Greater role urged for independent directors

July 14, 2021 | 12:07 am

company-official-looking-through-window-office — YANALYA - WWW.FREEPIK.COM

THE role of independent directors in companies or publicly listed companies are said to be important as they do not have any affiliations, therefore always putting forward the needs of the firm.

“The independent director distinguishes himself because he has no hidden agenda to support, except what is good for the company and all of its stakeholders,” Angelica H. Lavares, independent director at Metropolitan Bank & Trust Co. and Prulife UK said during the virtual forum hosted by the Management Association of the Philippines on Tuesday.

Independent directors are able to exercise their judgments freely, guided by their experiences and insights.

Panelists at the forum also said that independent directors should hold the position of chairperson of a publicly listed company.

“My view is that the chairperson of publicly listed companies should be an independent director because that enables him to remain objective in situations when there are conflicts or there are potential conflicts between parties in the organization,” SM Investments Corp. Lead Independent Director Alfredo E. Pascual said.

Former Independent Director and Board Chairman of Philippine National Bank Florencia G. Tarriela said if the chairperson is also an independent director, it allows for the company’s management to be perceived as independent “and there is credibility immediately.”

Companies are reminded to take the time to nominate and get to know who they are putting on the table to be their independent directors.

“I think a lot of companies engage in what I call supply-driven nominations,” said Roman Zyla, senior corporate governance officer and regional corporate governance lead for East Asia-Pacific at International Finance Corp.

“A company will cast a lookout on the market and say, ‘we can get that person, or that person,’ without often spending enough time reflecting on what the company’s real needs are.”

Firms should take into account what their needs are and what they are looking for in a director to help improve how their company is run, he said.

“Independence is a very subjective thing and yet, it’s a critical thing we need at boards more and more,” Mr. Zyla said. — Keren Concepcion G. Valmonte

So, tell me in 140 words or less

July 14, 2021 | 12:06 am

CAST’s latest tackles an extreme situation that limits connections. Sound’s familiar?

DURING the lockdown last year, actor/director Nelsito Gomez was looking for stories about communication and connection; a story that, he said, is “an encouraging response to our reality of being forced to distance ourselves physically from our loved ones.”

When Mr. Gomez read Sam Steiner’s Lemons, Lemons, Lemons, Lemons, Lemons, he thought: “‘Two people thrown into an extreme situation that prevents them from connecting to one another? Sounds familiar!’”

The Company of Actors in Streamlined Theater (CAST) PH will stream a production of Sam Steiner’s Lemons, Lemons, Lemons, Lemons, Lemons at ticket2me.net on July 17, 24, and 31 (7 p.m.).

In the story’s dystopian society, the British government introduces the “Quietude Bill” which mandates every citizen’s speech be limited to 140 words a day. Bernadette (played by Gabby Padilla) and Oliver (Mr. Gomez) strive to handle their relationship under this rule. In a world where anyone can express anything, how effective would it be to communicate effectively by saying less?

Because of the limitations forced on theater groups by the COVID-19 pandemic, CAST PH — which specializes in staged readings (stripped down productions where the cast reads from scripts) — moves into the digital medium and streamlines experience into a theater and film hybrid. The production is done in collaboration with Stages Sessions and Menez Media, with Miguel Jimenez as executive producer and Benjamin Jimenez.

In this production, the two actors will interact in a split screen setup.

“We’re in a black box of sorts, with a carpet as our ‘playing’ area, and two actors ready to share a story, but with cameras thrown into the mix,” Mr. Gomez, who is also co-director of the play, told BusinessWorld in an e-mail.

Instead of regular face-to-face rehearsals, most of the production’s preparation was conducted virtually before meeting to shoot the play on set.

“Most of the work was done on Zoom — it’s the first time I’ve ever rehearsed for a show (and a two-hander at that) online. It had its limitations, but I think because of the nature of Lemons and how minimalistic Nel’s approach was in terms of blocking and stage design, it wasn’t too difficult when we finally transitioned to a physical set,” Ms. Padilla said of the new experience.

