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DoH says 36 more have COVID-19 variants

By Vann Marlo M. Villegas and Kyle Aristophere T. Atienza, Reporters

HEALTH authorities on Tuesday reported 30 more patients who got infected with a more contagious coronavirus variant from the United Kingdom and six more people who got sick with a variant from South Africa.

“While there is no evidence that this variant causes a more severe disease, the pattern of mutations within this variant suggests higher transmissibility and may have an impact on vaccine efficacy,” the Department of Health (DoH) said in a statement, referring to the South African variant.

Of the six cases, three patients came from Pasay City, two of them — a 61-year-old woman and a 39-year-old man — were active cases. The third, a 40-year-old male, has recovered, the agency said.

The status of two more patients who came home from the United Arab Emirates and Qatar were still being verified, as well as the sixth case.

The 30 more cases of the UK COVID-19 variant brought the total in the Philippines to 87, DoH said. Of the 30, 20 were returning migrant Filipinos, three were locals, and seven were still being verified.

The 20 migrant workers came home from the Middle East, Singapore and United States between Jan. 20 and Feb. 16. Thirteen of them were active cases but were not showing symptoms, while seven have recovered, DoH said.

The three locals came from the Cordillera Administrative Region, one of whom is an active case admitted to a hospital, one has recovered and one died.

Health Undersecretary Maria Rosario S. Vergeire said both the South African and United Kingdom variants are more contagious. The South Africa variant’s mutation might affect vaccine efficacy, she added.

The vaccine developed by British drug maker AstraZeneca Plc is less effective against the South African variant based on trial data, Reuters reported last month.

TALLY
Meanwhile, the Health department reported 2,067 coronavirus infections on Tuesday, bringing the total to 580,442. The death toll rose by 47 to 12,369, while recoveries increased by 144 to 534,463, it said in a bulletin.

There were 33,610 active cases, 89.8% of which were mild, 4.8% did not show symptoms, 2.3% were critical, 2.2% were severe and 0.85% were moderate.

DoH said six duplicates had been removed from the tally, while 30 recovered cases were reclassified as deaths. Eight laboratories failed to submit data on March 1.

About 8.3 million Filipinos have been tested for the coronavirus as of Feb. 28, according to DoH’s tracker website.

The coronavirus has sickened more than 115 million and killed about 2.6 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 90.8 million people have recovered, it said.

Also on Tuesday, DoH said 756 people got CoronaVac shots on the first day of the vaccination program on Monday in six Metro Manila hospitals.

It said 128 people got vaccinated at the Philippine General Hospital, 85 at Dr. Jose N. Rodriguez Memorial hospital and 20 at the Lung Center of the Philippines.

It added that 110 people got inoculated at the Philippine National Police General Hospital, 353 at the Veterans Memorial Medical Center and 60 at Victoriano Luna Medical Center.

Ms. Vergeire said 13 people experienced higher blood pressure, headaches, nausea or pain in the injection area. None of them were admitted to hospitals and were sent home after observation.

More than 215,000 health frontliners from both public and private hospitals would get vaccine shots made by Chinese drug maker Sinovac Biotech Ltd. this quarter, presidential spokesman Herminio L. Roque, Jr. told a televised news briefing.

Of the 600,000 CoronaVac donated by China, the capital region got 130,742 doses, he said. It was followed by Central Visayas with 13,923 doses, Central Luzon with 11,537, Soccsksargen with 8,705, Western Visayas with 8,438 and the Davao Region with 8,004.

Northern Mindanao will get 7,239 doses, Eastern Visayas 3,935, the Zamboanga Peninsula 3,417,  Cordillera Administrative Region 3,279, Caraga 3,044, Calabarzon 1,115 and Bangsamoro Autonomous Region in Muslim in Mindanao (BARMM) 940.

Mr. Roque said 756 medical workers and government employees from Metro Manila got vaccinated on Monday.

Vaccine czar Carlito G. Galvez, Jr. said the St. Luke’s Medical Center had asked the National Government for an allocation of 5,000 vials of the Chinese vaccine.

Mr. Roque said private hospitals are also on the government’s priority list.

Meanwhile, the first batch of AstraZeneca vaccines under a global initiative for equal access would arrive this month, Vivencio B. Dizon, deputy chief enforcer of the state’s anti-coronavirus efforts told the same briefing.

He said they still did not know when the vaccines from Pfizer, Inc. would arrive. The government failed to take delivery of about 117,000 doses after it failed to sign papers freeing the drug maker from potential lawsuits on time.

Chinese Sinopharm seeks emergency use approval for vaccine

CHINESE drug maker Sinopharm Group Co., Ltd. has applied for an emergency use authorization (EUA) for its coronavirus vaccine in the Philippines, according to the Food and Drug Administration (FDA).

“An online application was filed yesterday afternoon and the FDA is checking the contents of the submission now,” FDA Director General Rolando Enrique D. Domingo said in a Viber message on Tuesday.

Presidential spokesman Harry L. Roque, Jr. said President R. Duterte would wait for the approval of Sinopharm’s application before receiving the shot.

Mr. Roque on Monday said Sinopharm had sought the authorization, but the FDA did not immediately confirm it.

Mr. Domingo said it would take as long as six weeks for them to decide on Sinopharm’s application since it had not received an EUA from any stringent regulatory bodies in other countries.

The FDA earlier allowed the compassionate use of 10,000 doses of Sinopharm vaccines for members of the Presidential Security Group, which used the drugs without the agency’s approval.

Ramon T. Tulfo, Jr., the country’s special envoy to China, earlier said he and other high-ranking government officials received the Chinese shots last year.

Mr. Roque earlier said the presidential legal team was studying whether the President, as commander-in-chief of the Armed Forces, is covered by the compassionate use authorization for Sinopharm.

Only the shots developed by America’s Pfizer, Inc. British drug maker AstraZeneca Plc, Chinese drug maker Sinovac Biotech Ltd. have been approved for local emergency use. — Kyle Aristophere T. Atienza

Group asks gov’t to prioritize prisoners for COVID vaccines

A GROUP representing the families of political prisoners has asked the government to include about 215,000 inmates in the country’s crowded jails among the most vulnerable people who should get vaccinated against the coronavirus.

“It has been almost a year since COVID-19 hit the country, yet there are still no official pronouncements that consider prisoners as part of the most at-risk populations who need to get the vaccine first,” Kapatid spokesperson Fides Lim said in an open letter to Health Secretary Francisco T. Duque III on Tuesday.

“We strongly ask that all persons deprived of liberty, including all political prisoners, be incorporated in the government’s mass vaccination program for COVID-19,” she added.

Ms. Lim, citing United Nations rules on the treatment of prisoners, said the state is responsible for their healthcare.

“Prisoners should enjoy the same standards of healthcare that are available in the community, and should have access to necessary healthcare services free of charge without discrimination on the grounds of their legal status,” she added.

Among those prioritized by the government for coronavirus vaccines are health workers, senior citizens, people with comorbidities, police and military, people in other essential sectors, indigent people and migrant Filipinos. — Bianca Angelica D. Añago

Senate asks gov’t to allow limited physical classes

THE Philippine Senate on Monday approved a resolution asking the government to start limited face-to-face classes in more than a thousand public schools amid a coronavirus pandemic.

Senators said pilot physical classes in low-risk areas would let the Education department “gather evidence and design a framework for the safe reopening of schools.”

Senate President Vicente C. Sotto III, who authored the measure, said in his sponsorship speech on Monday not all households have internet and gadgets for online classes.

Physical classes would prevent gaps and remove the inequality between rich and poorr students, he added.

Seven senators who filed the measure on Monday said the prolonged school closures have affected students especially those from poor families.

They said the trial run in 1,065 schools in low-risk areas identified by the Education department should start “to avert a prolonged learning loss and minimize other potentially profound adverse social, developmental and health costs.”

They noted that 433 municipalities and three cities have no active coronavirus cases as of Feb. 9. Feeding programs should also be resumed and ease the effects of the pandemic on poor students and their families, they added.

The government should also prioritize teachers for vaccination to lessen the risk of transmissions in schools, the lawmakers said.

President Rodrigo R. Duterte this week rejected a plan to hold limited face-to-face classes pending the rollout of vaccines. In December, he recalled a similar proposal set for January. — Vann Marlo M. Villegas

Manila lifts deployment ban to UAE

THE PHILIPPINES will allow Filipinos to work as domestic helpers in the United Arab Emirates (UAE) starting Mar. 31 after both agreed to boost protection for these workers, according to the Labor department.

The two countries signed a labor agreement giving the migrant workers “greater protection,” the agency said in a statement on Tuesday.

The Philippines suspended the deployment of Filipino domestic helpers to the UAE in 2014 to protect them from abuse.

Some female domestic workers in the UAE have good and responsible employers, satisfactory working conditions, receive their wages in full and on time, and can send money home to their families, Human Rights Watch said in an October 2014 report.

“But in many cases, employers in the UAE and recruiting agents abuse the women who become migrant domestic workers,” it said.

Workers whom Human Rights Watch interviewed for the report, including some Filipina maids, described a range of abuses that they had experienced.

Dozens of Filipinas recruited to work in the UAE had been trafficked to Syria to work as maids, The Washington Post reported in January. The workers had at times been physically and sexually abused by their employers and denied the salaries they were promised, it said.

Workers who will be sent to the Middle Eastern country would be covered by a unified employment contract that ensures their security, Labor Undersecretary Claro A. Arellano said in the statement.

Under the deal, local recruitment agencies would be liable if a Filipino domestic helper is put in danger.

The workers will also get at least eight hours of continuous sleep every night, take a paid break at least once a week and keep their passports and other documents.

They may also use mobile phones and other communication devices, open bank accounts and cook their own food. The tourist visa of a Filipino domestic worker may also get converted into a working visa. — G.M. Cortez and Norman P. Aquino

Nationwide round-up (03/02/21)

PhilHealth projects P17-B loss this year

THE Philippine Health Insurance Corp. (PhilHealth) is expecting to book a P17-billion loss this year with the deferment of the contribution rate hike and higher expenses due to coronavirus-related programs and benefits. Nerissa R. Santiago, PhilHealth acting executive vice president and chief operating office, told a Senate Health committee hearing Tuesday that without the increase in collection from members, the expected income for the year is P162 billion, including government subsidy and other sources of income. Benefit expenses, on the other hand, would be P179 billion, including P171.9 billion for a consultation program for 25% of the population and coronavirus benefits. “Net income or loss for 2021 would be about P17 billion as a result of a lower collections and higher benefit expense,” she said. Prior to the pandemic, the  projected collection for 2021 was P103 billion. This was dropped to P83 billion due to the decrease in the number of direct contributors and deferment of the 3.5% scheduled increase. “This will lower the reserve fund of about P143.5 billion coming from P160.6 billion from 2020,” she added. Ms. Santiago also said PhilHealth’s reserve fund is projected to decrease to P83.7 billion in 2022 due to the estimated net loss of about P60 billion. National Treasurer Rosalia V. de Leon said the implication of the projected net loss for 2021 is a shortening “of the fund life of PhilHealth by six months from August 2028 to February 2028.” The Senate health and demography committee is hearing the bills seeking to grant the President the power to suspend increases in PhilHealth contributions due to the effects of the pandemic. The House of Representatives early this month approved on third and final reading a similar bill. Under Republic Act No. 11223 of the Universal Health Care Act, the monthly premium rate contribution would increase to 3.5% in 2021 from 3% in 2020

LIQUIDATION
Meanwhile, PhilHealth President Dante A. Gierran said the state-run insurance firm supports the proposal to grant the President the power to defer scheduled contribution increase during national emergencies “when public interest so requires.” “Provided that the subsequent scheduled increases in the premium contribution shall be adjusted to the years following the lifting of the suspension,” he said, adding that this is in order to support the insurance program. Mr. Gierran also reported that 95% of the P14.9 billion funds released to healthcare institutions that were under investigation have been liquidated. “The IRM (interim reimbursement mechanism) now is already 95% liquidated,” he said in a mix of English and Filipino. “We would like to assure… that we will liquidate this fully in due time. Hopefully before the end of March of this year,” he said. Complaints were filed against top PhilHealth officials over the alleged anomalies in the IRM program. — Vann Marlo M. Villegas

Labor groups slam ‘no vaccination, no work’ policy by some companies

LABOR groups on Tuesday called on the government to prohibit the “no vaccination, no work” policy that has been adopted by some employers, saying such rule is “discriminatory and coercive.” The Associated Labor Unions (ALU), in a statement, said it has received complaints and reports from workers who were advised by their management to participate in the coronavirus disease 2019 (COVID-19) vaccination sponsored by companies. Other unions also reported that there are workers who will not be allowed to resume duties without a vaccination certificate. “Employers also forewarned their employees with reassignment and relocation to other branches if they would not participate in the company-sponsored immunization program. Others would be put on furlough or floating status until they are injected with the vaccine,” ALU said. The coalition urged the Department of Labor and Employment to intervene in the matter. The Philippines received its first set of COVID-19 vaccines last Sunday consisting of 600,000 doses of the Sinovac Biotech Ltd. brand donated by the Chinese government. Private firms, through a tripartite agreement that involves the government, have been allowed to place orders for approved COVID-19 vaccines. The government maintains a policy that vaccination is not mandatory. — Gillian M. Cortez

Palace says fewer holidays this year needed to recover ‘lost time’

THE proclamation issued last week on fewer non-working days this year is intended to recover “lost time” from the stringent lockdowns imposed across the country since last year, according to the presidential palace. President Rodrigo R. Duterte last week declared three special holidays — November 2 (All Souls’ Day), December 24 (Christmas Eve), and December 31 (Last Day of the Year) — as “special working days” supposedly to boost economic productivity. Presidential spokesman Herminio L. Roque, Jr. said the President made the order upon the recommendation of the government’s economic planners. “We have been on holiday for almost a year because of COVID-19. Let us allow recovery for lost time,” he said in a mix of English and Filipino during a televised press briefing. Mr. Roque defended the policy after labor groups and Senator Risa N. Hontiveros-Baraquel urged the Palace to reconsider its declaration, citing potential impacts on Filipino workers. For daily minimum wage earners in the National Capital Region (NCR), the order amounts to a pay cut on Dec. 31 of about P161, InfrawatchPH convenor Terry L. Ridon earlier told BusinessWorld. “Inclusive of the two other special working days, the pay cut amounts to about P483, equivalent to 99% of NCR’s minimum wage,” he said. Ms. Hontiveros-Baraquel said the policy might only “disincentive and demoralize workers from reporting for duty, thus lowering economic productivity instead of increasing it.” Mr. Roque said despite the official proclamation, “nothing is etched in stone,” and this might still change. “Let’s see what will happen,” the spokesman said in Filipino. — Kyle Aristophere T. Atienza

20 new prosecutors appointed

JUSTICE Secretary Menardo I. Guevarra has released a list of 20 newly-appointed prosecutors of the Philippines to the Department of Justice–National Prosecution Service, mostly assigned outside in regional offices. Of the 20, eight are assistant city prosecutors assigned to Baguio, Biñan, Cagayan De Oro (2), Kidapawan City (2), Lapu-Lapu, and Mandaluyong. Five are associate city prosecutors assigned to Legazpi, Tagaytay, Lucena, Baguio, and San Fernando.

Another five are assistant provincial prosecutors assigned to Cavite, Cagayan, Leyte (2), and Palawan. The remaining two are associate provincial prosecutors assigned to Batanes and Masbate. Mr. Guevarra further said there are “another 20 (new prosecutors) more or less coming up.” A directory of the country’s prosecutors are available on at the Department of Justice website, doj.gov.ph/national-prosecution-service.html. — Bianca Angelica D. Añago

Regional Updates (03/02/21)

Western Visayas to maintain quarantine requirement, other travel protocols

PROVINCES and cities in the Western Visayas Region are keeping strict travel protocols, including the mandatory quarantine period for returning residents, despite the reduced requirements contained in a Feb. 26 resolution issued by the national task force on coronavirus. The national travel guidelines were to take effect starting Mar. 1, but provided discretion to local government units. The decision to retain the status quo in Western Visayas was made by the regional task force, citing the need for a transition period on the migration to the national travel management and contact tracing systems called S-Pass and Staysafe.ph. The regional group said all areas will be “retaining the status quo… while enjoining local government units… to prepare for their full utilization of the S-Pass and Staysafe.ph in their respective localities.” Western Visayas is composed of the independent cities of Iloilo and Bacolod, and the provinces of Aklan, Antique, Capiz, Guimaras, Iloilo, and Negros Occidental. Most of these local governments have their own contact tracing systems.

Proposed Bangsamoro fisheries agency to secure region’s waters, boost marine resource revenues

THE BANGSAMORO region’s Ministry of Agriculture, Fisheries and Agrarian Reform conducts a demonstration-workshop on fish processing for the Meti Fishing Household Association in the coastal town of Datu Blah Sinsuat, Maguindanao as part of its livelihood and value-adding program for marine resources. — MAFAR

A PROPOSED fisheries agency in the Bangsamoro region will be tasked to ensure that its designated waters will be secure from encroachment and develop post-harvest facilities to maximize income from marine resources. The proposal for the creation of the Bangsamoro Fisheries Development Authority (BAFDA) is under plenary deliberation by the Bangsamoro Transition Authority (BTA) Parliament. “Our (marine) resources are being tapped not only by other regions but even by foreign elements. We usually have fishing activity by Chinese fishermen in the Sulu Sea and the Moro Gulf, and other fishermen from other countries of the ASEAN (Association of Southeast Asian Nations) region,” BTA Member Jose I. Lorena said in his sponsorship speech of the bill. He also said that with the BAFDA, the Bangsamoro region will not only be able to regulate the processing of its raw products, but will also put a stop to the incursion of “big time commercial fishing” into its areas. Mr. Lorena is one of the principal authors of the BAFDA bill, along with Speaker Ali M. Balindong, Deputy Speaker Nabil A. Tan, Deputy Majority Floor Leader Paisalin P. Tago and Member Amil S. Mawallil.

COMPETITIVE
“If we could appropriately introduce the cost facilities needed for the preservation of our fisheries, and at the same time transforming our raw fishery/marine products into its final form, we will not only be competitive against the regions of the country but we will be the advanced fishery resource region of the country as well,” Mr. Lorena said. The BAFDA, which will be under the Ministry of Agriculture, Fisheries, and Agrarian Reform, will also be tasked to establish and regulate fishing ports and related facilities. The Bangsamoro Organic Law provides the government of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) with the authority over its fishery, marine, and aquatic resources, with general supervision from the Philippine president. “The strength of a region lies on the full utilization of its resources. It is time that we fully tap our resources not only for the Bangsamoro but for the welfare the generation of the Bangsamoro that will come after us,” Mr. Lorena said. — MSJ

Urgency to transform fragmented health system

The coronavirus disease 2019 (COVID-19) global pandemic has severely affected the global economy and overwhelmed health systems in many countries. In the Philippines, it exposed several gaps on both public health infrastructures and national health policies. It has also highlighted the country’s fragmented governance and the lack of healthcare facilities and human resources for health that led to the slow-phased responses to the pandemic.

Last year, Health Secretary Francisco T. Duque III mentioned that “battling the COVID-19 pandemic has demanded much from our health system and not only revealed its faults but emphasized an urgent need to transform and heal the system as a whole. The Universal Health Care (UHC) Law was crafted to address this very gap that has plagued our system for many years. Hence, it is a critical moment to seize, to fast track the transition to universal healthcare.”

It has been two years since the passage of the UHC Act. One of its key objectives is to realize universal coverage through a systemic approach and clear delineation of roles of key agencies and stakeholders towards better performance in the healthcare system. Like any other health law, the vision of the UHC Act is remarkably outstanding, however the main challenge is in its implementation. If the UHC law is fully implemented, it will provide equitable access to quality and affordable healthcare services while protecting against financial risk for every Filipino. However, as frequently stated by the Department of Health (DoH), the law cannot be implemented instantly, but only progressively, mainly due to its high resource requirements at all levels.

The transformation of the whole health system to achieve a sincere universal healthcare will entail serious investments by the government and the constant participation of different stakeholders. Indeed, adopting a whole-of-society and people-centered approach is vital to improve overall health system performance.

As often recognized, different stakeholders, such as patient associations and civil society or grassroots organizations, play important roles in monitoring the health reforms towards the path of UHC. It is also recognized that engaging stakeholders of the health ecosystem is an effective way to support common advocacies and pro-actively participating in developmental policy reforms to achieve universal healthcare for all Filipinos.

In line with this, UHC Watch, an advocacy led by patient groups, health advocacy organizations, and consumer groups, was officially launched on Feb. 19. UHC Watch was formed by a coalition of Citizen Watch Philippines; Philippine Alliance of Patient Organizations (PAPO), Health Justice Philippines (HJP), and Bantay Konsumer, Kalsada, Kuryente (BK3) to ensure the full implementation of the Universal Health Care Act and the mandated programs of other health related laws.

At the event, Dr. Jaime Galvez Tan, former Health secretary and board member of HJP, mentioned that “now the UHC Law is in full swing despite being in the pandemic, we hope that our government will not lose sight and continue to prioritize the reforms needed by the health system.”

Prof. Louie Montemar, convenor of BK3, said that “consumers are now struggling in this deep recession, we need an accelerating pace of execution of the health services mandated in the UHC Act. Let us not forget that COVID-19 is not the only disease killing our people. The deaths from other infectious and non-infectious diseases such as heart disease and cancer are alarmingly way above the pandemic. And, the sad reality is that this pandemic is affecting the continuity of treatment of these diseases.”

On her part, Ma Fatima “Girlie” Garcia-Lorenzo, PAPO’s president, mentioned that “accountability and transparency are vital to delivering safe, effective and affordable healthcare. All stakeholders need to be held accountable on commitments they made to implement universal health coverage and be accountable to the patients they serve.”

Further, “The implementation of a universal healthcare system benefits the economy. The interlinking dynamics of health and the economy and the disruptive consequences of its imbalance is one of the hardest lessons of this pandemic. This is how critical, and how urgent Universal Health Care is,” said Orlando Oxales, lead convenor of CitizenWatch Philippines.

By now, everyone has realized what a pandemic-like situation looks like. Dealing with the pandemic has opened our eyes to the current new normal. Many have probably also seen how being prepared to respond to this kind of crisis, such as prioritizing investments in the healthcare system, would lessen the burden that many of us have experienced in the past year.

Let us work together to rebuild our healthcare system. The implementation of government’s health policies and programs are more likely to succeed and to be sustained when different stakeholders work together towards the achievement of universal healthcare.

 

Alvin Manalansan is a Non-Resident Fellow at the Stratbase ADR Institute and a Convenor of CitizenWatch Philippines.

Creative destruction

In the book Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoglu and James A. Robinson, the authors argue that the prosperity of a nation is not primarily based on geography, climate, or culture. The authors, rather, point to the existence of inclusive political and economic institutions, as opposed to extractive institutions, as the primary aspect that will foster the prosperity of a nation.

According to the book, an inclusive political institution is where “[political] power [is] broadly distributed in society” thus constraining its arbitrary exercise. This then results in inclusive economic institutions. Inclusive economic institutions are “those that allow and encourage participation by the great mass of people in economic activities that make best use of their talents and skills,” featuring, among others “secure private property” and a system that permits the entry of new businesses.

For a true inclusive institution and sustained prosperity, the authors claim that “creative destruction” must be allowed. Creative destruction is where new technologies create economic wealth although the same may disrupt existing businesses. Recent examples can be seen in internet-based businesses such as ride hailing apps which caused disruption to the public transportation business, sharing economy schemes for room rentals that disrupted the hotel industry, and online marketplaces which disrupted the business of shopping malls and physical stores.

In the Philippines, creative destruction is fostered in part by its patent system which allows anyone that has created an invention to enjoy its economic fruits. Thus, an inventor, even if he does not have capital to go into business, can “secure his private property” and enter into “new business.”

An invention, if it is new, novel, and industrially applicable can be registered with the Intellectual Property Office. Once registration is granted, exclusive rights are acquired by the registrant. These exclusive rights may involve the sole right to use, manufacture and/or import the invention. Additionally, the patent registrant may opt to have another person use, manufacture or import his patented invention through a license agreement, subject to a fee.

Further efforts to encourage research and development towards the creation of inventions, is seen in the Philippine Technology Transfer Act. This law provides a mechanism for government or private entities to enjoy patent rights of the development even if the invention was facilitated by government funding.

The Intellectual Property Office, with assistance from the World Intellectual Property Office and World Economic Forum, also offers an Inventor Assistance Program. The program seeks to ease the financial burden of inventors in securing patent registration by referring them to local patent lawyers.

Apart from securing patent registration, the enforcement of patent rights has also been given much importance. This is seen in the Supreme Court’s recent issuance of the 2020 Revised Rules of Procedure for Intellectual Property Rights Cases. The new rules provide ways to promote the expeditious resolution of intellectual property cases such as the submission of position papers, memoranda and draft decisions, among others.

While efforts to promote research and development as well as the protection of patent rights over inventions have increased, the percentage of local inventors that actually filed patent applications in the Philippines is still small. The Intellectual Property Office lists the following number of filings from local inventors: 293 in 2015; 248 in 2016; 284 in 2017; 469 in 2018; and 434 in 2019; a small number compared to the more than 3,000 average number of applications by foreign applicants.

The number of local filings jumping in 2018 and being sustained 2019 though, provides hope that there is already an increased activity in research and development, as well as awareness on patent laws. With continuing efforts of the government to promote patent protection, it is expected that local patent filings will continue to increase and, perhaps, the next technology to give rise to creative destruction will originate from a Philippine patent.

The views and opinions expressed in this article are those of the author. This article is for general information and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.

 

Jose Eduardo T. Genilo is a Partner of the Intellectual Property Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

jetgenilo@accralaw.com

8830-8000

Ulat sa Bayan: In the darkest of periods, BSP was able to realize its mission

This is a speech delivered on the occasion of the 2021 BSP Annual Reception for the Banking Community, at the PICC Upper Lobby, Delegation Building, on Feb. 19.

MEMBERS of the banking community and the diplomatic corps, esteemed leaders and partners from the public and private sectors, colleagues from the Bangko Sentral ng Pilipinas (BSP), good afternoon.

There is a saying in Latin attributed to the Roman philosopher Seneca: ignis aurum probat. Fire tests gold. Disruptions and upheavals, while uncomfortable and painful, are opportunities to re-examine old ways, give birth to new ideas and try exciting new strategies — undertakings that would otherwise be impossible when lulled by the comfort of the status quo.

Indeed, it was in the middle of one of the most formidable health and economic challenges in recent memory that we were tested as an institution, particularly in the effective delivery of our mandates. But it was also in this darkest of periods that we were able to realize our mission. We acted in the interest of the Filipino people.   

To mitigate the impact of the pandemic, we acted quickly by providing monetary stimulus to ease tightening liquidity conditions, boost business and consumer confidence, and ensure the continued orderly functioning of the financial system.

Aside from traditional monetary interventions and regulatory relief measures, we also implemented extraordinary measures. For instance, the BSP entered into an initial P300-billion repurchase agreement with the Bureau of the Treasury at the onset of the pandemic in March 2020 to provide the national government added flexibility in dealing with the public health crisis. After the repo was settled in September, the BSP extended short-term provisional advances worth P540 billion to the national government in October. This was followed by a fresh advance of P540 billion to the national government in January 2021, after the borrowing in October was settled in December.

In sum, the BSP has so far injected approximately P2 trillion in liquidity to the financial system, equivalent to about 11% of the country’s gross domestic product (GDP).

With this amount of liquidity, we are carefully assessing the appropriate timing of the unwinding of all these measures. Doing this too late or too early may have serious repercussions on the economy.

In September 2020, the BSP started issuing its own securities which helped us manage liquidity better.

On the regulatory front, we issued time-bound and targeted regulatory and operational relief measures to encourage BSP-supervised financial institutions to continue their support to the economy in the following ways:

• Counting of loans to micro, small and medium enterprises as part of banks’ compliance to the reserve requirement;

• Higher single borrower’s limit; and,

• Increased limit to real estate loans.

We also supported the passage and implementation of legislation aimed at helping the economy recover and move forward from the pandemic, specifically Bayanihan I and II, and the recently passed Financial Institutions Strategic Transfer or FIST and the Corporate Recovery and Tax Incentives for Enterprises or CREATE laws.

It is worthy to note that both FIST and CREATE were passed during the pandemic. FIST aims to help banks unload bad assets; while CREATE seeks to accelerate economic recovery by cutting the corporate income tax and modernizing the fiscal incentives system. Both measures are meant to attract more job-generating investments.

We will continue to support the passage of the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery or GUIDE bill, which aims to strengthen the capacity of government financial institutions — Philippine Guarantee Corp., Land Bank of the Philippines, and the Development Bank of the Philippines — to provide needed assistance to micro, small and medium enterprises and other strategically important industries.

In addition, our continuing support for landmark legislation such as the Islamic Banking Law will help promote real socioeconomic development in Muslim Mindanao and boost efforts to help our countrymen move forward from the economic effects of the pandemic.

For our actions to mitigate the impact of COVID-19 (coronavirus disease 2019), we received the “Best Systemic and Prudential Regulator in Asia Pacific” award from the Asian Banker in October 2020.  We also received the 2020 Gold Standard Award for Country and Trade Promotion for our efforts in ensuring that the international investment community sees a truthful and transparent picture of the Philippine economy.

The research arm of The Economist Group, which focused on financial inclusion in the COVID-19 response, likewise recognized the country’s initiatives to mitigate the adverse economic impact of the current global health emergency. Financial inclusion is a state wherein there is effective access to a wide range of financial services for all.

It is clear that the crisis, which subjected us to extraordinary challenges, has also given us the rare chance to accelerate our efforts in bringing the BSP closer to the Filipino people.

This day is yet another proof of that opportunity. As part of the BSP’s tradition, we set aside a day at the early part of each year to celebrate our friendship with around 300 members of the country’s banking community.

While the pandemic has prevented us from gathering in historic Fort Abad like we did last year and the years before technology has allowed us to actually make history today as we interact with each other in a virtual platform for the first time.

Best of all, we are now able to expand this venue of camaraderie to include thousands more of our colleagues, partners and stakeholders — kayong mga kababayan natin na kasama natin ngayon sa Facebook Live (those of our countrymen who are joining us now on Facebook Live).

From our usual friends from the banking and diplomatic communities, we are now joined by youth groups and coalitions, MSMEs and fintech groups, and various non-government and industry associations.

Salamat sa mga social media platforms, kasama namin kayo ngayon habang patuloy nating ipinagdiriwang ang tradisyong ito. (Thanks to social media platforms, you are with us as we continue to celebrate this tradition.)

Such, indeed, is the beauty of digitalization. With a gadget and an internet connection, a regular person is able to do more with a few clicks or taps — anytime, anywhere. It saves that person valuable time, allowing him or her to spend it on more important matters.

Digitalization is among a few things that helped us continue with our daily lives during the pandemic. Imagine the risk of exposure if one had to physically pay bills and buy food, medicines, and other essential supplies. It is a good thing that the country had been gradually embracing financial technology even before the pandemic hit. For me, it prepared us for the worst.

In 2020, the volume of PESONet transfers surged to 15.3 million, up by 376% year on year. On the other hand, the value of PESONet transactions rose by 188%, year on year, to reach nearly P951.6 billion — equivalent to about 5.3% of the country’s GDP.

In the same period, the number of payments made through InstaPay reached 86.7 million, up by 459% year on year. Said transactions were valued at P463.4 billion, which was a 340% increase year on year.

This amount of InstaPay transactions is equivalent to about 2.6% of GDP.

From January to April 2020, new online sign-ups and app downloads for digital financial services increased by 100%, year on year.

With Filipinos more mindful about their health and safety amid the lockdown, there was also a significant decline in the value, o ‘yung halaga, and volume of, o ‘yung dami ng, check payments and ATM withdrawals between the first half of March 2020 and from the second half of March to May 2020. Likewise, coin demand in 2020 fell by 57% in volume and 60% in value compared to 2019.

More accessible and more convenient e-payment options may have partly contributed to the decline, aside from softer economic activities during the said period.

The expanded role of digital payments in 2020 is worthy of note. While it kept the economic gears running during the community quarantines, it was also instrumental in distributing welfare benefits from the Social Security System’s (SSS) Small Business Wage Subsidy (SBWS) program. Under the SBWS program, the SSS, the Department of Finance, and the Bureau of Internal Revenue worked, hand in hand, to provide a wage subsidy for affected employees of small businesses.

Government agencies partnered with the Development Bank of the Philippines and leveraged technology via PESOnet for beneficiaries with bank accounts and through 2,500 partner outlets nationwide for beneficiaries who had no bank accounts. This resulted in the effective and efficient implementation of the program — from application to processing to the distribution of wage subsidies direct to more than three million beneficiaries.

The COVID-19 pandemic has indeed unexpectedly catalyzed the rapid acceleration of digital transformation. The BSP took this opportunity to advance initiatives to push digitalization in the financial industry further.

To chart the BSP’s current initiatives and strategies in advancing an efficient, inclusive, safe, and secure digital payments ecosystem, we launched the Digital Payments Transformation Roadmap last year.

The roadmap identifies two critical strategic objectives. The first objective, also my personal goal as BSP Governor — is that at least 50% of the country’s total financial transactions be done digitally, and at least 70% of Filipino adults have financial accounts. The second objective involves the availability of more innovative digital financial products and services. These products and services, designed to be responsive to consumers’ needs, will be enabled by a digital PhilSys ID and supported by a next-generation payment and settlement system that facilitates the real-time processing of financial transactions.

The realization of these objectives depends mainly on three critical pillars. First of these pillars is the development of digital payment streams. Second is the establishment of necessary digital finance structures that will facilitate interoperability in the digital payments ecosystem. The third critical pillar is the implementation of digital governance standards and regulation of digital products and services to safeguard the integrity and privacy of consumer data.

We know that for digital payments to flourish in our society, we need to have reliable and stable internet connectivity. Digital connectivity is a critical enabler and a necessity in the new economy.

That is why the Financial Inclusion Steering Committee (FISC), of which the BSP is a member, endorsed the Open Access to Data Transmission Bill as priority legislation to the Legislative-Executive Development Advisory Council. The bill aims to address internet infrastructure gaps by bringing in more players to the broadband sector.

In December 2020, the FISC also endorsed to the Office of the President a proposed Executive Order that aims to liberalize access to satellite technology for broadband services and fast-track the expansion of internet infrastructure to improve connectivity in underserved communities and rural areas as well as accelerate financial inclusion.

All these fit in nicely in our 2020-2023 Strategy of bringing the BSP closer to the people — to become the central bank that understands their needs and helps them achieve their aspirations in life.

And one of the ways we intend to do this is by advocating the digital transformation of financial services in the country. Through digitalization, we help create opportunities for people to improve their lives and participate in the economic and financial system.

Through digital payments, we also promote financial inclusion. Digital payments help consumers engage in easier and safer economic activities.

On a wider scale, it also helps reduce poverty and hunger; promote good health and well-being; ensure quality education, decent work, and gender equality; develop sustainable communities, and a lot more.

At the end of the day, it is not simply about what we innovate but why we do it and to whom we are doing it for.

The current crisis has given us an opportunity to think out of the box and be bold, as we work to protect the interests of the people we serve. It showed us what to focus on, as a BSP closer to its people.

Isang Bangko Sentral ng Pilipinas para sa bawat Pilipino. (One Central Bank of the Philippines for each Filipino.)

Before I end this message, let me share with you a famous quote about evolution. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”

And so while the future remains clouded with unusual uncertainty, our eyes are focused on green shoots in front of us as we remain ever-vigilant in addressing the what-ifs.

Times are changing and we are geared up for it. Let us all evolve with the times. Let’s reform, innovate, and transform.

 

Benjamin E. Diokno is the Governor and Chairman of the Monetary Board and Bangko Sentral ng Pilipinas.

More funding and power to LGUs

One of the major initiatives of President Cory Aquino in restoring our democratic institutions was pushing for and signing the Local Government Code of 1991. The idea was to bring the government closer to the people. She had already succeeded in restoring free elections, the Congress and local governments. There was a new Constitution in place. During the Marcos era, the government was so centralized that often people would go to Manila and implore then-Minister of Human Settlements Imelda Marcos to give them a water well. Local governments have indeed gained more power. It is 30 years since then; yet many of the decentralization provisions have not been complied with.

The Lower House, which drafts the budget appropriations has not adequately provided funding for health concerns to the local governments. This has burdened the provincial municipalities which have assumed responsibility for operating health centers and hospitals; and are now, because of the pandemic, burdened even more heavily. The Department of Health raises an issue that many provincial governments are begging them to recentralize management of hospitals. But that is because they are unable to bear the burden of their operating costs.

There is also not enough money for LGUs (local government units) to comply with environmental standards in managing their solid wastes which have an impact on community health, and which today, with the pandemic, have multiplied with increases in single-use plastic packaging and infectious materials such as used masks and hospital wastes.

The passing of the Local Government Code of 1991 was an unexpected boon since members of the Lower House are averse to empowering local politicians too much. It seems that then Speaker Ramon Mitra, Jr., to please President Cory, passed it on a Saturday morning when most Congressmen were in the provinces and the Friday sessions were traditionally not adjourned to make way for local bills (such as naming highways after their relatives) to pass without much trouble. However, actual decentralization, nay, devolution, of authorities and especially corresponding budget allocations as provided in the Local Government Code have taken a long time. Even today, the IATF (Inter-Agency Task Force for the Management of Emerging Infectious Diseases) for managing the COVID-19 (coronavirus disease 2019) response does not have a local government representative. They even decided to reopen movie houses despite the continuing risk of community infections. Fortunately, local government leaders, who know their constituencies better, complained; and so, because he holds all the recentralized power, President Duterte rescinded that decision.

Today, local governments are focused on managing the COVID-19 crisis. They are really the frontliners, in terms of delivery of basic government services. It is crucial that adequate funding be provided, particularly on health matters. It seems there is an additional allocation for health budgets for LGUs under consideration in Congress; and LGUs will also finally share in Customs and other tax collections. But the funds will not be available until 2022. But the need is now. And it is urgent and crucial. Perhaps the Office of the President, which has billions of pesos in discretionary funds, can allocate some of its vast resources to the LGUs, which can better reach their constituents than national government bureaucracies. The LGUs have broader and more responsibilities than the military and police which the President tends to favor. The barangays, which come face to face with the people, especially the needy and poor, can be more effective if they have adequate funding.

Another area of concern which is generally ignored, is garbage disposal. These environmental concerns are becoming greater and, especially during the pandemic, a health concern. Municipalities, and especially cities, produce thousands of tons per day of solid waste. This takes up a major part of the local government budget. Garbage collectors and transporters to garbage dumps, where there are any, can cost hundreds of millions of pesos since these services are paid for by the kilo. Garbage fees charged to businesses by LGUs are ridiculously low. And compliance is not 100%. Mismanagement or neglect of the garbage dumps, which is mostly the case, is not just an environmental issue. It is a community health hazard. Hospital waste these days probably exacerbate the spread of the COVID-19 as these are not always properly sanitized and disposed of. Often the wastes affect nearby waterways which people in the communities travel on or swim in, or, worse, use for household needs.

Environmentalists rally against incineration, so this garbage disposal method is disallowed by national policies. However, there seem to be scientific advances in Korea, Holland, and other places where incineration is said to produce minimal pollution — below the government’s regulatory maximum carbon emissions. It might be worthwhile for the government to look into these modern technologies and review its solid waste disposal policy. It will be a matter of balancing and prioritizing health concerns for breathing clean air and spreading infectious diseases. Meanwhile, LGUs are authorized to decide on solid waste disposal policies. They should also be funded adequately for effectiveness.

These issues reinforce my belief that local governments should get the higher share of the national appropriations since they are responsible for delivery of basic government services (health, education, social welfare, environment, etc.). These concerns, if managed well, make life more congenial for the citizenry. The current allocation of the majority of funds to national government agencies has to be reviewed. The misallocation of appropriations has not benefited our people. It hampers the LGUs’ ability to be responsive to the needs of their constituents. It also enables the Office of the President to decide on development issues big and small, making it the be all and end all of government. This is a reversal of President Cory Aquino’s initiatives to decentralize power and authority in order to strengthen democracy after the EDSA Revolution.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and Fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

Australian steaks may vanish from world menu as herd sizes shrink

IN WHAT would be a blow to steak lovers the world over, Australian beef may slip off global menus if cattle producers Down Under can’t hasten the pace of a nationwide herd rebuild.

With herd sizes near the lowest since the early 1990s, the nation’s beef producers face the possibility of losing their No. 2 exporter position behind Brazil simply because they don’t have the stock available to service a global market as demand picks up steam up post-COVID-19 (coronavirus disease 2019).

The risks of that are growing as some farmers continue to send female cattle to the slaughterhouse instead of keeping them to expand herds. The latest official data show the ratio of female cattle processed as a proportion of total slaughter — an indicator for whether a herd is in restocking phase — at 48.2%, not enough to qualify for a technical rebuild, classified at 47% and under.

While there’s still time to get that ratio down, it needs to happen now as restocking is a years-long process from calf to slaughter and the industry faces a range of headwinds, said Matt Dalgleish, manager of commodity market insights at Thomas Elder Markets. “We’ve got to get those numbers back up so that we don’t lose market share into the export markets,” he added.

Australia’s beef industry has seen some turbulent times after years of drought forced farmers, who were unable to support herds on parched pastures, to cull hoards of cattle. The resultant oversupply on the market caused Australian cattle prices to plummet in 2019 to half the levels seen today.

Australia’s benchmark cattle index sits around record highs

Ranchers are also facing a less certain future with the rise of alternative-protein demand as environmental and health concerns drive consumers to products like faux meat burgers or nuggets.

After rains replenished pastures last year and with the herd rebuild season underway, farmers held onto livestock, squeezing supplies and sending prices soaring to records. Those prices will probably remain at “exceptionally high levels” according to Rural Bank’s 2021 outlook.

Farmers have to contend between keeping their cattle for the rebuild, or sending them for slaughter to “cash in” now — a tempting offer for some looking to pay off large debts incurred during drought years for outsized feed grain purchases to keep the animals alive, Mr. Dalgleish said.

Prices for Australian cattle used to track South American countries, but drought conditions during 2014–15 tightened supply Down Under, which saw prices spike and never properly recover. Weaker Brazilian real and Argentine peso in recent years also gave those producers extra leverage.

With the Australian dollar gaining to almost 80 US cents, the Aussie product is becoming out of reach for many importers. Prices have even overtaken the US, which traditionally holds the title for the world’s most expensive beef. The government forecaster Abares sees US and Brazil expanding shipments through 2022-23 to high-value markets, notably China.

The high prices have also elicited a response from Indonesia, where strikes by local meat sellers over Australian beef costs prompted the government to warn that it will look to other suppliers, according to Australian media reports. Indonesia is Australia’s largest export market for cattle and beef offal.

Though Australia accounts for only 4% of global beef production, the country is one of the world’s largest shippers, with major markets in China, Japan and South Korea. Export volumes fell 15% last year as record prices hurt demand.

Australia’s position in those markets is increasingly at risk, compounded by free trade agreements that see higher tariffs on the nation’s shipments versus American beef, according to Mr. Dalgleish. “The trade situation is such that the US product is being more favored,” he said.

For Australia’s cows that, unlike cattle in the US, mainly feed on grass instead of grains, climate change could add pressure to rebuild stock fast. With drought never far around the corner, coupled with higher frequency of extreme weather events, it’s crucial to bulk up herd sizes while pastures are green.

“Australia’s likely to be back in drought in a couple of years,” Mr. Dalgleish said. “It kind of doesn’t leave us a great deal of time to build up to those high twenties in millions of head numbers — 28, 29 million head. And then you’re kind of stuck again, depending on how prolonged the drought scenarios are looking. We could be back down at record herd levels, and low supply again.” — Bloomberg

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