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Budget deficit to remain wide until 2022

THE GOVERNMENT is likely to run a wide fiscal deficit until 2022 as it supports the economy amid the coronavirus crisis, Fitch Solutions Country Risk & Industry Research said. 

“We see limited risks from running wide deficits in the near term given the economy’s need for demand and investment. However, longer-term pressures on public finances will warrant a substantial tightening of fiscal support over the medium term,” Fitch Solutions said in a note on Friday. 

“We do not view such stimulus as a risk to the near-term public debt outlook and anticipate fiscal consolidation over the coming years,” it added. “As noted, we believe the rise in public indebtedness in the near term is warranted given the weak economic backdrop and poses limited risks to the Philippines’ well managed public debt profile.” 

Fitch Solutions expects the country’s budget deficit to be equivalent to 7.7% and 6.5% of the country’s gross domestic product (GDP) in 2021 and 2022, respectively. These estimates are smaller than government’s own projections of 9.4% and 7.7% for this year and next. 

The government wants to raise P3 trillion from domestic and external lenders this year to help fund its budget gap. In 2020, the fiscal deficit ballooned to 7.5% of GDP from 3.4% in 2019. 

Latest data from the Bureau of the Treasury showed the budget deficit stood at P44.4 billion in April, significantly lower than the P273.9-billion gap logged a year earlier and a 76.8% drop from the P191-billion shortfall in March.  

In the first four months of the year, the government recorded a fiscal gap of P365.9 billion, slightly wider than the P360-billion deficit seen in the same period of 2020, due to muted growth in spending and revenues. 

“We expect revenues to pick up as mobility restrictions imposed in late March are eased and with base effects,” Fitch Solutions said. 

“Funding for such plans (pandemic response) could ultimately eat into funding allocated to other areas in the 2021 budget and we believe the potential for further COVID-19 outbreaks in 2021 will mean more resources being diverted from the government’s infrastructure drive towards the healthcare and household funding response,” it added. 

Meanwhile, Fitch Solutions said the passage of the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act, under which the corporate income tax was immediately reduced to 25% from 30%, could help in the economy’s recovery as it put the country’s tax rate in line with those of its regional peers such as Thailand (20%), Malaysia (24%), Indonesia (22%), and Vietnam (20%).  

“However, as we have noted previously, tax reform alone will not address the issues the Philippines faces attracting FDI (foreign direct investments). The likely disruption to government infrastructure investment again in 2021 will delay much needed logistical improvements and spending on utilities that are needed to support business hubs,” Fitch Solutions said. — LWTN 

Over 100 stores fail to get safety seal

OVER A hundred applications for safety seals assessed by the Trade department have been denied due to non-compliance with health protocols, its top official said. 

Trade Secretary Ramon M. Lopez said the agency assesses retail, hardware, and repair shops, while other departments cover sectors like tourism and government. 

The safety seal certification program provides establishments stickers for display at their entry points if they comply with the required health safety protocols.  

Over a hundred safety seal applications were approved, while 600 are still pending. 

Gyms and other indoor non-contact sports venues are now allowed to operate with limited capacity in Metro Manila and its neighboring regions as soon as they have safety seals. Gym inspections are conducted by either the city or municipality. 

Mr. Lopez said at the Laging Handa briefing on Friday that denied applications can be reversed once the shops have complied with the rules. 

Shop inspections are still ongoing, he said. 

Health safety protocols include required screening at shop entrances and the availability of hand washing stations and physical barriers for distancing. — J.P. Ibañez 

CLI to develop P20-B techno-business park

Cebu Landmasters, Inc. will be the developer and manager of the P20 billion Minglanilla Techno-Business Park in Cebu. -- Company handout

The Philippine Reclamation Authority (PRA) has approved the 100-hectare reclamation project in Cebu, paving the way for Cebu Landmasters, Inc. (CLI) to develop a P20-billion techno-business park in the area.  

The PRA and Minglanilla local government unit on Friday signed the agreement for the Ming-Mori Techno-Business Park.  

