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Congressmen seek probe of coronavirus vaccine program

SEVERAL congressmen have sought an investigation of the government’s coronavirus vaccination program, citing a conflict between high-ranking Executive officials about vaccine orders.

There seems to be an “apparent conflict” within the Duterte administration about the procurement of the vaccines, representatives from the six-man Makabayan bloc of the House of Representatives said in a resolution.

Foreign Affairs Secretary Teodoro Locsin, Jr. earlier tweeted that someone had bungled a deal to buy 10 million vaccine doses from US drug maker Pfizer, Inc. for delivery next month.

He said he and Philippine Ambassador to the US Jose Manuel  Romualdez had secured the contract “but somebody dropped the ball.”

Health Secretary Francisco T. Duque III refuted the social media post, saying he signed the agreement on Oct. 20 after reviewing it for potentially onerous provisions.

Controversies “have already hounded the procurement  process, with alleged issues of supposed conflict of interest, corruption and  profiteering surfacing,” according to the House resolution.

Even if the vaccines are ordered on time, there are issues that need to be resolved such as the country’s supply chain and cold storage capacity.

The lawmakers also cited the Health department’s poor immunization track record. The Department of Health (DoH) has been “lagging  behind in its immunization programs, with only 10.6% of the  population fully vaccinated, they said, citing government data from 2017.

DoH reported 1,314 coronavirus infections on Tuesday, bringing the total to 462,815.

The death toll rose by 66 to 9,021 while recoveries increased by 247 to 429,419, it said in a bulletin.

There were 24,375 active cases, 82.6% of which were mild, 8.5% were symptomatic, 5.7% were critical, 2.9% were severe and 0.31% were moderate.

Quezon City reported the highest number of new infections at 93, followed by Rizal province at 89, Benguet at 78, Bulacan at 61 and Davao City at 60.

DoH said four duplicates had been removed from the tally, while 31 recovered cases were reclassified as deaths.

Two cases reported as deaths have recovered after validation. 10 laboratories failed to submit their data on Dec. 21, it said.

Health authorities on Monday said they have not detected a new coronavirus strain similar to a rapidly spreading variant that has caused cases to soar in the United Kingdom.

It did not see the need to impose a similar ban on British diplomats and investors who are allowed to come here, but the government would boost monitoring to prevent the virus from entering, it said.

Europe has closed its doors to British travelers after the UK tightened its COVID-19 restrictions for London and nearby areas, and reversed plans to relax restrictions during the Christmas holiday.

The coronavirus has sickened about 77.8 million and killed 1.7 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 54.7 million people have recovered, it said. — Vann Marlo M. Villegas and Kyle Aristophere T. Atienza

Duterte to sign P4.5-T national budget next week — spokesman

PRESIDENT Rodrigo R. Duterte will sign the P4.5-trillion national budget for next year on Dec. 28, according to his spokesman.

“The signing is on the 28th and this will be done in Davao,” presidential spokesman Harry L. Roque told an online news briefing in Filipino on Tuesday.

Five congressmen and five senators would be present at the ceremonial signing, he said.

The President flew to his hometown of Davao City this week to spend the holidays there. The palace earlier said Mr. Duterte would review the measure for potential vetoes.

The bicameral conference committee increased the allocation for the health sector by 42% to P287.47 billion. The funds will go to the Department of Health (DoH), Philippine Health Insurance Corp. and healthcare personnel, among others.

Under the budget, P72.5 billion will be set aside for the implementation of a coronavirus disease 2019 (COVID-19) vaccine program. Of this, P2.5 billion is under the DoH, while the remaining P70 billion consists of unprogrammed funds.

The amount is lower than the Senate-approved P83-billion allocation for vaccines, which included P8 billion under DoH and P75 billion in unprogrammed funds for vaccine procurement, distribution and storage.

Lawmakers had worked to avoid a repeat of the 2019 budget scenario that led to the reenactment of the 2018 budget for more than four months. The delay stemmed from an impasse between congressmen and Budget officials, and later with the Senate.

The 2019 budget was also reenacted for less than a week in 2020, after President Rodrigo R. Duterte signed the 2020 budget only on Jan. 6.

