Home Blog Page 6175

Australians urged to work from home as winter Omicron wave swamps hospitals

BELLA H. /PIXABAY

 – Australians admitted to hospitals from COVID-19 neared record levels on Wednesday as authorities urged businesses to let staff work from home and recommended people wear masks indoors and get booster shots urgently amid a major outbreak.

Australia is in the grip of a third Omicron wave driven by the highly transmissible new subvariants, BA.4 and BA.5, with more than 300,000 cases recorded over the past seven days, even as authorities flagged the actual numbers could be double. Tuesday’s 50,000 cases was the highest in two months.

“We need to do some things differently at least for a short period of time,” Australia’s Chief Medical Officer Paul Kelly told ABC Radio on Wednesday, as he predicted the number of people ending up in hospitals will soon hit an all-time high.

“We know that working from home is a very key component of stopping what we call macro spreading.”

About 5,300 Australians are currently in hospital with COVID-19, not far off the record 5,390 recorded in January during the BA.1 outbreak, official data showed. Numbers in the states of Queensland, Tasmania and Western Australia are already at their highest since the pandemic began.

But Kelly said he had not recommended the reintroduction of mask mandates or any other restrictions.

Last week, Australia reinstated support payments for casual workers who have to quarantine due to COVID-19 after more workers began calling in sick. Several frontline health workers are also sick or in isolation, further straining the health system. Read full story

Authorities have also warned of a lag in people taking their booster shots worsening the health crisis.

So far, 95% of people above 16 have had two doses, helping keep Australia’s total COVID-19 cases just under 9 million and deaths at 10,845, far lower than many countries. But only about 71% have received three or more doses. – Reuters

Putin says Ukraine did not make good on preliminary peace deal

Russian President Vladimir Putin on Wednesday said Moscow did not see any desire from Ukraine to fulfil the terms of what he described as a preliminary peace deal agreed to in March.

Mr. Putin, speaking to reporters in televised comments after a visit to Iran, said Saudi Arabia and the United Arab Emirates were offering to mediate between Russia and Ukraine, which Moscow’s forces invaded in late February.

There was no immediate response from the Ukrainian government to Putin‘s remarks in the early hours of Wednesday.

Mr. Putin, asked about a possible meeting with Ukrainian President Volodymyr Zelenskiy, said Kyiv had not stuck to the terms of a preliminary peace deal he said had been “practically achieved” in March, without elaborating.

“The final result of course… depends on the willingness of the contracting parties to implement the agreements that were reached. Today we see the powers in Kyiv have no such desire.”

Negotiations took place in March, with both sides making proposals but without a breakthrough. At the time, Mr. Zelenskiy said only a concrete result from the talks could be trusted.

Mr. Putin met Iranian Supreme Leader Ayatollah Ali Khamenei in Tehran on Tuesday, deepening ties between the two countries who are both under Western sanctions.

During the visit to Iran, Mr. Putin also met Turkish President Tayyip Erdogan to discuss a deal that would resume Ukraine‘s Black Sea grain exports, now blockaded by Russia.

Russia was ready to facilitate Ukrainian grain exports by the Black Sea, but also wanted the remaining curbs on Russian grain exports to be removed, said Mr. Putin, who was shown by Rossiya state TV answering questions from media at the end of his visit to Iran.

On Tuesday the Russian leader had said not all the issues had been resolved yet on grain shipments, “but the fact that there is movement is already good.” Read full story

It was Mr. Putin‘s first in-person meeting with a NATO leader since Russian troops invaded and was a pointed message to the West about Russian plans to forge closer strategic ties with Iran, China and India to help offset Western sanctions imposed over the invasion.

 

ISOLATED

The trip shows how isolated Russia has become, said White House national security spokesman John Kirby. Read full story

Mr. Kirby also said the United States was preparing to unveil another weapons package for Ukraine. Citing U.S. intelligence, he accused Russia of laying the groundwork to annex Ukrainian territory. Read full story

The Kremlin has said there is no time limit to a conflict it calls a “special military operation” to ensure its own security. Ukraine and the West condemn it as an unprovoked war of aggression against its neighbor.

Russia was trying to “drag” Ukraine into a protracted conflict into the winter, Mr. Zelenskiy’s chief of staff Andriy Yermak said in a magazine interview published on Tuesday. Read full story

“It is very important for us not to enter the winter. After winter, when the Russians will have more time to dig in, it will certainly be more difficult” for any Ukrainian counter-offensive, Mr. Yermak said.

More than two weeks have passed since Russia’s last major territorial gain – capturing the eastern Ukrainian city of Lysychansk. But in a now familiar pattern, Russian missiles slammed into targets across Ukraine on Tuesday.

At least one person was killed in a Russian missile strike on the center of the eastern Ukrainian city of Kramatorsk, authorities said.

“I felt a really powerful explosion and I understood it was somewhere here,” said Valentina, 70-year-old local resident whose son-in-law, Maksym, was critically injured in the attack.

“I called my daughter and she says that Maksym is not picking up the phone. He must have been knocked off then,” she cried.

Video footage from the scene showed a large pool of blood among fallen leaves.

Ukraine‘s air force said in a Facebook post that it had shot down a Russian fighter jet with a missile over Nova Kakhovka, to the east of the city of Kherson, which is occupied by Moscow’s forces. Reuters could not immediately verify the Ukrainian account.

 

GAS EXPORTS

As the war drags on, concerns that Russia may halt supplies of natural gas to Europe have risen.

