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Fuel marking program generates P384.79 billion as of March 10

PHILSTAR

TAXES collected from marked fuel products totaled P384.79 billion as of March 10, counting back to the start of the program in late 2019, according to the Department of Finance.

The total included P354.98 billion from customs duties and P29.81 billion from excise taxes.

The volume of marked fuel was 38 billion liters since Sept. 4, 2019, according to data provided by Secretary of Finance Carlos G. Dominguez III via Viber on Wednesday.

Luzon accounted for nearly 28 billion liters of the total, or over 73%, with 8 and 2 billion liters marked in Mindanao and the Visayas, respectively.

Diesel accounted for 60.65% of all marked fuel, while gasoline had a 38.82% share. Kerosene took up the remainder with 0.52%.

Fuel marking is authorized under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law, as a measure to curb smuggling.
It involves the addition of a chemical dye into petroleum products imported into the Philippines to signify tax compliance.

The Bureau of Customs (BoC) has marked 9.19 billion liters fuel this year, as of mid-March. Last year, 17 billion liters were marked.

Mr. Dominguez said government revenue agencies expect to collect 147.1 billion pesos in fuel excise tax and VAT in 2022.

In its 2021 Annual Report, the BoC said it seized P6.7 billion worth of smuggled fuel and oil. — Tobias Jared Tomas

Truckers win up to 30% rate increases as fuel prices rise

PHILSTAR

By Arjay L. Balinbin, Senior Reporter

THE Confederation of Truckers Association of the Philippines (CTAP) said on Wednesday that some of its members’ clients have agreed to up to 30% increases in freight rates following the rise in fuel prices.

CTAP President Maria B. Zapata said individual members communicated a request for higher rates to their clients on March 7.

“There are reports from some of our members that some of their requests have been granted,” she told BusinessWorld by phone.

“For the record, the diesel price in January 2021 was P31 (more or less) compared with the current P70 (more or less) as of March 8, 2022 with P39,” according to a notice issued by Ms. Zapata earlier announcing the request for higher rates made to trucking clients.

“In line with this, CTAP member operators will negotiate and make the necessary and corresponding 30% adjustment or increase in their respective truck rates to enable them to continuously provide exceptional and quality service to their respective clients,” it added.

Ms. Zapata said by phone that the outcome of the negotiations will vary depending on each trucker’s history and bargaining power with the client, typically an importer or exporter.

“With the economic situation, we can’t be insistent on the 30%, so others accept less than 30%. It’s a matter of consideration.”

She said the negotiations are purely business-to-business, with no government agencies involved.

Pump prices rose for an 11th straight week on Tuesday. Fuel retailers raised gasoline and diesel prices by P7.10 and P13.15 per liter, respectively.

Ms. Zapata said CTAP will be standing by to determine whether its members will need to seek additional charges for the fuel cost.

“Ngayon, meron na namang increase dito na P13 per liter of diesel (There has been a further P13 increase per liter of diesel), so we will be observing within two weeks to see if there will be a rollback or if it will increase further,” she said.

House to continue oil deregulation review with price rollback still uncertain

PHILSTAR

THE review of the oil deregulation law will continue because expectations that fuel prices will retreat soon cannot yet be counted on to provide relief to the public, legislators said on Wednesday.

“That is a BIG IF. Even (if fuel prices fall), there is no assurance that it will not spike again in the future,” Bayan Muna Representative Carlos Isagani T. Zarate said in a Viber message.

Calls to suspend the excise taxes on fuel could be canceled if prices drop, while fuel subsidies will only continue if sectors kept being impacted by the oil price hikes, Marikina Rep. Stella Luz A. Quimbo said.

“Deregulation review, yes. We need to ensure that if world prices fall, that domestic prices will fall commensurately. That’s the purpose of the unbundling of oil prices,” Ms. Quimbo said in a Viber message.

“The suspension of excise taxes has an automatic trigger, so if prices fall below the threshold, no need (to suspend). Fuel subsidies (will continue) only if sectors continue to be affected, especially if fuel subsidies were not sufficient and distribution delayed.”

The House of Representatives is currently considering a bill that would amend the Downstream Oil Deregulation Law to prevent oil companies from increasing prices of old stocks of fuel, which were acquired when prices were lower.

The government has urged Congress to review deregulation in response to price volatility resulting from the Russian invasion of Ukraine.

The Downstream Oil Deregulation Law, or Republic Act No. 8479, removed government control on the pricing, export, and import of petroleum products, allowing market forces to dictate oil prices. — Jaspearl Emerald G. Tan

ADB sees Russia-Ukraine war impact on ASEAN mainly in inflation, not growth

BW FILE PHOTO

THE main impact of the Ukraine war on Southeast Asian economies will not be on growth, though some of them may be particularly vulnerable to inflation, the Asian Development Bank (ADB) said.