CLI will develop and manage the techno-hub, saying it is one of the property developer’s biggest projects so far.   

“Because of the scale of this project that will take several phases to develop, we have carefully and meticulously planned it to be sustainable and supportive of future generations,” CLI Chief Executive Officer (CEO) and Ming-Mori Development Corp. President Jose R. Soberano III said in a statement on Friday.  

Aside from receiving the go signal from the PRA, the P20-billion project received an environmental compliance certificate from the Department of Environment and Natural Resources (DENR) in 2020 after more than five years of review.   

“This is one of the start of a series of reclamation probably here because the only way for us to grow farther is to expand and to reclaim,” Environment Secretary Roy A. Cimatu said at the signing ceremony on Friday.  

A detailed engineering design of the project is still needed, as well as other pre-construction requirements.   

The Ming-Mori project is an “island type” of reclamation, which will be connected by bridges. The 100-hectare land area will be divided into two islands, one will span 75 hectares while the other will cover around 25 hectares. In-land filling for the project will be sourced from the mountains of Minglanilla, “as much as possible.”   

“This could also start the ball rolling for more similar projects along the coast and that’s the only way we could expand because we all know that reclamation is always the answer for limited [areas],” Mr. Soberano said at the ceremony, pointing to countries like Singapore and the United States.  

The hub is designed by Singapore-based Surbana Jurong Consultants Pte. Ltd.   

Its first phase will feature commercial, residential, and institutional centers. It will also have its own port facility.   

Cebu Landmasters said it has “solid support” from equity and bank partners for the project. It was also able to secure P3 billion notes to fund the first phase of construction, which is eyed to begin in the fourth quarter. It aims to complete the Ming-Mori project within three to five years.  

Minglanilla Mayor Elanito A. Peña said the techno-business hub will help the municipality to achieve its goal of becoming a “world-class economic hub.”  

“Our constituents will no longer look for jobs that require them to travel long [distances] as jobs can now be availed within reach,” Mr. Peña said. “The municipality income I think will increase, and therefore we will be able to better provide the basic needs and services to our people.”  

DITO says it has nearly 900,000 subscribers

DITO Telecommunity Corp. is aiming to reach a million subscribers “soon” after connecting about 890,000 subscribers as of Thursday. 

The country’s third telco player in a briefing on Friday said that it will add 23 more locations to its commercial coverage starting Saturday. 

“Concentration of areas served by DITO continues to be in the Visayas and Mindanao as we started rolling out in those areas, but Metro Manila is fast catching up,” DITO Chief Technology Officer Rodolfo D. Santiago said. 

DITO has expanded its commercial services in 100 cities and municipalities after its started offering mobile services in Metro Manila and other parts of the country last month.  

“By end of June, we will approximate about 150 total cities and municipalities,” Mr. Santiago said. 

DITO aims to have 30% share of the market, he added. 

Multinational company Nokia Corp. last month announced that DITO had chosen the firm to deploy fifth generation (5G) services in Mindanao. 

DITO Chief Administrative Officer Adel A. Tamano said that the company has already made 5G technology available. 

“But more actions need to be done for it to be widely available commercially,” he said. 

Shares in DITO CME Holdings Corp., the controlling shareholder of DITO Telecommunity, went up 0.31% or three centavos to P9.60 on Friday. — Jenina P. Ibañez 

PLDT, DENR team up for e-waste collection

A #SmartPlanet phone recycling bin has electronic sensors that can send out Smart e-load in exchange for used phones, chargers, and tablets. -- Company handout

PLDT Inc. and its wireless subsidiary Smart Communications, Inc. said on Friday that they have signed a deal with the Environment department to launch an initiative to collect electronic waste from cell sites and offices. 

The companies will work with the Department of Environment and Natural Resources (DENR) through the Environment Management Bureau (EMB) Region 3 and its accredited provider JMR Trade and Transport Services to collect discarded phones, tablets, computers, chargers, and device accessories.  

