March and Q1 2021 car sales
AUTO SALES in March surged by almost 88% compared with a year earlier as the industry recovers from the impact of the strict lockdown implemented last year. Read the full story.
How PSEi member stocks performed — April 13, 2021
Here’s a quick glance at how PSEi stocks fared on Tuesday, April 13, 2021.
Manila summons Chinese envoy over vessels in disputed waters
MANILA on Monday summoned China’s ambassador to convey its “utmost displeasure” over the continued presence of Chinese militia vessels in a Philippine-claimed reef in the South China Sea.
Whitsun Reef, which the Philippines calls Julian Felipe, is within its exclusive economic zone, Foreign Affairs acting Undersecretary Elizabeth P. Buensuceso had told Chinese Ambassador Huang Xilian, the Department of Foreign Affairs (DFA) said in a statement on Tuesday.
“The continuing presence of Chinese vessels around the reef is a source of regional tension,” it added.
Ms. Buensuceso had also cited a United Nations arbitral ruling in 2016 favoring the Philippines and rejecting China’s claim to more than 80% of the disputed waterway based on a 1940s map.
The Chinese embassy was reminded of “proper decorum and manners in the conduct of their duties as guests of the Philippines” after it cautioned Defense Secretary Delfin N. Lorenzana against issuing “unprofessional remarks,” DFA said.
“Both sides affirmed the use of peaceful settlement of disputes in addressing their differences on the South China Sea/West Philippine Sea issue,” it added.
“In closing, the DFA reiterated the firm demand of the Philippines that China ensure the immediate departure of all its vessels from the area of Juan Felipe reef and other maritime zones of the Philippines,” it said.
Foreign Affairs Secretary Teodoro L. Locsin, Jr. tweeted on Tuesday there were only nine Chinese ships left, based on a report by a national task force.
The Philippines last month filed a diplomatic protest against China after the vessels moored at Whitsun Reef. The Chinese Embassy said the reef is part of its territory and the vessels had taken shelter due to rough sea conditions.
Mr. Lorenzana on April 3 urged the remaining 44 Chinese vessels to leave. He said the Chinese had no reason to stay there since the weather had improved.
The Chinese Embassy reiterated the reef is part of China’s Nansha Island, adding that the waters around the reef had been “a traditional fishing ground for Chinese fishermen for many years.”
It also said it hopes authorities would make constructive efforts and avoid “unprofessional remarks which may further fan irrational emotions.”
Mr. Lorenzana on Sunday discussed the situation in the South China Sea and regional security developments with his US counterpart on Sunday, his spokesman said.
He and US Secretary of Defense Lloyd J. Austin III are both looking forward to war games that got canceled last year because of a coronavirus pandemic, military spokesman Arsenio R. Andolong said.
During the teleconference, Mr. Austin also reiterated the importance of the visiting forces agreement “and hopes that it would be continued.” Mr. Lorenzana committed to discuss the matter with President Rodrigo R. Duterte.
Meanwhile, the Philippines needs the support of its allies including the United States in keeping China’s activities in the South China Sea in check, said Collin Koh, a research fellow from the Institute of Defence and Strategic Studies in Singapore.
“It is undeniable… that American support will be vital,” he told an online news briefing. “Let the aggressor be aware that there were attempts undertaken to capture evidence that could be used subsequently for any follow on political or legal recourse.”
“We’re not talking about Americans providing escorts themselves but providing air cover, providing maritime awareness data, and looking around somewhere could actually be a good way to remind the Chinese that there will be potential consequences if they escalate,” he added.
At the same forum, Senator Risa N. Hontiveros-Baraquel said the government should “rethink” its alliances.
“We must be consistent and firm in standing up for our national interests,” she said. “We should hold China accountable for the damage she has done to fragile marine ecosystems within our exclusive economic zone.” — Vann Marlo M. Villegas
Gov’t eyes 40 million doses of Pfizer shots by the third quarter
THE PHILIPPINES expects to take delivery of as many as 40 million doses of Pfizer, Inc.’s coronavirus vaccine by the third quarter, according to the presidential palace, amid criticisms of a slow vaccine rollout.