“We do not see a growth impact… In Southeast Asia probably the impact will be manageable. There will be a decline (in growth) but it will be relatively small,” Ramesh Subramaniam, an ADB director general, said at the virtual Southeast Asia Development Symposium 2022 on Wednesday.

He said the bank will revisit its forecasts and release an update to the Asian Development Outlook in April.

In December, the ADB raised its 2022 growth forecast for the Philippines to 6% from 5.5%. This is below the 7-9% target set by the government.

An ADB report, “Southeast Asia Rising from the Pandemic,” concluded that the Omicron wave of the coronavirus could cut the region’s economic growth by 0.8 percentage points this year.

“The region’s economic output in 2022 is expected to remain more than 10% below the baseline no-COVID-19 (coronavirus disease 2019) scenario,” it said.

Mr. Subramaniam said the war in Ukraine and its impact should be assessed for any expected medium-term impact by policymakers in the region.

“Is this going to threaten the nascent recovery from the pandemic and all the fiscal challenges countries will face? And how can we make sure that any knock-on effects don’t become serious in the case of Southeast Asia?” Mr. Subramaniam said.

ADB Senior Economist James P. Villafuerte said the significant increase in oil prices will cause consumer goods prices to rise more rapidly.

“The multiplier (effect) of oil price inflation is about 0.4 (percentage points), which means that for every 10% increase in oil price, right, you will, you will have about a 0.4% increase in inflation,” Mr. Villafuerte said.

“So for example, in the Philippines, I think oil prices may have already increased 30% — if you use that multiplier, inflation could actually increase by 1.2 percentage point,” he added.

Moody’s Investors Service also warned that the Philippines, alongside India, Laos, Pakistan, Sri Lanka, and Vietnam will be the most affected by faster price increases.

“Inflationary pressures are likely to build faster in economies where fuel and electricity prices have a heavier weighting in consumption baskets, or where imported fuel is predominant,” Moody’s said in a report on Wednesday.

Headline inflation in the Philippines was at 3% for a second straight month in February. However, the central bank warned that inflation could exceed the 2-4% target band in the second quarter due to rising oil prices. — Luz Wendy T. Noble  

Streamlining the procedures for tax sparing and tax treaty relief applications

The mechanism of tax sparing allows a state to grant tax relief (hence, taxes are spared ) to nonresident foreign corporations (NRFC) to attract capital inflows that contribute to economic growth. Under our Tax Code, an NRFC may avail of the reduced 15% tax rate on dividend income coming from the Philippines if its country of domicile allows a credit against the 15% tax that was spared or fictionally paid at the source. On the other hand, various tax treaties entered into by the Philippines also grant reduced rates to foreign shareholders residing in those treaty countries.

In 2020, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) No. 46-2020, which lays down the guidelines and procedures for tax sparing applications (TSAs). A few months later, RMO No. 14-2021, on availing of treaty benefits, laid down updated procedures for tax treaty relief applications (TTRAs) and introduced requests for confirmation (RFC) for those who outright apply the exemption or preferential rate. Recently, the BIR issued Revenue Memorandum Circular (RMC) No. 77-2021, clarifying certain provisions of RMO 14-2021.

To be candid, while these issuances purport to streamline the process and documentary requirements, they have in fact made the documentary requirements more comprehensive, and have just reformatted the certification/ruling that the taxpayer would get in response to the application/ruling request. There are a couple of things that I think benefit taxpayers in the updated guidelines. For one, they have made the documentary requirements uniform and clear from the start, and this should make the processing more efficient since it helps avoid a lot of back and forth when case officers impose different requirements and much later on in the process. Further, the BIR has committed to process TTRAs within four months from submission of complete documents or as soon as practicable, provided the backlog is addressed at the International Tax Affairs Division (ITAD) where the applications (TSAs, TTRAs, and RFCs) are lodged. It is my hope that this comes true sooner rather than later.

Now comes RMC 20-2022, a collective guideline simplifying certain matters as regards the filing of RFCs/TTRAs, and TSAs. Perhaps to alleviate the volume of applications filed with ITAD, the BIR clarified that the need to file separate applications for subsequent or future income payments would depend on the tenor of the COE if one has already been issued.

For recurring transactions, the COE would indicate the requirements for compliance if continuous entitlement to reduced tax rates is warranted using the same COE. Thus, if no such requisites are stated in the COE, a separate RFC/TTRA, or TSA must be filed with ITAD for subsequent similar transactions.

RMC 20-2022 has also brought to light the importance of the COE if one is already issued. During tax audits by the BIR, the taxpayer should present the COE to shield the income payments from any tax issues that may arise and show proof that the requisites cited in the COE had been satisfied. On its part, the BIR examiner is duty-bound to ensure that the documents submitted are authentic, for which ITAD may assist in case there is doubt.