“…Especially for a story like Lemons where it’s about a couple figuring out how to manage their relationship through abnormal circumstances, it was a challenge for Gabby and I to develop chemistry on Zoom,” Mr. Gomez said. “But when we finally saw each other in person, it was like being freed from some cyber prison, and we could finally sync our performances and connect in a way that the play calls for.”

With a story that tackles the value of free speech, the lead actors hope that audience realizes the power of communication and silence.

“Being heard and being able to speak up is both a privilege and a responsibility. There is power in words and even silence can be political,” Ms. Padilla said.

For Mr. Gomez, words carry power and responsibility.

“A simple, ‘Hi’ can be very powerful if said at the right moment. Especially in this day, and age of cancel culture and information fatigue, I hope this story makes people re-evaluate how they use their words, whether digital or in person, and choose to use them for good, or for the better,” he said.

After Lemons, Lemons, Lemons, Lemons, Lemons, CAST PH plans to continue telling stories and exploring various techniques to do so.

“The goal obviously is to continue this with different material, experiment with other visual ideas, and open this to many other artists who want to create with us,” Mr. Gomez said.

“It’s hard. I’ll be honest,” he admitted. “But the mantra that got us through all the challenges of Lemons was, ‘We’ll get by with a little faith and imagination.’ And we did! And we hope to keep going.”

Lemons, Lemons, Lemons, Lemons, Lemons streams on July 17, 24, and 31, 7 p.m., at ticket2me.net. Tickets are priced at P200; at https://ticket2me.net/e/33401. For more information about the production, visit www.facebook.com/castphils — Michelle Anne P. Soliman

DoH hospitals to be upgraded into cancer centers

July 14, 2021 | 12:06 am

TWENTY-FOUR hospitals under the Department of Health (DoH) will be upgraded and turned into regional centers for cancer as mandated by the National Integrated Cancer Control Act (NICCA), according to Dr. Beverly Lorraine C. Ho, director for the Disease Prevention and Control Bureau of DoH.

“We will have basic comprehensive centers on a regional level, advanced comprehensive centers on a sub-national level, and a national specialty center on a national level,” said Dr. Ho in the second episode of “Tita Hope Talks,” a cancer conversation series headed by MSD Philippines’ cancer advocacy campaign Hope From Within.

“We’re not building from scratch. These are existing facilities that are actually being upgraded,” said Dr. Ho. The licensing of the cancer facilities, she added, is in its final stages and the investment needs of the project will be presented at the next budget hearing.

The regional cancer centers will support the Philippine Cancer Center, the national specialty center and cancer research institution that will be built in the lot of the Lung Center of the Philippines in Quezon City.

The hospitals are already operational, said Dr. Ho, who added that patients in these facilities are already receiving care and free medicine through DoH’s cancer assistance program. “It’s really the upgrading that we’re planning because that will require huge amounts of budget on an annual basis,” she said.

NICCA, or Republic Act No. 11215, was signed into law in February 2019 to allow the strengthening of essential programs throughout the cancer care spectrum. The system will be a collaboration with local government units and their clinics, DoH and their hospitals, and the Philippine Health Insurance Corporation.

EARLY SCREENING AND DIAGNOSIS
Dr. Guia Elena Imelda R. Ladrera, section head of the Oncology Department of the Lung Center of the Philippines, emphasized the need for early detection to increase a cancer patient’s survival rate.

“As doctors, we might be lacking on educating the general public of the risk of different types of cancer. Without them knowing that, they won’t move forward to seek out screening, so we need to impart that important message across the different sectors of the Philippines,” she said.

Dr. Jorge G. Ignacio, chairman of the Philippine General Hospital (PGH) Cancer Institute, also shared that fewer patients have been going to the hospital, with 20% of cancer patients no longer getting regular treatments at PGH since the pandemic. This has led to reports of their cancers relapsing.

PGH re-mobilized its diagnostic van for breast cancer, which offers on-the-spot mammograms and ultrasounds in Metro Manila and nearby areas. Tests can also be done in laboratory clinics such as Hi-Precision Diagnostics.

Panelists encouraged people to be proactive about their health.

“Patients generally do not get screened because, one, cost — though there are various programs that can address that — and two, education and just not knowing what is available to them out there,” said Amiel Zosimo Herrera, founder and chief executive officer of MedCheck, an e-consult and clinical research company that facilitates telemedicine appointments between physicians and patients.