In response, the European Union is considering a voluntary 15% cut in natural gas use by its member states beginning next month, Bloomberg reported on Tuesday, citing EU diplomats.

Brussels is expected to publish plans on Wednesday for how the 27 EU members can reduce gas use. The exact number for the reduction target was not specified in a draft document of the plan seen by Reuters. Read full story

Kremlin-controlled energy giant Gazprom was ready to fulfil its obligations on gas exports, Putin said, and was not to blame for a reduction in gas transit capacity, including shutting down one of the routes via Ukraine to Europe by Kyiv. Read full storyReuters

Sri Lanka could tip back to chaos if six-time PM voted president

JALITHA HEWAGE-UNSPLASH

 – Sri Lanka’s parliament will choose between three candidates for president on Wednesday, hoping the new leader will be able to pull the island out of its worst economic and political crisis since independence in 1948.

But a win for acting President Ranil Wickremesinghe, one of the main two contenders but opposed by many ordinary Sri Lankans, could lead to more demonstrations by people furious with the ruling elite after months of crippling shortages of fuel, food and medicines.

Ruling-party lawmaker Dullas Alahapperuma, a former journalist, is more acceptable to the protesters and the opposition but does not have any top-level governance experience in a country with barely any dollars for imports and desperately in need of an IMF bailout.

The third candidate, Anura Kumara Dissanayaka, the leader of the leftist Janatha Vimukti Peramuna party, commands only three seats in parliament and has no realistic chance of winning. Read full story

Mr. Wickremesinghe, a six-time prime minister, became acting president last week after the then incumbent, Gotabaya Rajapaksa, fled to Singapore when protesters seized his official residence and office, roaming the corridors, using his gym and swimming in his pool.

Protesters also burned down Mr. Wickremesinghe’s private home and stormed his office, but failed to oust him. Mr. Wickremesinghe said this week that by the time he joined the current government as prime minister in May, the economy had already collapsed.

Sri Lankans have blamed the Rajapaksas – seven from the family were in the government as of April – for the meltdown. Their decisions to cut taxes and ban chemical fertilizers, which damaged crops, decimated the debt-laden economy that was badly exposed by the COVID-19 pandemic.

It was not immediately clear how much support 73-year-old Wickremesinghe, seen as an ally of the Rajapaksa clan, and 63-year-old Mr. Alahapperuma have in the 225-seat parliament.

Mr. Wickremesinghe is backed by a section of the ruling party that had a total of 145 seats as of the last parliamentary election in 2020. Mr. Alahapperuma has the support of the other section as well as the main opposition party that won 54 seats last time round.

Latest numbers are not clear because some lawmakers have become independents.

“Earlier Ranil Wickremesinghe was the front-runner but now the outcome is much more uncertain,” said political scientist Jayadeva Uyangoda.

“The balance of parliament power has shifted away from him. The outcome is dependent on how much control the Rajapaksas have … over their party members.”

Sri Lanka’s parliament in 1993 unanimously chose D.B. Wijetunga to finish the tenure of assassinated President Ranasinghe Premadasa. This time three candidates are in the fray to complete Rajapaksa’s term, scheduled to end in 2024.

“It will be marked as a new experience in the parliamentary history of this country,” a statement from the communication chief of parliament said, laying out the procedure.

A candidate receiving more than one-third of the valid votes cast will be declared elected. If no candidate reaches the mark, the one with the lowest number of votes will be eliminated from the competition and preferences of lawmakers taken into account to eventually arrive at a winner.

Whatever the process, protesters are clear they want Mr. Wickremesinghe gone. Wickremesinghe, for his part, imposed a state of emergency on Monday, giving him more powers to launch a crackdown should he feel the need.

“We are protesting again Ranil. He is a corrupted man,” said Duminda Nagamuwa, who organised protests in Colombo after the nominations were finalized.

“If Ranil comes (into power), we cannot have stability.” – Reuters

Experience business opportunities and innovation at FINTEX 2022

Technology is influencing the competitive landscape for businesses of all kinds and to thrive in a competitive landscape, businesses must be willing to adapt and change.

Execution PH believes that Business Innovation trends should need to transform and change into something entirely new on the regular. It’s no wonder that people never stop dreaming, and learning, searching for different ways to earn whether by putting up their own business or being an entrepreneur.

Franchise Innovation and Technology Expo (FINTEX) recognized the need for more business opportunities to people despite the ongoing pandemic. In line with this, there will be an exciting business venture that will surely bring back the industry.

This year’s FINTEX will provide a center stage for the product lines of this year’s exhibitors which will include franchise business, smart gadgets, packaging, mobile accessories, and automotive. It will focus on development and knowledge-building among its community of professionals, enthusiasts, and aspiring players alike. As such, visitors of this year’s event can expect on-ground event activities such as product demonstrations that aim to provide attendees with an informative and exciting experience.

The show’s theme is “Thriving the New Normal and Business Opportunities,” which seeks to highlight the importance of being open to change as well as the value of innovation. This applies to all kinds of businesses to gain more opportunities in the industry. Followers are encouraged to watch out for their online ‘Business Innovation Talks Seminar’ or BITS and Tech review segment of chosen brands that participated at FINTEX event, these will be released on their social media page.