For  long-term contract of services where annual updating is required, RMC 20-2022 has provided the specific documents which must be submitted to the BIR as follows: (1) tax residency certificate of the nonresident income recipient for the relevant year; (2) sworn certification (a sample was annexed to the issuance) stating the services provided by the foreign enterprise, the place where the services are performed, individuals who rendered the services on behalf of the foreign enterprise, their positions or designations and professional background and duration of stay of such individuals in the Philippines; and, (3) certified true copy of the passports of such personnel or a certification duly issued by the Bureau of Immigration stating the dates of arrival in and departure from the Philippines.

The following documents must also be submitted, if applicable: (a) Certificate of Completion of the project duly executed by the income recipient and duly accepted by the domestic income payor; (b) invoice/s duly issued by the income recipient in accordance with the invoicing requirements of the country of its residence; and (c) evidence of payment or remittance of income such as bank documents or certificates of deposit or telegraphic transfer/telex/money transfer.

RMC 20-2022 puts both the BIR and the filers of RFCs, TTRAs, and TSAs in a win-win situation. On one end, the BIR may have realized that it is in the government’s interest to preclude repetitive applications for transactions involving the same parties and circumstances. In this way, the tax office can expedite TTRAs and TSAs which have been pending over the years. To me, this is where the streamlining has actually, finally, come in. Consequently, the BIR may be able to achieve the promise of RMO 14-2021 to dispose of RFCs and TTRAs within four months from the date of submission of complete requirements. On this note, I hope that the BIR would also commit to a specific processing period for TSAs.

And on the other end of the stick are the filers of RFCs, TTRAs, and TSAs who could very well consider that waiting time defeats cost efficiency. Issuances such as RMO 20-2022 with all its noble intentions are very attractive to those who believe that our country is worth investing in, but only if the mechanisms on which our government operates are practical, reasonable, and efficient.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co.

 

Elizabeth K. Adaoag-Belarmino is a manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

elizabeth.k.adaoag@pwc.com

All systems go for Fed’s liftoff of interest rates

REUTERS

WASHINGTON — The Federal Reserve on Wednesday will close the door on its ultra-easy pandemic-era monetary policy and step up the fight against stubbornly high inflation with the first in what is likely to be a series of interest rate hikes this year.

The shift, beginning with an expected quarter-percentage-point increase in the US central bank’s benchmark overnight interest rate, has been in the works since last fall and has already driven up the cost of home mortgages and other key types of credit in anticipation of what the Fed will do to curb prices that are rising at their fastest pace in 40 years.

Yet the urgency surrounding the Fed’s policy meeting this week has intensified because inflation has shown no signs of easing and may even rise further on the back of Russia’s invasion of Ukraine, which fueled an oil price spike this month.

The precise language of the Fed’s new policy statement and the details of updated quarterly economic and interest rate projections will provide the first concrete guidance about how all that has influenced policymakers, and in particular whether it has rattled faith that the current economic expansion can stay on track even as inflation is driven lower.

Fed Chair Jerome Powell, speaking to lawmakers in Congress earlier this month, said he felt it was “more likely than not that we can achieve what we call a soft landing … which is get inflation back under control without a recession.”

But he also acknowledged the central bank was in uncertain terrain, perhaps more reminiscent of the high-inflation days of the 1970s than of the weak inflation environment that has conditioned monetary policy since the early 1990s.

“We haven’t faced this challenge in a long time,” Mr. Powell said in testimony before the US House of Representatives Financial Services Committee. “But we all know the history and we all know what we need to do.”

The new projections due to be issued alongside the policy statement at 2 p.m. EDT (1800 GMT) will show just how aggressive officials think they may need to be, and whether policymakers see the target federal funds rate rising to the sort of restrictive levels that could actually crimp the economy and increase unemployment.

Since the 2007-2009 financial crisis and recession, the Fed has penciled in those sorts of restrictive policies only once, in response to former President Donald Trump’s run-up of deficit spending in 2017 and 2018, but rates never rose that high before the economy started to buckle.

Inflation is now the motivation. The Fed’s preferred gauge of price pressures is currently increasing at an annual rate that is triple the central bank’s 2% target, and the environment of war, rising energy costs, and climbing wages has drawn parallels to the 1970s and early 1980s when the Fed pushed the economy into recession to break the cycle.

If the COVID-19 pandemic led to unpredictable economics, developments in Europe have made the situation almost Byzantine when it comes to forecasting.

The price of US West Texas Intermediate crude CLc1, for example, rose about 33% to $123 a barrel in the days following Russia’s Feb. 24 attack on Ukraine. On Tuesday, it had fallen back to about $95 a barrel, near where it was before the war.

