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The three-question rule for motivating people

In this pandemic, what’s the best approach in motivating workers when we can’t afford to give them pay increases? In the past, you’ve been advocating zero-cash motivational strategies that we find practical. However, at times, I find that to be a bit corny in certain situations. Is there a better way? — White Linen.

Harvard economist John Kenneth Galbraith (1908-2006) served in government under President John F. Kennedy. One day, the New York Times ran a profile on Galbraith, a copy of which was placed on a table one morning as he was having breakfast with Kennedy, who promptly asked him what he thought of the article.

Galbraith said it was all right, but he couldn’t understand why the article called him arrogant. The president replied: “I don’t see why not. Everybody else does.”

Really, arrogance manifests itself readily, either consciously or unconsciously. The workplace is no exception. Managers display a lot of arrogance either by word or deed, in the knowledge that many workers will simply keep quiet about it. This is wrong. That’s why I believe that “problem workers are created by problem managers,” especially when I see people who act arrogantly at work, even those with little authority.

This happens all the time when management holds outdated ideas and a command-and-control-based style in supervising workers.

I’m glad you like my zero-cash employee motivational strategies. I have a truckload of these ideas that I can share with anyone. In essence, however, it’s all about being kind to people. You can’t go wrong with that. The only challenge is when and how to start practicing kindness to your workers without appearing insincere.

The underlying idea of being kind may be the reason you feel a “bit corny” when you implement these strategies. So, it boils down to establishing and maintaining rapport with workers.

THREE BASIC QUESTIONS
Many managers fail to maintain rapport or friendship with their workers out of arrogance. They are snobs for some reason. They don’t care much about how the workers feel in certain situations. They reject their ideas and legitimate complaints as a matter of routine, as if they held a monopoly on the intellectual capacity to solve problems.

Conversely, there are also managers who excel in their relationships with workers. They don’t spend much money to motivate their people and yet they’re respected. That’s because they expend much effort to talk to people, if only to maintain a healthy and productive work environment where everyone is energized and working hard despite meager pay and perks.

In talking to more than 10,000 managers and workers in the course of my management career, I’ve come to the conclusion that it’s easy to talk to people if you start the ball rolling by asking three important questions focused on their well-being. These are:

Have you had lunch (or taken your coffee break)?

Depending on the timing, managers use this as an ice-breaker whenever they see their workers in the common areas like the hallway, elevator, meeting room, even the toilets. It’s like asking “how are you?” of people you haven’t seen in a while.

This question is important for initiating small talk, should not be ignored even by bosses who are foreigners, as we Filipinos are known to eat at least five times a day. If a worker says “not yet,” then consider it as an opportunity to eat with him, now that you have your opening to explore other things that include the worker’s difficulties and career goals.

What is your biggest challenge in your job?

Sometimes, this might put a worker on the defensive. Therefore, it’s best to soften the impact of this question by rephrasing it so it does not appear that the employee is incompetent. In asking this question, ensure that there are no other workers around who can hear you probing.

Whatever the answer, offer your assistance in solving any problems. Or ask for ideas on how to solve it without giving him any false expectations. Every step of the way, emphasize the fact that the organization may not be in a position to solve the problem at the moment. You may be surprised that many of the issues may be solved without spending much money.

How can I help you achieve your career goals?

Almost everyone has career expectations. If not, they aspire to job security and a reasonable salary and benefits, commensurate to their skill and work performance. Even if a worker does not aspire to a supervisory or managerial level, at least make an attempt to understand their interests.

Without understanding the career expectations of your people, you will always be at a loss how to treat them. In this situation, it would have been helpful if you encourage the worker to aspire for something by learning other skills that could help him do other work. That way, if the person changes his mind, he will still be available to suit up for the job.

ACT OF KINDNESS
As I’ve written in this space since 1993, there’s only one common thread to all this: People management is an act of kindness with an expiration date. If you can start being kind to people, you’ll be seen as an ideal manager who is approachable and gentle. If the workers don’t reciprocate, then you’re free to do whatever is reasonable under the circumstances, including but not limited to implementing drastic action.

In a situation such as this, you need to be sensitive and alert by taking the pulse of the workplace. You can only do this by maintaining friendships with people. If you can do this as a matter of routine, you can change the nature of your questioning that will allow you to take a deep dive on almost anything.

