Celebrate Dad’s special day with Coffee Project

June 18, 2021 | 2:54 pm

Father’s Day is just around the corner and although our dads may insist that he doesn’t need or want anything for Father’s Day, we all know that having nothing prepared is not really an option. After all, today is a good day to spoil the man we’ve always looked up to all these years; it’s only fitting that we treat them like the King they are to show how much we appreciate them and all that they do for our family.

With restrictions lifting in many cities, families may be able to go out and celebrate this special day. Take them out on a coffee run and have a sit while you catch up with what’s happening in your lives. Coffee Project offers the perfect place to have some much needed family time with their long tables, private nooks, and curtained areas with plush and comfy couches. Pair this up with deliciously instagrammable food and drinks, it’s a guarantee you’ll have a wonderful time out this Father’s Day.

But if dining out is not an option, and the family would prefer to stay safe at home, Coffee Project has the perfect offerings to help you make this day more memorable than the rest.

Maybe you can surprise dad with a porch drop-off of his favorite food and drinks or even surprise him with a small house party to celebrate this day. Check out Coffee Project’s Feast for the #1 Dad bundles. With four deals to choose from, these food and drink bundles are a sure fire way to make dad feel the love and appreciation we don’t always express with words.

Lastly, if small family gathering would not be possible, you can opt to have a gift delivered to your doorsteps. But finding the perfect present for dad can be quite tricky, you’ll want to get a unique Father’s Day gift that he’ll actually use. Check out Coffee Project’s merchandise and see if you can find something he’ll enjoy. From duffle bags for the dads who enjoy travelling to stainless tumblers for the dads who are out and about all day, Coffee Project’s extensive merchandise line caters to groups of all ages, gender, and preference.

Get Coffee Project’s Feast for the #1 Dad and check out their full line of offerings at coffeeproject.com.ph or order via Facebook Messenger at @coffeeprojectofficial.

Olympics-Japan health experts warn of Olympics COVID-19 threat, say no spectators the least risky

June 18, 2021 | 1:50 pm

TOKYO — Japan’s top medical experts warned on Friday that holding the Olympics during the coronavirus disease 2019 (COVID-19) pandemic could increase infections, and said banning all spectators was the least risky option, setting up a possible collision with organizers.

The report, led by top health adviser Shigeru Omi, was released after Tokyo 2020’s organizing committee chief told the Sankei newspaper she wanted to allow up to 10,000 spectators at stadiums for the global sport extravaganza.

Japan is pushing ahead with hosting the Games, which kick off on July 23, despite worries about another surge in COVID-19 infections and strong public opposition, but organizers have banned overseas spectators. A final decision on domestic spectators will be made at a meeting to be held as early as Monday among Tokyo 2020 organizers, the International Olympic Committee (IOC), International Paralympic Committee, Japanese government, and Tokyo Metropolitan government.

“I would like it to be held with spectators. I plan to head into the five-way meeting with that in mind,” the Sankei newspaper quoted Tokyo 2020 head Seiko Hashimoto as saying in an interview published late on Thursday.

Speaking at the start of an experts meeting, Ms. Hashimoto said the advice from Mr. Omi would be discussed there and inform talks among the IOC and others.

In the report, Mr. Omi’s experts advised holding the Games without any spectators as the least risky option given the potential for another surge in COVID-19 infections.

Prime Minister Yoshihide Suga’s government decided on Thursday to ease emergency coronavirus curbs in nine prefectures including Tokyo while keeping some “quasi-emergency” restrictions.

Mr. Omi agreed earlier this week that the number of spectators at domestic events could be raised to 10,000, but only in areas where “quasi-emergency” measures, including limiting restaurant hours, have been lifted.

PUBLIC CONCERNS

Tokyo is scheduled to be under the lesser restrictions until July 11 after the state of emergency — the third since April last year — expires for the capital on June 20.

The lifting of earlier emergencies has been followed by fresh increases in infections and strains on hospitals.

Experts worry that will happen again as people start moving around more, especially since Japan’s vaccination rate is low, and say organizers must be prepared to act swiftly to ban spectators or declare another state of emergency if needed.

The report by Mr. Omi also recommended that if spectators are allowed, restrictions should be tough, including limiting them to residents of the local area.

Mr. Omi, a former World Health Organization official has become increasing outspoken about the risks the event may spread the virus. Earlier this month, he told parliament it was “not normal” to hold the Games during a pandemic.

Hiroshi Nishiura, a Kyoto University professor and epidemiology adviser on the government’s pandemic response who is a signatory to the Omi recommendations, said he believed canceling the Games would be best, but that decision was for the government and organizers.

“If the epidemic situation worsened, no spectators and canceling the Games in the middle (of the event) should be debated,” he told Reuters.

Japan’s public remains concerned about the risks. A survey by NHK public TV this month showed 32% favored a cap on spectators, 29% wanted no spectators and 31% wanted the Games to be canceled.