Hazardous waste like used lead acid batteries and fiber optic cables will also be collected. 

The DENR-EMB Region 3 office will work with various regional offices to back the waste recovery project, and the agency will link PLDT to science researchers. 

The partnership is part of PLDT and Smart’s e-Waste Program to encourage recycling discarded electronic devices. 

The program is rolling out what the company calls the #SmartPlanet phone recycling bin, which has electronic sensors that can send out Smart e-load in exchange for used phones, chargers, and tablets.  

The firm plans to assign bins to its offices in Bacolod, Baguio, Batangas, Bulacan, Cagayan de Oro, Cavite, Cebu, Davao City, Iloilo, Laguna, Metro Manila, and Pampanga by next month. 

“With the partnership, PLDT also commits to ramping up environmental awareness and proper disposal of e-waste among its staff, employees, partners and stakeholders,” the company said in a statement Friday. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Jenina P. Ibañez 

SEC clears capital stock hike of AC Energy

The Securities and Exchange Commission has approved AC Energy Corp.’s (ACEN) capital hike, the listed firm told the local bourse on Friday. 

ACEN increased its capital stock to P48.40 billion from the previous P24.40 billion, which would pave the way for the asset-for-share swap with AC Energy and Infrastructure Corp. for the latter’s international assets. 

The capital stock hike is also seen to make room for future capital raising exercises for new projects and other acquisitions. 

The increase was previously approved by majority of ACEN’s board of directors and was voted on by stockholders representing at least two-thirds of the company’s outstanding capital stock. 

On Friday, the Ayala-led firm also said that the SEC has given the greenlight for the firm to revise its articles of incorporation, amending its capital stock, and increasing the number of shares exempted from the pre-emptive right of existing shareholders to reach a 24-billion cap, from the previous 16-billion limit. 

“The proposed amendment will allow the Company to acquire assets needed for corporate purposes,” ACEN said. 

The firm hopes to become the largest listed renewables platform in the region as it targets a net attributable capacity of 5,000 megawatts by 2025. — Angelica Y. Yang 

Coca-Cola aims to collect 500MT of plastic waste in Muntinlupa

A Coca-Cola Philippines initiative plans to collect 500 metric tons (MT) of plastic waste in Muntinlupa City over a one-year period. 

The company partnered with the Philippine Business for Social Progress (PBSP) and social enterprise Plastic Flamingo to collect plastic from traditional collection points, junk shops, and communities in Muntinlupa.  

PBSP will provide resources like tri-bikes and personal protective equipment for the collectors. The groups partnered with 27 junk shops and 20 waste collectors that have been trained to identify different plastic types. 

“The problem of solid waste, particularly flexible plastic, has skyrocketed during the pandemic and threatens the environment more than ever. This project, while helping the environment, will help waste pickers in Muntinlupa earn income from the waste collected,” PBSP Executive Director Elvin Ivan Y. Uy said in a statement.  

Collected plastic waste will be sold to designated junk shops that will then deliver the raw materials to Plastic Flamingo facilities for upcycling. 

Coca-Cola is fast-tracking the launch of a new PET recycling facility in General Trias, Cavite.  

A joint partnership between Coca-Cola Beverages Philippines and Bangkok-based Indorama Ventures, a global leader in packaging solutions and green technology, the facility is expected to be the biggest bottle-to-bottle recycling plant in the Philippines. It aims to process around 30,000MT of used PET bottles and produce around 16,000 MT of recycled PET resin annually. — Jenina P. Ibañez  

Fully vaccinated seniors in MECQ, GCQ areas now allowed outdoors

PHILIPPINE STAR/ MICHAEL VARCAS

The task force handling the pandemic response has adopted a resolution exempting fully vaccinated seniors in areas under general and strict lockdowns from the stay-at-home rules, according to the presidential palace. 

The taskforce allowed the movement of fully vaccinated senior citizens in areas under General Community Quarantine and Modified General Community Quarantine, subject to presentation of a duly issued COVID-19 vaccination card, presidential spokesman Herminio L. Roque, Jr. said on Friday. 