FINTEX bears a strong commitment to empowering the local franchise and technological industry by setting the stage for promising B2B connections marked by the innovation of various forces and bold new concepts and ideas. On the impression of FINTEX devotion to the local industry, PASALO PH Services Senior Transferal Manager Jen Pascua remarked, “For the 1st year of FINTEX, it has become a useful platform for local businesses to showcase their products and services, to create new partnerships and clients.”

The 2nd Franchise Innovation and Technology Expo or FINTEX 2022 will be held from Sept. 8 to 10, 2022 during mall hours at the Market Market Mall in Bonifacio Global City, Taguig. The Entrance is FREE. For more information, visit www.executionbyoth.com/fintex and follow @fintexevents on Facebook.


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

Marcos administration aims to boost 50% of population in first 100 days

The government has to vaccinate 397,334 individuals per day for 60 days in order to achieve the target of 50% booster coverage set by President Ferdinand “Bongbong” R. Marcos, Jr., for his first 100 days in office, the Department of Health (DoH) said in a July 19 Viber message.

This number represents about half of the 78,100,578 individuals in the eligible population, minus the 15,210,257 who have already been given their first booster (or their third dose), explained the DoH. “Doing so will strengthen the wall of immunity of our population to prevent severe and critical COVID-19 (coronavirus disease 2019) cases.”

Muli kong inihahayag sa inyo ang importansya ng pagpapabakuna at booster shots [I am reiterating the importance of vaccinations and booster shots],” Mr. Marcos said in a July 16 vlog.

Malaking bahagi ito sa preparasyon natin sa pagbabalik ng face to face classes at sa pagluwag ng iba pang [This is a huge part of our preparation back to face-to-face classes and the loosening of our other] safety protocols.]”

Mr. Marcos exited isolation on July 15 after testing positive for the virus July 8.

The DoH has reiterated the need to get boosted as it sees COVID-19 cases may peak by the end of July while hospitalization may rise by the end of August.

 An expert review on global real-world vaccine effectiveness against SARS-CoV-2, the virus that causes COVID-19, showed that messenger ribonucleic acid (mRNA) vaccines (Moderna, Pfizer), vector vaccines (AstraZeneca), and inactivated virus vaccines (CoronaVac) “provide consistently high (>90%) protection against serious clinical outcomes like hospitalizations and deaths, regardless of variant.”

Omicron is the most dominant variant in the Philippines. — Patricia B. Mirasol

This BGC condo will turn your everyday life from hassle to convenience

Known as one of the busiest districts in the Metro, Bonifacio Global City (BGC) is home to major company headquarters, shopping destinations and other lifestyle finds. No wonder, a lot of people are choosing this as the place to flourish in their careers and to bond with friends and loved ones. But along its lively nature is the heavy traffic going to and from this district – an experience that robs us of precious time and energy.

Good thing, a ready-for-occupancy condo is located at the heart of BGC. So if you’re on the lookout for a place to call yours that is at the center of it all – check out The Trion Towers.

Efficient City Living

Standing tall at the corner of 8th Avenue and McKinley Parkway, The Trion Towers is a three-tower high-rise condominium that provides easy access to major destinations in the area. Its closeness to offices, schools, hospitals, and even leisure spots provides huge savings in terms of time, money, and energy as there’s no need to drive far to be where you need to be.

This RLC Residences property is designed not just with proximity in mind, but also for convenience and comfort in form of spacious units and amenities for work, live, and play.

A home that supports life’s pursuits

The Trion Towers is the place to live in as it offers spacious units, ranging from one-, two- and three-bedroom flats perfect for individuals and even families to comfortably live in.

Aside from this, The Trion Towers is home to 32 facilities for fitness, entertainment, and wellness. Exclusively housed within the property, living here means getting easy access to multiple amenities such as indoor and outdoor pools, fitness rooms for yoga, pilates, cardio, and other workouts, indoor lounges, and even outdoor playscapes for kids. Should you and your loved ones need a place to bond and relax after a hectic work day, you can choose among these options to spend quality time together.

And since this property is ready for occupancy, you can easily check out the units to assess which of these options is the right match for you. It’s easy to appreciate the amenities, too, as they are all built and ready for residents’ use.

Your home, ready for you

With living spaces and amenities already built, there’s no need to wait for a long time to live in a BGC condo. Here at The Trion Towers, you can move in immediately and start living a convenient and efficient city life in one of its ready-for-occupancy units. But what makes it an ever greater pick is that these units come with a 10% discount.

How can you avail all of these and start owning a piece of this BGC property? Start by connecting with an RLC Residences Property Specialist through rlcresidences.com. You can check the units real-time, too, simply by attending The Trion Towers Exclusive Property Preview on July 23, 2022. Visit RLC Residences’ Facebook and Instagram pages for more information.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

Infrastructure spending up in May

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Diego Gabriel C. Robles

INFRASTRUCTURE SPENDING picked up slightly in May as the Department of Transportation (DoTr) increased payments for railway and subway projects, offsetting the lower disbursements for public works projects due to the election ban.

In a report released on Tuesday, the Department of Budget and Management (DBM) said expenditures for infrastructure and other capital outlays rose by 2.1% to P80.5 billion in May, from P78.9 billion in the same month a year ago.

The May figure is also 26.2% higher than the P63.8 billion spent for infrastructure in April, when the election ban on public works was still in place.

“This is mostly accounted by the increase in CRC (constructive receipts of cash) payments of the DoTr for the Malolos-Clark Railway Project and the Metro Manila Subway Project,” the DBM said.