Japan has not experienced the explosive outbreaks seen elsewhere but a recent surge and initially slow vaccinations rollout prompted concerns about strains on the medical system.

The country has recorded more that 776,000 cases and over 14,200 deaths, while just 15% of its population has received at least one COVID-19 vaccination. — Kiyoshi Takenaka, Sakura Murakami and Rocky Swift/Reuters

Global COVID-19 death toll exceeds 4 mln — Reuters tally

June 18, 2021 | 1:10 pm

Coronavirus-related deaths worldwide passed a grim milestone of 4 million on Thursday, according to a Reuters tally, as many countries struggle to procure enough vaccines to inoculate their populations.

While the number of new cases and deaths have abated in countries like the United States and Britain, several nations have vaccine shortages as the Delta variant becomes the dominant strain around the world.

It took over a year for the coronavirus disease 2019 (COVID-19) death toll to hit 2 million, while the next 2 million were recorded in just 166 days, according to a Reuters analysis.

The top five countries by total number of deaths — the United States, Brazil, India, Russia and Mexico — represent about 50% of all deaths in the world, while Peru, Hungary, Bosnia, the Czech Republic and Gibraltar have the highest death rates when adjusted for population.

Countries in Latin America are facing their worst outbreak since March, with 43 of every 100 infections in the world being reported in the region, according to a Reuters analysis. The top nine countries reporting the most deaths per capita over the last week were all in Latin America.

Hospitals in Bolivia, Chile, and Uruguay are largely seeing COVID-19 patients between the ages of 25 and 40 as the trend toward younger patients continued. In Brazil’s Sao Paulo, 80% of intensive care units (ICU) occupants are COVID-19 patients.

Soaring deaths are straining the operating capacity of crematoriums in developing nations and gravediggers in several countries have been forced to expand cemeteries with row after row of new tombs.

India and Brazil are the countries reporting the most deaths each day on a seven-day average and are still troubled with cremation woes and lack of burial space. India accounts for one in every three deaths reported worldwide each day, according to a Reuters analysis.

Many health experts believe that official death toll to be undercounted globally, with the World Health Organization (WHO) last month estimating fatalities to be much higher.

Last week, the Indian state of Bihar raised its COVID-19 death toll sharply higher after the discovery of thousands of unreported cases, lending weight to concerns that India’s overall death tally is significantly more than the official figure.

As poorer nations struggle to inoculate their populations due to vaccine shortages, wealthier countries have been urged to donate more to control the pandemic.

“The primary issue in the Americas is vaccine access, not vaccine acceptance,” Pan American Health Organization Director Carissa Etienne said Wednesday, urging donor countries to send shots as soon as possible.

The Group of Seven (G7) rich nations had pledged to provide 1 billion COVID-19 vaccinations to help poorer countries vaccinate their populations. — Roshan Abraham and Ahmed Farhatha/Reuters

US issues new guidance to ease COVID-19 assistance to countries hit by sanctions

June 18, 2021 | 12:35 pm

WASHINGTON — The United States on Thursday issued guidance easing the way for delivery of products such as face masks, ventilators, and vaccines to combat the coronavirus pandemic to heavily sanctioned countries like Iran, Venezuela, and Syria.

The US Treasury Department issued general licenses related to those three countries aimed at allowing more coronavirus-related transactions and activities, according to a statement, but stopped short of actually lifting any sanctions.

The move comes after President Joseph R. Biden, Jr., on his first full day in office in January issued a national security memorandum calling for his administration to undertake a review of US sanctions programs to evaluate whether they were hindering responses to the pandemic.

“Even though we have comprehensive humanitarian general licenses in all our programs, we did see some gaps,” a US Treasury official told Reuters, adding that prior to Thursday’s move, obstacles were dealt with on a case-by-case basis that involved delay and cost.

“This is lowering that barrier,” the official said.

The previous administration of President Donald J. Trump had been criticized by human rights groups for resisting any softening of sanctions rules against countries like Iran and Venezuela, which were targeted under “maximum pressure” campaigns, to ease pandemic-related hardship.

The Treasury’s Office of Foreign Assets Control (OFAC) last year issued guidance laying out existing authorizations, and generally allows for humanitarian relief.

But Thursday’s move is designed to further lower barriers, the official said.

The new Venezuela license authorizes pandemic-related transactions involving the Venezuelan government in addition to some of the country’s banks. Top Venezuelan officials as well as the financial sector have been subject to heavy sanctions imposed in the Trump era in an effort to oust socialist President Nicolas Maduro, who has held onto power.

Venezuelan officials said last week they could not complete a $10 million payment to the global COVAX vaccine program because bank transfers for a portion of the funds had been blocked.

Caracas has repeatedly blamed what it calls a US “blockade” for its slow vaccine rollout, though critics say Maduro’s government has undermined negotiations with the opposition to secure vaccine access.

Under the exceptions granted under the new Iran general license, Treasury is authorizing “all transactions and activities related to the exportation, reexportation, sale, or supply, directly or indirectly, of goods or technology for use in connection with the prevention, diagnosis, or treatment of COVID-19” to the Iranian government.