Seniors are still limited to travelling within their zone as interzonal travel is still prohibited, except for point-to-point travel, Mr. Roque said. 

Throughout the COVID-19 pandemic, only persons aged 15 to 65 years had been allowed outdoors. 

Government data showed that 415,540 seniors have been fully vaccinated against the coronavirus as of June 8.  

Meanwhile, the Palace official said the task force also allowed gyms, fitness studios, skating rinks, and racket sports courts in the National Capital Region Plus to resume operations at 30% of the venue’s capacity. 

Mr. Roque said historical sites as well as museums are now allowed to operate at 20% of the venue’s capacity. 

However, guided tours in historical sites and museums shall remain prohibited, he added. 

With the reopening of the fitness industry, about 22,000 displaced workers in the fitness industry would be able to regain their jobs, Trade Chief Ramon M. Lopez said at a televised news briefing. 

Mr. Lopez said about 2,000 gyms in the capital region and nearby provinces have yet to secure a safety seal certification, which is issued by the Trade department.  

Authorities are set to announce this week the new quarantine classifications for the second half of the month. — Kyle Aristophere Atienza 

6,600 new COVID cases, 196 more deaths — DoH

PHILIPPINE STAR/ MICHAEL VARCAS

The Department of Health reported 6,686 new coronavirus infections nationwide on Friday, bringing the total number of cases since the COVID-19 pandemic started last year to 1,300,349. 

The death toll rose by 196 to 22,507, while recoveries increased by 3,190 to 1,216,497, it said in a bulletin. 

There were 61,345 active cases, 91.6% of which were mild, 4.3% did not show symptoms, 1.15% were moderate, 1.7% were severe, and 1.2% were critical. 

The agency said 24 duplicates had been removed from the tally. Of these, 20 recovered.  

It said that 127 cases previously tagged as recoveries were reclassified as deaths. About 1,000 cases previously classified as recoveries were re-tagged as active cases, it added. 

Three labs failed to submit data.  

About 13.9 million Filipinos have been tested for the coronavirus as of June 9, according to the health department’s tracker website. 

Meanwhile, a group of researchers said the number of coronavirus infections in Metro Manila went down by 17% from June 4 to 10. 

Infections in the capital region decreased to 926 daily in the last seven days from the 1,116 recorded from the previous week, OCTA said in its latest report. 

OCTA said the reproduction number in the region over the same week was 0.72, while the average daily attack rate was at 6.7, suggesting that the risk level in the key economic hub is “moderate.” The reproduction rate or R0 is a measure of a virus’ transmission, or the number of new infections generated by each case. 

OCTA said the positivity rate in the region decreased to 8%, while the hospital care use rate went down to 36%. The occupancy rate for intensive care unit beds was at 49%. 

The government had placed Metro Manila and nearby provinces under strict lockdowns from March to mid-May due to a surge in coronavirus infections. The restrictions have since been eased. 

Philippine authorities earlier said the southern and central parts of the Philippines were experiencing a surge in coronavirus infections. 

OCTA said the rise in infections in Mindanao slowed down in the last seven days.  

It said Davao City had a slight decrease in cases. It added that the Mindanao metropolis’ hospital bed occupancy was below 60%, a safe level. 

OCTA said the trends in Cagayan de Oro and Zamboanga City continued to move downward, “but Cagayan de Oro continued to have high hospital occupancy rates.” 

Bacolod, Cagayan de Oro, Iloilo City, Dumaguete, Butuan, Tuguegarao, Cotabato City, and Tacloban are still “areas of concern,” it said. — Kyle Aristophere Atienza 

Philippines now polio-free, says WHO

https://www.who.int

The World Health Organization (WHO) on Friday announced the end of the polio outbreak in the Philippines, almost two years after the debilitating disease reemerged in the Southeast Asian country. 

