WELLINGTON — The mayor of Auckland called for residents to be prioritized for coronavirus disease 2019 (COVID-19) vaccines after New Zealand’s biggest city was thrown into its fourth pandemic lockdown over the weekend.
The seven-day lockdown imposed by Prime Minister Jacinda Ardern on a city of 2 million was prompted by just a single new COVID-19 case, reinforcing the New Zealand leader’s strict “go hard, go early” response throughout the crisis.
That approach has been credited with making New Zealand one of the most successful countries in the world at controlling the spread of the coronavirus, but the latest shutdown has been criticized by some on social media.
Auckland Mayor Phil Goff said the city would lose an estimated 200 jobs and more than NZ$30 million ($21.7 million) per day under the level 3 restrictions.
“We need the vaccine roll-out to be prioritized in Auckland to help avoid future lockdowns, protect jobs and incomes, and ensure Auckland can play its role in supporting the national economic recovery,” Mr. Goff said in a statement.
The lockdown led to several major sporting and cultural events being canceled or postponed and also caused traffic chaos over the weekend with people trying to get home stuck for hours at city checkpoints.
The case that prompted the shutdown was a person who had been infectious and out in the community for a week. Two more locally transmitted cases were subsequently reported over the weekend, but no new cases were reported on Monday.
Ms. Ardern said on Monday the person who sparked the lockdown had made “multiple mistakes,” after public anger at reports the person had made contact with an infected family during lockdown and had visited public venues after taking a COVID test.
“It has had devastating consequences, no question,” Ms. Ardern told Newshub’s The AM Show, adding that any punishment was up to the police.
“People do dumb things but we’re not going to get through this if people pillory them to the point they do not tell the truth,” she said.
New Zealand has reported just over 2,000 cases of the coronavirus and 26 deaths since the start of the pandemic. — Reuters
The break fee—2,000 yen ($19) per shareholder—is a little-known practice among Japan’s biggest trust banks when they lose a client in the shareholder record-keeping business, multiple insiders say. — REUTERS
TOKYO — When Japan’s Honda Motor Co. Ltd. stopped using Sumitomo Mitsui Trust Bank Ltd. as its stock transfer agent last year, the lender slapped it with a roughly $4 million termination fee, according to two people familiar with the matter.
The break fee—2,000 yen ($19) per shareholder—is a little-known practice among Japan’s biggest trust banks when they lose a client in the shareholder record-keeping business, multiple insiders say.
The bank that takes the new client typically pays the fee. Insiders say this arrangement keeps a profitable business in the hands of a few big trust banks because newcomers balk at the cost. One departing client was told the charge was an “industry custom.”
Japan’s three largest trust banks, Sumitomo Mitsui Trust, Mitsubishi UFJ Trust and Banking Corp., and Mizuho Trust & Banking Co. Ltd., control at least 97% of the market, according to an internal bank document.
Details of the fees, including the amount and the expectation that the new bank pay, as well as Honda’s experience, are reported here for the first time.
Some executives at listed companies privately express frustration over the practice, which they say illustrates banks’ abuse of their considerable power in corporate Japan.
It’s not clear why banks’ break fee amounts are identical. The fees varied until the late 1990s, when weakened lenders were consolidating, one of the people familiar with the matter said.
“It’s not right to charge 2,000 yen for doing nothing. Any way you look at it, it’s a barrier to entry and in violation of anti-trust laws,” said one executive at a major manufacturer. He and other sources declined to be identified because the information isn’t public.
Transfer agents keep records of a company’s shareholders, process dividend payments and count votes at annual general meetings. Mitsubishi UFJ Trust shouldered Honda’s fee when it took over records of the automaker’s roughly 210,000 shareholders, according to the two people familiar with the matter.
Honda said it couldn’t comment on the content of contracts.
Sumitomo Mitsui Trust, Mitsubishi UFJ Trust, and Mizuho Trust said they charge administrative fees when a client leaves. All declined to comment on the amount of the fees or on specific transactions.
Mizuho Trust said that contracts differed from client to client, and that there are cases in which it discusses the break fee from a former transfer agent when negotiating a contract. It said that the fees were appropriate and that its business complied with the law.
Mitsubishi UFJ Trust said there was no legal issue with the fees because the trust banks had not agreed on them together.
A spokesman for the Japan Fair Trade Commission declined to comment.
A representative for the regulatory Financial Services Agency (FSA) said: “Contracts in the private sector are at the discretion of each company”.
‘INDUSTRY CUSTOM’ Trust banks came under scrutiny last year after Sumitomo Mitsui Trust and Mizuho Trust separately revealed widespread failure to count all valid votes at annual general meetings over the last two decades. Both have apologized and pledged to revise practices.
Banks don’t always make break fees explicit in contracts, one of the people familiar with the matter said.
Mitsubishi UFJ Trust said that in general, administrative fees are determined after discussions with the client. Mizuho Trust said there are cases where it spelled out the fees in contracts.
Another executive, at a midsize listed firm, said his company refused to pay when switching transfer agents years ago.