It further permits certain transactions that have until now been prohibited by sanctions regarding Iran’s central bank and national oil company related to the fight against the coronavirus.

“OFAC encourages those interested in providing COVID-19-related relief to Iran, Syria, and Venezuela to avail themselves of the available exemptions, exceptions, and authorizations pertaining to humanitarian assistance,” the Treasury statement said. — Daphne Psaledakis and Matt Spetalnick/Reuters

Move over mom, Dad’s taking over the kitchen, the garden, the home

June 18, 2021 | 10:00 am

A Gift Guide for Chef Dads and Other New Dad Personas this Father’s Day

Noticed how your Dad has been taking charge of the kitchen lately? Since we have all been under several community quarantines, Dads have taken on the new hobby of rocking their inner Gordon Ramsay! In fact, according to a recent social media survey of over 1,000 SuperMoms conducted by SM Supermalls on what new habits Dads took on during the pandemic, cooking ranked first.

Rounding out the survey results of Dad’s top pastimes are gaming, gardening, watching movies, doing home improvement projects, riding bikes, and bonding with pets.

And since Father’s Day is just around the corner, here are some cool gift ideas for Dad’s newfound hobby ─ whatever it may be.

Dad, the Master Chef. Pre-pandemic, the master chef of the house was Mom, but Dads have started ruling the kitchen. Most Dads love to BBQ especially when there’s a celebration. Wondering what to get your dad who is a chef-at-heart? How about an air fryer, a tabletop smokeless griller or a set of non-stick woks? Who benefits? The family of Chef Dad.

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Gamer Dad. Is your dad a tech fiend? Whether you plan on gifting your dad the latest video games, mobile phone, gaming accessories, smartwatch, or camera, SM Cyberzone is the tech authority. All branded items are guaranteed and warrantied, so you don’t need to worry about after-sales service.

Green Thumb Dad. If your dad has turned into a plantito, cultivate his newfound hobby. There are seeds, seedlings, ornamental plants, even garden toolsets and all lengths of hoses and watering cans for gardens, large and small at SM. There are garden seats, shades and hats, gloves and boots too. An extra bonus is if dad grows vegetables, the family sits to have healthy meal care of Green Thumb Dad.

Cinephile Dad. Do you have a dad who zones out while watching movies? SM has a promo from WeTV that he will like. Just present a single receipt with a minimum purchase of PHP 1,000 in participating SM malls nationwide and you can get one month of VIP Subscription to WeTV. The promo will run from June 13 to July 13, 2021, while the vouchers are valid until October 31, 2021. Make sure to claim your vouchers on or before September 12, 2021, so your Dads can stream their favorite action movies, K-drama series, and more.

Handyman Dad. For the Dad who likes to tinker with DIY home improvement projects, there’s a host of cool tools and toolboxes, doodads, and thingamajigs at ACE Hardware. Maybe it’s time to change all your lighting fixtures to energy-saving LEDs or smart bulbs. There’s also definitely a need for more storage in any home. So whether Dad wants to upgrade a room, or turn your home into a smart zone, everything a DIY guy needs is at SM.

Fitness buff Dad. Couch potatoes begone! It’s your call to get Dad to stay fit and healthy while he’s stuck at home. There are stationary bikes, small weights, jump ropes, kettlebells, yoga mats, or portable treadmills at SM sports shops. For the Dad who is a fitness buff, activewear should be great replacements for his tattered cut-off shirts. Drop by the men’s section of The SM Store for a wide array of the leading brands like Nike and Under Armour. Uniqlo is another gift option for Dad with their Airism tech clothes to wick away sweat or, for Dads who like to go for a run, check out Uniqlo’s versatile collection of hoodies ─ especially useful gear for the runner dad this rainy season.

The OverworkedDad. Give your stressed dad the gift of self-care. There’s a whole line of portable massagers at Watson’s to help him relax after a long day at work. Get a haircut and a foot spa for both you and dad at SM’s safe salons and barbershops. If your dad loves pets, give him a GC so he can get his fur baby a grooming session at Pet Express. He takes care of the family, so yes, you take care of him.

Is dad fully vaxxed? If he presents his Vaccination Card at one or more of over 1,000 SM partner tenants, he gets special treats with SM’s Vaxx Dine and Shop Treats. Thousands of gift options, restaurants, and hobby shops are at your nearest SM Supermall. Come shop for Father’s Day at your favorite SM mall, which implements strict safety protocols, or virtually via the SM Malls Online app.