The government may get 20 to 40 million doses, vaccine czar Carlito G. Galvez, Jr. told a televised news briefing on Tuesday.
He said government officials have signed a waiver freeing the drug maker from potential lawsuits in case of side effects, which would pave the way for the delivery.
The government would also take delivery of almost 200,000 doses of the coronavirus vaccines made by Moderna, Inc., Mr. Galvez said.
The state ordered about 13 million doses from Moderna. The private sector, led by billionaire Enrique K. Razon, Jr. also bought 7 million doses.
The first shipment of Pfizer vaccines was supposed to have arrived in February but was delayed after officials failed to sign the so-called indemnification clause of the contract.
The government is set to sign a supply deal with another American company, Janssen Pharmaceuticals, Inc. for as many as five million doses of its coronavirus vaccine.
Mr. Galvez said the country also expects about 20 million doses of the vaccine developed by Russia’s Gamaleya Research Institute of Epidemiology and Microbiology.
The Department of Health (DoH) reported 8,571 coronavirus infections on Tuesday, bringing the total to 884,783.
The death toll rose by 137 to 15,286, while recoveries increased by 400 to 703,963, it said in a bulletin.
There were 165,534 active cases, 96.9% of which were mild, 1.8% did not show symptoms, 0.4% were critical, 0.5% were severe and 0.31% were moderate.
The agency on April 2 reported the highest daily tally of 15,310 cases since the pandemic started last year.
DoH said 13 duplicates had been removed from the tally and 53 recovered cases were reclassified as deaths. Nine laboratories failed to submit data on April 12.
About 10.2 million Filipinos have been tested for the coronavirus as of April 11, according to DoH’s tracker website.
The coronavirus has sickened about 137.3 million and killed three million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization. About 110.5 million people have recovered, it said.
Philippine President Rodrigo R. Duterte on Monday night admitted the country was facing a shortage of coronavirus vaccines due to global supply problems. He said rich countries were being prioritized for the vaccines.
The Philippines is aiming to vaccinate 70 million people this year. More than a million Filipinos have been vaccinated as of Tuesday since the program started last month.
Meanwhile, testing czar Vivencio V. Dizon said coronavirus tests conducted nationwide increased by more than 10,000 last week.
The country held more than 60,000 tests daily from April 6 to 10 from 50,000 tests a day a week earlier, he said at the same briefing.
Mr. Dizon said more than 50,000 antigen test kits would be deployed this month in communities with outbreaks.
Meanwhile, Public Works Secretary Mark A. Villar said the government would set up 720 health facilities with 26,259 beds this month.
The Philippines has more than 9,700 temporary treatment and monitoring facilities with 128,037 beds.
Mr. Villar said the highest occupancy rate had been seen in the National Capital Region, where a third of its 6,985 beds had been occupied as of April 11.
“We will continue to identify new areas and within the month and next month we will see a very significant increase in our hospital and intensive care unit capacity,” he said. — Kyle Aristophere T. Atienza and Vann Marlo M. Villegas
Duterte, Putin talk vaccine, security, trade in teleconference
PHILIPPINE President Rodrigo R. Duterte and Russian leader Vladimir Vladimirovich Putin held a teleconference on April 13, discussing coronavirus vaccines, security ties, and trade opportunities.
The phone conversation, which lasted around 30 minutes, was held in time for the 45th anniversary of diplomatic relations between Manila and Moscow, according to the presidential palace.
Mr. Duterte was joined by Foreign Affairs Secretary Teodoro L. Locsin, Jr. and Senator Christopher Lawrence T. Go, a former aide of the President.
The two leaders reaffirmed their shared commitment to fight the coronavirus pandemic, the Office of the President said in a statement.
The Palace said both Presidents “discussed the global and regional vaccine landscapes, noting that vaccines such as Russia’s Sputnik V must be mobilized to as many countries as possible.”
The Philippines would take delivery of about 20 million doses of Sputnik V developed by Russia’s Gamaleya Institute in the coming months, on top of the 500,000 doses expected to arrive this April, vaccine czar Carlito G. Galvez, Jr. told a televised news briefing on Tuesday.
Aside from pandemic-related measures, Mr. Duterte and Mr. Putin also discussed defense and security ties, it said.
