Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 6990

IP filings drop in 2020; rebound seen with economic reopening

INTELLECTUAL PROPERTY (IP) filings declined in 2020 as inventors and creatives delayed the filing of applications during the lockdown declared to contain coronavirus disease 2019 (COVID-19).

The Intellectual Property Office of the Philippines (IPOPHL) said applications for trademarks dropped 10% year on year to 35,274, while applications for patents fell 9% to 3,648.

Utility model filings declined 45% to 1,235, while industrial design filings fell 23% to 1,259. Copyright deposits fell 44% to 940.

IPOPHL Director General Rowel S. Barba said in a statement Wednesday that the lower number of IP applications was expected as economic uncertainty dampened investment in intangible assets.

“But with the gradual opening up of the economy and the anticipated vaccine rollout, we hope to see more fresh investments in IP assets this year,” he said.

Mr. Barba said that he is hoping that recovery will mirror the growth in filings after the 2008 global financial crisis.

Past global crises, he added, have caused the closure or repurposing of less-efficient firms and emphasized the competitiveness of more dynamic companies.

“Historically, those who put research and innovation at the center of their strategies are those who stand out and thrive in the face of disruption,” he said.

“Thus, lower filings may signal a redirection of growth paths, favoring the highly competitive and innovative, rather than stymied innovation.”

IPOPHL plans to continue digitizing its operations to widen access to its services. —  Jenina P. Ibañez

DoF says rollout of online systems on track this year

THE Department of Finance (DoF) is set to launch various electronic channels this year that will digitize tax-related processes, including an online platform for tax exemption applications, as well as an online business registration system and the electronic-invoicing system of the Bureau of Internal Revenue (BIR).

The DoF said in a statement Wednesday that the electronic Tax Exemption System of its Revenue Operations Group (ROG) will be launched this quarter, in which importers can request duty and tax exemptions and track the status of their applications.

Last year, the government approved 16,650 tax exemption applications which resulted in P12.5 billion in foregone revenue according to Finance Undersecretary and Head of ROG Antonette C. Tionko.

Meanwhile, the BIR’s Online Registration and Update System (ORUS) is set to be operational by August, according to Ms. Tionko, while the rollout of an e-invoicing system will proceed as scheduled this year.

ORUS will serve as a platform for business and individual taxpayers to register and update their details with the bureau.

For the e-invoicing system, she said business process reengineering and information strategy planning for the project has been completed. The bureau is also currently working on the “development of the value-added tax (VAT) system, installation of the ICT infrastructure and the capacity building aspect of the project.” The project tapped the Korea International Cooperation Agency for a $7.3-million grant to aid in its rollout.

“The e-invoicing system we are developing is capable of processing and storing electronic invoices issued by taxpayers in near real time. This will make it easy to issue digital receipts and capture and upload the data in the receipt to a centralized database,” Ms. Tionko said.

The system also has an e-Sales reporting system that summarizes the data on digital invoices and receipts.

Tax returns filed with the BIR online totaled 21.48 million last year, accounting for 94% of all returns. Taxes paid through e-channels amounted to P1.665 trillion, equivalent to 86% of the bureau’s revenue in 2020.

This year, BIR Commissioner Caesar R. Dulay said the bureau is targeting a level of 100% electronic tax returns.

Ms. Tionko added that the ROG is due for partial completion of its One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS) this quarter, while the Transfer Tax Credit Certificates and Tax Debit Memos of the OSS will be launched by year’s end.

The BIR collected P1.94 trillion last year, down 11% year on year but 15% higher than the P1.69-trillion downward-revised target. — Beatrice M. Laforga

Ending the long heartbreak over RPTs in PPPs

“Shot through the heart, and you’re to blame, darlin’ you give love a bad name” — go the opening lines of a famous Bon Jovi song. In December, the Court of Tax Appeals (CTA) sitting En Banc resolved an issue that often strikes (or shoots, if you will) at the very heart of national Public-Private Partnership (PPP) projects — real property taxes (RPT).

This issue is a prominent one for national-level PPPs in the transportation sector, such as roads and railways, which often traverse multiple cities and municipalities. In 2013, the LRT Line 1 Cavite Extension PPP Project had to be rebid due to, among others, the significant RPT that had to be shouldered by the winning proponent. In the same year, the bidders of the Cavite-Laguna Expressway (CALAX) PPP Project — a 44.63-kilometer toll road connecting Manila-Cavite (CAVITEX) and South Superhighway (SLEX) — likewise expressed concerns about the impact of RPT on the project’s financial viability.

