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Australia agriculture labor crisis deepens as state and international borders shut

WITH MORE than half of Australia’s population currently in lockdown due to outbreaks of the Delta COVID-19 strain, tight rules on movement and state border closures are posing serious challenges for the A$66-billion ($49 billion) agriculture industry for the second year in a row.

Already facing a labor shortage due to border closures to international visitors, further restrictions on inter-state travel will obstruct the flow of contract workers who follow the summer harvest cycle, which is due to start in Queensland before progressing down to Victoria. Industry groups fear that the challenges could derail what is tipped to be another stellar crop this season, with Australia expected to produce 54.8 million tons of winter grains, about a third above the 10-year average to 2020-21.

“A disaster situation will occur if the limited number of harvest workers are stopped from moving back and forth across the border,” National Farmers’ Federation Chief Executive Tony Mahar said in an August statement.

Australia has long relied on foreign laborers in its agriculture industry to compensate for its shrinking and aging workforce. The federal government has attempted to plug labor gaps over the course of the pandemic by organizing chartered planes to fly workers from Pacific island nations in pilot programs, but the numbers are nowhere near the level needed to fill the estimated monthly shortfall of up to 24,000 this summer, according to Ernst & Young LLP.

Canberra said last month it would start offering agricultural visas to overseas workers over the next three years, but with little information on which partner countries are involved and how the program will work with the current caps on international arrivals it may not be enough to address the immediate shortages.

The government has also attempted to attract backpackers, who must complete at least three months of agricultural work for a two-year working-holiday stay, with the offer of a visa extension on the completion of a longer farm stint. Still, the number of those workers has plunged from 160,000 pre-pandemic to less than 40,000, leaving some crops unsown or left to rot last season.

“Last year, people were planning a long way ahead to procure people to employ, and it was tight,” said Michael Whitehead, head of agribusiness research at ANZ Banking Group Ltd. This year, the unpredictability of the Delta strain has made it more challenging to do so, he said. The grain, fruit and meat processing sectors would all be affected by the logistical difficulties, he added.

While producers can apply for special permission to cross between some states, the national farming industry group in its statement chided cumbersome bureaucracy and called the situation “state-ism gone mad.” Some workers have said that they were turned away at borders despite being in possession of agricultural permits.

The Western Australian government last week spiked a plan to parachute in foreign laborers to assist with the wheat harvest, nixing any hope of relief as the state has doubled down on its hard border stance that bars entry to workers from the rest of the country.

In addition to labor issues, the border rules also make access to heavy-machinery operators more “challenging,” Agriculture Minister David Littleproud said Tuesday. Some farmers rely on sharing essential equipment with producers in other states with the southward progression of the harvest. — Bloomberg

Shopee takes ‘zero-tolerance’ for banned items 

By Angelica Y. Yang, Reporter 

SHOPEE Philippines said that it does not tolerate the sale of prohibited items and products flagged by the Food and Drug Administration (FDA), adding that it complies with local regulations in markets, amid reports of mercury-containing medical devices on the e-commerce platform. 

“Shopee takes a strict zero-tolerance approach to the sale of prohibited and FDA-warned items on our platform… All listings on Shopee must go through a series of screenings. Any listings not cleared due to regulatory issues or other violations of our terms of use will be removed,” Shopee told BusinessWorld in a statement on Viber late on Wednesday. 

“We comply with local regulations in every market where we operate and require our sellers to be compliant with both local regulations and our own stringent policies,” it added. 

Toxics watchdog EcoWaste Coalition previously pointed out that four e-commerce platforms, including Shopee, hosted “numerous ads” which sold mercury devices through third-party dealers based in the Philippines and China. 

A day before the 9.9 sale, Shopee, MyBenta.com, Carousell and Lazada showed a total of 15 product listings for mercury sphygmomanometers, which measure blood pressure, the group said. Meanwhile, Lazada and Shopee had seven listings for mercury thermometers. 

