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Hong Kong leader ‘deeply sorry’ for long queues amid COVID surge

Carrie Lam/Facebook

HONG KONG — Hong Kong’s leader, Carrie Lam, has said she is “deeply sorry and anxious” about the lengthy wait for residents to get tested or enter isolation facilities after a record number of new coronavirus cases left authorities scrambling. 

Hong Kong’s daily coronavirus disease 2019 (COVID-19) infections nearly doubled to a record 1,161 cases on Wednesday as the global financial hub battles a rapid surge that could pose the biggest test yet of its “dynamic zero” policy. 

Writing on her official Facebook page on Wednesday night, Ms. Lam said that the government was working hard to enhance capacity and that the fast-spreading infections, hitting places like elderly care homes, were the last thing she wanted to see. 

“I firmly believe that all people treasure our frontline medical staff, look forward to resuming their normal daily lives, and want to help Hong Kong ride out the pandemic,” she said. 

Hong Kong has reported close to 4,000 infections over the past two weeks, up from just two in December, taking its tally to more than 17,000 since the outbreak began in 2020, with 215 deaths, although the figures are lower than other major cities in the world. 

Authorities have responded with the toughest measures since the start of the pandemic, which are taking an increasing social and economic toll on the city’s 7.5 million residents. 

Hong Kong has stuck to the strategy employed by mainland China to suppress all coronavirus outbreaks as soon as possible to eliminate the virus. 

About 200,000 residents and visitors in Discovery Bay, an area that is home to many expatriates, were ordered to test for COVID-19 after the government said it detected coronavirus in sewage samples. 

Large crowds thronged to testing centers across the city, with some residents complaining that they were more likely to get infected while queuing. 

Typically, thousands of residents are mandated daily to test if they have been to an area where infections are detected. 

Ms. Lam said the city was not able to try to live with the virus, as most of the rest of the world is doing, because more than 50% of the elderly have not been vaccinated. 

About 80% of the city’s residents have had at least one vaccine shot but many elderly people have been hesitant. 

Two elderly patients in their 70s died from coronavirus, authorities said on Wednesday. — Reuters

Ford, Toyota halt some output as US, Canada warn on trucker protests

REUTERS

WINDSOR/OTTAWA/WASHINGTON — Ford and Toyota on Wednesday both said they were halting some production as anti-coronavirus mandate protesters blocked US-Canada border crossings that have prompted warnings from Washington and Ottawa of economic damage. 

Many pandemic-weary Western countries will soon mark two years of restrictions as copycat protests spread to Australia, New Zealand, and France now the highly infectious Omicron variant begins to ease in some places. 

Horn-blaring protests have been causing gridlock in the capital Ottawa since late January and from Monday night, truckers shut inbound Canada traffic at the Ambassador Bridge, a supply route for Detroit’s carmakers and agricultural products. 

A number of carmakers have now been affected by the disruption near Detroit, the historic heart of the US automotive sector, but there were other factors too such as severe weather and a shortage of semiconductor chips. 

Toyota, the top US seller, said it is not expected to produce vehicles at its Ontario sites for the rest of the week, output has been halted at a Ford engine plant and Chrysler-maker Stellantis has also been disrupted. 

Another border crossing, in Alberta province, has been closed in both directions since late on Tuesday. 

More than two-thirds of the C$650 billion ($511 billion) in goods traded annually between Canada and the United States is transported by road. 

Starting as a “Freedom Convoy” occupying downtown Ottawa opposing a vaccinate-or-quarantine mandate for cross-border truckers mirrored by the US government, protesters have also aired grievances about a carbon tax and other legislation. 

“I think it’s important for everyone in Canada and the United States to understand what the impact of this blockage is — potential impact — on workers, on the supply chain, and that is where we’re most focused,” White House spokesperson Jen Psaki said on Wednesday. 

“We’re also looking to track potential disruptions to US agricultural exports from Michigan into Canada.” 

Washington is working with authorities across the border to reroute traffic to the Blue Water Bridge, which links Port Huron in Michigan with Sarnia in Ontario, amid worries protests could turn violent, she told reporters. 

Bank of Canada Governor Tiff Macklem called for a swift resolution. 

“If there were to be prolonged blockages at key entry points into Canada that could start to have a measurable impact on economic activity,” he said. 

“We’ve already got a strained global supply chain. We don’t need this.” 

PROTESTS SPREAD
The protests were disrupting jobs too and “must end before further damage occurs,” Canada’s Emergency Preparedness Minister, Bill Blair, told reporters. 

Ford suspended engine output in Windsor while its Oakville factory near Toronto is operating with a reduced schedule, as it warned the Ambassador Bridge closure “could have widespread impact on all automakers in the US and Canada.” 

Chrysler-maker Stellantis has also faced a shortage of parts at its assembly plant in Windsor, Ontario, where it had to end shifts early on Tuesday, but was able to resume production on Wednesday. 

Protesters say they are peaceful, but some Ottawa residents have said they were attacked and harassed. In Toronto, streets were being blocked. 

“We continue to know that science and public health rules and guidance is the best way to this pandemic is the way we’re going to get to the other side,” said Prime Minister Justin Trudeau. 

The issue has caused a sharp split between the ruling Liberals and the opposition Conservatives, many of whom have expressed open support for the protesters in Ottawa and accuse Mr. Trudeau of using the issue of the mandate for political purposes. 

In the United States, prosecutors in Missouri and Texas will probe crowdfunding service GoFundMe over the decision to take down a page for a campaign in support of the drivers after some Republicans vowed to investigate. 

Downtown Ottawa residents criticized police for their initially permissive attitude toward the blockade, but authorities began trying to take back control Sunday night with the seizure of thousands of liters of fuel and the removal of an oil tanker truck. 

Police have asked for reinforcements — both officers and people with legal expertise in insurance and licensing — suggesting intentions to pursue enforcement through commercial vehicle licenses. 

But as the authorities attempt to quell demonstrations in one area, they pop up elsewhere. 

“Even as we have made some headway in Ottawa, we’ve seen an illegal blockade emerge in Windsor,” said Public Safety Minister Marco Mendicino. — Carlos Osorio, Blair Gable, and Jarrett Renshaw/Reuters

NASA raises concerns about SpaceX satellite deployment plan

Screenshot via SpaceX/YouTube

WASHINGTON — The National Aeronautics and Space Administration (NASA) raised concerns about SpaceX’s plan to deploy about 30,000 satellites for its Starlink, as have some major companies. 

Elon Musk’s SpaceX previously received authorization for about 12,000 satellites to offer broadband internet and has requested authorization for a second-generation constellation of  30,000 satellites. 

“NASA has concerns with the potential for a significant increase in the frequency of conjunction events and possible impacts to NASA’s science and human spaceflight missions,” the agency wrote the Federal Communications Commission. 

NASA noted there are currently 25,000 total objects tracked on-orbit — and about 6,100 below 600 km. SpaceX’s Gen2 expansion “would more than double the number of tracked objects in orbit and increase the number of objects below 600 km over five-fold,” it added. 

Harvard-Smithsonian astrophysicist Jonathan McDowell, part of the American Astronomical Society panel examining the impacts of satellites on astronomy said: “We’ve been concerned with having these large numbers of satellites that interfere with astronomical observations … I think we need a little more experience with the several thousand operating satellites before we can ramp up to the tens of thousands.” 

SpaceX did not immediately respond to a request for comment. 

Mr. Musk tweeted on Jan. 15 SpaceX had 1,469 Starlink satellites active and 272 moving to operational orbits soon. 

Amazon.com, which has pledged to spend at least $10 billion to build 3,236 such satellites through its Project Kuiper program, separately raised concerns with the FCC about SpaceX’s plan as did Dish Network. 

Amazon said under SpaceX’s application “at least hundreds — and potentially more than ten thousand — SpaceX satellites could operate at the same altitudes as the Kuiper System.” 

It warned “the effect of this orbital overlap would be a dramatic increase in risks and other burdens on the Kuiper System” and asked the FCC to impose “reasonable conditions.” 

While extremely costly to deploy, satellite technology can provide high-speed internet for people who live in rural or hard-to-serve places where fiber optic cables and cell towers do not reach. The technology could also be a critical backstop when hurricanes or other natural disasters disrupt communication. — David Shepardson and Steve Gorman/Reuters

PDAX raises $50M to join the metaverse

PIXABAY

Philippine Digital Asset Exchange (PDAX), a local cryptocurrency exchange, announced Feb. 10 that it raised more than $50 million to “build regulated plug-and-play solutions for metaverse applications, fintech, and digital banking apps.”

The Series B round was led by Tiger Global, a New York-based investment firm. Kingsway Capital, Jump Capital, Draper Dragon, Oak Drive Ventures, DG Daiwa Ventures, Ripple, UBX Ventures, BEENEXT, and Cadenza Capital Management round out PDAX’s other Series B investors.

PDAX previously raised $12.5 million in August 2021.

In an interview with BusinessWorld, PDAX chief operating officer Kyle T. Kua attributed the country’s mass crypto adoption to the natural tech-savviness of Filipinos, as well as the rise of the Play-to-Earn (P2E) segment over the pandemic. 

“A lot of Filipinos took time … to start learning about cryptocurrencies and venturing into the space, be it by trading, investing, or playing,” he said, adding that the daily profits of some P2E games were higher than minimum wage. “Knowing how social Filipinos can be, the interest to create crypto wallets and start playing these games shot up across the Philippines — not just in Metro Manila, but in the provinces as well.” 

PDAX, which reached a 35-fold growth in user sign-ups since the start of the lockdowns, added five new coins to its listed cryptocurrencies on Feb. 3.

“These five new tokens are some of the most requested in our community,” said Nix T. Eniego, assistant vice president for marketing of PDAX, referring to Polygon (MATIC), Cardano (ADA), Dogecoin (DOGE), Polkadot (DOT), and Avalanche (AVAX). — Patricia B. Mirasol

BW Insights: Unlocking New Opportunities through Green Financing

As the world strives to find solutions to the looming climate crisis, environmental sustainability is becoming a top priority in the business world. According to the World Economic Forum, the green bond market may reach $2.36 trillion in value by 2023 globally.

What are the opportunities that green financing can bring to the Philippines? How can facilitating the green transition help the country recover its growth momentum?

Learn that and more in the first part of BusinessWorld Insights’ two-part series themed “Green Finance for a More Sustainable Future.”

Join experts as they discuss the topic “Unlocking New Opportunities through Green Financing” LIVE and FREE in BusinessWorld’s and The Philippine STAR’s Facebook pages.

This session of #BUSINESSWORLDINSIGHTS is supported by Bank Marketing Association of the Philippines, British Chamber of Commerce of the Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, People Management Association of the Philippines, and The Philippine STAR.

Sony’s new AI beats humans in Gran Turismo racing game

AI.SONY

Sony said on Wednesday it has created an artificial intelligence (AI) agent called Gran Turismo Sophy (GT Sophy) that was able to beat the world’s best drivers of the PlayStation racing simulation game Gran Turismo

To get GT Sophy ready for the game, different units of Sony brought in fundamental AI research, a hyperrealistic real-world racing simulator, and infrastructure for massive-scale AI training, the company said in a statement. 

The AI first raced against four best Gran Turismo drivers in July, learned from the race, and outperformed the human drivers in another race in October. 

“It took about 20 PlayStations running simultaneously for about 10 to 12 days to train GT Sophy to race from scratch to superhuman level,” said Peter Wurman, director of Sony AI America and the leader of the team who designed the AI. 

While AI had been used to defeat humans in the games of chess, Mahjong and Go, Sony said the difficulty in mastering race car driving was the many decisions that need to be made in real time. 

Sony’s rival, Microsoft, which recently bought Activision for $69 billion, has been using games to improve AI by offering up new challenges for AI models to solve. 

Gran Turismo, a racing simulation video game, made its debut in 1997 and has sold over 80 million units. 

Sony wants to apply the learnings to other PlayStation games. 

“There are a lot of games that pose different challenges for AI and we’re looking forward to starting to work on those problems,” he said.  — Supantha Mukherjee/Reuters

EU wants pandemic treaty to ban wildlife markets, reward virus detection — source

Wildlife market in Myanmar. Image by Dan Bennett/CC BY 2.0/Wikimedia Commons

BRUSSELS — The European Union (EU) is pushing for a global deal aimed at preventing new pandemics that could include a ban on wildlife markets and incentives for countries to report new viruses or variants, an EU official told Reuters. 

International negotiators will meet for the first time on Wednesday to prepare talks for a potential treaty, said the official, who is not authorized to speak to media and so declined to be named. 

The aim is to reach a preliminary agreement by August. 

However, Brussels has so far struggled to get full backing for a new treaty from the United States and other major countries, some of which want any agreement to be non-binding. 

A spokesperson for Charles Michel, the president of the European Council who in November 2020 proposed a new treaty on pandemics, said he had no fresh comment on the matter. 

The White House did not immediately respond to a request for comment. 

According to the most widely accepted theory, the coronavirus disease 2019 (COVID-19) pandemic began with the transmission of the SARS-CoV-2 virus from an animal to humans in a wildlife market in China. 

Although Beijing was initially praised by the World Health Organization (WHO) for notifying it quickly of the new virus, the United States in particular has accused China of holding back information about the likely origins of the outbreak. 

Among measures the EU wants to be included in the treaty is a gradual shutdown of wildlife markets, the EU official said. 

The European Commission, which is expected to negotiate on behalf of EU states, said that its mandate had not been agreed yet by EU governments and concrete proposals to other international negotiators will be made at a later stage. 

The EU wants to introduce legally binding obligations to prevent and report new virus outbreaks, the EU’s draft negotiating mandate seen by Reuters says, without spelling out precise proposals. 

Incentives for countries to report new viruses are also seen as crucial to help with speedy detection and avoid cover-ups, the official said. 

Last year, southern African nations were hit with punishing flight restrictions after they identified the Omicron coronavirus variant, which some fear could deter reporting of future outbreaks if incentives are not attractive enough. 

VACCINES FOR VIRUS ALERTS 

The official said incentives could include guaranteed access to medicines and vaccines developed against new viruses, which poorer nations have struggled to obtain quickly during the COVID-19 pandemic as wealthier states rushed to secure supplies. 

States that detect and report a new virus could also receive immediate support, which might involve shipments of medical equipment from a global stockpile. 

Talks will be chaired by delegates from six countries, representing the world’s main regions — Japan, the Netherlands, Brazil, South Africa, Egypt, and Thailand, officials said. 

Brazil, which will represent northern and southern American countries, favors a non-binding treaty. 

If an agreement is reached, the treaty is expected to be signed in May 2024. 

As part of an overhaul of global health rules, countries are also negotiating tweaks to the International Health Regulations, a set of global rules to prevent the spread of infectious diseases. 

The United States wants to strengthen rules to boost transparency and grant the WHO quick access to outbreak sites, two sources following the discussions told Reuters. — Francesco Guarascio/Reuters

Pandemic propels workers closer to four-day week

UNSPLASH

LONDON — British photographer Paul David Smith had long toyed with the idea of switching all his staff to a four-day week, but it was the flexibility and reliability they showed in the pandemic that gave him the confidence to take the plunge. 

Almost a year later and his trust has been rewarded. 

He says staff at his eponymous studio have kept on top of the workload despite their reduced hours. 

And they are far happier, too. 

Mr. Smith is part of a revolution underway in the world of work — staff do shorter hours for the same pay — which has been gathering pace as economies look to bounce back from coronavirus disease 2019 (COVID-19)

From Iceland to Australia, governments and businesses are testing shorter work weeks, be it in fashion or fast food. 

With dozens of companies set to take part in Britain’s biggest ever trial of a four-day week, joining similar pilots in five other countries, Mr. Smith is at the vanguard of a movement that some believe could reshape workplace norms. 

“The big game-changer has obviously been the pandemic,” said Joe O’Connor of 4 Day Week Global, the New Zealand-based organization co-running the British trial. 

“Companies have not been able to monitor presenteeism in the way they previously did,” he said. “As a result, that’s opened the door to consider something like the four-day working week.” 

ALL CHANGE 

The pandemic forced mass change in office culture, as lockdowns that closed schools and offices resulted in a sudden shift to remote working and flexible hours as many people struggled to balance jobs with care responsibilities. 

Many firms now offer increased flexibility in response to demand from workers, as the “great resignation” and tightening labor markets in countries such as the United States and Britain fuel competition for new staff. 

Spain has offered its financial backing to a four-day week trial, Japan has urged companies to let staff drop a day, and New Zealand premier Jacinda Ardern is also a keen supporter. 

Dozens of firms are already on board. Spanish fashion house Desigual switched to a four-day week last year, and consumer giant Unilever is trialing the shorter week across New Zealand. 

Mr. O’Connor said there was huge British interest in the six-month trial, co-organized by think-tank Autonomy and researchers at Cambridge University, Boston College, and Oxford University. 

The organization is also running three other mass pilots in the United States, Canada, Ireland, Australia, and New Zealand. 

“Everyone’s super excited — including myself,” said Nathan Hanslip, chief executive of Yo Telecom, among those planning to take part when the British trial begins in June. 

The extra day off will give workers extra “wellness, happiness, and more family time,” he added. 

REMOTE CHALLENGES 

The big question for employers — can workers sustain the same level of work but do it in fewer hours? 

Early signs are largely positive, with research by Autonomy think-tank on two large-scale trials of shorter work weeks in Iceland finding that productivity did not dip in most workplaces and worker well being “dramatically” improved. 

Encouraging large-scale switches to shorter hours can also benefit entire economies and help reduce unemployment, said Arthur Donner, a Toronto-based economic consultant who produced a 1994 report to the Canadian government on working hours. 

“It’s a form of work sharing,” he said, spreading the total workload between a larger pool of people. 

But even as the pandemic built the case for flexible working and shorter hours, numerous reports have found that home workers put in longer hours as their habits changed. 

Just take the ubiquity of online meetings in the pandemic. 

“Discussions that were quick emails or a call have now turned into zoom routine meetings for 30 minutes to an hour,” said Jalie Cohen of the HR services firm, The Adecco Group. 

“We are working longer hours. But the outcomes and the productivity should be the focus.” 

Almost six in 10 workers said they could do their job in fewer than 40 hours a week, found surveys of some 15,000 people in 25 countries by The Adecco Group last year, even as the proportion working overtime rose by 14% in a year. 

However, others wonder whether the shift to remote working, an increase in freelancing, and a digital “always on” mentality, have all made the prospect of shorter hours even more remote. 

“Think of all these people who are working from home now. How are you going to measure their working hours?” said Mr. Donner. 

“When you answer an e-mail at midnight from your boss, is that work? Of course it’s work.” 

‘NEW STANDARD’ 

Research from employers suggests many see the need to embrace greater flexibility but are cautious on major shifts. 

It is “getting harder to align” the priorities of employers and employees over work/life balance expectations, said Scott Gutz, chief executive of global recruitment firm Monster. 

Which might mean many firms may be too cautious to act. 

In Britain, a January poll by the Chartered Management Institute (CMI) found more than half of managers said their workplaces were considering or would consider a four-day week — but 73% thought it would not happen in the end. 

Many managers still “believe it’s too big a change for business leaders to make,” said CMI chief executive Ann Francke — though she added the same might once have been said of remote and hybrid working. 

“The five-day working week model isn’t set in stone — once some firms start to adopt it, there is every chance it could snowball to be more mainstream,” she said. 

Mr. O’Connor at 4 Day Week Global agreed, saying he previously expected it would take 10 years to make the shorter week a “new standard” in workplaces — now he thinks it could be five. 

“In a lot of sectors, this is going to go from being the ambition to being the norm very, very rapidly,” he said. — Sonia Elks/Thomson Reuters Foundation

Unemployment picks up in December

The ranks of unemployed Filipinos rose month-on-month in December despite ease of movement restrictions, the Philippine Statistics Authority reported this morning.

The preliminary estimates of the agency’s latest round of the Labor Force Survey (LFS) showed about 113,000 Filipinos became jobless from November to December last year.

This brought the total tally of unemployed Filipinos to 3.272 million that month. It pushed the unemployment rate to 6.6% in December from 6.5% in November.

Meanwhile, around 910,000 Filipinos entered the labor force month-on-month in December, bringing the total labor force size to 49.546 million.

This translated to a participation rate to 65.1% from 64.2% in November. It was the highest labor force participation rate since the monthly LFS in 2021 and the 64.2% in April 2014 using the quarterly survey.

The quality of available jobs slightly improved as underemployment rate — the share of people with jobs but still looking for more work or longer working hours — eased to 14.7% in December from the four-month high of 16.7% in November.

In absolute figures, this was equivalent to 6.811 million underemployed Filipinos, down by around 806,000 from 7.617 million in November.

Around 797,000 Filipinos got jobs in December from the previous month, bring the total employed individuals to 46.274 million. However, this represented an employment rate of 93.4%, a tad lower than November’s 93.5%.

More than half (56.6%) were employed in the services sector that month, while the rest went to agriculture (25.6%), and industry (17.8%). — M. I. U. Catilogo

Average monthly wages decline by 9%

PHILIPPINE STAR/ MICHAEL VARCAS

By Bernadette Therese M. Gadon, Researcher

AVERAGE MONTHLY WAGE rate of selected occupations decreased by almost a tenth in 2020, reflecting the economy’s record contraction due to the coronavirus pandemic.

The Philippine Statistics Authority (PSA) on Wednesday said the average monthly wages of time-rated workers across 190 monitored jobs in the country declined by 9% to P16,486 in 2020 from P18,108 in 2018, citing the Occupational Wages Survey (OWS).

On the other hand, the median monthly basic pay inched up by 0.6% to P13,646 in 2020 from P13,559 in 2018.

Top 10 highest paying jobs in the Philippines in 2020

Conducted every two years, OWS is a nationwide survey of establishments employing 20 or more workers. It monitors the wage rates of two benchmark occupations — accounting and bookkeeping clerks and unskilled workers — and at most 11 occupations in each of the predetermined 55 out of 71 industries.

“The main objective of the 2020 OWS is to generate wage statistics as critical inputs to policies on wage and salary administration and wage determination particularly in wage-fixing, price policies and collective bargaining negotiations,” the PSA said.

For the 2020 OWS, a total of 190 industry-specific jobs were monitored. The reference period covers the pay period that includes Aug. 31, 2020.

Among the 18 industries covered in the survey, mining and quarrying workers saw an increase in their median monthly basic pay by 14.5% to P13,272 in 2020 from P11,590 in 2018. Workers in the electricity, gas, steam, and air-conditioning supply sector saw a 10.7% rise in pay to P27,253 from P24,627, while those in human health and social work activities saw wages increase by 9.8% to P14,721 from P13,411.

Meanwhile, workers in the following industries saw a decline in their median basic pay in 2020: financial and insurance activities by 13.5% (to P15,986 in 2020 from P18,486 in 2018); real estate activities by 9.7% (P16,238 from P17,989); and wholesale and retail trade, repair of motor vehicles and motorcycles by 5.3% (P12,592 from P13,299).

In terms of allowances, the PSA reported a 43.1% rise in median monthly allowances across all industries amounting to P2,456 in 2020 from P1,716 in 2018.

The survey also identified the top 10 highest-paying occupations in the country, with mathematicians, actuaries, and statisticians leading with P63,368 per month, followed by computer network professionals (P59,787 per month), and geologists and geophysicists (P50,449 per month).

Economists largely blamed the decline in monthly average pay to the fallout brought by the coronavirus disease 2019 (COVID-19) pandemic.

Since March 2020, the Philippines has implemented quarantine restrictions to contain the spread of COVID-19, resulting in reduced mobility for workers.

The strict lockdowns battered the economy, which posted a record 9.6% contraction in 2020. Philippine economy rebounded last year with a gross domestic product growth of 5.6%.

Some companies have since then implemented remote or hybrid work setups.

“The decline in productivity due to work stoppages associated with lockdowns and mobility restrictions contributed to the decline in the average monthly wage rate,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail. “Also, the average monthly wage rate fell because the supply of workers far exceeded the demand for them.”

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said that the results of the OWS survey showed how other occupations decreased in the ranks, specifically on jobs that were heavily affected by the pandemic such as airline-related occupations.

“I noticed that one specific highest paid job missing on the list is the airline pilot and it is not hard to figure out why. The pandemic has practically obliterated the job and related jobs and would definitely take more time for the job to come back,” he said in an e-mail exchange.

Despite the improvement in the median basic pay and allowances in 2020, this did not lead to the creation of more jobs, Mr. Terosa said.

“Clearly, occupations requiring higher level skills sets received the highest pay. The pandemic did not affect occupations that can easily take advantage of the shift towards different working arrangements and technology-based tasks,” he said.

Likewise, Mr. Asuncion noted that the increase is only “temporary.” “It is fitting to note that full-time jobs have declined and part-time jobs grew during the height of the pandemic. There was job creation, but they are more temporary and time-bound,” he said.

Both economists expect a rebound both in the average and median monthly basic pay of the Filipino workers in the next round of the OWS as the economy gradually picks up. They also see an increase in the technology-related jobs going forward.

“In the new normal, occupations involving remote work, e-commerce, automation and related technology will be paid more highly than the rest,” Mr. Terosa said. “Demand for high-wage jobs that require greater education, intensive training, and flexible skills will continue to grow.”

“Overall, technology and data science jobs will lead the way,” Mr. Asuncion said.

ADB working with PHL to develop blue bond

PHILIPPINE STAR/EDD GUMBAN

By Jenina P. Ibañez, Senior Reporter

THE ASIAN Development Bank (ADB) is helping the Philippine government develop a sustainability bond that supports fisheries investments.

The multilateral lender helps governments issue green and sustainable bonds, ADB Principal Financial Sector Analyst Arup Chatterjee said.

“We are working with the Philippine government to develop a blue bond. Feasibility study is underway, and we will assess the funding needs of a blue bond to develop a sustainable fisheries value chain,” he said at a BusinessWorld Insights event on Wednesday.

A blue bond is a sustainability bond used for ocean conservation projects. In September last year, ADB issued its first dual-tranche blue bonds denominated in Australian and New Zealand dollars, which would fund ocean conservation projects in Asia-Pacific.

The Philippines has a strong marine economy, with coastline tourism activities generating revenue and jobs within municipalities, an Asian Development Bank Institute (ADBI) report released in December said.

But due to the poor enforcement of laws, tourism destinations are still experiencing uncontrolled development despite marine ecosystem protection policies, the report prepared by Strategia Development Research Institute Executive Director Maria Angela G. Zafra said.

Mr. Chatterjee is optimistic about sustainability bonds in the Philippines.

“The active and primary role of the private sector green bond issuers distinguishes the Philippines from other nascent green markets,” he said.

“Sovereign borrowers have played a more prominent first-mover role. There is potential of tapping green bonds to finance green infrastructure projects.”

At the same event, Finance Assistant Secretary Paola A. Alvarez said the Philippine market must support sustainability initiatives to attract foreign direct investments.

“If (overseas businesses) want to relocate here, now that you have your sustainability bond issuances, these types of bonds necessarily have to report the climate exposure, the climate risks and disaster risks in terms of where the utilization of the fund went.”

“Since the demand for capital investments abroad is more — the appetite is more on sustainability and green (issuances), then for the capital markets or the businesses, if they want to attract foreign direct investments, then they necessarily have to green their issuances and their businesses.”

The Philippines is eyeing a $500-million green bond offer this year, Finance Secretary Carlos G. Dominguez III said last week. He had earlier said that the Philippines is preparing to offer its first sovereign green bonds to fund climate change mitigation projects.

Fifteen Philippine banks, electric and water utilities, energy and property companies have issued 29% or $4.8 billion of ASEAN-labeled green bonds as of end-September 2021, the Bangko Sentral ng Pilipinas said.

Seven local banks have issued more than $1.15 billion and P85.4 billion of green bonds since 2017.

Office vacancy rate seen to climb to 19% this year

A VIEW of buildings in Makati City. — PHILIPPINE STAR/MICHAEL VARCAS

THE VACANCY RATE in Metro Manila’s office buildings is likely to climb to 19% this year, as pre-leasing activities remain tepid and more supply is expected, Colliers Philippines said.

“We expect [office vacancy] to increase this year and that is because of a supply-driven scenario wherein we are expecting 900,000 square meters (sq.m.),” Colliers Philippines Office Services and Tenant Representation Senior Director Dom Fredrick Andaya said at a briefing on Wednesday.   

The real estate services firm said 60% of the new office supply is located in the Bay Area, Fort Bonifacio, and Ortigas.

Vacancy rates are seen to stabilize if the coronavirus disease 2019 (COVID-19) situation improves.

“If (what) many of the studies are saying is true that we’re about to enter the endemic phase already of the COVID-19 pandemic then we expect the 19% (vacancy rate) to plateau already, then start falling by 2023,” Mr. Andaya said.

As of end-2021, the total Metro Manila office stock stood at 12.94 million sq.m., of which 2.03 million sq.m. were vacant.

The vacancy rate spiked during the pandemic, reaching 15.7% in 2021 and 9.1% in 2020, as strict lockdowns forced many employees to work from home. Office rental rates fell by 17% in 2020, and additional 12% in 2021.

In 2019, the vacancy rate stood at 4.2% due to the record growth in business process outsourcing firms and Philippine Offshore Gaming Operators (POGO).

However, Colliers noted an 18% improvement in office transactions last year, with companies taking up 422,000 sq.m. of space, higher than the 357,000 sq.m. in 2020. Transactions more than doubled by the fourth quarter to 134,000 sq.m. from 62,000 sq.m. in the same period in 2020.

Metro Manila accounted for 81% of last year’s office transactions, while the rest included transactions in Cebu, Iloilo, Pampanga, Laguna, Davao, Batangas, Rizal, and Misamis Oriental.

“While the health concerns brought about by the COVID-19 [pandemic] are already being addressed, we’re more confident. That means there’s more focus now in terms of reviving the economy and the businesses,” Mr. Andaya said.

Traditional occupiers and outsourcing firms took up the bulk of office spaces last year and are expected to continue to drive growth this year.

RETURN OF THE POGOS?
Should POGOs return to the market, Colliers Philippines said the office vacancy rate is seen to decline “significantly from 19% to just 12% until 2025.” 

POGOs, which operate online casinos for the China market, occupied at least 1.3 million sq.m. in office spaces before the pandemic.

POGOs now only occupy 677,000 sq.m., taking up only 5% of Metro Manila’s office stock as of end-2021 versus its 11% market share in 2019.

Many POGOs, which employ mostly Chinese nationals, closed up shop in the Philippines due to the higher taxes and travel restrictions.

Beginning 2022, licensed offshore gaming firms are taxed 5% of their gross gaming revenues, while foreigners employed by offline gaming companies or their service providers need to pay 25% withholding tax on their gross income.

However, Mr. Andaya noted that the “most important” factor that affected POGO operations is the “Philippine-China relations with respect to the level of tolerance in allowing this industry to prosper.” Many POGOs are waiting for clarity on the next administration’s policy regarding the industry.

“The result of the Philippine elections can tell us what’s going to happen with this one,” Mr. Andaya said.   

At the same time, Colliers said the economic recovery will be key to driving more office transactions.   

“I think the pressure to revive the economy and the pressure to revive the businesses is greater than the impact of the national elections, the uncertainty that comes with it and that is because some of the important legislation required to stimulate the economy were already passed or are being finalized,” Mr. Andaya said. — Keren Concepcion G. Valmonte

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