The largest share of the 2021 budget goes to the education sector with P708.18 billion, in line with the Constitution. The education sector’s budget, however, was 6.12% lower than initially proposed.

The second-largest chunk goes to the Department of Public Works and Highways (DPWH) with P694.82 billion, up by 4.12%, as the government boosts infrastructure projects to drive the sluggish economy.

Economic output slumped by 11.5% in the third quarter after a 16.9% contraction in the second quarter pushed the country into its first recession in nearly three decades. — GMC

Rail operations in capital to be cut on Dec. 24 and 31

THE OPERATIONS of Metro Manila’s major rails will be shortened on Dec. 24 and 31, which are both special non-working days.

Light Rail Transit (LRT) Line 1 will be open from 4:30 a.m. to 8 p.m. on Christmas Eve, and until 7 p.m. on New Year’s Eve, operator Light Rail Manila Corp. said in an e-mailed statement on Tuesday.

LRT Line 2 operations will be until 8 p.m. on Dec. 24 and until 7:30 p.m. on Dec. 31, operator Light Rail Transit Authority said on Facebook.

“We will shorten our operating hours on Dec. 24 and 31 in anticipation of a significant decline in ridership,” it said. Regular train operations will resume on Dec. 25 and 30.

MRT-3 will be open from 4:37 a.m. to 7:45 p.m. for north-bound stations on Dec. 24 and 31. For Taft Avenue or south-bound stations, the rail will operate from 5:17 a.m. to 8:25 p.m. — Arjay L. Balinbin

Nationwide round-up (12/22/20)

PHL to get 30M doses of Novavax

AROUND 30 million doses of the Novavax vaccine for the coronavirus disease 2019 (COVID-19), to be manufactured in India, will be sent to the Philippines next year.

Secretary Carlito G. Galvez Jr., appointed head of the government’s COVID-19 vaccine procurement and distribution program, said they are securing the deal this month with Novavax, Inc., a pharmaceutical company based in the United States.

Novavax will team up with the Serum Institute of India, which will produce the vaccines next year.

“They assured they will give us 30 million doses,” Mr. Galvez said in a televised meeting on Monday with the COVID-19 task force and President Rodrigo R. Duterte.

He added that a deal with UK firm Astrazeneca Plc may be finalized by the end of the month, which would ensure an additional 30 million doses of the company’s COVID-19 vaccines. — Gillian M. Cortez

IBP appeals to Duterte to take action vs rising number of lawyers killed

THE NATIONAL organization Integrated Bar of the Philippines (IBP) asked President Rodrigo R. Duterte to address the spate of killing of lawyers under his administration.

In a letter dated Dec. 17, the group said more than 50 documented lawyers have been killed since the start of the term of Mr. Duterte, himself a lawyer, in 2016.

“We appeal to our brother-lawyers in all branches of government who occupy positions of great authority and power to take concerted action to decisively address attacks on lawyers,” the letter read.

“We hope to hear from and work with you or the appropriate official from your good office toward a more coordinated, effective, and sustainable solution to the pressing problem,” it added.

The letter was also submitted to Vice President Maria Leonor G. Robredo, also a lawyer.

The IBP said they appreciate ongoing efforts to improve the criminal justice system but “much can still be done.”

For its part, IBP said it is implementing a Lawyer Justice and Security Program, which includes agreements with security, investigation, and law enforcement agencies, lawyer security training and assistance, a P25-million fund for crucial information and witnesses legal assistance, among others.

The program helped in the timely resolution of the killings of lawyers Eric Jay Magcamit in Palawan and Joey Luis Wee in Cebu City, it said.

“We hope to see similar dedication and resoluteness in other cases” it said.

The IBP noted that “certainty and timeliness of accountability and punishment is a proven antidote to criminality and impunity,” aside from addressing the root causes.

Justice Secretary Menardo I. Guevarra said he also received the letter and will invite the leadership of the IBP to coordinate action on the increasing number of lawyers killed. — Vann Marlo M. Villegas

Peralta asks law enforcers to ‘press on’ with probe of CA justice’s murder

SUPREME Court Chief Justice Diosdado M. Peralta condemned the killing of a former Court of Appeals justice who was reported missing in late October, urging law enforcers to continue with their probe on his death.