The two leaders vowed to sustain their gains over the past five years, which were “fostered by regular exchanges between defense, intelligence and military agencies.”
Mr. Putin also emphasized the many opportunities for Russia-Philippines relations in the fields of trade and investments, agriculture and energy development “even as both countries work on further enhancing political-security cooperation,” the Palace said. — Kyle Aristophere T. Atienza
Nationwide round-up (04/13/21)
Duterte considering senators’ call to revoke pork tariff reduction
PRESIDENT Rodrigo R. Duterte may consider the recommendation of several senators to revoke his order slashing tariffs on frozen meat, according to the presidential palace. “Nakikinig naman po ang Presidente sa lahat, lalo na kung magsasama-sama ang mga senador (The President listens to everyone, especially if the senators will have a united voice),” Presidential Spokesman Herminio L. Roque, Jr told a televised press briefing on Tuesday. Several senators have opposed the government’s decision to temporarily reduce the rates of import duty on fresh, chilled, or frozen pork products for one year, saying the order might kill the local hog industry, with pig farmers in Luzon severely affected by African Swine Fever outbreaks. Mr. Duterte issued Executive Order 128 that lowered the tariff rate charged to pork imports inside the minimum access volume quota to 5% in the first three months, and will increase to 10% in the following nine months, while out-quota imports are now charged with 15% for the first three months and will jump to 20% in the succeeding nine months. Senate Franklin M. Drilon on Tuesday said the order can be revoked through a joint resolution of Congress. “EO 128 will kill the local hog industry, not the African Swine Fever or ASF,” Mr. Drilon said. Mr. Roque, in a separate statement issued late Tuesday, said, “Congress may, by law, impose limitations on such delegated power or may reverse the same. Further, should Congress pass another bill changing the tariff on imported pork, the President may veto any particular item or items in such appropriation, revenue, or tariff bill.”
LOCAL SUPPLY
Meanwhile, the Department of Agriculture (DA) reported the total number of live hogs transported to Metro Manila is approaching 300,000 heads as part of the initiative to augment supply and reduce prices. The DA said 3,264 live hogs arrived in Metro Manila from various provinces across the country on April 12, which brought the cumulative number of transported supplies to 292,321 hogs since Feb. 8. The DA also said 27,736 kilograms of pork in carcass form also arrived in Metro Manila on April 12, bringing the total to 1.94 million kilograms since Feb. 8, majority of which came from Central Luzon. On April 7, the DA announced that it will not recommend an extension of the order that capped the retail prices of pork. Instead, a suggested retail price of imported pork products was implemented. — Kyle Aristophere T. Atienza and Revin Mikhael D. Ochave
Lawyers, prosecutors now included in vaccination priority list
PROSECUTORS and other lawyers in both public and private practice are now included in the priority list for vaccination against the coronavirus disease 2019 (COVID-19) as “frontline personnel in essential sectors.” Secretary Carlito G. Galvez, Jr., head of the vaccine rollout program, approved the request of the Integrated Bar of the Philippines, the official organization of Philippine lawyers, to include legal practitioners in the category that is 4th in the priority list. The approval was communicated to National Vaccine Operations Center Undersecretary Myrna C. Cabotaje in a letter dated April 8 and made public on Monday. Justice Secretary Menardo I. Guevarra said on Monday that regional prosecutors earlier sent a similar request to the COVID-19 inter-agency task force. The category covers workers involved in tasks that are “direct client-facing and cannot dutifully meet minimum public health standards.” — Bianca Angelica D. Añago
Regional Updates (04/13/21)
LRT-1 operations to be suspended for 2 weekends