EcoWaste Coalition, which described mercury as a “highly toxic” chemical, said it was “deeply concerned” since the online sale of mercurial sphygmomanometers and thermometers went against the phaseout provisions for these devices under a Department of Health (DoH) Administrative Order issued in 2008, and the Minamata Convention on Mercury, of which the Philippines is a signatory. 

The DoH order, signed by Health Secretary Francisco T. Duque III, ordered all hospitals to immediately discontinue the distribution of mercury thermometers, and follow guidelines for the gradual phasing-out of mercury in healthcare facilities. 

The Minamata Convention on Mercury classified mercury-containing sphygmomanometers and thermometers among the non-electronic devices whose manufacture and trade were phased-out in 2020. 

After EcoWaste Coalition released its statement, Shopee took down nine product listings with mercury-containing devices. 

“We also take proactive measures to blacklist any related keywords to intercept new attempts to sell such items on our platform. When, in isolated cases, some listings have still managed to evade these screening processes, immediate action is taken,” Shopee said. 

In a separate statement on Thursday, MyBenta.com told BusinessWorld that it had already taken down the “products in question.” 

“We continue to work with environmental groups to ensure that our platform is free of toxic products,” MyBenta.com said in an e-mail. It cited, for instance, that it removed harmful mining products when EcoWaste Coalition brought them to its attention. 

Earlier this year, e-commerce platforms held a dialogue with government agencies that gave them a list of brand and products deemed harmful to ramp up screening measures, according to MyBenta.com. 

“When removing dangerous products on our site, we rely on reports and lists of harmful chemicals available on [government] website,” it added. 

Meanwhile, Carousell said on Thursday that it had taken down the product listings which EcoWaste Coalition pointed out. 

“In accordance with FDA’s latest edict on the banning of mercury-containing medical devices, listings of mercury-containing medical devices are strictly prohibited on Carousell. Carousell has proactively and swiftly removed any such listings from its marketplace,” it told BusinessWorld in an e-mail. 

It added that it monitors its marketplace through “manual and automated” means, and works closely with authorities and partners, including EcoWaste Coalition, to keep its users safe from harmful products. 

Lazada has yet to reply to follow-up questions regarding the inclusion of mercury-containing medical devices in its online shopping channel. As of press time, the nine product listings flagged by EcoWaste Coalition are still up on its platform. 

Malaysia holds rate as vaccine spurs reopening

MALAYSIA kept its benchmark interest rate at a record low Thursday, maintaining support for an economy that’s set to fully reopen in a matter of months.

Bank Negara Malaysia held the overnight policy rate at 1.75% for a seventh straight meeting, a decision expected by 23 of 24 economists surveyed by Bloomberg. One forecast a 25-basis-point cut.

“Moving forward, the further easing of containment measures, rapid progress of the domestic vaccination program and continued expansion in global demand will support the growth momentum going into 2022,” the bank said in a statement announcing the decision. While the bank’s economic view remained cautious, language on the outlook was improved slightly, from “subject to significant downside risks” in July’s decision to “tilted to the downside” on Thursday.

The ringgit was little changed after the decision at 4.1505 to the dollar. Yields on 10-year government bonds were steady at 3.24%.

“The rate hold decision continues to signal a high bar for the BNM to cut rate, even if it has left the options open still,” said Wellian Wiranto, economist at Oversea-Chinese Banking Corp. in Singapore. “Unless the domestic plan reopening plan comes asunder and the global demand slows down perceptibly, BNM will most likely stay the course from here.”

VACCINE ROLLOUT
Malaysia’s swift vaccine rollout has allowed the government to ease virus curbs state by state and announce perks for the inoculated, even as infection numbers remain elevated. More than half of the population had been fully vaccinated as of Wednesday, paving the way for the government to reach its target of reopening all economic and social sectors by the final quarter of the year.

To be sure, risks remain. Confirmed cases are set to breach the 2 million mark by next week, adding pressure to hospitals already running low on beds for Covid-19 patients. The distribution of vaccines has favored the economic powerhouses of Kuala Lumpur and Selangor, with most other states trailing. And the government’s limited fiscal space could hinder its ability to support the economy if the national recovery plan goes off track. — Bloomberg

The Wire actor Williams remembered for his compassion

NEW YORK — Michael K. Williams, best known for playing shotgun toting drug dealer Omar Little in the HBO crime drama The Wire, was remembered by his colleagues as an actor with a special talent for humanizing the characters he portrayed, bringing his own experience as a Black man growing in New York to his roles.

