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Inflation eases to 4.5% in March

PHILIPPINE STAR/ MICHAEL VARCAS
Headline inflation stood at 4.5% in March, government data showed. — PHILIPPINE STAR/ MICHAEL VARCAS

By Ana Olivia A. Tirona, Researcher

INFLATION eased in March after five straight months of acceleration, as food prices increased at a slower pace, the government’s statistical agency reported on Tuesday.

Preliminary data from the Philippine Statistics Authority (PSA) showed headline inflation at 4.5% in March, slowing from the year-on-year rate of 4.7% in February. However, this was still above the 2.5% recorded in March last year.

The latest headline figure is lower than the 4.8% median in a BusinessWorld poll conducted late last week and falls within the 4.2%-5% estimate given by the Bangko Sentral ng Pilipinas (BSP) for March.

Headline inflation rates in the Philippines (March 2021)

Year-to-date inflation settled at 4.5%, beyond the BSP’s 2-4% target this year and above the forecast of 4.2% for the entire year.

Core inflation, which discounted volatile prices of food and energy items, stood at 3.5%. This was unchanged from the rate recorded in the previous month but faster than the 3% in the same month last year.

The PSA attributed the easing in March to the slower increase in prices of heavily weighted food and non-alcoholic beverages at 5.8% from 6.7% in February. Food and non-alcoholic beverages account for 38.3% of the theoretical basket of goods that an average Filipino household consumes.

Inflation on food items stood at 6.2% in March, slower than 7% in February, but still higher compared with the 2.6% posted in March last year.

The PSA also noted slower annual rates in alcoholic beverages and tobacco (12.1% from 12.2%); furnishing, household equipment and routine maintenance of the house (1.9% from 2.4%); communication (0.2% from 0.3%); and restaurant and miscellaneous goods and services (3.1% from 3.2%).

Meanwhile, the inflation rate for the bottom 30% of income households, stood at 5.5% in March, steady from the rate recorded in the previous month, but still faster than the 2.4% in March 2020.

“The overall latest outturn is consistent with expectations that inflation could settle above the high end of the target in 2021, reflecting the impact of supply-side constraints on domestic prices of key food commodities, such as meat, as well as the continuing rise in world oil prices,” BSP Governor Benjamin E. Diokno said in Viber message to reporters.

“Nevertheless, inflation is still seen to return to within the target band in 2022 as supply-side influences subside,” he added.

In a separate statement, the National Economic and Development Authority said the lower inflation rate in March “is a good indicator of price stabilization” and expects succeeding inflation rates to “align with targets soon as a result of proactive interventions.”

How much did each commodity group contribute to March inflation?

RATES SEEN ON HOLD
BSP’s Mr. Diokno said the prevailing monetary policy settings “remain appropriate” to support the government’s efforts to put the economy back on track.

“At the same time, the Monetary Board emphasizes that the timely implementation of non-monetary interventions is crucial in mitigating the impact of supply-side pressures on inflation and thereby preventing them from spilling over as second-round effects,” he said, adding that the central bank is “prepared to take immediate measures as appropriate.” 

The BSP’s Monetary Board kept the benchmark overnight reverse repurchase rate at an all-time low of 2% for a third consecutive meeting on March 25 as it continues to provide support to the economy amid emerging risks from the fresh surge in COVID-19 (coronavirus disease 2019) cases. Rates for the overnight lending and deposit facilities were likewise maintained at 2.5% and 1.5%, respectively.

Economists see the central bank to keep rates on hold in the next monetary policy meeting to be held on May 13.

“[W]e expect BSP to keep policy rates at 2% in order to bolster the economic recovery with several regions now under strict lockdown due to a recent spike in new COVID-19 infections,” ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa said in a statement to reporters.

“BSP will only consider recalibrating monetary policy should second-round effects such as wage hikes become apparent or if inflation expectations become disanchored,” he added.

In a separate statement, ANZ Research economists Rini Sen and Sanjay Mathur said a long pause in rates is “warranted” at this point as they believe the BSP will continue to monitor inflation figures despite prolonged elevated prices in food items due to extended lockdowns.

Metro Manila and the provinces of Bulacan, Cavite, Laguna, and Rizal will remain under “extended community quarantine” until April 11.

Security Bank Corp. Chief Economist Robert Dan J. Roces shared the same assessment: “[A]s much as the elevated inflation path could make the BSP uneasy, we believe the central bank will prioritize supporting the economic recovery and therefore rate hikes at this point will be counter-productive,” he said in a Viber message to BusinessWorld.

For Pantheon Macroeconomics Senior Asia Economist Miguel Chanco: “[T]he BSP is likely to continue to stand pat, given the renewed and intense COVID-19 headwinds domestically.”

