WASHINGTON — Treasury Secretary Janet Yellen will paint an optimistic picture for the US economy as it emerges from the coronavirus pandemic, telling US lawmakers on Tuesday that she sees both growth and possibly full employment next year — due to President Joseph R. Biden’s coronavirus stimulus package.
Ms. Yellen, in written testimony prepared for delivery to the US House of Representatives Financial Services Committee, said that with passage of the $1.9-trillion American Rescue Plan Act, “I am confident that people will reach the other side of this pandemic with the foundations of their lives intact. And I believe they will be met there by a growing economy. In fact, I think we may see a return to full employment next year.”
Ms. Yellen said the Treasury, tasked with implementing much of the Biden stimulus plan and distributing the funds, was working to expedite relief to the areas of greatest need, including the smallest of small businesses, which are disproportionately owned by women and people of color.
The Treasury also is reducing some documentation requirements for struggling Americans to receive funds to help them make housing rental and mortgage payments in an effort to speed the implementation of a $30-billion housing aid plan.
“We’re cutting through the red tape for them, while still taking reasonable steps to prevent fraud and abuse,” Ms. Yellen said.
Treasury is also working closely with state, local, tribal and territorial governments to implement $350 billion in aid to them, she said.
Treasury officials said last week that the state and local government aid program, which is still setting rules on the use of funds, would start distributing money within about 60 days. — Reuters
MOODY’s Investors Service has affirmed the long-term debt rating of Power Sector Assets and Liabilities Management Corp. (PSALM), citing its strategic importance as a state-led entity that carries out a mandated role for the country’s power sector.
In rating action dated March 22, Moody’s also maintained its “stable” outlook on PSALM, which it expects to continue receiving strong support from the government. A stable outlook means that the grade can be retained over the next 12 to 18 months.
“PSALM’s credit profile is underpinned by its strategic importance as a state-owned enterprise that carries out a mandated policy role for the Philippine power sector,” Moody’s Vice President and Senior Analyst Spencer Ng was quoted as saying.
“Supporting the ratings is the Government of Philippines’ (Baa2 stable) strong commitment to the company, which underpins the very high likelihood of support for PSALM, to prevent a default in times of stress,” Mr. Ng added.
In its rating action, Moody’s noted that PSALM’s financial position and liquidity were “heavily influenced” by the government, as seen from the presence of government officials in the company’s board of directors, and the entity’s reliance on funding from the Malampaya-gas-to-power project fund under the Murang Kuryente Act (MKA).
The MKA, which was signed two years ago, allocates P208 billion from the Malampaya project’s fund to PSALM over the next three or four years. In return, PSALM will not collect new tariffs to pay for future stranded costs and stranded debts until the allocation is used up.
While the MKA provides more details on how PSALM will be reimbursed for stranded costs, it will also increase PSALM’s dependence on the government, Moody’s said.
“If annual funding allocated under the MKA falls short of the requirement, PSALM might need to raise additional debt to meet its operating requirements,” Moody’s said.
It added that it expects the Philippine government to continue to support the company’s funding requirements, as the former has “unconditionally and irrevocably” guaranteed all of PSALM’s outstanding external debt and has provided loans to the firm.
“In Moody’s view, PSALM’s close financial and operational links with the government make its credit profile inseparable from the government’s own credit profile. As such, PSALM’s rating is derived solely based on support and is assigned without a baseline credit assessment,” it said.
Moody’s said that PSALM’s ratings can be upgraded if the country’s sovereign rating is also upgraded.
The state-led company’s ratings can also be downgraded if the Philippines’ sovereign experiences the same, Moody’s said. A rating downgrade can also happen “if evidence emerges of a weakening in government support for PSALM or any change in PSALM’s policy role.”
PSALM is in charge of privatizing the country’s power assets to settle maturing obligations assumed from the National Power Corporation.