Be patient but persistent in practicing kindness to everyone. It’s simple, practical, and low-cost and yet it’s a powerful approach to management.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting.

You can also chat with him on Facebook or LinkedIn.

Insurance industry boosting financial resilience

SINGAPORE-BASED Asian Insurance Review has announced that Prudential Guarantee and Assurance, Inc. (PGAI) remained the highest ranked Philippine nonlife insurance company in terms of premium income for 2020.

Based on the latest financial statistics released by the Insurance Commission (IC) of the Philippines, PGAI has emerged as the country’s nonlife industry leader in nine of the last 10 years. In 2020, PGAI’s net premiums written (NPW) amounted to P4.6 billion, followed by Malayan Insurance Co. and Pacific Cross Insurance, Inc. with P4.1 billion and P3.3 billion, respectively. NPW represents how much of the premiums the company gets to keep for assuming risk.

For the life insurance sector, Sun Life of Canada (Philippines), Inc. topped the 2020 list with a premium income of P39.3 billion. Philippine AXA Life Insurance Corp. was second at P31.3 billion, and Pru Life Insurance Corp. of UK came in third at P31.0 billion. Sun Life has consistently been number one in its segment since 2012.

In his report to Finance Secretary Carlos Dominguez III, IC Commissioner Dennis Funa said that amid the challenges resulting from the COVID-19 pandemic, the insurance industry managed to grow 2.8% year on year as of September 2020. Meanwhile, total industry assets increased to P1.8 trillion from P1.7 trillion in 2019. The nonlife insurance sector’s assets expanded by 9.9% during the same period, while those in the life insurance sector grew by only 1.0%.

Mr. Funa also revealed that during the fourth quarter of 2020, the industry’s total premium income of P216.5 billion declined by P8.5 billion compared to the corresponding period in 2019. As of the third quarter last year, P2.4 billion in aggregate claims were paid by insurance companies, with the health maintenance organization (HMO) segment paying the biggest chunk of coronavirus-related claims.

HMOs paid P1.3 billion or 55% of the total claims in 2020, which were mostly for hospitalization benefits. The life insurance segment was next at P817.9 million, followed by mutual benefit associations at P222 million. Paying the lowest in claims were the nonlife insurers at P56.5 million.t

According to a circular issued by Mr. Funa this month, the nonlife sector has been directed to implement sustainable catastrophe insurance premium rates. The IC is set to formally establish the Philippine Catastrophe Insurance Facility (PCIF) with technical assistance from the World Bank. Prior to the lockdowns last year, a memorandum of understanding was signed between the IC, the Philippine Insurers and Reinsurers Association, and the National Reinsurance Corp. of the Philippines to formalize the PCIF.

Among the PCIF’s objectives are to increase Philippine financial resilience toward natural disasters to hasten the recovery of communities after a large loss event; address the catastrophe insurance gap; create a more risk-appropriate rating environment that would ensure sustainable disaster premium rates; provide the public with more inclusive access to catastrophe insurance protection; and improve the catastrophe resilience of the Philippine insurance industry and its capacity to retain disaster risks.

Nonlife insurers are encouraged to redirect their catastrophe risks to the PCIF, which shares the pooled risks with the participating companies. Since the Philippines is prone to disasters, it faces some of the highest climate-related risks in the world. Thus, there is a need to accelerate the penetration of climate and disaster risk insurance, which still has a low penetration rate in the country.

 

J. Albert Gamboa is the chief finance officer of Asian Center for Legal Excellence and co-chairman of the FINEX Week Committee. The opinion expressed herein does not necessarily reflect the views of these institutions and BusinessWorld.

Stuff to do (04/30/21)

Weave-It-Yourself: Inabel Workshop

BGC Art Center’s You are Not Alone: Art Workshops presents the Weave-It-Yourself: Inabel Workshop with artist Judith Basco on May 29 (2 to 5 p.m.) via Zoom. Discover the weaving heritage of the Ilocos region and learn how to weave the beautiful Inabel pattern using a modern frame loom. The Inabel pattern used in this workshop was shared by a local weaving community in Ilocos Sur with the hopes of passing on the craft to the next generation. The artist has translated and refreshed it for modern weavers. Recommended for ages seven-years-old and above (parental supervision is needed.). For more information and to register, visit https://www.bgcartscenter.org/yana-workshop-inabel.

