How PSEi member stocks performed — January 22, 2021
Here’s a quick glance at how PSEi stocks fared on Friday, January 22, 2021.
Peso to climb before US Fed policy meeting
THE PESO is likely to strengthen versus the dollar this week on expectations that the US Federal Reserve will keep rates low to support the world’s largest economy.
The local unit finished trading at P48.085 per dollar on Friday, shedding 3.1 centavos from its Thursday close of P48.054. It also weakened by two centavos from its P48.065-per-dollar finish on Jan. 15.
The peso dropped against the greenback last week due to risk-off sentiment on higher coronavirus cases in the country, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
New virus cases rose by 2,178 on Friday, based on data from the Department of Health. It increased by 1,797 to 511,679 patients on Saturday, with 33,603 active cases.
For this week, Mr. Ricafort said peso-dollar trading will take cues from the Fed’s policy review this week.
The Federal Open Market Committee will have its first policy meeting for the year from Jan. 26 to 27.
Fed Chairman Jerome Powell said earlier this month that an interest rate hike will come “no time soon” as the country continues to be ravaged by economic problems and the health crisis, Reuters reported.
Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the central bank may keep supporting the P48-per-dollar level amid a likely slimmer trade deficit and an expected contraction in the country’s gross domestic product (GDP) last year.
A BusinessWorld poll of 18 economists and one institution last week yielded a median estimate of a 9.5% contraction in GDP for 2020 and an 8.5% decline in the fourth quarter.
If realized, the full-year estimate will match the higher end of the government’s -8.5% to -9.5% projection. The Philippine Statistics Authority will report official GDP data on Thursday.
For this week, Mr. Ricafort gave a forecast range of P48.03 to P48.14 per dollar while Mr. Asuncion expects the peso to trade within the P48 to P48.10 band. — L.W.T. Noble with Reuters
Stocks to move sideways ahead of GDP report
SHARES are expected to move sideways this trading week as investors await the release of 2020 gross domestic product (GDP) data on Thursday.
The bellwether Philippine Stock Exchange index (PSEi) ended at 7,045.83 on Friday, lower by 94.46 points or 1.32% from the previous trading day.
Week on week, the main index retreated 192.63 points or 2.66%, extending its decline.
The market’s average value turnover for the week rose 21% to P12.68 billion, while average net foreign selling expanded to P964.48 million.
Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market may move sideways this week as investors wait for the release of data on the economy’s performance last year.
He said trading this week will also depend on the ongoing spread of the coronavirus disease 2019 (COVID-19) in the country.
“Over the longer term perspective, investors continue to assess the coronavirus vaccine rollout especially amid the increase in cases in some provinces of the country,” Mr. Pangan said.
Recent bulletins from the Department of Health showed some of the provinces that posted the most number of new COVID-19 cases include Davao City, Isabela, Bulacan, Rizal, Cebu City, and Mountain Province.
Online brokerage 2TradeAsia.com said in a market note that the GDP data will push anticipation-driven volatility in the next few sessions.
“The economic team expects -5.5%; World Bank at -8.15%, while the Bangko Sentral ng Pilipinas (BSP) expects a more conservative -9%,” 2TradeAsia.com said.
“While negative figures may have already been baked-in in share price, any downside surprise will be detrimental to already directionless sentiment, particularly for cyclicals and recovery-correlated shares,” it added.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the market is seen to decline amid waning optimism and amid developments regarding the new COVID-19 variant.
“The further spread of the new strain in the country is expected to weigh on market sentiment since it poses the risk of returning to the more stringent social restriction measures, which is seen to derail our economic recovery,” Mr. Tantiangco said in a mobile phone message.
2TradeAsia.com said the market’s immediate support will be at 7,000, secondary at 6,850, and resistance at around 7,300 to 7,350.
“7,000 remains the support area that we have to watch, with 6,800 being the next major support level. 7,300 on the other hand is where resistance may be pegged at,” Timson Securities’ Mr. Pangan said.
