analysts said robust household spending likely drove second quarter economic growth, but this may have been hurt by rising inflation. In June, inflation rose to a near four-year high of 6.1%, the third straight month it exceeded the Bangko Sentral ng Pilipinas (BSP) 2-4% target band, as prices of food and fuel continued to spike.

Private sector spending accounts for about 75% of the country’s economic output annually.

Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, estimated 8.8% growth in the second quarter as household spending were driven by election-related expenditures.

“Relaxed mobility curbs may have helped accommodate expenditures on items related to revenge spending: hotels and restaurants and recreation & culture. Capital formation also expected to provide a boost with imports of capital equipment posted solid gains for the quarter,” Mr. Mapa said in an e-mail.

However, this may have been offset by the ballooning trade deficit and elevated inflation, he added.

Ruben Carlo O. Asuncion, chief economist from UnionBank of the Philippines said GDP likely expanded by 7.2% in the April to June period, mainly due to strong consumption growth.

“We think that previous quarter’s economic growth and recovery have spilled over in second quarter even amid rising inflation and monetary policy hikes,” said Mr. Asuncion in an e-mail.

The BSP began its tightening cycle in May with a 25-basis point (bp) hike in May, followed by another 25-bp rate increase in June and an off-cycle 75-bps rate hike in July. The Monetary Board has raised benchmark interest rates by a total of 125 bps so far this year.

Mr. Asuncion also noted manufacturing recovery continued in the second quarter, and that overseas Filipino workers’ (OFW) remittances’ purchasing power remained intact.

“Overall, people movement have continued to be positive and above the baseline as the economy proceeds to more reopening,” he said.

Most parts of the country remained under the most lenient alert level during the second quarter.

OFW cash remittances grew 2.5% to $12.592 billion as of May, while the S&P Global Philippines Manufacturing Purchasing Managers’ Index showed continued expansion in June.

Miguel Chanco, chief emerging Asia economist of Pantheon Macroeconomics, said he expects a modest slowdown in year-on-year growth to 8.1%.

“The largely trivial slowdown from 8.3% in Q1 owes largely from a favorable base effect — remember that the economy contracted marginally in Q2 2021 — which we think will mask yet another contraction in the quarter just passed,” Mr. Chanco said in an e-mail.

“Underlying our projection for a quarter-on-quarter contraction is a marked slowdown in the momentum in household spending, a significant pullback in government spending (related mainly to the natural pause button hit by the election), and a much larger drag from net trade.”

The country posted a trade deficit of $24.922 billion in the five months to May, with imported goods growing by 29% versus the 8.4% growth of merchandise exports in the same period.

Domini S. Velasquez, chief economist at China Banking Corp., who pencilled in an 8.2% GDP growth, said in an e-mail that the economy continued to gain momentum as it recovers from the pandemic.

“Revenge spending and domestic travel were clearly evident in second quarter as COVID-19 (coronavirus disease 2019) cases due to the Omicron variant in the preceding quarter waned,” she said in an e-mail.

Ms. Velasquez said the second-quarter figure may have received a boost from election spending, the return of business process outsourcing workers to offices and “very favorable” employment rates.

“Robust domestic tourism and mobility gauges in retail spots also appear to confirm that revenge spending and retail therapy will likely be behind a potentially strong print despite headwinds emanating from the Russia-Ukraine war and the cumulative 50-bp BSP rate hikes in May and June,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said in an e-mail.

Headline inflation averaged 4.7% from January to July, settling above the government’s 2-4% target but below the 5% forecast for the year.

RATE HIKES
Economists, however, warned the country’s economic output growth for the rest of the year may be tempered by the impact of the BSP’s aggressive policy tightening.

“We expect year-on-year growth to moderate over the course of the year given the less favorable base effect. Sequentially momentum will also be moderate given higher prices, weaker global trade, and less scope for catch-up as most restrictions are now removed,” Makoto Tsuchiya, assistant economist from Oxford Economics Japan, said in an e-mail.

“We expect the effect of monetary tightening to start kicking in towards the end of the quarter, with the impact to be more evident in 2023,” he added.

BSP Governor Felipe M. Medalla has already signaled another rate hike of 25 or 50 bps at the next meeting on Aug. 18 to tame inflation.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said rising long-term and short-term interest rates would be a drag on domestic economic growth in the next few months. He estimated GDP growth to settle at the lower-end of the government’s 2022 target at 6.5% this year.

“We expect economic growth in second half of 2022 may be softer than first half because of higher inflation impact and rising interest rates,” he said.

Security Bank Corp.’s Chief Economist Robert Dan J. Roces said the spillover effects of inflationary pressures and geopolitical headwinds may be felt in the third quarter.

“(This may) continue to constrain private consumption’s full potential and thus slow down growth. However, recent trends have shown commodity prices settling in a new, lower range, and as such may provide price relief by fourth quarter in time for the peak consumption season,” Mr. Roces said.

Economic managers are targeting 6.5-7.5% GDP growth this year.

The World Bank pencilled in a 5.7% full-year growth for the Philippines; while the International Monetary Fund expects 6.7% expansion. The Asian Development Bank and Fitch Ratings see 6.5% growth for the Philippines this year, while Moody’s Investors Service gave a 7.2% projection.

“For the rest of the year, we think that despite challenges of high inflation and weaker external demand, the economy is still poised to post a healthy growth of around 7%,” Ms. Velasquez said.

Mr. Neri said his full year GDP growth estimate remains at 6.7%.

“However, the stepped up COVID-19 booster rollout will likely soften the blow of external headwinds. The return of primary school students to face-to-face classes will likely underpin a stronger-than-expected consumption recovery. This can somehow mitigate the negative impact of elevated prices, policy rate hikes, global growth slowdown, among others on domestic consumer confidence during the second semester,” he said.

Dollar reserves may drop further in coming months

August 8, 2022 | 12:32 am

dollars-currency — United States one-dollar bills are seen in this Nov. 14, 2014 file photo — REUTERS

THE Philippines’ foreign exchange reserves may decline further in the coming months as the central bank continues to prop up the local currency.

Data from the Bangko Sentral ng Pilipinas (BSP) showed gross international reserves (GIR) stood at $98.83 billion as of end-July, 2% lower than the $100.85 billion level as of end-June.

The dollar reserves fell below the $100-billion level for the first time since August 2020 when GIR stood at $98.95 billion. The GIR level has been decreasing since February this year.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the BSP has been one of the most aggressive central banks in building up the GIR to $110 billion during the pandemic.

“Regional central banks built up reserves during the height of the pandemic, cognizant of the fact that they would need them once policy normalization starts,” he said in an e-mail.

Amid the Federal Reserve’s aggressive tightening, Mr. Mapa noted Asian central banks have deployed the tandem of rate hikes and foreign exchange spot intervention.

“In the coming months, we can expect GIR drawdown and rate hikes to continue. This is why GIR buildup was done in the first place, so we will see prudent central banks put their hard-earned built-up reserves to good use to get through the current turbulent landscape of a Fed rate hike rampage,” Mr. Mapa said.

The peso touched its all-time low of P56.45 per dollar in July.

The Fed raised interest rates by 75 basis points (bps) in July. Coupled with earlier actions in March, May and June, the US central bank’s overnight interest rate is now at a level between 2.25% and 2.50%.

The BSP has raised benchmark interest rates by a total of 125 bps so far this year, as it seeks to tame inflation.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the country’s dollar reserves may still increase in the coming months amid expected rise in inflows from overseas Filipino workers remittances, business process outsourcing revenues, foreign tourism revenues, and foreign investment.

However, the GIR can be offset by the widening trend in the country’s trade deficit and some net foreign debt payments, Mr. Ricafort said.

BSP Governor Felipe M. Medalla said in a virtual forum that the country’s foreign exchange buffer remains comfortable.

“On the other hand, our reserves are comfortable but not excessive. This is not the time to waste our bullets,” Mr. Medalla said.

The BSP is expecting a GIR of $108 billion for this year and $109 billion for next year.

The country’s foreign exchange buffer hit a record high of $110.12 billion in December 2020.

Also on Friday, Mr. Medalla signaled the possibility of a 50-bp increase in policy rates at its Aug. 18 meeting, as inflation quickened in July.

The consumer price index at the national level climbed 6.4% year on year in July, from 6.1% in June and 3.7% a year ago.

July was the fourth consecutive month that inflation went above the central bank’s 2-4% target range. The July inflation print was also the fastest growth in 45 months, or since the 6.9% logged in October 2018.

“Clearly that raises the probability rather than 25 (bps), but again, there are other (factors) that we will look at,” Mr. Medalla said. — Keisha B. Ta-asan

New progressive taxes, belt tightening may help gov’t address ballooning debt

August 8, 2022 | 12:31 am

drivers-tricycles-queue-vaccination — PHILIPPINE STAR/ MICHAEL VARCAS

By Diego Gabriel C. Robles

THE GOVERNMENT should consider more progressive taxes and belt-tightening measures amid ballooning debt, economists said.

“We would definitely have to raise taxes because of the huge expenditures. However, this should be made progressive. Furthermore, we should assure the public that the taxes will be used for the public good,” said Leonardo A. Lanzona, director of the Ateneo Center for Economic Research and Development.

The National Government’s outstanding debt hit a record-high P12.79 trillion at the end of June, up 2.4% from the previous month, the Bureau of the Treasury (BTr) said on Friday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the higher debt to increased government borrowings after the elections in May, and the peso’s 5% depreciation against the US dollar.

Domestic debt inched up 1.2% month on month to P8.77 trillion as of end-June.

External debt jumped 5.1% to P4.02 trillion due to “the impact of local currency depreciation against the USD amounting to P186.94 billion and the net availment of external financing amounting to P43.18 billion; offsetting the P35.72 billion effect of net depreciation against the US dollar on third-currency denominated obligations.”

“The economy is in a precarious situation — inflation untamed until 2024, debt exploding, and no assurance of revenue increase amidst the crisis,” University of the Philippines Professor Emeritus Rene E. Ofreneo said in an e-mail.

The country’s debt level reached 63.5% of gross domestic product (GDP) at the end of the first quarter, exceeding the 60% threshold prescribed by multilateral lenders for developing markets. The debt-to-GDP ratio surged from 39.6% as of end-2019 after the government ramped up its borrowings for infrastructure projects and pandemic response.

NEW TAXES
“There is a need to intensify tax collections based on existing tax laws, new taxes, higher tax rates, and other tax reform measures, as well as other fiscal reform measures such as disciplined spending, rightsizing the government, preventing leakages in government spending, as well as anti-corruption measures,” Mr. Ricafort said in an e-mail.

The government targets revenue to increase annually from 15.2% of GDP in 2022 all the way to 17.6% by 2028. It also aims to reduce the budget deficit from 7.6% of GDP in 2022 to just 3% in 2028.

President Ferdinand R. Marcos, Jr. in his State of the Nation Address urged Congress to approve a tax on digital service providers, which is estimated to generate P11.7 billion in revenues in 2023.

The Finance department has also pushed for a tax on single-use plastics, which may generate P1 billion in annual revenues.

The Treasury has estimated that the government needs to raise P249 billion annually in incremental revenue to avoid new borrowing and reduce the debt load.

“New taxes and higher tax rates need to be fair, equitable, and progressive, especially targeted to those that can afford them or those from the higher income brackets or at least prevent adding burden to the poor, most vulnerable sectors, and those hit hard by the pandemic,” Mr. Ricafort said.

For Mr. Lanzona, the government should pursue taxes on the wealthy, with the poor shouldering less of the tax burden.

“The best way is to tax income directly in order not to distort their investment decisions. But unfortunately, this can prove difficult and can cause them not to reveal their true incomes. Taxes on consumption may cause them to divert their investments but are easier to impose,” he said in an e-mail.

Mr. Ofreneo suggested several forms of wealth taxation, including a tax on windfall profits, a one-off emergency tax, or the institutionalization of a progressive taxation schedule.

“With his huge political capital of 31 million votes, President Ferdinand ‘Bongbong’ R. Marcos, Jr. is in a good position to ask the wealthy class to express solidarity to the people and the nation by agreeing to wealth taxation,” he said in an e-mail.

However, proposals on wealth taxes have already received a lukewarm reception from Finance Secretary Benjamin E. Diokno, who said this may scare investors.

University of Asia and the Pacific Economist Bernardo M. Villegas said that the government’s focus should be on cost reduction and savings, as well as digitalization of government processes.

“I have great hopes for improvements in tax collections through a more aggressive digitalization of the BIR (Bureau of Internal Revenue) operations being advocated by the present BIR Commissioner, who is an expert in digitalization,” Mr. Villegas said in an e-mail.

Asian Institute of Management Economist John Paolo R. Rivera said that the government should go beyond imposing new taxes, and pursue efforts to plug leakages in tax collection, rightsize the bureaucracy, and belt-tightening by cutting waste on unnecessary expenditures.

“These may be unpopular moves but can be subject for review and debate to weigh cost and benefit,” he said in a Viber message.

Budget Secretary Amenah F. Pangandaman earlier said the department is finalizing a proposed measure to rightsize the bureaucracy, which will be submitted to Congress.