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E3 video game expo to not be held in person amid COVID-19 risks

The Electronic Entertainment Expo (E3), a globally renowned event for video games, technology, and computers, will not be held in person this year amid fears around COVID19, its operator said on Thursday.

The development adds to a list of many showpiece events being wrapped up early or getting canceled or postponed for in-person gatherings amid a surge in U.S. cases, with the latest ones being technology and gadget show CES, the Grammy Awards, and the Sundance Film Festival. .

“Due to the ongoing health risks surrounding COVID19 and its potential impact on the safety of exhibitors and attendees, E3 will not be held in person in 2022,” the E3 operator Entertainment Software Association (ESA) said in a statement.

The rolling seven-day average of new COVID19 cases in the U.S. hit 540,000 earlier this week along with a surge in hospitalizations, days after the country reported a record one million infections in 24 hours. – Reuters

A year after U.S. Capitol siege, Biden blasts Trump’s ‘web of lies’

REUTERS

WASHINGTON – President Joe Biden on Thursday accused his predecessor Donald Trump of spreading a “web of lies” to undermine U.S. democracy in a speech on the anniversary of the deadly Capitol attack by Trump supporters who tried to undo his 2020 election defeat.

Speaking at the white-domed building where rioters smashed windows, assaulted police and sent lawmakers fleeing for their lives on Jan. 6, 2021, Biden said Trump’s false claims that the election was stolen from him through widespread voting fraud could unravel the rule of law and subvert future elections.

“A former president of the United States of America has created and spread a web of lies about the 2020 election. He’s done so because he values power over principle,” Biden said. “He can’t accept he lost.”

Biden never actually uttered his predecessor’s name during the 25-minute speech, telling reporters afterward he was trying to focus on the threats to America’s political system instead of Trump himself.

The tone, including a poke at Trump’s “bruised ego,” was a departure for Biden, who has focused during most of his first year in office on pursuing his own agenda. Trump issued three statements in the hours following his successor’s remarks accusing Biden of trying to divide the country and repeating his false election claims.

Trump’s behavior over the past year, like his conduct in office, has been norm-shattering. Unlike other former U.S. presidents denied re-election, Trump has refused to accept the verdict of the voters and pressured fellow Republicans to somehow overturn the results, without success.

His false claims have provided cover for Republicans at the state level to pass new restrictions on voting that they have said are needed to fight fraud. Research shows such fraud is extremely rare in U.S. elections.

Biden‘s fellow Democrats, a few Republicans and many independent experts have said Trump’s continued denials could make it less likely that future U.S. transfers of power will be peaceful – especially those involving closer margins than the 2020 election that Biden won by 7 million votes nationwide.

The speech illustrated that Biden and other Democrats remain wary of Trump’s political staying power. In the riot’s immediate aftermath, even some Republicans thought his grip on their party had been shaken, but since then Trump has only tightened it.

“Our democracy is very fragile, and the cult of The Big Lie is still very much in action with the help of the vast majority of our colleagues on the other side, who continue to try to rewrite or ignore history,” Democratic Representative Pramila Jayapal said at an afternoon event.

House Speaker Nancy Pelosi led dozens of bundled-up Democratic lawmakers holding lights in a moment of silence on the steps of the Capitol, part of a candlelight prayer vigil that was the final official event of the anniversary.

Not far away, a vigil at the D.C. jail for the about 40 inmates charged in connection with the Jan. 6 assault was sparsely attended.

“This is not speedy justice,” said L.A. Warren, 65, who had driven to Washington from his Michigan home for the day and said he, too, had participated in the storming of the Capitol. “A year, that’s a long time, when these people – a lot of them, in my view – was trespassing.”

 

‘CULT OF PERSONALITY’

Just two Republicans were spotted at a House of Representatives session marking the riot’s anniversary: Representative Liz Cheney, who has been shunned by party colleagues after criticizing Trump, and her father Dick Cheney, who served as vice president under President George W. Bush.