Mr. Williams, who also won praise for his roles in Boardwalk Empire, Bessie, and Lovecraft Country, was found dead in his Brooklyn apartment on Monday, the New York Police Department said. He was 54. An investigation into the cause of death is underway.

“The depth of my love for this brother can only be matched by the depth of my pain learning of his loss,” Wendell Pierce, who played Detective Bunk Moreland in The Wire, wrote in a Twitter thread. Mr. Williams had “the ability to give voice to the human condition portraying the lives of those whose humanity is seldom elevated until he sings their truth,” Mr. Pierce said.

The Wire was a TV series set in Baltimore that tells the story of the narcotics trade through the perspective of criminals, police, and the people caught up between them. Critics praised Mr. Williams for his portrayal of Little, a homosexual drug dealer at war with his rivals. Mr. Williams was transparent about his own bouts with drug addiction, telling NPR in 2016 that he brought his personal experiences to the character.

After The Wire ended in 2008, Mr. Williams was cast as powerful African-American gangster Chalky White in Boardwalk Empire, an HBO series set in Atlantic City, New Jersey during the Prohibition era of the 1920s.

During his career, Mr. Williams earned Emmy nominations for performances in HBO’s Bessie, The Night Of, and Lovecraft Country, in addition to a nod for his role in the 2019 Netflix series When They See Us.

When They See Us tells the real-life story of five teenagers falsely accused of a brutal attack on a female jogger in New York’s Central Park. The so-called Central Park Five were eventually exonerated after spending years in prison.

The creator of the series, Ava DuVernay, and actors Niecy Nash and Jharrel Jerome also memorialized Mr. Williams on Instagram. “I remember you sending me a picture of yourself as a young man and sharing with me that the boys whose story we were telling were a reflection of you — and we were going to get it right,” Ms. DuVernay said. — Reuters

Words that make managers look bad to workers

PCH.VECTOR-FREEPIK

I’m a newly-promoted manager tasked to supervise a group of workers of various backgrounds, experience, seniority, and educational attainment. What do I need to be successful? — Gray Zone.

Start by being kind to people and they will reciprocate. Kindness begets kindness. If not, recalibrate in due time.

You can’t go wrong with kindness. People are basically good. Therefore, treat everyone with kindness unless they show signs they don’t deserve it. This means you can’t assume that every worker is lazy and uncooperative. You need to take the time to listen carefully.

Kindness is a good rule of thumb for managing every employee. It helps you prevent a lot of misunderstandings and gets the best out of people. Of course, there are exceptions. Some people intend to get away with anything they can. If that happens, adjust your style without delay.

BAD EXPRESSIONS
More important, you must be conscious of your own style and be watchful of words that come out of your mouth. This way you get to understand that people react negatively to things that you may have uttered without thinking through the implications. On the top of my list are some depraved expressions you should avoid:

One, “It is a management prerogative.” Many managers in their attempt to short-circuit a “debate” are tempted to hide behind management prerogative. Unless you’re in labor court, don’t use this argument to shut out people. Instead, be patient and explain the rationale for a certain policy.

Two, “That’s not a management problem.” Sure, there are many things that can’t be your concern. But why can’t management do something or at least exert a little effort to make the lives of the workers better? If workers are having difficulty commuting and come in late, would it be possible to assign them to a location nearer their home?

Three, “Come up to my level first before questioning it.” This is too harsh. If you can’t explain it clearly to the workers, then don’t resort to insult. It’s unprofessional, to say the least. It’s also important to understand that when you resort to insult and being disrespectful, it only shows the workers how your position has become shaky and weak.

Four, “I don’t have time to teach you everything.” It’s like saying you’re not interested in their career growth. It will come across as a lack of generosity in sharing what you know. How will you get the best from your workers if you don’t have time to coach them?