National Bureau of Investigation (NBI) Spokesperson Ferdinand M. Lavin, in a text message late Monday, said the body found in Tarlac on Oct. 30 was confirmed to be former CA Associate Justice Normandie B. Pizarro through DNA test.

“The killing and murder of any person is never tolerated by law. In fact, our courts will always condemn it,” Mr. Peralta said in a statement on Tuesday.

“I ask our law enforcement agencies to press on with their investigation so that the perpetrators of this barbaric act can be caught and brought to justice,” he added.

Justice Secretary Menardo I. Guevarra told reporters via Viber that the NBI is focusing on four persons of interest, one of whom “is willing to divulge what he knows.”

Mr. Guevarra also said the NBI  “is looking at all possible angles,” including the victim’s previous work at the appellate court.

Mr. Pizarro ruled on controversial cases, including the acquittal of pork barrel scam mastermind Janet Lim Napoles and affirming the dismissal of the enforcement of a Hawaii court ruling granting $2 billion damages to Martial Law victims, among others.

Mr. Pizarro retired in February 2018.

The Supreme Court in March 2018 ordered the former justice to pay a fine of P100,000 after he was found guilty of gambling, following an anonymous letter-complaint. — Vann Marlo M. Villegas

Over 2,500 bills processed in House so far

THE HOUSE of Representatives processed more than 2,500 measures since the start of the 18th Congress in 2019, of which 40 were signed into law.

Another 453 have been approved on third and final reading.

Under Philippine rules, a bill passed at the House of Representatives will have to be referred to the Senate. Both chambers must approve the law before submission to the President for signing or veto.

“Despite this challenging year, we remain unfazed and true to our mandate to enact laws that will improve the lives of the Filipino people. The accomplishments that we have this year would not be possible without the hard work of our Speaker, our colleagues both in the majority and minority, as well as our staff,” House Majority Leader and Leyte Rep. Martin G. Romualdez said in a statement on Tuesday.

Among the bills passed into law this year were the Bayanihan Acts, which contain response measures on the coronavirus crisis.

Mr. Romualdez cited that among the notable measures that hurdled final reading include the following: House Bill No. 8136, the proposed Coconut Farmers and Industry Trust Fund Act; HB 7302, an Act Rationalizing the Disability Pension of Veterans; HB 7068, the Tax Amnesty Act; HB 5989, which creates the Department of Disaster Resilience; HB 7679, which recognizes abandoned children with unknown parents as natural-born citizens of the Philippines; HB 7406, which strengthens and modernizes the Bureau of Fire Protection; and HB 7440, which improves the confirmation process for imperfect land titles. — Kyle Aristophere T. Atienza

Regional Updates (12/22/20)

Plebiscite for Palawan’s division into 3 provinces set on March 13

THE COMMISSION on Elections (Comelec) announced that the plebiscite that will determine the division of Palawan into three separate provinces will be held on March 13, 2021. In its Resolution No. 10682 dated December 16 and published on Tuesday, the Comelec en banc set the voting date as well as the plebiscite period from February 11 to March 20. During this period, authorized activities include campaigning for the law, fundraising events, and setting up of voting precincts. Palawan’s division into three provinces — Palawan del Norte, Palawan Oriental, and Palawan del Sur — is contained in Republic Act No. 11259, which was signed into law in April 2019. The plebiscite for its ratification was originally scheduled May 11 this year but was postponed due to the coronavirus pandemic. Registered voters in the affected areas can vote for or against the law’s implementation. — Gillian M. Cortez

NHA vows completion of delayed housing projects for Davao Region gov’t workers by 2022