“A party that is in thrall to a cult of personality is a party that is dangerous to the country,” Liz Cheney told reporters on her way out of the Capitol.

Dick Cheney told reporters that current party leaders do not resemble “any of the folks I knew” when he served in Congress.

America’s next federal election is in November, with Republicans favored to retake a majority in at least one of the two chambers of Congress. That could cripple Biden‘s ability to advance policy and set the stage for two years of legislative gridlock before a potential 2024 Biden-Trump rematch.

According to Reuters/Ipsos polling, 55% of Republican voters believe Trump’s false claims, which were rejected by dozens of courts, state election departments and members of his own administration.

Four people died in the hours-long chaos after Trump urged supporters to march to the Capitol and “fight like hell.” One police officer died on that day after battling rioters and four later died by suicide. Around 140 police officers were injured. U.S. prosecutors have brought criminal charges against at least 725 people linked to the riot.

Trump remains highly popular among Republican voters and is working to shape the field of Republican candidates in the Nov. 8 congressional elections.

Most Republican officeholders have remained loyal to him, and some have sought to play down the riot. Liz Cheney is one of only two Republican members of a House committee investigating the riot, which in recent weeks has unearthed records showing Trump allies urging him to call off the rioters as the attack was unfolding.

Other Republicans accused Democrats of exploiting the anniversary for partisan gain.

“What brazen politicization of Jan. 6 by President Biden,” said Senator Lindsey Graham, who has reversed his position on Trump numerous times, including criticizing him after the riot and then reverting to defending him. – Reuters

Qatar Airways seeks more than $600 mln in Airbus A350 dispute

PARIS/LONDON – Qatar Airways is seeking more than $600 million in compensation from Airbus over surface flaws on A350 jetliners, according to a court document shedding new light on an escalating business feud worth $4 million a day.

The Gulf carrier is also asking British judges to order France-based Airbus not to attempt to deliver any more of the jets until what it describes as a design defect has been fixed.

The two companies have been locked in a row for months over damage including blistered paint, cracked window frames or riveted areas and erosion of a layer of lightning protection.

Qatar Airways says its national regulator has ordered it to stop flying 21 out of its 53 A350 jets as problems appeared, prompting a bitter dispute with Airbus which has said that while it acknowledges technical problems, there is no safety issue.

Now, financial and technical details associated with the rare legal spat have emerged in a court filing at a High Court division in London, where Qatar Airways sued Airbus in December.

The Gulf airline is calling for $618 million in contractual compensation from Airbus over the partial grounding, plus $4 million for each day the 21 jets remain out of service.

The claim includes $76 million for one aircraft alone – a five-year-old A350 that was due to be re-painted in livery for the 2022 World Cup, which Qatar is hosting later this year.

That aircraft has been parked in France for a year needing 980 repair patches after the aborted paint job exposed gaps in the lightning shield, industry sources say.

The largest customer for Europe’s premier long-haul jet claims Airbus failed to provide a valid root-cause analysis.

The jets feature a layer of copper mesh under the paint to prevent lightning – which strikes planes on average once a year – from damaging the carbon-composite fuselage, which is lighter but less conductive than traditional metal.

 

BREAKDOWN OF RELATIONS

Airbus said it understood the cause and would “deny in total” the airline’s complaint. It has accused the airline, once one of its most highly courted customers, of trying to mischaracterize the problems as a safety concern.

Airbus restates there is no airworthiness issue,” a spokesperson said, adding this had been confirmed by European regulators.

Shares in the European planemaker closed down 1.5%.

Qatar Airways, which originally ordered a total of 80 A350s, had no immediate comment.

The airline has long had a reputation as a demanding buyer, sporadically rejecting deliveries for quality reasons.

But the 30-page complaint details an unusual collapse of relations between two of aviation’s most powerful players.