“The PSEi may test its 50-day exponential moving average, a dynamic support, which is currently at 7,005.71. If it falls below that line, the market’s next support is seen at 6,900. Resistance on the other hand is seen at the 7,150-7,200 range,” Philstocks Financial’s Mr. Tantiangco said. — Revin Mikhael D. Ochave
Filipino tennis wunderkind Eala wins first pro women’s title
Filipino tennis wunderkind Alex Eala added to her growing list of achievements, winning her first International Tennis Federation (ITF) professional women’s title at the Rafael Nadal Academy World Tennis Tour on Sunday (Manila time).
Eala, 15, defeated hometown bet Yvonne Cavalle-Reimers in the finals, 5-7, 6-1 and 6-2, held at the Rafa Nadal Academy in Mallorca, Spain.
Despite facing an opponent 13 years her senior, Eala held her own especially in the last two sets where she dominated.
Cavalle-Reimers pulled the rug from under the Filipino in the opening frame, overhauling Eala’s 5-4 lead, to take an early cushion in the game.
In the next two sets, however, Eala would not relinquish momentum when she got her groove en route to the groundbreaking victory.
The win continued for Eala a solid run in the tennis circuit.
She won the Australian juniors doubles title in January last year then made the semifinals of the French Open juniors tournament later in 2020.
Along the way, she saw her world ranking steadily rise.
Eala is a scholar at the Rafa Nadal Academy and is the number 3 junior player in the ITF and currently ranked 1,180th in the world.
She is also a Globe ambassador.
Infra spending key to jobs, says think tank
By Kyle Aristophere T. Atienza
JOB CREATION this year will depend largely on how efficient the government is in administering its infrastructure program, with underspending cited as a key risk, according to an infrastructure think tank.
“The Duterte government should do what it can to deliver on its 2021 infrastructure projects as this boosts economic productivity at a time of high unemployment for a large chunk of our working class. This should, however, be contingent on our ability to fund continuing responses to the pandemic, such as the procurement of vaccines from various sources and social programs in the event of future lockdowns,” Terry L. Ridon, convenor of InfraWatch PH, told BusinessWorld Sunday via messenger.
Mr. Ridon warned that underspending “despite the pandemic” will further disenfranchise workers in the infrastructure sector.
Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua has said that unemployment will likely fall to between 6% and 8% this year, citing the boost to growth provided by the P4.5-trillion national budget, which sets aside at least P1.1 trillion for infrastructure.
“Underspending despite the pandemic will reflect poor budget management and implementation of funding that could have been used elsewhere, such as funding for other aspects of the coronavirus response,” Mr. Ridon said.
The Budget department estimates that infrastructure and other capital outlays declined by 50% to P40.3 billion in November. Infrastructure spending in November was also 29.4% smaller than the October total.
According to preliminary data presented by the Finance department on Jan. 12, overall government spending hit P4.205 trillion in 2020, short of the P4.23-trillion target.
“There is still time to deliver on infrastructure commitments, and we hope the government can address weak areas in implementation in the soonest time,” Mr. Ridon said.
Republic Act No. 11520, passed in mid-December, extended the validity of the 2020 budget to the end of this year for the financing of infrastructure projects that underwent procurement last year.
“Infrastructure spending will also be the showcase of the government’s legacy in the run-up to the 2022 polls,” Mr. Ridon said.
Herman Joseph S. Kraft, chair of the Department of Political Science at the University of the Philippines at Diliman, said the pandemic mitigation and the upcoming elections could serve as “stumbling blocks” for infrastructure spending this year.
“Political influence on decision-making, the prioritization of COVID-19 responses, and now the distraction of early campaigning for national elections mean that infrastructure projects, no matter how important, will have other interests competing with it for priority in the small amount of time remaining until the next elections,” he told BusinessWorld by telephone.
Mr. Kraft said the government should ensure that infrastructure spending is not used for local politics.
“Historically every end of every presidential term, budget spending and growth of the national product is always high, especially in the period nearing presidential elections,” Marlon M. Villarin, a political science professor at the University of Santo Tomas, told BusinessWorld in a Viber message.
He said the government must fully utilize spending to recover from declining foreign direct investment.
MIBON Foundation Executive Director Sonny A. Africa, said weak infrastructure spending even “six months since the end of the ECQ lockdown” only reinforces the inappropriateness of infrastructure as a stimulus measure.
“Not only is it import-intensive and boosting foreign economies rather than the Philippines, but absorptive capacity is apparently also low,” he told BusinessWorld via messenger.
Senator Panfilo M. Lacson has questioned the increase in the proposed budget of the Department of Public Works and Highways (DPWH) for 2021 citing low utilization. He said the DPWH’s unused appropriations totaled P81.9 billion between 2011 and 2018, with a disbursement rate of only at 37.8%.
“This is consistent with recent (Commission on Audit) reports of past years that the DPWH and (Department of Transportation) have a poor record of spending their annual budgets,” Mr. Africa said.
“This casts the doubt on whether the P1.1-trillion infra budget for 2021 will even be fully spent. The compulsion to implement infra projects to realize kickbacks in the run-up to the 2022 elections may still not be enough,” he added.
Mr. Africa said spending the same amount on cash subsidies will deliver more “stimulus bang for the buck” aside from also being more directly felt by more poor families.
Bicameral committee may be hard-pressed to meet deadline for key tax bill
THE bicameral session on a key tax reform bill continues to be subject to negotiations by the delegations sent by both chambers of Congress, with a key legislator suggesting that both chambers may be hard-pressed to meet a self-imposed January deadline for approving it.
Albay 2nd District Rep. Jose María Clemente S. Salceda said in a message to BusinessWorld Sunday that “We are trying” to meet the target of January approval, but added that both chambers are still laying down their positions on the measure’s final form.
“The Speaker (Lord Allan Jay Q. Velasco) has instructed me as Chairman (of the ways and means committee) to send the House positions to the Senate on a secretariat to secretariat conference,” Mr. Salceda said.
He did not elaborate, but such a conference may suggest both sides are still haggling on the measure’s fine details. The House has been pressing for a version of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act that contains more incentives for investment in the countryside.
CREATE, which has been repositioned as an economic stimulus bill after previous incarnations that only called for an overhaul of the corporate tax and incentives regimes, contains provisions that reduce taxes retroactively to the second half of 2020. Any delays in passage would give companies little time to prepare their taxes under the new rate structure by the April tax filing deadline.
CREATE seeks to lower corporate income tax to 25% immediately from 30%.
The measure was formerly called the Tax Reform for Attracting Better and Higher Quality Opportunities bill in 2018 and then Corporate Income Tax and Incentives Rationalization Act (CITIRA) after several revisions. It was repositioned as a relief measure for businesses after the pandemic.
The House of Representatives listed the passage of the CREATE bill as a priority measure when the Congressional session resumed on Jan. 18.
“We are working very hard because CREATE is far different from CITIRA,” he added. CITIRA was certified as urgent by President Rodrigo R. Duterte in March. — Gillian M. Cortez
Manila eyes more projects on clean energy under US President Biden
THE PHILIPPINES is likely to see more clean energy investment as an offshoot of the US rejoining the Paris Agreement, the industry’s regulator said.
In a text message, National Renewable Energy Board (NREB) Chair Monalisa C. Dimalanta said she remains hopeful that a US administration led by President Joseph R. Biden would produce more direct investment in the Philippines’ renewable energy (RE) sector.
“We definitely expect positive impact from the renewed active involvement of the US in clean energy and climate risk mitigation efforts. For one, we hope to get our share of increased US direct investment as well as technical support and assistance in the RE space in the Philippines,” Ms. Dimalanta told BusinessWorld Friday.
The Paris Agreement aims to keep the rise in average global temperatures below 1.5 degrees Celsius. On Friday, Reuters reported that Mr. Biden issued an executive order on Wednesday to bring the US back into the Paris accord.
During his campaign, Mr. Biden set a target of zero net emissions by 2050. On his website, he said he planned to “marshal an historic investment in energy efficiency, and clean energy to address bottlenecks and unlock America’s full clean energy potential.”
Michael L. Ricafort, the chief economist of Rizal Commercial Banking Corp., said that RE, electric vehicles and other related industries in the supply chain “could still continue to boom in the Philippines” in a Biden administration.
“Since the campaign, Biden advocated for clean/renewable power and opposed shale oil and other energy sources with adverse impact on the environment,” Mr. Ricafort said in an e-mail Friday.
Terry L. Ridon, convenor of public policy think-tank Infrawatch, Mr. Biden’s decision to rejoin the Paris climate agreement would lead to a “renewed and wider focus on financing large-scale green projects globally.”
“In the Philippines, this should push the government to undertake more green energy projects but ensure the least cost to the public, whether through lower generation costs or lower feed-in-tariff,” Mr. Ridon said in an e-mail Thursday.
University of the Philippines political science professor Maria Ela L. Atienza said that US businesses were not the only possible source of increased financial support and assistance.
“US businesses are not the only ones present in the Philippines. EU (European Union) businesses are also pushing for cleaner and greener environmental practices so you have both the US and the EU pushing for that. Until now, there (have been) strong investments in the Philippines. These are added bargaining chips on the part of the US and the EU when it comes to additional investments and development assistance for the Philippines,” Ms. Atienza told BusinessWorld by phone Thursday.
Some of the development assistance extended by EU countries focuses on green environmental policy, including business practices, she said. — Angelica Y. Yang
RCEP seen highlighting PHL manufacturing weakness
A RECENTLY SIGNED 15-country trade deal may not significantly benefit the Philippine economy and instead expose its lack of competitiveness in manufacturing, a senior equities research executive for Regis Partners said.
“I think it will continue to highlight that we’re a lot less competitive in terms of manufacturing than our neighbors,” Regis Partners, Inc. Chief Strategist Rafael P. Garchitorena said, in response to a question at a German-Philippine Chamber of Commerce and Industry online event last week.
“If anything, it might make import prices lower which could tame inflation, but it will just highlight again the gap between our manufacturing competitiveness against the rest of the region.”
The Philippines recently signed on to the Regional Comprehensive Economic Partnership (RCEP), which the Trade department aims to ratify this year. The trade pact includes China, Australia, New Zealand, Japan, South Korea and all 10 member-countries of the Association of Southeast Asian Nations (ASEAN).
The Trade department has been promoting the deal as advantageous for export market access, especially for garments, automotive parts, and agricultural products such as canned food and preserved fruit.
Mr. Garchitorena called the RCEP a “small net negative for the country.”
He said that Philippine participation in the trade bloc and the link with China is good for the country, but adds that it is difficult to say how it would translate to economic activity.
“The reality is (China is) now the growth engine of the world. Anything that gets us in that orbit is more likely better than none.”
The elements that reduce the competitiveness of Philippine manufacturing like the high costs of power or logistics challenges across the archipelago, he added, have nothing to do with open borders.
“RCEP is good. I don’t know if necessarily it will be a huge positive for the Philippines,” Mr. Garchitorena said.
RCEP becomes effective 60 days after six ASEAN member states and three other signatory states submit their instruments of ratification.
The Trade department is also seeking participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a deal signed by 11 countries in 2018. — Jenina P. Ibañez
ERC revises rules of procedure to allow more electronic filing, virtual hearings
THE Energy Regulatory Commission (ERC) said Friday that it added 12 new sections to its revised rules of practice and procedure (RPP), to allow the electronic filing of pleadings and virtual hearings, in order to facilitate continued operations during the pandemic.
