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Peso to rise on hopes of eased quarantine

THE PESO could bounce back against the greenback this week on hopes that more businesses could reopen by March.

The local unit ended trading at P48.451 per dollar on Friday, barely changed from its P48.50 close on Thursday, data from the Bankers Association of the Philippines showed.

Week on week, however, the peso shed 40.6 centavos from its finish of P48.045  per dollar on Feb. 11.

The peso’s slight appreciation on Friday was backed by the slight easing in the spike in global oil prices in the latter part of the week amid a supply disruption in Texas, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Reuters reported that pump prices were down from Thursday to Friday as energy companies in Texas position to restart their operations that were shuttered by freezing weather and power outages.

Brent crude futures dropped $1.02 or 1.6% to $62.91 per barrel while the US West Texas Intermediate (WTI) crude inched down by $1.28 or 2.1% to settle at $59.24. However, both the Brent and the WTI prices cumulatively gained 0.5% and 0.7% for the whole week.

Analysts estimated that up to 4 million barrels per day of crude production and 21 billion cubic feet of natural gas were slashed due to the disruptions caused by the extreme weather in Texas.

For this week, Mr. Ricafort said the market will watch out from the government’s decision on whether a further reopening of the economy could be possible by March.

He said a decision on the restriction measures could be given by President Rodrigo R. Duterte during his Monday briefing.

Members of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases agreed to recommend putting the entire country under modified general community quarantine (MGCQ), which is the least restrictive lockdown level, Presidential Spokesperson Herminio “Harry” L. Roque, Jr.  said on Friday.

Most provinces in the country are already under MGCQ, with only areas such as Davao, Iligan, Tacloban, Batangas, Lanao Del Sur, the Cordillera Administrative Region, and Metro Manila still under the slightly tighter general community quarantine.

Meanwhile, a trader said peso-dollar trading will be affected by the expected release of the Bureau of the Treasury’s December cash operations report on Friday.

Finance Secretary Carlos G. Dominguez III earlier said the government’s budget deficit hit P1.36 trillion or about 7.5% of the gross domestic product (GDP) in 2020 as revenues slumped while spending increased due to the pandemic. This is more than double the 3.4% deficit-to-GDP ratio seen in 2019.

For this week, Mr. Ricafort gave a forecast range of P48.25 to P48.55 per dollar while the trader expects the local unit to move within the P48.30 to P48.50 band. — L.W.T. Noble with Reuters

PSEi seen to rise on likely easing of restrictions

STOCKS are expected to climb this week as the market anticipates the possible easing of quarantine restrictions and updates on the national vaccine indemnification fund.

The benchmark Philippine Stock Exchange index (PSEi) went down by 76.77 points to close at 6,926.41 on Friday from its 6,991.01 close on Feb. 11.

The market’s average turnover increased by 21.93% last week to finish at 15.07 billion.

“The market ended the week lower mainly due to the delayed vaccine rollout, contrary to the expected start by [mid-February].” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a Viber message on Friday.

Investors are waiting for the finalization of the country’s vaccine indemnification fund, which delayed the start of the government’s inoculation program.

The proposed COVID-19 Vaccination Program Act will not hold vaccine manufacturers liable for any negative side effects caused by the vaccine. It also seeks to provide a P500-million indemnity fund to compensate vaccine recipients affected with unforeseen side effects.

“Market was on downward consolidation this past week with reports of no substantial economic gain this year, with [the Philippines] among the highest COVID-19 infection rate in Asia at more than 1,500 daily [cases], while Chinese investors [were] still on [the] sidelines celebrating the New Year festivities,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Saturday.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said investors were also wary due to the increased seismic activities of Taal Volcano.

Earnings reports of companies may affect market movement this coming week, analysts said.

“With the market rebound [on Friday] on bargain hunting as sentiment improved on preparation for vaccine rollout and the possible further easing of restrictions, market may further recover going [through] this week with Chinese investors coming back from vacation after New Year celebrations plus release of earnings of different listed companies seen better than 3Q 2020,” Diversified Securities’ Mr. Pangan said.

He expects the PSEi to move between 6,800 to 7,160 this week.

“[This] week, [investors] will take the lead of foreign flows following the MSCI rebalancing,” Regina Capital’s Mr. Limlingan added.

Meanwhile, AB Capital Securities’ Mr. Soledad said the market would close at 7,200 at best.

“[We] expect the index to hover between 6,800 to 7,200 as investors monitor developments regarding the indemnification fund, as well as the final decision if the whole country will be put under [modified general community quarantine],” he said.

President Rodrigo R. Duterte is expected to make a decision on quarantine restrictions this week. The country’s COVID-19 task force last week recommended the easing of the lockdown in the National Capital Region to increase economic activity. — K.C.G. Valmonte

COVID-19 vaccination: What we can learn from the great polio vaccine heist of 1959

We find ourselves at a precarious time in global health. Many people are anxiously awaiting their turn to receive a vaccine for COVID-19, yet roll-out is slow and disorganized, with many countries facing supply shortages.

The conditions are ripe for opportunists to exploit the situation. Reports of unethical line-jumping by wealthy elites have started to surface, while others warn of the potential for a black-market trade in vaccines.

This isn’t the first time people have waited anxiously for a vaccine. The looking-glass of history reveals the uneasiness of emotion that accompanies moments like these, as well as the dark consequences that can arise when evil-doers take advantage of them.

One case in particular stands out as an important lesson for today: when thousands of vaccine doses were stolen by armed men during a supply shortage in 1959.

It was the summer of 1959, when the last great epidemic of poliomyelitis swept across Canada. Québec saw the most cases that year, with the newspapers reporting over a thousand cases and 88 deaths.

Although the health authorities in Montréal warned the public about the seriousness of the summer epidemic, they also begged the populace to remain calm. This was far from comforting for parents who feared for their children.

Polio infection could cause permanent paralysis and was deadly in five per cent of cases. Montréalers rushed to the vaccine clinics, sometimes waiting for hours in the rain.

Vaccine production in Canada was limited to only two laboratories, with the majority being provided by Connaught Labs at the University of Toronto. This put intense pressure on vaccine supplies and Québec, like the rest of North America, soon faced a vaccine shortage.

By August, Montréal was waiting desperately for more vaccines. It was a great relief when a huge shipment of the cherry-red vials arrived from Connaught Labs at the end of the month. The supply was enough to cover the city, and the surplus was planned for redistribution across the province.

Yet the redistribution never came to pass. One man by the name of Jean Paul Robinson, a temporary vaccine worker, had found the circumstances too enticing. Robinson had been tasked with running vials between the various clinics. He knew there was a shortage and that people were desperate. He also knew where the main supply of vaccine was stored: at the Microbiology Institute in the University of Montréal.

At 3 a.m. on Aug. 31, 1959, Robinson and two accomplices broke into the university armed with revolvers. They first locked the night guard in a cage with 500 lab monkeys. The thieves then broke the lock on the massive refrigerator, looted all the cases of the vaccine and stole the guard’s car as the getaway vehicle. In the end, they made away with 75,000 vials, valued at $50,000 (equivalent to almost $500,000 today). Robinson rented an empty apartment building and stashed his prize.

The crime shocked the country. The next day, the city announced it had completely run out of its vaccine supplies. Reporters seized on the situation, publishing reports of desperate mothers turned away from vaccine clinics in vain.

The provincial police were called in, and a special four-man team of investigators was assembled. They began by interviewing the hapless night guard. He couldn’t identify the culprits — who had been wearing nylon leggings over their faces — but he did overhear them speak about transporting the vaccines. The conversation provided the only lead: it seemed that at least one of the men had been “familiar with medical terms.”

The police soon brought in a medical student for questioning. By the next day, they had seized a supply of fresh vaccine from the shelves of a Pont-Viau drug store. The confiscated vials displayed the same serial number as the missing supply. Yet questioning both the medical student and the druggist led the police nowhere, and over the next few days, all leads ran dry. Worse yet, it seemed that the city was facing an upswing in infections, with another 36 patients admitted to hospital.

Meanwhile, Robinson was trying to figure out what to do with his ill-gotten supply of vaccine. Keeping the product cold was a difficult task — if left unrefrigerated for too long, the vaccine would be useless. He filled the refrigerator (saving one shelf for beer), while the rest of the cases were simply left on the floor at room temperature. Although he had been lucky to sell 299 vials for a tidy sum of $500 to the druggist at Pont-Viau, dispensing with the rest of the vaccine was too risky.

Taking a chance that the police were more interested in recovering the vials than catching the culprit, Robinson placed a call to the public police line. Posing as a concerned citizen, he declared that he had seen a large amount of suspicious cases labelled “Connaught Laboratories” being loaded out of a car on St. Hubert Street in the East End.

The police quickly discovered the missing cases of vaccine, but before they could be used, the vaccines would need to be tested thoroughly. This process could take up to two months, meaning the vials could not be used despite the epidemic. Fresh shipments of the vaccine were not planned to arrive for a few more weeks.

The public met the outcome of the investigation with outrage, with the Montréal Star going so far as to speculate that the police had made a deal with the guilty parties in order to recover the vaccine. Truly, it declared, “in the history of justice in Canada, this case must be unprecedented.” The stolen vaccines were eventually cleared for general use in October.

For their part, the police were far from done investigating. They soon turned their attention to identifying the culprit. They discovered that the man who had provided the police tip was also the man who had sold the Pont-Viau druggist his 299 vials. Evidence continued to mount against Robinson when the janitor of the apartment building identified him. After denying all charges, Robinson fled. He was discovered three weeks later hiding out in a small shed on an “isolated backroad farm.”

Prosecuting Robinson turned out to be a much harder task, and the case eventually fell apart. Although one of his accomplices had originally identified Jean Paul Robinson as the mastermind of the heist, when the trial came around two years later, the witness recanted his original statement (he would later be charged with perjury).

Robinson himself proved imperturbable during courtroom interrogations. He painted himself a public-spirited citizen who had simply tried to “retrieve” the stolen vaccines from the true criminal mastermind: a mysterious man by the name of Bob. Robinson claimed that Bob had set the whole thing up before he had disappeared and escaped justice. The judge eventually ruled that although Robinson’s story was “strange and a little far-fetched,” in the end, “the Crown had not proven a case beyond a reasonable doubt” and he was acquitted.

As millions of people worldwide anxiously await the distribution of the COVID-19 vaccines, this case warns of the possible consequences of disorganized and poorly planned vaccine programs. Those looking to profit from mistakes, shortages and desperation are out there, and it is important that policy makers keep this in mind as vaccination programs are rolled out. – Reuters

Biden’s first month was a ‘honeymoon,’ but bigger challenges loom ahead

WASHINGTON – One month into the job, President Joe Biden is on the cusp of securing a bigger economic rescue package than during the 2009 financial crisis. He has wiped out his predecessor Donald Trump’s policies from climate change to travel bans, while the U.S. daily COVID-19 vaccine distribution rate grew 55%.

That may have been the easy part.

The White House’s broad strategy – avoid unwinnable political fights, focus on policies with mass voter appeal, and mostly ignore Republican attacks – will be increasingly difficult in the months ahead, Democrats and Republicans say, even as millions more are vaccinated and the economy rebounds.

“They’ve got some problems right around the corner,” said Jim Manley, once a top aide to former Democratic Senate Majority Leader Harry Reid.

Mr. Biden has made many of the changes he has clear authority to do by executive action. Landmines going forward include pushing laws on which the Democratic Party is divided, such as college debt relief, tax hikes and curbs on the energy industry.

Then there are the intractable policy fights that have defined American politics for a generation, including who can become a citizen, how easy it should be to vote, whether the government should pay for healthcare, and who should carry a gun.

Meanwhile, many tricky issues, from trade tariffs to China policy to tech oversight, are still under review at the White House.

 

DEMOCRATS UNITED?

Democrats are working to pass their economic stimulus package with or without Republican support before a critical mid-March deadline when expanded unemployment insurance expires.

The bill only needs a majority vote, because it will be passed as part of a process called reconciliation, but that requires every Democrat to side with the White House. Doubts are growing that the bill will include a provision raising the federal minimum wage to $15, which would sorely disappoint liberal Democrats.

“I’ve been shocked at how disciplined the Left has been; I’m not sure how much that’s going to last,” Mr. Manley said. “I can see there’s some fissures developing.”

Those cracks were on display when some Democrats, including Representative Alexandria Ocasio-Cortez of New York and Senator Elizabeth Warren of Massachusetts, criticized Biden after he said told a Feb. 16 CNN town hall he disagrees with members of his party who want to forgive $50,000 in student debt.

A comprehensive White House-backed immigration bill unveiled on Feb. 18 is not expected to pass the Senate; the second-ranked Democrat, Dick Durbin, is among those suggesting a less-ambitious effort that focuses on immigrants brought to the United States as children.

Republicans are reshuffling after the Trump years, said Paul Shumaker, a Republican strategist behind Senator Thom Tillis’ hard-fought re-election in North Carolina.

Biden could unite them by overreaching on taxes and spending, he noted, while doing too little on these issues will disappoint some of his Democratic base.

“He’s enjoying a honeymoon period, but everyone knows that honeymoon’s going to come to an end,” Shumaker said.

 

ELUSIVE REPUBLICAN SUPPORT

White House aides say the policy agenda they plan to push in the coming months has bipartisan voter appeal, and they believe Republicans in Congress could ultimately be forced to support it by their constituents.

“Is he going to be focused on winning every last Republican over? No, of course not,” said White House communications director Kate Bedingfield, a longtime Biden confidant.

“But is he going to reach out and speak to people on both sides of the aisle – is he going to work to put forward plans that meets the needs of people of both parties – yes, he absolutely is.”

Mr. Biden’s early polling numbers suggest that will be a challenge. Some 56% of Americans approve of his performance as president, according to a Reuters/Ipsos poll conducted in mid-February, but just 20% of Republicans.

The White House’s bipartisan hopes lie in an infrastructure plan, still in the embryonic stages of development, that is expected to exceed the scale, scope and price tag of the roughly $1.9 trillion stimulus bill.

The measure is almost certainly going to both expand the deficit and require some tax increases, measures expected to spur opposition. It is likely to be peppered with measures on climate change, and could also include Biden’s proposed subsidies for college, according to several people briefed on early conversations.

Putting the pieces together will be tough without a full senior staff, including Biden’s pick for budget director, Neera Tanden, whose confirmation has run into Democratic opposition from Senator Joe Manchin, who also opposed including the minimum wage in the stimulus bill.

Nonetheless, the Left’s expectations for Biden remain high.

“The administration came out bold and strong,” said Luis Hernandez, a youth gun violence prevention activist who met with senior administration officials last week. “There’s much more to be done.” – Reuters

Transport dep’t expects 65 railway contracts awarded by 2022

THE number of rail contracts to be awarded by the Department of Transportation (DoTr) is projected at 65 by 2022, more than double the current level.

“From just eight awarded contracts in 2006, the DoTr Railways Sector currently has 32 contracts, which will increase to 65 by the end of 2022,” the department said in a statement Saturday.

Transportation Secretary Arthur P. Tugade and DoTr Railways Sector officials met with consultants and contractors Friday to discuss the processing of their payment claims.

The department said it is committed to “uphold its obligations to pay” the consultants and contractors “as quickly and efficiently as possible.”

“But in order to do so, they must submit their billings on time,” it added.

Ten process innovations for the claims system were presented during the meeting to facilitate “effective and efficient programming, monitoring, and processing and to support responsible, responsive, and transparent budget management, most especially due to the scale of railway projects under the ‘Build, Build, Build’ program,” it said.

Among the DoTr’s consultants and contractors in the railways sector are OCGlobal JV, Shimizu-Fujita-Takenaka-EEI JV, J-Trec and Sumitomo JV, China Railway Design Corp. and Guangzhou Wanan Construction Supervision Co. (CRDC-WACC), China Harbour Engineering Co., Shimizu Corp., Mitsubishi Corp., Erigphi JV, Inc., CMX Consortium, Foresight-Soosung JV, DMCI, Marubeni-DMCI Consortium, Westrax JV, Sumitomo Corp., Oriental Consultants Global Co., Ltd. and Tonichi Engineering Consultants, Inc., BF Corp. and Foresight Development Surveying Company Consortium, Metro-Link JV, NSTren, Taisei-DMCI JV, Sumitomo Mitsui Construction Co., GCR Consortium, Hyundai-Megawide-Dongah JV, Acciona-Daelim JV, ITD, Acciona-EEI JV, and POSCO.

DoTr Undersecretary for Railways Timothy John R. Batan said last week that the government is expected to have built up a railway project pipeline of P1.7 trillion by its last year in office in 2022.

He said 91% of the projects will be funded through foreign loans or official development assistance, with P1.548 trillion provided by bilateral and multilateral partners Japan, the Asian Development Bank and China.

The P8-trillion ‘Build, Build, Build’ flagship program allocates about 21.7% to railways, 42% to other transportation infrastructure projects, 12% to water projects, 13% to social infrastructure, and the rest to power, information technology, government buildings and other works. — Arjay L. Balinbin

PHL regulation seen favorable for digital payments growth

THE regulatory environment in the Philippines will help accelerate the entry of more digital banks and payments companies, helping the country rise from low penetration rates in a region where the potential market is projected at $1.5 trillion, JP Morgan said.

In a report, the bank said regulatory frameworks for digital banking and payments are particularly advanced in the Philippines and Singapore, raising concerns for traditional banks.

“These are likely to drive the accelerated entry of digital banks, which could lead to concerns around market share for incumbents,” the report said.

“In this regard, large banks which are able to move faster in building digital offerings will gain a lasting edge,” it added.

JP Morgan’s $1.5 trillion regional market estimate covers the so-called ASEAN 6, six of the 10-member bloc’s largest economies — the Philippines, Indonesia, Thailand, Singapore, Malaysia, and Vietnam.

The Bangko Sentral ng Pilipinas (BSP) issued its digital banking framework in November, recognizing a category distinct from traditional, branch-heavy lenders such as commercial, thrift, rural and Islamic banks.

BSP Deputy Governor Chuchi G. Fonacier said the central bank has received the first formal application for a digital bank license, which she partially identified as a partnership between domestic and foreign companies.

Currently, ING Bank-NV Manila and CIMB Bank Philippines are offering no-branch banking services centered on apps, offering high deposit rates as a main draw.

Only 29% of Filipino adults have accounts with formal financial institutions, which would translate to an unbanked adult population of about 51.2 million. The main obstacles to opening accounts are lack of funds and stringent Know-Your-Customer requirements in place at banks, pointing to gaps in basic documentation such as identity cards.

By 2023, the central bank has set a target of 70% of the adult population in possession of bank accounts.

Apart from online banks, the payments industry can also tap the growing market, JP Morgan said.

“All the companies compete for scale and… payments have the highest usage frequency in online financial services. This is key to enhancing user stickiness and developing cross-selling opportunities,” JP Morgan said.

Online payments accounted for 10% of the total volume of transactions in 2018, improving from 1% in 2013, according to estimates by the Better than Cash Alliance. By value, online transactions accounted for 20% of the total in 2018 from 8% in 2013.

The BSP has set a target of 50% of payments by volume and value to be made digitally by 2023, and is banking on the pandemic to be a catalyst for achieving this. — Luz Wendy T. Noble

PHL’s trade privileges with UK underused, exporters say

EXPORTERS said the Philippines’ trade privileges with the UK are currently underutilized, and urged businesses to tap the opportunities for duty-free export to that market.

After the UK exited the European Union (EU), it implemented its own Generalised Scheme of Preferences (GSP) to mirror the EU’s GSP+ scheme. The UK has said that its own GSP scheme replicates the same level of access as the EU scheme.

The Philippines currently enjoys duty-free entry to the EU for up to 6,274 products under GSP+, which is set to expire at the end of 2023.

“Filipino exporters are encouraged to avail more of the Philippines’ UK GSP beneficiary status. UK government statistics show that the Philippines lags behind other beneficiary countries in GSP imports and utilization rate,” the Philippine Exporters Confederation, Inc. (Philexport) said in a statement Friday.

Philexport said exporters should familiarize themselves with the UK GSP process, including checking whether a product is eligible for the trade perks.

Qualifying for the scheme involves the submission of a statement of origin on a specific UK GSP form, certifying that the products come from an eligible country. The UK does not accept the EU Registered Exporter System statement of origin.

According to Philexport, the UK Department for International Development said that there will be no policy changes to the GSP this year, but potential changes will be announced in the coming months.

The Philippines exported $404 million worth of goods to the UK last year, down 20% and representing 0.6% of total goods exports, according to the Philippine Statistics Authority. — Jenina P. Ibañez

Patented tech now eligible for incentives under Investment Priorities Plan

THE latest Investment Priorities Plan (IPP) now recognizes as eligible for incentives any projects that facilitate the entry of patented technologies into the market.

The Board of Investments on Feb. 9 signed the implementing guidelines of the 2020 IPP approved by President Rodrigo R. Duterte last year.

The plan, detailing which industries can receive tax incentives, includes projects addressing the coronavirus disease 2019 (COVID-19).

Patented products and services that have not yet been commercialized can now also receive incentives under the new plan.

Patented inventions and utility models or industrial designs registered with the Intellectual Property Office of the Philippines (IPOPHL) qualify if they have not yet delivered economic returns via licensing or sale, IPOPHL said in a statement Sunday.

IPOPHL Director General Rowel S. Barba said that the inclusion will help improve intellectual property filings with the office.

“We will continue work in adding more intellectual property-generating activities in the next IPPs. We hope we can succeed so we can drive more socially relevant and industrially useful intellectual property products and processes into the market,” he said.

Commercialization of patents falls under the “innovation drivers” category of the IPP, which includes research and development and the creation of business incubation hubs and innovation centers.

Innovation and Technology Support Offices (ITSO) or universities and research centers that partner with IPOPHL count as innovation centers.

“An ITSO offers access to patent and scientific and technical databases, assistance in using patent databases, training in patent claim drafting and advice on intellectual property management,” IPOPHL said. — Jenina P. Ibañez

Why boards of private businesses must prioritize cybersecurity

Imagine getting a frantic call from your head of IT. Your accounting personnel have reported that they have not been able to access your accounting system, and that they have been working on the issue for several days now. You have been the target of a cyberattack, resulting in the loss of many records.

This situation is not uncommon. Over the past year, we have seen a significant rise in similar attacks that have been targeting private, and generally smaller organizations. These attacks, while less sophisticated than the well-publicized bank heists and the government-backed intrusions into key infrastructure, make up a large portion of the cybersecurity issues that threaten organizations. They need to be managed.

INCREASINGLY MOBILE WORKFORCE
The current pandemic has changed the way people work almost literally overnight. Businesses temporarily closed their doors, and in-office employees instantly became a virtual workforce. This change has boosted online interaction, opening up companies to increased risk. In some cases, employees have taken matters into their own hands because of the perceived inflexibility of in-house IT organizations. Many have turned to cloud-based, usually consumer-grade digital solutions that they have grown accustomed to in their personal lives. In-place cybersecurity controls and protocols are being tested like never before, while threat actors are exploiting this new work environment and intensifying their activities.

Dealing with cybersecurity in smaller organizations is oftentimes not easy. There usually isn’t a technical solution that would fix all issues and keep attackers out. More often than not, the solution is a painful process of educating users of what and what not to do, or upgrading an old system so that it can be appropriately supported by current vendors. However, these protocols and reminders are usually things that most board members and employees alike have grown tired of hearing about.

A recent EY survey (conducted prior to the pandemic) of over 1,100 private company leaders, revealed that only 17% of those polled had made or planned on making significant investments in technology to reduce risk, including cyber risks. Additionally, 50% feared the reputational or operational disruptions caused by cyberattacks even as they began to invest in digital solutions. This is further exacerbated by the mindset of many smaller private organizations that do not pay particular attention to cybersecurity concerns until it’s too late.

Since embedding a culture of cybersecurity in an organization needs to flow from the top, boards need to be more vigilant with their oversight of cybersecurity risks in today’s new work reality. They should consider the following questions:

• With increased remote access, how is the company’s overall cybersecurity posture being optimized, and is the company evaluating whether additional technology and operations are secure?

• Has management reviewed and tested all security features (e.g., point-to-point encryption, data protection) associated with the company’s videoconferencing tools, including patching, and are vulnerabilities mitigated if patches are not available?

• What changes have been made to security monitoring procedures given the increase in remote workers? Are changes to user accounts with administrative or privileged access being more vigorously monitored?

• Are security personnel effective while working remotely? What physical (in-person) security requirements are not being performed?

• What are the contingency plans if key IT or security personnel require time off?

• How is management maintaining an effective incident response and recovery function considering the need for additional remote access technology and operations?

• Are there additional needs for software, technology, personnel or other resources to augment existing controls?

• Are system updates and patching current?

• Are employees reminded of security awareness protocols because of the increased risk of COVID-19 phishing e-mails or similar tactics?

• Is management communicating with critical suppliers to determine if they are evaluating additional steps to assess and protect their networks?

• Are incremental insider threats being evaluated, including revising print-from-home capabilities?

• What security risks might there be that are related to employee layoffs and furloughs? Are the human resources and IT security teams aligned so that user-access privileges are immediately removed?

• How is the IT security function affected if furloughs or budget cuts are executed or contemplated?

• Should the company’s security personnel review or update board members and C-suite home networks for appropriate security?

Cybersecurity in this unprecedented new work environment is an enterprise-wide concern that critically requires board mandate, support and oversight. The board needs to set the tone and the urgency of cybersecurity enhancements and preparation. As widespread remote working and increased online interactions become the new business “normal,” companies will need to reimagine and reinvent their business models.

A company’s ability to adjust and strengthen its cyber resiliency in response to the dynamics of this health crisis will position the entire organization for a more secure future as new and varied challenges arise.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views reflected in this article are the views of the author and do not necessarily reflect the views of SGV, the global EY organization or its member firms.

 

Carlo Kristle G. Dimarucut is a Consulting Partner of SGV & Co.

Lawmakers start debates on Charter change

PHILIPPINE lawmakers will start debating in plenary on Monday proposed changes to economic provisions of a three-decade-old Constitution supposedly to attract foreign investment and help the economy recover amid a coronavirus pandemic.

“This is scheduled for sponsorship and debates tomorrow,” Party-list Rep. Alfredo A. Garbin, Jr., who heads the House of Representatives committee on constitutional amendments, said in a mobile phone message on Sunday.

The House body this month adopted a resolution allowing Congress to lift restrictive economic provisions of the 1987 Constitution.

Lawmakers agreed to insert the phrase “unless otherwise provided by law” in parts of the Charter that limit foreign ownership in certain Philippine industries, according to a statement posted on the House website.

This will allow Congress to pass a law later relaxing ownership limits.

Lawmakers agreed not to touch a section of the basic law that bars foreigners from owning land, the House said.

The changes will be made under three articles on the national patrimony and economy; education, science and technology; and general provisions, for a total of seven changes.

The voting coincided with the 34th anniversary of the ratification of the 1987 Constitution, which Mr. Garbin described as a “living Constitution” that is “far from being perfect.”

Mr. Garbin said congressmen would avoid touching any political clauses of the Charter that critics fear they might use to favor incumbent officials before the general elections next year.

Only the provisions on foreign equity would be revised, he said

The six-year term of President Rodrigo R. Duterte, who is barred by law from running for reelection, will end in 2022.

Plenary debates on constitutional changes had been postponed several times. Mr. Garbin earlier said he expects the debates to breeze through the House.

Speaker Lord Allan Q. Velasco, who authored the resolution, wants to liberalize the economic restrictions in the Charter and let Congress enact laws that will free up the economy to foreign investors.

Mr. Velasco said foreign investment plays a crucial role in the Philippine economy by supporting domestic jobs and creating physical and knowledge capital across a range of industries.

The Speaker last week said his resolution was backed by all major political parties and power blocs in the House.

Lawmakers who voted no said Charter change was “ill-timed” and would affect Filipino businesses.

Party-list Rep. Carlos Isagani T. Zarate has noted that if Charter change starts now, foreigners would gobble up what is left in the country’s liberalized economy.

But the House said lifting foreign investment restrictions could improve foreign direct investment inflows (FDI), particularly in restricted sectors.

Easing the restrictions could lead to an additional average annual FDI of P330 billion pesos ($6.8 billion) and generate 6.6 million jobs over 10 years, it added, citing Bicol Rep. Jose Maria Clemente S. Salceda.

Party-list Rep. Michael Edgar Y. Aglipay, one of the House leaders involved in the preparation for “Cha-cha” hearings, earlier said lawmakers would not try to change political provisions of the Constitution.

He said they wanted to form a constituent assembly by the end of the month. A plebiscite for proposed changes could coincide with the presidential elections in May 2022, he added.

Opposition senators last month thumbed down the fresh Charter change push at the House, saying it was likely to fail and waste lawmakers’ time.

Senator Franklin M. Drilon said Charter change has a zero chance of success in any administration that is already in the home stretch. President Rodrigo R. Duterte’s six-year term will end next year. He is barred by law from running for reelection.

Senator Francis N. Pangilinan, who heads the committee on constitutional amendments, had also questioned the timing of the Charter change push.

Harry L. Roque, Mr. Duterte’s spokesman, has said Charter change is the last thing on the President’s mind, adding that Mr. Duterte would rather focus on battling the coronavirus pandemic.

Senate President Vicente C. Sotto III earlier said Charter amendments would have a better chance of hurdling the chamber if these are limited to changing the party-list system and easing economic restrictions. — G.M. Cortez

16 of 18 more people with new variant got well, DoH says

By Vann Marlo M. Villegas, Reporter

PHILIPPINE health authorities have detected 18 more people infected with a more contagious coronavirus variant, 16 of whom had since recovered, according to the Department of Health (DoH).

This brought the total cases involving a variant first detected in the United Kingdom to 62, DoH said in a statement on Sunday.

Thirteen of the 18 were returning overseas Filipinos who arrived from Jan. 3 to 27. “All of these cases are now tagged as recovered and the DoH is currently investigating compliance with isolation protocols and the contact-tracing done for these returning overseas Filipinos,” it added, referring to the migrant workers.

Three more patients that had also recovered came from the Cordillera Administrative Region, two of whom were 12-year-old boys connected to the cluster in Samoki, Bontoc in Mountain Province. The other was a 41-year-old woman connected to the cluster in La Trinidad, Benguet.

Close contacts of the three had completed quarantine, the agency said. DoH was still verifying where the two other cases came from.

Meanwhile, DoH said three samples from Central Visayas were found to have both the two coronavirus mutations — N501Y and E484K — bringing the total samples with the mutations to 34.

They will submit their findings on the new mutations to the World Health Organization and Global Initiative on Sharing All Influenza Data to help track and study the genome changes in the virus.

It called on local governments where the mutated variant had been detected to implement preventive, detection, isolation and treatment measures.

DoH on Friday disclosed the detection of mutations of “potential clinical significance” in samples from Central Visayas. It said available data were insufficient to conclude that the mutations found in the local samples would have “significant public health implications.”

It noted that viruses normally mutate as they reproduce, but not all mutations and variants “necessarily cause negative effects.”

DoH reported 1,888 coronavirus infections on Sunday, bringing the total to 561,169. The death toll rose by 20 to 12,088, while recoveries increased by 9,737 to 522,843, it said in a bulletin.

There were 26,238 active cases, 87.3% of which were mild, 6.1% did not show symptoms, 3% were critical, 2.8% were severe and 0.91% were moderate.

The Department of Health said seven duplicates had been removed from the tally, while 12 recovered cases were reclassified as deaths. Two laboratories failed to submit their data on Feb. 20.

More than eight million Filipinos have been tested for the coronavirus as of Feb. 19, according to DoH’s tracker website.

The coronavirus has sickened more than 111.7 million and killed almost 2.5 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

More than 86.8 million people have recovered, it said.

Senator files bill that seeks to develop sea east of Philippines

A SENATOR has filed a bill that seeks to develop and explore Benham Rise, also known as the Philippine Rise, for natural resources.

Senator Maria Imelda Josefa “Imee” R. Marcos cited the need for an “integrated approach” in developing the waters east of northern Philippines.

The 24-million-hectare undersea feature contains untapped natural gas and heavy metals, she said in Senate Bill 2039, citing the University of the Philippines Institute of Maritime Affairs and Law of the Sea.

The area is also rich in manganese deposits used in steel production and in the ingredients of fertilizer and ceramics, she added.

The measure will create a Philippine Rise Resource Development Authority that will enforce the country’s rights over the area, including research and exploration.

The agency will also facilitate the participation of all sectors in developing the extinct volcanic ridge in the Philippine Sea that is about 250 kilometers east of the Dinapigue, Isabela province.

The plateau had not been included in the Philippine territory even if it is near the archipelago. The Philippines in 2009 filed a partial claim with the United Nations Commission on the Limits of the Continental Shelf for Benham Rise, which was approved three years later.

President Rodrigo R. Duterte in 2017 issued an executive order renaming Benham Rise to Philippine Rise. — Vann Marlo M. Villegas