Five, “We’ve always done it this way.” This is a killer phrase that turns people off. Who would want to do a good job if you’re always defending the status quo?  What will happen if you ask them for their ideas? Nothing; you’ll be surrounded by people who have no energy to talk.

Six, “It’s confidential.” If it’s confidential, then the drama ends. But first, you must be able to convey the reason behind why information is confidential. Don’t be remiss in saying that certain information is limited to certain persons, no matter how painful it may sound.

Seven, “Don’t bring your personal problems here.” Why not? If people seek your advice about their family problems, don’t hesitate to help. Make an effort to listen to their stories and find out how you can alleviate the situation without resorting to money, if money is requested. You ca n allow them to take time off, if that helps.

Last, “That person is lazy.” Even if it’s true, there is no point to spreading such malicious claims. You don’t know how it might ruin the work relationship if the person in question finds out. The correct approach is to talk directly to the person and not to third parties. Just as important, how would colleagues feel if they’re aware that you talk maliciously behind someone’s back?

DIPLOMACY
Your basic job as a manager is to help everyone reach their full potential so they can do an excellent job, which benefits you, the department, and the whole organization. If everyone sees you as the best boss, it will be easier to work with them regardless of their current situation.

It’s best to be diplomatic with your words and your body language. Many people are sensitive. It’s best to be patient and help people develop. If they lack the necessary knowledge, attitude, skills, and habits, much more patience is called for. Understand people by recalling how you started as a newbie. Talk to people as if they’re family.

If they don’t reciprocate, take proper action, like forcing them to undergo a performance improvement plan, among others. If not, talk to them and find out how you can help them resolve their difficulties.

 

Have a consulting chat with Rey Elbo on Facebook, LinkedIn, or Twitter or you can send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

PIGO pioneer on the go

The pioneering Philippine Inland Gaming Operator (PIGO) licensee, Inter-Active Entertainment Solutions Technologies, Inc. (IEST), generated P113.9 million gross gaming revenues in the first half of 2021. IEST is a subsidiary of Philippine Stock Exchange-listed DFNN, Inc.

In November 2020, IEST became the first company to be issued an online gaming license by the Philippine Amusement and Gaming Corp. (Pagcor). The novel PIGO scheme was conceived as Pagcor’s response to the closure of land-based gaming venues resulting from the COVID-19 pandemic. It allows casinos and integrated resort operators to offer online gaming to existing registered members who can log in and play from anywhere in the country.

IEST’s legal domestic gaming platform, InPlay.ph, has proven to be a successful venture for DFNN. With gross bets of P2.5 billion, it contributed 12.6% of the parent company’s total revenues for the six months to June 2021 from zero last year. The remote gaming platform offers more than 500 games while providing full confidentiality and 24/7 customer service.

DFNN President and CEO Calvin Lim said: “The positive result of our revenue comparing the second quarters of 2020 and 2021 showing a 104% increase is due to the success of InPlay. It is an undeniable success as customers now opt to use the platform for the reliability and convenience that it offers.”

Mr. Lim said InPlay represents a significant measure toward regenerating revenues for the government as well as to help fight the proliferation of illegal online gambling in the country, since its technological capabilities ensure legal and secure transactions. DFNN recognizes that as the pandemic continues to hamper customer movement, it has also presented a huge gap in service delivery and an immense business opportunity for the technology sector.

Pagcor Chair and CEO Andrea Domingo revealed that online gaming has boomed because of the COVID-19 lockdowns and quarantine restrictions. She cited “e-sabong” or online cockfighting as a major source of revenue to the tune of P400 million per month. “It’s the online games now that are earning the money for the government,” Ms. Domingo disclosed during a media interview, adding that “Pagcor is on track to earn at least P38 billion this year.”

Due to the vacuum created by the exit of many Philippine offshore gaming operators or POGOs since March 2020, investors have been anticipating Pagcor’s move to find ways to increase revenues. The exodus of POGOs back to Mainland China also spelled trouble for local businesses such as property leasing, banking, fintech, transportation, and restaurants.