The dispute widened in November when a Reuters investigation https://www.reuters.com/business/aerospace-defense/costly-airbus-paint-flaw-goes-wider-than-gulf-2021-11-29 revealed at least five other airlines had discovered surface flaws, prompting Airbus to set up an internal task force and to explore a new anti-lightning design for future A350 planes.

Qatar is so far the only country to ground some of the jets.

Under aviation rules, the manufacturer’s primary regulator – in this case the European Union Aviation Safety Agency (EASA) – oversees an aircraft’s design. Regulators in nations across the world monitor local airlines and their individual aircraft.

The complaint detailed how the Qatar Civil Aviation Authority (QCAA) had withdrawn airworthiness approval for individual A350 planes in a series of letters from June 2021.

It said the QCAA had told the airline that the deterioration of airplanes was “disturbing, if not alarming.” The regulator had also said it was “deeply concerned” that safety could be compromised because of a lack of analysis or permanent fix.

It is the first evidence of the stance of Qatar‘s regulator, which has not commented in public. Europe’s EASA, by contrast, has said it has not yet found evidence of airworthiness issues.

Airbus has appeared to question the QCAA’s independence from the state-owned airline, saying the decision to drag safety into a technical matter put at risk global safety protocols.

Qatar Airways Chief Executive Akbar Al Baker insisted in November that Qatar‘s regulator was driving safety decisions and that the row had caused a “serious dent” in operations.

The airline has started bringing mothballed A380s out of retirement as it prepares to cope with the soccer World Cup. – Reuters

Duterte threatens unvaccinated people with arrest

PRESIDENT RODRIGO R. DUTERTE — PHILIPPINE STAR/ MICHAEL VARCAS

MANILA – Philippines President Rodrigo Duterte said on Thursday people who have not taken COVID-19 shots will be arrested if they disobeyed stay-at-home orders as infections hit a three-month high.

Duterte in an televised address to the nation said he was asking community leaders to look for unvaccinated people and make sure they were confined to their homes.

“If he refuses, if he goes out his house and goes around the community, he can be restrained. If he refuses, the captain is empowered now to arrest recalcitrant persons,” Duterte said.

Daily coronavirus infections in the Philippines hit the highest since Sept. 26 at 17,220 cases on Thursday, the health ministry said, including those caused by the Omicron variant of COVID-19.

The tally, which was more than triple recorded on Tuesday brought total cases to over 2.88 million, and deaths to more than 51,700, the second highest COVID-19 infections and casualties in Southeast Asia, next to Indonesia.

“I am responsible for the safety and well being of every Filipino,” Duterte said as he challenged those who disapprove of his directive to file a case against him.

At the end of last year, 49.8 million people had been fully vaccinated, or 45% of the country’s 110 million people. Under existing rules unvaccinated people in the capital region of Manila can only step out of their homes for essential trips.

Duterte is known for his bellicose rhetoric. Last year, he threatened people who refuse to get inoculated with jail or an injection of Ivermectin, an anti-parasite drug widely used to treat animals.

But his latest remarks underscored his government’s growing concerns over the rising number of COVID-19 cases which health experts warn could overwhelm the country’s health systems again.

The Philippines has so far detected 43 domestic and imported cases of Omicron, prompting the government to tighten curbs this week. — Reuters

Fewer Filipinos jobless in November; job quality continue to worsen

The number of unemployed Filipinos decreased in November, but job quality continued to worsen as more employed Filipinos are still looking for more work, the Philippine Statistics Authority reported this morning.

The preliminary report of the PSA’s November round of the labor force survey (LFS) put the unemployment rate at 6.5%, compared with 7.4% in the October round.

This was the lowest jobless rate since the agency started releasing the report on a monthly basis in 2021. Including the quarterly releases, it was the lowest since the 5.3% recorded in January 2020.

In absolute terms, there were 3.159 million unemployed Filipinos that month, down from 3.504 million in October.