In the recently promulgated CTA case (CTA EB No. 2078), the local government unit (LGU) assessed the proponent of a railway project deficiency RPT that ballooned to a billion pesos by the time the Warrant of Levy was issued. The subject of the levy? Railways, train cars, and railway stations. Not surprisingly, this prompted the national government (through the Department of Transportation or DoTr) to file a complaint and prevent the auction and transfer of ownership of the properties. From then on, a legal battle spanning a decade and a half ensued.

Of particular interest here is the Build-Lease-and-Transfer (BLT) arrangement entered into between the national government and the proponent — the crux in the issue of whether the proponent is indeed liable for RPT. Republic Act No. 7718, otherwise known as the Build-Operate-and-Transfer (BOT) Law, defines build-lease-and-transfer as a contractual arrangement whereby a project proponent is authorized to finance and construct an infrastructure facility, and upon its completion, turn it over to the government on a lease arrangement for a fixed period, after which, ownership of the facility is automatically transferred to the concerned government agency or local government unit. In sum, it is a “finance-lease” type of arrangement, similar to how car loans are typically financed.

The LGU assessed the proponent during the “revenue period,” which is the period after construction (hence the government was already in possession and operating the facility) but prior to the transfer of ownership by the proponent. It argued that the proponent is liable for RPT since, during the assessment period, the properties were still privately-owned and were used for commercial and revenue purposes.

The CTA ruled in favor of the DoTr and the proponent, citing two reasons.

First, it noted that the BLT arrangement is more of a financing mechanism where the government is obligated to make amortized payments to the proponent, which in turn, will be sourced from operating the infrastructure facility. In other words, the government becomes not just a mere possessor of the facility, but also its beneficial owner.

Second, considering that the properties are intended for and devoted to public use, the CTA ruled that following Article 420 of the Civil Code, they are considered part of public dominion, and thus, owned by the government. As such, the properties are considered exempt from RPT following Sections 133(o) and 234(a) of the Local Government Code. The Tax Court also cited the case of MIAA vs. CA (GR No. 155650, 20 July 2006), where the Supreme Court ruled that properties of public dominion cannot be the lawful subject of an auction sale.

The CTA likewise took exception of the fact that the DoTr’s Petition for Review was filed only after nearly 10 years from the promulgation of the assailed Orders of the Regional Trial Court (RTC) — which was way beyond the 60-day period allowed under the Rules of Court — citing a litany of cases where the Supreme Court relaxed technicalities “to serve substantial justice and safeguard strong public interest.”

While there are other available remedies — Section 277 of the Local Government Code, for example, gives the President the power to condone such taxes when the public interest so requires (former President Benigno S.C. Aquino III, in fact, exercised this authority when he issued Executive Order Nos. 27 [s.2011] and 173 [s.2014] to condone RPT on power generation facilities under BOT contracts with Government-Owned or -Controlled Corporations) — the CTA decision is nevertheless an important victory for private sector participation in infrastructure projects.

The CTA decision could potentially end the long heartbreak over the payment of RPT for PPP projects. Could it have potentially avoided a rebid of the LRT Line 1 Cavite Extension PPP Project? Perhaps. Applying the reasoning of the CTA, such infrastructure facilities are considered part of public dominion and are therefore owned by the government. Perhaps we will only really know once the decision becomes final.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.

 

Jose Patrick S. Rosales is a lawyer and an Infrastructure & Tax Senior Manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

jose.patrick.s.rosales@pwc.com

Traveler quarantines aren’t going away soon

ONE OF US President Joe Biden’s first moves upon arriving in the Oval Office has been to require international travelers get a negative COVID-19 test before departing, then quarantine on landing; Britain too is considering tighter measures for arrivals. Both basic protective moves are long overdue. They are also an acknowledgement that carefree trips are still many months away.

In part, that’s because the virus is still advancing fast — aided by a new, more transmissible and potentially deadlier, variant — and vaccinations are not yet keeping up.

It’s also because for all the hopes tied up with vaccine or immunity passports, even fast-moving research is not yet where we need it to be to rely on these certifications alone. To many, they sound like digital versions of old-school yellow fever booklets stapled to travel documents — a familiar, simple fix. Not quite.

Some version of such passes will become part of our lives for the coming years, for the simple reason that there will not be a return to the status quo ante, certainly not anytime soon. There are valid objections around privacy and the risk of exacerbating inequalities. Fortunately, good technology and sound policy should be able to surmount both. Unequal experiences, as a group of academics noted in the Lancet last October, have rarely been cited as a good reason to bar healthcare treatments altogether, and sound public health measures should not hurt more people than they have to. Governments have time to focus, for example, on catering to often-marginalized groups first, not last; speeding up access to jabs; and ensuring that initiatives facilitate, rather than limit, access.