THE NATIONAL Housing Authority (NHA) has committed to complete the projects for government workers in Davao Region by 2022 after facing delays due to restrictions brought about by the coronavirus pandemic. In a statement from the NHA Office of the General Manager, the agency said the target completion dates for ongoing projects under the Government Employees Housing Program (GEHP) have been pushed back, but assured beneficiaries that construction will be done within the next two years. There are four GEHP projects in the region, with two in Davao City and one each in Samal and Mati City. The housing projects are township-type complexes, with community facilities such as small market, covered multi-purpose court, transport terminal, livelihood training center, and health center, among others. The GEHP is intended to provide decent, affordable housing to government employees, including uniformed personnel. — Maya M. Padillo

BPI sees prolonged ‘W-shaped’ recovery for PHL, lagging region

THE recovery is expected to be prolonged and “W-shaped” in 2021, strengthening the case for more fiscal stimulus, according to Bank of the Philippine Islands (BPI) Lead Economist Emilo S. Neri, Jr.

“Production is responding positively to easing of quarantine measures. But the country’s recovery may continue to fall behind our ASEAN neighbors if reopening remains slow and the fiscal response remains too conservative,” Mr. Neri said in a statement.

A W-shaped recovery, so called because of the pattern traced by the growth line when charted, points to an unsteady pattern of expansion and contraction. In contrast, a V-shaped recovery indicates a sharp rebound after a sharp fall, while a U-shaped recovery describes a prolonged bottoming-out period before a recovery takes hold.

The International Monetary Fund policy tracker estimates that fiscal packages implemented by the Philippines are equivalent to 3.9% of gross domestic product (GDP). Meanwhile, Thailand has rolled out packages worth at least 9.6% of GDP, Indonesia 4.4%, and Malaysia 4.9%.

The P4.5-trillion budget bill, which contains many economy-stimulating provisions, has been transmitted to Malacañang and is awaiting the signature of President Rodrigo R. Duterte.

Meanwhile, the peso is likely to strengthen while interest rates will rise, but both movements will be gradual and manageable, Mr. Neri said.

The peso has been strengthening towards the P48 to the dollar level in recent weeks.

Gross domestic product declined 11.5% in the third quarter. The year-to-date performance was a decline of 10%.

The government expects the economy to contract by between 8.5% and 9.5% this year before recovering next year with growth of between 6.5% and 7.5%.

Meanwhile, the overnight reverse repurchase, lending, and deposit facilities are currently at 2%, 2.5%, and 1.5% after the central bank slashed rates by a total of 200 basis points this year.

“Inflation risk is low but supply disruptions need to be watched closely,” Mr. Neri added.

The consumer price index rose 3.3% in November, the fastest pace since 3.8% reading in February 2019. The Bangko Sentral ng Pilipinas expects headline inflation to average 2.6% and 3.2% for 2020 and 2021, respectively — all within the 2-4% target band. — Luz Wendy T. Noble

List of PPP projects expands by 14 to 233

KEY infrastructure projects funded via public-private partnership (PPP) increased to 233 at a total estimated cost of over P8 trillion, with 14 new projects added this year, according to the PPP Center of the Philippines.

The PPP Center said 176 PPP projects worth P1.289 trillion are currently being implemented, while the pipeline consists of 57 projects worth P7.159 trillion.

Five solicited additional projects are in the pipeline: the rehabilitation of the Mariveles Mental Wellness Center, the redevelopment of the Philippine Travel Center Complex, the construction of the Metro Cebu Expressway, the decongestion of the Bicol Medical Center Medical Arts Building and upgrades to its health services, and the redevelopment of a Makati property for the National Economic and Development Authority (NEDA).

Unsolicited projects include proposals to operate and maintain the Francisco B. Reyes Airport and the New Busuanga Airport, the New Metro Manila Food and Transport Hub project, the Tuguegarao City Septage Management project, and the expansion and maintenance of the Iloilo Commercial Port Complex and Dumangas Port. There are also two new unsolicited proposals made under the Build-Operate-Transfer Law: the Davao Sasa Port Modernization and the development, operation, and maintenance of General Santos Port.

The PPP Center said the water districts of San Pablo City and its private partner are also set to build the P103-million Lumbo Spring Bulk Water Supply Project.

The projects are currently in various stages of development, evaluation and approval.

“The Philippine PPP program remains bullish and supportive of the country’s ‘Build, Build, Build’ Program, contributing new PPP projects and offering viable solutions to the recovery efforts of the nation amid the COVID-19 pandemic,” it said in a statement Tuesday.

“We will continue to seek out more efficient ways to deliver our mandate and provide technical assistance to implementing agencies as they pursue PPPs both in traditional sectors — transportation and water supply — and emerging sectors — health, IT, solid waste management and climate resiliency sectors,” it added.

For projects in the pipeline this year, 39 will be implemented by the national government, with 27 of them unsolicited.

Socioeconomic Planning Acting Secretary Karl Kendrick T. Chua has said the government is open to more PPPs as an alternative funding option for infrastructure projects because government revenue is under strain due to the coronavirus pandemic.

The government started including more PPP projects to its infrastructure flagship program last year.

In the list of 104 flagship projects, 30 worth a combined P1.663 trillion will be funded through PPP, either fully or partially. The list of 104 is estimated to cost P4.13 trillion overall.

The PPP Center said it is also monitoring 89 ongoing projects by national agencies  and 90 being implemented locally.

Meanwhile, there are 18 local PPP projects in the pipeline, 12 solicited and six unsolicited, with majority areas about water supply, solid waste management, IT parks, transport and tourism.

“The PPP Center will continue to provide its technical assistance to [implementing agencies] and build a viable pipeline of PPP projects for 2021. This effort is in collaboration with the private sector as a committed partner working towards the country’s recovery from the COVID-19 pandemic and rebuilding the lives of the Filipino people,” it said.

It said technical assistance to agencies through the Project Development and Monitoring Facility (PDMF) is helping them prepare pre-feasibility studies, feasibility studies and other pre-investment activities needed to develop PPP projects.

It also extends help in the PPP bidding process and monitors project implementation.

Seven potential PPP projects have been approved for PDMF support since January: the Ormoc City Water Supply System, the Iloilo City Integrated Solid Waste Management Facility, the Bislig City Bulk Water Supply and Septage project, the rehabilitation of Kennon Road, the Mariveles Wellness Center, the NEDA Makati property redevelopment, and the Bicol Medical Center-Medical Arts Building project and upgrades to health services.

Additional support will also be given for the independent consultancy services on the operation and maintenance of the Clark International Airport Expansion Project. — Beatrice M. Laforga

Balance of payments data point to need for gov’t to intervene with more spending — legislator

THE current account surplus strengthens the argument for the government to mitigate the impact of the economic crisis by spending more, according to Representative Jose Ma. Clemente S. Salceda, chairman of the House Ways and Means Committee.

Mr. Salceda made his remarks in a statement issued in response to an economic bulletin released by the government showing a current account surplus of $8.7 billion, equivalent to 2.4% of gross domestic product, for the first nine months of 2020.

Mr. Salceda said a large current account surplus indicates a tendency to save rather than invest, which he called a “troubling sign” during an economic crisis.

“If we don’t induce firms to invest more by ramping up government spending, we’re in for extended economic sluggishness,” Mr. Salceda said, noting that the government must step in when this happens and engage in a bout of “countercyclical” spending.

The current account balance was in deficit last year but turned positive due to a slump in import demand. As a result, the peso strengthened from its end-2019 level of P50.8 to the dollar to around the P48 level.

“There is this misguided notion that having fewer imports than exports, and having more savings than investment, is always a good idea. Not during a demand-side crisis. And certainly not in our stage of development, where we need high-value goods and services to jumpstart new industries,” Mr. Salceda, who also chairs the House economic recovery cluster, said.

Mr. Salceda said a third stimulus package, or Bayanihan III, is needed to put money in people’s pockets. “Supply will follow if people have the money to spend on things,” he said.

Mr. Salceda said the extension of the validity of funds authorized under Republic No. 11194 or the Bayanihan to Recover as One Act (Bayanihan II) would give the country a chance to “redeem” itself by providing an opportunity to spend the funds allocated.

“The principle should be simple: Spend quick. Spend wisely. Spend enough,” he said.

Two versions of Bayanihan III legislation have been filed in the House.

Mr. Salceda’s House Bill (HB) No. 8059, or the proposed Bayanihan to Rebuild As One Act, allocates P247 billion for emergency response and economic recovery programs.