For more information, visit www.smsupermalls.com or follow @smsupermalls on all social media accounts. #SafeMallingatSM #WeLoveDads #FathersDayatSM

Outstanding Accounting students in the Philippines lauded

June 18, 2021 | 8:00 am

OL-SOASP-PHOTO-2 — Stakeholders with the Top 5 winners at the 22nd Search for Outstanding Accounting Students of the Philippines

Organized by P&A Foundation, Inc. (P&A Foundation), the Philippine Institute of Certified Public Accountants (PICPA), and the Association of Certified Public Accountants in Commerce and Industry (ACPACI), the 22^nd Search for Outstanding Accounting Students of the Philippines (SOASP) was held on May 29, 2021. The SOASP is an annual nationwide competition which aims to shine the spotlight on the country’s top accountancy students through qualifying examinations and interviews.

Butch Warren Hojas from the University of the Visayas was hailed as the 2021 SOASP Champion. Tailing closely were Francis Matthew Obligacion of the University of Santo Tomas, Alexander Salvador Bandiola, Jr. of the University of the Cordilleras, Chian Jhel Tayupon of the University of Saint La Salle – Bacolod, and Warren Chua of De La Salle University – Manila who placed second, third, fourth, and fifth place, respectively.

25 student-finalists were chosen after a series of qualifying exams.

What ensued was a battle of wits, knowledge, and skills. The competition was well-participated by 93 schools and 437 students hailing from various areas in the country. After hurdling a series of qualifying exams, 25 student-finalists were chosen. From the Top 25, only 5 participants successfully made it past the Quiz Bee Competition proper and advanced to the final interview round. The Top 25 finalists each received a plaque and cash as part of their award. Aside from these, the Top 5 received additional cash prizes. The Board of Judges was chaired by Philippine Duplicators Inc. President and Chief Operations Officer Atty. Samuel Villacampa, with PICPA VP for Operations Gladeys Jill Santos, and PICPA National Sectoral Director for Education Allan Frank Silva, as members. They faced a difficult task of determining the winners, but only one must emerge as the ultimate champion.

The event was graced by the Chairman of the Board of Accountancy Dr. Noe Quinanola. P&A Foundation Chairman of the Board of Trustees Marivic Espano, ACPACI National President Atty. Walter Abela, Jr., and PICPA National President Lope Bato, Jr., represented by Gladeys Jill Santos, gave inspirational messages during the competition. P&A Foundation Trustee Jun Cuaresma delivered the Welcome Remarks. The event, which was held virtually due to pandemic-related constraints, came to an end after Edward Roguel, SOASP Project Head, gave the closing remarks.

Ways to honor dads at home

June 18, 2021 | 8:00 am

Fulfilling the role of a father is indisputably hard, whether working as the breadwinner and/or being responsible for the housework or childcare. Such efforts and strength showed by many fathers make them worthy of having their own special day.

In 1909, while listening to a Mother’s Day sermon, Sonora Smart Dodd realized the need for a celebratory day for fathers. A daughter of Civil War veteran William Jackson Smart who raised six children on his own, Ms. Dodd was the woman behind Father’s Day.

According to HISTORY, Ms. Dodd brought a petition before the Spokane Ministerial Alliance in 1910. She sought to recognize the courage and devotion of all fathers like hers on June 5, her father’s birthday. The local clergy liked the concept of a special Father’s Day service but could not pull it together quickly. Thus, they moved it to June 19, the third Sunday in June.

Though it took several decades before the official recognition of Father’s Day in the United States, its celebration remains significant until today.

Since its first celebration, the perspective towards fatherhood — and perhaps Father’s Day itself — becomes wider. Hence, for this year, there are various ways to honor many kinds of fathers on June 20.

Even if some establishments began to open recently, Father’s Day will still likely be spent indoors and with limitations. Nevertheless, with the presence of technological and digital tools, families can celebrate the special day with unique, exciting activities.

Adventures are possible even in a virtual setting, as suggested by online travel shopping company Expedia in its website. Gathering the family for a virtual trip will take a regular video call to the next level.

For dads whose interests are history and arts, take them to a virtual tour around museum or historical sites around the world.

Louvre, for example, lets art enthusiasts virtually visit the museum on its website. Artistic fathers can celebrate this day by admiring the wondrous galleries and architecture of this large museum.

Meanwhile, a virtual tour of Acropolis in Greece is also available online. Fathers and their loved ones can immerse with the ancient site and its prominent monuments.

Expedia also shared that families can book a virtual city tour to have a local guide who would show around his/her hometown through a video chat. Whether in Paris or Berlin, this video chatting experience is like a virtual vacation for the family.

For fathers who love to explore foods or drinks around the world, Expedia suggests taking a virtual cooking class or have a virtual brewery and distillery tour.

The whole family can learn making pizzas in the Italian way or try cooking a vegetarian Indian cuisine online. For dads interested in exploring distillery or brewery, give them a virtual tour of Buffalo Trace Distillery in United States, Glenturret Distillery in Scotland, or Patron Tequila in Mexico.

If families want to celebrate Father’s Day at home without spending much money, Holidappy, an online resource for holiday advice and expertise, gives suggestions for a free, “custom-made” expressions of love for fathers.

Treasure memorable events with your father by staging a Show and Tell at home. Impress dad with stories, expressing why those moments are special, and then show one or more items associated in those memories.