Two months ago, PSALM said that it was able to reduce its principal financial obligations by 9.5% by end-2020 compared with the level at the start of the year. It added that it had paid all interests and borrowing costs that matured last year totaling P11.56 billion. — Angelica Y. Yang
NEW YORK —A breathtaking new art exhibit, “Geometric Properties: An Immersive Audio-Visual Journey Through Fractal Dimensions,” drenches viewers in an otherworldly experience at New York City’s (NYC) Chelsea Market.
The installation uses fractals — mathematical equations represented as infinitely repeating patterns. Dutch artist Julius Horsthuis ran the equations through computer software, which then manifested into the art.
“Julius came across fractals while doing research for a separate project and instantly felt a connection with them,” said ARTECHOUSE marketing and communications manager Andrew Albigese. “He was fascinated by how through mathematics, you could take someone on a journey through almost an entirely new world.”
Spectators have said it feels like being inside a kaleidoscope, or “like stepping into a sci-fi world or even being transmitted to a totally new dimension,” said Mr. Albigese.
Mr. Albigese said he was “overwhelmed” by the exhibit himself.
“After over a year of pandemic and for a lot of people being isolated, we need something like this more than ever,” said Mr. Albigese. “Art, for a lot of people, can be an escape or refuge.”
“Geometric Properties” runs through Sept. 6. — Reuters
EAST ZONE water concessionaire Manila Water Co., Inc. said that its water concession deal in Balagtas, Bulacan had been revoked and terminated.
In a disclosure to the stock exchange on Tuesday, the listed water provider said it accepted the decision of Balagtas Water District (BWD) to revoke and terminate the notice of award for the water project.
In April 2018, Manila Water and its wholly owned subsidiary Manila Water Philippine Ventures, Inc., (MWPV) disclosed that it received a notice of award from BWD for a 25-year concession that will implement water and used water projects in Balagtas worth P400 million.
As part of the concession deal, Manila Water was mandated to create a joint venture company together with BWD and MWPV for the project.
The joint venture was supposed to design, construct, rehabilitate, operate, maintain, finance, expand, and manage the water supply system and its water and sanitation services.
According to Manila Water’s previous statement, the water project aimed to provide 22 million liters of water per day to BWD’s customers.
Sought for comment, BWD’s official Facebook page confirmed in a message to BusinessWorld that the project’s notice of award had been terminated.
However, BWD did not specify the reason behind its decision and said it would issue an official statement in the coming days regarding the revocation and termination of Manila Water’s notice of award.
In 2020, Manila Water posted an attributable net income of P4.50 billion, an 18.2% decline year on year, due to lower contribution from its domestic subsidiaries as a result of the pandemic.
The company said its consolidated operating revenues for 2020 dropped 2.4% year on year to P21.13 billion caused by weaker contributions from Estate Water and Boracay Water.
On Tuesday, shares of Manila Water at the stock exchange dropped 0.85% or 12 centavos to close at P14.06 apiece. — Revin Mikhael D. Ochave
WALL STREET is unveiling plans to bring more bankers back in the coming months. — LOLO/UNSPLASH
LESS-CROWDED trading floors, facial recognition systems and split work areas could all become routine for bankers in Singapore as the Southeast Asian financial hub readies for office life in a post-COVID world.
Financial institutions in the city should use more no-touch technology, allow more space for each employee and adopt split teams on trading floors once staff return after the pandemic, according to recommendations from a study commissioned by the city’s banking association and the Monetary Authority of Singapore (MAS) that was published on Tuesday.
Lenders are also being encouraged to use hot-desking, motion detectors, temperature and face-mask detection screening and improved ventilation to avoid potential contamination, according to the report. Staff should be allowed to work from satellite offices or branches in addition to the main headquarters, it said.
Such measures “are imperative to strike a balance between workplace safety and minimizing disruption to business operations,” said the study, which was carried out by real estate consultancy Cushman & Wakefield Plc and some of Singapore’s biggest banks.
CAUTIOUS APPROACH With more than 200 financial institutions operating in Singapore, the city is among global banking centers looking at how to get staff back to the office after they’ve spent more than a year juggling working from home and family life. The city-state has taken a cautious approach to returning staff to offices even as infection rates remain low.
Wall Street has also been unveiling plans to bring more bankers back in the coming months, while employees in Shanghai have been back in the office for months after the Chinese city was the world’s first major center to reopen last year after taming the virus.
The latest recommendations from Singapore envision a workplace that’s geared to switch quickly to a “pandemic-on” mode so that companies can react to future pandemics.
“MAS encourages our financial institutions to consider the recommended strategies in the Playbook to enhance safety and resiliency in the workplace,” MAS Deputy Managing Director Ong Chong Tee said in a statement. “This will be helpful to be well prepared for any situations in future that may require safe distancing and work-from-home arrangements.”
The report also compares Singapore’s approach in managing the pandemic with other major financial hubs like Hong Kong, Shanghai, London, New York and Sydney. It found that the density of its offices is comparable to Sydney, with an average 80 to 120 square feet per seat. That’s more spacious than Hong Kong, where it’s 40 to 100 square feet.
RESHAPING HUBS How financial institutions adapt to a post-COVID world has the potential to reshape business districts in hubs around the world. Already some global banks have said that an embrace of more flexible working will allow them to significantly reduce their property footprint.
HSBC Holdings Plc is predicting a 40% reduction in its property footprint over the long term and Lloyds Banking Group Plc is projecting a 20% cut in office space by 2023. Others are less excited about the idea with David Solomon, chief executive officer of Goldman Sachs Group, Inc. calling remote work “an aberration that we are going to correct as quickly as possible.”
In Singapore, DBS Group Holdings Ltd. is allowing all staff to work up to 40% of their time remotely and has started precautionary measures such as frequent air purging. United Overseas Bank Ltd. will allow about 65% of its 26,000-strong workforce to work remotely two days a week once COVID-19 restrictions are lifted. — Bloomberg
ATHENS —Greek archaeologists have unearthed by chance a more than 2,500-year-old bronze bull idol at the archaeological site of Olympia, the culture ministry said on Friday.
An observant archaeologist came across the mini-statue during work at the site, one of the most celebrated sanctuaries in ancient Greece, the ministry said in a statement.
With one of its horns sticking out of the ground after heavy rainfall, the statuette was found intact, close to the temple of ancient Greek god Zeus at Olympia, the birthplace of the ancient Olympic Games.
It was transferred to a laboratory for conservation.
Archaeologists believe that it was part of thousands of gifts offered to Zeus in the 1,050-700 B.C. period. Bulls and horses played an important role in the lives of ancient Greeks and so were frequently dedicated to the gods. — Reuters
A YEAR into the pandemic, the Philippines is facing another surge in coronavirus disease 2019 (COVID-19) cases, registering new all-time highs in infections. Safety and health concerns commingle with uncertainty, increasing levels of stress and anxiety, as everyone tries to cope with protracted lockdowns.
The coronavirus crisis carries stresses that are both acute and chronic, according to professor and author Brené Brown. “The problem is that a pandemic is both an acutely stressful situation — like a disaster — and a slow unraveling of every one of the systems and rhythms that keeps us tethered to our lives and to each other — family gatherings, faith communities, school, work…,” she said in a September 2020 podcast episode. “It’s like the wind is breaking the windows, and we’re in cleanup [mode] at the same time. It’s too much to ask some days.”
BusinessWorld spoke with five individuals from different backgrounds — a business owner, an employee, a freelancer, a human resources specialist, and a psychiatrist — to see how they are dealing with the crisis, a year since the World Health Organization declared COVID-19 a pandemic.
‘ULTIMATE KILLER’ Stress was identified as the “ultimate killer” in workplace performance at Verman General Services, Inc., a janitorial and messengerial manpower service company. Communication, a remedy.
“We help our employees as much as we can,” said Verman T. Reyes, vice-president for operations, adding that management even offers life advice for those who struggle at work because of family matters.
According to the Department of Trade and Industry, 34.2% of micro, small and medium enterprises (MSMEs) “fully stopped” operations last year. The sector is slowly reopening but the fact remains that millions of Filipinos are unemployed.
Verman considers itself lucky as it remained operational. The company provided free food and transportation for all its employees last year, and continues to provide free transportation at present.
“We accommodate their concerns in person and also over the phone,” said Mr. Reyes, who identified deciding on employee issues — like who to give advances to — as the main stressor in his role as an employer.
“We invest heavily on financial support for our employees because that’s their primary concern,” he said. “At the end of the day, however, you can only do so much.”
To decompress, Mr. Reyes indulges in hobbies like farming and collecting fruit trees. He also reads on topics related to self-development and corporate strategies implementation. “Having support from peers and family helps a lot because I have people to talk to,” he said. “Having healthy family dynamics is very important to mental wellness. Problems are unavoidable but you need to understand the reasons behind them. Clashes happen, but you need to know how to effectively resolve problems.”
JOY IN THE MUNDANE Olay E. Rullan switched jobs during the pandemic because the furloughs implemented caused a spike in her workload. While those who lost their jobs understandably have a lot weighing on their minds, even gainfully employed individuals like Ms. Rullan have not been exempt from the stresses of this period.
“Not being able to go out and about, as well as relatives dying, took a heavy toll on my mental health,” she said. Ms. Rullan was planning to take the rest of the year off, but then got a good offer from TOA Global, an accounting outsourcing firm, where she is now director of enterprise applications.
Given that the first nationwide lockdown was imposed on March 16, 2020, it was fitting that Department Order No. 208 was signed by Labor Secretary Silvestre Bello III the previous month. The order provided the guidelines to employers and workers for “the effective implementation of mental health policies and programs in accordance with RA 11036 or the Mental Health Act.”
“My company implemented counseling sessions for those having a rough time,” said Ms. Rullan, who counts her friends, family, and colleagues as her support system. “Peace is not really elusive when you know where to look for it. After a while, peace [becomes something that’s] found in the mundane things. It’s finding your joy through them.”
OPPORTUNITY IN CRISIS Vanya P. Tantoco, a freelancer who offers digital marketing services, continues to thrive amid the uncertainties of 2020 and 2021.
“I tried freelancing to add an income stream, and it turned out pretty well for me,” said Ms. Tantoco, who took on side projects after the alumni office she was working for cut its budget, leaving her with an extra 20 hours a week. Some of the clients she works with are Yankee Candle Philippines, VNM Naturals (Venus and Mars Naturals), My Easy Therapy, and Tatiomax Glutathione.
“While the world had to pause, I had to move fast to catch up on my digital projects,” she said. “My confidence grew. I had the courage to offer my services to bigger companies and work with a lot more people.” An offshoot of more work, however, is the difficulty of setting boundaries, because her workstation is now open 24/7.
To decompress and calm herself down, Ms. Tantoco does yoga and breathing exercises. She also keeps her communication lines open. “Sending quick chats to people I want to connect with helps. So does engaging with fellow freelancers on Facebook groups,” she said. “Small talk makes a big difference.”
Ms. Tantoco’s advice for freelancers who struggle these days is to focus on honing special skills. “This is important so you can automatically have an edge over other freelancers,” she said. “Keep on practicing and do not lose hope. Find inspiration in others because if they can do it, then so can you.”
HOLISTIC APPROACH An advantage of long-standing companies is the privilege of having insights born out of having gone through multiple crises. Multinational technology company IBM, for instance, has been around since June 16, 1911, and has thus been through a series of global phenomena, from the Great Depression to the great recession. It has a mental health policy that was put in place even before COVID-19 hit the world.
“All sorts of things have led the company to prepare for all sorts of scenarios in the different countries where we have offices,” said Graziella C. de Guzman, country human resources leader of IBM Philippines. “Policies, like the one we have for mental health, get disseminated across our offices. We’re serious about putting an emphasis on a holistic approach for mental wellness.”
Its Philippine office saw a rise in employees seeking professionals to talk to at the start of the pandemic. Individuals needed someone to help explain what they were going through and how they could cope, and staff and their family members utilized the company’s Employee Assistance Program’s (EAP) hotline. The hotline offers professional and confidential support 24/7, and calls to it “increased by 80% as compared to previous years,” Ms. de Guzman told BusinessWorld. Callers are assigned a specific counselor, depending on the nature of concern raised, and can be scheduled for follow-up sessions. Participation is purely voluntary.
The company also came up with a work-from-home pledge that offers support for personal needs and non-“camera-ready” times. It also encourages checking in on people and being kind. “The pledge encompasses all life circumstances, including those living alone or with children. Everyone is asked that they take care of themselves and be with their families first. We put people at the center of our business strategy,” said Ms. de Guzman.
The EAP is supplemented by online activities that enable everyone to reconnect despite the work-from-home (WFH) reality. Examples of such are the concert organized featuring local artist Ebe Dancel last year, plus Halloween and year-end contests. Feedback is solicited from employees to ensure the activities’ success.
Employees are likewise empowered to form events they want to participate in within their teams without having to ask prior permission, said Ms. de Guzman. Support groups, such as those for women and persons with disabilities, are available for those who need it.
Ms. De Guzman said she finds peace nowadays by being mindful, controlling what is within her control, and taking things one day at a time. “Mental health is as important as physical health, and early detection is key. We at IBM do not discriminate.”
THE GREAT RESET Psychiatry is not the specialty that’s first in line in terms of infectious diseases, but it’s first in line in terms of caring for the carers. Dr. Victoria C. de la Llana, lead psychiatrist of Mindcare Club, an online mental health platform, said that frontliners are in need of mental healthcare more than ever.
“In the government hospital where I work, mental health was institutionalized. At the start of the pandemic, not much was known about COVID-19, so going to work was a traumatic experience,” she told BusinessWorld. “Employees are welcome to come in for stress debriefing.”
Dr. De la Llana said that in most of the hospitals she works for, there are always provisions for employees who need mental healthcare. “There are always takers,” she added, “and we stand with them.”
A silver lining of the pandemic was the opening of more opportunities for telehealth platforms. This pressing need for remote medical services in the age of COVID-19 prompted Albay Representative Jose Ma. Clemente S. Salceda to file House Bill No. 7422, or the proposed “Philippine E-Health and Telemedicine Development Act,” last August 2020. The bill will provide for the development of telemedicine as well as regulate the industry.
Mental wellness patients similarly availed of this e-health avenue all throughout the various quarantine measures.
“A number of psychiatrists never stopped working even in the face of a lockdown because there was a need for it. Requests were coming in — and sometimes it wasn’t through professional channels,” Dr. De la Llana said. “Even family and friends would ask for help.” Some of her pre-pandemic patients who weren’t able to come back anymore were supplanted by new ones.
Anxiety and depression are the most common concerns verbalized by her patients. Some were able to elaborate further and said that the things that used to help them through rough patches in the past, such as friends and traveling, have been taken from them.
The pandemic is a long, drawn-out disaster, and some coping mechanisms are not possible now. Dr. De la Llana, who shared that she personally got closer to some friends during this pandemic (“They help keep me sane”), said that it was important to see things as they are — not as they aren’t, and not as one wishes them would be.
“Yes, things are in flux, but it doesn’t mean life doesn’t go on or there aren’t opportunities. It’s like water. When you scoop up water, it just leaves space for more water to come in,” she said.
“Your expectations have to be realistic. You can’t expect the same amount of productivity, because the requirements are different now. Everyday life is different now. Let go of what was pre-COVID. There are so many things we can’t do, so focus on what we can do. It’s the Great Reset, so we can also reset our hopes of how we can have fun and how we do our work.”
How to better manage working from home
Tips from Victoria C. de la Llana, MD, DSBPP, FPPA, lead psychiatrist of mental health platform Mindcare Club.
One thing you can do to feel a bit better is to fix up so you are camera-ready — even if you’re only at home, or even if you have a call that doesn’t require you to turn on your video. This helps because it gets you in the workday mindset. It’s a way to condition yourself.
It’s also recommended to have a home office outside your bedroom whenever possible. Choose the dining table or a corner that is not your bedroom, so that when you leave that space you know you’re “home” again and can relax. It serves as a signal to family members too that, when you’re seated there, you’re working. They’ll know that they have to ask permission first before interrupting you.
Actively reaching out to colleagues is more important than ever nowadays. Find the online equivalent of watercooler conversations or whatever went on in the pantry before. This is important. — Patricia B. Mirasol
OVER a week after its debut, the rate of enrollment for the online submission tool (OST) of the Securities and Exchange Commission (SEC) is “not as high” as the corporate regulator wanted.
“I think we’re averaging [400] to 500 enrollees a day, currently, that’s still far from where we’re looking at,” SEC Commissioner Kelvin Lester K. Lee said in an interview with the ABS-CBN News Channel on Tuesday.
All stock corporations were required by the SEC to use the OST for submissions beginning this year. The corporate regulator said there are around 800,000 regulatees.
Nearly 200,000 of those are nonstock corporations, which were given until 2022 to sign up on the platform.
“Admittedly, that’s why we started early. By starting [on] March 15, we still have a large amount of time before other deadlines come in,” Mr. Lee said.
Report deadlines might be extended for corporations due to the difficulty posed by the pandemic.
“We are looking at possibly extending some of the deadlines for some of the reportorial requirements to give people breathing room,” Mr. Lee said. “But we do encourage people to come in and [enroll] this year as quickly as they can.”
The OST will be used to collect submissions of annual reports, including Annual Financial Statements (AFS), General Information Sheet (GIS), Sworn Statement for Foundation, General Form for Financial Statements, and Special Form for Financial Statements.
For its initial run, an Affidavit of Non-Operation may be submitted with the GIS or AFS. The OST will also accept submissions for Affidavit of Non-Holding of Annual Meeting with the GIS.
The public will be given access to reports through the Online Submission Portal, which is still in the testing phase.
“[It] makes things much easier for everyone to be able to access the data that is publicly available, and which the SEC is the national repository for,” Mr. Lee said.
SEC will be providing OST Kiosks in SEC offices and other areas until Dec. 15 for those who would need assistance with using the new platform.
“I foresee that this will change things, make things much easier for the [corporations] and for ourselves as well, actually,” Mr. Lee said. — Keren Concepcion G. Valmonte
THE HOUSE Committee on Banks and Financial Intermediaries has approved a bill revising the charter of the Development Bank of the Philippines (DBP).
The House panel on Monday approved the committee report on House Bill (HB) 8454 or the proposal on the new charter of the DBP.
The panel’s chair, Quirino Province Rep. Junie E. Cua, said during the hearing: “There is a motion that we approve the committee report on the amended DBP charter subject to style and hearing no objection, the committee report is hereby approved.”
Mr. Cua said the bill will be submitted to the Committee on Rules before it faces plenary debates when Congress resumes sessions in May. Sessions are suspended starting on March 25.
HB 8454’s explanatory note said the amended charter will boost DBP’s mandate to “fuel the growth of the economy.”
The proposed measure seeks to amend the DBP charter by expanding the powers and functions of the state-owned bank through an increase in its capitalization. The bill seeks to increase the bank’s capital stock in compliance with risk-based capital ratio and other risk regulations of the Bangko Sentral ng Pilipinas.
The amended charter will also authorize DBP to engage in traditional and non-traditional modes of financing.
The bank’s charter was last amended through Republic Act No. 8523, which was signed in 1998.
The Senate has yet to file a counterpart bill for the DBP charter amendments. — G.M. Cortez
LONDON —Paintings by Pablo Picasso, Rene Magritte and Joan Miro as well as Banksy’s tribute to Britain’s National Health Service are among a selection of artworks going under the hammer this month at auction house Christie’s 20th Century Art sale.
Held in London on Mar. 23, the auction counts 55 lots, including Picasso’s Femme nue couchée au collier, which has a price estimate of 9 million pounds — 15 million pounds ($12.50 million — $21 million).
Another portrait by the Spanish artist, Femme assise dans un fauteuil noir, is seen selling for 6 million — 9 million pounds.
Other lots include a self-portrait by Jean-Michel Basquiat, Amedeo Modigliani’s Portrait du photographe Dilewski, and Andy Warhol’s Three Self-Portraits.
“It’s all about 20th century art with some 21st century art thrown in as well … The works in the sale are predominantly fresh to market which is what our clients want,” Keith Gill, co-head of the 20th Century Evening Sale, told Reuters.
When asked about the impact of Brexit on art sales in London, he added: “As far as we can tell our sales are going from strength to strength.”
Game Changer by elusive British street artist Banksy and depicting a boy playing with a nurse as a superhero rather than Batman and Spiderman, has a price estimate of 2.5 million — 3.5 million pounds.
The painting, unveiled last year at University Hospital Southampton, paid tribute to the frontline workers of Britain’s National Health Service (NHS) in their fight against the COVID-19 pandemic. Proceeds from the sale will go to the NHS.
Christie’s will also hold its Art of the Surreal auction on the same day.
Highlights include Rene Magritte’s Le mois des vendanges which has an estimate of 10 million — 15 million pounds and Joan Miro’s Peinture, with a price tag of 9 million — 14 million pounds among the 27 lots. — Reuters
The government has made strides towards achieving Universal Health Care (UHC) in the Philippines. It was an achievement indeed when President Rodrigo R. Duterte signed the UHC Law in February 2019. The UHC Act is an integrated and comprehensive law which seeks to provide all Filipinos access to a set of quality and cost-effective care without causing financial hardship. The law also prioritizes the needs of the people who, by economic status, may not be able to afford healthcare services.
Furthermore, the UHC law calls for a whole-of-society approach in the development, implementation, monitoring and evaluation of health policies, programs and plans. This approach calls for private sector collaboration, as the task to provide quality healthcare is too huge for the government alone to handle.
For years, our industry’s commitment to support access to innovative medicines on a universal healthcare platform has always taken center stage. In 2010, we commissioned the Social Weather Stations (SWS) survey on Healthcare Services and Financing to determine the people’s viewpoint on health for all. The results of the national survey prompted us to embark on more than a decade of universal healthcare advocacy, being the more sustainable solution to address healthcare gaps and improve access to health, particularly for the poor. With the wide-reaching impact of the coronavirus disease 2019 (COVID-19) pandemic on the health system and the people, we believe that it is time to realize the promise of Universal Healthcare.
The UHC Act considered the success and experience of other countries, especially in making medicines accessible. Countries such as Thailand, Australia, and the United Kingdom have UHC systems in place. These countries employ price negotiation mechanisms that are linked to volume to give the government the leverage to lower medicine prices. As a result, these governments are able to bring down prices, subsidize more needed medicines, and provide greater access to more patients in need, significantly reducing the out-of-pocket spending for their citizens.
Inspired by these international experiences, the country’s UHC Act also has provisions that could make medicines more accessible for Filipinos. Under the country’s UHC Law, it established an independent price negotiation board composed of representatives from the Department of Health (DoH), the Philippine Health Insurance Corporation (PhilHealth), and the Department of Trade and Industry (DTI) to negotiate medicine prices on behalf of the DoH and PhilHealth. This price negotiation board will specifically consider new technologies, innovator medicines, and those sourced from a single supplier. Oftentimes, these are medicines and technologies that have undergone extensive research and development and therefore have scientific evidence of bringing significant improvement in life expectancy or quality of life of patients.
Apart from the price negotiation board, the UHC Act also established the Health Technology Assessment (HTA) process, which systemically evaluates the social and economic benefits of medicines and technologies. The HTA process, according to the UHC Act, must be institutionalized as a fair and transparent priority-setting mechanism for the development of policies and determination of benefit packages for Filipino patients. The HTA Council has been formed to conduct the assessment of these new technologies and medicines vis-à-vis the value they bring to the patients and public health.
In the paper, it stated: “it [government] should expand the pooled procurement of medicines to attract more suppliers in the market. Such action gives the public sector leverage in getting medicines prices further down. The government can then distribute the medicines it procures to the poorest population who do not even have the purchasing power to acquire medicines even at reduced prices.”
The country has had successful experiences in medicine price negotiation and pooled or volume procurement. For example, DoH lowered prices of cancer drugs by up to 74% when it negotiated on the basis of volume. PhilHealth, on the other hand, also lowered the price of a kidney transplant drug by 50% through negotiation. The price was even the lowest compared with countries such as the UK, Canada, Thailand, Malaysia, Vietnam, and Indonesia.
Apart from PhilHealth, the Philippine Pharma Procurement, Inc. (PPPI) under the DTI also has the mandate to gather medicine requirements, negotiate and procure on behalf of the government. The PPPI, too, has its share of successful pooled procurement experience for innovator medicines.
The World Health Organization (WHO) explained that pooled or volume procurement combines several buyers into a single entity that purchases on behalf of the buyers. Due to larger volumes in pooled procurement, there is generally a lower price, a function of economies of scale. The Global Fund, meanwhile, said that such a mechanism provides access to competitive market terms and prices and eliminates procurement and delivery delays. Negotiations also open the doors for the entry of innovative medicines, unlike price regulation.
Two years since the UHC Law was enacted, provisions that would make medicines accessible and affordable have not been fully implemented. The rollout of such provisions will effectively transform the government to become the key purchaser of medicines and health services, drive up volumes with pooled procurement, negotiate and agree on reasonable prices, and make medicines accessible especially for patients disadvantaged by poverty and the pandemic. It is, therefore, time to fulfill the UHC promise to make medicines accessible once and for all.
Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP and its member companies represent the research-based pharmaceutical sector in the country.
JOLLIBEE Foods Corp. (JFC) will provide free vaccines to all its employees in the Philippines, its owner said on Tuesday.
“Our employees’ safety and well-being has always been paramount,” said Tony Tan Caktiong, chairman of the Jollibee group of companies, said in a statement.
The vaccination program will cover employees from the company’s various food brands, including Jollibee, Chowking, Mang Inasal, Greenwich, Burger King, Red Ribbon, Panda Express, and PHO24.
Employees from JFC’s commissaries, distribution centers, support functions, and Jollibee Group Foundation will also be covered by the program.
JFC said it is also sourcing vaccines for their employees’ dependents and extended family, as well as other household members.
“Communication efforts like a series of webinars on vaccine education have been started to help employees make informed decisions on their health,” the company said.
The company’s vaccination plans will be adopting the guidelines of the government’s coronavirus disease 2019 (COVID-19) task force and the Department of Health to support the country’s national vaccination program.
“Once the vaccines are available, the company will coordinate with local government units to optimize the available supply of vaccines,” the company added.
JFC incurred a net loss of P11.5 billion in 2020 due to the impact of COVID-19 in various store operations. According to a previous disclosure, operations in four commissaries and some 486 stores were permanently halted last year.
The company has since launched a business transformation program to rationalize operations amid the pandemic.
JFC shares at the stock exchange rose by 2.9% to close at P181 apiece on Tuesday. — Keren Concepcion G. Valmonte