But that decline was driven largely by new coronavirus-related lockdowns in China that could cause economic problems of their own — including more inflation.

The situation “couldn’t be worse for the Federal Reserve, which is already chasing inflation for the first time since the 1980s. The disruptions we are seeing are adding fuel to a well kindled inflation fire,” wrote Diane Swonk, chief economist at GrantThonton.

Mr. Powell “will be walking a tightrope, balancing the need to raise rates and rein in a more systemic rise in inflation with the need to avert a meltdown” if the central bank is seen raising rates so fast it might risk a recession, she added.

A ‘NIMBLE’ APPROACH
Mr. Powell is scheduled to hold a news conference half an hour after the release of the policy statement and projections. In addition to elaborating on the statement, he will likely provide an update on the discussions of when and how fast to reduce the Fed’s roughly $8.5 trillion portfolio of government bonds and mortgage-backed securities, a second tool for tightening monetary policy that will be deployed later in the year.

Mr. Powell has used words like “nimble” to describe his approach to a situation in which policymakers may have to adapt on the fly, and in which they have been repeatedly fooled by economic developments from a faster-than-expected recovery to the slow return of workers to jobs.

The language of the new policy statement and the details of the new projections will, however, put the Fed’s broader thinking on display.

As of December, most Fed officials felt they could get a grip on inflation with a relatively light touch that involved increasing the target federal funds rate, currently near zero, to just 2.1% by the end of 2024, a level still not considered restrictive by policymakers.

But policymakers at that point also felt inflation for 2022 would be just 2.6% and on its way down as the US and world economies worked through the supply chain issues and other problems created by the pandemic — an outlook that also is proving out of step.

Given the level of inflation, “the message has to be at least somewhat hawkish,” wrote Evercore ISI analysts Krishna Guha and Peter Williams, even if the volatile events of recent weeks mean officials will also want to stress “that now more than ever nothing is set in stone.” — Reuters

China lockdowns may delay orders from online platforms

CRANES and containers are seen at the Yantian port in Shenzhen, Guangdong province, China, May 17, 2020. — REUTERS

ORDERS placed with global e-commerce platforms like Amazon and Walmart may be delayed by virus lockdowns and restrictions in some of China’s key manufacturing hubs, according to an industry body.

Shenzhen, home to around half of all the online retail exporters in China, was locked down for at least a week on Sunday to try to contain a spreading coronavirus disease 2019 (COVID-19) outbreak. Its 17.5 million residents were told to work from home, with all non-essential businesses and public transport shut.

In nearby Dongguan, a key Chinese hub for the manufacture of shoes, toys and textiles, factories in areas where there are virus cases have been told to close, and schools and restaurants are effectively shuttered.

The moves are creating significant disruption to the production and delivery of goods sold on major online marketplaces, including those run by Amazon.com, Inc. and US retail giant Walmart Inc., said Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association.

“Shenzhen now has pressed the pause key, with operations halted for almost all sectors, and we are no exception,” said Ms. Wang, whose organization represents some 3,000 exporters in the city, China’s main tech hub. The association’s members include purveyors of some of the biggest-selling online products in the West, including smartphone accessory maker Shenzhen Tomtop Technology Co Ltd., and Sailvan Times Co Ltd., maker of lounge-wear apparel brand Ekouaer.

Most production has been suspended in Shenzhen due to the lockdown and deliveries are snarled because logistics firms and warehouses aren’t operating or are doing so at a reduced capacity, Ms. Wang said in an interview Monday.

Chinese sellers have become ubiquitous on global shopping platforms, often specializing in cheaper versions of everyday goods such as phone chargers and sneakers. The country’s cross-border e-commerce industry grew by 25% to 1.4 trillion yuan ($220 billion) in 2021, building on a 40% surge in 2020 due to the pandemic.

Thanks to China’s integrated supply chains, some companies have become top sellers globally, with fast-fashion juggernaut Shein and Anker Innovations Technology Co., which retails $1.5 billion of smartphone accessories and other consumer electronics every year, now household names.

Amazon said it was diverting freight to warehouses in parts of southern China that aren’t subject to lockdowns or pandemic restrictions.

“We do not anticipate a significant disruption to our business,” Maria Boschetti, an Amazon spokeswoman, said by email.

Representatives from Walmart didn’t immediately respond to emails seeking comment about potential delivery delays. Chinese logistics firm 4PX said on its website Monday that it’s stopped picking up parcels from Shenzhen due to the COVID restrictions.

Wang said the association is “actively negotiating” with the Shenzhen authorities to try and at least get some parcel deliveries resumed soon. The disruption comes at a particularly tricky time, with Amazon cracking down on multiple top sellers in China last year over fake consumer reviews.