Recalling and performing a mimic of one’s own father’s unique habits or actions are also a fun way to cheer up dads on Father’s Day, according to Holidappy. Show a good, respectful humor like acting how they cook or speaking on a phone. Families can either give an actual presentation or a recorded video. But a video is ideal especially when fathers are away.

Games centering on dads is another enjoyable activity for Father’s Day. Families can have fun through a guessing game, in which someone asks the father of his favorite things. It would be a fun test of how much a child or a certain family member knows of their fathers’ interests and discover more about their favorites, too.

These virtual and indoor activities are some ways to honor and gift dads on Father’s Day. While some will plan this day with amusing celebrations, the Father’s Day may be different for some.

There are homes who observe Father’s Day as a memorial. The aforesaid website considered that a deceased father would still want the family to have positive experiences.

Members can cheer each other up on this day by celebrating precious memories, especially those with one’s dad. They can also recall the lessons their fathers taught throughout their lifetime. Keep those memories alive through telling or writing the stories for this and the next generation.

Focus on the love that the father gave, the online resource suggests. Remember the ways he expressed that love and how it created wonderful memories. As such love and memories outlive him, he thus deserves to be celebrated on Father’s Day. — Chelsey Keith P. Ignacio

Philippines slumps to lowest competitiveness ranking in 5 years

June 18, 2021 | 12:34 am

Manila-skyline-2 — PHILIPPINE STAR/ MICHAEL VARCAS

By Jenina P. Ibañez, Reporter

THE PHILIPPINES slipped seven spots in an annual global competitiveness report, the steepest decline in Asia after its economic performance slumped amid the coronavirus disease 2019 (COVID-19) pandemic.

Switzerland-based business school International Institute for Management Development’s (IMD) 2021 World Competitiveness Report ranked the Philippines 52^nd out of 64 countries, down seven spots from 45^th last year. This year’s ranking is the Philippines’ lowest in five years.

Switzerland took the top ranking overall in this year’s World Competitiveness Index, followed by Sweden, Denmark, and the Netherlands.

The country still lags in the region, as it ranked 13^th out of 14 Asia-Pacific economies.

Singapore took the highest spot among Asian economies at fifth place, followed by Hong Kong (7^th), Taiwan (8^th), and China (16^th). At the 60^th spot, Mongolia was the only Asia-Pacific economy behind the Philippines.

“This year’s results expose the strengths and weaknesses of the world’s economies under the litmus test of the COVID-19 pandemic and how economies that were caught most off guard with managing the health side of the pandemic were not necessarily those that suffered the most on an economic level,” IMD said.

The IMD report ranked a country’s competitiveness using indicators grouped under four factors: economic performance, government efficiency, business efficiency, and infrastructure.

The Philippines’ performance according to IMD declined after the economy slumped by a record 9.6% last year. The country implemented one of the world’s longest and strictest lockdowns, leaving many out of work and businesses struggling to survive.

“Its economic performance fell the hardest due to its poor domestic economy, international investment and employment which saw unemployment rates double from around 5% to more than 10%. It has also suffered in its public finances and productivity of firms in the private sector.”

The annual unemployment rate reached a record-high 10.3% last year, versus the 5.1% in 2019. This is equivalent to 4.5 million Filipinos who do not have jobs, but are looking for one.

According to IMD, the Philippine rankings dropped in three of the factors — plunging to 57^thspot from 44^th in economic performance and falling three places to 45^th in government efficiency. Business efficiency slipped four spots to 37^th due to poorer performance in productivity, labor market, finance, and management practices.

The country retained its poor infrastructure ranking at 59^th for a third straight year, despite the government’s massive “Build, Build, Build” program.

IMD World Competitiveness Center Chief Economist Christos Cabolis said that the country’s decline in ranking is not specifically related to its recent response to the COVID-19 pandemic.

“Its long-term performance has also played a part, which limited its options in addressing the health and economic crises,” he said in an e-mail to BusinessWorld. “Digitally advanced economies that have seamlessly transitioned to ‘work-from-home’ have thrived compared to their peers.”

The economies that did well, he added, are those that have set up long-term trends in innovation, digitalization, social nets, health, and social cohesion.

Chris Nelson, British Chamber of Commerce executive director, said the lockdowns adversely affected the country’s consumer-driven economy, especially in Metro Manila.

“What investors and people are looking at is clarity. Particularly in the case of the Philippines, you’ve been particularly affected by certain key sectors: transportation, hotels, tourism, real estate. So this will change if we can get more clarity,” he said in a phone interview, referring to vaccine and other pandemic-related programs.

European Chamber of Commerce of the Philippines President Nabil Francis in a mobile message on Wednesday said that the chamber supports workforce skills development measures to improve the country’s competitiveness.

“The recent ranking is a call for policy makers to swiftly enact key economic reform measures,” he added, naming foreign investment liberalization measures pending in Congress.