DoH’s Dr. Ho added: “In healthcare, we are drawn to the bottom 20%, which is healthcare for when we actually feel something wrong, but 80% of the health of our population is shaped by socioeconomic factors, the physical environment, and our health behaviors. … We should be health literate, knowing symptoms and knowing when to visit our physicians.” — Brontë H. Lacsamana

Megawide sees opportunity in horizontal infra

July 14, 2021 | 12:06 am

MEGAWIDE Construction Corp. sees potential in horizontal construction, as demand for vertical infrastructure is expected to decline as a result of the pandemic crisis.

“The company… believes that an emerging opportunity lies in the horizontal infrastructure space, particularly rail networks, as property consultants expect private sector vertical developments to face soft demand due to the economic slowdown,” Megawide said in a statement on Tuesday.

Megawide is keen on taking part in the Metro Manila Subway and the North-South Commuter Railway (NSCR) South Line projects.

“Our current exposure in the Malolos-Clark Railway Project allows us to gain experience in elevated railway systems civil works. If we can secure packages in both the NSCR South Line and the Subway projects, [we will have] building blocks to develop our competencies in at-grade and underground rail developments, respectively,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

Mr. Saavedra announced at Megawide’s annual stockholders’ meeting on June 30 that the company intends to participate in three to four contract packages of the Metro Manila Subway project and another three to four contract packages of the NSCR South Line project.

“The risks associated with these ventures are well covered financially while execution risks are addressed by the expertise and experience of the participating bidders,” the company said.

The company also noted that it expanded its presence in the horizontal housing and commercial development segments after winning new contracts worth P1.24 billion in the first quarter, bringing its order book to P66.1 billion.

Megawide also expects its precast unit to become a significant contributor to its business.

“We are ramping up our precast capacity because we believe in its numerous applicability, especially in the residential and infrastructure space,” Mr. Saavedra said. “The long-term goal is to transform this support service into a significant contributor to our business, given its various applications and suitability to the current industry demands.”

The company operates an industrial facility in Taytay, Rizal, housing its two precast factories.

Megawide’s first-quarter attributable net income stood at P2.85 million, down from P200.94 million in the same period in 2020. Total revenues fell 22.8% to P3.83 billion from P4.96 billion previously.

Megawide shares closed 1.33% lower at P6.68 apiece on Tuesday. — Arjay L. Balinbin

Theater actress Celia Diaz Laurel, 93

July 14, 2021 | 12:05 am

A LITTLE more than a month after launching a book on her life in the theater, actress, singer, and painter Celia Diaz Laurel passed away on July 12, 8:30 p.m. She was 93 years old.

Celia Diaz Laurel was born on May 29, 1928 in Talisay, Negros Occidental. In a career spanning six decades, Ms. Diaz Laurel was known as a versatile stage actress, painter, set and costume designer, and writer.

She began acting during her elementary years in Assumption in Manila. She studied Fine Arts at the University of the Philippines where she was mentored by National Artists for Visual Arts Fernando Amorsolo and Guillermo Tolentino.

Her first major role was at the age of 19 when Russian-American director Sonia Rifkin tapped her to play Adela in The House of Bernarda Alba by Spanish dramatist Federico Garcia Lorca.

She went on to pursue a Masters in fine arts at Yale University, joining her husband Salvador “Doy” Laurel (who was later to become Vice-President of the Philippines) who was working on his master’s degree in Law at the same university at that time. Ms. Diaz Laurel later detoured to the Yale School of Drama following an impressive interview conducted by a school official.

She joined Repertory Philippines in 1968, where she did nearly 60 plays and worked as an actress starring in The Sound of Music, My Fair Lady, and The King and I; as set designer in Evita, Sweeney Todd; and costume designer for Joseph and the Amazing Technicolor Coat, Camelot, and Pippin. Forty-seven of the plays she worked on were directed by Rep founder Zeneida “Bibot” Amador.

In 2016, she was the recipient of Philstage’s Natatanging Gawad Buhay for Theater.