LIGHT Rail Manila Corp. (LRMC), the private operator of Light Rail Transit Line 1 (LRT-1), announced on Tuesday that it would suspend train operations for two weekends in April to continue its maintenance works. “The shutdown on April 17–18 and April 24–25, 2021 will allow LRMC to complete the remaining maintenance and rehabilitation works started during the Holy Week,” the company said in an e-mailed statement. It said the works to be carried would cover the maintenance of trains, stations, and various systems including the scheduled replacement of overhead catenary wires. “The additional days will also accelerate the preparations needed for the commercial use of the new Generation-4 train sets in Q4 2021,” it added. On April 5, LRMC said it had started increasing the speed of LRT-1 from 40 kilometers per hour (kph) to 60 kph after improvement activities. The 36-year-old railway system, which was previously operated by the Light Rail Transit Authority and the Department of Transportation and Communications, is designed to run at a maximum speed of 60 kph, according to LRMC, but it was reduced to 40 kph in 2011 because of the deteriorating condition of its tracks. LRMC started operating LRT-1 in 2015, and invested P11.6 billion for the railway system’s rehabilitation, restoration, and upgrade, the company noted. — Arjay L. Balinbin
2 wounded in roadside explosion in Basilan town; IS-linked group leader killed in Marawi
A SOLDIER and one civilian were wounded in a roadside explosion in Tipo-Tipo, Basilan Monday morning, an incident that the military described as a “desperate” act of the Abu Sayyaf group. “The Abu Sayyaf Group tends to conduct desperate attacks since their weakened manpower and capability can no longer withstand the military’s all-out offensives. They engage in inhumane attacks to gain popularity and to show off their potentials. So, I urge the peace-loving people of Basilan to remain vigilant and immediately report any suspicious person or object in their vicinity,” Lt. Gen. Corleto S. Vinluan, Jr., commander of the Western Mindanao Command (WestMinCom), said in a statement released late Monday. The blast from the improvised explosive device took place in Barangay Baguindan of the coastal town where troops were conducting mobile patrol. The two wounded were immediately taken to the hospital. “The victims are now in stable condition,” said Brig. Gen. Domingo B. Gobway, commander of the Joint Task Force Basilan. The island province of Basilan is considered among the success stories in terms of addressing local terrorism and has been relatively free from extremist violence. “We are utilizing all available resources to prevent the lawless elements from wreaking havoc in the peaceful communities and victimizing our soldiers and the innocent civilians,” Mr. Vinluan said.
MARAWI
Meanwhile, the WestMinCom also reported that a sub-leader of the ISIS-linked Daulah Islamiyah group, identified as Usop Nasif, was killed during a law enforcement operation in Marawi City early Monday morning. Seven police officers and one soldier were wounded during the gunfight at the terrorist leader’s hideout. “Based on the report from the ground, the wife of Nasif, identified as Almaira Panduma, was also wounded during the clash and was also brought to Amai Pakpak Medical Center for medical treatment,” said Brig. Gen. Jose Maria Cuerpo II, commander of the 103rd Infantry Brigade. The Daulah Islamiyah group was among those involved in the 2017 siege of Marawi City. — MSJ
Malacañang withholds ‘urgent’ certification from 3rd stimulus bill
PRESIDENT Rodrigo R. Duterte will not certify as urgent the proposed third stimulus law, and will instead work to identify sources of stimulus funds that will not bust the 8.9% budget deficit cap, his spokesman said.
“Ang ginagamit natin ngayon ay ang ating budget for 2021 (All we can use now is the 2021 budget),” spokesman Herminio L. Roque, Jr. said at a televised briefing Tuesday.
Citing Finance Secretary Carlos G. Dominguez III, Mr. Roque said the economic team instead proposes to keep the deficit cap intact, and will work with Congress to find funds that will not cause the government to exceed it.
Mr. Roque said Monday that the government can no longer extend additional assistance to low-income households affected by quarantine restrictions due to lack of funds.
The leadership of the House of Representatives has called on the executive branch to hasten the passage of House Bill No. 8031 or the proposed Bayanihan to Arise as One Act, informally known as Bayanihan III.
About P1.7 billion has been disbursed so far by the government’s assistance program for residents of areas affected by the new lockdown, Social Welfare Secretary Rolando Joselito D. Bautista said at a televised meeting with President Rodrigo R. Duterte Monday night.
Metropolitan Manila Development Authority Chair Benjamin D. Abalos, Jr. has said Metro Manila mayors plan to ask the government to extend the 15-day period for the distribution of the aid.