Comparing the Philippines’ performance to Asian economies that took the top spots, Mr. Francis said “population size also plays a role in the competitiveness of some economies as is the case with Singapore and Hong Kong with relatively smaller demographics.”

The Philippine results reflect the impact of the pandemic, the Asian Institute of Management’s center for competitiveness said in a statement on Thursday.

“Some of the challenges that the Philippines face in 2021 include ensuring inclusive economic recovery and quickly reviving business and consumer confidence, effectively controlling the COVID-19 pandemic and implementing full vaccination rollout, building resilient social infrastructure, especially in health and education, sustaining increased investment in physical and digital infrastructure, and maintaining fiscal health while adequately providing stimulus and support, especially for vulnerable sectors,” the center said.

Finance department prefers emissions trading scheme over carbon tax

June 18, 2021 | 12:33 am

Emission-air pollution — UNSPLASH/BRENDAN O'DONNELL

By Beatrice M. Laforga, Reporter

THE DEPARTMENT of Finance (DoF) said it prefers the adoption of an intensity-based carbon emissions trading scheme (ETS) over an outright carbon tax, as the Philippines seeks to adopt a policy response to climate change.

DoF Assistant Secretary and Spokesperson Paola Sherina A. Alvarez told BusinessWorld that based on a study conducted with the World Bank, an intensity-based ETS is the more suitable option of carbon pricing instrument (CPI) for the Philippines than a carbon tax because such form of taxation requires huge institutional capacity to implement.

“Based on the PMR (Partnership for Market Readiness) CPI technical report, the DoF supports the establishment of an intensity-based ETS primarily focused on the power sector rather than other CPI options with other sectors, such as an absolute ETS and a carbon tax on the transportation and industry sectors,” Ms. Alvarez said in an e-mail last week.

An intensity-based cap measured through the “grid emission factor” (tCO2/MWh) will have the option of “buying out” excess emissions. The system puts a limit on the volume of carbon emissions producers can generate, with a trading platform where entities can buy emission units to cover their needs or sell those that they do not use.

The DoF said it is looking at price volatility as a major factor in the government’s decision on whether or not to rely on taxation to limit carbon emissions.

“An emissions trading scheme is initially preferable to a carbon tax given this sectoral focus and the strong public sensitivities around energy prices and the impacts of increased taxation on these. Given the large levels of uncertainty around future economic growth and emissions in the absence of a CPI, the use of an intensity-based cap on emissions is favored to help manage this without major price volatility,” Ms. Alvarez said.

However, she said initial findings showed that CPI should be limited to the power sector first for easier but targeted implementation, while ensuring that the system covers the segment with growing emissions.

The government also has to carefully design the system to make sure that it will not overlap, but instead complement the Department of Energy’s (DoE) Renewable Portfolio Standards (RPS).

She said the DoF prefers setting a limit based on intensity than an absolute cap because the latter entails a high risk or may result in low allowance prices, while the country still has no accurate forecasts on emissions.

“Once established, it will be possible to consider expansion to other emitting sectors such as large industrial facilities…. The CPI might also be readily combined with existing mechanisms to support clean energy, such as the Renewable Energy Technology Fund (RETF), by channeling the proceeds from ‘buying-out’ excess emissions into this fund,” she added.

Ms. Alvarez said the DoF is still developing a CPI with the help of the World Bank. They are currently studying the impact of reducing emissions and the advantages of CPIs, and are working on to promote public awareness on the measure.

“Moreover, analyses will be conducted on CPI’s interplay with energy sector policies and the potentials for including the industry sector,” she added.

Antique Rep. Loren B. Legarda filed House Bill 2184, which proposed a cap-and-trade system in the industry to bring down greenhouse gas emissions and combat climate change. The measure is still pending at the House Committee on Climate Change.

The Philippines aims to cut its emissions by 75% by 2030 under its commitment to the Paris Agreement.

DoE expects more red alerts in Luzon until July

June 18, 2021 | 12:32 am

THE LUZON GRID will likely experience more red alerts until July, raising the possibility of more “brownouts” as several power plants undergo maintenance work, according to the Energy department.

“In the coming weeks up until Week 30 (end of July), we will see that the preventive maintenance schedules (of power plants) will happen at the same time,” Department of Energy (DoE) – Electric Power Industry Management Bureau Director Mario C. Marasigan said during a public hearing on Thursday.

The country is currently at Week 24, based on DoE’s method of reckoning.

He said GNPower Mariveles Energy Center Ltd. Co. is still on extended outage, while Sual unit 1 of TeaM Sual Corp. will start its preventive maintenance next month.

“As these numerous plants undergo preventive maintenance in the coming weeks, there is a potential that we won’t just have yellow alerts, but red alerts,” Mr. Marasigan said, noting this may happen if unit 1 of the 668-megawatt (MW) GNPower Dinginin Ltd. Co’s (GNPD) coal plant does not begin operations by next week.

A yellow alert is issued when reserves fall below ideal levels. A red alert is declared if the supply-demand balance deteriorates further, bringing the possibility of power interruptions.