Rustan’s Embrace Summer sale

THIS summer, Rustan’s gives many reasons to Embrace Summer while shopping in the comforts of home. With special offers until the end of May, customers can enjoy discounts on beauty products, menswear, womenswear, fine jewelry, kids’ apparel, toys, gadgets, and home essentials all summer long. Customers can use the Personal Shopper On Call service (0917-111-1952) to make shopping easy. Discounts of up to 50% off will be offered from April 30 to May 2. Rustan’s offers 20% on regular items from womenswear brands such as Natori, Ricardo Preto, Yuul Yie, Staud, By Far, See by Chloe, Halson Heritage, and Mac Duggal. Resort wear from Maaji, Seafolly, Vince Camuto Swim, among many others, are also up for grabs. Rustan’s Private Brands are marked down till up to 50% off for select brands. Enjoy 50% off from OC Woman and Jill; 15% off on regular items from Lady Rustan and U My Philippines; and 20% off with a free pouch for every minimum purchase of P5,000 on select accessories from Criselda Lontok. For every minimum purchase of P5,000 at Lotus or Luna, get a free On-The-Go bag or a free Linen Mist Spray, respectively. Choices from Ricardo Preto, Hackett, Trunks, Magnanni, Allen Edmonds, and Pedro del Hierro at up to 20% off on regular items; 10% off is also offered on select items from Innostyle and Richmond&Finch. Stay up to date with gadgets and avail 20% off on selected items from Lexon and LabC, and keep hydration a priority with BKR items at 30% off. Meanwhile, Sony is offering up to 50% off on select items from April 30 to May 31. For special occasions this season, consider special tokens from Rustan’s The Silver Vault. From April 30 to May 2, select fine jewelry pieces will be on special offer up to 40%. Montblanc has a selection of pieces on special offers that collectors and hobbyists will definitely enjoy. From April 30 to May 5, get discounts of up to 15% on Kiddimoto, Recur, Jellycat and Battat, and up to 30% discount on items from Bestway, Chienti, Dahon, Suncon, Wange, Play at Home and Traxx. Offered until May 31, enjoy 10% discount on all items from Z Apparel and keep kids learning even during summer break with up to 40% off on select items from LT educational. All Charlie Banana items, Herbal Sunscreen from Combi, sun protection products from Mustela, sunscreen lotion from Kindee and Zoocchini infant summer items are at 10% off. Swimava and Banz infant products are up for grabs at 15% off, along with the Orange and Peach sunblock and Kids Face Masks, all offered with the same discount. Keeping kids active this summer season? Select items from New Balance, Nike, and Under Armour are available for a 10% discount. Give your kitchen a bit of an upgrade with up to 40% discount on selected items from Gorenje, Russell Hobbs and Maximus and 10% off on Breville’s Smart Oven Air Fryer. Rustan’s The Beauty Source has a number of special offers and discounts of up to 20% off from April 30 to May 2. These are just some of the discounts available this weekend from Rustan’s.

How PSEi member stocks performed — April 29, 2021

Here’s a quick glance at how PSEi stocks fared on Thursday, April 29, 2021.


Regional share in gross domestic product, 2020

THE economy of the National Capital Region (NCR), alongside those of Calabarzon and Central Luzon, suffered double-digit contraction that weighed heavily on the country’s output last year, the Philippine Statistics Authority (PSA) reported on Thursday. Read the full story.

Regional share in gross domestic product, 2020

Peso strengthens on Fed statement

BW FILE PHOTO

THE PESO rebounded versus the greenback on Thursday as the US Federal Reserve expressed its commitment to retain policy support and following the extension of local restriction measures, which could hurt imports.

The local unit closed at P48.315 per dollar yesterday, strengthening by 16.2 centavos from its P48.477 finish on Wednesday, based on data from the Bankers Association of the Philippines.

The peso opened the session at P48.45 per dollar, which was also its worst showing for the day. Meanwhile, its strongest level was at P48.29 against the greenback.

Dollars exchanged slipped to $837.5 million yesterday from $854.98 million on Wednesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was backed by the Fed’s signals of continued support for the economy via easy monetary policy.

The Fed maintained rates on Wednesday and gave a rosier outlook for economic recovery, Reuters reported. However, Fed Chairman Jerome Powell said “it is not time yet” to discuss rolling back support as the labor market is still in a dire situation.