It also attributed the higher spending to capital outlay projects under the Armed Forces of the Philippines’ modernization program.

This helped partly offset the lower disbursements by the Department of Public Works and Highways (DPWH) due to the election ban, as well as other one-off capital expenditures, such as the construction of the Senate building, the DBM said.

The ban on public works projects for the May national elections began on March 25 and ended on May 8.

In the five months to May, infrastructure and capital outlays spending reached P334.6 billion, inching up by 0.7% from P332.3 billion spent in the same period last year.

Analysts anticipate infrastructure spending to pick up in the next few months, given the Marcos administration’s signal of continuity.

“I think, given upcoming and renewed contracts for infrastructure projects, capital expenditure by [the] National Government will tend to increase in the succeeding months and years. As there is conscious effort from government to continue the ‘Build, Build, Build’ program, the trend may continue,” said Asian Institute of Management economist John Paolo R. Rivera.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said rising debt stock and limited financial resources may force the government to prioritize major infrastructure projects.

Nonetheless, “increased government spending especially on infrastructure would still be a major driver of economic growth, [a] source of more jobs, as well as other business opportunities,” he added.

The budget deficit declined by 18.99% to P458.7 billion in the first five months of 2022.

As of end-March, the country’s debt-to-gross domestic product (GDP) ratio stood at 63.5%, beyond the 60% threshold prescribed by multilateral lenders to developing economies.

Economic managers are aiming to bring down the debt-to-GDP ratio to 61.8% by yearend. The debt-to-GDP ratio is expected to steadily drop to 61.3% by next year all the way to 52.5% by 2028.

‘BUILD, BUILD MORE’
Meanwhile, a congressman’s proposal to institutionalize the government’s infrastructure program has drawn mixed reactions from experts.

Albay Rep. Jose Maria Clemente “Joey” S. Salceda recently filed a House Joint Resolution No. 6, which introduced the “Build, Build More” (BBM) infrastructure program. It would earmark 5-6% of GDP for infrastructure spending annually, consistent with the Marcos administration’s medium-term target.

“Continuing a massive infrastructure program at a time of limited fiscal space and broad economic distress among the population is not a good policy direction for the new government,” said Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH.

“It is tone-deaf to the day-to-day problems of the public, and certainly, this should not be adopted by Malacañang at this time.”

On the other hand, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa acknowledged the necessity of spending in infrastructure to improve the Philippines’ competitiveness.

However, “the issue now becomes how the government intends to fund the investment needed by the economy. The government must balance the need to push for infrastructure investment while ensuring the long-term fiscal health of the economy,” Mr. Mapa said in an e-mail.

“As long as authorities can ensure that financing will ensure that spending on building can be done simultaneously as fiscal consolidation, ‘Build, Build, Build’ and all its derivatives will be welcome,” he added.

UnionBank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in an e-mail the measure sends the right signal to investors and stakeholders as it “communicates stability and continuity.”

For 2023, Mr. Salceda estimates infrastructure spending to reach P1.21 trillion or 5% of GDP. By the final year of the Marcos administration in 2028, he projects it to reach P2.25 trillion or 6% of GDP.

“[The amount of] P2.25 trillion is currently better spent funding the new government’s social agenda such as continuing cash aid to marginalized families, free education, affordable healthcare, and housing. It can also be better spent improving current infrastructure in actual problem areas, such as the EDSA bus carousel and other metropolitan centers visibly distressed by traffic and other bottlenecks,” Mr. Ridon said.

It is still unclear how the Marcos administration will fund another round of massive infrastructure investments, he added.

To achieve the infrastructure spending targets, Mr. Asuncion said the government should maximize public-private partnership projects.

“I think it’s possible if the private sector and foreign investors will be part of the equation,” he said.

Fitch lowers PHL GDP forecast

PHILIPPINE STAR/EDD GUMBAN

FITCH RATINGS lowered its gross domestic product (GDP) growth forecast for the Philippines to 6.5% this year, from 6.9% previously, citing continued inflationary pressures due to high prices of food and other commodities.

The revised forecast is within the Philippine government’s GDP growth target band of 6.5-7.5% this year.

“We expect economic activity to remain strong over the next few quarters in those sectors and from infrastructure development. We forecast growth of 6.5% in 2022 and 6.3% in 2023, which would support the credit outlook,” Fitch Ratings analyst for the Philippines Sagarika Chandra said in a research note.

Fitch Ratings’ 6.3% GDP forecast for 2023 is lower than the Development Budget Coordination Committee’s (DBCC) 6.5-8% target for 2023 to 2028.

“Inflationary pressures from high commodity and food prices and the ongoing economic recovery, are a risk to growth. Inflation is high relative to some regional peers, at 6.1% in June. The Philippines is a net oil importer and does not have any significant fuel subsidies,” Ms. Chandra said.   

June inflation was the fastest in nearly four years, and exceeded the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target band for a third straight month. This brought the six-month average inflation to 4.4%, still below the BSP’s 5% full-year projection.

Fitch Ratings said it expects further monetary policy tightening by the BSP through 2023.

The BSP has raised its key policy rate by 125 basis points (bps) so far this year, bringing it to 3.25%, in order to tame inflation.

BSP Governor Felipe M. Medalla said he would not rule out another interest rate increase in August.   

CREDIT RATING
Meanwhile, Fitch Ratings said the impact of the Marcos administration on the Philippines’ “BBB” credit rating will depend on its policy agenda and its implementation.