HB No. 8031 or the proposed Bayanihan to Arise as One Act, which was filed by Marikina Rep. Stella Luz A. Quimbo, provides for an additional P400-billion stimulus package incorporating recovery programs for parts of the country hit by typhoons late this year. — Kyle Aristophere T. Atienza

Renewable energy share declines sharply since passage of 2008 law

THE share of renewables in the Philippines’ energy mix has declined to just under 21% from nearly 34% since the Renewable Energy (RE) Act of 2008 was passed, posing a threat to power self-sufficiency because much of the non-renewable fuel requirement is imported, the head of the government’s renewables regulator said Friday.

“The share of renewables since the RE Act was passed has actually been declining. When the RE Act was passed, renewables… accounted for almost 34% of the power that’s supplying the system. Over the years, that has declined to (over) 20% at the end of 2019,” National Renewable Energy Board Chairperson Monalisa C. Dimalanta said in a webinar organized by the Center for Empowerment, Innovation and Training on Renewable Energy and other groups.

The Department of Energy’s Electric Power Industry Management Bureau (EPIMB) estimates that the share of RE was 33.9% in 2008. At the end of last year, the share was 20.8%. Meanwhile, energy self-sufficiency — the degree to which the power industry relies on indigenous resources — was 46.85 at the end of 2019, against 67.09% in 2008.

Initial estimates from the market operator indicate that the share of RE in 2020 was unchanged from a year earlier, Ms. Dimalanta said.

According to EPIMB data, the share of coal has risen to 54.6% at the end of 2019 from 25.9% since the passage of the RE Act.

“If we increase our RE share, then we become more energy self-sufficient. Why? Because we import most of our non-RE. In fact, practically all our non-RE sources are imported, except for gas,” Ms. Dimalanta said.

This year, the World Energy Council’s Energy Trilemma Index ranked the Philippines 76th in the world, with an overall score of 60.3. The index ranks countries by their ability to manage the so-called “trilemma” of providing secure, affordable and environmentally-sustainable energy. — Angelica Y. Yang

Cloud over mining taxes holding back nickel jobs creation, legislator says

THE uncertainty over how the mining industry is taxed must be removed in order to unleash the nickel sector’s potential for creating jobs, including in industries that depend on the metal like renewable energy and electric vehicles, a senior legislator said.

In a policy paper, “The Future in Nickel,” House Ways and Means Chair Representative Jose Maria Clemente S. Salceda, who chairs the House Ways and Means Committee, estimated the job-creating potential of the industry at 1.3 million over the next 10 years.

The Philippines remains a major producer of nickel with output of 420,000 metric tons in 2019, Mr. Salceda noted.

“Top nickel-buyer and electric vehicle manufacturer Tesla is already larger in market cap than all other major car manufacturers combined. Chinese electric vehicle manufacturers are also rising. Nickel will be very big, and as one of the world’s largest producers of nickel, we will be very important, if we are wise,” he said.

Mr. Salceda said the Philippines is unable to open new mines for nickel and copper due to delays in legislating a new fiscal regime for the industry.

Executive Order No. 79, issued in 2012, bars the signing of new mineral agreements “until legislation rationalizing existing revenue-sharing schemes and mechanisms” takes effect.

“By enacting a fiscal regime on mining, the country will be able to negotiate new, more responsible mining agreements that can keep its nickel supply sustainable,” Mr. Salceda said, adding that he expects House Bill (HB) No. 6135, or the proposed Fiscal Regime for the Mining Industry Act, to hurdle the chamber next year.

The measure proposes to increase the mining excise tax to 5% from the current 4%. It also establishes a sovereign wealth fund to be built up over six years.

“The setting up of the Mineral Resources Trust Fund in HB 6135 will also ensure that the country is able to generate savings from booms in the prices of mineral commodities such as nickel,” Mr. Salceda said.

Mr. Salceda also called for more domestic value-added to maximize the benefits from the extractive industry.

“In this regard, the urgent enactment of the country’s main instrument of industrial policy, the Corporate Recovery and Tax Incentives for Enterprises Act, is also extremely important,” he said.