Mr. Ricafort said the extension of the modified enhanced community quarantine also backed the peso’s appreciation on Thursday as this could affect imports.

President Rodrigo R. Duterte on Wednesday night placed Metro Manila, Bulacan, Rizal, Laguna, and Cavite under modified enhanced community quarantine (MECQ) from May 1 to 14.

Meanwhile, a trader said the peso strengthened due to profit-taking after its depreciation on Wednesday.

For today, Mr. Ricafort gave a forecast range of P48.27 to P48.37 per dollar while the trader expects the local unit to play around the P48.25 to P48.45 band. — LWTN with Reuters

PHL shares climb on last-minute bargain hunting

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

SHARES closed higher on Thursday on last-minute bargain hunting and as the country recorded slightly lower new coronavirus disease (COVID-19) cases the previous day.

The Philippine Stock Exchange Index (PSEi) rose by 18.37 points or 0.28% to close at 6,487.51 on Thursday, while the broader all shares index gained 10.46 points or 0.26% to end at 3,967.96.

“The local bourse traded mostly in the red territory after the government extended the MECQ (modified enhanced community quarantine) in Greater Manila, which would adversely affect those businesses that are prohibited to operate, as well as those whose operations are at a limited capacity only like restaurants, malls, etc,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a Viber message.

“Last-minute bargain hunting lifted the PSEi,” Ms. Alviar added.

Meanwhile, First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said the 6,300 level is “proving to be a strong support” for the PSEi.

“Narrow range trading continues in a show of market resiliency anchored on recovery hopes inspired by [the] International Monetary Fund’s 6.5% GDP (gross domestic product) growth outlook this year,” Ms. Ulang said in a separate Viber message.

AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said the lower COVID-19 cases reported on Wednesday made investors optimistic.

“[However,] trading volumes remain low which signals a lack of interest from investors due to the uncertainty and the lack of justification for high valuations,” Mr. Mangun said in an e-mail.

The Health department reported 6,896 new COVID-19 infections on Wednesday. However, on Thursday, new cases rose to 8,276, which brought total infections to 1,028,738.

All sectoral indices posted gains on Thursday except for holding firms, which declined by 15.52 points or 0.23% to finish at 6,558.43.

Meanwhile, mining and oil increased by 251.22 points or 2.73% to end at 9,447.52; services climbed by 11.84 points or 0.82% to 1,455.52; property gained 22.99 points or 0.73% to 3,166.93; industrials rose by 34.95 points or 0.40% to close at 8,709.65; and financials went up by 4.29 points or 0.30% to 1,410.28.

Value turnover declined to P4.73 billion on Thursday with 4.23 billion shares traded, from the P5.31 billion with 2.91 billion issues the previous day.

Advancers outnumbered decliners, 107 against 92, while 45 names closed unchanged.

Net foreign selling dropped to P394.39 million from the P617.51 million seen on Wednesday.

AAA Southeast Equities’ Mr. Mangun said he expects the market to continue trading sideways in the coming weeks.

Meanwhile, FMIC’s Ms. Ulang expects the PSEi to trade in a “narrow range” of 6,300 to 6,500.

“But next week with inflation tempering, relaxation of business reopening guidelines of flexible MECQ, plus arrival of vaccines, buying appetite toward bargain good names will return and provide a market uplift,” she said. — Keren Concepcion G. Valmonte

Duterte says Philippines won’t end sea patrols

PRESIDENTIAL PHOTO/ KING RODRIGUEZ

THE PHILIPPINES won’t end patrols in the South China Sea, President Rodrigo R. Duterte said on Wednesday night, adding that the country’s sovereignty is nonnegotiable.

Tensions over the sea, which China claims almost entirely, have spiked as Beijing refuses to withdraw vessels from Philippine waters and Manila boosts sea patrols. Mr. Duterte is under growing domestic pressure to take a harder stance, but has been reluctant to confront China over the issue.

“I read China said we should leave,” the tough-talking leader said in a televised speech. “I now say: Do not leave. Period,” Mr. Duterte told Philippine ships that held drills in the disputed waterway.

Mr. Duterte said Philippine sovereignty over the disputed waterway is nonnegotiable even if it owes China a “debt of gratitude.”

“There are things which are not really subject to a compromise,” the President said. “I hope they will understand, but I have the interest of my country also to protect.”