On the personal data front, there are already encouraging developments. CommonPass — backed by the World Economic Forum and the Commons Project, a non-profit which develops technology for public use — is a tool that allows anyone to check whether a traveler meets the requirements of the place or country he or she is arriving at. Crucially, it also minimizes personal information used, and stores it only in the user’s phone or at the source.

That doesn’t mean that these laissez-passers are about to get us all moving again.

First, consider vaccine passports, which, at their simplest, register that the user has had the required COVID-19 shots.

The first problem here is, as my colleague Lionel Laurent explained, that there are simply not enough vaccinated people to qualify and make the effort significant. Jabs are coming too slowly.

More worrying, though, we lack a lot of the information required for them to replace quarantines and travel bans. We don’t know enough about the efficacy of all vaccines that will be provided at scale — nor do we know exactly how long protection lasts. We also do not have enough information about whether vaccination limits transmission, or eliminates it.

Even more worrisome, for those of us sitting outside Europe and the United States, is that we do know that not all shots are viewed the same way, with plenty of geopolitics and opaque data muddying assessments of Russian, Chinese, and Indian offerings. Will they all be regarded the same way as Western options at the border, when it comes to that, or, say, at the entrance to the Olympic Games? Should they be? Crucial questions, given so much of the world will receive these inoculations.

So what about an alternative that focuses on immunity, by testing for antibodies to COVID-19? With this option, we would focus on whether the holder is immune at a specific point in time, whether that is through past illness or vaccination, with no reason to focus on the specifics of the jab. It’s an attractively neutral option.

Criticism here usually revolves around the frequency of testing that would be required and the resulting squeeze on capacity, even if the second could arguably be resolved with time. There’s also a less convincing argument that it creates perverse incentives, encouraging people to get infected on purpose to acquire the necessary antibodies. There is little evidence for that: As with debates around social security fraud, the free rider problem tends to be exaggerated.

Unfortunately the far bigger issue is that we just do not know enough about the markers that signify protection from COVID-19, for the individual or for others, when it comes to transmission. We also need tests that can be done more easily, outside a laboratory, to identify not just antibodies, but actual immunity. Those two basics remain just out of our reach for now.

Passes in some form will eventually help open up economies and travel, and limit the bane of lockdowns and quarantines. Vaccines may be the practical proxy, even if immunity would be ideal, as would a standardized, global approach. But we need to have far more answers to avoid creating a false sense of security and unintended consequences.

Until we do, expect that in the 21st century we will continue to control the virus’ movement in ways little different to how Venetians did it in the 14th century. We may even find that the length of confinement rises for new arrivals, as it has in Hong Kong and is being considered in New Zealand, to prevent cases with lengthy incubation. At least we know isolation works.

BLOOMBERG OPINION

Putting things right

 

It is sad that the Masungi Georeserve in Baras, Rizal is now the subject of controversy, considering its operator’s effort to reforest hundreds of hectares in the Sierra Madre range. The private company running the popular eco-tourism park has also been helping protect the Upper Marikina watershed against quarrying and logging, to help mitigate flooding in Metro Manila.

There is no law prohibiting the Department of Environment and Natural Resources (DENR) from asking for private sector help in reforestation and conservation efforts. After all, not just the State but all of us have the responsibility to protect the environment. However, soliciting private sector support in this regard can become problematic if not done right.

The DENR first ceded control over the Masungi Georeserve, a conservation area of about 300 hectares, to a private group maybe about six years ago. An eco-tourism park for public use started operating in the area in 2015. In 2017, the private group was said to have signed a Memorandum of Agreement (MoA) with then DENR Secretary Gina Lopez for conservation efforts to reportedly cover 2,700 hectares. That’s about the size of the City of Makati.

The Georeserve has become very popular since then, particularly among conservationists, and local and foreign tourists. In the area are caves, stalactite and stalagmite formations, limestone peaks, and rainforests. Masungi is also said to host a large selection of flora and fauna including a cycad (palm-like plant) endemic to Luzon, and a new subspecies of microsnail that lives only on its limestone boulders.

Despite the laudable intention of DENR, I am unsure how it can actually cede control, authority, and management over 2,700 hectares of public land to a private entity just on the basis of a Memorandum of Agreement, with benefits and proceeds from the “use” of that land seemingly going only to the private group. And, all in exchange for reforesting the area and guarding it from loggers and poachers?