Mr. Salceda said he will work closely with the Department of Trade and Industry and the Department of Environment and Natural Resources to ensure the industry’s sustainability. — Kyle Aristophere T. Atienza

From lockdown to unlocking growth: Investment and optimism paving way to a better normal

THE RAPID SPREAD of coronavirus resulted in a global lockdown that is still in effect today. The United Nations (UN) has forecast that global foreign direct investment (FDI) flows may decrease by up to 40% in 2020, which could have a severe impact on developing economies such as the Philippines.

But as we approach the end of a tumultuous year, we are grateful for many reasons in the Philippines, not least for the continued optimism and investment in our country that is enabling us to not only survive, but also positioning us to thrive in 2021.

From April this year, the Philippine government’s Board of Investments (BoI), in cooperation with our partner the UK government, set about promoting our country’s stimulus package to both domestic and foreign-owned companies based in the Philippines that have been affected by the virus. The campaign’s success speaks for itself — in a matter of months we’ve seen a 138% increase in company support, and a 405% increase in business engagements on specific channels.

Building upon our strong economic foundations, the Philippines firmly remains an attractive destination to do business, considered one of the top emerging economies for companies looking to expand in Asia by the likes of The Economist. Multilaterals including the World Bank and International Monetary Fund forecast a V-shaped recovery in our immediate future, with the Asian Development Bank anticipating a rebound of as much as 6.5% for the Philippines in the year ahead. Inclusive growth is being realized as further government stimulus measures are implemented and structural reforms take effect.

FDI plays an essential role in the strength of the Philippines’ economy, increasing by 40% in the three-year period to 2019. Our growth to date has been driven by our capacity and capability in leading sectors, including electronics manufacturing, automotive, aerospace, information technology (IT), and health. The Philippines already attracts a host of leading international businesses such as Siemens AG, Dyson, Mitsubishi, and Lufthansa Technik, all of which are established in the market.

There is reason for a positive outlook here as well, with foreign investment inflows rising for the third consecutive month of 2020. Philippine FDIs are projected to reach $7 billion in 2021.

This is made possible by our market’s competitive advantages and specifically cited by most locators, such as a highly skilled workforce, highly educated English-speaking people, an abundance of natural resources, and a growing domestic market, as well as our strategic geolocation in the heart of Southeast Asia. Rapid development of IT parks and economic zones in the Philippines and its focus on sustainable economic development through infrastructure are also key strengths.

But there is another perhaps less-known factor in the Philippines growth story, and one that is innate to our culture and our people: optimism.

It is why, with the aid of our UK government partner, we are proud to launch the Philippines’ first sustained multi-sector, multi-market investment brand — “Make It Happen in the Philippines.”

Specifically designed and developed to generate foreign investment leads, the new brand encapsulates the spirit of our country, our workforce, and our success, plus our “make it work” mindset that makes us a unique and attractive investment landscape in the ASEAN region for foreign investors. There is much evidence to support our country becoming the investment choice for businesses looking to go global.

Through our spirit of “can-do” optimism, combined with investment, we are determined to create a “Better Normal” out of the pandemic, where all our countrymen will have greener jobs and better and more sustainable livelihoods in a safe and secure post-pandemic future.

As the Duterte administration is working hard towards the Philippines’ recovery against coronavirus, we are committed to continuing our country’s economic growth story. That is why we are calling on our international friends to take a closer look at how they can partner with the Philippines. They will surely see how we can ably support their business expansion plans so that they too may “Make it Happen in the Philippines.”

 

Ramon M. Lopez is the Secretary of Trade and Industry.

Incorporating public health security into the National Security Strategy

On May 16, 2018, President Rodrigo Roa Duterte signed the Philippines’ first National Security Strategy (NSS) since it became an independent republic in 1946. The NSS provides a state’s overarching plan in addressing the country’s security in the form of guidelines for implementing the National Security Policy (NSP). It is a vital input for the integration and coordination of decisions and activities by the various government agencies involved in managing the country’s national security.