“An outright double-dip in quarter-on-quarter gross domestic product still is on the cards, with the recent extension of anti-virus measures in line with our below-consensus expectations,” he said.

The Department of Health reported 9,373 new COVID-19 cases on Tuesday, bringing the total number of cases to 812,760 and active cases to 152,562. — with inputs from Beatrice M. Laforga and Luz Wendy T. Noble

Economic managers now see slower GDP growth this year

The strict lockdown and surge in coronavirus cases are expected to hurt Philippine economic growth this year. — PHILIPPINE STAR/ MICHAEL VARCAS

THE Philippine economy is expected to grow below the government’s target this year, according to economic managers, as the capital region and nearby provinces were placed under the strictest form of lockdown to curb the spike in coronavirus disease 2019 (COVID-19) cases.

“I think it (economic growth) is going to be lower than what we expected,” Finance Secretary Carlos G. Dominguez III said in an interview with Bloomberg TV on Tuesday.

Budget Secretary Wendel E. Avisado said in a Viber message that the Development Budget Coordination Committee (DBCC) has yet to schedule its meeting in revisiting growth targets.

The DBCC has set a 6.5-7.5% growth target for this year and projected 8-10% growth in 2022. The economy contracted by a record 9.5% in 2020 as the Philippines implemented one of the world’s longest and strictest lockdowns.

The National Economic and Development Authority (NEDA) earlier estimated the two-week enhanced community quarantine (ECQ) in Metro Manila, Bulacan, Cavite, Laguna and Rizal may shave 0.8 percentage point off the gross domestic product (GDP) this year.

Shutting down the country’s main economic hub would translate to income loss of nearly P30 billion for the two-week period ending April 11, the NEDA said.

The shutdown resulted in 252,000 more Filipinos losing their jobs, while 102,000 more slipped into poverty.

“Enhanced community quarantine alone does not reduce cases. It simply buys time. Thus, we need to further intensify testing, tracing, quarantine, isolation, treatment, and vaccination,” Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said in a statement on Monday evening.

The Health department reported 9,373 new cases on Tuesday, bringing the number of active cases to 152,562.

Mr. Chua said extending the ECQ by one week would have helped prevent 215,320 additional COVID-19 cases, including 6,469 severe infections.

“We can also prevent 4,026 COVID-19 deaths,” he added.

The NEDA chief projected over 323,000 COVID-19 infections and 6,000 deaths will be prevented, if the country’s health systems will be strengthened while testing and isolation efforts are intensified during the strict lockdown. 

Meanwhile, Mr. Chua said the government should boost and improve the health systems capacity; adopt better communication strategy; hasten vaccine rollout, especially to vulnerable sectors; and help all sectors prepare to shift to the “new normal.”

“Enforcing minimum health protocols and monitoring compliance, building more isolation facilities, accelerating vaccine deployment to the vulnerable sectors, and implementing the additional social amelioration program are all needed,” Mr. Chua added.

Multilateral institutions and other international organizations have slashed their growth forecasts for the Philippines already due to rising coronavirus cases.

The World Bank slashed its Philippine growth outlook to 5.5% for 2021 from 5.9% previously, while ASEAN+3 Macroeconomic Research Office (AMRO) cut its forecast to 6.9% from 7.4%. The United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) lowered its growth estimate for the Philippines to 6.5% from 7% previously. — Beatrice M. Laforga

PHL faces ‘substantial’ uncertainty over virus surge, lockdown — IMF

By Luz Wendy T. Noble, Reporter

THE International Monetary Fund (IMF) sees the Philippine economy bouncing back slightly faster than previously expected this year, but noted it is “critical” to contain the surge in coronavirus disease 2019 (COVID-19).

In its World Economic Outlook titled “Managing Divergent Recoveries” published on Tuesday, IMF said it expects the country to grow by 6.9% this year, faster than the 6.6% estimate it gave in January. This outlook is well-within the 6.5% to 7.5% target set by the government.

The IMF also maintained its Philippine growth forecast for next year at 6.5%.

Real GDP growth of select Asian and Pacific Economies

The ASEAN-5 region is expected to grow slightly slower at 4.9%, from a previous estimate of 5.2%, this year. Among the five countries, the Philippines has the fastest growth projection, followed by Vietnam and Malaysia (both at 6.5%), Indonesia (4.3%), and Thailand (2.6%).

“This partly reflects the fact that the Philippine economy contracted more last year compared to its peers and hence the rebound this year is expected to be stronger, other things being equal,” IMF Representative to the Philippines Yongzheng Yang said in an e-mail.

The country’s gross domestic product (GDP) shrank by a record 9.5% in 2020.

