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Hong Kong halts Pfizer/BioNTech COVID-19 vaccines, investigates defective packaging

HONG KONG — Hong Kong on Wednesday temporarily suspended coronavirus disease 2019 (COVID-19) vaccinations using two batches of the treatment developed by Pfizer and BioNTech citing defective packaging, but the government said manufacturers indicated they had no reason to believe safety was at risk, and the move was merely a preventative measure.

The government said it had received notice from Fosun Pharma Industrial (Hong Kong), the distributor of the Pfizer/BioNTech vaccine in the financial hub and in Macau, that packaging defects had been detected in a vaccine batch—numbered 210102—related to the closure of bottles.

“BioNTech and Fosun Pharma have not found any reason to believe that product safety is at risk,” the government said. It wasn’t immediately clear how many shots would be affected, but it said use of batch 210102 would be suspended, as would that of another batch, numbered 210104, until further notice.

Fosun Pharma didn’t immediately respond to requests for comment.

On Wednesday, several centers around the Asian financial hub were told by city authorities to stop using the Pfizer/BioNTech vaccine, according to notices seen by residents.

The city began vaccinating residents with doses from China’s Sinovac Biotech Ltd. in February, and began offering the Pfizer/BioNTech vaccine in March.

Macau’s Department of Health said on Wednesday it was suspending production of the BioNTech vaccine in the neighboring special administrative region after discovering a packaging flaw. — Farah Master/Reuters

Imagining a world of zero waste

Human progress has grown by leaps and bounds in the past century, owing to social, economic, and technological revolutions that have shaped the world into what it is today. Yet, all of it has been at a cost to the environment; climate change is now one of the biggest problems the world is facing, along with the constant, ever-growing issue of human waste.

According to the World Bank, waste generation is set to increase from 2.01 billion tons in 2016 to 3.40 billion tons in 2050, as more nations and cities urbanize, develop economically, and grow in terms of population. At least 33% of this waste is mismanaged globally today through open dumping or burning.

How can nations address this growing problem without compromising their social and economic goals? Is it even possible?

The latest edition of BusinessWorld Insights aimed to tackle this problem. In celebration of Global Recycling Day, the virtual forum, with the theme “Recycling and Proper Waste Management for a Sustainable Future,” gathered two of the country’s top stakeholders in solid waste management to discuss a zero-waste future and what might look like for the Philippines.

“The Philippines generates about 44 thousand tons of waste on a daily basis. In Metro Manila, that’s about 10 thousand tons. If you look at it on a per capita basis, it’s about .4 to .7 depending on where you are,” Crispian Lao, vice-chairman of the National Solid Waste Management Commission and founding president of the Philippine Alliance for Recycling and Materials Sustainability (PARMS), said.

“In a developing country like the Philippines, where we have been ranked as the third biggest contributor to marine litter, we found that the gap really is in the infrastructure,” he added.

Recycling is one of the easiest and most effective methods to reduce waste, conserve the environment, and address climate change. Dubbed as the ‘Seventh Resource’, the use of recyclables saves over 700 million tons in CO2 emissions and this is projected to increase to one billion tons by 2030.

Utilizing such a resource is key. Mr. Lao pointed out that the country already has some of the most comprehensive laws on solid waste management, yet the real challenge is in their implementation. 

“Obviously you need financing for that. And this is where the private sector can pitch in by putting up the necessary infrastructure in partnership with all stakeholders, not only government, including civil society and the general public, so we can actually address waste management and to prevent leakage to the environment,” he said.

Also a representative from the private sector, Atty. Joseph Fabul, country manager for corporate and government affairs of Mondelez Philippines, echoed this sentiment. For its part, Mondelez Philippines has emphasized its commitment to sustainability in its processes in various ways.

“First, we make snacks using sustainable ingredients. Second, we ensure that our manufacturing processes continue to evolve in order to reduce the environmental impact of our operations,” he said, adding that the company’s manufacturing plant in Parañaque is now 100% powered by renewable energy.

“Third, we also make sure that we continue to innovate in terms of packaging material. And that’s why we made a commitment to ensure that 100% of our packaging material is recycle-ready by 2025, and the good news is that to-date we are already 94% compliant with that commitment,” he added.

The problem of single-use plastics

The ban on single-use plastics has become a popular method proposed by environmentalists to curb solid waste. But is the solution really that simple?

Reality is more complicated. Atty. Fabul noted that there is a wide spectrum in the types of plastics society generates, and some of these are absolutely necessary.

“First we need to define the necessary and unnecessary types of plastics. Because there are types of plastics that we need. There are also plastics that have no viable commercial and large-scale alternatives, so how do we replace them?” he said.

As a food manufacturer, there is yet to be a viable alternative to plastic when it comes to preserving and protecting packaged food from spoilage or contamination. In addition, because of its weight making it easy to transport, Mr. Lao pointed out that plastic reduces overall greenhouse gas emissions.