Meanwhile, the quality of available jobs declined as the underemployed rate – the proportion of those already working but still looking for more work or longer working hours — increased to 16.7% in November from 16.1% in October, equivalent to 7.617 million Filipinos from 7.044 million previously.

The underemployment rate in November was the highest in four months or since July’s 20.9%.

The size of the labor force was about 48.637 million in that month, down from 47.330 million in October. This brought the labor force participation rate to 64.2% of the working-age population from 62.6% previously.

The employment rate stood at 93.5% of the labor force in November, higher than 92.6% in October. This was equivalent to 45.477 million employed individuals during the period from 43.826 million previously.

In November, services sector accounted for 58.1% of total employment, higher than the 57.6% share in October.

Agriculture and industry made up 24.5% and 17.4% of the total, inching down from 24.6% and 17.8%. — Abigail Marie P. Yraola

BSP eyes careful exit from easy policy

BANGKO SENTRAL NG PILIPINAS GOVERNOR BENJAMIN E. DIOKNO — PHILIPPINE STAR/ GEREMY PINTOLO

AS CENTRAL BANKS around the world have started taking steps to unwind policy support, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the timing of the exit from its easy policy “remains very uncertain” but assured the transition would be done smoothly.

“Given the nascent economic recovery, the priority for the BSP is to ensure the sustainability of the recovery and prevent long-term scarring effects,” Mr. Diokno said at an online briefing on Thursday.

“We would like to emphasize that the timing of the exit remains very much uncertain at this time. The threat of further coronavirus disease 2019 (COVID-19) infections continues to pose a downside risk to both growth and inflation in the coming months,” he added.

The Health department on Thursday reported 17,220 new COVID-19 cases, bringing active cases to 56,561.

Mr. Diokno said the BSP’s approach will be “outcome-based” and not a calendar-based exit strategy. He said this will depend on the evolution of various domestic factors including liquidity and credit dynamics, financial sector risk and the state of public health as well as evolving global developments and potential spillovers.

In his presentation, Mr. Diokno outlined the BSP’s exit strategy, which include returning-to-normal operations, unwinding liquidity provision, reducing monetary accommodation, and preparing for the next crisis.

Under the strategy’s reduction of monetary accommodation component, there will be an eventual raising of interest rates “when prospects for the economy have materially improved.”

The central bank kept policy rates at record lows for the entire 2021 to support recovery, with the BSP stressing that elevated inflation caused by low supply in meat products will be better addressed by non-monetary measures. Prior to this, the Monetary Board slashed rates by a total of 200 basis points to support the economy.

This year, the Monetary Board will have its first policy review on Feb. 17.

“Future monetary policy decisions will continue to be anchored on evolving domestic and external developments to avoid unintended consequences associated with prolonged monetary accommodation, such as excessive buildup in leverage and risks to financial stability, or the emergence of inflationary pressures and disanchoring of inflation expectations,” Mr. Diokno said.

Inflation eased to 3.6% in December from 4.2% in November. This brought 2021 average inflation to 4.5%, exceeding the central bank’s 2-4% target band. The central bank expects inflation to be within target for 2022 and 2023 at 3.4% and 3.2%, respectively.

Mr. Diokno said the BSP has significantly reduced the purchase of government securities in the secondary market, noting an average of P282 million was purchased daily from Dec. 1 to 23. This is a huge decline from the peak, which he said was at an average of P14.7 billion every day in June 2020.

During the crisis, the central bank also infused about P2.3 trillion in liquidity support to the financial system, which is equivalent to about 12.5% of GDP.   

“In deciding to scale back BSP liquidity-enhancing measures, the challenge for the BSP is in striking a delicate balance between providing adequate stimulus to the economy and preventing the buildup of inflationary pressures and risks to financial stability,” Mr. Diokno said.    

The Philippine economy rose by 7.1 year on year in the third quarter of 2021, bringing the nine-month average last year to 4.9%. The government is targeting 5-5.5% gross domestic product (GDP) growth for the full-year 2021.

