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Maskless flyers face $9,000 fines as US FAA tackles unruly passengers 

Los Angeles World Airports/Jacob Brosseau

WASHINGTON — The US Federal Aviation Administration (FAA) on Thursday proposed $531,545 in civil penalties against 34 airline passengers over unruly behavior — with some facing $9,000 fines for defying mask requirements — pushing its total for the year past $1 million.  

The United States has seen a significant jump in reported cases of passengers causing disturbances on airplanes, including ignoring a federal mandate to wear face masks during the coronavirus disease 2019 (COVID-19) pandemic. Numerous videos of confrontations have drawn attention on social media.  

The FAA, which regulates US civil aviation, since Jan. 1 has received 3,889 reports of unruly passengers, including 2,867 reports of people refusing to comply with the mask mandate. In total, the agency has proposed more than $1 million in fines this year for unruly passengers.  

The agency has initiated three times as many such enforcement cases in the first seven months of 2021 compared to all of 2020. The FAA said some passengers were hit with $9,000 fines for not wearing masks, while other maskless people faced higher penalties for engaging in additional onboard bad behavior.  

The Transportation Security Administration on Tuesday said it would extend existing mask requirements for airports, airplanes, trains and transit hubs through Jan. 18.  

FAA Administrator Steve Dickson this month asked US airports to assist in the effort to crack down on disruptive air passengers. Mr. Dickson in March extended indefinitely a “zero tolerance policy” on unruly air passengers. Mr. Dickson noted that alcohol often contributes to unsafe behavior and urged airports to prevent passengers from taking alcoholic drinks on planes.  

American Airlines confirmed on Thursday it would extend a ban on main cabin alcohol sales through Jan. 18.  

Airlines for America, a trade group representing major US carriers, said it appreciates “the FAA’s continued support and enforcement of the ‘zero tolerance’ policy for travelers who do not follow crewmember instructions and who do not abide by federal law.”  

Among new FAA fines announced Thursday:  

  • $45,000 against a JetBlue passenger flying from New York to Florida in May for throwing objects “including his carry-on luggage at other passengers; refusing to stay seated; lying on the floor in the aisle, refusing to get up, and then grabbing a flight attendant by the ankles and putting his head up her skirt.” The passenger was placed in handcuffs and the flight made an emergency landing in Virginia.  
  • $42,000 against a JetBlue passenger on a May flight from New York to San Francisco for failing to comply with the face mask mandate and other misbehavior including “making stabbing gestures towards certain passengers; and snorting what appeared to be cocaine from a plastic bag, which the cabin crew confiscated.” The flight diverted to Minneapolis, where police removed the passenger.  
  • $30,000 against a Frontier Airlines passenger on a January flight from Atlanta to New York who during deplaning “attempted to gain entry to the flight deck by physically assaulting two flight attendants, threatening to kill one of them, and demanding them to open the door.” 

— David Shepardson/Reuters

Indian states preparing for next COVID wave focus on children 

A man carries a filled oxygen cylinder outside a private refilling station, amid the coronavirus disease outbreak, in New Delhi, India, April 19, 2021. — REUTERS/ADNAN ABIDI/FILE PHOTO

MUMBAI — Several Indian states are building facilities with more pediatric beds, plus oxygen, due to concern that children returning to school without being vaccinated will be among the most vulnerable during a third wave of coronavirus infections.  

Health administrators have taken heed of trends in the United States, where a record number of children have been hospitalized as the coronavirus Delta variant, first found in India, has surged through unvaccinated populations.  

During a second wave of infections in India that peaked in April and May, hundreds of thousands of people died for want of oxygen and medical facilities, and now there are concerns that another third wave will gather during the winter months.  

“We don’t know how the virus will behave, but we cannot afford to be unprepared this time around,” said Suhas Prabhu, who heads the Pediatric Task Force in the big western state of Maharashtra.  

“No mother should have to run around looking for a hospital bed when her child is sick.”  

The Maharashtra government has stockpiled medicines, and built facilities for additional pediatric beds and oxygen provisions in new centers in Mumbai and Aurangabad.  

Built on empty stretches of land or in re-purposed stadiums, the Mumbai facilities have a total of 1,500 pediatric beds, most of them with oxygen.  

“We can upgrade this capacity to double if needed,” Suresh Kakani, a senior official with Mumbai’s civic body said.  

In neighboring Gujarat, authorities have set up 15,000 pediatric oxygen beds, health commissioner Jai Prakash Shivahare said.  

India provides vaccines to people above the age 18. Most vaccines administered in India are made by AstraZeneca Plc, while shots produced by local manufacturer Bharat Biotech are also being used.  

Another local firm Zydus Cadilla and Bharat Biotech are separately testing vaccines for children but the results are not expected until the year end.  

Meantime, schools in at least 11 of India’s 28 states have opened after more than a year of closures, raising worries these could become breeding grounds for transmission of the virus.  

As of March 2021, less than 1% of India’s coronavirus deaths were in the under 15 age group, according to the health ministry, and officials say the severity of the disease in this age group has been minimal so far.  

Epidemiologists say there is no evidence to show that the Delta variant or any other mutations affect children more than other parts of the population. — Shilpa Jamkhandikar/Reuters

TECNO Mobile donates cash and smartphones to local community heroes

Ina ng Lupang Pangako Parish Church handover of donations from TECNO Mobile represented by Jason Liang, Brand Director (left) and received by Rev. Fr. Peter Hequillan,CM (right).

The brand’s first CSR campaign celebrates and honors everyday heroes from the three pillars of the community – the local government, civic groups, and the church.

Premium smartphone brand, TECNO Mobile recently completed its first CSR campaign in the Philippines, as a way to give back to the community following the successful release of several new mobile phone models in the country, including the Spark 7 Series, Pova 2 gaming phone, and most recently, the CAMON 17 Series. Through this show of support for the community, TECNO Mobile has become part of the nation’s journey in rising up from life’s challenges, and learning to see the best in every situation. At the same time, the selection of local heroes as beneficiaries for this campaign aligns perfectly with the reel- and real-life heroism of TECNO Mobile’s CAMON 17 brand ambassador, actor Chris Evans.

Three partner beneficiaries representing different pillars of the community were the recipients of donations made by TECNO Mobile for this CSR campaign – Ina ng Lupang Pangako Parish, Project Malasakit, and the City of Manila through the Office of Mayor Isko Moreno. Separate handover ceremonies were held for each of the beneficiaries, the first of which was held on July 13th, at the Ina ng Lupang Pangako Parish Area.

In the middle of Bgy. Payatas, an area deemed a hazardous place to live due to its proximity to an open area for solid waste disposal, you will find the Ina ng Lupang Pangako Parish. This church’s leaders and volunteers provide educational and livelihood opportunities for the urban poor community living in Payatas, funded by donations from different entities. For its own CSR campaign, TECNO Mobile, represented by TECNO Mobile Limited’s Brand Marketing Director for Philippines, Jason Liang, donated Php 100,000 to the parish, along with 10 smartphones to be shared with hardworking parish volunteers, who tirelessly organize and facilitate activities such as community pantries, counseling, webinars, and online masses. The donations were received by Rev. Fr. Peter Hequillan,CM.

The second handover ceremony also took place on July 13th, at the Tikme Dine restaurant in Quezon City, this time with Project Malasakit as the beneficiary. Project Malasakit is a scholarship program whose mission is to bridge the gap between Filipinos who want to help, and Filipino children who need the assistance. Its goal is to provide these children with proper education, enabling them to change their own lives for a better future. 30 TECNO Mobile smartphones, plus Php 100,000 were given to Project Malasakit by TECNO Mobile Limited’s Brand Marketing Director for Philippines, Jason Liang, graciously received by its founder, Kara David, together with two of her scholars, Lilian Ambrocio and Mauwe Liwanag.

Project Malasakit receiving donations from TECNO Mobile. From left, Jason Liang TECNO Mobile Brand Director, Mauwe Liwanag, Kara David – Project Malasakit Founder, and Lilian Ambrocio.
TECNO Mobile Brand Director, Jason Liang with Project Malasakit Scholar, Mauwe Liwanag
Project Malasakit Scholar, Lilian Ambrocio

The final donation handover took place on August 6th at the Office of Manila City Mayor, Isko Moreno. Mayor Isko is known for his service to the local community, aided by his team of volunteer workers who man community hotlines, respond to reports, handle coordination for projects such as the recent vaccine rollout, and work at the local public school as teachers. For these community heroes, TECNO Mobile has donated 50 smartphones, and Php 200,000 through the mayor’s office. The donation was handed over by the TECNO Mobile Limited executives for the Philippines, headed by Lindsay Guan, CEO, and received by Manila City Mayor, Isko Moreno.

TECNO Mobile executives with Manila City Mayor during handing over of donations. From left, RJ Decilio (Channel Sales Director), Ian Ouyang (CEO, QStar Mobile Inc), Mayor Isko Moreno, Lindsay Guan (CEO for Philippines, TECNO Mobile), Jason Liang (Brand Director)

TECNO Mobile’s CSR campaign was kicked-off with an online photo exhibit, which featured thought-provoking images that capture the beauty of life, taken by top local photographers using CAMON 17 smartphones. A selfie advocacy campaign was also launched, encouraging the online community to get involved by sharing their own selfies for a cause. Anyone can join by simply posting a selfie on Facebook, which features their advocacy. The photo must include a caption with a brief description of the advocacy, along with the hashtags #TECNOMobileCares, #CtheBestofYou, and #SelfieAdvocacy. The best photo and caption will be selected by TECNO Mobile representatives, and the winner will be awarded a CAMON 17 smartphone.

To stay updated on the latest news about the CAMON 17 series, as well as exclusive deals and promos from TECNO Mobile, be sure to like and follow TECNO Mobile Philippines. Visit www.tecno-mobile.com/ph to learn more about your favorite smartphones and gadgets.

 

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Fresh batch of MVP Group-procured vaccines ramp up inoculation amid Delta surge

MVP Group opens its fourth mega vaccination site in NCR+ for its employees in its continuing drive to inoculate staff and protect them against COVID-19. Among those present at the opening of the Smart Tower vaccination site in Makati were (L-R): Makati Medical Center (MMC) Nurse Team Co-Lead Alex Sangoyo, MVP Group Vaccine Task Force Co-Chairperson and PLDT and Smart Chief People Officer Gina P. Ordonez, overall Vaccination Program Coordinator for MMC Dr. Rosario Neri, PLDT and Smart President and CEO Alfredo S. Panlilio, MMC Nurse Team Co-Lead Julius Vinluan, and Smart Tower Vaccination Site Lead and Smart VP for People Group Rowena Reloj.

The MVP Group inoculates more employees amid the Delta surge, with its latest arrival of a fresh batch of vaccines.  The arrival of more vaccines paved the opening of its fourth NCR mega vaccination site, the Makati headquarters of Smart Communications Inc. (Smart).

The Vaccine Task Force of the group of companies chaired by business leader Manuel V. Pangilinan says the latest batch of vaccines puts it on course for inoculating all its people.  The conglomerate previously announced that it ordered vaccines from Moderna and Astra Zeneca enough for more than 300,000 employees, dependents and household members, and the Group’s extended workforce.

The activation of Smart Tower as a vaccination site was made possible with the help of the City Government of Makati.

Describing the COVID-19 health crisis as a painful period for all, PLDT Inc. and Smart Communications President and CEO Alfredo S. Panlilio regards the arrival of more vaccines for the MVP Group as a ray of hope.  “I believe that the sooner we get these vaccinations done, the more lives we will be able to save, and the quicker we can revive our economy and recover as a nation,” he shared.

With forthcoming regional vaccinations, the conglomerate’s Vaccine Task Force is looking at a network of over 30 locations for inoculations nationwide.

The first arrival of company-procured Moderna vaccines end-June 2021 allowed the conglomerate to begin vaccinations of non-medical employees at pilot NCR megasites first week of July. Vaccination rates for pilot sites reached as much as 1,350 jabs per day.

True to its core value of malasakit, the PLDT Group continues to inoculate more employees under the massive MVP Group We Got Your Vac Vaccination Program. The Makati head office of Smart Communications Inc. is one of the five NCR+ mega sites that will administer vaccines for 60,000 conglomerate-wide employees.

MVP Group vaccination sites are manned mainly by frontliners from the MVP Group’s own Metro Pacific Hospitals Holdings Inc. (MPHHI), the country’s largest private hospital chain. Up to 98% of frontliners from MPHHI’s largest hospitals were vaccinated as early as March 2021, including those from Smart Tower’s healthcare partner, Makati Medical Center. MMC personnel are reinforced by Smart employee volunteers who facilitate key non-medical processes at the Group’s Makati site.

The continuous arrival within August of the MVP Group’s remaining vaccine orders will ramp up vaccinations for more employees rendering essential work amid the pandemic. In the case of Smart and its parent company PLDT Inc. (PLDT), these include field personnel in the networks, installs and repairs, sales groups, and all employees committed to delivering service as demand for connectivity continues to soar to unprecedented levels.

“PLDT is a customer-centric company with a people-first culture. The health and safety of our people is priority number one,” Panlilio said.

The opening of the Smart Tower vaccination site follows the launch of a consumer program under Ingat Angat Bakuna Lahat, dubbed as Smart Bakuna Benefits. Aimed at giving people additional incentives to get vaccinated, one simply needs to present a vaccination card after getting inoculated to avail of exclusive deals from over 150 participating retail establishments nationwide.

 

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.

S&P lowers Philippine growth target anew

Metro Manila is under an enhanced community quarantine until Friday, when President Rodrigo R. Duterte will announce the new quarantine restrictions. -- Philippine Star/Micahel Varcas

S&P GLOBAL RATINGS downgraded its Philippine growth outlook to 4.3% for 2021, warning that the ongoing coronavirus pandemic and stringent lockdown measures will likely stifle its economic growth potential in the next four years.

This latest estimate is sharply lower than the 6% gross domestic product (GDP) growth projection it gave in June, the debt watcher said in a note on Thursday.

“The longer downturn will cause even more economic scarring. By 2025, the Philippines’ GDP will likely be 12% below where it would have been without the pandemic,” Vincent Conti, senior economist for Credit Markets Research at S&P, said.

S&P released its new growth outlook for the Philippines a day after the government cut its full-year growth target to 4-5%.

The Development Budget Coordination Committee had said that without the current spike in coronavirus disease 2019 (COVID-19) infections and the more stringent lockdowns, the previous 6-7% GDP growth target was achievable.

The Philippine economy was expected to rebound strongly this year, mainly on base effects after GDP contracted by a record 9.6% in 2020.

“The combined hit to activity from floods in parts of the Philippines and fresh lockdowns to contain the pandemic has significantly eroded what would have been a highly favorable base effect for the country,” Mr. Conti said.

The economy exited recession in the second quarter, growing by 11.8% year on year but falling 1.3% on a seasonally adjusted quarter-on-quarter basis. For the first half, GDP rose by 3.7%.

Socioeconomic Planning Secretary Karl Kendrick T. Chua had said the economy has to grow by at least 4.3% in the second half to reach the low end of the revised target, and by 6.3% to achieve the high end of the growth goal.

Meanwhile, S&P expects a faster 7.7% GDP growth in 2022 from 7.5% previously. This is within the government’s 7-9% target for 2022.

By 2023 and 2024, S&P forecasts the economy to grow by 7.4% and 7.3%, respectively.

“Emerging Southeast Asian economies are facing intense headwinds from persistent coronavirus disease 2019 pandemic waves. The duration and severity of the pandemic has been more adverse than our previous baseline expectations,” the report said.

Under S&P’s new projections, Vietnam is seen growing by 4.8% this year. Meanwhile, Malaysia (3.2%) and Thailand (1.1%) are expected to expand at a slower pace than the Philippines.

“As the pandemic drags on, balance sheets will deteriorate for households, small and midsize enterprises, banks, and the wider economy, leading to more medium-run economic scarring,” S&P Asia Pacific economist Vishrut Rana said.

Metro Manila is under an enhanced community quarantine until Friday, when President Rodrigo R. Duterte will announce the new quarantine restrictions.

The Health department on Thursday recorded 14,895 new COVID-19 cases, bringing the active cases to 111,720. This is the second-highest daily increase in infections since the start of the pandemic, Reuters reported.

S&P’s Mr. Conti said the lockdown restrictions will continue to affect consumption and investments.

“The escalated restrictions on mobility will inevitably impact consumption the most, with some secondary impacts on investment. In terms of sectors, face-to-face services continue to be the most disadvantaged, but this will also have some impacts on construction activities,” Mr. Conti said in an e-mail.

In May, S&P maintained the country’s “BBB+” rating with a “stable” outlook, citing expectations for a “healthy” economic recovery that will help the country improve its fiscal standing.

In a separate report, Moody’s Analytics noted how restriction measures in some Southeast Asian economies have not been able to control the Delta-driven outbreaks, threatening the recovery outlook.

“In severely impacted countries such as Malaysia and the Philippines, restrictions have lacked effectiveness in containing outbreaks, thereby mandating an extension of inhibiting curbs,” Moody’s Analytics economist Shahana Mukherjee said in a note on Thursday.

Moody’s Analytics last week revised their growth projection for the Philippines this year to 4% from 4.9% previously.

With the surge in cases, many Asian countries have sought to pick up the pace of its vaccination rollout.

“But even with this step-up in momentum, policy shifts in vaccine preference and supply issues are significant binding factors that will moderate the region’s progress and delay the timing of reaching herd resilience,” Ms. Mukherjee said.

Only 11.81% or 12.88 million of the Philippine population have been fully vaccinated, based on data released by the Palace on Thursday.

The government targets to have 70 million Filipinos fully vaccinated this year.

PHL allocates P45B for booster shots

As of Thursday, the government said 12.88 million or 11.81% of the Philippine population have been fully vaccinated against COVID-19. -- Photo by Michael Varcas, The Philippine Star

THE Philippine government is setting aside P45.37 billion for coronavirus disease 2019 (COVID-19) booster shots under the proposed 2022 national budget, the Palace said on Thursday.

This as the country’s vaccine experts have yet to recommend booster shots for fully vaccinated individuals, and as the vaccine rollout continues at a sluggish pace due to lack of adequate supplies.

“In the 2022 budget, we have a budget entry for booster shots for all Filipinos… The amount of funding for booster shots is P45 billion,” Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said in a televised briefing.

Funds for the procurement of booster shots will be included in the proposed P5.024-trillion national budget for 2022, which will be submitted to Congress on Monday.

However, the budget for the booster shots would only be funded if the government would be able to raise enough money for it, Mr. Roque said.

Mr. Roque did not give details on how many vaccine doses or which brands will be used as boosters.

The Philippines has approved the emergency use of eight COVID-19 vaccines, including those by Pfizer-BioNTech, AstraZeneca, Moderna, Sputnik, and Sinovac.

Earlier in the day, Health Undersecretary Myrna C. Cabotaje said Health authorities have yet to give a “firm recommendation” on whether fully vaccinated individuals should receive booster shots.

They are also still studying what would constitute a top-up shot, she told a virtual news briefing.

The United States earlier said it would give booster shots to its adult citizens eight months after they have been fully vaccinated against the coronavirus.

The World Health Organization has said current data does not indicate that booster shots are needed, noting that vulnerable people worldwide should be fully vaccinated first before developed countries administer extra doses for those already fully inoculated against COVID-19.

As of Thursday, 12.88 million or 11.81% of the Philippine population have been fully vaccinated.

The Health department on Thursday also reported 14,895 new COVID-19 cases, bringing the active cases to 111,720.

PANDEMIC RESPONSE

At the same briefing, Mr. Roque said around P240 billion will be allocated for country’s pandemic response under the 2022 national budget.

Of this amount, P99.2 billion will be used to fund the Department of Education’s blended learning programs, he said.

The Department of Health will receive P93.79 billion for its health facilities, programs against communicable diseases, procurement of health supplies, emergency hiring of health personnel, among others, he added.

The Department of Labor and Employment would receive P33.63 billion for its programs for distressed workers, while the Overseas Workers Welfare Administration would receive P11.29 billion for the repatriation and reintegration of migrant Filipino workers, Mr. Roque said.

The Department of Social Welfare and Development will be given a P11.52-billion budget, while Trade department will receive P1.20 billion for its livelihood programs.

The Palace official said P1.28 billion will be earmarked for the establishment of the Virology Science and Technology Institute of the Philippines and pandemic-related initiatives of the Department of Science and Technology.

The University of the Philippines will get P140 million for its genomic information and resource hub, he added.

Homesick Filipinos defer sending boxes home amid coronavirus upheaval

A Customs inspector looks at balikbayan boxes at a warehouse. -- Courtesy of Bureau of Customs

MYCELLE B. MARQUEZ, 31, said it would be her first Christmas without sending a balikbayan box to her family in South Cotabato since she started working as a saleslady in Brunei in 2013.

“I usually send canned goods, clothes and chocolates that are not available in the Philippines,” she said by telephone. “This year, I won’t be able to send a box. I’m worried it will take too much time to arrive because of coronavirus lockdowns.”

Ms. Marquez said the last time she sent a balikbayan box — a carton of food, clothing, toys and household products shipped by a migrant Filipino worker to his family back home — was in October. The repatriate box arrived home in January amid a coronavirus pandemic.

The resurgence of coronavirus infections has driven global supply chains toward breaking point, threatening the flow of raw materials, parts and consumer goods.

Philippine inbound foreign cargo throughput in the fourth quarter of last year was 23.873 million metric tons, down from the pre-pandemic level of 25.376 million metric tons a year earlier, according to data from the Philippine Ports Authority.

The country’s inbound foreign cargo throughput hit 24.771 million metric tons in the second quarter, better than 18.226 million metric tons a year earlier.

Balikbayan boxes barely increased between 2019 and 2020, Customs Assistant Commissioner Vincent Philip C. Maronilla said by telephone.

Apart from global logistics nightmares, rising joblessness among migrant workers means fewer goods being sent home, he pointed out.

“It’s expected because a number of overseas Filipino workers (OFW) lost their jobs due to the pandemic,” Mr. Maronilla said.

Labor Secretary Silvestre H. Bello III last week said 641,717 OFWs have come home during the global health crisis, though some of them are here to visit their families.

CONTAINER CRISIS

The United Nations Conference on Trade and Development said in a policy brief in April that containers and container ships were in short supply.

“The increase in demand was stronger than expected and not met with a sufficient supply of shipping capacity,” it said. “The container crisis is also a reflection of a slowdown in and delays across the maritime supply chain due to strains caused by the pandemic.”

Logistics company DHL in a market update this month said carriers from North America “are still limiting the space back to Asia.” It also cited an increase in shipping rates. “Space and equipment shortage at Asia ports remains for the month of August,” the company said

“Delays are expected as schedule reliability is at an all-time low,” it also said, noting that bookings would have to be made three to four weeks in advance.

Many economies around the world including the Philippines are struggling to contain a fresh surge in coronavirus infections spurred by a more contagious Delta variant and amid a slow vaccine rollout. Governments are reimposing tighter community quarantines.

“The situation in Asia is disrupting global manufacturing supply chains, with shortages and lengthening delivery times adding to inflation pressures,” DHL said.

Atlas Shippers, which delivers balikbayan boxes to the Philippines, in March said it had experienced delays in getting its cargoes processed at the ports of Long Beach and Los Angeles. It said the influx of cargoes to the US had created congestions, with ships waiting for berth space to dock.

“The COVID-19 pandemic has exacerbated this problem with a lot of workers getting sick from the virus,” the company said in a statement.

“Cranes unloading and loading the ships cannot catch up with the manpower not at 100%. A bottleneck has developed at the port and port authorities have reported that there is no sign of improvement in the next few weeks,” it added

LVM Cargo, which ships from the Netherlands, Belgium and west Germany to the Philippines, in July said Christmas shipments have started early this year “due to the worldwide delay in container shipments.”

It has advised clients to ship their boxes early if they wish these to arrive by yearend, with more delays expected from August to October.

Freight forwarding companies should be able to adjust the timeframe for shipments, Laban Konsyumer President Victorio A. Dimagiba said in a mobile phone message.

“In normal times, it’s maximum of 60 days from North America and shorter from Europe,” he said. “I would advise them to double that timeframe.”

Jovann Eve L. Tadena, a 35-year-old teacher working in Jordan, said she and her friend would be sending one balikbayan box for the Christmas holidays, but they will do it much earlier.

“We are planning to send the box in the last week of August or first week of September,” she said by telephone. “Normally, you need 60 days to send a box home.”

Cecille Castillon-Weinstein, 32, said she might just visit home this Christmas and take the presents with her instead of sending them in a balikbayan box. “Based on my experience, service really depends on the freight company that you use.”

PASALUBONG

Pasalubong is a very ancient practice of Filipinos,” Nestor T. Castro, an anthropology professor at the University of the Philippines-Diliman, said by telephone.

“It’s been there even before the Spanish colonizers arrived because early Philippine societies practiced long-distance trade with Thailand, Vietnam and China,” he said. “When our seafarers came back home, they brought with them prestige items that were not found in the Philippines.”

“There were many items like artifacts of Buddhist origin even if the Philippines did not convert to Buddhism or Hinduism,” Mr. Castro said.

Imported items were called pasalubong, while exported goods were called pabaon. The pabaon concept is also part of end-of-life rites for some Filipinos, he said, noting that the dead brought objects they deemed precious to the grave.

Mr. Castro said the practice was further institutionalized by Filipinos’ colonial mentality. “They perceive that everything that is imported is more highly valued.”

The balikbayan box is a relatively new concept of pasalubong introduced by the government because it makes it easier for Filipinos overseas to send items home no matter what the size is, as long as they fit in the box.

Sending balikbayan boxes as part of the Christmas celebration is related to gift-giving, which was introduced by the Spaniards who brought Christendom to the Philippines, Mr. Castro said.

“Some OFWs who have been away for a long time try to compensate and show their love through material things,” he said.

Disruptions brought by the pandemic won’t be enough to erase such practices.

“Filipinos always look forward to when the situation will get better. This pandemic may have dragged on for two years already, but Filipinos are still very optimistic that we will recover,” he said.

Ms. Tadena, the Filipina in Jordan, said sending gifts to her family may be unnecessary but it makes them happy.

Ms. Weinstein, the Fil-Am businesswoman in New York, said: “It makes me happy when I see them on social media using the clothes, bags, or shoes that I sent them. It makes me feel like I’m right there with them.”

Brunei-based OFW Ms. Marquez thinks that what matters most this year is that her family will have food on the table during the pandemic

“I will send money instead,” she said. “The balikbayan box might take too long to arrive.”

Gov’t can afford to ramp up stimulus, economists say

THE government should tap the huge war chest built up during the pandemic and ramp up its stimulus spending to speed up the economy’s recovery, analysts said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said on Thursday said that the National Government has a “whopping” P1.6 trillion in its demand deposit account, or the Treasury single account (TSA), “sitting idly” in the central bank that can be tapped.

He said the existing balance in the TSA has been built up to an all-time high in July during the pandemic from just P200 billion in 2019, when the state delivered a huge, last-minute spending push to end the year.

“It appears that the National Government has been ‘warchesting’ and building up quite a huge amount of funds. However National Government expenditures remain modest while growth momentum stalls anew,” Mr. Mapa said in a note to journalists sent via e-mail.

He estimated the balance of the account nearly matches the excess liquidity in the financial system that is going nowhere with bank lending still muted.

“With growth momentum faltering, calls for an aggressive fiscal fight back have been mounted time and again with authorities oftentimes citing the lack of funding for any such additional spending or a third round of Bayanihan,” he said.

The government has ramped up borrowings to fund its ballooning spending plan and make up for lower tax collections since last year, pushing its debt pile to an equivalent of 60% of gross domestic product (GDP)  as of end-June.

“And yet the reason cited by authorities remains the same: there are no funds,” Mr. Mapa added.

The monetary stimulus unleashed by the central bank needs to be supported by another round of fiscal stimulus to restore the economy, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

“It looks like BSP [will be] on hold for longer but monetary stimulus will likely need a complementary fiscal push. This could come by way of a third stimulus package that could help shore up households’ and businesses’ demand for goods and services as we slowly recover,” he said.

The Bangko Sentral ng Pilipinas has assured it will “continue to do what is needed for as long as necessary — until there is hard evidence of full recovery.”

In early June, the House of Representatives approved a P401-billion stimulus under House Bill 9411 or the Bayanihan to Arise as One Act (Bayanihan III). Its counterpart measure is still pending at the Senate committee level.

Finance Secretary Carlos G. Dominguez III in a Viber message to reporters on Thursday said the reserved funds in the TSA is enough to pay for the programmed spending of government agencies.

“We are prepared as the agencies ramp up their spending activities and for timely payment of our obligations as they fall due,” he said.

Latest budget data showed state agencies, including those released to local government units, used 89% of the notices of cash allocation (NCAs) issued to them in the seven months to July, or P2.127 trillion utilized out of P2.381 trillion released during the period.

While the utilization rate was higher than the 76% usage rate seen in the same period last year at the height of the pandemic, agencies still recorded P253.41 billion in unused NCAs — the disbursement authority issued to state agencies allowing them to withdraw funds from the Treasury to pay for their projects and programs.

Actual spending by the National Government also fell short of its target in the first half based on a separate data from the Treasury. Overall government spending went up by 9.6% year on year to P2.206 trillion in the first half, but missed its P2.44-trillion target for the period by 10%.

Meanwhile, its debt stock climbed by 0.9% to P11.166 trillion as of end-June, or equivalent to 60.4% of GDP, hitting the 60% threshold which rating agencies consider as manageable debt level.

The Development Budget Coordination Committee on Wednesday cut the growth target for the year to 4-5% from 6-7% due to the renewed lockdowns and the recent surge in coronavirus infections.

Mr. Mapa said they are expecting an even slower 3.8% expansion for the entire year as the lockdowns hamper household consumption and investments and government continues to rein in spending.

PH Resorts moves to raise capital for casino venture

PH Resorts Group Holdings, Inc. is set to sell shares through a private placement to raise funds for its resort and casino project, the former water company acquired by businessman Dennis A. Uy disclosed on Thursday. 

The placing and subscription transaction will involve the offer of 352,441,000 common shares with a par value of P1 apiece via a private placement. 

The offer shares are owned by Udenna Corp. and will be sold at P1.70 each to qualified buyers. They will be procured by placement agents Unicapital, Inc., Abacus Capital & Investment Corp., and China Back Capital Corp. 

Udenna will then use the proceeds to subscribe to the same number of PH Resorts primary shares for the same price. These will then be the subscription shares. 

“The company shall apply for the listing of the subscription shares with the PSE (Philippine Stock Exchange) as soon as practicable,” PH Resorts said, adding the company does not need to secure other regulatory approvals for the transaction. 

Subscription shares will be issued on or about the closing date when the settlement of the offer shares is expected to occur. 

“The placing and subscription transaction is estimated to close after the approval of the PSE of the special block sale and the cross of the offer shares using the facilities of the exchange, subject to the fulfillment of all conditions precedent,” the company said. 

PH Resorts is expected to raise up to P599.15 million in total gross proceeds from the issuance of the subscription shares to Udenna. 

“The placing and subscription transaction allows the company to raise capital in a most expeditious and efficient manner to partially fund the ongoing construction and development of Emerald Bay Resort and Casino project,” PH Resorts said.  

If PH Resorts does not use the proceeds for the resort and casino project, these will be used for general corporate purposes, the company. 

Following the transaction, Udenna will have an 82.40% stake from 86.59% in the company, with 6,000,237,228 shares. Meanwhile, PH Resorts will have a total of 7,282,017,027 common shares from 6,929,576,027 shares. 

The transaction will increase the company’s public float to 17.5% from 13.3%, while its foreign ownership level will bump up to 4.56% from 3.75%. 

Shares of PH Resorts closed unchanged at the stock market at P1.67 apiece. — Keren Concepcion G. Valmonte 

Aboitiz-led Lima Land to expand industrial estate in Batangas

LIMA Technology Center in Lipa, Malvar, Batangas -- aboitizland.com/lima-technology-center/

LIMA Land, Inc. plans to expand its Batangas estate to over 1,000 hectares in the next decade in a move that could open more opportunities for the company group and the province. 