“Our view on the ‘negative’ outlook will be determined by the extent to which the policy agenda will reduce uncertainty, in particular about the medium-term prospects for growth and public debt,” Ms. Chandra said.   

In February, the debt watcher affirmed the Philippines’ “BBB” rating -— a notch above minimum investment grade — with a “negative” outlook.

Fitch lowered the Philippines’ credit rating outlook to “negative” from “stable” in July last year due to the impact of the pandemic.

Ms. Chandra said the Marcos administration’s economic policy is assumed to be broadly in line with existing policies.

“In particular, we foresee the government maintaining a focus on infrastructure investment, a key driver of the country’s favorable medium-term growth prospects, which support the sovereign rating,” she said.   

President Ferdinand R. Marcos, Jr. is widely expected to continue the previous administration’s “Build Build Build” initiative.

“A sustained broadening of the government’s revenue base that enhances fiscal finances and places the government debt-to-GDP ratio on a durable downward trajectory would be positive for the credit profile,” Ms. Chandra said.

Finance Secretary Benjamin E. Diokno earlier said he will strengthen tax administration to generate additional government revenues.

“Under our baseline, the Philippines’ government debt-to-GDP ratio peaked in 2021 at 54.1% and will decline over the next few years, with the general government deficit narrowing to 3.9% by 2024. These forecasts are based on growth averaging 6.4% in 2022-2024,” Ms. Chandra said. — Keisha B. Ta-asan

Marcos eyes fertilizer deals with China, Russia

A woman buys vegetables at a market in Metro Manila, July 10. — PHILIPPINE STAR/EDD GUMBAN

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. is looking to pursue government-to-government deals with some of the world’s top suppliers of fertilizer such as Russia and China, as he aims to boost the country’s agriculture production.

However, experts said Mr. Marcos should thoroughly study the move as it may force him to offer concessions that will not be beneficial to the country.

Mr. Marcos is considering communicating with the governments of China, Indonesia, United Arab Emirates, Malaysia, and Russia to purchase cheaper fertilizer through bilateral deals, the Palace said in a press release.

“They want to help and approach us, so let’s take advantage of that. Give us fertilizers that are affordable. That’s the whole point of government-to-government deals,” Mr. Marcos told Agriculture officials at a meeting on Monday, according to a media release.

Mr. Marcos, who heads the Agriculture department, said they could send letters to those governments and “say that we are in the market to buy this volume of fertilizer.”

The President also asked Agriculture officials to provide data on the sources and prices of fertilizer.

The Philippines imports much of its fertilizer supply, which has been disrupted by the ongoing Russia-Ukraine war. Higher fertilizer prices are expected to drive up costs of agricultural commodities in the next few months.

It is already expected that Mr. Marcos would gravitate to Russia and China, among others, “since other countries probably have major issues either supporting him or being seen trading with his government,” said Hansley A. Juliano, a political economy researcher studying at Nagoya University’s Graduate School of International Development in Japan.

Mr. Juliano said the move signals that the Philippine leader does not care about how his foreign policy is perceived, “considering that just a few days ago, reportage on infrastructure projects under his predecessor were left hanging due to Chinese funding not forthcoming or properly allocated for.”

“China hasn’t exactly proven itself reliable in one economic engagement and now you’re relying on it again?” he said. “It’s like going back to a bad electronics store that gave you a bad warranty policy.”

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, urged the administration to consult with the Philippines’ fertilizer industry and other concerned sectors before making any policy decision.

“I hope they could also reveal alternative options so that stakeholders can weigh on them,” Mr. Aguirre said in a Messenger chat. “I hope this was not done unilaterally on the part of the government without consultation and due diligence.”

He also urged the government to be careful in dealing with countries that have been “neglectful of their obligations.”

Mr. Marcos told the Transportation department to renegotiate loan agreements with China for railway projects worth $4.90 billion. Transportation officials last week said the loan applications were considered “withdrawn” after the Chinese government “failed to act on the funding requests” made by the Duterte administration.

Retail sector nears pre-pandemic vacancy rate

A WOMAN fixes the store display at a mall in Mandaluyong City, May 27, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE commercial real estate sectors, particularly retail, is making a strong comeback, thanks to pent-up consumer demand, looser travel restrictions and return-to-office mandates, according to real estate services firm Santos Knight Frank.

Jan D. Custodio, Santos Knight Frank Research & Consultancy senior director, projected that the vacancy rate in the retail sector can reach pre-pandemic levels by the end of 2022.   

“For the retail, we’re seeing that it is slowly picking up to near pre-pandemic levels. Probably towards the end of the year (it can reach pre-pandemic levels), barring new variants coming in and stymying the people’s drive to go out,” Mr. Custodio said during a virtual briefing on Tuesday.

As mobility restrictions eased, more Filipinos are now flocking to malls and eating in restaurants more regularly.

However, Mr. Custodio said improving public transportation is key to the retail sector’s sustained recovery.

Kash B. Salvador, Santos Knight Frank Investment & Capital Markets director, said the second-quarter vacancy rate in the retail sector is now approaching the pre-pandemic level.

“As of Q2 2022, in comparison to Q4 2019, the vacancy rate is now at 4.6%, with the pre-pandemic levels at 3.6%. More and more stores are opening with the continuous lowering of restrictions and we’re seeing a lot of strong activity in this sector,” he said.

Santos Knight Frank data showed food and beverage outlets and clothing stores account for two in every three upcoming stores in malls in Metro Manila.