While authorities have said some factories in Shenzhen and Dongguan will be still be allowed to operate if they test workers daily and operate bubbles, Ms. Wang said her member companies have been required to halt all production, with one even fined earlier this week because they hadn’t complied.

“Even if you’re not in the areas with serious cases, you’re not allowed to do anything,” she said. — Bloomberg

Universal healthcare

BENZOIX-FREEPIK

The Duterte Administration is winding down, and the country is preparing to elect a new president two months from now. By June 30, a new administration will be in place to lead the government in the next six years. I tend to think that President Digong’s greatest achievement during his term was to pave the way for the enactment of the Universal Health Care Act.

Admittedly, we have yet to experience all the benefits of that law, Republic Act 11223, which was passed in 2019. More than two years since, many of the law’s provisions are still to be implemented or operationalized. Frankly, I deem it to be a “complicated” law, and I foresee transition to last beyond the next administration.

The law’s objective, of course, is to ensure that all Filipinos can access basic healthcare and ward accommodation, at the government’s cost. Or, simply put, everybody is, in effect, automatically considered a “member” of the Philippine Health Insurance Corp. (PhilHealth), which shoulders the cost of basic health services. Additional health services are also to made available through local governments.

Ideally, even the poorest of the poor and the marginalized should be able to walk into a medical facility in their locality and get medical attention without having to worry about doctors’ fees, hospital cost, procedure cost, or even basic medicine. The thing is, the Philippine health system is far from perfect right now, particularly after the devolution of health services under the Local Government Code was passed in 1991. The system, at present, is fragmented.

RA 11923 aims to address the fragmentation by clearly defining the responsibilities of the National Government, the Local Government Units (LGUs), and PhilHealth in the delivery of health services. However, this objective is far easier said than done, considering what these agencies have to contend with at this point.

PhilHealth, for one, appears to be in a mess — and the issue essentially boils down to questions regarding its management of funds. Controversy after controversy, scandal after scandal, all point to seeming mismanagement as well as gaps in accountability. After numerous congressional hearings on PhilHealth issues, it doesn’t seem we are any closer to truly insulating the institution from abuse and corruption.

This is not to say that PhilHealth cannot be fixed, or its issues cannot be resolved. But it will take time, resources, a lot of political will, and a great deal of competency within PhilHealth to effectively implement universal healthcare. PhilHealth, of course, deals only with the financing side of health service delivery. And, its effectiveness relies heavily on taxation and premium collection.

And this is one of the main issues against universal healthcare, which is funding relying heavily on a generally healthy population that can afford to pay taxes and insurance premiums. It is a matter of having a young and healthy population sustaining a health insurance fund that pays for everybody. Survival means more money coming in than going out.

In a worst-case scenario, somewhat similar to what transpired in 2020-2021, a global economic downturn significantly cut government’s tax collection. And with people losing jobs, some actually de-prioritize the payment of health insurance premiums. And then, with a pandemic wreaking havoc, more people getting sick means health insurance claims or payouts going up.

And then there is the factor of corruption which, to be honest, is a fact of life. Combine all this and you find yourself in a situation where health funds are being depleted faster than they can be replenished. In such a situation, where will universal healthcare go? Of course, this is oversimplifying the situation. However, a worst-case scenario is always a possibility.

A sick population spends more on health, and drains faster whatever pool of funds has been set up to pay for healthcare. A sick population is also less productive, and is less likely to pay taxes, and contribute less premium to health insurance. Overall, this situation makes it also difficult for the government — national or local — to continue subsidizing healthcare costs.

With what we have seen so far, I am inclined to think that the success of universal healthcare lies less on structure and more on reform, particularly in healthcare financing. Even assuming a structure and system where the collection of local and national taxes and health insurance premiums is sufficient and efficient, disbursement abuses, fraud, and corruption can still ruin the system.

Transitioning to universal healthcare is a major public undertaking that requires the support of all stakeholders, including a population that should be uninclined to abuse its benefits. Universal healthcare works only in society that has a strong sense of others, and more likely to think of common good rather than individual entitlements and personal gain.

Universal healthcare is an ideal system that is expected to benefit all. But its success will depend on a putting in place a structure and a system that is honest, tightly regulated, and with effective cost management and controls. And this, I believe, is the main challenge for those tasked to operationalize and implement the Universal Health Care Act and to lead the transition period in the next administration and beyond.

Universal healthcare can succeed only under an honest government, with efficient and effective public service as its main objective. Experience and history show us that the exercise of autonomy and regulatory discretion without accountability, abuse, fraud, and corruption can be its eventual downfall. A good structure and system work only with good people leading it.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Pandemic pushes SDGs further out of reach of Asia-Pacific region

FREEPIK

THIS YEAR, 2022, marks the second anniversary of the COVID-19 pandemic, and while an end to the pandemic is in sight, it is far from over and the consequences will be felt for decades to come. At the same time, the 2030 Agenda for Sustainable Development is becoming increasingly distant. The region must use the 17 Sustainable Development Goals (SDGs) as a roadmap to a fairer recovery.