“In the next 10 years, Lima plans to develop and expand the estate to more than a thousand hectares,” Lima Land Assistant Vice-President for Operations Clifford Academia said in a virtual event on Wednesday. 

Lima Land is the developer and operator of LIMA Technology Center, an economic zone registered with the Philippine Economic Zone Authority. The economic zone in Malvar, Batangas is an industrial park that caters to export-oriented locators in manufacturing and warehousing operations. 

“The transformation of our central business district, our commercial and industrial zones will open up a new wave of opportunities,” Mr. Academia said. 

The company is currently developing over 100 hectares of its 794-hectare LIMA estate for new locators.  

Set to be completed by the third quarter of 2022, the expansion could create 20,000 new jobs in Batangas and nearby areas. 

“In LIMA, we currently have a very diverse set of locators, and also a diverse set of complementing businesses,” Mr. Academia said. 

Lima Land is also redeveloping its 30-hectare business district to house new commercial lots, outsourcing companies, dormitories, and office buildings. Last month, Lima Land announced that it was set to build a seven-tower office complex. 

Lima Land is managed by Aboitiz InfraCapital, Inc. under its Aboitiz Integrated Economic Centers business unit. The Aboitiz group developed the area into a mixed-use estate after acquiring it in 2014. 

Aboitiz Equity Ventures, Inc. (AEV), the listed holding company for the group’s diversified businesses, posted 159% year-on-year increase in its consolidated net income for the second quarter to P4.9 billion. 

Shares in AEV increased by 3.9% or P1.55 to close at P41.30 apiece on Thursday. — Jenina P. Ibañez 

Revenue foregone due to lower tariffs at P2.53B

Customers buy pork at Commonwealth market.

FOREGONE REVENUE following the lowering of tariffs on pork and rice imports this year has amounted to P2.53 billion so far, the Department of Finance said.

The tariff lowering was effected via executive orders (EOs) issued earlier this year as a temporary anti-inflation measure.

Finance Undersecretary Antonette C. Tionko told reporters the government is expecting to forego P5.9 billion in revenue mostly from the pork EO with smaller losses from the rice EO by the time they expire after one year. By the end of 2021 the total is estimated at P5.4 billion.

In May, President Rodrigo R. Duterte signed EO 134 lowering the tariff rates for pork to 10% for three months for shipments within the current minimum access volume (MAV). The rate was set at 20% for shipments falling outside the quota for the first three months. Over the remaining nine months, tariffs were set at 15% for in-quota and 25% for out-of-quota imports.

The government made an initial move to reduce the rates on imported pork in April through EO 128 but this has since been amended by EO 134 after hog growers complained that they risk being swamped by foreign competition.

EO 135, issued in May, temporarily reduced the tariff rates on rice imported from “most favored nation” trading partners to a uniform rate of 35% for both those inside and outside the MAV quota.

The tariffs were lowered in consideration of “the health of the entire economy and the welfare of the people. It’s worth it to lose some revenue so that people’s food costs are not increased. That’s really the justification of that,” Finance Secretary Carlos G. Dominguez III also told reporters.

Inflation eased to a seven-month low of 4% in July, though price growth remained elevated, above the high end of central bank’s 2-4% target range for the year. — Beatrice M. Laforga

MPT South cash payments among users of its toll roads at up to 30%

BW FILE PHOTO

MPT SOUTH Corp. said most toll road users are now using cashless payment systems while up to 30% still use cash.

“The increased adoption of cashless payments and solutions over the past… months has resulted in the majority of our customers now having accounts to pay their tolls electronically,” Roberto V. Bontia said in an e-mailed reply to questions. Mr. Bontia is the president and general manager of MPT South Corp. and its two main expressway companies in the south of the capital — Cavitex Infrastructure Corp. and MPCALA Holdings Corp.

“This adoption of electronic payments will continue and hopefully accelerate the full conversion of the remaining 25%-30% of our customers who are still paying in cash,” he added.

MPT South is a unit of Metro Pacific Tollways Corp. (MPTC), the toll road unit of Metro Pacific Investments Corp. (MPIC).

“Our MPTC Group, despite the difficulties and the extra layers of complexity brought about by the pandemic, has made a conscious decision to continue the toll projects we started, and the ones cleared in the pipeline for implementation,” Mr. Bontia also noted.

He said MPT South and MPCALA are pursuing the completion of the Cavite-Laguna Expressway (CALAX) and C5 South Link and their interconnection to Manila-Cavite Expressway (CAVITEX).

“We expect to fully complete the interconnection of these three toll roads as we get past the pandemic,” Mr. Bontia said.

“The continuation-completion of our construction projects together with our commitment to operate continuously our existing facilities build confidence among our stakeholders and will be key to our recovery,” he added.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group.