China’s Foreign Ministry earlier demanded that Manila stop its sea drills in the South China Sea.

Mr. Duterte said the Philippines would not go to war with China over the South China Sea, citing the country’s long-standing friendship with its neighbor.

“We do not want war with China. China is a good friend,” he said in a televised speech, citing Beijing’s donation of coronavirus vaccines.

“So China — let it be known — is a good friend and we do not want trouble with them, especially a war,” Mr. Duterte said.

China has donated at least a million doses of CoronaVac to the Philippines.

Mr. Duterte blamed retired Supreme Court Justice Antonio T. Carpio and former Foreign Affairs Secretary Albert F. Del Rosario for China’s island-building activities in the South China Sea.

He said both had failed to stop Chinese incursions in the area under the administration of his predecessor Benigno S.C. Aquino III.

“I have one question for Carpio and Albert: If you are bright, why did we lose the West Philippine Sea?” Mr. Duterte said in Filipino, referring to areas of the sea within the country’s exclusive economic zone.

He said China’s occupation of certain features in the water happened during their time.

Mr. Carpio and Mr. Del Rosario led the country’s legal fight against China’s claims in the area. An international tribunal in 2016 favored the Philippines and rejected China’s claim to more than 80% of the sea based on a 1940s map.

Mr. Duterte insisted that invoking the legal victory, which he said was nothing but “paper,” constitutes going to war with China.

Mr. Carpio and Mr. Del Rosario and other maritime experts have said the Philippines does not need to go to war to defend its territories.

In a statement on Thursday, Mr. Carpio noted that it was Mr. Duterte who announced that he was “setting aside” the ruling in favor of seeking loans and investments from Beijing worth $22 billion.

‘GALUNGGONG’
“Today, less than 5% of those loans and investments have materialized even as President Duterte is already leaving office next year,” he said. Mr. Duterte had also allowed China to fish in the country’s territorial waters, he added.

“We even import galunggong (round scad) now from China, the same galunggong that Chinese fishermen take in the West Philippine Sea.”

Mr. Duterte also “remained absolutely silent” when China seized a sand bar just two nautical miles from Thitu Island near Palawan province in 2017, the former magistrate said.

“China’s seizure of Sandy Cay has resulted in the loss of one-third of our territorial sea in Pag-asa, a loss of maritime area three times larger than the land area of Quezon City,” Mr. Carpio said. “Still, the President has declared ‘I simply love President Xi Jinping.’”

“Filipinos deserve, and should demand, a President who loves Filipinos first and foremost and who will uncompromisingly defend Philippine sovereignty and sovereign rights in the West Philippine Sea,” he added.

Mr. Duterte last week said he would only deploy warships to the South China Sea once Beijing starts drilling for oil and taking other key resources.

He also said he would not quarrel with China over fish since there is not enough in the area, something that the local fishery bureau and political analysts corrected.

He said drilling oil from areas within the Philippines’ exclusive economic zone is not part of the country’s agreement with China.

He blamed his predecessor for failing to maintain Philippine presence in the area. Mr. Duterte said the Philippines would not be able to gain control of its territories in the disputed waterway “without bloodshed.”

The Philippines has fired off several diplomatic protests against China after authorities spotted a swarm of Chinese vessels, including six war ships within its waters in the South China Sea. 

Two Houbei class missile warships were spotted at Mischief Reef, one Corvette class warship at the Fiery Cross Reef and one navy tugboat at Subi Reef, according to a Philippine task force on border security.

Two Chinese coast guard vessels were also spotted at Thitu Island, which the Philippines calls Kalayaan, according to a report based on patrols by Philippine authorities on April 11.

The Philippine task force said more than 200 Chinese ships were scattered in waters within its exclusive economic zone. About 15 vessels either manned by Chinese militia, People’s Liberation Army Navy or the Chinese Coast Guard had also been spotted at the Scarborough Shoal.

Meanwhile, about 240 Chinese vessels that China claims are ordinary fishing vessels have spread out to a wider area in the South China Sea, the agency said. The ships allegedly manned by Chinese maritime forces were scattered across the Spratlys, about 175 nautical miles west of Palawan province, it added.

It said 136 vessels were seen at Gaven Reef and more than 60 vessels were at McKennan Reef.