For this year, the government expects GDP to grow by 7-9%.

DIRECT ADVANCES
Meanwhile, the central bank approved another P300-billion loan to the National Government to support the economy, Mr. Diokno said.

The amount is lower than previous direct advances extended, reflecting the BSP’s approach to gradually unwind support measures rolled out during the pandemic.

“In approving the National Government’s request, the Monetary Board recognized that fiscal authorities still need to continue using available policy space in order to support the economic recovery through targeted initiatives such as social safety nets, as well as through the acceleration of the vaccination program and the recalibration of quarantine protocols,” the BSP chief said.

The loan, which was approved on Dec. 16, will bear a zero-interest rate. Mr. Diokno said the loan was approved after the National Government fully settled its P540-billion debt obligation on Dec. 10.

National Treasurer Rosalia V. de Leon in a Viber message said the loan terms will be the same — payable within three months, with possible extension for another three months. 

This latest budgetary support is the fifth time the BSP extended direct advances to the National Government since the pandemic. The first one amounted to P300 billion in March 2020 and the rest were worth P540 billion each in October 2020, January 2021, and July 2021.   

Asked whether he sees further reduction in budget support within the year, Mr. Diokno said: “That is our expectation but that will depend on Department of Finance.”

Under Republic Act 11494 or the Bayanihan to Recover as One Act, the central bank is authorized to lend the National Government an equivalent of 30% of its average revenue or P850 billion. This is higher than the cap set at 20% of its average annual revenue provided by Republic Act 7653 or The New Central Bank Act.

The International Monetary Fund has earlier said that the gradual phasing out of direct budgetary financing should be the BSP’s first step in its policy normalization once recovery takes hold. — Luz Wendy T. Noble

PHL lowers minimum investment hurdle for foreign retail enterprises

By Alyssa Nicole O. Tan and
Revin MIkhael D. Ochave, Reporter

PRESIDENT Rodrigo R. Duterte has signed a law that significantly lowers the minimum investment hurdle for foreign retailers, which the government hopes will attract more foreign direct investments into the Philippines.

Republic Act (RA) No. 11595 reduced the minimum paid-up capital for foreign retailers to P25 million from the previous $2.5 million (around P125 million) under the 20-year-old Retail Trade Liberalization Act of 2000 (RA 8762).

Mr. Duterte signed the law on Dec. 10, 2021 but a copy of the bill was released only on Thursday.

Under the law, the foreign retailer’s country of origin must not prohibit the entry of Filipino retail enterprises.

Foreign retailers that have more than one physical store should also have a minimum investment per store of at least P10 million.

Sought for comment, Philippine Retailers Association (PRA) Vice Chairman Roberto S. Claudio said in an e-mail interview that micro, small, and medium enterprises (MSMEs) involved in the retail sector will be the most affected by the law since they will now have to compete with foreign retailers.

“The rest of the (country’s) retail sector have prepared and adjusted to having foreign retailers since the implementation of RA 8762 in 2000. We already have allowed foreign retailers since 2000… We will offer to assist in the drafting of the implementing rules and regulations of RA 11595 to be able to come up with a clear implementation of this amended law,” Mr. Claudio said.

Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon said in a mobile phone message that the P25-million minimum paid-up capital is “more realistic” compared with the original proposal of just P10 million.

Meanwhile, British Chamber of Commerce Philippines Executive Director Chris Nelson said in a mobile phone interview that the group plans to highlight this development to its network and provide UK-based firms with business opportunities in the Philippines.

“We are very happy to see that it’s been signed into law. We think it will lead to increased investments and increased foreign direct investments,” Mr. Nelson said.

Asian Institute of Management economist John Paolo R. Rivera said the new law will benefit consumers through lower prices and more products.