Mr. Abalos said the local officials are struggling to disburse the financial assistance within the period set by the Department of the Interior and Local Government, due in part to concerns about crowd control. — Kyle Aristophere T. Atienza
House Speaker says search is on for sources of funding for Bayanihan III
SPEAKER Lord Allan Jay Q. Velasco said economic managers are studying how to fund the proposed third stimulus package designed to revive the economy.
In a statement Tuesday, Mr. Velasco said following a meeting with the Department of Budget and Management and the Department of Finance last week that both departments are looking into possible funding sources for the proposed Bayanihan to Arise as One Act, known informally as Bayanihan III.
“I am very thankful to (Finance) Secretary (Carlos G.) Dominguez (III) and (Budget) Secretary (Wendel E.) Avisado for recognizing the importance of Bayanihan III in addressing financial gaps to better manage the government’s response to the impact of the pandemic,” Mr. Velasco said.
Mr. Velasco and Marikina City Rep. Stella Luz A. Quimbo filed the measure in February, the bill, if passed, would be the third pandemic law after the Bayanihan to Heal as One Act and the Bayanihan to Recover as One Act.
“We are extremely hopeful for the passage of Bayanihan III, which is a much bigger, well-targeted and proportionate stimulus package that would help struggling Filipinos and revive our pandemic-ravaged economy,” he said, adding that legislators hope to approve the bill at committee level before Congress resumes session on May 17.
The measure is currently pending with the House Committee on Economic Affairs. On Monday, Albay Rep. Jose Ma. Clemente S. Salceda said the bill could be approved by the committee this week at the earliest.
The proposed economic stimulus fund will be used to provide assistance to households affected by the lockdown and industries affected severely by the economic downturn. It will also fund procurement of medicine and vaccines for coronavirus disease 2019 (COVID-19).
Mr. Salceda has said the bill is currently at P370 billion, with legislators exploring ways to fund the measure without exceeding the targeted deficit cap. He is proposing amendments to temporarily increase the dividends due from government-owned and -controlled corporations to 75% of their profits from 50%. — Gillian M. Cortez
UK companies exploring possible investment in meat, machinery projects
INQUIRIES from British companies have increased in the past six weeks mainly from meat and machinery companies, British Chamber of Commerce of the Philippines Executive Director Chris Nelson said.
“We’ve had more inquiries in the last month to six weeks than we’ve had for a while,” he told ANC Tuesday.
He said that the increased interest was in part due to marketing efforts and the United Kingdom’s exit from the European Union.
“You gotta look at Brexit as well. Companies obviously have Brexit (in mind) so they’re obviously having to do a lot more paperwork or activities than before, and therefore I think they’re looking at other markets and opportunities,” he said in a phone interview.
The British meat industry, he told ANC, is interested in the country due to a year-long reduction of tariffs on pork imports done to address a supply shortage.
Inflation hit 4.5% in March, with meat prices posting 20.9% growth after an African Swine Fever outbreak caused a surge in pork prices.
“Obviously, there’s a one-year move to allow pork imports and there, the British industry, we have significant interest,” he said, confirming that there are British companies interested in exporting to the Philippines.
“What the British consumer likes (in meat) is actually the opposite of what the Filipino consumer (likes), so there’s a good mix in terms of opportunities… we see that as an opportunity to assist and also to bring down those prices.”
Agriculture groups have appealed against the tariff reduction, saying that it would hurt hog growers.
Mr. Nelson also said that British food and beverage, machinery, and safety and security businesses have been showing interest.
“We also have (interest) in terms of safety and security because obviously coronavirus has made changes in the workplace and we’re working with a company on that.”
He added in a phone interview that potential investments could start materializing towards the end of 2021.
The chamber has been supporting economic liberalization measures, including retail trade liberalization.
Mr. Nelson in October said that the British chamber continues to seek investors in the retail as well as the food and beverage sectors despite the pandemic, banking on the recovery of the economy in the long term. — Jenina P. Ibañez
Animal disease research center to be established in Nueva Ecija
AN ANIMAL disease research center will be established in Nueva Ecija to improve surveillance and of diseases likely to cross borders, such as African Swine Fever (ASF).
Agriculture Secretary William D. Dar signed Memorandum Circular No. 5 on April 8 authorizing the center’s establishment.