Average retail lease rates in the second quarter have recovered, and are now just 4.4% lower than the rates in the fourth quarter of 2019.

OFFICE DEMAND
Meanwhile, office space demand is still not likely to reach pre-pandemic levels this year due to the reduced demand from Philippine offshore gaming operators (POGOs).

“The (office) demand is picking up in the second quarter and we will start to see more of it in the latter half of this year. But I’m not sure that we’re not going to get there in 2022. The good news is that demand has been picking up,” Santos Knight Frank Occupier Strategy & Solutions Senior Director Morgan A. McGilvray said at a virtual briefing on Tuesday.

Demand from business process outsourcing firms (BPOs) may have been getting better, but there’s no evidence it may return to the same levels seen in 2018 and 2019, he said.

According to Mr. McGilvray, there was a surge in leasing activity during the second quarter as employees returned to their offices. This includes workers employed by companies registered with the Philippine Economic Zone Authority (PEZA).

Despite this, Metro Manila’s office space vacancy rate for the second quarter still increased to 23% due to the introduction of 228,500 square meters of new office space, Mr. McGilvray said.

The vacancy rates may decline as demand for offices in Metro Manila starts to increase.

“We’re going to continue to get supply but not as much as we’ve been getting over the last few years and so the balance of that is that the vacancy rate would be expected to start creeping downward again moving forward,” Mr. McGilvray said.

Rick M. Santos, Santos Knight Frank chairman and chief executive officer, said the office demand from BPO firms will be driven by multinational companies that want to cut costs and outsource to other countries like the Philippines.

“Negative earnings of companies in the US means job cuts, which means they need to supplement that with more jobs being outsourced to the Philippines and India,” Mr. Santos said.

Santos Knight Frank also noted that PEZA-registered companies may require additional office space in the coming months, as they will have to comply with 90% work-from-office requirement by September. — Revin Mikhael D. Ochave

Silverlens to open in NY

YEE I-LANN, Measuring Project: Chapter 1, digital inkjet pigment print on Hahnemühle Photo Rag paper, 2021 (detail). — IMAGE COURTESY SILVERLENS GALLERY

(if they can make it there, they can make it anywhere)

By Sam L. Marcelo, Multimedia Editor

SILVERLENS, the 18-year-old Manila-based gallery, is opening in New York City this September with solo shows by Martha Atienza and Yee I-Lann — bucking the trend of businesses closing due to the coronavirus pandemic, surging inflation, and a global economy on the brink of recession.

Silverlens co-owners Isa Lorenzo and Rachel Rillo bought an airy 2,500-square-foot space in the Chelsea Arts District that used to house Bryce Wolkowitz Gallery.

“It’s like we’re jumping off a cliff and we don’t know what’s at the bottom,” said Ms. Rillo, in a Zoom call with BusinessWorld on July 16.

“And we don’t know if it’s a five-foot cliff or a five-kilometer cliff,” Ms. Lorenzo added.

Now being renovated, the New York space has a footprint comparable to Silverlens’ home in Makati City — which the gallery rents in Lapanday Center along Chino Roces Extension — but with the advantage of a higher ceiling height of 20 feet and massive skylights.

Located right by the High Line, on 505 W 24th Street, Silverlens NY will enter a district crowded with big names, such as Lehmann Maupin, Lisson Gallery, Marianne Boesky Gallery, and Gagosian.

“If you go to New York and you’re going to spend one day looking at galleries, you’re going to go to Chelsea. … It’s amazing to be in this neighborhood,” said Ms. Lorenzo of the Manhattan borough’s gravitational pull.

The gallerists declined to share how much they were investing in the space, saying only that it was “a commitment.”

Listing portal StreetEasy, a subsidiary of real-estate marketplace company Zillow, estimates the average price per square foot in West Chelsea at $2,362 as of this writing.

‘TRULY NUTS’
This “trans-continental move,” as Ms. Lorenzo and Ms. Rillo described it, was driven by the coronavirus disease 2019 (COVID-19) pandemic.

When lockdowns pushed everyone and everything online, Silverlens found that 25% to 30% of its website visitors were from the United States.

“We had a team that was watching who was watching us,” said Ms. Rillo.

Curious as to whether their website analytics translated into a genuine market for Silverlens artists in the United States, Ms. Lorenzo and Ms. Rillo flew to New York City in the middle of 2021 to meet with curators and art habitués they befriended in the decade or so that Silverlens has been participating in the art fair circuit.

Their month-long trip solidified their desire to be part of the New York art scene and the stars aligned quickly once they decided that they wanted to be there: The space was offered this January; it was turned over in April; Silverlens NY opens this September.

“It’s truly nuts,” said Ms. Rillo. “The more we tell people about this timeline in the art world, the more they don’t believe us. They think we’ve been planning this for five years.”

BRICK-AND-MORTAR VS THE METAVERSE
Opening a brick-and-mortar space halfway around the world might seem ironic, given the emphasis on e-commerce and the rise of virtual galleries that specialize in digital artworks that exist as non-fungible tokens (NFTs).

However, a report titled “Future of New York” published this February by UBS Financial Services, Inc., is bullish on the physical gallery.

“I don’t see a shift away from gallery spaces in New York for two reasons. The foreign galleries benefited tremendously from the fact that they were within walking and driving distance of this great body of collectors. … Henceforth, gallery owners will, if anything, see the need to have more of a foothold in New York, not less,” said Marc Spiegler, global director of Art Basel, who was interviewed in the report.