“From the supply side, this will pose competition with local retail companies. This might prompt them to increase their efficiency and enhance their product offering and quality. They can also use this to learn more tools of the trade from foreign retailers,” he told BusinessWorld in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort told BusinessWorld in a Viber message that increased competition from foreign retailers will lead to more product offerings, competitive prices, and improved service for consumers.

It’s likely, he added, that this would complement “the increasingly digitized way of doing business for both consumers and retailers, or the shift to more online businesses locally and globally, on top of the brick-and-mortar ones.”

More foreign direct investments in the retail sector would create more jobs and drive economic activity, Mr. Ricafort said.

“This also would help better align the country’s laws with other ASEAN or Asian countries amid initiatives towards ASEAN Economic Integration in recent years,” he added.

However, Mr. Rivera said that there is a need to ensure that adequate safeguard measures are provided for local retailers and smaller enterprises that have no economies of scale and scope to compete with foreign enterprises.

“We do not know yet the exact magnitude of effects on the economy but what is definite is (the) greater competition that government must have anticipated,” he added.

Under the new law, foreign retailers must prioritize Filipino workers before hiring a foreign national. The law also encouraged, but not required, foreign retailers to have a stock inventory of products made in the Philippines.

Foreign retailers should also maintain a paid-up capital of P25 million at all times, which will be monitored by the Trade department or the Securities and Exchange Commission.

Those who fail to maintain the required paid-up capital will be penalized or restricted to any future trading activities in the country.

The DTI, SEC, and National Economic and Development Authority are also mandated to review the required paid-up capital every three years in a report to Congress.

Any violations of the law will be punishable by imprisonment of at most six years and a fine of at most P5 million.

This law is one of the priority economic measures being pushed by the government, alongside the amendments of the Public Service Act and the Foreign Investments Act.

Tax relief for private schools signed into law

PHILIPPINE STAR/ MIGUEL DE GUZMAN

A LAW that would explicitly qualify private schools and nonprofit hospitals for tax relief has been signed by President Rodrigo R. Duterte.

Republic Act (RA) No. 11635 or the Proprietary Educational Institutions Tax Act amends Section 27(B) of the National Internal Revenue Code to make clear that private schools and nonprofit hospitals are eligible for a temporary 1% tax under RA 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The CREATE Act had lowered the tax rate to 1% for pandemic-hit enterprises from July 2020 to June 2023.

Under RA 11635, nonprofit hospitals and proprietary educational institutions will be given a tax rate of 10% once CREATE expires.

However, if private schools and hospitals’ gross income from unrelated trade, business, or other activity exceeds 50% of the total gross income, the 10% tax rate will be imposed.

Without such concessions, these institutions are liable for the regular corporate rate of 25%.

“It’s a 90% tax discount under CREATE law. That’s the biggest tax cut this country has given to any sector in recent history,” said Albay Rep. Jose Ma. Clemente S. Salceda, chairman of the House Ways and Means Committee and primary author of the law, in a statement on Thursday.

He said the committee will request the Bureau of Internal Revenue to expedite the release of revenue regulations, so the new law “expunges any liability private schools may have had when the tax treatment was not yet clear, but within the coverage of this reform.”

Coordinating Council of Private Educational Associations (COCOPEA), which represents over 2,500 private educational institutions with over 300,000 school personnel, said the new law would help “save” the education sector from “excessive taxes and collapse” as the pandemic continues.

Based on the Department of Education, at least 865 private schools in the country have already closed due to low enrollment and their inability to conduct distance learning.

“The enactment of this landmark legislation comes at a critical time when schools are in the middle of preparations for re-opening to face-to-face classes,” said Anthony Jose M. Tamayo, chairman of COCOPEA, in a statement on Thursday.

“For many of these schools, the enactment of RA 11635 gives them the needed boost for sustainability in the school years ahead, and this allows them to fully focus on the Learning Crisis and the COVID-19 pandemic that our country is currently grappling with,” he added.