IT solutions companies like DFNN and IEST are poised to capitalize on the digital shift and other current trends in the coming months. Aside from their InPlay platform, they also hold licenses for electronic gaming machines, a sports betting exchange, and pari-mutuel games from Pagcor. Having a first mover advantage in the PIGO industry is a big incentive for them to pioneer more technology-driven services in the near term.

The opinion expressed herein does not necessarily reflect the views of these institutions and BusinessWorld.

 

J. Albert Gamboa is the chief finance officer of Asian Center for Legal Excellence and co-chairman of the FINEX Week Committee.

Entertainment News (09/10/21)

GMA Network, Regal Entertainment seal partnership

GMA AND REGAL have partnered on a telemovie collaboration, Regal Studio Presents, beginning Sept. 11 on GMA-7. Regal Studio Presents is a weekly TV anthology that features stories starring various GMA artists. The two companies are also developing a variety of content to air across GMA channels. On GTV, viewers can catch Regal classic movies via Regal Treasures every Friday afternoon. Meanwhile, Heart of Asia is set to bring the hit BL (Boys Love) series Ben X Jim starting Sept. 26. Apart from these, viewers looking for fresh content can expect new movie features from Regal to be shown on GMA’s various platforms in the years to come. For the pilot episode of Regal Studio Presents, Ken Chan and Sanya Lopez team up for the very first time in “That Thin Line Between,” a story of neighbors who are at odds with each other. Upcoming episodes will star Gabbi Garcia, Khalil Ramos, Sofia Pablo, and Allen Ansay.

Hoy, Love You Two on iWantTFC

JOROSS Gamboa and Roxanne Guinoo-Yap deal with the difficulties of having a stepfamily in the iWantTFC original series, Hoy, Love You Two, which streams on Sept. 11. They play newlywed couple Jules and Marge, who try to build a relationship with their step-kids and prove themselves worthy to their in-laws, all while dealing with their own issues as a couple. The romantic comedy is directed by Theodore “Ted” Boborol and will stream on the iWantTFC app (iOs and Android) and on iwanttfc.com. The series is free for all users in the Philippines and is available to premium subscribers outside the Philippines.

Good Vibes with Edu Season 2 opens with ‘plantitas’

THE SECOND season of Edu Manzano’s Metro Channel talk show, Good Vibes with Edu, premieres on Sept. 12, 8 p.m. For its season opener, the host invited celebrity “plantita” guests for a conversation on the benefits of plants during this pandemic and a helpful discussion on how they take care of their indoor and outdoor plants. Actress-model Aubrey Miles, award-winning TV host Daphne Oseña-Paez, news anchor Gretchen Fullido, and singer-TV host Karel Marquez will speak about their planting journey and share tips on gardening. Good Vibes with Edu is a half-hour talk show where Mr. Manzano connects with his guests virtually and engages them in lively casual conversations. The new season will air on Metro Channel on SKYcable channel 52 (SD) and channel 174 (HD), Cignal channel 69, and GSAT channel 70. Episodes will also be available to stream via iWantTFC and Metro.Style’s YouTube channel.

Grandparents’ Day at Shangri-La Plaza

CELEBRATE Grandparents’ Day with Shangri-La Plaza mall on Sept. 12 by finding the right gifts for them. Looking for home exercise equipment that can help keep their heart strong, enhance their mobility, and maintain a healthy weight? The Trax Ultra Slim Deluxe Treadmill or the Trax Cadence Stationary Bike 2.0 from Chris Sports are compact enough for any home. For a comfortable pair of sneakers that they can use whenever they work out or walk around, Dr. Kong has Orthoknit sneakers that offer a hard heel counter to stabilize the heel bone, arch support, and soft padding for shock absorption. From Rustan’s Home, make their Zoom calls and movie nights livelier with Bang & Olufsen. A bouquet of flowers and a handwritten letter will make grandparents feel special and loved, so get a bouquet of mixed-colored Dutch tulips from Holland Tulips and a heartfelt Hallmark card from National Bookstore. Shangri-La Plaza mall is open daily from 10 a.m. to 6 p.m. For inquiries, call 8-370-2597/98 or visit www.facebook.com/shangrilaplazaofficial.

Netflix to release Season 3 of Sex Education

IT’S A NEW year, Otis is having casual sex, Eric and Adam are official, and Jean has a baby on the way. Meanwhile, new headteacher Hope (played by Jemima Kirke) tries to return Moordale to a pillar of excellence, Aimee discovers feminism, Jackson gets a crush, and a lost voicemail still looms. All this is up — along with commitment animals, alien phenomena, vulva cupcakes, and much more of Madam Groff — in the third season of Sex Education. The eight-episode season premieres on Sept. 17 on Netflix. For more information, visit netflix.com/SexEducation.

Julia Baretto stars in TV5’s ‘Di Na Muli

JULIA Baretto returns to star in the TV series ‘Di Na Muli, alongside Marco Gumabao. Produced by Cignal and Sari-Sari Channel together with Viva Entertainment for TV5, ‘Di Na Muli tells the story of love found and lost⁠, and moving forward in life without regrets. It is told through the eyes of Yanna, played by Ms. Baretto, a woman burdened with precognition. Her ability makes her aware of how life is so fleeting and how time can pass you by if you fail to value every moment. Mr. Gumabao plays Mico, the man who challenges Yanna’s perspective on love. ‘Di Na Muli premieres on Sept. 18, 8 p.m., on TV5, Sari Sari on Cignal TV Ch. 3 and SatLite Ch. 30, and on Live and On-Demand via Cignal Play app.

Miss Universe PHL appoints Lazada as voting platform

THE MISS Universe Philippines Organization is again partnering with Lazada as the official voting platform for the upcoming Miss Universe Philippines 2021 pageant. From Sept. 13 to 24, beauty pageant fans will once again be able to support their favorite finalists through the Fan Vote feature available exclusively on the Lazada app. The finalist who receives the most votes through the Fan Vote system on Lazada will earn a spot in the pageant’s Top 16. Fans can enter up to five free votes daily and can support their favorite finalist by casting votes multiple times a day during the voting period. Fans can choose to purchase more votes via the Voting Packages offered in the voting page. The Miss Universe Philippines 2021 Finals will be on Sept. 25. Vote can be cast through the Miss Universe Philippines voting page on the Lazada app/site: https://lzd.co/LazadaVoting.

Musical series Still moved to November

SET in a pandemic-struck music camp, Still puts the spotlight on young aspiring artists as they navigate through a period of isolation and struggle. Its Exclusive PreViu on Ticket2Me.net was set for Sept. 10, but because of delays due to recent lockdowns, the new release date has been moved to Nov. 12. Still is Viu’s first Filipino Original musical narrative series and will consist of eight episodes. The cast is headlined by Julie Anne San Jose and Christian Bautista, and they will be joined by Bituin Escalante and Gab Pangilinan. Still is presented by Viu Philippines and This Side Up, in collaboration with Arkeofilms, TheaterFansManila.com, Flip Music, and Black Box Collab. The PreViu tickets are now available for purchase at https://bit.ly/ViuStillSeries.

Clinton Kane releases new single

FOLLOWING his viral success on TikTok and other online music platforms, Clinton Kane has released his stripped-down pop ballad, “I Guess I’m in Love,” via Columbia Records and Sony Music. Detailing the winding journey and range of feelings that come with finally finding true love, the single is currently at No. 4 on Spotify Philippines charts, and has amassed nearly 23 million streams since its release on Aug. 20. The track is currently a mainstay on various local radio charts, ranking within the top 20 of Manila-based mainstream radio stations, RX 93. 1 and 99.5 Play FM. Over at TikTok, The Filipino-Norwegian star’s chart-topping track has been covered by Filipino artists, including SB19’s Pablo, whose rendition garnered close to 200,000 views in less than an hour.  “I Guess I’m in Love” is available on all digital music platforms worldwide via Clinton Kane – I GUESS I’M IN LOVE (lnk.to).

Kyle Juliano, Sam Atkins collaborate on single

TWO homegrown talents from Dumaguete, Kyle Juliano and Sam Akins, are bringing back slow 2000-style R&B melody with their first collaboration, “I Need You Now.” The song talks about an unhealthy attachment and dependency on a relationship that doesn’t bring value in one’s life anymore. “Kyle played a four-chord progression on guitar that you hear throughout the song, and we wrote that together with Stefani (Kyle’s cousin),” Mr. Atkins said in a statement. These show their flair in uniting music and lyrics with their much-awaited record. “I Need You Now” is available to stream on Spotify and Apple Music.

Philippines’ richest 2021

THE 50 RICHEST families and individuals in the Philippines saw a “robust recovery” as their collective wealth surged by 30% to $79 billion (P3.94 trillion) this year even as the pandemic continued, according to Forbes. Read the full story.

Philippines’ richest 2021

How PSEi member stocks performed — September 9, 2021

Here’s a quick glance at how PSEi stocks fared on Thursday, September 9, 2021.

Philippine factory output continues rebound in July (2021)

THE COUNTRY’S factory output expanded for the fourth straight month in July, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

Philippine factory output continues rebound in July (2021)

Philippine trade year-on-year performance (July 2021)

THE COUNTRY’S trade-in-goods deficit widened in July as merchandise import growth outpaced the increase in exports, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

Philippine trade year-on-year performance (July 2021)

Dominguez says PHL can’t be ‘trailblazer’ on deficit spending

FINANCE Secretary Carlos G. Dominguez III said the Philippines must remain in the “middle of the pack” in terms of deficit spending and cannot be a “trailblazer,” in an apparent rebuff to calls for more economic stimulus.

“The Philippines cannot be the trailblazers here. My goal always has been to land somewhere in the middle of the pack. I don’t want to be too far ahead, I don’t want to be far behind when you come to those ratios. So far, we’re just about there.” Mr. Dominguez said in a budget hearing at the Senate Thursday.

His presentation indicated that the National Government’s outstanding debt was equivalent to 54.6% of gross domestic product (GDP) in 2020, as opposed to 49% for Thailand and 48% for Vietnam. The Philippine deficit is roughly comparable to Poland’s 57.7%.

The ratio grew to 60.4% in the first half of 2021 as the government continued to borrow to address the budget deficit, which is expected to be equivalent to 9.3% of GDP this year.

Senator Franklin M. Drilon said at the hearing that the government needs to roll out more stimulus and cash aid, as the private sector cannot provide enough jobs and economic activity with the pandemic dragging on.

“I agree that managing our deficit and debt levels are essential. But these are not normal times and many Congresses (in other countries) have allowed their deficits to go higher in relation to GDP because they believe this is a fiscal stimulus that will also be necessary in order to assist the economy in recovery,” Mr. Drilon said.

The government released two stimulus packages in 2020, the P275-billion Bayanihan to Heal as One Act (Bayanihan I) and the P160-billion Bayanihan to Recover as One Act (Bayanihan II), to help individuals and businesses deal with the effects of the lockdown.

Two rounds of cash aid were also issued to poor families hit by the April and August lockdowns, worth P23 billion and P13 billion, respectively.

Legislators have been pushing for a third stimulus package of up to P400 billion.

Mr. Dominguez has said the government can only support around P173 billion in new stimulus without breaching the budget deficit ceiling of 9.3%.

“We should also remember that we (cannot foresee) how long this COVID is going to last,” he said.

“Our goal is to land in the middle of the pack and that we should conserve our resources for a long fight. That has been the policy that we have espoused and that is what we are implementing,” he added.

Mr. Dominguez said the government is closely monitoring spending and revenue performance against targets.

The economic team expects debt to hit 59.1% of GDP this year, peaking at 60.8% in 2022 before easing to 60.7% in 2023 and 59.7% in 2024.

The budget deficit is projected to fall to 7.5% of GDP in 2022, 6.3% in 2023 and 5.3% in 2024, before returning to the pre-pandemic cap of 3.2% by 2025. — Beatrice M. Laforga

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