Also, the area turned over to the private sector reportedly includes the Upper Marikina River Basin Protected Landscape, which I believe should always remain under government control. It also reportedly includes a portion of land said to be claimed by Dumagats of Antipolo as their Ancestral Domain. If only for these, and given the sheer size of public land involved, I think the DENR MoA deserves scrutiny and thorough review.

Also requiring scrutiny is how DENR has exercised oversight in Masungi since 2017, and whether the interest of the government, and, more importantly, the public, is protected by said MoA. No private group or interest should be accorded undue accommodation or advantage even in conservation efforts. After all, the responsibility of protecting forests and forest lands should not be a source of profit or advantage for anyone.

There should also be clear parameters for the DENR to “measure” whether the MoA, the continued control over the area by a private group since 2017, and all conservation efforts to date, have actually benefited Masungi and have contributed to either reversing environmental damage or contributed significantly to environmental repair and sustainable management of resources. This measure should not be based simply on the number of trees planted, or size of area reforested.

Moreover, there should be clear accounting of how much the private group makes from the operation of the Georeserve and where these earnings are spent; if taxes are being paid, if any are due; and how local and foreign donations, if any, have been spent and how these have actually contributed to conservation effort. Again, environmental protection and conservation efforts — on behalf of the government, and on government land — should not profit any private group.

A number of arguments have been raised publicly for and against the continued control by a private entity of the Masungi Georeserve. Like I said, I am not against the concept, provided it is done on the up and up. The entire process should be legal, transparent, and accountable. More important, it should not disadvantage anyone, nor provide undue advantage to its proponents.

For one, the rights of the Dumagats over their Ancestral Domain must be respected.

Two, the government should always retain authority and control over the management of protected areas; and that the private sector is only its extension.

Three, DENR should always exercise effective oversight to ensure that government interests are protected.

Four, there should always be transparency and clear accountability as to who should do what.

And five, all “profits” from the allowable “use” of the land — net of justified expenses — should go to the government and must be earmarked for conservation efforts.

Another issue is why Masungi Georeserve has been allowed to operate as an eco-tourism park? If the intention is conservation, and the effort is reforestation, then shouldn’t we keep the area pristine by keeping people out rather than inviting them in?

Reforest the area, then guard it against logging. End of story. There are many other places that can be turned into “nature parks” for tourists. Why do it in an important watershed area like Masungi?

In this line, maybe Congress can also consider creating a National Park Service like in the United States, which can be placed under the DENR. This agency can manage national parks and wildlife and forest reserves, and other conservation areas. And, as the agency implements conservation efforts, it can also operate some areas as eco-tourism parks for public use and enjoyment. All “profits” from such operations go to the government, to pay for the maintenance of these parks.

Without such an agency, and given DENR’s broad mandate and limited resources, the government will have to continue relying on private sector help and support for many of its conservation efforts. But, unless the rules are very clear, and the process clearly transparent and accountable, the government might again find itself troubled, like in the case of Masungi.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

Popularity ratings

WITH national elections coming up next year, surveys of political figures are becoming headline stuff, especially for those wanting to be included in the “presidentiable” list… without eliciting disbelief and wild laughter.

Periodically, the media come out with the results of the latest survey on the approval rating of the leader. This quarterly exercise by survey companies (with new ones chiming in) is intended to give a reading of the government’s performance rating. If declining, this is met with a disclaimer from the official spokesmen — we cannot be distracted by these numbers as there are so many issues we are addressing… that are actually affecting these ratings.

Of course, positive statistically improbable stratospheric ratings need no explanation. Never mind the sample size, randomly selected in the neighborhood.

But what is an approval rating?

The number expressed in percentages is really a net figure, thus is it called a net approval rating. The number is based on the responses of a sample, maybe a thousand respondents which is theoretically a cross-section of different socio-economic clusters to represent the population of over a hundred million, excluding fetuses. Their approval (we really love him, and his language is improving) is subtracted from their disapproval (he looks better with a face mask).

Perception is not necessarily based on any personal encounter with the subject. It is a secondhand evaluation based on conversations with Zoom mates, taxi drivers, chat groups, and the media coverage they all ingest in a relatively free press environment which is supposed to be objective, even with the elimination of certain personalities and outlets. The rating too is premised on the conviction that the travails being personally experienced, like the impact of the pandemic on jobs, lockdowns, and transportations, are indirectly caused by the leader.