While the IMF upgraded its growth forecast for the Philippines this year, Mr. Yang cautioned that tighter quarantine measures and the recent spike in COVID-19  infections are significant risks to this outlook.

“Needless to say, these growth forecasts are subject to substantial uncertainty. In particular, recent hikes in virus infections pose a significant downside risk, as tightening quarantine measures could dampen economic activity,” he said.

Mr. Yang added a slower-than-expected pace of vaccination, continued geopolitical and trade tensions, and potential volatility in the global financial market could also potentially contribute to a dimmer economic outlook in the country.

“At this juncture, it is critical to strengthen virus containment measures to bring infections under control and to maintain macroeconomic support to reduce scarring effects of the pandemic,” Mr. Yang said.

The Health department reported 9,373 new COVID-19 cases on and 382 deaths on Tuesday. Active cases stood at 152,562.

Metro Manila, Cavite, Laguna, Bulacan, and Rizal are under the strictest lockdown until April 11 to curb the virus spread. Analysts and health experts have warned tighter restriction measures alone will only lead to further losses in the economy if not paired with heightened testing, tracing, and treatment of COVID-19 infections.

Mr. Yang said the IMF’s latest forecast for the Philippines considered the stronger-than-expected growth in the fourth quarter last year which could boost recovery prospects for the country.  Fourth-quarter GDP grew by 5.6% compared with the July to September period.

The IMF also anticipates heightened fiscal stimulus from the 2021 national budget, carry-over funds from the 2020 appropriations, as well as unused allocations from Republic Act No. 11494 or the Bayanihan to Recover as One Act.

With the pandemic’s end still unclear, Mr. Yang said vital assistance and reform measures will be beneficial for both households and businesses.

“Targeted support to vulnerable households should continue while strengthening social protection programs over time. Continued structural reforms to reduce restrictions on inbound foreign investment and efforts to ease the burden of doing business and resource reallocation would also help recovery,” he said.

Meanwhile, the IMF upwardly revised its growth forecast for the global economy to 6% from 5.5% in January, citing upside risks from additional fiscal support in some large economies and a “vaccine-powered” recovery by the second half of 2021. It likewise raised its outlook in 2022 to 4.4% from 4.2%

Despite the rosier outlook, the multilateral lender stressed how economies are seeing divergent paths of recovery and the potential for persistent economic damage from the crisis. These varying recovery tracks will likely lead to “significantly wider gaps in living standards” compared with the pre-pandemic situation.

“Emerging market economies and low-income developing countries have been hit harder and are expected to suffer more significant medium-term losses,” the report said.

BIR maintains April 15 deadline for ITR filing

BW FILE PHOTO

THE Bureau of Internal Revenue (BIR) on Tuesday said it will not extend the April 15 deadline for filing and payment of annual income tax returns (ITR).

BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular No. 46-2021 on Tuesday which emphasized the deadline for ITR filing and payment remains on April 15, following a number of queries from taxpayers and tax practitioners about earlier reports of a possible deadline extension.

As a relief for taxpayers, Mr. Dulay said the BIR will allow the filing of a tentative ITR before the deadline and give them until May 15 to amend the returns without penalties.

If overpayment of taxes will be made on the revised ITRs, taxpayers can either file for a refund, or choose to carry over the overpaid tax as a credit against the tax due for the same tax type in the following period.

He added taxpayers or assigned officers can also use their electronic signatures in filing returns, attachments and other documents needed, which will be considered as actual signatures.

The BIR also allowed taxpayers to file their returns and make payments anywhere, or even outside the area covered by Revenue District Offices where they are registered, without incurring penalties.

Tax practitioners were seeking a deadline extension, amid the ongoing lockdown restrictions and the short period to adjust to the changes brought by Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which will cut corporate income tax and streamline tax incentives.

The law was only signed on March 26 while its implementing rules and regulations are not yet out.

The BIR is aiming to collect P231.57 billion in April, mainly from income tax payments. — Beatrice M. Laforga

PHL plans US dollar bonds ‘before rates skyrocket’

Dollar banknotes are seen in front of a graph in this illustration taken Feb. 8. — REUTERS/DADO RUVIC/ILLUSTRATION/FILE PHOTO

FINANCE Secretary Carlos G. Dominguez III said the government plans to sell dollar bonds before interest rates rise, and will look for new revenue sources and ways to wind down debt next year.

“We will tap the US bond market before rates skyrocket,” Mr. Dominguez said in an interview with Bloomberg Television’s Kathleen Hays on Tuesday. He didn’t provide more details on the debt plan. 

The Philippines plans to borrow a record P3 trillion ($62 billion) from domestic and international sources this year, according to budget data presented to Congress in August. Last week, it raised 55 billion yen ($500 million) through a 3-year Samurai bond sale.

Economic growth this year “is going to be lower than what we expected” as virus cases surge, Mr. Dominguez said.

The Philippines extended a lockdown in Manila and nearby provinces until April 11 to control a rise in infections, and the two-week strict movement curbs will likely shave off 0.8 percentage point from this year’s growth, Economic Planning Secretary Karl Kendrick T. Chua said on Monday. Last year’s lockdown — among the world’s longest — pushed gross domestic product (GDP) to plunge 9.5%, the worst since at least 1946.

President Rodrigo R. Duterte, as part of a plan to drive GDP growth to as high as 7.5%, set a record spending goal this year of P4.5 trillion.

The government doesn’t intend to increase its borrowing from the Bangko Sentral ng Pilipinas, Mr. Dominguez said, and aims to wind down its loans from the central bank later this year or early next.

While the government isn’t planning to introduce new tax measures at this time, Mr. Dominguez said the finance department is looking at ways of “winding down” debt, including other possible revenue sources.

The government aims to cap the budget deficit at 8.9% of GDP this year before lowering the gap to 7.3%.

“I’d like to hear of solutions to the world debt problem,” Mr. Dominguez said of discussions at the International Monetary Fund and World Bank spring meetings this week. “This is a problem of ours as well as problems of many countries.” — Bloomberg

PSE expects changes in rules to bring IPO boom

THE Philippine Stock Exchange (PSE) is expecting more companies to raise capital through an initial public offering (IPO) after it amended listing rules and added a temporary relief clause when considering applicants due to the pandemic.

PSE President and CEO Ramon S. Monzon said the Philippine market is running behind as the country has a lower number of companies listing on the stock exchange.

“To address this issue, we relaxed certain requirements for listing in both the Main and SME boards and we introduced a measure that will gauge a company’s suitability for listing despite the challenges it is facing due to the pandemic,” Mr. Monzon said in a statement on Tuesday.

Mr. Monzon went on to thank the Securities and Exchange Commission for acknowledging recommendations to amend the market’s listing rules.

“With this, we hope to attract more companies to dip their foot in the water and consider the stock market as their preferred avenue for capital raising,” Mr. Monzon added.

This month, the PSE will be holding a two-part round table discussion called “The Road to IPO” to discuss the amendments.

“On April 7, top PSE executives and its listings team will take the lead in the information session to discuss the amended listing rules together with officers of investment houses, sponsors for listing applicants in the Small, Medium, Emerging (SME) board, and other key members of IPO deal teams,” the exchange said.

Guidelines for companies that would opt to list through a sponsor are now included in the amended rules for listing.

“This listing format will be beneficial to SMEs and start up companies that have very good profitability and expansion potential but could not tap the stock market for funding because they do not qualify to list based on the set criteria,” Mr. Monzon said.

Sponsoring companies are required to do their due diligence to determine the suitability of the applicant for listing “after assessment of its financial condition, business viability, future prospects and management track record among others” before giving endorsing them to the PSE.

The second part of the round table discussion is set for April 27, where officials of listed companies will discuss their successful IPO stories for the benefit of interested listing applicants.

The PSE president noted that “going public is a once in a lifetime event for many companies.”

“It is important for business owners to know firsthand what it takes to go public from those who have been through the IPO route,” Mr. Monzon explained.

Companies interested in joining the discussions are called on to contact the PSE’s Marketing Services Department via marketingservices@pse.com.ph. — Keren Concepcion G. Valmonte

Jollibee wants European stores to reach 50 within five years

RESTAURANT operator Jollibee Foods Corp. (JFC) plans to expand in Europe “by growing to 50 stores” in the next five years, after seeing a positive debut in Rome, Liverpool, and Leicester City in the previous year despite the pandemic.

“The Jollibee Group is dedicated to growing the Jollibee brand in the UK and across Europe. Investing £50 million demonstrates our commitment to become a major player in the European quick-service industry,” Dennis M. Flores, Jollibee group’s regional business head for Europe, Middle East, Asia, and Australia, said in a statement on Tuesday.

Its European flagship store will be launched in London’s Leicester Square this year. Seven more branches are set to open, including its first stores in Edinburgh’s Scotland and in Wales in Cardiff.

Jollibee will also open its first store in Spain, which will be located in Madrid.

In its newest stores in the United Kingdom, the company said 70% of its customers are locals.

The company has since launched new food offerings, which include: Asian Slaw, Tropical Burger, Mango Coconut Sundae, and Asian Chicken Tender Rice Bowl.

“The pandemic may have been a setback, but it will not deter us from pursuing our vision for Jollibee in the UK and the rest of Europe,” Mr. Flores said.

Jollibee is hoping to attract more customers by its new store design, which highlights Filipino heritage “while adapting to the European market.”

JFC Chief Real Estate Officer William Tan Untiong said it was important for the company to highlight the “upbeat” part of its restaurant branding, as “Jollibee is a place of joy across the world.”

“It is lighthearted, fun, and built on the idea of community spirit,” Mr. Tan Untiong said.

The company said: “Jollibee’s new stores in Europe have been designed to adapt to changes brought about by the pandemic by including contactless kiosks for speed and safety, and pick-up settings to make take-outs even more convenient.”

Jollibee UK will also be launching an app, which will allow customers to place advanced orders, as well as cater to delivery and take out orders.

“We are investing in technologies such as a mobile app for click and collect along with in-store contactless kiosk options to bring additional convenience to our customers,” Jollibee Group Market Head for Europe Adam Parkinson said.

Jollibee noted that the brand has sold over five million pieces of Chickenjoy across Europe since it was first served in the region.

JFC shares at the stock market improved by 1.87% or P3.40 on Tuesday to close at P185 apiece. — Keren Concepcion G. Valmonte

A sense of place

THE PLACES we live in leave an indelible mark on us. Sometimes it is a literal mark, like a scar earned at a childhood playground; sometimes psychological, like the anxiety that permeates us in the big city, or the sense of freedom that fills us when we leave the confines of the familiar and explore the world. These places affect how we speak, how we eat, how we love, how we see the world. They also affect how we make art.

Take, for example, late Santiago “Santi” Bose (1949-2002), who is the subject of a three-part exhibit series at Silverlens Gallery, the second installment of which, called “Striking Affinities,” is currently on view.

The current exhibit features works that reflect the mixed-media artist’s reactions to his life in Baguio. It also reflects his travels to Manila, New York, Adelaide, Bali, and the Spratly Islands. The exhibit showcases over 30 works from the early 1980s to 2002.

“These places are homelands, contact zones, passage ways, hot spots, exhibition sites — shaping the work of Bose in the same way that the artist in a reciprocal gesture shaped them,” wrote the exhibition’s curator Patrick D. Flores in his curatorial notes.

“[Mr.] Bose responded to the place he was in or passed through, the ecology that the place offered, including the people and the community. From that ecology he shaped expressive form in dynamic interaction with the context.” Mr. Flores said in an e-mail to BusinessWorld.

“[He] was sensitive to the material culture of the place and took risks in trying on forms unique or prominent in the place. He was keen to track traces of his own history and the history of the place,” Mr. Flores wrote on how the artist’s medium of choice affected his current location or places visited.

While for many people Baguio is a literally cool place to visit for a summer vacation, for Mr. Bose, this mountain city with its amalgamation of influences — the indigenous cultures of the mountain tribes, the pop-culture that permeates it thanks to its long-time role as an R&R base for American soldiers, its Japanese and Indian bazaars, its Chinese temples, the lowland Catholic religious traditions — was home. Baguio is a microcosm of the Philippines, an intense distillation of everything that makes this country, and Mr. Bose’s art presents the traditional cultures found in this country of varied foreign influences.

It therefore makes sense that upon entering the online exhibition, the page opens to a banner artwork from 1990 titled July 16 Earthquake, referring to the 7.8 magnitude Luzon earthquake that devastated Baguio City in 1990. It is a work which, like the rest of the collection, Mr. Flores noted, “may elicit multiple meanings.”

“We could see references to it around the borders of the work and some telltale depictions of the details of the catastrophe,” Mr. Flores wrote.

“There’s a looming landscape in the background, ominous but may also be expectant. Then, there’s the enigmatic figure at the center, who may be a specter or a shaman, the village idiot or the town sage, holding an orb or an image of the world,” he added.

After studying at the College of Fine Arts at the University of the Philippines from 1967 to 1972, Mr. Bose pursued further studies at the West 17th Print Workshop in New York.  He then came home, where he founded the Baguio Arts Guild in 1987, and was involved in the creation of the Baguio International Arts Festival.

‘STRIKING AFFINITIES’
Mr. Flores explained in his curatorial notes that the term “‘striking affinities’ flips the phrase ‘striking distance’ to suggest how the artist’s travels were spent in search “for collaboration, solidarity, and discursive and political possibilities.” The word “strike” pertains to “the urgency of a situation” and the artist’s attempt “to make things happen in transitional space.”

In the exhibition, Mr. Bose’s work depicts many facets of the culture and lifestyle of the places he was at, such as indigenous traditions and faith healing merging with the modernization of Baguio; the city life of New York as seen through graffiti and an image of a standing figure in a subway train; a volcano, Buddha images, traditional roof shapes and lizards in his Bali pieces. Also included in the exhibit are documents and videos of proposals for Project Freedom Island and Pirate Radio in the Spratlys Islands, and floor plans and sketches of installations for his exhibit at the Adelaide Festival 1994 in Australia.

“Unique was his translation of the material and how he integrated his own place and history into the new material, which used to be foreign but became inevitably intimate because of his re-articulation. It’s a vulnerable and generous gesture,” Mr. Flores said.

The third installment of the exhibition series, which is yet to be scheduled, will focus on Mr. Bose “as a person and his subjectivity as an artist-citizen,” said Mr. Flores.

“Striking Affinities” is on view until April 17. To view the exhibition, visit https://www.silverlensgalleries.com/exhibitions/2021-03-20/striking-affinities. —  Michelle Anne P. Soliman

Cebu Pacific replacing older aircraft despite crisis

BUDGET carrier Cebu Pacific, operated by Cebu Air, Inc. (CEB), received on April 2 its eighth A321NEO aircraft out of 47 narrow-body orders from European planemaker Airbus, a company official said.

“Pre-pandemic, we have already started embarking on our long-term vision and fleet strategy, which includes an orderly exit of older aircraft. We envision the total CEB fleet to be composed of new-generation aircraft in the next few years,” Mark V. Cezar, Cebu Pacific deputy chief finance officer, said in an e-mailed news release on Tuesday.

The budget airline is expecting to receive seven more aircraft this year, a mix of Airbus and ATR (Avions de Transport Regional) fleet.

The newest aircraft “is set to enter service on April 9, 2021, to serve various domestic routes,” the company said.

“To date, the Cebu Pacific 74-strong fleet is comprised of eight A321NEO, 25 Airbus A320, seven Airbus A321CEO, five Airbus A320NEO, seven Airbus A330, six ATR 72-500, and 13 ATR 72-600 aircraft,” the low-cost carrier said.

It also has two ATR freighters on top of one A330 freighter.

Cebu Air recently announced a net loss of P22.2 billion for 2020, mainly due to the coronavirus crisis.

Its total revenues for 2020 dropped 73% to P22.6 billion. Cargo business contributed P5.4 billion or 24% of the total.

Passengers carried last year dropped 78% to five million. The number of flights was 71% lower at 41,804.

Cebu Air shares closed 1.40% lower at P45.70 apiece on Tuesday. — Arjay L. Balinbin

Auction benefits two organizations focusing on kids

I Dream of Dali by Marivic Rufino

ON APRIL 9, 10, and 11, Leon Gallery, via its online portal Leon Exchange XIX, will place on the auction block paintings by contemporary artworks that will benefit two worthwhile Organizations: Abot Tala and Museo Pambata.

The featured pieces include works by Manuel Ocampo, Don Salubayba, Jaime Zobel, Leeroy New, and Marivic Rufino. Part of the proceeds of these pieces will go to the two organizations.

Abot Tala is a modern co-learning hub that serves teens ages 12 to 18 who may feel that regular school is not a good fit for them. Families who come to Abot Tala have found that their teenager is in a community where they belong, thrive, find avenues of expression, and learning fit for their unique selves.

Among the auction artworks that will benefit Abot Tala are Norman Dreo’s Sa Likod ng Obra, a 2011 oil on canvas painting; Tessa Alindogan’s 2001 acrylic on canvas work Untitled (Abstract); Manuel Ocampo’s 2013 Untitled oil on canvas; and Marivic Rufino’s mixed media on canvas board piece, I Dream of Dali. Other works that will go under the hammer for the benefit of Abot Tala are by Katrina Pallon, Frederick Agustin, Mejalosa, Manuel Yarte, Anthony Nañola, Leonardo Cruz, and Menchu Arandilla.

Meanwhile, Museo Pambata transforms traditional learning into educational experiences. Established in 1994, the Museo Pambata was created as a response to the increasing demand for enriching experiences for children, especially those residing in cramped urban centers.

Among the works that will raise funds for the museum are a signed digital print by Jaime Zobel, Archie Oclos’s 2018 acrylic on wood work Tropang Trumpo; Agnes Arellano’s cold cast marble statue Nagpapasusong Ina; and Don Salubayba’s oil on canvas work Mag-Ate. Other works that will be auctioned for the benefit of Museo Pambata are by Aldy Aguirre, Nina Lim-Yuson, Jan Leeroy New, and Katrina Cuenca.

The collection benefiting these two institutions are included in the 19th edition of Leon Gallery’s online auction called Leon Exchange XIX on April 9, 10 and 11 starting at 11 a.m. For more information, call 8856-2781 or e-mail info@leon-gallery.com. To register and to bid, visit www.leonexchange.com.

Guide to the Classics: Voltaire’s Candide — a darkly satirical tale of human folly in times of crisis

“Italy had its renaissance, Germany its reformation, France had Voltaire,” the historian Will Durant once commented.

Born François-Marie Arouet, Voltaire (1694-1778) was known in his lifetime as the “patriarch” of the French enlightenment. A man of extraordinary energy and abilities, he produced some 100 volumes of poetry, fiction, theater, biblical and literary criticism, history and philosophy.

Among his myriad works, Voltaire’s Candide, or Optimism (1759) is widely recognized as the masterpiece. A darkly satirical novella taking aim at human folly, pride, and excessive faith in reason’s ability to plumb the deepest metaphysical truths, it remains as telling in this era of pandemics and wild conspiracy theories as when first published.

In his earlier works Voltaire had propounded an almost naive optimism, but the decade from 1749-1759 was not easy for the philosopher-author.

Personally, his great love, Émilie du Châtelet had died in 1749. Politically, he had been forced from exile to exile for his criticism of monastic and clerical privileges in France and his “Essay on Universal History, the Manners, and Spirit of Nations” (1756), which treated Christianity as just one world religion, rather than the final revealed truth.

In 1755, meanwhile, on Nov. 1, a huge earthquake had struck the Portugese capital, Lisbon, followed by a tsunami. Within minutes, tens of thousands were dead.

The recriminations soon began. Protestants saw in Lisbon’s destruction divine judgement on Catholicism. Catholics proposed, with equal implausibility, the especial sinfulness of the Lisbonites as the disaster’s cause. Pyres were erected in the streets to burn heretics, as scapegoats for the disaster.

This combination of senseless death and even more senseless human responses outraged Voltaire. His first response was the impassioned “Poem on the Lisbon Disaster” of 1755:

As the dying voices call out, will you dare respond

To this appalling spectacle of smoking ashes with,

[…] ‘God is avenged. Their death is the price of their crimes’?

Then, several years later, came Candide.

As his name suggests, Voltaire’s hero, Candide, is a simple lad. Raised in a magnificent castle in Westphalia, in North-Western Germany, he is moved by just two passions. The first is abiding love for his sweetheart, Cunégonde.

The second is admiration for his teacher, Pangloss (“all tongue”), an exalted Professor of “métaphysico-théologo-cosmolonigologie” possessed of the happy ability to explain everything that happens, despite appearances, as “for the best.”

“It is demonstrable,” said he, “that things cannot be otherwise than as they are; for […] all is necessarily for the best end. Observe, that the nose has been formed to bear spectacles — thus we have spectacles. Legs are visibly designed for stockings — and we have stockings […] Pigs were made to be eaten — therefore we eat pork all the year round. Consequently, they who assert that all is well have said a foolish thing, they should have said: all is for the best.”

In Pangloss, Voltaire is satirizing German philosopher Gottfried Wilhelm Leibniz and the British poet, Alexander Pope.

These two men had defended what the former called “theodicy”: the idea that a perfect God could only have created the best possible world. Hence, the human perception that events like pandemics, earthquakes, massacres, and tsunamis are bad must be mistaken.

Candide’s fate is set up by Voltaire as a reductio ad absurdum (reduction to absurdity) of this optimistic theory. Our hero is first expelled from his Edenic childhood garden, when Cunégonde’s father comes upon she and Candide illicitly experimenting in what Voltaire delicately calls “natural philosophy.”

In Candide’s ensuing wanderings around Europe and the Americas, Voltaire treats his hero to a veritable guided tour of all of the evils of war, lust, avarice, vanity, and colonialism.

Fleeing war, rapine, and zealotry in Bulgaria and Holland, Candide arrives in Lisbon just in time for the earthquake. He is selected for execution by fire as a heretic, before escaping to save Cunégonde from disputing, lustful representatives of the West’s two great biblical faiths, Judaism and Christianity.

The lovers flee together to the Americas. In Buenos Aires, however, the Spanish governor seizes Cunégonde for his wife. Candide and his servant, Cacambo, are forced to flee through yet more bloody misadventures in the new world.

In a rightly famous passage, which finally sees Candide recant of his teacher Pangloss’ theodicy as the “abomination […] of maintaining that everything is right when it is wrong,” they come upon a crippled African slave whose masters are Dutch merchants in Surinam:

“Yes, sir,” said the negro, “it is the custom. […] When we work at the sugar-canes, and the mill snatches hold of a finger, they cut off the hand; and when we attempt to run away, they cut off the leg; both cases have happened to me. This is the price at which you eat sugar in Europe.”

To this Europe, the increasingly disillusioned Candide returns. The riches he acquired in the new world are soon fleeced by cunning social climbers in Paris and Venice. He is reunited with Pangloss, who has recanted nothing of his optimism, despite being enslaved, flogged, hanged, and brutally maimed, explaining that “I am a philosopher and I cannot retract […]”

Soon enough, Candide also hears news that Cunégonde is now a slave in Turkey, after her own litany of unlikely sufferings. So, he hits the road one last time. Reunited at last with his half-broken beloved, they retire to a little farm with their friends near Constantinople.

Here, despite everything, Pangloss still sometimes comes to mindlessly philosophize, as the story famously closes:

“There is a concatenation of events in this best of all possible worlds: for if you had not been kicked out of a magnificent castle for love of Miss Cunégonde: if you had not been put into the Inquisition: if you had not walked over America: […] if you had not lost all your sheep from the fine country of El Dorado: you would not be here eating preserved citrons and pistachio-nuts.”

“All that is very well,” answered Candide, “but let us cultivate our garden.”

In the entry on “wit” (esprit) in his famous Philosophical Dictionary of 1764, Voltaire reflects that it is:

the art either of bringing together two things apparently remote, or of dividing two things which seem to be united, or of opposing them to each other […]

It is the art of Voltaire’s Candide to leave readers unsure whether they should be weeping, screaming, laughing, or all at the same time. Atrocious sufferings are recounted with the innocence of a children’s fairy tale.

Elevated questions of metaphysical philosophy, which for a century had divided the greatest Western minds, are brought crashing down to earth amid the clamors of warring armies, collapsing cities, inhumane barbarism and slavery.

It is easy to see why critics have read Voltaire’s novella as a document written in despair. But the laughter of the book suggests this is only half the story.

Voltaire is enraged at human cruelty and idiocy. He scorns the Panglossian pride, which pretends to justify the unjustifiable with blithe self-assurance and vain sophistries. He despises any theory clever enough to explain away human suffering, but not humane enough to decry it.

But this is because he believes human beings can be better. For Voltaire, we can and should challenge all fair-sounding ideologies reconciling us to indignities visited on others we would not accept for ourselves.

Stateless, Voltaire had ended up in 1758 in a rural retreat in Ferney, near the Swiss-French border. At the tender age of 65, he embarked on a legendary campaign against religious fanaticism — associated with his famous slogan: Écrasez l’infâme! (let us crush the infamous!).

His Treatise of Toleration of 1763, was sparked by anger at the wrongful execution of Protestant Jean Calas by Catholic zealots in Toulouse.

In 1778, the legendary author and advocate for multi-faith society finally returned to Paris, to be hailed as a hero. Fatigued by the journey, Voltaire died soon after, claiming: “I die adoring God, loving my friends, not hating my enemies, and detesting superstition.”

In 1791, the revolutionary government honored Voltaire as an inspiration. His remains were re-interred in the Pantheon.

There is no pandemic in Voltaire’s Candide, and today’s conspiracy theories make Pangloss’ inhumane, hyper-rationalism look balanced.

But there are few other books you could read with greater sympathy in 2021 than this little gem of irony, calamity, and restrained outrage at human folly and prejudice. And none that are more cutting and entertaining.

 

Matthew Sharpe is an Associate Professor in Philosophy at Deakin University.

PLDT to seek permanent solution to ROW issues

PLDT, Inc. said it will continue to work with the government to find a permanent solution to the right-of-way (ROW) issues that prevent telecommunications companies from constructing information and communications technology (ICT) infrastructure projects along national roads.

Department of Public Works and Highways (DPWH) Secretary Mark A. Villar issued Department Order No. 29 on March 23 “to facilitate the erection of infrastructure that will allow speedy expansion of telecommunication services and facilities while ensuring public safety, availability of government’s ROW, and the structural integrity of roads and bridges.”

Mr. Villar’s department order allows telcos “to construct and undertake excavations and/or restoration works for ICT infrastructure projects within the allowable ROW limits of the national roads.”

But the order will automatically cease application “after the lapse of three years from March 23, 2021,” according to PLDT.

“We will be relentless in securing government issuances that will provide a more permanent solution to this ROW issue,” Aileen D. Regio, first vice-president and head of PLDT’s Regulatory and Strategic Affairs, was quoted as saying in an e-mailed news release on Tuesday.

PLDT said Mr. Villar’s order should help speed up the rollout and assist in ensuring the “timely” maintenance of its fiber infrastructure as well as Smart Communications, Inc.’s cell sites.

“This collaboration with the government is part of PLDT and Smart’s initiatives to improve the maintenance and operations of our network facilities and advocate for the improvement of the regulatory environment to boost the country’s digital infrastructure,” Smart Vice-President and Head of Regulatory Affairs Roy D. Ibay said.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin