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Health department reports 1,849 new COVID-19 cases

The Department of Health on Friday reported 1,849 new coronavirus disease 2019 (COVID-19) cases on Thursday, bringing the total number of cases in the country to 521,413.

The death toll rose by 48 to 10,600, while the number of recoveries increased by 177 to 475,756, the health department said in a bulletin.

There are 35,048 active cases, 2.9% of which are critical, 85% are mild, 9.5% did not show symptoms, 2.2% are severe, and 0.46 are considered “moderate.”

The health department said 11 case duplicates were removed from the total case count. Of these, six patients recovered.

The agency said eight labs were not able to submit their data to the COVID-19 Data Repository System (CDRS) on Jan. 28. — Kyle Aristophere T. Atienza

Baguio chief’s resignation as contact tracing czar rejected

Baguio Mayor Benjamin B. Magalong tendered his resignation as contact-tracing czar after he admitted having attended a party in a Baguio City hotel where some guests flouted COVID-19 health protocols, but his resignation was rejected by officials of the government’s taskforce against the coronavirus, Malacanang said on Friday.

“We confirm that Baguio City Mayor Benjamin Magalong tendered his resignation as the government’s Tracing Czar,” presidential spokesperson Harry L. Roque, Jr. said in a statement.

“Mayor Magalong’s resignation, however, has not been accepted,” Mr. Roque said.

Mr. Magalong’s resignation came following his recent admission that he attended the birthday party of socialite Tim Yap at The Manor hotel in Baguio City where health protocols were violated. He also admitted that his wife, who attended the party with him, had also violated protocols by taking off her mask for a photo op with an actress.

Despite the controversy, Mr. Magalong still has the support and trust of the leadership of the task force leading the country’s pandemic response, said the Palace.

“He continues to enjoy the trust and confidence of the leadership of the National Task Force Against COVID-19,” Mr. Roque said.

“Moving forward, we trust that Mayor Magalong will continue to focus on his significant task of tracing those who have been exposed to the virus for proper processing and subsequent quarantine as we commit our support to him in his said colossal job,” Chief Presidential Legal Counsel Salvador S. Panelo said in a statement on Friday.

“Local contact tracing efforts have greatly improved and have become more efficient following the architecture and methodology that Mayor Magalong designed based on his experience,” he added.

This is not the first time that government officials have faced a public uproar for apparently flouting quarantine rules. To recall, Philippine National Police chief Debold M. Sinas, who attended a birthday gathering or “mañanita” despite a ban on mass gatherings back when he was the police chief of Metro Manila, was publicly defended by President R. Duterte. He was later promoted to lead the PNP, known for arresting civilians for violations of quarantine rules. Both Mr. Roque and Mr. Panelo were seen singing karaoke in public at times when the rules disallowed public gatherings and health authorities had warned against public singing for being one way of spreading the coronavirus. Both said that they followed health protocols while singing. — Kyle Aristophere T. Atienza

PHL says may benefit from any pivot to Asia by Biden administration

The Philippines may benefit if there is a renewed emphasis on Asia by the administration of US President Joe Biden, which could help act as a counterbalance to China in the region, Defence Secretary Delfin N. Lorenzana said on Friday.

“Being one of America’s allies in the Indo-Asia Pacific region, the Philippines may benefit from the Biden administration’s anticipated pivot to Asia strategy,” Mr. Lorenzana said in a pre-recorded speech shown at an online forum organized by the Foreign Correspondents Association of the Philippines.

A former US colony, the Philippines has long been a treaty ally of Washington, but ties have warmed with China and Russia since President Rodrigo R. Duterte took office in 2016 amid Beijing’s promises of billions of dollars of aid, loans, and investments.

The Philippines welcomed the prospect of a new era of relations with the United States, said Mr. Lorenzana, adding that the longstanding geopolitical rivalry between Washington and Beijing would continue to test the Philippines’ adeptness in balancing relations.

He said the Philippines must remain mindful of the role of the US “as the stabilizing force in the Indo-Pacific Region and a counterbalance to China.”