“We are formally celebrating the end of the polio outbreak that has affected the Philippines for more than 600 days,” WHO representative to Manila Rabindra Abeyasinghe said at a televised news briefing organized by the Department of Health. 

The end of the polio outbreak proves that collective efforts can strengthen public health amid the coronavirus pandemic, he said. 

Mr. Abeyasinghe said this latest milestone in public health proves that vaccines work. 

In an e-mailed statement, Mr. Abeyasighe said the decision to proclaim the country polio-free came “as the virus has not been detected in a child or in the environment” in the past 16 months. This a result of comprehensive outbreak response actions including intensified immunization and surveillance activities in affected areas, he added. 

Children under the age of five are most vulnerable to polio, a highly infectious and sometimes fatal disease that can be avoided with a vaccine, according to the WHO.  

Philippine health authorities announced a polio outbreak in September 2019, after almost two decades of being polio-free. 

The WHO said the disease remains endemic in Afghanistan and Pakistan. 

“The success of the polio immunization in the Philippines is proof that when we come together for children, great things happen,” UNICEF representative to the Philippines Oyunsaikhan Dendevnorov said in an e-mailed statement. 

Mr. Dendevnorov urged the Philippine government to “keep the momentum and accelerate routine immunization and safeguard essential child health services” while rolling out coronavirus vaccines for priority sectors. — Kyle Aristophere Atienza 

SC revising rules on issuance of arrest and search warrants

PHILSTAR

Supreme Court (SC) Chief Justice Alexander G. Gesmundo said the court is currently working on revising the rules on criminal procedures to address problems revolving around the issuance of arrest and search warrants.  

“Justice (Marvic Mario Victor F.) Leonen submitted to the Court en banc a working draft of the revisions intended to specifically address the issue on the issuance of arrest and search warrants,” Mr. Gesmundo said in a press conference on Friday.  

The Rules on Criminal Procedure covers the service of search and arrest warrants, specifically under Rules 113 and 126.  

In relation to this, Mr. Gesmundo said the Court is set to discuss the use of body-worn cameras when it resumes sessions on June 15.  

“The proposed rule is to be taken up as soon as we resume session on June 15, and our colleagues have submitted their respective inputs. I am optimistic that after two or three deliberations, we will come up with the final version,” he stated.  

He added that the Court may have a final version of the rules on body cameras by July this year, and once they do, they will immediately approve it for implementation.  

Multiple human rights groups have urged the high court to look into the rules on the issuance and service of search and arrest warrants after nine activists were killed and 15 others arrested on March 7 in the Southern Tagalog area. This was a result of the serving of 24 search warrants issued by Manila and Quezon City courts— Bianca Angelica D. Añag 

Mail-in voting not a viable option for 2022 polls, says Comelec

PHILSTAR

The Commission on Elections (Comelec) on Friday ruled out the possibility of implementing mail-in voting for the upcoming polls.  

Online voting will not be a viable option for the 2022 polls and will only happen “in the future elections,” Philip Luis Marin, a member of the Comelec Office for Overseas Voting, said at a virtual briefing on Friday. 

The poll body earlier asked the Congress to file a bill that would institutionalize mail-in voting as an alternative way of voting amid the pandemic. Seniors and people with disabilities should be allowed to vote by mail, it said.  

A progressive bloc in the House of Representatives last year filed a measure seeking to create a manual-automation election system in the country to avoid transparency issues. 

Meanwhile, Mr. Martin said about 1.6 million Filipinos abroad have yet to register for the 2022 elections. 

He said the poll body is expecting more than 580,000 overseas voters to participate in next year’s polls.  

The Comelec official said only 31.30% of the 1.37 million Filipinos abroad participated in the 2016 elections, while 18.46% of the 1.82 million registered overseas voters voted in the 2019 midterm elections. 

Mr. Marin said Filipinos at least 18 years old who are abroad or who will be abroad during the 30-day overseas voting period from April 10 to May 9, 2022 may register to participate in the elections. — Kyle Aristophere Atienza