“There was no clause for specific break fees in our contract but the bank demanded it, saying it was an industry custom,” the executive said. “I told them it doesn’t make sense.”
His company never paid the fee and the bank gave up trying to collect it, he said.
For decades, the transfer agent business was labor intensive because stock certificates and other records were handled manually. But digitalization has helped streamline it, making it more profitable, industry insiders say.
Sumitomo Mitsui Trust’s transfer agent business, which includes two small subsidiaries, had a 49% profit margin in the last financial year, compared with 39% for the bank overall, according to regulatory filings.
At Mitsubishi UFJ Trust, it was 60% for the business, nearly double the bank’s overall margin of 31%. Mizuho Trust doesn’t give a breakdown for the business.
ANTI-MONOPOLY LAWS When a client moves, the banks just need to retrieve and forward their database records, according to the two executives, one of the people familiar with the matter and another industry insider.
Although the volume of data depends on the number of shareholders a company has—some of Japan’s biggest firms have 700,000 or more—the records are supplied electronically by the Japan Securities Depository Center, a common platform for stock transfers.
Mitsubishi UFJ Trust said other data needed to be prepared and transferred, including dividend payment records.
“If the break fees cannot be rationally explained and serve as an obstacle to newcomers, the practice could be against anti-monopoly laws,” said Yasuo Daito, a lawyer specializing in antitrust issues at Nozomi Sogo Attorneys at Law.
But if larger banks’ services are simply better than those of potential challengers, then a violation of anti-monopoly laws would be less likely, Daito said.
Investor-relations firm IR Japan Holdings in 2012 became the first new market entrant in four decades. It now has a 1% share.
IR Japan said it doesn’t charge break fees. It declined to comment on the practice. — Makiko Yamazaki and Maki Shiraki/Reuters
OAKLAND, Calif./WASHINGTON — A US national security commission is recommending that American universities take steps to prevent sensitive technology from being stolen by the Chinese military, a sign of growing concerns over the security of academic research.
The National Security Commission on Artificial Intelligence (NSCAI), led by former Google chairman Eric Schmidt, is set to vote Monday on its final report to Congress. A new section on university research was added to a recently published final draft, which also features numerous recommendations in areas including competition in artificial intelligence and the semiconductor supply chain.
The fresh recommendations come as the United States pushes ahead with the prosecution of at least five Chinese researchers arrested last year in various cities across the US on charges of visa fraud for not disclosing ties to the Chinese military.
Among those arrested was Chen Song, a former Stanford University visiting scholar in neurology who faces charges including obstruction of justice, destruction of records, and making false statements to a government agency. She pleaded not guilty at an arraignment last week in the United States District Court Northern District of California.
“Dr. Song is a physician. She was here to do medical research that would have benefited stroke victims in the United States had she been allowed to complete her work,” her lawyer, Ed Swanson, said in an e-mail.
Other cases involve Juan Tang, a visiting researcher at University of California (UC) Davis School of Medicine; Xin Wang a visiting researcher at UC San Francisco who was working on projects related to metabolism and obesity; Kaikai Zhao a PhD student studying AI and machine learning at Indiana University in Bloomington; and Lei Guan, who worked as a researcher at UCLA’s mathematics department.
Stanford, UCSF, and UC Davis all said they are cooperating with the authorities on the investigations. University of Indiana did not reply to request for comment and UCLA was not immediately available.
China has denied allegations it was trying to steal US research.
The cases are part of the US Department of Justice’s so-called “China initiative” launched in 2018 to counter China’s national security threats.
The NSCAI recommendations would require more disclosure on research funding and partnerships at universities. It also proposes creating a database of individuals and entities to flag risks in advance.
Gilman Louie, a Silicon Valley venture capitalist and NSCAI commissioner, said a database could help avoid unilateral bans based on affiliations and instead allow the US to judge individual cases. Mr. Louie said the commission wanted to avoid a “sledgehammer approach.”
The lack of guidance so far has meant that some nervous university presidents have kept Chinese nationals away from any research projects, said Mr. Louie. “That somebody simply looks at you and determines because you’re ethnically Chinese that you can no longer be trusted on programs in the US, that’s a big issue with me.”
Tobin Smith, vice president for science policy and global affairs at the Association of American Universities said universities have struggled with assessing risk and welcomed the blueprint.
“The issue is most of the time universities don’t have the resources to be aware that something’s been stolen from them until it becomes a national security issue and it’s a front-page headline somewhere,” said Jason Jardine a patent lawyer at Knobbe Martens Olson & Bear who works with universities on patent theft.
Emily Weinstein, an analyst at Georgetown University’s Center for Security and Emerging Technology, said the challenge will be to define which Chinese entities are defense-affiliated. While some universities in China are clearly tied to the military, the links aren’t always clear-cut.
“On paper, these measures seem fine,” said Qiaojing Ella Zheng, a partner at Sanford Heisler Sharp who is also president of the Chinese American Lawyers of the Bay Area. “The problem always occurs during the implementation and enforcement. The entire Asian American community here in the US and abroad will be watching closely how this action plan unfolds in practice.” — Jane Lanhee Lee and Daphne Psaledakis/Reuters
TOKYO — Two South Korean technology companies are borrowing from mobile gaming to shake up—and dominate—Japan’s storied manga industry, a plot twist that has expanded the comics’ fanbase to a new generation of readers.
Backed by tech giants Kakao Corp. and Naver Corp., Piccoma and Line Manga have become Japan’s highest-grossing mobile apps outside games. Such online manga platforms have seen a surge in popularity during the coronavirus disease 2019 (COVID-19) pandemic.
Piccoma’s third-quarter transaction volumes more than tripled year on year to 11.6 billion yen ($110 million), extending a wave of online manga sales that has already seen digital surpass print in Japan’s $5 billion manga industry.
Line Manga, now operated by SoftBank’s internet business Z Holdings, saw transaction volumes jump by a third to 8.2 billion yen in the same period. Naver declined an interview request.
Piccoma passed Line Manga to become last year’s top-grossing manga app on both Apple’s IoS and Android. Its rise can be traced back to 2016, when it introduced a revenue model it calls “zero yen if you wait.”
The app’s manga tales—from classroom love stories to supernatural horror—are serialized. Users must wait for a timer to unlock the next installment, or pay to read ahead.
Inspired by smartphone games in which playing is free but extra content is not, the approach marked a radical departure from the typical model of selling an entire manga volume up front at prices of $4–$6.
“We thought if we could grab 5% or 10% of the bigger games market it would drive growth,” said Yukiko Sugiyama, senior manager in Kakao Japan’s business strategy department.
Readers, eager to find out what happens next, often end up paying. The business model has become standard as dozens of booksellers, tech companies, and publishers rushed to offer their own apps.
PAPER TRAIL Megumi, a 34-year-old office worker in western Japan, said she reads 20 pages or so of manga on her phone during her lunch break, and turned to the two apps when stuck at home taking care of kids during last year’s pandemic state of emergency.
She became “addicted” to and paid for a hit Line Manga series, True Beauty, about a young woman whose makeup skills make her popular with men.
The strip originated in Korea, where the rise of the internet saw paper sales collapse, replaced by smartphone-optimized comics.
Manga apps offer a vast back catalog of titles and exclusive strips.
“You can read manga carrying just your smartphone—it’s handy,” said Kana Misaki, a 36-year-old care worker living near Tokyo who reads manga “overwhelmingly” via apps.
In Japan, online manga is generally still formatted like a book, and traditional publishers are a powerful force, with editors closely involved in each stage of production.
Printed in black and white on cheap paper, paper manga remains affordable and disposable. The industry is protected under Japanese law from books being sold for less than their cover price, even online. “For new titles, paper sales are much higher,” said Shu Hashimoto, an editor at publisher Kodansha’s long-running Weekly Shonen Magazine.
Even the most ardent app users say they will buy paper editions of their favourite titles.
“You don’t know when titles will disappear from the apps, so when I want them close at hand I buy them,” Misaki said. — Sam Nussey/Reuters
A US Centers for Disease Control and Prevention (CDC) advisory panel voted unanimously on Sunday to recommend Johnson & Johnson’s (J&J) coronavirus disease 2019 (COVID-19) shot for widespread use, and US officials said initial shipments would start on Sunday.
Providing a final clearance for the vaccine a day after it was authorized by US regulators, the Advisory Committee on Immunization Practices (ACIP) voted 12–0 to recommend the vaccine from J&J as appropriate for Americans 18 and older. There was one abstention due to prior conflicts of interest.
“We believe today’s recommendation from the CDC to begin use of our vaccine as part of the US national immunization program will add a critical tool in the fight against COVID-19,” Paul Stoffels, J&J’s chief scientific officer, said in a statement.
“We’re getting these doses out the door as soon as they’re available to ensure vaccines get into arms as quickly as possible,” one senior US official told reporters late on Sunday, adding that initial deliveries were expected by Tuesday.
State and local public health authorities will use Food and Drug Administration (FDA) and CDC guidance as they administer the first 3.9 million doses, which will be shipped through distribution partner McKesson Corp.
Senior administration officials acknowledged that vaccination rates among minorities were “not where we ultimately want them to be”, but measures had been put into place to boost those numbers. Federal officials were closely monitoring distribution by states to ensure it was equitable, they said.
The officials urged everyone in the United States to get a shot as soon as it was their turn, and said Black and brown Americans should understand that safeguards had been put in place after past cases of discrimination in the medical field.
“Time is certainly of the essence. Getting vaccinated saves lives,” said one of the officials.
ACIP has played a major role in guiding states on how to allocate scarce doses, though states themselves have the final say in how they allocate shots.
CDC epidemiologist Dr. Sara Oliver said during a Sunday presentation that there are not yet any studies comparing J&J’s vaccine directly to the other approved vaccines from Pfizer-BioNTech and Moderna Inc, but that all vaccines were highly effective at reducing hospitalizations and deaths.
Both the Pfizer and Moderna vaccines, which are based on new messenger RNA technology, showed higher efficacy rates in trials that used two doses versus J&J’s single-shot vaccine. Direct comparison, however, is difficult because the trials had different goals and J&J’s was conducted while more contagious new variants of the virus were circulating.
Oliver also said there was insufficient data to know whether the vaccines’ safety or efficacy could be compromised by pre-existing conditions that compromise a person’s immune systems.
CDC Director Rochelle Walensky has approved the panel’s recommendations.
Ms. Oliver and senior US officials said that deploying J&J’s vaccine could help ensure equitable distribution of shots to underserved communities.
J&J’s shot will be the only one-dose COVID vaccine available in the United States. It is also the easiest to ship and store, as it can be kept in a refrigerator rather than a freezer.
J&J expects to ship more than 20 million doses by the end of March and 100 million by midyear, enough to vaccinate nearly a third of Americans. — Carl O’Donnell/Reuters
The Philippines started Monday vaccinations against the coronavirus using Sinovac Biotech Ltd. doses donated by China, planning to further reopen the economy that suffered its worst slump last year once inoculations pick up.
The director of state-run Philippine General Hospital, neurosurgeon Gerardo Legaspi, was first to be inoculated with the Sinovac vaccine, with more vaccinations expected in public hospitals in Metro Manila, the capital region.
“Let’s not wait for the best vaccine. There’s no such thing,” said Carlito Galvez, who leads the nation’s vaccine procurement efforts. “The best vaccine is the one that’s safe and effective, and arrives early.”
The Philippines is among the last in the region to begin inoculations against COVID-19, with Malaysia and Thailand starting days before, while Singapore and Indonesia even earlier. It has the second-worst outbreak in Southeast Asia, with daily infections rising above 2,000 again in the past days.
President Rodrigo Duterte said Sunday that he’s considering further easing virus restrictions once the nation’s vaccine stockpile reaches 2 million, and once shots reach the countryside. “Once I see that we have many vaccines, I will open everything,” he said.
Almost half of Filipinos however are not inclined to get a COVID-19 vaccine mainly due to safety concerns, according to survey released January. Public trust in China has also been consistently low, even as Duterte built warm ties with Beijing. — Bloomberg
The outsourcing industry was one of the few sectors that continued to operate throughout the entirety of the lockdown designed to contain coronavirus disease 2019 (COVID-19).
Much of the industry moved their operations to work from home, creating new challenges when it comes to mental health. Professional isolation is the bane of telecommuters, while those who have to show up on-site—to address cybersecurity needs that aren’t supported by home-based work—have to deal with the anxiety of possibly getting infected with the COVID-19 virus.
Mirei G. Magallona, country vice-president of Telus International Philippines, tells BusinessWorld reporter Jenina P. Ibañez how the outsourcing industry is dealing with these challenges and what the firm is doing to help its workforce.
TAKEAWAYS
The workplace is disconnected.
Outsourcing firms can find remote work challenging. Not only are employees disconnected from each other, management also finds it hard to make sure that their leadership presence is felt through a webcam.
Telus employees in a survey flagged uncertainties brought about by the pandemic, whether they are working from home or on-site.
“When you’re working from home, you’re a little bit isolated,” she said. The company created a toll-free number to give them direct mental and physical health support from professionals.
Communication is important.
Telus, Ms. Magallona said, must communicate health safety protocols and sanitation measures to employees working on site.
The industry is unique because it operates 24/7, so firms have to ensure that health security does not wane.
Despite its unique work hours, the outsourcing industry is not too different from any company working amid a pandemic. “We were all affected, regardless of the industry,” she said.
Speak with experts.
It’s important to speak with experts, especially medical professionals, before setting new policies.
Telus has a health and wellness committee that meets regularly. “We also hired a doctor who’s a specialist on infectious diseases to provide some advice to the committee on how to deal with the situation, on how to address concerns of our team members.”
Policy changes are based on these discussions, health advice, and government protocols.
President Rodrigo Duterte’s signing of the Coco Levy Act would benefit the country’s 3.5 million coconut farmers from 68 coconut-producing provinces, who own at most five hectares for the last 10 years, said Sen. Cynthia Villar, chairperson of the Senate Committee on Agriculture and Food.
President Rodrigo Roa Duterte signed into law Friday (Feb. 26, 2021) a legislation creating a trust fund for the country’s coconut industry and its workers. PCOO.GOV.PH
The law seeks to create a trust fund for these farmers through the selling of assets procured through the coco levy fund.
“The coconut farmers are the poorest in the country. They earn only about P1,500 a month. This fund, which rightfully belongs to the coconut farmers, should be plowed back to them for their own direct benefit,” she added.
Villar, principal sponsor of Senate Bill No. 1396 or the “Coconut Farmers and Industry Trust Fund Act,” stressed that this law is in consonance with the declared policy of the state to consolidate the benefits due to coconut farmers and to expedite their delivery.
She hopes this law will finally resolve the decades-old issue surrounding the coco levy fund. She said it will carry out its two-pronged goal—to help coconut farmers and develop the coconut industry.
Senate Bill 1396, which was adopted by the House of Representative government, is mandated to turn over P75 billion cash of the coconut levy assets in the next five years to create a trust fund for our coconut farmers.
Immediately after the passage of the bill into law, Villar said the Bureau of Treasury (BTr) shall transfer P10 billion to the trust fund and for the succeeding years, according to the following schedule: P10 billion in the second year;
P15 billion, third year; P15 billion, fourth year; and P25 billion, fifth year.
Furthermore, she said the trust fund will be augmented with all proceeds of privatization or disposition of the Coconut Levy Assets remitted directly by the BTr and the Privatization and Management Office.
Senator Villar said P5 billion of the trust fund will be used upon enactment of the law for the following programs, in addition to the programs of the Philippine Coconut Authority which will be given a separate budget. The minimum disbursement per year will be P5 billion but it can be bigger.
LIVELIHOOD AND INCREASED INCOME – 54%
15 percent for planting and replanting of hybrid coconut seedlings and production of hybrid coconut seedlings by the Philippine Coconut Authority;
Five percent for research and production of hybrid coconut seedlings by the Department of Science and Technology – Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST – PCAARRD);
10 percent to be shared equally for farm improvements through diversification and intercropping with livestock, dairy, poultry, coffee and cacao production by the National Dairy Authority and the Department of Agriculture (DA); Native Animal Program; and High Value Crop Program to be divided equally;
10 percent for shared facilities for processing by the Philippine Center for Postharvest Development and Mechanization (PhilMech); to be given to cooperatives. If there’s no cooperative in the town, it will go to LGUs;
Five percent for organizing and empowering coconut farmer organizations and their cooperatives under the Cooperative Development Authority;
Five percent for research, marketing and promotion by the Bureau of Micro Small and Medium Enterprise Development under the Department of Trade and Industry (DTI); and
Four percent for crop insurance to be implemented by the Philippine Crop Insurance Corporation.
CREDIT – 10%
10 percent to be shared equally for the credit programs of the Development Bank of the Philippines and the Land Bank of the Philippines.
INFRASTRUCTURE – 10%
10 percent for infrastructure development to be implemented by the Department of Public Works and Highways in coconut-producing LGUs.
EDUCATION – 16%
Eight percent for scholarship programs for farmers and their families to be implemented by the Commission on Higher Education; and
Eight percent for the training of coconut farmers and their families as listed in the coconut farmers registry in farm schools through Technical Education and Skills Development Authority and Agricultural Training Institute to be shared equally.
HEALTH – 10%
10 percent for health and medical programs for farmers and their families to be implemented by agency created by the Philippine Coconut Authority.
Under the measure, the Philippine Coconut Authority Board (PCA) has been reconstituted and strengthened to ensure the participation of coconut farmers in the crafting and implementation of the Coconut Farmers and Industry Development Plan.
The PCA Board shall be composed of the secretaries of the DA (as chairperson), DTI, Budget and Management, Finance, and DOST and PCA, and three farmer-representatives from Luzon, Visayas and Mindanao.
Suzuki offers revamped Dzire for young urban professionals
Now more than ever, young urban professionals are fully booked in their schedules. As they take extra effort in balancing work and life in this new normal, their day is often filled with work hours, whether at home or in the office. They also allot time, nonetheless, to pursue other passions, to do side gigs, to ensure wellness, as well as to chill out.
For such things, they might need a constant partner in their work-life essentials, especially if they frequently go from one place to another. The all-new Dzire from Suzuki suitably gives this kind of solution.
With upgraded features and constantly reliable performance, the new Dzire continues to offer the market an affordable sedan that does not compromise on style, quality, and safety.
Enhanced style
The upgrade mostly comes from its revamped exterior, still grounded on Suzuki’s authentic design styling. The new Dzire is now accentuated by elegant lines, aggressive front fascia, and finely crafted chrome accents along its body.
The revamped Dzire unifies the horizontal upper and lower grilles into a more stylish and finer front grille, giving the sedan a more defining look. New fog lamps are also attached on both sides of the grille, and a toned-up bumper design complements these additions.
Another addition to the new Dzire is the electric folding side mirror, making adjustments more convenient for drivers.
The interior is also enhanced, with ample boot space and multiple storage compartments, encased in a contemporary and classy design theme to complement the modern lifestyles of drivers and passengers.
Such improvements include a standard audio unit, now integrated with Bluetooth, together with hands-free connectivity switches that enables drivers to make and receive calls with ease.
Efficient performance
Dzire complements these well-defined features with its dependable performance. The light and highly rigid HEARTECT platform lowers fuel consumption and vastly improves Dzire’s performance in terms of running, turning, and stopping.
Dzire also has Suzuki’s Auto Gear Shift (AGS), which gives the comfort of driving an automatic while giving the fuel efficiency of a manual transmission.
A compact 1.2L WT engine powers Suzuki Dzire, notable for its high combustion efficiency and compression ratio, low friction, and light weight. It enables strong driving performance with its impressive mileage rating of 26.51 km/L (for Dzire GA/GL MT), as witnessed by the Automobile Association of the Philippines.
Uncompromising safety
Dzire’s advanced safety features include the electronic stability program, a new addition to the upgraded sedan which automatically adjusts engine torque and brakes when the wheel is steered sharply or when the road is slippery.
Suzuki’s Total Effective Control Technology is also integrated into Dzire, which helps mitigate damage to the car and its occupants by absorbing impact and dispersing collision energy.
Beyond having a stylish front, Dzire’s body aims to mitigate injuries in the event of a collision with a pedestrian. Inside, Dzire has dual front airbags to protect the driver and front passengers in case of such an event.
Dzire’s hill hold control (GL+) that prevents the vehicle form rolling backwards during standards on slopes, while its reverse parking sensors (GL/GL+) can detect obstacles and warn the driver of the car’s distance to an obstacle while backing.
Competitively priced models
Dzire comes in three variants, each catering to the different needs of young professionals. Dzire GL+, highlighted by AGS, which allows drivers to switch between automatic and manual transmissions, caters to those who are used to automatic driving yet would still want to have the control of manual when the situation calls for such.
Dzire GL, meanwhile, remains a good option for first-time car buyers, especially those who are trained in manual driving.
The Dzire GA, on the other hand, is good for fleet usage such as for sales functions or for transport network vehicle system (TNVS) and taxi businesses.
Dzire is competitively priced at P549,900 for Dzire GA 1.2L – M/T; P648,000 for the New Dzire GL 1.2L – M/T; and P708,000 for the New Dzire GL+ 1.2L Auto Gear Shift (AGS).
Learn more and inquire about the all-new Suzuki Dzire by visiting auto.suzuki.com.ph; or calling (02) 8462-5000, (049) 502-1458, or Suzuki’s 24/7 Toll Free Customer Care Hotline at #789854.
Food prices remained elevated in February. — PHILIPPINE STAR/ MICHAEL VARCAS
By Luz Wendy T. Noble, Reporter
HEADLINE INFLATION is likely to have breached the central bank’s target for a second straight month in February, as food and fuel prices remain elevated, according to economists.
A BusinessWorld poll of 16 analysts last week yielded a median estimate of 4.8%, near the upper end of the 4.3% to 5.1% estimate range given by the Bangko Sentral ng Pilipinas (BSP) but beyond the 2-4% annual target.
If realized, the median estimate will be even quicker than the 4.2% in January and the 2.6% a year earlier. It would also be the quickest since 5.1% print in December 2018.
The Philippine Statistics Authority will report February inflation data on March 5.
Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said a quicker rise in the consumer price index was expected in February as the price of household staples like meat and fish continued to accelerate.
This despite a government-imposed 60-day price ceiling on some pork and chicken products, and plans to allow more pork imports in order to temper the price spikes caused by the African Swine Fever outbreak. On the ground, however, some vendors have decided not to sell products citing the low profits.
“Importations may help mitigate the challenges in the near term but could cripple an already struggling livestock sector,” he said, noting that longer food security will better be ensured through capacity building and support programs for the industry.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said upside risks to inflation included disruptions caused by Typhoon Auring in some provinces.
Agriculture damage caused by Typhoon Auring reached P79.38 million, mainly in the Caraga Region.
Rising global prices of soybean and corn, which are key inputs to hog and chicken feeds, also added to inflationary pressure on food prices, Security Bank Corp. Chief Economist Robert Dan J. Roces said.
Transport prices may have also seen a faster uptick last month amid higher pump prices.
“Oil firms have also continued to raise pump prices this month to reflect movement in the world oil market; crude futures on average have risen by 70% since October 2020,” Mr. Roces said.
Last month saw the prices of gasoline, kerosene and diesel prices increase by P3.05, P2.90 and P3.30, respectively, based on data from the Department of Energy.
These price increases in petroleum products will have “created a chain reaction to other essential items” said Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez.
In its rate-setting meeting on Feb. 11, the Monetary Board has raised its average inflation forecast this year to 4% from 3.2% previously. Officials said upside risks to inflation emanate from the recovery in oil prices as demand picks up with the easing of restriction measures around the world.
The Monetary Board is set to meet on March 25 for its second policy meeting this year.
Analysts said February inflation further strengthens the case for the central bank to retain its accommodative stance and to refrain from increasing the benchmark rates.
“A rate hike at this stage will be a gut punch to consumers and firms alike, now largely struggling just to stay afloat,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said, noting the central bank has already signaled it was eyeing a “long pause.”
The country is currently under a negative real interest rate environment with the key policy rate at 2% and inflation at 4.2% as of January.
BSP Governor Benjamin E. Diokno has said they are likely to keep rates low until the economy has fully recovered and when unemployment returns to its pre-pandemic level. He noted raising interest rates will be “too early” as 2021 is seen as the country’s “recovery year” from the recession.
The low base effect from the collapse in global oil prices last year will cause a sharp rise in fuel and transport prices — a reason for the central bank to hold rates for the moment, Alex Holmes, economist at Capital Economics said.
“The [inflation] spike will be temporary, and we still expect rate cuts before the yearend,” he said.
Last year, the BSP slashed rates by a total of 200 basis points to provide support to the virus stricken economy. This brought down the overnight reverse repurchase, lending, and deposit rates to record lows of 2%, 2.5%, and 1.5%, respectively.
THE COUNTRY’S biggest banks lent less to households and firms in the fourth quarter of 2020, as profits fell and soured loans increased amid the coronavirus pandemic.
The latest edition of BusinessWorld’s quarterly banking report showed the aggregate loans of 46 universal and commercial banks (U/KBs) contracted by 3.96% year on year to P9.582 trillion in the fourth quarter, more than the 0.74% decline in the preceding quarter, as banks remained risk averse.
The latest reading was the largest since the fourth quarter of 2003 when loans lent by U/KBs went down by 4.17%. Moreover, this was only the second decline in almost 11 years following the slump in the previous quarter.
Profitability likewise suffered as the median return on equity (RoE) further declined to 3.66% from 4.13% in the third quarter of 2020 and 6.75% in the fourth quarter of 2019. RoE — the ratio of a bank’s net profit to shareholder equity — measures the amount that shareholders make on every peso they invest in a company.
Meanwhile, total assets by big banks grew by 5.6% to P18.937 trillion in the fourth quarter of 2020, from P17.934 trillion in the same period in 2019. This was slightly faster than the record-low 5.13% expansion in the third quarter of 2020, but still slower compared with the 8.16% print in the fourth quarter of 2019.
BDO Unibank, Inc. remained the biggest in terms of assets with P3.315 trillion, followed by Metropolitan Bank & Trust Co. (Metrobank) at P2.462 trillion and government-run Land Bank of the Philippines (LANDBANK) with P2.365 trillion.
BDO also has the most loans issued with P2.191 trillion, followed by the Bank of the Philippine Islands with P1.401 trillion and Metrobank with P1.222 trillion.
Among banks with assets of at least P100 billion, the state-run Development Bank of the Philippines (DBP) posted the fastest year-on-year asset growth with 36.69%. Asia United Bank (AUB) and Bank of Commerce came in next with 19.79% and 17.57%, respectively.
DBP likewise had the fastest year-on-year loan expansion of 19.75%, followed by Robinsons Bank Corp. and Rizal Commercial Banking Corp. with 7.67% and 3.81%, respectively.
BDO had the most deposits with P2.611 trillion, followed by LANDBANK with P2.093 trillion and Metrobank with P1.798 trillion.
Meanwhile, DBP posted the quickest deposit growth with 47.4%, with AUB and Bank of Commerce at second and third places with 22.41% and 20.39%, respectively.
BIG BAD LOANS Bad loans, also known as nonperforming loans, grew by 7.65% in the fourth quarter to P308.832 billion from P286.877 in the preceding quarter. The fourth-quarter figure was almost double the P156.527 billion worth of bad loans posted in the same period in 2019.
As a portion of the U/KBs’ total loan portfolio, the bad loans increased to 3.68% in the fourth quarter from 3.57% in the preceding three months and 1.88% in the fourth quarter of 2019. This marked a new record high since the Bangko Sentral ng Pilipinas (BSP) introduced a new reporting standard that took effect in the first quarter of 2013.
Prior to the change, banks presented bad loan numbers that already excluded loans that were fully provisioned as of the last BSP examination. The current method does not allow this, and distinguishes bad loans without deductions (gross nonperforming loans, which are used in this report) and bad loans minus specific allowance for credit losses (net nonperforming loans).
Meanwhile, the U/KBs’ nonperforming asset (NPA) ratio — or the nonperforming loans and foreclosed properties in proportion to total assets — was recorded at 1.17% in the fourth quarter. This was slightly lower than the 1.24% in the previous quarter, but was still above the 0.73% posted in the fourth quarter of 2019.
Relative to total assets, foreclosed real and other properties are smaller at 0.28% in the fourth quarter from 0.29% in the previous quarter.
Total loan loss reserves among U/KBs reached P322.568 billion in the fourth quarter, bigger than the P294.805 billion in the third quarter and P170.445 billion in the fourth quarter of 2019.
This brought the big banks’ bad loan coverage ratio, which is the ratio of the total loan loss reserves to gross nonperforming loans, to 104.45% from 102.76% in the third quarter, but still lower compared with the previous year’s 108.89%.
Big banks’ ability to absorb losses from risk-weighted assets edged down in the fourth quarter as their median capital adequacy ratio settled at 20.14% from 21.02% in the preceding quarter.
Still, the ratio remained well above the regulatory minimum of 10% set by the BSP as well as the international minimum standard of 8%.
BusinessWorld Research has been tracking the financial performance of the country’s big banks on a quarterly basis since the late 1980s using banks’ published statements.
The full version of BusinessWorld’s quarterly banking report will soon be available for download on www.bworldonline.com.
Many government agencies are still at the infancy stage of moving processes to the internet. — PHILIPPINE STAR/MICHAEL VARCAS
By Jenina P. Ibañez, Reporter
WHEN a coronavirus lockdown barred Tina Cuyugan, 60, from making the trip to a small town in the Bicol Region to pay property taxes, she reached out to the municipal office in December to find out how she could pay.
The communication consultant was told to pay via postal money order, an ancient system supplanted by online banking and newer remittance services.
A postal worker at the Parañaque City central post office helped her fill out a form, while her surprised colleagues looked on.
“She filled it out and people who had never seen it done before crowded around her to see,” Ms. Cuyugan said in an online video interview. “Employees of the post office — the younger ones — they’d never seen this.”
Ms. Cuyugan was thrilled. She sent the checks through a logistics company and was e-mailed an official receipt from the municipality of Vinzons a few days later.
She appreciated the flexibility of a local government that had just weathered several typhoons a month earlier.
“Maybe at the upper level, things tend to be very ‘follow a kind of standard procedure’ when it’s top-down,” she said. “At the local level, people would try to cope and make systems more efficient and adapt to disasters and limitations.”
The desire to keep things moving during the pandemic is best exemplified by a congressional measure that seeks to fast-track orders for coronavirus vaccines.
A Bicameral Conference Committee is no longer needed after congressmen on Tuesday night adopted the Senate version of the bill, which President Rodrigo R. Duterte had certified as urgent.
Jeremiah B. Belgica, director-general of the Anti-Red Tape Authority, said the ideal payment process would be done entirely online, but many government agencies are still at the infancy stage of moving processes to the internet.
“At the interim, you can actually streamline or make things easy without going online or automating,” he said in mixed English and Filipino. “So it’s smart that they thought of paying through those measures.”
‘AUTOMATING RED TAPE’ Mr. Belgica said the lockdown meant to contain the COVID-19 pandemic had created urgency among government agencies to move their processes online. But many have still fallen short at execution.
Fewer government workers were at their offices as they worked from home, slowing services.
Addressing red tape needs more time. Government agencies often operate in silos, he said. Multiple agencies regulate the same sector, multiplying similar processes several times over.
The government units that adapted well to the pandemic were the ones that already had plans to automate and streamline processes before the global health crisis hit, Mr. Belgica said.
The municipality of Jose Panganiban in Bicol, where Ms. Cuyugan also paid taxes, had been accepting payments through bank transfers before the pandemic.
Government agencies have moved more of their processes online as the health crisis prevented people from visiting their offices and employees working from home were no longer picking up calls to office landlines.
Carol C. Gaw, an export and import development officer at Limketkai Manufacturing, said she contacted the Food and Drug Administration (FDA) by e-mail and mobile instead of calling them on a landline phone during the lockdown.
FDA processes for certificates of product registration sped up during the lockdown, taking just a month instead of the usual three-month minimum, she said by telephone.
The regulator has frequently gotten the attention of the red tape watchdog because of delays. The Anti-Red Tape Authority recently declared more than 2,000 applications with the FDA automatically approved — as provided by a law on easing business transactions — after the agency failed to act on these on time.
Meanwhile, like many agencies, the Securities and Exchange Commission (SEC) got side-tracked by the lockdown
Applications for business permits took longer, as well as the processing of corporate disclosures.
The corporate regulator in an e-mail noted that while it used alternative methods in accepting submissions, it needed more time to process these because its offices were closed during the lockdown.
“A report submitted through courier or registered mail will take days before it reaches the SEC,” the agency said. “We will then keep the document in our warehouse for at least 24 more hours to allow for its disinfection before our personnel can upload the document to our Online Document Retrieval System and make it available to the filer and other interested parties, and process the return of the filer’s receiving copy through courier upon request.”
When its offices opened, the agency limited people who can visit by using an online appointment system to avoid overcrowding. SEC recently announced an online submission tool.
Mr. Belgica said automating processes should come with streamlining — removing unnecessary requirements and merging duplicate processes. “If you just automate or put things online, you run the risk of automating red tape.”
The Philippines ranked 95th out of 190 economies in a World Bank report on Ease of Doing Business in 2019, where it came in seventh out of 10 Southeast Asian nations.
Starting a business became easier after the country abolished the minimum capital requirement for domestic companies and made dealing with construction permits easier, according to the report. But the country still needed to improve enforcing contracts and registering property.
Mr. Belgica said regulatory reform usually takes a decade, but he thinks the Philippines could do it in half the time.
To do that, government regulatory mindsets must change. The agency he heads also needs more power to require agencies to streamline, instead of just making recommendations.
At the end of the year, Ms. Cuyugan will again pay taxes for her properties in Bicol, and she looks forward to either going back to the post office or paying the way she used to.
People who live far from these remote areas should have more convenient ways to do it, she said. “I think there should be options for doing these things from a distance.”
Furthermore, she said the trust fund will be augmented with all proceeds of privatization or disposition of the Coconut Levy Assets remitted directly by the BTr and the Privatization and Management Office.
“She filled it out and people who had never seen it done before crowded around her to see,” Ms. Cuyugan said in an online video interview. “Employees of the post office — the younger ones — they’d never seen this.”