This year’s edition of the Asia and the Pacific SDG Progress Report published by ESCAP (United Nations Economic and Social Commission for Asia and the Pacific) reveals three alarming trends. First, the region is losing ground in its 2030 ambitions. In addition to our slowed progress, human-made crises and natural disasters have also hampered our ability to achieve the Goals. We are seeing the gaps grow wider with each passing year: at its current pace, Asia and the Pacific is now only expected to achieve the 17 SDGs by 2065 — three-and-a-half decades behind the original goalpost. The region must seize every opportunity to arrest this downward trend and accelerate progress.

Second, while headway on some of the Goals has been made in scattered pockets around the region, we are moving in a reverse direction for some of them at a disturbing rate. Although the climate crisis has become more acute, there has been regression on responsible consumption and production (Goal 12) and climate action (Goal 13). And the news is marginally better for targets dealing with industry, innovation, and infrastructure (Goal 9) and affordable and clean energy (Goal 7) as they fall short of the pace required to meet the 2030 Agenda.

Lastly, the need to reach those who are furthest behind has never been greater. The region is experiencing widening disparities and increased vulnerabilities. The most vulnerable and disadvantaged groups — including women, children, people with disabilities, migrants and refugees, rural populations and poorer households — are the victims of our unsustainable and non-inclusive development trends. Some groups with distinct demographic or socioeconomic characteristics are disproportionately excluded from progress in Asia and the Pacific. Understanding the intersection of key development challenges with population characteristics such as age, gender, race, ethnicity, health, location, migratory status, and income is critical to achieving a more equitable recovery. We must work together as a region to ensure that no one or no country falls behind.

Although these trends are extremely worrying, there is some good news that helps our understanding of them: The number of indicators with data available has doubled since 2017. Collaboration between national and international custodian agencies for the indicators of the SDGs has significantly contributed to enhancing the availability of data. We must, however, continue to strengthen this cooperation to close the remaining gaps, as 57 of the 169 SDG targets still cannot be measured.

The sole focus on economic recovery post-pandemic is likely to hinder progress towards the SDGs, which was already lagging to begin with. As the region strives to build back better and recover, the 2030 Agenda can serve as a guiding mechanism for both economic and social development. We — the governments, stakeholders, and United Nations organizations that support them — must maintain our collective commitment towards a more prosperous and greener world.

 

Armida Salsiah Alisjahbana is under-secretary-general of the United Nations and executive secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP).

Ballots printed without observers: How come?

PHILIPPINE STAR/ MICHAEL VARCAS

There are, as I write this column, about 57 days before the May 9 national and local elections. The elections will mark the culmination of all the work at planning and carrying out hard-fought campaigns in many instances.

National campaigns are normally planned a year or two in advance under normal circumstances. Exceptions are the presidential snap polls in 1986 decreed by Ferdinand Marcos at the behest of the Americans and other democracies who were alarmed at the continuing political unrest and subsequent economic damage triggered by the execution of former senator Benigno Aquino as he returned from exile in the United States. Another exception is the seemingly belated decision of Vice-President Leni Robredo to contest the presidency against Marcos Jr. who had prepared his ground organization and media campaign and messaging, through historical falsification, as early 2017.

Whether one has eyed a position several years before the election or less than a year before election day, a sensible candidate and his/her handlers have to come up with an overall plan whose component parts are further subdivided and broken down into parts that are carried out eventually by a working organization on the ground.

All serious campaigns start with research or data acquisition and gathering. This is the basic first step, whether done with exacting rigor or with rudimentary techniques. As early as 1971, I remember then-senator Ninoy telling me of his plans to run for president in 1973 under the then 1935 Constitution which prohibited Marcos Sr. from being president beyond 1973. I was then doing my Management Research Report (MRR), a prerequisite for graduation at the Asian Institute of Management (AIM), on “Image Management in the 1967 Senatorial Campaign of Senator Benigno S. Aquino, Jr.” It was in the course of preparing this paper that Senator Ninoy revealed to me some of his preparations for the 1973 presidential elections.