Other public institutions like the legislative body and the courts are subjected to the same ratings and given scores on how they are perceived. Is it surprising that the ranking of trust and approval are high for those least reviled by media? With the pandemic, the institutions dealing with healthcare and the securing of the proper vaccines are likely to be in the spotlight and more severely judged. (Do you want to speak Chinese after being vaccinated?)

To test the reliability of surveys, why not include a non-existent bureau, say the “Office of Waiting in Line” (OWL) in the list of government agencies to be surveyed for approval ratings? Few respondents will admit never having heard of this obscure bureau which anyway does not exist.

Will the respondent put a question mark on it to indicate that he or she has not heard of this new bureau and cannot therefore render an opinion? (What the heck is that organization, Sir?) Instead, since this seems to be a heretofore unheard-of agency, the OWL may end up with a positive approval rating. (Has OWL done anything bad to you?) Not being even mentioned in media for criticism may be good enough to get high marks.

Ratings likewise exist outside of public surveys. They are quite routine in the private sector.

Corporate executives undergo performance ratings annually with their Key Results Areas (KRA). These are targeted indices like increase in market share, market caps for listed companies, and return on investment (ROI). These are pre-agreed and quantifiable milestones used as the basis for evaluation and performance bonuses. If targets are met, fine. If they are not, a variance analysis, or justification process (The competition crept up on us) kicks in to finalize a rating.

For public figures, like politicians and celebs (billboard ubiquity for celebrity endorsers help) media play a significant role in influencing ratings. It’s still public perception (not statistics) and maybe personal experiences (I lost my job) that influence ratings. The periodic rating can be understood by the palace occupant as a grade for his PR apparatus, and not necessarily him — unless it is very favorable.

For the rest of us not in the public limelight, popularity ratings are not as important. There’s only a small circle of people we try to impress. And it’s easy to check if we’re making the grade. Being turned down for an invitation for lunch or coffee too often? That’s easy to explain. They don’t go out. They’re waiting for the vaccine… even if they have no intention of lining up for it.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Coronavirus cases surpass 100 million worldwide

GLOBAL coronavirus cases surpassed 100 million on Wednesday, according to a Reuters tally, as countries around the world struggle with new virus variants and vaccine shortfalls.

Almost 1.3% of the world’s population has now been infected with coronavirus disease 2019 (COVID-19), the disease caused by the novel coronavirus, and more than 2.1 million people have died.

One person has been infected every 7.7 seconds, on average, since the start of the year. Around 668,250 cases have been reported each day over the same period, and the global fatality rate stands at 2.15%.

The worst-affected countries — the United States, India, Brazil, Russia and the United Kingdom — make up more than half all reported COVID-19 cases but represent 28% of the global population, according to a Reuters analysis.

It took the world 11 months to record the first 50 million cases of the pandemic, compared to just three months for cases to double to 100 million.

Around 56 countries have begun vaccinating people for the coronavirus, administering at least 64 million doses. Israel leads the world on per capita vaccinations, inoculating 29% of its population with at least one dose.

UNITED STATES
With over 25 million cases, the United States has 25% of all reported COVID cases although it accounts for just 4% of the world’s population. The United States leads the world in the daily average number of new deaths reported, accounting for one in every five deaths reported worldwide each day. With just under 425,00 fatalities, the United States has reported almost twice as many deaths as Brazil, which has the second-highest death toll in the world.

As the worst-affected region in the world, Europe is currently reporting a million new infections about every four days and has reported nearly 30 million since the pandemic began. Britain on Tuesday reached 100,000 deaths.

The Eastern European region, including countries like Russia, Poland and Ukraine, contribute to nearly 10% of all global COVID-19 cases.

Despite securing deals for vaccine supplies early on, many European countries are facing delays in shipments from both Pfizer, Inc. and AstraZeneca Plc.

ASIA AND AFRICA
In India, the nation with the second-highest number of cases, infections are decreasing, with almost 13,700 new infections reported on average each day — around 15% of its peak. Prime Minister Narendra Modi said on Friday India was completely self-reliant on coronavirus vaccine supplies as the world’s second-most populous country inoculated more than 1 million people within a week of starting its campaign.

China, which recently marked the first anniversary of the world’s first coronavirus lockdown in the central city of Wuhan, is facing its worst wave of local cases since March last year.

As richer nations race ahead with mass vaccination campaigns, Africa is still scrambling to secure supplies as it grapples with concerns about more-infectious variants of the virus first identified in South Africa and Britain.

According to the Reuters tally, African countries have nearly 3.5 million cases and over 85,000 deaths.

The South African variant, also known as 501Y.V2, is 50% more infectious and has been detected in at least 20 countries.