The rest of the ships were scattered in other parts of the disputed territory — 11 at the Second Thomas Shoal, nine at Whitsun Reef, six at Mischief Reef, five at Loaita Island, four at Thitu Island, three at Subi Reef and one at West York Island. The ships were about 60 meters long.

The Philippines has summoned China’s ambassador to convey its “utmost displeasure” over the continued presence of Chinese militia vessels at Whitsun Reef.

Meanwhile, Senator Risa N. Hontiveros-Baraquel said the Philippines is not indebted to China despite its donation of coronavirus vaccines.

“The donated vaccines should not be in exchange for our rights in the West Philippine sea,” she said in a statement in Filipino.

Senator Grace S. Poe-Llamanzares said the government should assert the country’s rights and protect Filipino fishermen by continuing to patrol the sea.

“Our presence in the West Philippine Sea is an unyielding display that we are standing our ground on what is ours and securing our people’s productive access to our marine resources,” she said in a statement. — Kyle Aristophere T. Atienza and Vann Marlo M. Villegas

Manila takes delivery of 500,000 more vaccines from China

THE PHILIPPINES took delivery of about 500,000 more doses of CoronaVac made by China’s Sinovac Biotech Ltd. on Thursday, according to the Presidential Palace.

About 1.5 million more doses of CoronaVac would arrive on May 7, presidential spokesman Herminio “Harry” L. Roque, Jr. told a televised news briefing.

The country expects to receive 500,000 more doses of CoronaVac next month, vaccine czar Carlito G. Galvez, Jr. told the same briefing. About 4.5 million doses of CoronaVac will arrive in June, he added.

The Philippines has received 3.5 million doses of CoronaVac, including one million doses donated by China.

Mr. Galvez said the shipment of about 15,000 doses of Sputnik V developed by Russia’s Gamaleya Research Institute of Epidemiology and Microbiology, which was supposed to be delivered on Wednesday, is expected to arrive on May 1.

The Department of Health (DoH) reported 8,276 coronavirus infections on Thursday, bringing the total to 1.03 million. The death toll rose by 114 to 17,145, while recoveries increased by 6,636 to 942,239, it said in a bulletin.

There were 69,354 active cases, 1.1% of which were critical, 94.9% were mild, 1.6% did not show symptoms, 1.4% were severe and 0.92% were moderate.

About 11 million Filipinos have been tested for the coronavirus as of April 27, according to DoH’s tracker website.

The coronavirus has sickened about 150.3 million and killed 3.2 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 127.8 million people have recovered, it said.

Mr. Galvez said the government expects to take delivery of as many as 10 million coronavirus vaccines starting June.

About 2.3 million doses of the vaccine developed by Pfizer, Inc. will arrive not later than June. Mr. Galvez said the shipment already includes the 117,000 doses of Pfizer vials that were supposed to arrive in February. 

About 94,000 doses of the vaccine developed by Moderna, Inc. and two million doses of Sputnik V are also expected to arrive in June.

At least 1.3 million doses of the vaccine developed by AstraZeneca, Plc, which were paid for by the private sector, will arrive in the second half.

The Philippines aims to vaccinate 70 million Filipinos this year, but as of April 27, only about 1.8 million doses have been given out. Mr. Galvez said the government expects to vaccine 500,000 Filipinos daily in the third quarter.

Meanwhile, Trade Secretary Ramon M. Lopez told Radyo 5 he was recommending the reopening of some salon and barbershop operations in areas under a modified enhanced community quarantine (MECQ) to fast-track job recovery.

The government has extended the modified strict lockdown in Metro Manila and nearby provinces until May 14.

Personal care services such as beauty salons, massage therapy, cosmetic clinics, nail spas and reflexology centers are barred in areas under the modified lockdown.

Trade Undersecretary Ruth B. Castelo told a separate news briefing the agency had recommended allowing personal care services to open at 50% capacity and restaurants to offer indoor dining with an initial 10% capacity. — Kyle Aristophere T. Atienza, Vann Marlo M. Villegas and Jenina P. Ibañez

Justice chief acknowledges red-tagging, anti-terror law ‘somehow linked’ 

JUSTICE SECRETARY MENARDO I. GUEVARRA — PCOO.GOV.PH

JUSTICE Secretary Menardo I. Guevarra has admitted that the escalation of red-tagging activities by state agents can be linked to a provision in the new anti-terror law that criminalizes recruitment and memberships in terrorist groups.