In a Facebook post, her granddaughter, singer Nicole Laurel wrote: “…Life with you, Lola is beautiful simply because you are in it, your smile, laughter, beauty, kindness, wisdom, love for the arts, love for life, grace and warm embrace are like no other. Thank you for teaching us, nurturing us and loving us… you are the most giving and forgiving person I have ever been blessed to know. Our love for the arts is all because of you…”

In celebration of her 93^rd birthday on May 29, Ms. Diaz Laurel launched My Lives Behind the Proscenium, a book dedicated to the people who she considered as having contributed to her growth as a person and as an artist.

She is survived by her children Suzie, Lynnie, Cocoy, David, Larry, and Iwi. — MAPS

US officials say fully vaccinated don’t need booster

July 14, 2021 | 12:05 am

800px-Pfizer-BioNTech_COVID-19_vaccine_(2020)_E — Image via US Secretary of Defense/CC BY 2.0/Wikimedia Commons

WASHINGTON — US health officials, after meeting with vaccine maker Pfizer reiterated on Monday that Americans who have been fully vaccinated do not need to get a booster shot, a spokesperson for the Health and Human Services (HHS) Department said.

Pfizer said last week it planned to ask US regulators to authorize a booster dose of its coronavirus disease 2019 (COVID-19) vaccine, based on evidence of greater risk of infection six months after inoculation and the spread of the highly contagious Delta variant.

HHS officials had a briefing from Pfizer on Monday regarding their latest, preliminary data on vaccinations and will continue to discuss when and if booster shots will be needed in the future, the spokesperson said.

Pfizer said it planned to publish “more definitive data” in a peer-reviewed journal.

“Both Pfizer and the US government share a sense of urgency in staying ahead of the virus that causes COVID-19, and we also agree that the scientific data will dictate next steps in the rigorous regulatory process that we always follow,” said Pfizer spokesperson Sharon Castillo.

The spread of the Delta variant, first detected in India and now the dominant form of new coronavirus infections in many countries, has raised concerns over whether available vaccines offer enough protection. Several experts say a booster shot would be warranted if there is a substantial increase in hospitalizations or deaths among vaccinated people.

For its part, the World Health Organization said on Monday that rich countries should not order booster shots for their vaccinated populations while other countries have yet to receive COVID-19 vaccines. — Reuters

TCS, Converge partner for customer services

July 14, 2021 | 12:05 am

GLOBAL information technology services provider Tata Consultancy Services (TCS) has partnered with Converge ICT Solutions, Inc. to enhance the local internet service provider’s customer experience.

Converge and TCS, which provides consulting and business solutions, said in an e-mailed joint statement that the partnership will help the fiber internet service provider simplify business processes, speed up product innovation, and personalize customer engagement.

“In partnership with TCS, Converge has embarked on a major business transformation journey, to build a flexible and future-ready digital core to offer new and enhanced digital services to its customers,” they said.

“Central to this transformation is TCS HOBS, a plug and play digital business platform for subscription, device and data management offered in a SaaS (software as a service) model, that will help Converge reimagine customer journeys with simplified processes and hyper-personalization based on customer lifetime value.”

The business transformation will be carried out using TCS’ Location Independent Agile model leveraging TCS Jile, which is an on-the-cloud enterprise Agile DevOps platform.

The platform allows software teams to manage, automate and measure the end-to-end software delivery value stream from ideation to deployment.

Converge Chief Executive Officer and Co-Founder Dennis Anthony H. Uy said the company must ensure that its operations and internal processes “can scale to address future growth so that our customers continue to experience better.”

For his part, Shiju Varghese, country head at TCS Philippines, said: “We will use our deep domain knowledge, expertise in digital technologies, and investments in innovation and intellectual property to help Converge accelerate its transformation journey.”

Converge aims to link more than half of Philippine households to its pure fiber connectivity by 2025.

The company’s fiber optic network has reached over seven million or 28% of total household as of March.