US President Joe Biden will impose a ban on most non-US citizens entering the country who have recently been in South Africa starting Saturday in a bid to contain the spread of a new variant of COVID-19.

Australia and New Zealand have fared better than most other developed economies during the pandemic through swift border closures, lockdowns, strict hotel quarantine for travelers and widespread testing and social distancing.

“We have the virus under control here in Australia, but we want to roll out the vaccine,” Australian Treasurer Josh Frydenberg told a news conference on Sunday. — Reuters

Japan’s COVID-19 crisis reawakens deflation fears as cash hoarding returns

TOKYO — A spike in coronavirus infections in Japan is driving local households to do what they have always done in times of crisis: spend less and save more, stoking fears of a deeper retail recession and grinding deflation.

Fifty-year-old Hiromi Suzuki is doing just that having quit her job at a Tokyo novelty store in December after the pandemic hit sales.

“I try not to spend money,” she said, walking her dog in the city. “Since I don’t go out much, I don’t buy cosmetics or clothes any more.”

Ms. Suzuki’s case exemplifies the trouble Japan faces as COVID state of emergency measures were reinstated in January, hitting spending on services, which makes up one-third of total consumption.

High-frequency data shows consumption began to falter even before January’s state of emergency, catching policymakers off guard and forcing both the government and central bank to cut their assessments on private spending.

“Service spending is slumping sharply,” Bank of Japan (BOJ) Governor Haruhiko Kuroda said last week. “We don’t expect Japan to return to deflation. But we need to keep vigilant on price moves given very high uncertainty over the outlook.”

While demand for some goods is holding up, analysts warn it won’t be strong enough to offset deflationary pressures caused by weak service spending.

“The economy will be in bad shape in the first quarter, which would push prices down,” said Hiroshi Ugai, chief Japan economist at JPMorgan Securities. “Prices will essentially remain weak this year.”

Despite a rebound after initial lockdown measures were lifted in May, consumption later lost momentum, falling more than 4% in November from January’s pre-pandemic levels, according to a BOJ gauge of spending.

That was mostly due to a 10% slump in services spending, which contrasted with an 8% gain in durable goods consumption.

The pain continued in December with consumption falling 11.5% from a year ago, mainly due to a 20% drop in services spending, according to research firm Nowcast and credit card company JCB.

Spending on eat-outs fell 36% and while dining at izakaya bars slumped 47%, both marking the biggest declines since May.

SQUEEZED
A government request for restaurants to close early means retailers are now feeling the pinch.

Monteroza, which runs several popular pub chains, said it was closing 61 of its 337 locations in Tokyo.

Meanwhile, beverage giant Suntory Holdings CEO Takeshi Niinami predicts that 30% of all bars and restaurants might fail in the coming months.

The average number of customers per restaurant fell 60% in January from a year ago, data by booking site TableCheck showed, faster than a 23% slide in November and a 40% drop in December.

And Japanese households aren’t spending much on other items either. A BOJ survey showed more than 70% of households don’t plan to change the amount spent to enjoy time at home.

Instead, they are hoarding cash in banks, as they have done through every crisis including the two decades of debilitating deflation that haunted Japan until 2013.

Bank deposits surged 9.3% in December from a year earlier to a record 803 trillion yen ($7.74 trillion).

Households are expected to have saved 45.8 trillion yen, or 8.5% of gross domestic product (GDP), last year, up from 14.5 trillion in 2019, estimates by HSBC showed.

“Unless fears over the pandemic are wiped out, the money piling up in bank accounts won’t be spent,” said Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute.

The BOJ has downplayed concerns about a return to deflation, arguing that companies aren’t cutting prices across the board as doing so would eat already thin margins.

Nonetheless, core consumer prices fell 1.0% in December from a year earlier, marking the biggest drop in a decade, a sign weak demand is heightening deflationary pressures.

Even fashion group Fast Retailing Co Ltd., seen as resilient due to brisk demand for its casual at-home attire, plans to lower prices of discount brand GU’s spring and summer collections.

While Fast Retailing is wary of cutting prices at its main Uniqlo brand, discounts are planned in coming months to reduce inventory, CFO Takeshi Okazaki said earlier this month.

The hope is that more households will act like Noriko Indo, an 81-year-old pensioner who keeps a tight rein on spending but occasionally indulges in luxuries like tuna sashimi, her favorite food.

“Once the pandemic is over, I’d like to splurge on travel and shop like crazy at a department store,” she said. — Reuters

Back to square one: When big economies will hit pre-virus GDP

IN CHINA, it’s already happened. The US should get there in the second half of this year. But Italians and South Africans may have to wait until 2023 — or even longer.