“And just as importantly, galleries are investing in New York real estate. … So this meme that ‘the gallery space is over,’ that ‘everyone’s going to move into the metaverse,’ is just not sustained by the evidence on the ground,” he continued.

The UBS report also stated that “New York’s position as a global center of the art market will continue uninterrupted.”

The Art Market 2022,” an Art Basel and UBS report published this March, noted that US collectors had the highest share overall (53%) of new and emerging artists’ works.

‘THE OPPORTUNITY OF A PANDEMIC’
The New York art scene, in the past few years, has consolidated, making room for international players like Silverlens.

Galleries from Brazil, Korea, Mexico (and now, the Philippines) have moved into the industrial spaces in Chelsea vacated by medium-sized American galleries, which, depending on their fortunes, either closed or relocated to the historic cast-iron buildings of posh Tribeca.

“We couldn’t let the opportunity of a pandemic pass us by,” said Ms. Lorenzo.

“There’s a lot of movement. What’s happening in Chelsea right now is you have a lot of the big blue-chip guys and then you have the migrants. There’s space,” she added, using “space” in terms of real estate and diversity.

The very attributes that would have made it impossible for Ms. Lorenzo and Ms. Rillo to set up shop in New York in the early aughts now make them appealing: they are queer BIPOC (Black, Indigenous, and people of color).

“They need BIPOC representation. And that’s what we are,” said Ms. Lorenzo. Added Ms. Rillo: “We tick off quite a number of boxes so we’re going to jump on board.”

The West’s cultural reckoning — provoked by the immigration debate, the #MeToo movement, the Black Lives Matter movement, anti-Asian violence, and the climate crisis, among others — have put marginalized communities front and center.

“It’s a pivotal moment, specifically in the United States,” said Ms. Lorenzo. “We are squarely in that spotlight because we are brown. There is a sense of being seen.”

These global issues inform the positioning of Silverlens NY as shown by the two artists featured in the inaugural show: Dutch-Filipino video and installation artist Ms. Atienza and Malaysian photomedia-based artist Ms. Yee, whose works are both rife with geopolitical tension.

Ms. Atienza’s The Protectors features the fisherfolk of Bantayan Island and “explores environment, community, and development” while questioning who owns the land and who owns the sea.

In Roof of the Mouth, meanwhile, Ms. Yee collaborates with indigenous Malaysian weavers to present a body of work that “claims and celebrates communities and their geographies, often at the peripheries, that give shape to the center.”

The primary goal of Silverlens NY is to get institutions and museums to collect the work of its artists and provide a Southeast Asian perspective to topics, such as climate change and circular economies, that have a direct impact on the Philippines and the region.

“We want to be part of the conversation,” said Ms. Lorenzo. “There are so many issues that they are championing and talking about over there [in the West] but we’re the ones who are living this on a daily basis.”

NO LONGER AN ISLAND
Silverlens NY is not the first time that Ms. Lorenzo and Ms. Rillo are venturing beyond the Philippines. From 2012 to 2015, they operated in Singapore at Gillman Barracks, where they focused on the artists on their roster.

“We were like an island, just showing our own thing,” said Ms. Lorenzo.

The lessons they learned from their three-year stint in Singapore influenced their New York programming, which will be composed of two-month exhibitions that are gallery-curated — as in Gillman Barracks — and curator-led, thus broadening Silverlens’ horizons.

“We’re going to invite curators from there [the United States] to put up shows with our artists and artists in their radar,” said Ms. Rillo. “I’m excited about that because then there’s a sense of discovery for us.”

Silverlens is eyeing artists who are part of the Asian diaspora, reflective of the backgrounds of both gallerists. Prior to founding Silverlens, Ms. Lorenzo studied at the Parsons School of Design in New York City and worked at the International Center of Photography, also in the same city; Ms. Rillo, meanwhile, was on the opposite coast: she studied at the Academy of Art College (now known as Academy of Art University) in San Francisco and was a photographer based in Los Angeles.

Also related to this migratory/trans-continental experience is the matter of currency and whether there is a danger of skewing the prices of their artists out of the Philippine market.

“We’ve been working at this price level for many years. We don’t need to create an international price and a local price — it doesn’t work that way,” said Ms. Lorenzo. “We’re pretty much established and our artists are also established — it’s not so much an issue.”

“We just happen to be in the Philippines,” she added. “I already feel like we are running a very international standard program. It’s just a matter of applying ourselves and what we already do in Manila to New York.”

Silverlens will present the first New York solo gallery shows by artists Martha Atienza and Yee I-Lann, on Sept. 8, at Silverlens NY, 505 W 24th Street, New York, NY. For more information, visit www.silverlensgalleries.com.

The new NCCA chairman’s priorities

RENE R. ESCALANTE, Chairman of National Commission for Culture and the Arts (NCCA). — FACEBOOK.COM/NCCAOFFICIAL/

THE NEWLY ELECTED National Commission for Culture and the Arts (NCCA) chairman, Rene R. Escalante, plans to focus on the full restoration and use of the Metropolitan Theater and planning for COVID-19 recovery efforts in the arts and culture sector, among others.

Mr. Escalante, who is also the current chairman of National Historical Commission of the Philippines (NHCP), was elected during a Board of Commissioners meeting at the Metropolitan Theater in Manila on July 7.

The Board of Commissioners is composed of 15 members from other government agencies, the House of Representatives, and the Senate, plus the NCCA subcommission heads.

The election was called after the resignation of Cultural Center of the Philippines (CCP) president and concurrent NCCA chairman Arsenio “Nick” J. Lizaso.

“We did not really expect that Nick Lizaso will give up his post [at the] end of June because we were expecting to finish [his term] but unfortunately because of some personal reasons he decided to give up the position,” Mr. Escalante said in a press conference on July 18 at the NCCA office in Intramuros.

Mr. Escalante will be serving as NCCA Chairman for the remaining six months of 2022. He will also serve as concurrent Chairman of the NHCP.

“My tenure will only be until December 2022, because I will just be serving the unexpired term of former chairman Nick Lizaso,” he said. “I’m not sure what will happen in December so let us not move beyond that date.”

Mr. Escalante is a professor of history and a former chair of the Department of History of De La Salle University Manila. He began his time in government in 2004 as secretary of the NCCA National Committee on Historical Research (NCHR) until 2007. In 2010, he was appointed Commissioner of the NHCP before he was elected agency chairman in 2017. Mr. Escalante also served as the Executive Director of the National Quincentennial Committee for the Quincentennial Commemoration in the Philippines from 2020 to 2021.

THE METROPOLITAN THEATER
For 2022, the NCCA has an allotted National Endowment Fund for Culture and the Arts (NEFCA) of P500.4 million — P112 million for administrative and operations; and P388.4 million for 264 projects nationwide — and P26.9 million from the annual General Appropriations Act (GAA).

The newly elected chairman noted that his office is currently at the planning stage for several projects.

First among his priorities is to finish the full restoration of the Metropolitan Theater. The theater’s restoration is currently in its third and final phase. (related story: www.bworldonline.com/arts-and-leisure/2021/08/11/388298/a-long-awaited-revival/).

“We have some pending things to decide on the ground floor of the two buildings, and also with courtyard along the Burgos wing,” said Mr. Escalante who was also the project’s overseer.

He assured reporters that no part of the building was severely affected by the fire on June 17. Mr. Escalante said that the area where the fire occurred was near the workers’ barracks where the old theater seats and costumes were kept in storage.

Some of the seats which were in good condition were donated to the cultural center in Sorsogon and the old costumes left in storage were not disposed of “because of the possibility that they might have some owners,” he explained.

“The impact [of the fire] was minimal and the items that were damaged will no longer be used by the theater,” he said.

Also on the agenda for the theater is planning for the venue’s sustainability.

“We are deciding on whether to commercialize portions of Met to make it sustainable. So, we are not very dependent on the NEFCA or the GAA,” he said, adding that there is the option to open food and beverage establishments “for income to shoulder utilities and regular expenses.”

Another area of focus for the 990-seat main theater is maximizing its use for shows. Negotiations for shows this year are ongoing with National Artist for Music Ryan Cayabyab and National Artist for Dance Alice Reyes.

Mr. Escalante also added that he wants to get in touch with nearby universities which are welcome to host programs or culture shows there.

“If they (students) need a good venue, it is very accessible and big enough. This is open to them,” he said.

COORDINATION
Mr. Escalante’s second priority is to meet with the new heads of the Film Development Council of the Philippines (FDCP) and the CCP.

On July 6, veteran actor Tirso Cruz III took his oath of office as the new Chairperson of the FDCP.

“One of the things that I revised in the old plan the Met is to go beyond the traditional shows. That’s why we invested a lot on the cinema facility of the Met,” he said.

The theater’s cinema is now equipped with a Dolby Atmos cinema system. Mr. Escalante hopes that more Filipino films and remastered classics will be available for screening.

The ticket prices for shows at the Met, Mr. Escalante said, are targeted to not go beyond four figures.

“It’s never our intention to compete with the Cultural Center. I want to know their priorities and where they are heading to so that we can also plan,” he said.

The CCP has yet to officially announce its new administrators.

REVISING NATIONAL ARTIST RULES
The third priority is the supervision of the awarding grants for NEFCA beneficiaries which will be decided on before the end of the year. The grants will be for implementation in the 2023 fiscal year.

The fourth priority is the proposal to review and revise the rules on the selection of the Order of the National Artists.

“In the course of our deliberation, we were able to identify some areas that need to be reviewed. So, we created a committee [whose] primary purpose is to come up with some proposals on how to enhance the selection process of the National Artist,” Mr. Escalante said.

As for the pandemic recovery of the arts and culture sector, Mr. Escalante said that a dialogue between the agency and the stakeholders is the first step in identifying the best way to help.

Kailangan din naming marinig kung ano ang naging effect sa kanila ng pandemiya at adjustments na kailangan nilang gawin na dapat malaman namin nang sa ganoon ay matugunan namin ang kanilang pangangailangan (We need to know how they were affected by the pandemic to know the adjustments we have to make to provide them of their needs),” he said.

“I hope that stakeholders will also be very open and honest in sharing whatever concern they have,” he added.

Lastly, Mr. Escalante wants to make sure the election of the new chairperson will push through as scheduled in January 2023.

While his office is currently in the planning stage, other priorities include the continuation of the agency’s online programs to gain a wider reach, awareness, and participation; and preparing programs that give focus on the importance of historical research.

As for more long-term projects, he said: “I have things in mind, but I decided to keep it first for myself because I don’t want to be presumptuous.” — Michelle Anne P. Soliman

ADVERTISEMENT
ADVERTISEMENT