During the hearing, GNPD Vice-President Roberto Racelis, Jr. said that unit 1 of the plant is expected to begin full operations by end of August.

Meanwhile, KEPCO Ilijan Corp., which operates the 1,200-MW gas plant, said through a company representative that it is delaying its maintenance schedule to July from May.

DoE data showed that the KEPCO Ilijan plant was operating on a de-rated basis or reduced capacity of 716 MW as of June 2.

The Luzon grid was placed under red alert for three consecutive days from May 31 to June 2, amid the forced outages of plants and higher temperatures.

RESERVE REQUIREMENT
On Thursday, DoE Secretary Alfonso G. Cusi maintained the need for reserves which assures the stability of the power grid. He emphasized that it was the system operator’s mandate to ensure that there was enough firm-contracted ancillary services (AS).

Citing estimates from the department, Mr. Cusi explained that firm contracting is “far more economical” than having low reserves which result in load dropping that causes “brownouts.”

He noted the National Grid Corp. of the Philippines (NGCP) is currently collecting 34 centavos per kilowatt-hour for firm contracts.

The DoE previously said that the NGCP has not been complying in terms of the required reserves procured through firm contracts as of end-2020.

It reported that the grid operator has only contracted firm-based regulating, contingency, and dispatchable reserves of 237 MW, 180 MW, and 145 MW, respectively, for the Luzon grid.

The major island grid’s required capacity for regulating, contingency and dispatchable reserves are at 491 MW, 647 MW, and 647 MW.

Under a department circular issued in 2019, the NGCP is required to fully procure firm-contracted reserves to guarantee the grid’s reliability.

In the same hearing, Energy Regulatory Commission Chairperson (ERC) Agnes VST Devanadera said since the issuance of the ruling, the commission “does not act on any applications for non-firm (contracts).”

In a separate statement, NGCP President and Chief Executive Officer Anthony L. Almeda said that procuring AS on either firm or non-firm contracts will not solve the recurring brownouts or power interruptions.

What we have is a supply and not a distribution problem. For the grid to effectively address imbalances between supply and demand, we need to increase the power capacity of the country to meet rising demand as we start to recover and fully reopen the economy,” he said.

The NGCP earlier announced that it would hold a competitive public bidding process for the supply of AS to fulfill government requirements and secure the “best value” for consumers. — Angelica Y. Yang

Fed ripples hit hardest in Asia as rates outlook shifts

June 18, 2021 | 12:31 am

THE FEDERAL RESERVE’S new outlook for interest rates ricocheted through Asian markets as the dollar and Treasury yields surged, easing pressure on some of the region’s biggest central banks and complicating the outlook for others.

Expectations for higher US rates tend to suck capital away from Asia, sending local currencies lower and borrowing costs higher. That may be a boon for the likes of the People’s Bank of China and Bank of Japan as it stems unwanted currency gains. But central banks in emerging economies such as India and Indonesia may rue a constraint on their scope to ease policy.

“If dollar appreciation continues, it also exerts pressure on Asian central banks,” said Teresa Kong, a portfolio manager at Matthews International Capital Management LLC in San Francisco. “I see the Fed’s statement today as leaving emerging market central banks with less policy flexibility, shifting probabilities to higher rates to temper inflation even though their economies may benefit from lower rates for longer.”

The dollar rallied the most in a year in the wake of the Fed meeting, disproportionately hitting Asia markets, based on a gauge of risk-adjusted moves. The Philippine peso, Indonesian rupiah and South Korean won were among the largest underperformers since the policy announcement, as measured by the three-month z-score, which tracks the swings relative to the mean.

At the same time, a sharp sell-off in Treasuries weighed heavily on developed market bonds. New Zealand’s and Australia’s 10-year yields jumped on bullish local data and bets the Fed’s new twist will allow room for others to shift tone without risking too much currency strength.

PRICE PRESSURES
Markets price a good chance for a Fed rate hike by late 2022 — and overnight swap markets shifted to price in close to 50 basis points (bps) of tightening by New Zealand’s central bank by the end of 2022, compared with around 32 bps on Tuesday.

“We are looking at regional central banks here in Asia and debating which one could move earlier than projections and some of that could be moving ahead of the Fed,” Stephen Chang, a Hong Kong-based portfolio manager at Pacific Investment Management Co. told Bloomberg Television. He cited the Bank of Korea and Australia as possible candidates for a sooner-than-anticipated move.

In a speech Thursday, Reserve Bank of Australia (RBA) Governor Philip Lowe said requirements for raising the benchmark interest rate could be met in 2024 in some of the scenarios the bank has reviewed, but not in others. The RBA will look at the scenarios again at its meeting next month. Soon after he wrapped up, May labor force data showed a surprising jolt lower in the jobless rate to 5.1%.

Bank Indonesia Governor Perry Warjiyo, who held rates steady on Thursday for a fourth straight month, said the reaction to the Fed’s move so far appears to be relatively stable, though he added the bank remains on watch.