Maintaining a “stable international rules-based order” is in the best interest of all, Mr. Lorenzana said, adding that Manila would benefit from the US’ “pivot to Asia strategy” under the new administration.

US Secretary of State Antony Blinken said on Wednesday that Washington stood with Southeast Asian nations resisting pressure from China, which claims 90% of the strategically important South China Sea.

China does not recognise a 2016 international arbitration decision invalidating its claims in the waterway, where there are overlapping claims with the Philippines, Brunei, Vietnam, Malaysia, and Taiwan.

After years of reclaiming land and building military strongholds in the South China Sea, China has passed a law allowing its coast guard to fire on foreign vessels, if necessary, to protect its claims. The Philippines has lodged a diplomatic protest against the legislation.

The move adds to tensions in the waterway after the United States sent a carrier group through the area to promote “freedom of the seas” last week, unnerving China.

“I’m afraid that we have to now be more circumspect in the way we handle our relationship with both countries. We don’t want to be caught in the middle,” said Philippine ambassador to Washington Jose Manuel Romualdez in the same forum.

“Meanwhile, we will continue to reach out to new personalities, both in the Executive and Legislative branches – in order to forge a good, or even better, relationship with our long-standing and only military ally. The US Congress is now led by Democrats but we have friends from both sides of the political spectrum, and overall, the bilateral relationship remains in good shape,” Mr. Romualdez said.

Mr. Romualdez said the alliance will “stay the course” and continue to be strengthened as the Philippines and the US remain committed to working together on a range of issues, including countering terrorism and ensuring a free and open Indo-Pacific.

“True to his campaign promise of reviving US alliances and partnerships. It’s early days and we ought to give the new US President time to reach out to more of his counterparts,” he said.

“In a few days, the ASEAN Committee in Washington D.C. will have its first meeting with a key member of the Biden administration. We will be speaking with the White House’s Indo-Pacific Coordinator, Dr. Kurt Campbell, who some of you may know during his time as Assistant Secretary of State for East Asian and Pacific Affairs,” Mr. Romualdez said.

Mr. Campbell, in his writings, has stressed the importance for a balance of power and an “allied coalition” to address territorial disputes involving China. — Reuters, Kyle Aristophere T. Atienza

Over 2,000 km of tourism roads completed – DPWH

The Department of Public Works and Highways (DPWH) on Friday reported the completion of a number of road projects which aim to improve access and connectivity to tourism gateways and trade corridors.

In a televised press briefing, DPWH Undersecretary Maria Catalina E. Cabral said a total of P120 billion was allocated from 2016 to 2021 for the construction, improvement, and upgrading of about 4,147 km of roads leading to declared tourism destinations.

She said 2,168 kilometers of these roads were completed as of September 2020.

Ms. Cabral said a total of P42 billion had been appropriated for the construction and upgrading of about 1,467 km of access roads leading to industries and trade corridors across the country from 2018 to 2021. As of September 2020, 533 kilometers were completed, she said.

At the same briefing, Ms. Cabral said a total of P38.6 billion was released from 2016 to 2020 for the construction of 3,859 kilometers of farm-to-market roads identified by the Department of Agriculture. As of September 2020, 1,778 km of these had been constructed and improved.

She said a total of P2.4 billion was released from 2016 to 2019 for the construction and improvement of 149.83 kilometers of farm-to-mill roads as identified by the Sugar Regulatory Administration, saying that 86 km of roads under the project were constructed and improved as of September 2020.

Meanwhile, a total of P11.6 billion had been allocated from 2016 to 2020 for the construction of 317 evacuation centers, she said. “As of Dec. 31, 2020, 170 evacuation centers were completed, 132 evacuation centers are on-going construction, and 15 evacuation centers are under pre-construction activities,” she said.

“As of Dec. 31, 2020, a total of 85 Regional Evacuation centers were utilized as quarantine facilities, capable of providing health monitoring and treatment to about 3,339 persons under investigation or persons under monitoring due to COVID-19,” she added.

The P4.5 trillion national budget for this year sets aside at least 1.1 trillion for infrastructure.

“Infrastructure development remains the best driver of economic growth. Now that we are starting to rebuild our communities, we lean on infrastructure buildup to jumpstart our economy. With it’s multiplying effect in terms of employment and inclusive growth, the government is strengthening the ‘Build Build Build’ program to revitalize the economy from the COVID-19 pandemic,” Ms. Cabral said. — Kyle Aristophere T. Atienza

TUCP calls for wage subsidy in the wake of dismal GDP news

After Thursday’s announcement that the country experienced its worst economic decline since World War 2 last year, the Trade Union Congress of the Philippines (TUCP) on Friday called on the government to provide a wage subsidy to workers.

In a statement released on Friday, TUCP President and Party-list Rep. Raymond C. Mendoza said, “We have long been urging the Government to get ahead of the recession and put into place wage subsidies for those who are struggling to stay afloat. A wage subsidy is urgently needed, as the economy has not bounced back as predicted by the economic managers.”

The Philippine Statistics Authority on Thursday said that the country has suffered its worst gross domestic product (GDP) contraction since the Second World War, with the Philippine economy contracting by 9.5% in 2020.

This was largely due to the ongoing widespread lockdowns which were first imposed in March last year. A very stringent community quarantine which restricted most economic activity except for essential services was imposed during the first few months of 2020 as a way of controlling the coronavirus disease 2019 (COVID-19) pandemic.

The country has had over half a million COVID-19 cases since the pandemic started last year.

Labor Secretary Silvestre H. Bello III said on Thursday that they are not expecting any wage hikes this year as most establishments have been badly affected by the pandemic, making them unlikely to be capable of paying a higher minimum wage to workers. — Gillian M. Cortez

BSP-approved foreign loans surged to $17.7 billion in 2020

THE BANGKO SENTRAL ng Pilipinas (BSP) approved $17.7 billion in foreign loans last year mainly meant to support the government’s response to the coronavirus pandemic and economic recovery programs.

The BSP said in a statement on Friday that last year’s total is 82.5% higher than the $9.7 billion approved by the Monetary Board in 2019. It attributed the increase to larger bond issuances and program loans last year.

The three bond issues approved by BSP last year amounted to $6.6 billion, surging 88.6% from $3.5 billion in 2019. Meanwhile, BSP-approved program loans surged by 435.7% to $7.5 billion from $1.4 billion.

The Monetary Board is mandated by the Constitution to approve all government foreign loans to be contracted or guaranteed.

In the fourth quarter alone, the BSP approved $4.2 billion in foreign borrowings that were meant to fund initiatives related to the pandemic and disaster risk management, as well as the government’s general operations.
This was higher by 7.7% compared to the $3.9 billion the central bank okayed in the previous quarter.

Bulk of approved loans in the quarter worth $2.8 billion were for the government’s general financing requirements.

Meanwhile, $700 million were program and project loans for the government’s pandemic response. Loans for disaster risk financing ($500 million), customs modernization ($88.3 million), and water transmission improvement ($126 million) were also cleared by the Monetary Board.

The country’s external debt stock rose 5.2% to $92 billion as of end-September from $87.5 billion as of June, latest BSP data showed.

Meanwhile, foreign borrowings jumped 94.5% year on year to P583.64 billion in the January to November 2020 period, based on latest data from the Bureau of the Treasury.

The government is looking to borrow $3 trillion this year to help the pandemic-hit economy recover after it logged its worst contraction on record in 2020. — L.W.T. Noble

Central bank awards P100 billion in 28-day bills

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded P100 billion in short-term securities on Friday as the financial system remains flush with liquidity.

The BSP’s offer of 28-day bills was oversubscribed as tenders reached P150.9 billion. However, Friday’s bids were lower than the P162.8 billion in demand seen last week.

“The sustained robust demand for the BSP bills shows that financial system liquidity remains ample as cash demand continues to normalize,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The BSP has made full awards of its offer of 28-day bills for 18 consecutive auctions since it launched its weekly securities auctions in September.

Rates for the bills ranged from 1.6% to 1.63%, a slightly wider band than the 1.6285% to 1.645% logged a week earlier. This caused the average rate for the papers to settle at 1.6251%, slipping by 1.11 basis points (bps) from the 1.6362% logged on Jan. 22.

The 28-day securities and term deposits are among tools used by the central bank to gather excess liquidity in the financial system and to better guide short-term market interest rates.

“The 28-day BSP securities auction yield continued to ease after the latest contraction in GDP (gross domestic product) data, though with smaller contraction versus the previous quarter,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The economy shrank by 8.3% in the fourth quarter of 2020, bringing the full-year decline to 9.5%, data from the Philippine Statistics Authority showed.

The central bank’s easing measures amid the crisis infused about P2 trillion in liquidity into the financial system last year, which is equivalent to about 10% of the GDP. — LWTN

DoF backs transfer of PDIC to central bank

THE Department of Finance (DoF) has signified its support for a proposal to transfer the state deposit insurer — its attached agency — to the Bangko Sentral ng Pilipinas (BSP).

Finance Undersecretary Bayani H. Agabin on Friday said the DoF backs the proposed transfer of Philippine Development Insurance Corp. (PDIC) to the central bank from the department, adding that the BSP and PDIC “work quite well” together.

The proposal is part of an unnumbered bill now pending at the House that seeks to amend the charter of the PDIC.

Mr. Agabin said the measure, if passed, would streamline the overlapping functions of the PDIC and the BSP.

“The activities of the PDIC are very well coordinated with that of the BSP… We believe it is better for PDIC to be attached with the BSP for policy and program coordination,” he said during a virtual committee hearing of the House Committee on Banks led by its chair Junie E. Cua.

BSP Managing Director Arifa A. Ala said in the same hearing that the proposed amendment of the PDIC charter “will strengthen the coordination between the BSP and the PDIC.”

In the same hearing, the committee also discussed giving the PDIC the power to adjust the deposit insurance limit based on inflation or other economic factors.

PDIC provides a maximum deposit insurance coverage of P500,000 per depositor per bank. — GMC

Peso up as Wall Street rebounds

THE PESO strengthened against the greenback on Friday as US stocks rebounded following sharp losses.

The local unit gained three centavos to close at P48.08 per dollar on Friday from its P48.11 finish the day prior, data from the Bankers Association of the Philippines showed.

Week on week, the peso ended a tad higher than its P48.085 close on Jan. 22.

The peso opened the session at P48.07 a dollar, which was also its strongest showing for the day. It moved within a narrow range, with its worst showing for the day logged at just P48.085 against the greenback.

Dollars traded declined to $685.7 million from $1.188 billion on Thursday.

The peso gained versus the dollar following US stocks rebound overnight, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Dow Jones Industrial Average gained 0.99% or 300.75 points on Thursday while the S&P 500 rose 0.97% or 36.49 points to 3,787 on Thursday, Reuters reported. The rally was on the back of optimism caused by the earnings season which toned down fears caused by hedge funds selling long positions to cover shorts.

The US House Financial Services and Senate Banking Committees said on Thursday that they will have hearings to discuss the “Reddit rally” that put a charge into GameStop and other volatile stocks that were touted in an online forum. — LWTN with Reuters

Toyota Philippines expects industry sales to rebound this year

The car industry is expecting a rebound in sales this year, targeting to sell 320,000 units on the back of improved demand, Toyota Philippines officials said.

Toyota Motors Philippines (TMP) President Atsuhiro Okamoto said that the industry expects to sell more cars this year, although the projection may be impeded by newly imposed safeguard duties on vehicles.

This target is 32% higher than their estimation of 242,000 units sold last year. Toyota itself targets 130,000 units this year after selling 100,019 last year, which accounted for a 44.69% market share.

“Macro indicators point to the return of economic activity, especially for the latter half of the year,” Mr. Okamoto said in a press conference on Friday, referring to a return in remittances and other favorable market factors.

But he said market recovery will be adversely affected by safeguard measures imposed by the Trade department on imported cars. The department had slapped duties after its investigation found a link between a surge in imports and declining local jobs.

“TMP operates on the basis of a combination of locally produced and imported vehicles. We will maximize our efforts to promote sales of our Vios and Innova to cushion the impact of safeguard duties. We are counting on the support of Filipinos to buy Filipino,” Mr. Okamota said.

Toyota locally produces Vios and Innova in its Laguna facility.

Toyota Special Assistant to the President Vince S. Socco said that lower-priced imported cars will likely be most impacted by the duties, which are based on fixed amounts rather than rates.

The Toyota officials also commented on the competitiveness of Philippine car manufacturing after Nissan Philippines Inc. announced that it would halt production at its Laguna plant in March. Honda Cars Philippines closed its own plant last year.

“It’s a volume game. We need volume in this industry, and so the number of CBU (completely built up/imported) and CKD (completely knocked down/locally assembled) matter together to determine the size of the volume of the market for the head office to consider your country as an investment site,” TMP Chairman Alfred V. Ty said.

“It’s not just a one-to-one selling, but really it’s being able to assess the viability.”

Mr. Okamoto said Philippine competitiveness, compared to Southeast Asian neighbors, depends on cost competitiveness, productivity, and quality.

Philippine productivity is “competitive enough,” in Asia, he said, but cost and quality still need improvement.

The Trade department had said that the Nissan closure is proof of the need for safeguard duties on imports to protect local manufacturing. Industry group Chamber of Automotive Manufacturers of the Philippines, Inc. criticized the move, saying that there should be a balance between imports and assembly.

CAMPI and the Truck Manufacturers Association sales fell 39.5% to 223,793 units in 2020.

Workers group Philippine Metalworkers Alliance, which had petitioned for the safeguards, said in a recent statement that the duties are not enough to save the industry. The group said that the government must revisit its car industry development program and address the high costs of power and transportation.

Lucky Me! maker weighs $1-billion Philippines IPO

Philippine food maker Monde Nissin Corp. is exploring a potential initial public offering in Manila that could raise as much as $1 billion, according to people with knowledge of the matter.

Monde Nissin, which makes the best-selling Lucky Me! instant noodles in the Philippines and meat alternative Quorn in the U.K., has been discussing plans for a first-time share sale with potential advisers, said the people. The company is aiming for a listing as soon as this year, one of the people said.

Deliberations on the prospective deal are at an early stage and the company may decide not to proceed with a listing, the people said, asking not to be identified because the information is private. A representative for Monde Nissin declined to comment.

A listing would see the Makati-based firm joining National Grid Corp. of the Philippines, which is also seeking an IPO in the Southeast Asian nation to raise as much as $1 billion. Both deals, if they materialize, would surpass Robinsons Retail Holdings Inc.’s first-time share sale which raked in $621.1 million in 2013 — the largest in the country to date, according to data compiled by Bloomberg.

Monde Nissin, which also sells biscuits and baked goods, exports to more than 40 countries around the world, according to its website. It acquired Quorn Foods Ltd. for 550 million pounds ($751 million) in 2015. — Bloomberg

AC Energy lists new shares

AC Energy Corp. concluded its stock rights offering with the listing of 2.2 billion common shares at the Philippine Stock Exchange (PSE) on Friday, raising around P5.37 billion to fund at least six renewable energy projects.

“I am pleased that PSE is able to support this undertaking as funds raised in the rights offer will be primarily used for at least four solar projects in Luzon, one wind project, and (a) renewable energy laboratory,” PSE president and chief executive officer Ramon S. Monzon said during the company’s SRO listing ceremony on Friday.

AC Energy completed its rights offering on Thursday, selling 2,267,580,434 common shares at an offer price of P2.37 apiece to eligible minority stockholders in two rounds.

AC Energy Chairman Fernando M. Zobel de Ayala said the company has been “aggressively undertaking an ambitious transformation initiative supported by asset infusions, acquisitions and new greenfield projects.”

“We’re encouraged that these landmark strategies have allowed the company to remain resilient amidst the current global crisis. We remain focused on our turnaround plan to establish a sustainable growth plan with a strengthened balance sheet,” Mr. Zobel said.

Aside from the Philippines, AC Energy identified Indonesia, Vietnam, Australia, India and Myanmar as key target markets for renewables investments as it planned to scale up its portfolio in the coming years.

Shares of AC Energy on Friday rose 6.31% to finish at P6.40 apiece. — A.Y.Yang