Converge shares closed 1.07% higher at P23.60 apiece on Tuesday. — Arjay L. Balinbin

Treasury partially awards bond offer as rate rises on Fitch move

July 14, 2021 | 12:04 am

THE BUREAU of the Treasury partially awarded its offer of fresh 20-year bonds as the tenor’s rate climbed following Fitch Ratings’ revision of the country’s outlook. — BUREAU OF THE TREASURY FB PAGE

THE GOVERNMENT made a partial award of its offer of fresh Treasury bonds (T-bonds) on Tuesday as the tenor’s rate increased following Fitch Ratings’ revision of its outlook on its assessment of the country to “negative” from “stable.”

The Bureau of the Treasury (BTr) raised just P16.799 billion via its offer of fresh 20-year T-bonds on Tuesday, less than half of the programmed P35 billion.

This, even as total bids for the bonds reached P63.069 billion, making the offering almost two times oversubscribed.

The notes fetched a coupon of 5.125%, higher by 15.7 basis points against the 20-year tenor’s 4.968% rate at the secondary market prior to the auction, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Had the BTr made a full award of its offer on Tuesday, the 20-year T-bonds would have fetched an average rate of 5.184%.

National Treasurer Rosalia V. de Leon said in a Viber message that rate of the 20-year tenor increased due to the bond’s “duration and liquidity premium.”

She, however, noted that the uptick was till aligned with the movement of bond yields at the secondary market.

A bond trader said by phone that the market became cautious after global debt watcher Fitch Ratings on Monday revised its outlook for the Philippines’ debt to “negative” from “stable.”

The move caused debt rates to increase when the market opened on Tuesday, the trader said.

Fitch on Monday maintained its investment grade “BBB” credit rating for the Philippines but revised its outlook to “negative” from “stable” due to the impact of the prolonged coronavirus pandemic.

The “negative” outlook means Fitch may downgrade the Philippines’ credit rating if it reverses reforms or departs from the prudent macroeconomic policy framework that leads to continued higher fiscal deficits. A weaker macroeconomic outlook over the medium-term and “diminishing policy credibility may also lead to a downgrade.

Fitch has kept the Philippines’ rating at “BBB,” which is one notch above the minimum investment grade, since December 2017.

The trader added that the depreciation of peso against the greenback has also put pressure on government debt yields. The peso is now trading at the P50-per-dollar mark. It closed at P50.12 versus the greenback on Monday, which was its weakest showing in more than a year.

Moving forward, the trader said bond yields could move sideways with an upward bias over the near term as investors wait for the release of more economic data, which could give the market an idea of the pace of the country’s recovery.

The Treasury is looking to raise P235 billion from the local market this month: P60 billion via weekly offers of Treasury bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — B.M. Laforga

Retro and vintage furniture in weekend auction

July 14, 2021 | 12:04 am

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FURNITURE from the collection of Ken and Isa Mishuku, the couple behind the midcenturymanila Instagram page, are the focus of Leon Exchange’s online auction, Midcentury Manila, on July 18.

All bidding for the authentic retro and vintage furniture and accessories will be done purely online at www.leonexchange.com.

Among the couple’s top picks from the over 100 lots that will be auctioned online this coming Sunday are:

The CH07 Shell Chair (H: 29,” W: 36,” D: 32.6”). Originally designed in 1963 by Danish modernist icon Hans J. Wegner and made by Carl Hansen & Son, this chair is painted in glossy cream and red and has a convex 14-inch seat.
The Tongue Chair (H: 25,” W: 35,” D: 39”) designed in 1967 by French furniture and interior designer Pierre Paulin for Artifort. This chair came to fruition in the 1960s at a time when the sexual revolution had already gained its foothold and conversation pits and low-slung furniture encouraged people to explore new ways to use floor spaces.
Crafted by Japanese Modernist Isamu Kenmochi for Tendo Mokko, a Japanese furniture maker specializing in fine furniture, the Rosewood Coffee Table (H: 13.5,” L: 52,” D: 36”) has an earthen tone furnish with curved foundations.
A vintage fiberglass Pastil Rocking Lounge Chair (H: 53 cm, W: 92 cm, Depth: 92 cm) from the Space Age bears resemblance to a giant Skittles candy. It was designed by Finnish interior designer Eero Aarnio for Asko in 1968 for the purpose of fitting it into the empty cushioned space of his iconic ball chair.
The Sculpta “Star Trek” Chairs” (H: 38” W: 21.5,” D: 18,” Seat: 19”) is a set of four tufted black vinyl and aluminum chairs called designed in the 1960s by American mid-century modern and contemporary furniture designer Vladimir Kagan for Chromecraft. These are also known as the “Star Trek chairs” due to their appearance on set in the episodes “Spocks Brain” and “The Trouble with Tribbles” of the original Star Trek series.

All bidding the 20^th edition of León Exchange will be online at www.leonexchange.com. For more information, visit Instagram @midcenturymanila and @leongallerymakati.

Dirty air makes COVID worse, beta variant deadlier than original

July 14, 2021 | 12:04 am

HERE IS A roundup of some of the latest scientific studies on the novel coronavirus and efforts to find treatments and vaccines for coronavirus disease 2019 (COVID-19), the illness caused by the virus.

Air pollution makes severe COVID worse

Dirty air contributes to COVID-19 severity, according to a study from one of America’s most polluted cities. Researchers who studied 2,038 adults hospitalized with COVID-19 in the Detroit area found those who needed intensive care and machines to help them breathe were more likely to live in neighborhoods with higher levels of air pollution and lead paint. The worse the local air contamination, the higher the odds of needing intensive care and mechanical ventilation.

Dr. Anita Shallal of Detroit’s Henry Ford Hospital said long-term exposure to air pollution may impair the immune system and make it more susceptible to viral infections, while fine particles in air pollution may also act as a carrier for the virus and help it spread.

The study “calls attention to the systemic inequalities that may have led to the stark differences in COVID-19 outcomes along racial and ethnic lines,” Dr. Shallal said in a statement from the European Congress of Clinical Microbiology and Infectious Diseases, where she presented the findings on Friday. “Communities of color are more likely to be located in areas closer to industrial pollution, and to work in businesses that expose them to air pollution.”

Beta variant may increase hospitalizations and deaths

The Beta variant of the coronavirus may be deadlier than the original version of the virus, according to researchers in South Africa who studied more than 1.5 million COVID-19 patients.

Although the Delta variant now accounts for the largest percentage of new COVID-19 cases in many countries, Beta is still circulating, with mutations that make it highly contagious and harder to prevent or treat than the original version.

The researchers found that people infected in the second wave of the pandemic, when Beta was dominant, were more likely to require hospitalization than those infected during the first wave, after accounting for patients’ risk factors and how over-burdened hospitals were.

Furthermore, hospitalized COVID-19 patients had a 31% higher risk of death in the second wave, according to the report published Friday in The Lancet Global Health. The researchers did not know each patient’s infecting variant, so they had to use the first and second wave periods as proxies for the variant type, co-author Dr. Waasila Jassat of the National Institute for Communicable Diseases in Johannesburg told Reuters. “We hope to repeat the analysis, comparing the third wave in South Africa to the first two waves, to similarly try to understand whether the Delta wave is associated with higher risk of death,” she said.

mRNA vaccines work well in ‘real world’ US study

The COVID-19 vaccines most often used in the United States are effective not just in clinical trials but in the “real world,” too, according to a nationwide study. Using data on a sample of US adults hospitalized between March and May 2021, researchers found that the mRNA vaccines from Pfizer/BioNTech and from Moderna “prevented about 87% of hospitalizations for COVID-19 that would have occurred if the vaccines had not been given,” said Dr. Wesley Self of Vanderbilt University Medical Center.

Effectiveness was similar for the two vaccines and was highest — at 97.3% — among adults ages 18 to 49, his team reported in a paper posted Thursday on medRxiv ahead of peer review. Among immunosuppressed individuals, the vaccines prevented about 59% of COVID-19 hospitalizations that would have otherwise occurred. That is still a “substantial benefit,” Dr. Self said, but “because the protection is not as good for people with immunosuppression, we believe (they) still should take precautions to avoid contracting COVID-19 even if they have been vaccinated.” — Nancy Lapid/Reuters

Companies seen having more jabs to share

July 14, 2021 | 12:04 am

PRIVATE firms with coronavirus disease 2019 (COVID-19) vaccine orders could expand inoculation to more employee dependents or local governments as up to 20% of their work force have already received the jab.