“We will continue to be vigilant and ensure the stability of exchange rates and financial markets,” he told reporters after announcing the bank’s policy decision.

BIG TAILWIND
For the Bank of Japan (BoJ), which meets on Friday, the Fed’s move may offer some reprieve, said Tomo Kinoshita, global market strategist at Invesco Asset Management in Tokyo.

“The Fed is sending a big tailwind for the BoJ by adding pressure for the yen to weaken,” Mr. Kinoshita said. “All the BoJ has to do is to stick with what they have been doing for a distant inflation target.”

As for the PBOC, it will likely welcome the Fed’s shift too as it grapples with yuan strength, surging inflows of capital and sky-high commodities prices. The central bank has been vocal in warning against expectations for ongoing yuan appreciation.

China’s stock benchmark CSI 300 Index rose as much as 0.8%, the best performer among major Asian equity gauges.

Fed officials sped up their expected pace of policy tightening amid optimism about the labor market and heightened concerns for inflation, and released forecasts that show they anticipate two interest-rate increases by the end of 2023 — sooner than many thought.

Fed Chair Jerome Powell told a press conference that officials would begin a discussion about scaling back bond purchases used to support financial markets and the economy during the pandemic.

That will have knock-on consequences for Asia and other regions, said Marc Chandler, chief market strategist at Bannockburn Global Forex.

“If US rates really do rise in a sustained fashion and the dollar moves higher, many EM countries will be squeezed, especially where interest rates differentials have been an important support,” he said. — Bloomberg

PAL operator expects positive monthly cash flows

June 18, 2021 | 12:08 am

PAL-facebook — FACEBOOK.COM/PHILIPPINEAIRLINES

Optimism comes despite annual losses hitting P73B

By Arjay L. Balinbin, Senior Reporter

PAL Holdings, Inc., the listed operator of flag carrier Philippine Airlines, expects positive monthly operating cash flows this year after its net loss after tax widened to P73.08 billion in 2020 from P9.70 billion previously due to the “extraordinary impact” of the global health crisis on the company’s operations.

PAL Holdings’ net loss attributable to equity holders of the parent company reached P71.91 billion in 2020 from P10.31 billion in 2019, the listed company said in its annual report released on Thursday.

The company remains optimistic that it will be able to continue operations in the next 12 months.

It expects to generate “positive monthly operating cash flows” this year “as a result of the gradual recovery in the travel industry and the effect of the cost containment measures implemented in 2020 and early 2021.”

PAL Holdings’ total revenues for 2020 dropped 64.2% to P55.26 billion from P154.54 billion a year earlier.

The company noted that it was able to cut expenses by 46% last year compared with the figure in 2019, but this was offset by the decrease in revenues.

“The Philippine government halted all commercial flights in April, May and part of March 2020 as part of a nationwide community quarantine, while local and worldwide travel restrictions held airlines down to a limited number of flights for the rest of 2020,” it explained.

Passenger revenue declined 68.8% last year to P41.86 billion from P134.29 billion in 2019, while cargo revenue saw a slight improvement of 0.32% to P9.41 billion from P9.38 billion a year earlier.

Ancillary revenue dropped 62.8% to P3.98 billion from P10.70 billion in 2019.

“For 2021, PAL has increased its regular flights on most of its pre-pandemic routes, in addition to new all-cargo services and special repatriation flights on multiple routes to North America, the Middle East, Asia and throughout the Philippines,” PAL Holdings noted.

PAL Holdings’ attributable net loss for the first quarter of 2021 narrowed slightly to P8.60 billion from a loss of P9.38 billion in the same period a year ago, but total revenues dropped 74.1% to P8.30 billion from P32.07 billion.

Passenger revenue decreased P80.3% to P5.32 billion in the first quarter from P27.01 billion in the same quarter last year, while cargo revenue grew 31.2% to P2.48 billion from P1.89 billion previously.

Ancillary revenue dropped 84.3% to P494.94 million from P3.16 billion.

PAL Holdings expects to pay its obligations based on restructured debts, with the assumption that negotiations with its lessors and creditors will be successful and the rehabilitation plan will be approved by the court.

The company noted it has “not made principal and/or interest payments due in respect to its long-term obligations since April 2020, resulting in breach of certain loan covenants and default provisions in the lease and loan agreements.”

It said it expects a funding of up to $505 million from a “major stockholder,” and this may involve sourcing of the fund by the major stockholder from the government and private financial institutions, estimated to be around $250 million.

“This is on top of the funds initially committed and provided by the major stockholder amounting to $358.2 million in various dates from fourth quarter of 2019 to first quarter of 2021,” it added.

The company likewise expects an exit facility amounting to $125 million.

It is currently in the “final stages” of its comprehensive restructuring plan.

“We are confident that the restructuring will enable PAL to strengthen its capital structure, meet stakeholder obligations and position the company for long-term success,” PAL Holdings said.