At the core of his preparations was an IBM Mainframe which stored data that Ninoy and his American and Filipino campaign strategists felt were essential to planning and eventually mounting a no-nonsense campaign. Interestingly, the research work starts with the candidate: family background; experience in private and government administration; performance as mayor, governor, and senator; potential issues and all other data including so-called skeletons in the closet which may surface if one is confronted by an equally research-oriented opponent. Basic to this element of the total plan is research on possible opponent(s). I recall Ninoy pulling out the originals of several yellow columnar sheets pasted together. The most prominent initial in that sheet was “FL” which could have meant First Lady Imelda Marcos, or Fernando Lopez, the then vice-president of Marcos Sr. Lopez, a member of the economically and politically powerful clan, had been removed as Secretary of Agriculture and Natural Resources by Marcos in 1969 as the relationship between Marcos and the Lopezes soured.

Research, conducted by foreign and local groups, is very much part of the Marcos Jr. campaign as the handlers of the dictator’s son addressed a major part of the electorate which were too young to have knowledge of and experience with, illegal arrests, abductions, kidnappings, torture, rigged plebiscites, massive cheating and terrorism during elections, cheating supervised by the Constitutional body mandated to administer and manage elections, media censorship, Imeldific extravagance, People Power, presidential decrees, Amendment No. 6, economic hardship, and other horrors of Marcos rule. These young men and women were the main objects of historical falsification which anti-Marcos forces took some time to correct.

My own experience with other communications campaigns is that the expense involved is directly proportional to the lies, the type of lies one disseminates, and the fact twisting one has to do. One social media practitioner stated that “telling the truth is much less expensive than concocting lies and ensuring the consistency of the lies. Usually, liars end up contradicting themselves and it becomes more expensive to undo the lies, scramble and cover it up.”

And because the lies have to be passed off and packaged as truth, the influencers have to keep on repeating the lies, almost ad nauseum. To support the lies, a few embellishments are needed to create that “feel good” feeling. Usually, flag-waving and “love of country” messages are used to distract people from the core issues and to change the narrative.

Issues are surfaced, either through focus group discussions or actual polling or variations of the latter. Veteran politicians will always say “we know the people” and often dismiss such research as a “waste of time or paying to get information I already know.”

It is important to have a fairly good idea of issues because such information is crucial for conserving one’s resources. A solid idea of issues for a particular geographic area and demographics allows one to sharpen one’s messaging. A message that tries to cover too many issues and different demographics will result in a diffused message that promises everything to everyone and will therefore not appeal to anyone or to the number of voters one desires or has set as a target.

As the campaign enters a most crucial stage, with certain candidates creating momentum while others are fading after a very strong start, we can expect more frenzied activity at the ground level. It is at this point that a candidate’s ground organization is tested and will be given a chance to prepare for the actual day where mobilization will be a key factor.

Even as candidates and their supporters and thousands of genuine, not paid, “volunteers,” ramp up their respective operations, we must continue to be vigilant and monitor the acts and statements of the Commission on Elections (Comelec) which has managed to shoot itself in the foot repeatedly.

The latest episode is an admission by its commissioners made under oath during a Senate hearing on March 9. In that hearing, the Comelec admitted that it had caused the printing of 65% of the ballots and configured Secure Data (SD) cards in most regions without observers or away from public view. These revelations have further eroded the public’s faith in Comelec’s sincerity to have clean, honest and transparent elections.

Citizens’ groups have raised a collective howl. And rightly so. After all, clean, honest and transparent elections is the essence of democracy. There can be no democracy without consent of the governed.

If uncorrected immediately and transparently, these and other perceived lapses of the Comelec can radically change the course of events in the country.

 

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as secretary of Agrarian Reform during the Corazon C. Aquino administration.

Politics and market sentiment

UPKLYAK-FREEPIK

ONE MINOR TOPIC in political discussions, below the impact of surveys and endorsements, is the effect of a candidate on the investment climate should he be elected as leader. Market sentiment embraces the investment climate and the projected regulatory regime, based on characteristics and policies of candidates like integrity, transparency, and the acceptance of a free-market regime and a vigorous private sector.

Even unlikely winners like the extreme left with its program of higher minimum wages, free everything for everyone, and the takeover of the private sector activities by government can be part of the discussion in a debate involving a survey frontrunner and those with asterisk ratings.

In economic briefings, the introduction of politics is almost apologetically introduced — we are not endorsing anyone, just discussing the impact of certain personalities on the economic climate. There is the demurral that economists do not dabble in politics, as if to reinforce the belief that discussions of pairings, surveys, and platforms are the exclusive purview of TV resource persons who fancy themselves as “political analysts.” To frame the unlikely topic of politics in economic briefings, the slides on elections are introduced at the end of the talk, as a reluctant foray into personalities rather than numbers — which candidate will be good for the market?

Sometimes, this relationship between politics and economics can be unhealthy when it is too cozily joined, sometimes at the hip. But their marching in step seems inevitable. Even in highly regarded economies like Switzerland, what the government does with bank secrecy laws and legitimate inquiries into hidden wealth are political realities. And in a hyper-connected world, a distant invasion in Eastern Europe can rattle the economic cages here as well.