He said that the center will serve as the repository for animal vaccines and other equipment for disease management; provide planning and risk analysis expertise; and train animal health workers.
“This project envisions the creation and operation of the center that shall lead the conduct of surveillance, diagnosis and control, mapping, epidemiology, timely information dissemination, research and emergency management in case of the emergence of transboundary animal diseases,” Mr. Dar said.
Mr. Dar said Central Luzon State University (CLSU) in the Science City of Muñoz, Nueva Ecija will allocate at least 10,000 square meters for the construction of the center, adding that funding will come from Republic Act No. 11494 or the Bayanihan to Recover as One Act.
According to the memorandum, the DA’s Bureau of Animal Industry (BAI) will partner with state universities to implement the project such as CLSU, Cavite State University, Central Bicol State University, Central Mindanao University, Isabela State University, Visayas State University, Tarlac State University, Cagayan State University, Don Mariano Marcos Memorial State University, and Pampanga State Agricultural University.
“The BAI will also conduct collaborative activities with the state universities and colleges, and will designate personnel at the center should the need arise,” according to the memorandum.
CLSU will be in charge of hiring personnel and hosting the center for various development projects of government agencies, veterinary colleges, and research institutions.
It added that state universities and colleges should be accredited for the testing of transboundary animal diseases such as ASF, and assist in information campaigns and disease prevention, among others.
In a virtual briefing Tuesday, Agriculture Spokesman Noel O. Reyes said the construction of the project is expected to be finished within the year.
“It has laboratories that, among others, will… develop rapid test kits with the help of local technicians,” Mr. Reyes said. — Revin Mikhael D. Ochave
High infection rates seen damaging contact-intensive industries — IMF
ASIA-PACIFIC economies including the Philippines will experience a sluggish recovery in “contact-intensive” industries due to the continued surge in coronavirus infections, according to the International Monetary Fund (IMF).
“Growth in the ASEAN economies has been marked down to 4.5% given still high COVID-19 caseloads in Indonesia, Malaysia, and the Philippines, which will slow the pace of normalization in contact-intensive sectors,” Jonathan Ostry, acting director of the IMF Asia and Pacific Department, said in a statement Tuesday.
The IMF in its World Economic Outlook released on April 6 revised the Philippine growth outlook to 6.9% from the 6.6% it forecast in January, but said the higher estimate is mainly due to base effects from the record 9.6% contraction in 2020 which was the worst in Southeast Asia.
“A region (Asia Pacific) known for its trademark growth-with-equity model now runs the risk of entrenching excessive inequality. If policymakers do not act, they risk stunted opportunities, fragile growth, and even social unrest,” Mr. Ostry said.
Separately, Nomura Global Markets said in a report that the Philippines has spent the least on economic recovery measures, which could slow its rebound and hurt vulnerable groups.
Nomura Global analysts Euben Paracuelles and Rangga Cipta said the economy is only likely to return to its pre-pandemic levels by the third quarter next year, turning more pessimistic after a previous estimate that such output will be achieved by the second quarter of 2022. They expect the economy to grow by 5.4% this year from 6.4% previously forecast.
“The economy’s starting position remains fragile, with the pace of recovery still weak and the unemployment rate rising again, even before the lockdowns,” it said.
The analysts also expressed concern over the delays in sealing vaccine orders and the speed of inoculation.
“This suggests the country could continue to struggle to get the pandemic under control and leaves it vulnerable to bouts of recurring outbreaks throughout the year.”
“Regarding vaccine procurement, we think the government’s less proactive approach than some of its peers, such as Indonesia, suggests the country will likely fall further behind in acquiring more vaccines amid increasingly limited global supply and emerging constraints along supply chains and deliveries,” they said.
They also noted the small fiscal packages implemented by the Philippines, which they said were the smallest in the region in 2020 and 2021.
“Limited fiscal support, in our view, runs the risk of bigger scarring effects via more job losses and/or small-, medium-sized enterprises facing insolvency issues,” they added.
The report noted that the monthly subsidy for low-income households amounts to only P23 billion or 0.1% of gross domestic product, adding that this does not even involve new money as unused portions of previous stimulus packages were tapped. — Luz Wendy T. Noble