Those are the dates when output in some of the world’s major economies will return to the status quo ante-COVID-19 — the level achieved at the end of 2019, before the new coronavirus struck — according to the latest forecasts from the International Monetary Fund (IMF). The numbers reveal an uneven global recovery after the worst recession since World War II.

The pandemic has killed more than 2.1 million people, shut down businesses and frozen travel. It’s expected to widen inequality between countries and within them, and may push as many as 150 million people into extreme poverty, according to the World Bank.

China, the first major economy to be hit by coronavirus disease 2019 (COVID-19), was also the first to emerge from the slump. Somewhere around the end of June last year, according to official data, gross domestic product (GDP) surged back past its pre-pandemic level. By the end of 2022, according to the IMF, it’ll be more than 15% larger. Some forecasters expect China to overtake the US this decade as the world’s top economy.

The US looks set to bounce back fastest among developed economies, helped by one of the biggest infusions of fiscal cash in world history. Annual GDP should pass the end-2019 figure sometime around the middle of this year, the IMF projects. Japan is another wealthy nation that’s recovering fairly well — and with a shrinking population, its performance may look even better when the fund publishes per-capita numbers in April.

The rollout of multiple vaccines has boosted recovery hopes, and led the IMF to raise its forecast for world GDP this year. Still, even under that scenario, economies will generally be smaller than the IMF had expected in its last pre-COVID-19 forecasts, published a year ago.

And in several countries — developed ones like Spain and the United Kingdom, and emerging ones such as Mexico — GDP at the end of 2022 will likely still be smaller than it was before the pandemic. The new IMF predictions don’t go beyond 2022. But based on the forecast growth rates for the last quarter of that year, some economies — notably Italy and South Africa — may struggle to regain their pre-virus growth rates even in 2023. —  Bloomberg

Northport expresses readiness to compete in next PBA season

THE Northport Batang Pier are gearing up for the next season of the Philippine Basketball Association (PBA) set to begin in April.

Speaking at the online Philippine Sportswriters Association Forum on Tuesday, Erick Arejola, representative to the PBA board of governors, said they are in the process of signing up players who would form their team and awaiting word for them to start team practices in preparation for their return to action.

“We are currently signing up the players we need. They are doing individual training and we’re only waiting for the go-signal for team practices to resume,” the Northport official said, highlighting as well that “Our players are observing the health protocols.”

Mr. Arejola, who joined team owner and congressman Mikee Romero in the forum, also took the opportunity to debunk persistent rumors that they are going to trade away star big man Christian Standhardinger.

“We won’t be trading Christian, He’s a key part of the team,” said Mr. Arejola.

The Batang Pier acquired Mr. Standhardinger in a trade with San Miguel in exchange for fellow big man Moala Tautuaa, but rumors have it that the former is still bound for another team.

The latest deal being linked to Mr. Standhardinger is that involving Vic Manuel, who recently expressed his desire to leave the Alaska Aces.

Northport is also looking to fortify its roster by way of the talent-rich rookie draft this year.

“We’re waiting for the final list and then we will decide who to get,” he said.

In the 2019 rookie draft, Pido Jarencio-coached NorthPort selected collegiate standouts Sean Manganti in the first round and Renzo Subido in the second.

The Batang Pier, which finished 11th in the lone PBA tournament last year, have two picks (second and 11th) in the 2021 PBA rookie draft.

BOLICK RETURN
Meanwhile, Mr. Arejola said injured guard Robert Bolick is progressing well in his rehab and is looking forward to joining the team.

“He’s excited to be back on the court to help the team,” said the Northport governor of the 6-foot-1 guard from San Beda, who saw his banner rookie campaign in 2019 cut short by an ACL injury.

Mr. Bolick was angling to return in the pandemic-hit season of the PBA in 2020, but eventually decided against it on the advice of his doctor.

“His knee is getting stronger and he wants to be back,” Mr. Arejola said.

Prior to getting hurt, Mr. Bolick had PBA averages of 13.5 points, 5.1 rebounds and 4.9 assists in 32 games for Northport. — Michael Angelo S. Murillo

Bianca Pagdanganan: Passion with a purpose

FILIPINO LPGA golfer Bianca Pagdanganan — 2019 SEA GAMES WEBSITE

By Michael Angelo S. Murillo, Senior Reporter

FILIPINO golfer Bianca Pagdanganan’s journey in the sport took on an added dimension as she was recently tapped as an ambassador of Smart Sports.