Applying the tax rate until 2023 will allow these schools to save 3.43% of compensation expenses, Mr. Salceda said, which could help them rehire at least 12,996 teachers at the start of the next school year.

As of Sept. 2021, enrollment in private schools was 1.4 million, down 57% from a year earlier, and just 66% of the 4.3 million seen in 2019, according to the Department of Education’s Learning Enrollment Survey Quick Count data. — Alyssa Nicole O. Tan

PHL healthcare benefit costs to rise this year

DR. REYNALDO DAKANAY II conducts a telemedicine consultation while at home in Tondo, Manila. He said many patients are now concerned about viral infections and coronavirus disease 2019 symptoms. — PHILIPPINE STAR/ MICHAEL VARCAS

HEALTHCARE benefit costs sponsored by employers in the Philippines are likely to go up by an average of 14.4% this year, according to global advisory, broking, and solutions firm Willis Towers Watson (WTW). 

WTW said in a statement it conducted the 2022 Global Medical Trends Survey among medical insurers which showed that healthcare benefit costs are expected to rise by 14.4% this year. This is slightly lower than 16.4% increase seen in 2021 but higher than 6.4% uptick in 2020.   

According to WTW, the leading driver of medical costs is the overuse of care due to medical professionals recommending too many services or overprescribing.

Other factors that push up costs include excess of care by insured members and the underuse of preventive services amid the avoidance of medical care during the pandemic.

WTW estimated that healthcare benefit costs in the Asia-Pacific will jump by 7.6% in 2022 compared with 7% in 2021.  Globally, costs are projected to rise by 8.1%, same as the previous year.

“COVID-19 (coronavirus disease 2019) has produced the biggest impact to global medical trend variation the industry has seen, and we expect the resultant repercussions and volatility to extend into 2022 and beyond,” WTW Head of Health and Benefits International Cedric Luah said.   

“Markets and employers are feeling the impact differently. Some have experienced the recovery’s demand for regular medical services in 2021, while others will see it next year or after,” he added.

Insurers in the Asia-Pacific region said cancer, cardiovascular, and musculoskeletal are the top three conditions by cost. Musculoskeletal, as well as mental and behavioral disorders as two of the fastest-growing conditions by cost expected in the next 18 months.   

“COVID-19 has caused volatility in the trend numbers and in the leading causes of claims. The sedentary lifestyle that often accompanies working from home has also increased the risk of musculoskeletal injuries. For the first time ever, we are seeing musculoskeletal conditions as the leading claim incidence globally. As most employers can attest, mental health claims are also on the rise,” Mr. Luah said.   

WTW Head of Health & Benefits Philippines Susan J. La Chica said the mental health of employees remain a key employer focus.   

“Employers are also reviewing how well-being solutions, in general, can be incorporated as a core benefit item, seeking support from insurers or solutions provider like us,” she added.   

Meanwhile, the survey showed that new well-being services and telehealth services were the two biggest changes made by Asia-Pacific based organizations to their medical portfolios in 2021.   

Ms. La Chica expects the adoption of telehealth will continue beyond the COVID-19 pandemic. — Revin Mikhael D. Ochave

Local firms eye coal suppliers amid Indonesia export ban

By Marielle C. Lucenio

PHILIPPINE companies with coal-fired power plants are looking at tapping other sources of the fossil fuel as they brace for the impact of Indonesia’s ban on coal exports.

“In the period of the ban, scenario mapping shows no major disruptions taking place in our AboitizPower coal plants,” Aboitiz Power Corp. President and Chief Executive Emmanuel V. Rubio told BusinessWorld on Thursday via e-mail, adding that the energy company’s supply on-hand can stand above 30-day coal demand.

AboitizPower is currently tapping coal suppliers from Australia and Russia as these are the top three and four countries with most coal reserves aside from China, and have enough inventory to meet the company’s requirements.

Meralco PowerGen Corp. (MGen) unit Global Business Power Corp. (GBP) has assured that existing supply is able to cover coal requirements for January and February.

“Nonetheless, we are looking at other sources should the ban extend beyond January,” a representative of MGen-GBP told BusinessWorld in a Viber message on Thursday.

GBP imports its coal supply from Indonesia and sources locally from Semirara Mining and Power Corp. in Mindoro. The company has not provided specific figures on its existing supply by the deadline.

Meanwhile, San Miguel Corp. President Ramon S. Ang told BusinessWorld in a text message that he thinks the Indonesian Coal Exporters Association (ICMA) has a solution to the possible effects of the restriction globally, but didn’t comment further.

Indonesia has said it plans to pause exports in January to secure coal supplies for domestic power plants, and President Joko Widodo on Monday warned miners would face sanctions if they fail to supply to local buyers, Bloomberg reported. However, there’s still debate within the government over the proposal as producers want to access high-priced foreign markets, the report added.

Back home, coal accounts for more than half of the power generated in the Philippines in 2020, with imported coal having an 86% share of thermal energy used in the country. Of the coal imports, 96.88% are supplied by Indonesia, data from Department of Energy (DoE) for 2020 show.

Meanwhile, the Philippines in 2020 sourced a total of 42.476 metric tons of coal, of which 69.51% were imported, while 30.49% were locally sourced.

Despite their heavy dependence on Indonesia’s coal, local energy companies have stayed optimistic.

“We remain optimistic on the lifting of the export ban. There is news that state-owned Indonesian utility Perusahaan Listrik Negara (PLN) has already secured an inventory of up to 7.5 million tons as of Jan. 5 and that The Ministry of Energy and Mineral Resources of the Republic of Indonesia (ESDM) and coal miners are discussing how to alleviate their domestic fuel obligations and work on long term strategies,” AboitizPower’s Mr. Rubio said.

Senator Sherwin T. Gatchalian, who chairs the Senate energy committee, called on the DoE to ready contingency measure to ensure sufficient coal supply and avoid possible coal price hike and blackouts.

“Part of the contingency measures should be to ensure the adherence of coal-fired power plants to the 30-day minimum inventory requirement (MIR),” he said in a statement on Thursday.

Mr. Gatchalian added that the government should already look into getting other suppliers in anticipation of the possible decline in stockpiles from Indonesia. — with Bloomberg

Globe says antiviral drug vs COVID-19 now on HealthNow app

GLOBE Telecom, Inc. on Thursday said the molnupiravir, an investigational drug used to prevent the spread of the coronavirus disease 2019 (COVID-19), is now available on its HealthNow app.

HealthNow is a health app developed by Ayala Healthcare Holdings, Inc. (AC Health) and Globe’s 917Ventures. It gives users access to healthcare providers for teleconsultation and medicine deliveries.

“COVID-19 positive patients interested in molnupiravir may consult with a doctor on the HealthNow app to check eligibility,” the company said in an e-mailed statement.

Citing reports, Globe said that molnupiravir “helped cut the rate of hospitalization and death by half in a trial of mild-to-moderately ill patients who had at least one risk factor for the disease.”

The Philippine Food and Drug Administration (FDA) recently approved the use of the antiviral pill molnupiravir for at-risk adult coronavirus patients.

FDA Director General Rolando Enrique D. Domingo said in a news briefing in December that the emergency use authorization was granted to the COVID-19 treatment pill under the brand name MOLNARZ® by a licensee of biopharmaceutical firm MSD, or known as Merck in the United States and Canada.

He said several other MSD licensees have pending emergency use applications, some of which are already being dispensed in hospitals under a Compassionate Special Permit.

Molnupiravir, used for the treatment of mild to moderate COVID-19 cases, may only be given to patients 18 years old and above with “risk factors for developing severe illness” such as senior citizens and those with comorbidities, the FDA official said.

Globe also said that HealthNow will soon offer home-service diagnostics. — Arjay L. Balinbin