Presidential Adviser for Entrepreneurship Jose Ma. “Joey” Concepcion III said that around 10-20% of the employees of firms that have ordered vaccines have already been inoculated through their local government units.

Mr. Concepcion leads an initiative that helped the private sector procure COVID-19 vaccine doses through tripartite agreements.

More than a million vaccine orders will arrive this month after some delays, he said, with more to follow until early next year.

“What will happen here is we will have more vaccines to share with the family members of our employees,” he told One News on Tuesday.

The companies could also donate the vaccines to local government units that need supplies, he added.

“There’s a possibility down the road that can be the third dose. I know the government is not planning for the third dose, but we have to plan that already as early as today,” he said. “There will also be a lot of people running after these booster shots.”

Mr. Concepcion has also been pressing the government for “safe spaces,” or increased operational capacity for malls and buildings that have reached 80% vaccination.

Trade Secretary Ramon M. Lopez said that the interagency taskforce on the coronavirus could discuss increasing operational capacity for businesses with fully vaccinated employees.

For now, businesses that secure government safety seals — stickers displayed at establishment entry points if they comply with health safety protocols — could increase capacity by 10%.

Pfizer representatives are meeting with United States health officials to make a case for booster shots, which the company said will likely be needed six to 12 months after full vaccination. The country’s Center for Disease Control and drug regulation authority however said that there is no need for booster shots at this time. — Jenina P. Ibañez

PHL reserves slip to $106B at end-June

July 14, 2021 | 12:03 am

THE COUNTRY’S foreign exchange buffers slipped further as of June due to the lower valuation of the central bank’s gold reserves and the government’s payment of its debt obligations.

Gross international reserves (GIR) slipped by 1.08% to $106.081 billion as of June from the end-May level of $107.25 billion, based on preliminary data released by the Bangko Sentral ng Pilipinas on Tuesday. The end-June level, however, was higher by 13.5% from the $93.469 billion seen a year earlier.

The central bank attributed the slight decline in the country’s dollar buffers to the decrease in the value of its gold holdings due to the lower price of gold in the international market. The government also tapped its foreign currency deposits with the BSP to pay for its debt obligations and other expenditures, it added.

On the other hand, inflows from the BSP’s investments abroad partially offset the decrease in the GIR, the central bank said.

An ample level of foreign exchange buffers safeguards an economy from market volatility and can prove the country is capable of paying its debts in the event of an economic downturn.

At the end-June level, the country’s dollar buffers are enough to cover 12.1 months’ worth of imports of goods and payments of services and primary income. This is also equivalent to about 7.8 times the country’s short-term external debt based on original maturity and 5.2 times based on residual maturity.

“GIR enough to cover 12 months of imports would continue to provide structural support for the peso exchange rate, especially versus any shocks,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

The peso has weakened versus the greenback and has been trading around the P50-per-dollar level recently. However, BSP Governor Benjamin E. Diokno earlier said the currency will be supported by the country’s ample foreign reserves, business process outsourcing receipts and remittance inflows.

Broken down, the BSP’s gold holdings were valued at $8.875 billion at end-June, 10.4% lower than the $9.907 billion seen the month prior but higher by 10.7% against the $8.015 billion seen last year.

Foreign investments also dipped by 0.3% to $92.551 billion as of June from $92.835 billion in May but rose by 14.4% from the $80.891 billion seen a year ago.

Meanwhile, foreign currency deposits increased by 6.33% to $2.62 billion last month from $2.464 billion as of May, but slipped by 1.28% from the $2.654 billion seen a year earlier.

The country’s reserve position in the International Monetary Fund (IMF) stood at $798.6 million as of June, lower by 1.15% than the $807.9 million seen in the previous month but higher by 9.27% from the $730.8 million logged at end-June 2020.

Special drawing rights — or the amount that the country can tap from the IMF — was at $1.235 billion for the second straight month, 4.92% more than the $1.177 billion recorded a year earlier.

The GIR reached a record $110.11 billion at end-2020. The central bank sees the reserve level reaching $115 billion by yearend. — Luz Wendy T. Noble