In a statement, the ERC said the revised RPP amends the 2006 edition. It guides stakeholders appearing before the commission and participating in any proceeding before it. The revisions had not been posted to the ERC website at deadline time.
“The RPP responds to the requirements of the ‘New Normal’ setting. The new provisions on electronic filing and virtual hearings allow the ERC to continuously perform its mandate as we can remotely access and act on applications or complaints filed before our office, while protecting the health and safety of electric power stakeholders and that of our employees,” ERC Chairperson and CEO Agnes VST Devanadera said.
The updated RPP also sets out rules on prohibited pleadings, the cancellation of the notice of hearing due to force majeure; and public consultations, among others.
The ERC had posted a draft of the new rules last year, which went the rounds of public consultations.
In the statement, the ERC said that the new RPP complements two previous resolutions. One involves the implementation of legal e-processes while the other sets guidelines on electronic applications and virtual hearings.
Three weeks ago, the ERC said that the number of cases concluded last year rose 21%, aided by the adoption of videoconferencing for its hearings. It said that it was able to resolve 748 cases in 2020, compared to 617 in 2019. — Angelica Y. Yang
The Tax Reform Package 2: CREATE-ing opportunities for business
The Department of Finance (DoF) originally designed its tax reform package 2 to be revenue-neutral, gradually lowering the corporate income tax (CIT) rate while modernizing incentives and making them “performance-based, targeted, time-bound, and transparent” for companies.
However, the COVID-19 pandemic brought about unforeseen hardships and challenges to businesses. The DoF has refocused package 2 (now known as the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE) to make it more “responsive to the needs of businesses negatively affected by the COVID-19 pandemic, and to improve the ability of the Philippines to attract highly desirable investments that will serve the public interest.”
SENATE BILL NO. 1357 — CREATE
According to the DoF, the changes make the proposed bill the first-ever revenue-eroding tax reform package and the largest fiscal stimulus program for enterprises in the country’s history. In this light, the Senate approved in November Senate Bill (SB) No. 1357, known as CREATE, after which the bill was forwarded to the House of Representatives in December. The provisions in the bill will still be reconciled with the House of Representatives’ version, through a bicameral conference (bicam) and may still be subject to change.
The bill aims to improve the equity and efficiency of the corporate tax system by lowering the rate, widening the tax base, and reducing tax distortions and leakages, as well as developing a more responsive and globally competitive tax incentive regime that is performance-based, targeted, time-bound, and transparent. It also aims to provide support to businesses in their recovery from unforeseen events such as an outbreak of communicable diseases or a global pandemic and strengthen the nation’s capability for similar circumstances in the future. In addition, it seeks to create a more equitable tax incentive system that will allow for inclusive growth and generation of jobs and opportunities across the entire country and ensure access and ease in the granting of these incentives, especially for applicants in the least developed areas.
CREATE seeks to lower the CIT rate from 30% to 25% effective July 1, 2020. But domestic corporations with net taxable income not exceeding P5,000,000 and with total assets not exceeding P100,000,000, excluding land on which the particular business entity’s office, plant, and equipment are situated, shall be taxed at 20%.
While this reduction in the CIT rate will significantly cut into government revenue, the DoF said all firms, especially micro, small and medium enterprises (MSMEs), can use the tax savings to fund their operations and retain employees. The DoF also adds that foregone revenue from the reduction of the CIR rate constitute an unprecedented investment that shows the government’s resolve to vigorously fight the effects of COVID-19 on the economy and get businesses back on their feet as quickly as possible.
Currently, when the minimum corporate income tax (MCIT) of 2% on gross income is greater than the regular income tax of 30% on net taxable income, such MCIT of 2% is imposed on the corporation. Under CREATE, effective July 1, 2020 until June 30, 2023, the MCIT rate shall be one percent (1%).
FOREIGN-SOURCED DIVIDENDS
Another notable change covers foreign-sourced dividends received by a domestic corporation. Dividends received by a domestic corporation from another domestic corporation are not subject to income tax. However, foreign-sourced dividends received by a domestic corporation from investments abroad are subject to income tax.
Under CREATE, these foreign-sourced dividends received by a domestic corporation shall not be subject to income tax provided that 1) the funds from such dividends actually received or remitted into the Philippines are reinvested in the business operations of the domestic corporation within the next taxable year from the time the foreign-sourced dividends were received; 2) the dividends shall be limited to funding working capital requirements, capital expenditures, dividend payments, investment in domestic subsidiaries, and infrastructure projects; and 3) the domestic corporation holds directly at least 20% of the outstanding shares of the foreign corporation and has held the shares for a minimum of two years at the time of the dividend distribution.
This will encourage domestic corporations with substantial investments abroad to repatriate profits to the Philippines and use the funds to reinvest locally, helping to drive economic growth.
NON-PROFIT ORGANIZATIONS
Proprietary educational institutions and hospitals which are non-profit shall be imposed a tax rate of 1% on their taxable income from July 1, 2020 until June 30, 2023, instead of 10%. “Proprietary” is defined as a private hospital or any private school maintained and administered by private individuals or groups with an issued permit to operate from the Department of Education (DepEd), the Commission on Higher Education (CHED), or the Technical Education and Skills Development Authority (TESDA), as the case may be, in accordance with existing laws and regulations.
It is widely known that educational institutions and hospitals are among the entities badly affected by the pandemic. This reduction in tax rate for a limited time aims to help these hospitals and educational institutions cope with the crisis and retain employees.
ADDITIONAL CHANGES PROPOSED IN CREATE
Other salient changes proposed in the CREATE bill include the removal of exemption of offshore banking units (OBUs) and the repeal of the imposition of improperly accumulated earnings tax (IAET). In addition, the Regional Operating Headquarters (ROHQs) of multinational companies shall pay a tax of 10% of their taxable income, except that effective Dec. 31, 2021, ROHQs will be subject to the prevailing regular corporate income tax.
The sale or importation of prescription drugs and medicines for cancer, mental illness, tuberculosis, and kidney diseases shall be exempt from value-added tax (VAT) beginning on Jan. 1, 2021 instead of Jan. 1, 2023.
The sale or importation of equipment, raw materials and other items necessary for COVID-19 prevention, such as PPE, medication and FDA-approved vaccines, will also be exempt from VAT beginning Jan. 1, 2021 to Dec. 31, 2023.
FISCAL TAX INCENTIVES
Under CREATE, tax incentives may generally be available to certain enterprises provided their activities qualify under the Strategic Investment Priorities Plan (SIPP) to be issued every three years. The incentives can include, among others, income tax holiday (ITH) and special corporate income tax (SCIT) in lieu of all taxes-both local and national.
The duration of the ITH can range from four to 17 years depending on the location and industry of the registered project or activity, and other relevant factors as may be defined in the SIPP.
In CREATE, the period for availing of the ITH will be followed by the Special Corporate Income Tax (SCIT) rate, equivalent to 5% effective July 1, 2020, based on the gross income earned, in lieu of all taxes, both national and local. The period for availing of SCIT after the ITH incentive is 10 years across all categories.
Furthermore, registered enterprises are exempt from customs duty on imports of capital equipment, raw materials, spare parts, or accessories directly and exclusively used in the registered project or activity.
Registered enterprises are also exempt from VAT on imports and are entitled to VAT zero-rating on domestic purchases of goods and services directly and exclusively used in their registered project or activity located inside an ecozone or freeport.
Investments registered before the effectivity of CREATE will be governed by the following rules: 1) registered enterprises whose projects or activities were granted only an ITH prior to the effectivity of the CREATE will be allowed to continue availing of the ITH for the remaining period of the ITH as specified in the terms and conditions of their registration; 2) those that have been granted the ITH but have not yet availed of the incentive upon the effectivity of CREATE may use the ITH for the period specified in the terms and conditions of their registration; and 3) registered enterprises whose projects or activities were granted an ITH prior to the effectivity of CREATE and are entitled to the 5% tax on gross income earned incentive after the ITH will be allowed to avail of the 5% gross income earned incentive for 10 years.
Registered enterprises currently availing of the 5% tax on gross income earned granted prior to the effectivity of the CREATE will be allowed to continue availing of the 5% tax incentive for 10 years.
Given the devastating impact of the pandemic, passing the CREATE bill into law now appears even more urgent. It is hoped that its implementation and execution will play a key role towards economic recovery and eventual national economic resurgence.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Allenierey Allan V. Exclamador is a Tax Partner of SGV & Co.
COVID-19 cases near 514,000 with 10,242 deaths, says DoH
THE DEPARTMENT of Health (DoH) reported 1,949 coronavirus infections on Sunday, bringing the total to 513,619.
The death toll rose by 53 to 10,242, while recoveries increased 7,729 to 475,612, it said in a bulletin.
There were 27,765 active cases, 83.3% of which were mild, 9.1% did not show symptoms, 4.4% were critical, 2.7% were severe and 0.53% were moderate.
Davao City reported the highest number of infections at 99, followed by Quezon City at 98, Cavite at 74, Baguio City at 73 and Leyte at 63.
The agency said eight duplicates and one case that tested negative had been removed from the tally, while two recovered cases were reclassified as deaths. Five laboratories failed to submit their data on Jan. 23.
About 7.1 million Filipinos have been tested for the coronavirus as of Jan. 20, according to DoH’s tracker website.
The coronavirus has sickened about 99.4 million and killed about 2.1 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO). About 71.4 million people have recovered, it said.
On Friday, the Health department reported 16 more infections with the more contagious coronavirus strain that was first detected in the United Kingdom. Three of the patients had recovered, it said.
DoH said 12 of the cases were from Bontoc, Mountain Province and two patients were returning migrant Filipinos from Lebanon who arrived on Dec. 29.
The two other cases were detected in La Trinidad, Benguet and in Calamba City, Laguna. Both had no contact with any confirmed cases or travel history, the agency said.
A 29-year-old Filipino who arrived from the United Arab Emirates (UAE) on Jan. 7 was the first patient reported to have been infected with the coronavirus strain.
DoH said it was continuing surveillance and expanding capacities to detect all coronavirus variants. It also called on local government units (LGUs) to ensure strict monitoring and compliance with health protocols.
TAX-FREE BILL
Meanwhile, a senator has filed a bill seeking to exempt coronavirus vaccines imported by local governments and the private sector from tax.
Senate Bill 1988 by Senator Imee R. Marcos will exempt the vaccines from duties, value-added and excise taxes.
The exemption would help the government deliver a “clear, proper and immediate vaccination program for Filipinos,” she said in the bill’s explanatory note.
Some local governments and private companies are in talks with drug makers for vaccine orders.
The Food and Drug Administration (FDA) has approved Pfizer, Inc. and BioNTech’s coronavirus vaccine, which has a 95% efficacy, for emergency use.
The Philippines is expected to get 40 million doses of free vaccines in the first quarter of the year under a global program meant to give all countries equal access.
Senate President Vicente C. Sotto III said in a mobile phone message he would support Ms. Marcos’s bill. A similar bill has been filed at the House of Representatives.
Vaccine Czar Carlito G. Galvez, Jr. earlier said the government plans to buy 148 million doses of coronavirus disease 2019 (COVID-19) vaccines for as many as 70 million Filipinos this year.
Unilab, Inc. and Faberco Life Sciences, Inc. on Friday signed an agreement that will give the private sector access to its Covovax coronavirus vaccine.
In a statement, Unilab said Faberco, the distributor of Covovax in the Philippines, had appointed it as an authorized partner.
“Unilab and Faberco share the same vision and advocacy in terms of providing access to as many Filipinos at the soonest possible time,” Faberco founder Kishore Hemlani said in the statement. “We are prepared to help the Philippine government in protecting the people by enabling more access to COVID-19 vaccines through the private sector.”
“This initiative is not for a business purpose but to help the country secure more vaccine allocations,” Unilab Senior Vice President Jose Maria A. Ochave said. “The vaccines will be made available to the private sector, especially hospitals and essential industries, with the condition that they be made available at no cost to their employees.”
The vaccines may also be extended to employees’ families and their selected communities depending on the company’s financial capability, he said.
The government on Jan. 9 signed a term sheet with manufacturer Serum Institute of India and local partner Faberco for the supply of 30 million doses of Covovax. The vaccine is developed by US biotechnology company Novavax and manufactured by Serum Institute. — Vann Marlo M. Villegas and Charmaine A. Tadalan
Analysts urge Duterte to push extension of Bangsamoro council
By Kyle Aristophere T. Atienza
PRESIDENT Rodrigo R. Duterte should push lawmakers to extend the terms of Bangsamoro Region in Muslim Mindanao officials to prevent the armed conflict there from intensifying, political analysts said.
The President, who is from Mindanao, should certify as urgent several bills seeking to extend the life of the Bangsamoro Transition Council for three more years, Marlon M. Villarin, a political science professor from the University of Santo Tomas (UST), said by telephone on Sunday
“That is the pragmatic thing to do right now since Congress has few sessions left before it adjourns this year,” he added.
Congress adjourns indefinitely on June 4. The first regular elections for the Bangsamoro Parliament is set for May 2022.
Bangsamoro Chief Minister Ahod B. Ebrahim on Friday warned that splinter Muslim rebel groups might increase their resistance if the government fails to extend the council’s term until 2025.
He said the council needs more time to implement the region’s programs, including bringing Moro Islamic Liberation Front (MILF) fighters back to civilian life. It also seeks to win over more armed groups in southern Philippines.
The Bangsamoro Organic Law that took effect in 2019 established the new autonomous region that replaced the Autonomous Region in Muslim Mindanao. It was meant to increase Mindanao’s share in the country’s resources.
Once their terms are extended, Mr. Duterte should consider appointing people from other rebel factions to dissuade them from overthrowing the autonomous government, Mr. Villarin said.
Maria Ela L. Atienza, a political science professor from the University of the Philippines (UP), said she also supports the extension. “There is a limited time but we have to consult the people, peace builders and other stakeholders in Bangsamoro areas,” she said by telephone.
While Congress debates on the extension, Bangsamoro officials should consult local leaders and other splinter groups so the peace deal doesn’t go to waste, she added.
“There are what we call spoilers of the peace process,” Ms. Atienza said. “These spoilers do not only include factionalist rebel groups, but also politicians in Mindanao who don’t want to be part of the Bangsamoro. They also don’t want the Moro Islamic Liberation Front (MILF) to be running the Bangsamoro government.”
“If they are going to postpone the elections, they should consult the people,” she said. “We want the peace process because the area has suffered for a long time. MILF members of the council also need to prove that they can run a government,” she added.
Ms. Atienza said the public should be skeptical about moves to postpone the elections in the Bangsamoro region since politicians might use this to push the postponement of national and local elections next year.
Some politicians might also use the coronavirus pandemic as an excuse to defer the polls, she added.
Samira A. Gutoc-Tomawis, who heads a group representing evacuees, urged the government to look at systemic problems that have plagued Mindanao for decades.
The National Government should also investigate corruption allegations against Bangsamoro officials, she said by telephone. “Congress, and other institutions can investigate while talks on the extension are ongoing.”
Basilan Rep. Mujiv S. Hataman has sought a probe after allegations of corruption including “anomalous disbursements” in the region’s infrastructure projects worth P107 billion.