Yes, it matters who becomes president. Here are some examples of corporate attitudes on politics, and what limited role it should play in private business.

Business shouldn’t have to check with the palace if it can do a gigantic deal which anyway conforms to the laws of the land. The private sector stays private. There is no need to “clear” with politicians every major move like mergers and acquisitions. It’s only the regulatory agencies involved, if any, that will need to be informed for requisite approvals. If the enterprise involves foreign investment, a courtesy call may still be welcome for the photo op that gives the assurance of government openness to business.

There should be no need for business to claim political connections. Anecdotes about childhood links with the newly elected leader is not a corporate topic of interest, except over wine. Intimacy with the inner circle of new appointees should just be fodder for small talk. These stories should not be seen as somehow giving comparative advantage to a particular group, even those who may have donated to a successful campaign.

Concentration should be on running the business. The economy will improve if the CEOs and major stockholders need not be bothered with paying homage to government leaders and remembering birthdays and what appropriate gifts to give. This alone reduces the cost of doing business and shifts the focus on efficiency and marketing for the private enterprise.

If political connections no longer apply, then market share will depend on better products, cheaper costs, more efficient delivery systems, better marketing, inventory control, and the ability to delight customers — and all those old-fashioned ways of making money for the stockholders… without using or needing political clout.

There is no “party politics” in the country which is driven by ideology and think tanks. The multi-party system has turned into a variant of the personality politics we are accustomed to. Who even remembers the parties that the candidates belong to? These constantly shift shapes like vampires when the sun goes down.

In economic briefings dealing with politics and politicians, it is personal history that gets the most attention. Is a call for unity a valid economic program? And does the invitation extend to foreign countries? (How’s the fishing, Gents?)

For sure, an advocate of using the country as a personal piggy bank does not help the economic climate. Market sentiment does not favor a porcine diet. In the metaphor for optimism and its opposite, we only find bulls and bears.

The pig is not usually part of the corporate fauna. The porcine role is limited to the roasted variety, with a bamboo pole through it… to keep it firmly in place.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

US firm specializing in remote work technology expanding to the Philippines 

By Patricia Mirasol 

GoTo, a Massachusetts-based company specializing in remote work technology, is expanding to Singapore, Malaysia, and the Philippines. The Philippine market’s demographics are ripe for opportunities in the remote work sphere, according to the company in a March 16 briefing. 

“This is a good place for us to double down and focus, because of the landscape of SMEs (small- and medium-sized enterprises) in the Philippines and Southeast Asia (SEA),” said Lindsay Brown, vice-president and general manager of Asia Pacific for GoTo. “It’s ready for disruption. This is why we are positioning ourselves here.” 

SMEs make up 99% of all businesses in SEA. In the Philippines, GoTo’s figures show 58% of employees prefer full-time remote work. An additional 35% are satisfied with the technology that can support such a work arrangement. 

“Employees are looking for flexible work, but also the tools that allow for it,” Mr. Brown told the audience at the briefing. “From an employers’ perspective, if you want to keep your key talent… offering flex is paramount. Otherwise, they will leave and go elsewhere that can offer it.” 

The company’s SEA team established a local channel program over the past year with partners including Ingram Micro in Singapore, Malaysia, Indonesia, and Thailand, as well as VST ECS in the Philippines. It also plans to hire locals to support its regional expansion plans in 2022. 

“The advantage of GoTo is that it is bandwidth-friendly. It doesn’t consume lots of bandwidth,” said Jimmy D. Go, president and CEO of VST ECS Phils., Inc., at the event. “It also has great security and is easy to use… A lot of SMEs don’t have IT (information technology) departments. This is the kind of solution they’re looking for.” 

“Our annual IT Decision Makers survey revealed that more than 81% of businesses in Southeast Asia will have more than 50% of their workforce working remotely on a part-time or full-time basis,” added Krishna Baidya, director of digital transformation practice at Frost & Sullivan, in a press statement. “Such a shift will continue to change how businesses support their employees’ changing requirements for flexible work.” 

GoTo’s rebranding from LogMeIn on Feb. 2 also signaled the company’s simplification of its portfolio into two flagship products: GoTo Resolve, an IT support product that features zero trust security and has functions like system diagnostics; and GoToConnect, a communications-as-a-service product that allows for calls, meetings, and messages from any device. 

The company’s roots can be traced to Hungary two decades ago, when its co-founder, Michael Simon, found himself always running late because of the traffic he had to contend with daily when going from Buda to Pest. The first iterations of GoTo’s cloud-based remote access tools were borne from this pain point. 

The company has over 3,000 global employees at present and counts Siemens, Hilton, and Isuzu as among its clients.

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