“There is a provision in the anti-terrorism law about recruitment and membership in terrorist organizations and punishes those acts accordingly, (which may be related) to the percent of what’s happening now that certain persons or group of persons are being tagged as communist or terrorist or subversive or enemies of the state,” Mr. Guevarra said in an interview over ABS-CBN News Channel on Thursday.

He explained that prior to the Anti-Terrorism Act of 2020, joining or supporting the communist movement was not illegal as the 1957 anti-subversion law that criminalized involvement in such groups was repealed in 1992.

The United States Department designated the Communist Party of the Philippines and its armed wing, the New People’s Army, as a Foreign Terrorist Organization on Aug. 9, 2002. The Philippine government, through a proclamation signed by President Rodrigo R. Duterte in Dec. 2017, also declared the CPP-NPA as a terrorist organization.

University of the Philippines’ College of Law Associate Professor Rowena E.V. Daroy-Morales said while “red-tagging cannot be avoided,” it should not be made normal practice by government representatives as it goes against basic freedoms.

“Why do we need to avoid any kind of tagging? We are proud of being a democratic country, of freedom of speech and freedom of press in our Constitution, so paano natin sasabihin na dapat maging ganyan o dapat hindi maging ganyan (how can we dictate one’s actions),” she said in a phone interview with BusinessWorld on Wednesday.

“There was no such thing as red-tagging until it evolved. It is a moral process more than a legal process,” she added. — Bianca Angelica D. Añago

Senator proposes realignment of unused stimulus funds to help micro enterprises, individuals

A SENATOR urged the government to convert unused stimulus funds to assist micro businesses and individual workers heavily affected by the coronavirus pandemic but do not qualify for aid or loans under current guidelines.

In a statement, Senator Maria Imelda Josefa R. Marcos said the “sluggish disbursement” of stimulus funds can be addressed by converting the budget for the loan programs of state banks and pension funds into “more direct forms of assistance” like wage subsidies and job programs.

“For example, despite 65% of carinderias (eateries) and small neighborhood shops having temporarily or permanently closed, this target group cannot access these loans, being mere barangay-level operations that are not qualified according to the requirements of the Small Business Corporation and the DTI (Department of Trade and Industry),” she said.

Ms. Marcos also said that even micro, small and medium enterprises (MSMEs) that are qualified to borrow will be hesitant to take out a loan amid the pandemic. “Until there is a clearer policy on imposing community quarantines, they will lack the confidence of being able to pay back,” she said.

Ms. Marcos noted that only P3.3 billion of the P10 billion allotted for the DTI’s COVID-19 Assistance to Restart Enterprises under Bayanihan II has been lent out. The P6 billion allotted for those affected in the tourism sector may also remain unutilized until the vaccine rollout expands and tourist confidence is boosted, she said.

The funds that were provided by the LANDBANK of the Philippines, Development Bank of the Philippines, and Philguarantee Corporation are “similarly slow-moving,” according to the senator.

The amounts should be formed into cash assistance distributed by the Department of Social Welfare and Development, Department of Labor and Employment, or through the Social Security System, “plus other direct subsidies for digitizing, retrofitting, retooling, and retraining MSMEs,” she said. — Vann Marlo M. Villegas

Gov’t eyes mental health programs for coronavirus survivors

THE TASK force leading the government’s pandemic response said on Thursday the administration is currently discussing with experts the viability of a plan to provide aftercare programs for coronavirus patients.

“We have talked to experts so we can explore ‘yung further mental care and social healing,” Secretary Carlito G. Galvez told a televised news briefing, noting that some coronavirus survivors have experienced mental health problems.

Mr. Galvez, chief of the pandemic plan implementation, said mental care and social healing programs are necessary to facilitate the recovery of survivors who have experienced abandonment and isolation. “Maraming mga pamilya ang nagbi-breakdown dahil kasi nakikita natin hindi nila alam ng gagawin (There are many families that break down because we see that they are at a loss on what to do),” he said.

Presidential Spokesman Herminio “Harry” L. Roque, Jr., for his part, said the program is part of the government’s “reintegration” program for coronavirus patients.

The task force has yet to discuss the matter, Mr. Roque said at the same briefing. — Kyle Aristophere T. Atienza