The 2018 NSS paints a pessimistic/realist picture of the country’s external environment. It notes that the Philippines has not been confronted by any direct threat of foreign aggression since the end of the Second World War. However, it warns that the current regional security environment has become increasingly uncertain and dangerous for the country. It observes that Pax America is about to end because of the geostrategic competition among the great powers in the South China Sea and the Pacific Ocean, and the transformation of international order from a unipolar to a multipolar one. It focuses on the perils of traditional geostrategic threats — competing interests of great powers and other countries converge, that require the Philippines to chart its role in an increasingly multi-polar system.

The 2018 NSS, however, overlooked a lurking security challenge — emerging infectious diseases (EIDs). The COVID-19 pandemic is the first major and unexpected biological upheaval that has rocked the 21st century global society. Prior to the 20th century, low population densities, infectious diseases, outbreaks of epidemics and pandemics were generally rare and were primarily driven by natural disasters, inter-state wars, revolutions, and other social upheavals. However, since the end of the 20th century, as the human population has increased exponentially, the global spread of EIDS has accelerated because of economic globalization, massive urbanization, revolution in transportation and communication, decline in biodiversity, and climate change.

PUBLIC HEALTH SECURITY IN THE 21ST CENTURY
As discussed during the recent Pilipinas Conference Session on responding to the emerging regional political and security environment, organized by the Stratbase ADRI Institute, health security emphasizes the need to take preventive measures to protect people from infectious diseases, distress of insufficient healthcare, and poor public infrastructure. Since the end of the Cold War, it became one of the most important areas of foreign, development and security policy in the past three decades as human security became an overarching contextual framework in several countries’ political health and foreign policy documents. This, in turn, led to the securitization of pandemics as a key feature of the global public health system. The global public health system’s goal in the late 20th and early 21st century is geared toward pandemic preparedness through health surveillance, along with emergence intervention to control epidemic outbreaks.

The World Health Organization (WHO) lies at the heart of the global system for preparedness, as a security paradigm, in securing the global community against potentially catastrophic pandemics. The WHO has been particularly influential in setting priorities for countries and regions that oriented toward preparedness. Preparedness emphasizes institutional readiness and emergency management, treating a variety of potential catastrophic threats — terrorist attacks, hurricanes, and pandemics — under the same category and rubric.

China, however, prevented the WHO from performing its role in managing the global spread of COVID-19. The Chinese government ordered a media blackout of the coronavirus outbreak in Wuhan City as it gave false information to the WHO about the nature of the COVID-19. It also falsely claimed that there was no clear evidence of human-to-human transmission. Beijing’s denial about the outbreak of the epidemic in Wuhan City, and the WHO’s failure to investigate the nature of the infection led to decisions that allowed hundreds of thousands of Chinese to travel abroad during the Lunar New Year. This prevented any meaningful measures to contain the virus inside China and allowed COVID-19 to ravage the global society.

INCORPORATING HEALTH SECURITY IN THE SECURITY DISCOURSE
That the Philippines is geographically close to a country that has been the source of two 21st century EIDS — China. This is further complicated by the fact that the Philippines possesses one of the most fragile public healthcare systems in East Asia. The current pandemic is a wake-up call for Filipinos to prepare themselves against future EIDs that will hit and ravage the nation in the 21st century. This will require the Philippines to develop its public health infrastructure and systems as critical strategic and security assets that require public attention, legislation, funding, and a whole-government approach. The Philippines must also ensure that the WHO should uphold its autonomy from influential and rich countries to make it better equipped in leading the global public health system against the future pandemics of the 21st century.

Hence, the next administration should incorporate public health security in the NSP, NSS, the National Defense and Military Strategies, and in the National Economic and Development Authority’s (NEDA) Five-Year Development Plan. Public health security focuses on taking preventive measures to protect the nation from current and more importantly future infectious disease, insufficient healthcare, and inadequate public health infrastructure. Operationalization of public health security in terms of policy will require the securitization of EIDS, and examining how the management of infectious diseases could converge with the broader configuration of national security and economic development.

 

Dr. Renato De Castro is a trustee and convenor of the National Security and East Asian Affairs Program, Stratbase ADR Institute.