According to Mr. Lao, only 30% of local government units have access to materials recovery facilities, where materials could go for recycling and composting. Only 24% to date have access to sanitary landfills at disposal facilities. This is not to mention that many of the country’s poor communities depend on plastic-packaged food for their daily needs.

“What would be the socio-economic impact of a ban that would affect those who live by the day? Sachets are designed for poor communities, the lower economic brackets. We do need to transition and look for better options. While those options are not yet here, it is important to look for solutions. That’s where we are right now, and that’s where we want to set our targets towards zero waste,” Mr. Lao said.

“There are cities that already banned plastic bags. The substitutes are still alternatives that are disposable. Given that the country lacks infrastructure to properly dispose of waste, it only causes more strain to a system that is lacking. The problem has to be viewed holistically,” he added.

Last January 2020, the Philippine Alliance for Recycling and Materials Sustainability (PARMS) and its member companies have committed to build and execute “Zero Waste to Nature Ambisyon 2030,” a strategy and a commitment to manage plastic waste, aiming to ensure that by 2030, none of the members’ plastic packaging waste will end up in nature.   

As part of this commitment, Mondelez Philippines, maker of snacks products like Eden Cheese, Cheez Whiz and Toblerone, pledged that by 2025, it will reduce its global use of virgin plastic for rigid packaging by 25% or reduce virgin plastic use in overall plastic packaging by 5% in 2025. This goes hand in hand with targeting to have 5% recycled content by weight across plastic packaging globally by the same period.

 

This session of BusinessWorld Insights is presented by Mondelez Philippines.

 

Tighter rules eyed for cigarette makers in special ecozones

THE GOVERNMENT will soon require new cigarette manufacturers located in special economic zones (SEZs) to register with the Bureau of Internal Revenue (BIR), after discovering some companies produced illegal tobacco products while enjoying tax exemptions, the Finance department said in a statement on Tuesday.

The Department of Finance (DoF), quoting a letter sent by Finance Secretary Carlos G. Dominguez III to Trade Secretary Ramon M. Lopez, said the BIR is currently drafting revised taxation rules on operations of cigarette manufacturers in SEZs.

The Philippine Economic Zone Authority (PEZA), DoF, BIR and Customs have agreed to make the BIR registration a requirement before new locators can obtain a certificate of registration from PEZA, it added.

Mr. Dominguez said the BIR will issue the revised rules soon after receiving comments from concerned parties.

“The fact that the alleged illicit activities occurred inside the PEZA ecozone is alarming. Not only did PEZA provide tax breaks to the alleged perpetrators, the government has lost billions of pesos in income taxes, excise taxes, VAT and customs duties when these illicit goods entered the local market,” Mr. Dominguez said in his letter.

Mr. Dominguez attributed the rising illegal activities in some PEZA-registered companies to lax monitoring and weak law implementation.

“We already have an agreement with BIR, BoC (Bureau of Customs), DoF to integrate our systems, processes as far as cigarettes are concerned. It’s a need to integrate our laws, recesses (of) systems, that’s where the gap is,” PEZA Director-General Charito B. Plaza said in a Viber message when asked to comment.

PEZA earlier this month said it was talking to the BIR to integrate their systems to boost tax compliance and monitoring, especially those covering PEZA-registered manufacturers of cigarettes and tobacco products who are exporting all of their products.

It is also coordinating with Customs to align systems and requirements when moving goods of companies in economic zones.

Under PEZA’s rules for registration, companies are not required to comply and obtain secondary licenses or authorization certifications from other state offices such as the BIR, if they want to produce several taxable products like cigarettes, oil and alcohol.

The DoF said this allows locators to manufacture unregistered cigarettes inside an economic zone while enjoying tax perks, and supply to the local market illegally.

House Ways and Means Committee Chairman Jose Ma. Clemente S. Salceda told the BIR in a House hearing early this month to revoke Revenue Regulation (RR) No. 9-2015 granting tax exemption on export cigarettes and ordered the agency to put tax stamps on all cigarette packs, whether for export or local market.

Mr. Salceda also asked PEZA to strengthen its police force enforcement and let other regulatory agencies implement their own rules and regulations inside SEZs.

“Keeping a close watch on those engaged in manufacturing regulated goods from the moment the raw materials enter the zones up to the removal from warehouses is consistent with best practices employed to monitor excisable products and goods,” Mr. Dominguez said.

The BIR raided several warehouses of two PEZA-registered locators recently, confiscating unregistered cigarettes and machines to produce them. The companies produce cigarettes for exports but investigations found these were being distributed in Central Luzon.

BusinessWorld reached out to local agriculture industry group Samahang Industriya ng Agrikultura (SINAG) for comment but did not get a response at the deadline time. — Beatrice M. Laforga

BIR to extend ITR filing deadline for companies

BIR taxpayers
PHILIPPINE STAR/KRIZ JOHN ROSALES

By Beatrice M. Laforga, Reporter

THE BUREAU of Internal Revenue (BIR) is extending the deadline for the filing of annual income tax returns (ITR) for corporate taxpayers, following the recent surge in coronavirus cases and the President’s delay in signing into law the measure to bring down corporate income tax.

“ITR filing for corporates will be extended due to COVID-19 and CREATE (Corporate Recovery and Tax Incentives for Enterprises Act),” Arnel SD. Guballa, deputy commissioner for operations at the BIR told BusinessWorld in a Viber message on Tuesday.

However, Mr. Guballa did not give the new deadline date. The original deadline for filing of ITRs by corporate taxpayers is on April 15.

The BIR is aiming to collect P231.57 billion in April, given the expected surge from income tax payments.

However, tighter travel restrictions in Metro Manila and nearby areas are in place until April 4 due to the spike in coronavirus cases. On Tuesday, the Health department reported 5,867 new COVID-19 cases, bringing the number of active cases to a record-high 86,200. 

CREATE is now awaiting President Rodrigo R. Duterte’s signature. If the President fails to sign this, it lapses into law on March 27. The measure will slash the corporate income tax for local small businesses to 20%, from the current 30%. The tax rate for all other companies, meanwhile, will be reduced to 25% and further cut by one percentage point each year from 2023 to 2027 until it reaches 20%.

To be applied retroactively to July 2020, CREATE is expected to result in P251 billion in foregone revenues in the next two years, and P1 trillion in 10 years.

The deadline extension for ITR filing is a must, according to Maria Lourdes P. Lim, a tax managing partner of Isla Lipana & Co., PwC Philippines.

She noted there are only three weeks left before the initial April 15 deadline, but specific rules, revised forms and other guidelines are not finalized yet.

“Both the private sector and the BIR need time to prepare for the implementation of the changes. Will the BIR come out with new ITR forms or will the old forms be used and the auto compute function for eFPs (electronic filing and payment) and eBIR systems will be disabled so taxpayers can input new rates and compute manually? There are many implementation issues so it’s just right to extend the deadline,” Ms. Lim said in a mobile phone message.

She also raised the question whether the 2020 corporate income tax will be computed based on actual operations or on a prorated basis.

Ms. Lim said the extension should also be applied both for individual and corporate taxpayers since the coronavirus pandemic has severely impacted micro-, small- and medium-sized businesses too.

BIR officials did not respond to questions at the deadline time when asked for further details.

To recall, the BIR moved the deadline for ITR filing three times in 2020 due to the pandemic and subsequent lockdown restrictions. Tax collections for April 2020 plunged by 62% to P90.5 billion, due to the delayed payment of taxes.

Also on Monday, BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular No. 39-2021 which moved the last day of filing refund claims to April 12 from the initial March 31 deadline.

Mr. Dulay also suspended the 90-day processing period for the refund claims.

He said the BIR’s VAT Credit Audit Division will temporarily be closed until March 28 “in compliance with the existing health protocols for the mitigation of the COVID-l9 pandemic.”

“The extension of the deadline for filing VAT refund claims is a welcome news considering the challenges in preparing the documentary requirements given the current situation and alternative working arrangements being adopted not only by the private sector but also the government,” Ms. Lim said.

 Late last year, the BIR extended the deadline of the amnesty program for delinquent accounts until June 30, 2021 from the previous Dec. 31, 2020 deadline. This marked the fourth time the BIR extended the program’s deadline from the original April 23 cutoff period.

It also moved the deadline for the availment of the Voluntary Assessment and Payment Program to June 30, 2021 from the initial deadline of Dec. 31, 2020, to allow more taxpayers to voluntarily settle their tax arrears.

The BIR collected P134.27 billion in revenues in February, exceeding the monthly target by 0.07% but still 5.58% lower year on year.

The country’s biggest tax-collecting agency has been tasked to collect P2.081 trillion for 2021, up by 7% from the P1.95-trillion actual collection last year.

Retailers expect revenue slump amid new curbs

Malls remain open but tighter restrictions may discourage more people from going out.

By Jenina P. Ibañez, Reporter

SEGMENTS of the retail sector may see revenues plunge by as much as 70% over the next two weeks as restrictions are tightened in the capital region to curb the surge in coronavirus disease 2019 (COVID-19) infections.

Until April 4, some businesses will be banned from operating at full capacity or at all, while indoor dine-in at restaurants will not be allowed in the capital and its neighboring provinces, or the so-called “NCR Plus” bubble.

The Health department on Tuesday reported 5,867 new COVID-19 cases, bringing the total to 677,653. The number of active cases stood at record-high 86,200.

Roberto S. Claudio, vice-chairman of the Philippine Retailers Association, said that retailers will experience reduced patronage while restrictions are being enforced.

“Particularly, restaurants, fastfood (chains) and non-essential retailers will easily see 50% to 70% drop in revenue,” he said in an e-mail on Monday. “In fact most retailers and restaurants have already experienced 50% actual drop ever since the lockdown was announced on March 21.”

Retailers will cooperate with the authorities, he added, to help reduce the number of COVID-19 cases as soon as possible.

“The government will just have to accelerate the vaccination program and do more testing in areas that have high COVID cases,” he said.

The retail industry group at the start of the year reported that it anticipates “soft” growth for 2021, or 10% higher than last year. This potential sales improvement would still be around 20-30% lower than 2019 or pre-pandemic sales.

The sector suffered last year due to sparse foot traffic at malls and commercial centers amid the lockdown and increased public health anxiety among consumers.

Philippine Chamber of Commerce and Industry (PCCI) President Benedicto V. Yujuico on Monday said that smaller retailers would be affected by the temporary restrictions, noting that customer health fears would reduce foot traffic at restaurants despite government permission to run outdoor dining spaces.

A faster rate of inoculation, he said, will be needed to solve the crisis.

The chamber last week asked the government to allow the private sector to directly import vaccines without restrictions or conditions.

But President Rodrigo R. Duterte said the government cannot be held liable for vaccines bought by the private sector. Last month, Mr. Duterte signed a law giving indemnity to vaccine manufacturers.

The government has inoculated just over 360,000 of up to 70 million Filipinos it plans to immunize this year.

Meanwhile, PCCI is urging Filipino consumers to buy locally produced goods to help domestic businesses recover.

“In the face of losses from reduced economic activity, we are calling on all consumers and industry users to support Philippine-made products. This is to help local businesses survive, rebound and continue providing jobs for the Filipino people,” Mr. Yujuico said in a statement on Tuesday.

The chamber also encourages multinationals and local contractors, manufacturers, and enterprises to source materials within the country, unless there are no local options.

The Philippine economy contracted by a record 9.5% in 2020 due to the prolonged lockdown.

PHL loses up to $890M a year due to plastics recycling ‘failure’ — WB

THE PHILIPPINES recycled about 28% of the key plastics resins in 2019, a World Bank study showed. — THE PHILIPPINE STAR/ EDD GUMBAN

By Angelica Y. Yang

THE PHILIPPINE economy is losing up to $890 million a year due to what is described as a “market failure” in plastic waste recycling efforts, a new World Bank Group (WB) country study showed.

“Only 22% of the total material value of plastics ($246 million/year) is currently unlocked. This results in $790-890 million/year of potential material value that is lost to the Philippine economy,” the World Bank Group said in “Market Study for the Philippines: Plastics Circularity Opportunities and Barriers” released on Tuesday.

The total material value which could be unlocked from plastics recycling amounted to $1.1 billion, assuming that four of the country’s key plastics resins had 100% collected-for-recycling (CFR) rates and were sold for maximum value in the market, the World Bank said.

The four key plastics resins in the Philippines are Polyethylene Terephthalate (PET), High-Density Polyethylene (HDPE), Low-Density Polyethylene or Linear Low-Density Polyethylene (LDPE/LLDPE) and Polypropylene (PP). They accounted for up to 93% of all the plastics resins used by Filipinos in 2015.

The World Bank said the annual material value loss of $790-$890 million is the result of “various structural challenges which affected CFR rates and value yields for the four key resins.”

The World Bank cited six challenges which prevented the Philippines from maximizing the value of plastic waste. These include high logistics costs, expensive electricity bills, and the presence of low-value and hard-to-recycle packaging, which makes up 61% of the plastic packaging units in the market.

The Philippines also faced intense competition from the informal recycling industry, low tipping fees which discourage local governments from investing in waste management solutions, and small and medium enterprises who dominated the recycling industry but cannot capitalize on the growing demand for recycled resins.

In 2019, the Philippines recycled only 28% of its key plastics resins, the report showed.

The World Bank recommended six interventions, which called for an increase in waste collection and sorting of plastics, a national design for recycling standards, and the creation of industry-specific requirements in ramping up waste collection and recycling rates, among others.

In a separate press release on Tuesday, the World Bank Group said that the Philippines, Malaysia and Thailand are losing a total of $6 billion a year due to un-recycled plastic waste, based on the group’s series of country studies.

“More than 75% of the material value of the plastics is lost — the equivalent of $6 billion per year across the three countries — when single-use plastics are discarded rather than recovered and recycled, representing a significant untapped business opportunity if key market barriers can be addressed,” the multilateral lender said.

The World Bank noted that less than a quarter of plastics were available for recycling in Malaysia, Thailand and the Philippines.

World Bank Country Director for Brunei, Malaysia, the Philippines and Thailand Ndiamé Diop said that the issue of mismanaged plastics in the three countries is threatening the tourism and fisheries sectors.

“But there is strong government momentum in these countries to identify critical policies, and craft roadmaps to strengthen demand for all recycled plastics resins, level the playing field for global and domestic companies, and help drive a circular economy for plastics,” he was quoted as saying.

GA Circular, a research and strategy firm that specializes in waste management and recycling, conducted the three country studies. The GA Circular researchers consulted with workers across the plastics value chain to develop baseline data, and undertook analyses to quantify the untapped market potential for each resin.

The Korea Green Growth Trust Fund, a partnership between the World Bank Group and Republic of Korea, provided the funding for the Philippine study. Meanwhile, umbrella multi-donor trust fund PROBLUE, which is housed at the World Bank, funded the Thailand and Malaysia studies.

Treasury fully awards reissued bonds despite surge in yields

THE GOVERNMENT made a full award of the reissued Treasury bonds (T-bonds) it offered on Tuesday even as yields surged as investors preferred to keep their cash amid an uncertain economic outlook.

The Bureau of the Treasury (BTr) raised P30 billion as planned via the reissued 10-year T-bonds it auctioned off on Tuesday. The offer was nearly two times oversubscribed as bids reached P53.92 billion, but this was lower than the P63 billion in tenders seen when the notes were last offered on Feb. 2.

The 10-year bonds, which have a remaining life of nine years and three months, fetched an average rate of 4.614%, surging by 154.8 basis points (bps) from the 3.066% seen in the previous offering.

The 10-year tenor was quoted at 4.473% at the secondary market on Monday, based on PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said the Treasury made a full award of the 10-year papers despite the higher rate as the average yield fetched was still aligned with prices at the secondary market.

“Pension and insurance funds need long-term assets to match their portfolio,” Ms. De Leon told reporters in a Viber message after the auction.

A bond trader said investors are holding on to their cash in the meantime as economic prospects remain murky.

“People are not willing to hold long bonds. Cash is king. At the same time, we see that the government needs to borrow more due to lower revenues,” the trader said.

The Health department reported that the daily count of virus cases surged to a fresh record high of 8,019 on Monday, bringing the tally to 671,792.

Travel restrictions in Metro Manila and nearby areas have been tightened anew for two weeks until April 4 due to rising coronavirus cases in the country.

Economic managers backed localized lockdowns as they find these less disruptive for the broader economy. However, they admitted that the recent spike in cases and tighter restrictions could further delay the economy’s recovery.

The government has set a 6.5-7.5% economic growth target for this year. Gross domestic product (GDP) dropped by a record 9.5% in 2020.

The BTr plans to borrow P160 billion from the local debt market this month: P100 billion via weekly auctions of Treasury bills and P60 billion from fortnightly T-bond offerings.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of GDP. — B.M. Laforga

Phoenix plans asset sale, transfer to manage debts

THE board of directors of Dennis A. Uy-led Phoenix Petroleum Philippines, Inc. has given management the go signal to unload certain corporate assets for its debt management activities.

In a disclosure to the exchange on Tuesday, the company said transactions will cover the “transfer, sale, mortgage or disposition of certain corporate properties, assets, or investments” that may be relevant to the success of the company’s financial management program.

Phoenix Petroleum’s management has been authorized to enter negotiations “under reasonable and acceptable terms and conditions advantageous to the corporation” with any interested entity.

The board decision comes a day after the company told the stock exchange that the company or any of its subsidiaries “is open to consider any investor willing to invest and believes in the operations [of Phoenix Petroleum] and can further add value to its business activities.”

It said that such offers are nothing new to the company and that it had been open to investors who believe in its core business and can bring in value to its operations, finances, and to its shareholders.

“We see these as opportunities for growth,” it said.

But Phoenix Petroleum said that the dilution of its shareholdings had not been a subject of any discussion at any level in the company.

Last week, Davao-based businessman Mr. Uy sold off the entire stake of Chelsea Logistics and Infrastructure Holdings Corp. in 2GO Group, Inc. worth around 31.73% of shares to SM Investments Corp. at P8.50 apiece.

The transaction will make 2GO a subsidiary of SMIC, as the Sy-led company already has an existing 30.49% stake in 2GO.

Chelsea is the shipping and logistics firm of Uy-led Udenna Group. Chelsea said it would use the 2GO sale proceeds to pay for the loan it acquired to buy 2GO shares in 2017.

In January, an official of the Department of Energy (DoE) said that the agency had to cancel the “notice to proceed” issued to Mr. Uy’s $2-billion import terminal project under Tanglawan Philippine LNG, Inc.

“We were constrained to cancel their notice to proceed as, in fact, they essentially withdrew their plans as they were not able to reach financial close,” Assistant Secretary Leonido J. Pulido III said in a Senate hearing. “They are no longer pursuing their project.”

He added that the withdrawal was caused by a “commercial issue.” Tanglawan is controlled by Phoenix Petroleum.

Phoenix Petroleum shares declined by 2.38% or P0.28 on Tuesday to close at P11.50 apiece. — Keren Concepcion G. Valmonte

An arts buffet online

THE Cultural Center of the Philippines (CCP)’s open house festival,Pasinaya,” was the first event canceled last year following the outbreak of COVID-19 in February. This year, the open house arts festival has been revived and, in a way, expanded as it is being held in virtual theaters and galleries, making it open to a much wider audience than just those who could visit the CCP’s various performance and exhibit spaces over one weekend.

The festival has been renamed for the year as “Tuloy Po Kayo: Palihan. Palabas. Palitan.” Kicked off last weekend, it is ongoing on the online platforms of the CCP, its second batch of activities and shows to be held from Mar. 26 to 28.

The festival’s concept comes “from the tenet of Philippine psychology that touches on the Filipino’s desire to welcome his kapwa or fellow man into his home,” said a CCP press release. It “embraces the idea that no pandemic can stop artists from creating great works, finding new means of expressions, and sharing their ingenuity with others…”

“We felt that it’s time to reinvent ourselves according to the available platform using the same formula asPasinaya” but growing bigger virtually, and engaging the other regions,”

“Tuloy Po Kayo’s” deputy festival director Ariel Yonzon told BusinessWorld in a Zoom interview on Mar. 18.

The artists and groups welcome the audience into their homes, ateliers, salons, performance spaces, and venues virtually, to be part of the creative process. For the first time this year, the festival includes artist groups from Hong Kong and Taiwan.

The online multi-arts festival consists of a three-part program — “Palihan,” “Palabas,” and “Palitan.” On Mar. 26, “Palihan” will feature workshops; on Mar. 27 and 28, “Palabas” focuses on performances by the CCP resident companies, regional groups, and other participants. “Palitan” focuses on talks with international and local festival organizers, art programmers, and creative stakeholders.

The festival website (www.tuloypokayo.com/) brings the participant to the CCP lobby and there they can choose the venue to explore — from the virtual Tanghalang Nicanor Abelardo to Bulwagang Juan Luna.

Once inside the venue, they can choose which activity to participate in or which show to watch. Each workshop, performance, or artistic activity is 15 minutes long. The activities run from 9 a.m. to 7 p.m. There are also film screenings via the CCP Vimeo Channel (https://vimeo.com/culturalcenterphils).

This weekend, one can watch winning films from the 16th Cinemalaya Philippine Independent Film Festival; attend a meet-and-greet with the screenwriter/director and actors of the award-winning Cinemalaya film John Denver Trending in live sessions on Mar. 27 after the film’s 11:30 a.m. screening; watch Kolab Co’s Mourning Gurlz, a reinterpretation of  Wilfrido Ma. Guerrero’s play Eye of A Needle  on Mar. 28, 1 p.m., at virtual Little Theater, and a performance of Artist Playground’s Geegee at Waterina, a play about the friendship between a gay town councilor and an aging drag queen and former “comfort gay,” on Mar. 28, 5:30 p.m., at the virtual CCP Main Theater.

Among the events on Mar. 26 at the online Palihan are: a talk about choral singing from the Philippine Madrigal Singers with Madz artistic director Mark Anthony Carpio at 11 a.m. and noon; playwright, actor and director Dennis Marasigan talking about Theater Elements, live at noon; a workshop on Dagit-Dagit with the Samahang Tagapagtaguyod ng Katutubong Sayaw ng Pilipinas and the Philippine Folk Dance Society at 2 p.m.; Young at Art Exclusive Preview with Karl Jingco at 2 p.m.; and a PumaPodcast talk about the Power of the Audio Experience on film at 3 p.m.

On Mar. 27, experience the rich culture of Mindanao through the 15-minute taste of Popong Landero and Kuntaw Mindanaw, highlighting folk and neo-ethnic music from Davao, at 10 a.m.; attend Xavier Stage of Cagayan de Oro’s latest production, Nang Lumuha Ang Tala, 9:30 a.m., at the virtual Tanghalang Nicanor Abelardo stage; visit the dance studio of Gawad CCP Awardee Agnes Locsin and watch performances of Dasal and Bathala at 2 p.m., at the virtual Tanghalang Huseng Batute.

On Mar. 28, Lea Salonga talks about her Broadway theater experiences and sings Broadway songs from the musicals she starred in at 4:30 p.m.; opera singers Arthur Espiritu and Camille Lopez Molina will annotate excerpts from the opera Lucia Di Lammermoor at 4 p.m., preceded by the opening of Act III of the opera classic; a Behind-the-Scenes cut video of Jerrold Tarog’s short film Ang Kabaligtaran ng Gunaw, will be shown at 5 p.m.

Over at Museum Mile (https://www.tuloypokayo.com/museum-mile/),, guests can also go on Virtual Tours of more than 40 museums and galleries from Luzon, Visayas, and Mindanao. There are also more than 50 online art exhibits featuring Filipino artists in their studios and creative spaces.

“More than any other time in history, we’re now reaching numbers, unimaginable in a physical space, because the physical space can only give you maximum occupancy loads, but the virtual space, that’s limitless,” said Mr. Yonzon, who is the Associate Artistic Director of the Production and Exhibition Department of the CCP.

In a “better” normal and post-pandemic situation, Mr. Yonzon said that the return of live events will coexist with the virtual content.

“If there’s anything that we learned from last year, we now realize that even when we get back to the new and better normal, we now must have, as part of our programming,  virtual iterations of our live content,” Mr. Yonzon said. “That means, many of our programs will now be built for a live audience, and one that’s developed for online and broadcast streaming.”

For the full schedule activities, visit the CCP official social media accounts on Facebook (www.facebook.com/CulturalCenterofthePhilippines), Twitter www.twitter.com/theCCPOfficial, and Instagram www.instagram.com/CulturalCenterPH, and the CCP website (www.culturalcenter.gov.ph). — Michelle Anne P. Soliman

The African roots of Swiss design

DESIGN remains a largely white profession, with Black people still vastly underrepresented — making up just 3% of the design industry, according to a 2019 survey.

This dilemma isn’t new. For decades, the field’s whiteness has been recognized as a problem, and was being openly discussed as far back as the late 1980s, when the few Black graphic design students preparing to enter the profession spoke of feeling isolated and rudderless.

Part of the lack of representation might have had to do with the fact that prevailing tenets of design seemed to hew closely to Western traditions, with purported origins in Ancient Greece and the schools out of Germany, Russia, and the Netherlands deemed paragons of the field. A “Black aesthetic” has seemed to be altogether absent.

But what if a uniquely African aesthetic has been deeply embedded in Western design all along?

Through my research collaboration with design scholar Ron Eglash, author of African Fractals, I discovered that the design style that undergirds much of the graphic design profession today — the Swiss design tradition that uses the golden ratio — may have roots in African culture.

The golden ratio refers to the mathematical expression of “1: phi,” where phi is an irrational number, roughly 1.618.

Visually, this ratio can be represented as the “golden rectangle,” with the ratio of side “a” to side “b” the same as the ratio of the sides “a”-plus-“b” to “a.”

Create a square on one side of the golden rectangle, and the remaining space will form another golden rectangle. Repeat that process in each new golden rectangle, subdividing in the same direction, and you’ll get a golden spiral, arguably the more popular and recognizable representation of the golden ratio.

This ratio is called “golden” or “divine” because it’s visually pleasing, and some scholars argue that the human eye can more readily interpret images that incorporate it.

For these reasons, you’ll see the golden ratio, rectangle and spiral incorporated into the design of public spaces and emulated in the artwork in museum halls and hanging on gallery walls. It’s also reflected in nature, architecture, and design — and it forms a key component of modern Swiss design.

The Swiss design style emerged in the 19th century from an amalgamation of Russian, Dutch, and German aesthetics. It’s been called one of the most important movements in the history of graphic design and provided the foundation for the rise of modernist graphic design in North America.

The Helvetica font, which originated in Switzerland, and Swiss graphic compositions — from ads to book covers, web pages and posters — are often organized according to the golden rectangle. Swiss architect Le Corbusier famously centered his design philosophy on the golden ratio, which he described as “[resounding] in man by an organic inevitability.”

Graphic design scholars — represented particularly by Greek architecture scholar Marcus Vitruvius Pollo — have tended to credit early Greek culture for incorporating the golden rectangle into design. They’ll point to the Parthenon as a notable example of a building that implemented the ratio in its construction.

But empirical measurements don’t support the Parthenon’s purported golden proportions, since its actual ratio is 4:9 — two whole numbers. As I’ve pointed out, the Greeks, notably the mathematician Euclid, were aware of the golden ratio, but it was mentioned only in the context of the relationship between two lines. No Greek sources mention a golden rectangle.

In fact, ancient Greek writings on architecture almost always stress the importance of whole number ratios, not the golden ratio. To the Greeks, whole number ratios represented Platonic concepts of perfection, so it’s far more likely that the Parthenon would be built in accordance with these ideals.

If not from the ancient Greeks, where, then, did the golden rectangle originate?

In Africa, design practices tend to focus on bottom-up growth and organic, fractal forms. They are created in a sort of feedback loop, what computer scientists call “recursion.” You start with a basic shape and then divide it into smaller versions of itself, so that the subdivisions are embedded in the original shape. What emerges is called a “self-similar” pattern, because the whole can be found in the parts.

Consider the palace of the chief in Logone-Birni, Cameroon. Its rooms are laid out using a fractal grid characterized by the repetition of similar shapes at ever-diminishing scales. As Ron Eglash notes in African Fractals, the path that a palace visitor would take to navigate the space approximates a golden spiral.

The recursive construction of the palace — from tiny rectangles to larger and larger rectangles — naturally lends itself to the golden rectangle construction for the overall form, even though the match along any one wall is far from perfect.

This method of organically growing architecture is typical of building layouts in Africa; indeed, many of its design patterns include this organic scaling, probably because it links to concepts of fecundity, fertility and generational kinship that are commonplace in African art and culture.

Scholar and spiritualist Kwame Adapa shows such a scaling pattern in Kente cloth from Ghana. The black stripes are on a white background, with rows formed as follows: 1, 1, 2, 3, 5 — what we now call the Fibonacci sequence, from which the golden ratio can be derived.

Robert Bringhurst, author of the canonical work The Elements of Typographic Style, subtly hints at the golden ratio’s African origins:

“If we look for a numerical approximation to this ratio, 1: phi, we will find it in something called the Fibonacci series, named for the 13th century mathematician Leonardo Fibonacci. Though he died two centuries before Gutenberg, Mr. Fibonacci is important in the history of European typography as well as mathematics. He was born in Pisa but studied in North Africa.”

These scaling patterns can be seen in ancient Egyptian design, and archaeological evidence shows that African cultural influences traveled down the Nile river. For instance, Egyptologist Alexander Badaway found the Fibonacci Series’ use in the layout of the Temple of Karnak. It is arranged in the same way African villages grow: starting with a sacred altar or “seed shape” before accumulating larger spaces that spiral outward.

Given that Mr. Fibonacci specifically traveled to North Africa to learn about mathematics, it is not unreasonable to speculate that Mr. Fibonacci brought the sequence from North Africa. Its first appearance in Europe is not in ancient Greece, but in Liber Abaci, Mr. Fibonacci’s book of math published in Italy in 1202.

Why does all of this matter?

Well, in many ways, it doesn’t. We care about “who was first” only because we live in a system obsessed with proclaiming some people winners — the intellectual property owners that history should remember. That same system declares some people losers, removed from history and, subsequently, their lands, undeserving of any due reparations.

Yet as many strive to live in a just, equitable and peaceful world, it is important to restore a more multicultural sense of intellectual history, particularly within graphic design’s canon. And once Black graphic design students see the influences of their predecessors, perhaps they will be inspired and motivated anew to recover that history — and continue to build upon its legacy. — Reuters

 

Audrey G. Bennett is a Program Director and Professor at the Stamps School of Art & Design of the University of Michigan.

Tanco Group ventures into cloud computing

TANCO GROUP, owner of the STI network of schools, is now engaged in the business of cloud computing through Stitch Tech Solutions, its new information technology (IT) firm.

“We got into this so that we could help others recover as well. With our companies, we are very technologically driven. We’d like to help others,” Jaeger L. Tanco, Stitch chief executive officer (CEO), said at a virtual media briefing on Tuesday.

Stitch Chairman Eusebio H. Tanco said in a statement that the Tanco Group is hoping to advance further its existing technology-related endeavors through the new IT company.

He added the group wants to create an ecosystem “that empowers even more people in the digital age.”

“Integrating our businesses into having one IT backbone aided by data science and cloud computing is important because it enables us to become more efficient in our operations and provide the best customer experience possible. We have seen it work in one of our businesses,” the chairman explained.

The group wants to partner with micro, small, and medium enterprises (MSMEs) for its cloud computing services.

“Aside from COVID-19, we understand that many businesses in and around Metro Manila have also been watching the movements of Taal Volcano and Mount Pinatubo given their grim histories, as well as ‘The Big One’ since these are expected to cripple business operations. With cloud computing, enterprises can continue to function amid these events as if they didn’t happen,” Stitch Chief Operating Officer Alex Aquino said.

The new firm also offers SAP (systems, applications, and products) consultation and IT services like website and app development and management, as well as IT support.

“Our financial health as a country suffered this pandemic given that MSMEs function as our main economic lifeline. Through cloud computing, we want to give these businesses a shot in the arm, so they can get back on their feet the soonest and not just survive, but thrive,” Stitch’s CEO Mr. Tanco added. — Arjay L. Balinbin

Fitch warns of stability risks of central banks’ asset purchases

ASSET PURCHASES may remain a staple in central banks’ policy toolkit going forward, but these could become risky in case global financial measures tighten, Fitch Ratings said.

The debt watcher said while asset purchases are not directly involved in its ratings assessment, it could pose a downside risk to sovereigns’ grades, particularly in policy indicators.

“A weakening of the credibility of policy frameworks is a negative rating sensitivity for a number of emerging markets, including some of those that began asset purchases last year,” Fitch Ratings said in a note on Tuesday.

In May 2020, Fitch affirmed its “BBB” rating for the Philippines but downgraded its outlook to “stable” from “positive” as it factored in the impact of the pandemic on the economy. A stable outlook means the rating is likely to be maintained within the next 18 to 24 months.

The Bangko Sentral ng Pilipinas (BSP) started its asset purchases at the onset of the pandemic in March 2020 when it bought P300 billion in short-term securities from the Bureau of the Treasury (BTr).

In October, the central bank granted another P540-billion zero-interest loan to the National Government that was paid in full in December. The BSP lent another P540 billion in January for the government’s pandemic response.

Republic Act (RA) 11494 or the Bayanihan to Recover as One Act allowed the BSP to lend 30% of its average revenue to the government, an increase from the 20% limit under RA 7653 or The New Central Bank Act. This allowed the BSP to lend up to P850 billion from the previous cap of P540 billion.

“Indonesia and Philippines were the only sovereigns outside of the ‘B’ category that implemented primary market purchases in 2020, and in both they were targeted and transparent, with the authorities emphasizing their temporary nature amid exceptional pandemic-related conditions,” Fitch said.

The ratings agency said primary market purchases appear to be a greater threat to institutional credibility compared with buying from the secondary market.

For now, however, Fitch said macroeconomic risks from quantitative easing of central banks have not materialized.

“However, it may lead to fiscal dominance and has a record of reinforcing macroeconomic instability,” it said.

BSP Governor Benjamin E. Diokno has said they will carefully assess the timing of unwinding the policy measures it rolled out during the crisis to safeguard financial stability. — L.W.T. Noble