It was a development that the pro golfer and 2018 Asian Games gold medallist said she welcomes, viewing it as an opportunity to do what she is passionate about but with more purpose.

“For me, this is something important. It’s something I believe in. When I play golf, when I’m out there on the Tour, I don’t only think of myself. I want to have a purpose. I want it to have a meaning,” said Ms. Pagdanganan, 23, at the virtual press conference on Tuesday announcing her addition to the Smart Sports family.

“I want the younger generation to have someone to look up to. When I was starting, I did not have that. I want them to believe that if they put in the work, they can also compete on the big stage against the best golfers in the world,” she added.

In Smart Sports, Ms. Pagdanganan joins other athletes like weightlifter Hidilyn Diaz and gymnast Caloy Yulo who the group is rallying behind in line with its mission of using sports in nation building and to inspire as many people as possible.

Also in the press conference was Smart head of sports Jude Turcuato.

Ms. Pagdanganan is coming off a solid run in her rookie season on the Ladies Professional Golf Association (LPGA) Tour in 2020.

She finished in the top 10 in two tournaments she competed in and earned a spot in the US Women’s Open in December. She has career earnings of $203,775 to date.

Looking back, Ms. Pagdanganan said her first year as a professional was a memorable one, full of lessons which she hopes to build on.

“My first year was exciting. I was nervous, of course, because I’m on a bigger stage and playing against the greatest golfers in the world. But that was part of the challenge, trying to believe in yourself and being comfortable with those surroundings against these veterans who’ve been in the Tour for years,” said University of Arizona standout Pagdanganan of her experience.

“It was more of a mental thing. College prepared me for all the travelling and time management. It was more of the mental challenge for me, trying to believe in myself. Eventually, though, you just get used to it. And you start to realize that you have what it takes to play the game.”

Ms. Pagdanganan is now girding for new challenges and quests in her career.

She begins her 2021 campaign next month, competing in the World Golf Championship set for Feb. 25 to 28 in Florida.

Playing for the Philippines in the rescheduled Olympics is something she is also keenly eyeing.

“Playing for my country is always one of the greatest things that golf has given me. Not everyone is given that chance. It’s different when you’re playing for something bigger than yourself. Playing in the Olympics has always been a goal of mine,” she said.

Ms. Pagdanganan is looking to maintain her spot inside the top 60 in the Olympic golf rankings to earn a spot in the Tokyo Games.

As per the latest rankings, she is number 41. Fellow Filipino golfer and her Asian Games teammate Yuka Saso, meanwhile, is at 21.

BVR’s Soriano welcomes new role as PNVFI official

BEACH Volleyball Republic (BVR) co-founder Charo Soriano is wearing another hat as a board member of the newly formed local volleyball association Philippine National Volleyball Federation, Inc. (PNVFI).

Ms. Soriano was one of the sport’s stakeholders voted to the board of the PNVFI, along with Ricky Palou, Tony Boy Liao, Karl Chan, Carmela Gamboa, and Fr. Vic Calvo, in elections held on Monday at the East Ocean Seafood Restaurant in Parañaque City.

PNVFI is headed by Ramon Suzara who was voted as president in the proceedings supervised by the Philippine Olympic Committee (POC) on the request of the International Volleyball Federation (FIVB).

The FIVB asked the POC to oversee an election among volleyball stakeholders in the country at the soonest possible time to settle once and for all the issue on who gets to officially represent the Philippines in the federation.

The PNVFI replaces the Larong Volleyball sa Pilipinas, Inc.

In her latest role, Ms. Soriano said she welcomes the opportunity to serve on the board and help foster unity among stakeholders and further push the growth of volleyball.

“Admittedly, the road that paved the way toward a united volleyball community had many pitfalls, but today is different — today is all about hope, unity, and commitment,” said Mr. Soriano in a statement.

“It is truly such an honor to be part of the federation and to materialize our responsibility to make the dreams of the Filipino volleyball athletes come true. At the end of the day, it is my personal calling and mission to give back to the sport that taught me so much about life — on and off the court,” she added.

Ms. Soriano, along with other Ateneo women’s volleyball players, founded BVR in 2015 with the aim of growing beach volleyball in the country.

It has been successful in its push of staging different events in various parts of the country, raising the profile of current players and discovering new ones.

Ms. Soriano was in charge of the country’s beach volleyball national team program for the 2019 Southeast Asian Games, where both the men’s and women’s teams won bronze medals. — Michael Angelo S. Murillo

1...6,9896,9906,991...12,670Page 6,990 of 12,670
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube