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Cargo service linking General Santos, Davao with Sulawesi resumes

DAVAO CITY — The Indonesian-flagged vessel Gloria 28 has resumed the cargo service calling at General Santos and Davao as well as the port of Bitung in Sulawesi.

The vessel, which provides both charter and cargo services, was scheduled to arrive in General Santos on Dec 4, then make a stop in Davao before returning to Bitung on Dec. 7.

Bitung is about 44 kilometers from Manado, the capital of North Sulawesi.

Gloria 28, with a capacity of 256 twenty-foot equivalent units (TEUs), started on the Manado-Davao route in October 2017 as an alternative to the 500-TEU M/V Super Shuttle RORO 12 operated by Philippine firm Asian Marine Transport Corp.

The Davao-General Santos-Bitung roll-on, roll-off (RORO) service was relaunched on April 30, 2017 with Philippine President Rodrigo R. Duterte and Indonesian President Joko Widodo leading the event, in the hope of strengthening trade between the two countries.   

Flori Sumerah, managing director of Gloria 28 Global Business, said the vessel’s last voyage to Davao was in July, and the company hopes to make the trips more regular.

“For now there is no fixed or regular schedule but it can be followed up if needed,” she said in an e-mail interview.

The company also provides freight forwarding services and is an authorized customs broker for export and import in Davao as well as in Manado, Bitung and Tahuna, also in North Sulawesi.

With the shipping service’s revival, business chambers on both sides are hoping to sustain trade.

The Indonesian Consulate in Davao City together with the business chambers of Davao and North Sulawesi are holding a webinar on Dec. 10 to discuss ways of maintaining and strengthening ties.

Davao City-based Indonesian Consul General Dicky Fabrian, in a separate e-mail interview, said the consulate has recommended the creation of an online forum where representatives from both countries can meet regularly to discuss trade opportunities and other exchanges.

“It will offer more interaction (among) the business sector, academe, students, sports bodies, etc. that could boost trade, investment, tourism, and socio-cultural activities,” he said.

Mr. Fabrian said the consulate is also pushing for the revival of Davao-Manado flights by Garuda Indonesia, which were launched last year but halted in mid-March following travel restrictions imposed following the coronavirus outbreak.

“We hope after the pandemic, airlines from both countries can continue to serve the route,” he said. — Maya M. Padillo

NEA estimates over 12,000 rural sitios still lack access to power; asks for funding

MORE THAN 12,000 rural sitios still do not have access to electricity, with further funding required to meet the government’s 100% electrification target, the National Electrification Administration (NEA) said Saturday.

“We still need to energize 12,467 sitios. While the agency recommends (electrification) targets to be budgeted by the Department of Budget and Management, only a meager allocation is being given to the agency,” NEA Deputy Administrator for Technical Services Artis Nikki L. Tortola said in a statement.

According to the 2021 National Expenditures Program (NEP), P1.6 billion has been allocated for electrification projects in sitios. The total would cover only 1,085 sitios, the NEA said.

In the statement, the agency’s administrator Edgardo R. Masongsong said that additional funding must be appropriated to implement the Sitio Electrification Program in the coming years.

Mr. Masongsong said rural electrification is crucial for socioeconomic development.

“Rural electrification is not just about construction of lines reaching the last household in the EC (electric cooperative) franchise area. It is about social and economic development in the countryside,” he said.

On Saturday, the NEA said that it has identified a pathway for meeting its rural electrification target by 2022.

Some of these include accessing the availing of foreign grants and donations, using internally generated funds of electric cooperatives, entering into a qualified third party agreement, or accessing the Energy Regulation (ER) No. 1-94 program.

“Under the Qualified Third Party program, electric cooperatives can waive a part of their unviable areas to qualified private investors,” Mr. Masongsong said. He added that if there were no takers, the National Power Corp. (Napocor) can implement these projects through missionary electrification.

According to the Energy Department’s ER 1-94 program, host communities must receive one centavo for every kilowatt-hour (P0.01/kWh) of the total sales of power generating companies to fund electrification, livelihood and development projects in the area. — Angelica Y. Yang

PHL, Hungary sign deals to pursue water management, food projects

THE PHILIPPINES and Hungary have zeroed in on water management and food as areas for potential cooperation, the Trade department said following a meeting between the two countries’ trade representatives.

The second session of the Philippine-Hungarian Joint Commission on Economic Cooperation was held in Makati City last week, where memoranda of understanding and cooperation on food safety and water technology were signed.

The two sides, represented by Trade Undersecretary Ceferino S. Rodolfo and Hungarian Ministry of Foreign Affairs and Trade Deputy State Secretary for Export Development István Joó, discussed prospective investment projects.

“The Hungarian side is ready for cooperation on water management between the appropriate ministries and institutions with special regard to exchange of information and experience,” the Trade department said in a statement Sunday.

They highlighted integrated river basin management and wastewater management to address climate change effects on water, including drought. They also discussed flood management, water resource management, and water-related education.

The agreements included potential cooperation between the Hungarian Water Technology Corp. Ltd. and the National Disaster Risk Reduction Management Council as well as the Laguna Lake Development Authority.

The trade representatives also discussed agriculture cooperation, including animal husbandry and rice and crop biotechnology research.

Mr. Rodolfo said that talks will help build towards a potential free trade agreement (FTA) with the European Union.

“We hope to foster synergies based on each other’s strengths and our shared interests in a number of areas such as manufacturing because we see Hungary as a source of innovation-driven products. We invite Hungarian companies to use the Philippines as their base for expanding their operations in Southeast Asia,” he said.

The first round of FTA negotiations were held in May 2016. An EU-ASEAN Business Sentiment Survey last year said that enthusiasm from businesses on the potential trade deal have waned since talks stalled.

The Philippines presented opportunities for collaboration in pharmaceuticals, personal protective equipment manufacturing, and medical device production.

The two parties also discussed potential cooperation in transportation, information and communication technology, energy, and vocational education.

The first session of the Joint Commission on Economic Cooperation was held in April last year. The parties plan to hold the third session in Budapest. — Jenina P. Ibañez

Business mobility in the new normal

The new normal has created multi-layered and complex conditions for businesses. At the onset of the pandemic, organizations were forced to implement remote working procedures; and now, businesses are considering appropriate strategies to enable their people to safely return to work. There have also been challenges around business travel and mobility, with domestic and international travel limitations severely affecting many companies. Based on the EY article, Transforming the Mobility Function in the Wake of COVID-19, 98% of companies have suspended or outright cancelled international business travel, and travel industry forecasts indicate a two- to three-year timeline before recovery and a return to pre-COVID-19 level operations.

However, the bigger picture is far more complicated. The swiftly evolving situation has exposed weaknesses in the mobility programs of many businesses, especially when it came to real-time data and information-sharing. Simply put, many organizations were caught unprepared. According to a report conducted by EY and the RES Forum, Now, Next and Beyond: Global Mobility’s Response to COVID-19, only 49% of the respondents had a major incident response policy in place when the pandemic hit.

Being able to reach and manage a mobile or remote workforce posed a major hurdle. People also found themselves unable to cross borders, becoming stranded in countries beyond their permitted time, or working outside their country of tax residence.  These situations created a slew of immigration and compliance issues. Fortunately, the situation surrounding stranded and overstaying workers was alleviated in part because governments implemented protective measures on work permits and immigration status.  Nonetheless, any leniency is bound to be removed eventually.

In the Philippines, the Bureau of Immigration acted to suspend entry into and departure from the Philippines of both Filipino and foreign nationals at the onset of the pandemic. Lately, however, these rules have been relaxed with policies instituted to safeguard the interests of the public. Outbound and inbound travel now require the usual exercise of precautionary measures, COVID testing, and immediate quarantine in an accredited facility after arrival, among others. The Bureau of Internal Revenue has also issued some guidelines to address concerns and provide some tax relief to non-resident workers who become saddled with unexpected tax burdens from being stranded or quarantined in the Philippines.

From a wider perspective and for businesses to move forward in the near term, there are four key areas that must be considered for a more optimal and comprehensive transformation of the mobility function.

BORDER CONTROL
As restrictions begin to ease, the risks to the workforce increases commensurately. This makes the border situation central to any mobility program. Companies need to monitor these carefully, particularly the quarantine periods enforced in countries where borders are already open. In some cases, quarantine only applies to arrivals from “blacklisted” countries, which can be implemented at very short notice.  An example was when the UK suddenly added Spain to its quarantine list in July.

Being granted entry to another country presents new challenges that organizations have to consider. One place to start is to establish a business’s risk tolerance and a comprehensive understanding of actual risks. Under what circumstances are they willing to allow travel for their employees? What policies will have to be implemented should employees refuse to travel for health and safety reasons?

Policies will need to be communicated to the right corporate decision-makers who may not be aware of the risks that are familiar to the head of mobility or immigration. Ensuring that proper processes and policies are established will be absolutely critical as global businesses execute strategies and objectives while navigating this period of economic disruption.

VISAS AND PERMITS
For the most part, countries have been understanding of situations regarding permits and visas, particularly for applications and renewals. In fact, 57 countries acted swiftly by granting automatic extensions for migrant workers and stranded business travelers to protect them from overstaying. However, organizations have to note that any leniency will be, by necessity, limited in duration as the pandemic runs its course. New procedures may be implemented, and it could be easy to overlook changes. This makes the continuous monitoring of visa and permit policies critical to ensure that any necessary paperwork is kept up-to-date and compliant in order to avoid any penalties or travel restrictions.

TAX OBLIGATIONS
Whether due to business or personal travel, many employees were stranded in foreign countries during the pandemic, some beyond the expiry of their visa or contracts. Naturally, many of these people continued to work for their respective companies, which in turn, triggered potential tax penalties.

Providentially, many countries were understanding of the situation. With insights from the Organisation for Economic Co-operation and Development (OECD), several countries issued guidance to address concerns like social security, income tax, and permanent establishment. However, this was merely guidance and not clear recommendations, which led governments to rely on bilateral agreements and updates from local tax administrations.

One key tax risk is the question of permanent establishment. A stranded executive may trigger permanent establishment by simply continuing to work remotely from a temporary location. It then becomes a challenge for any company to determine whether there actually is a permanent establishment; and consequently, to determine if such a situation triggers a corporate tax filing obligation.

There could be significant penalties for failure to file or for mistakes in filing, and a sizable taxable presence may very quickly be created. The environment will become more challenging as borders open and regulations are reinstated, but companies may still want their workforce to stay home and may not push seconded national experts (SNEs) to return to their “home” locations. This may need policy changes on behalf of the businesses, the implementation of virtual assignment policies, and a real-time view of any tax agreements between countries.

LOCAL SAFETY CONSIDERATIONS
When borders reopen to allow business travel and mobility, companies will have to prioritize issues of employee health and safety. They will need to know and require employees to follow local rules on social distancing, sanitation, occupation limits for locations and public transport, among others. These rules may change regularly and will require constant tracking and communication for people to be adequately informed and safeguarded.

Companies should consider leveraging technology to address this risk. For example, EY LLP entered an alliance with WorldAware, to enable the delivery of alerts and regulations for the safety of business travelers, crucial trip data, and a better understanding of travel-related compliance during and after the pandemic.

TRANSFORMING THE GLOBAL MOBILITY PROGRAM
Business travel and mobility will never be the same post-pandemic, according to the findings of the Now, Next and Beyond: Global Mobility’s Response to COVID-19 report which projects how significantly the landscape is expected to shift. Around 72% of surveyed organizations believe business travel will be reduced, 52% believe that short-term assignments will decrease, and 58% surmise that long-term assignments will become less frequent. More than 82% of respondents see increased use of virtual work, where assignees can complete the objectives of a foreign assignment without physical relocation.

The mobility function and the HR team will need to be more closely aligned with the business, and any cross-border activity will have to be intrinsically linked to the business objectives of the organization. “Business critical” will need to be revisited in the context of defining the specific purpose of a business trip and its Return on Investment.

The opportunity to transform does not signal the end of mobility — it will spur the creation of a leaner, more considerate mobility program that focuses on increased value creation for the organization while keeping the wellbeing of its people in check at all times.

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.

 

Czarina R. Miranda is a Tax Partner and the People Advisory Services Leader of SGV & Co.

COVID cases near 440,000, recoveries at over 408,000

CORONAVIRUS cases increased by 1,768 on Sunday, bringing the total to 439, 834, according to the Department of Health’s (DoH) daily report.

The number of new recoveries, usually higher on Sundays than the rest of the week, reached 9,062 for a total of 408,634.

The death toll rose by 29 to 8,554.

There were 22,646 active cases, 6.1% of which were critical, 6.2% did not show symptoms, 3.1% were severe, and 0.345 were moderate.

Quezon City reported the highest number of cases at 112, followed by Laguna at 94, Rizal at 90, Davao City at 71, and Benguet at 69.

The DoH said three duplicates were removed from the total case count, while 10 cases previously tagged as recovered were reclassified as deaths.

Twelve laboratories were not able to submit their data on Saturday, it added.

VACCINE TRANSPORT
Meanwhile, Quezon City 2nd District Rep. Precious H. Castelo urged the government to tap local air carriers for the transport and delivery of coronavirus disease 2019 (COVID-19) vaccines into and around the country.

“I am assuming that we will get the vaccines from where they are being produced. Instead of foreign carriers, let us use local airlines to help them earn more at this time of pandemic so they would keep their employees,” she said in a statement over the weekend.

Ms. Castelo said foreign airlines could be tapped if their Filipino counterparts could not meet the logistical requirements for transporting the vaccines.

“It would take more than 50 Boeing 777 freighters to fly 60 million doses to Manila,” she said.

When the vaccines arrive in the country, the next challenge is transporting these to the different regions, provinces, cities, and towns, which would also require the use of local airlines, she added.

“The government can help them avoid shedding more manpower if it can engage their services in the delivery of the vaccine,” the lawmaker said.

The three main air service providers in the country are PAL Holdings, Inc., Cebu Pacific Air, Inc., and Philippines Air Asia, Inc. — Kyle Aristophere T. Atienza

Biden-led policy: ‘Continuity, more careful diplomacy’

THE DIPLOMATIC policy of the United States under President-elect Joseph R. Biden, Jr. will not steer too far away from the Trump administration’s stance on security and socio-economic issues in the Philippines as well as the Asia-Pacific Region, an analyst said.

“I expect continuity and more careful diplomacy on the South China Sea,” Ernie Bower of the Center for Strategic and International Studies said in a forum, hosted by Stratbase Albert del Rosario Institute.

“That doesn’t mean a diminishment of the US commitment to the Philippines’ free access or standing up to Chinese, what is seen by many as Chinese coercion in the South China Sea, but it will be strength with diplomacy rather than just strength and blunt words.”

Mr. Biden has been declared as the new president of the US after the Nov. 3 elections and is set to be inaugurated on Jan. 20 next year.

The US, under incumbent President Donald J. Trump, had asserted that China’s reclamation activities in the South China Sea were unlawful, citing the 2016 Hague ruling that rejected China’s historical nine-dash nine claims.

In a recent visit to Manila, White House National Security Adviser assured the US will maintain its commitments to the Philippines and other states in the region under a new administration.

Moreover, Mr. Bower said the incoming US leader is expected to bring more investment and diplomacy in Asia as he sees Mr. Biden as someone more cautious in US policies relating to the South China Sea.

“You’ll see a return of middle management in US engagement in Asia, and what I mean by that is US departments in Asian agencies will have an assistant and undersecretaries, deputies, assistant secretaries empowered to focus on Asia,” he said, noting this will include the Philippines and other member states of the Association of Southeast Asian Nations (ASEAN).

Further, he said the Biden administration will have a more multilateral approach, even in its response to the coronavirus pandemic.

There will be “more ASEAN centrality, less America-first,” he said, adding “the US will look to build teams and coalitions, cooperate, and not pursue American-only strategies.” — Charmaine A. Tadalan

Forum highlights urgency of reducing single-use plastics

THE PLASTIC pollution in the country has aggravated the level of floodings in various areas in Luzon as monsoon rains and recent typhoons swept through the country, a lawmaker said over the weekend.

Single-use plastics “pollute the ocean, rivers, and even canals,” House Deputy Speaker and Antique Rep. Loren B. Legarda said at the webinar series titled Stories for a Better Normal: Pandemic and Climate Pathways.

“Producing plastics also generates greenhouse gas emissions, which exacerbates global warming and climate change, which cause erratic rainfalls and rising sea levels,” said Ms. Legarda, a long-time advocate of environmental protection.

Citing a report from the Global Alliance for Incinerator Alternatives, she said Filipinos use 59.7 billion pieces of sachets, 17.5 billion pieces of shopping bags, 16.5 billion pieces of plastic labo bag, and 1.1 billion diapers yearly.

The forum hosted by Ms. Legarda gathered advocates against single-use plastics to “urgently’ reduce plastic pollution and raise awareness on the negative effects of single-use plastics on public health, environment, and climate.”

The ongoing online discussion is organized by the lawmaker’s office and the Climate Change Commission, with support from the Institute for Climate and Sustainable Cities, The Climate Reality Project-Philippines and Mother Earth Foundation. — Kyle Aristophere T. Atienza

Nationwide round-up (12/06/20)

Solon bats for senior citizen-, PWD-friendly infra projects in 2021

HOUSE Deputy Majority Leader Bernadette Herrera-Dy said all infrastructure projects that will be implemented next year should be accessible to all, including senior citizens and persons with disabilities (PWDs). Ms. Herrera, who represents the Bagong Henerasyon party-list, said she fully supports the suggestion of some senators to include a provision in the proposed 2021 budget that all infrastructure projects — from construction to repair and rehabilitation — must be senior citizen- and PWD-friendly. “While there are several laws that promote accessibility to seniors and PWDs, this is seldom applied, making it difficult for this segment of society to access buildings and utilize various facilities and even public transport,” she said in a statement. Ms. Herrera is part of the 21-member House of Representatives contingent to the bicameral conference committee on the proposed P4.5-trillion national budget for 2021. — Kyle Aristophere T. Atienza

Task force on zero hunger seeks stronger public-private partnership 

THE government’s Inter-Agency Task Force (IATF) on Zero Hunger is pushing for stronger ties between the public and private sectors to achieve goals under the National Food Policy of not just addressing hunger but poverty as well. Cabinet Secretary Karlo Alexei B. Nograles, who chairs the task force, said the recent series of consultations is expected to establish “a solid collaboration between the public and private sectors in implementing all their plans of action.” The consultations were attended by representatives from the World Bank, Japan International Cooperation Agency, World Food Programme, Food and Agriculture Organization, United Nations Children’s Fund, World Health Organization and the European Chamber of Commerce of the Philippines, academe, non-government organizations, civil society, and local governments. “We conducted the KUMAIN (Kasapatan at Ugnayan ng Mamamayan sa Akmang Pagkain At Nutrisyon) consultations thoroughly with as many partners as possible because we wanted a comprehensive and doable set of solutions,” Mr. Nograles said in a statement on Sunday. — Charmaine A. Tadalan

Regional Updates (12/06/20)

San Jose Del Monte now a ‘highly urbanized city’

THE city of San Jose Del Monte in Bulacan has been proclaimed as a highly urbanized city, its congressional representative said over the weekend. Rep. Florida  P. Robes said the upgrade will “give full play to the development of more micro, small and medium enterprises in the city and at the same time attract more investments in commerce and industry to create more jobs.” The city’s new level, made through Proclamation No. 1057, will be subject to ratification through a yet to be scheduled plebiscite. — Kyle Aristophere T. Atienza

Over 300 illegal aliens arrested in Tarlac

MORE than 300 aliens working in the country without appropriate visas were arrested last week, Immigration Commissioner Jaime H. Morente said on Sunday. Mr. Morente said the National Bureau of Investigation (NBI) received information about a worksite in Bamban, Tarlac allegedly employing at least 200 undocumented aliens. “Upon investigation and verification with our agents, we immediately issued a mission order to effect their arrest,” Mr. Morente said. The operation rounded up 323 Chinese, eight Malaysians, and one Indonesian who were reportedly involved in online gamlbing, internet fraud, and cybercrime operations. All 332 are now under NBI custody pending the filing of appropriate charges and deportation. — Kyle Aristophere T. Atienza

All Antique towns lift ban on homecomers as regular PAL flights resume, Starlite ferry service eyed

ANTIQUE province, which has one of the lowest coronavirus cases in the country at 79 with just two active and 76 recoveries as of Dec. 5, is celebrating its annual Binirayan Festival this month and all towns have lifted the moratorium on returning residents. Gov. Rhodora J. Cadiao, during Friday’s opening ceremony of the month-long celebration, said Christmas “remains to be a time for family and love despite the challenges faced by the province” as she thanked the municipal governments for agreeing to open their borders for homecomers. One of the festival highlights is a bazaar and various markets at the capitol grounds in San Jose de Buenavista town featuring local entrepreneurs. “All I ask is for us to follow the health protocols as we will still be together to celebrate the entirety of this festival,” Ms. Cadiao said.

TRANSPORT
Also on Friday, the governor met with officials of Chelsea Logistics Holdings Corp. and its subsidiary Starlite Ferries, Inc. for the possible opening of trips to the Lipata Port in Culasi town. Starlite General Manager Shane Arante said most of their customers on existing routes from Batangas to the Western Visayas Region are from Antique, who then take additional transport to their hometowns. “Majority of passengers of Starlite are from Antique, so it’s really part of our agenda to serve Antique. After this meeting with Governor Cadiao, we are proceeding to the port in Culasi to evaluate the technical aspects of the port if the vessel we intend to deploy is safe to birth the Culasi port,” Ms. Arante is quoted in a statement from the provincial government. Chelsea Logistics President and Chief Executive Officer Chryss V. Damuy, for his part, said the planned route will also be able to serve cargo demand. “There are other businesses that also intend to expand in Antique which also need support of logistics,” Mr. Damuy said. The routes being considered are Batangas-Caticlan-Culasi or Batangas-Iloilo-Bacolod. For air services, Philippine Airlines resumed on Dec. 2 twice-a-week commercial flights between Manila and Antique. — MSJ

Celebrating a safe Christmas: APAT Dapat!

 

The year 2020 has certainly been different, what with the COVID-19 global pandemic changing our lives and our lifestyles. Who would have thought, earlier in the year, that this novel virus would claim so many lives and cripple the whole world for its duration, and perhaps well into 2021? Here we are now in the final month of 2020, anticipating the most awaited holiday season… yet COVID-19 is still very much a big threat to our society.

One wonders, how do we celebrate Christmas during these COVID-19 times?

The usually big and noisy celebrations of Christmas past may not happen, but small and simple celebrations can still be made merry! The Healthcare Professionals Alliance against COVID-19 (HPAAC), a coalition of more than 160 medical professional organizations to combat COVID-19 has initiated “Celebrating a Safe Christmas,” which enables the public to have safe merriment this holiday season in spite of the presence of the virus.

While the cases of COVID-19 have seemingly gone down sometime during September and October, the typhoons and evacuations in November may very well cause an upsurge of cases, possibly reaching the Christmas holidays.

Reminders for preventive measures should be reiterated, and this is where HPAAC’s APAT Dapat campaign comes in. What is this APAT Dapat campaign anyway?

• A is for Air Circulation — meeting or dining in outdoor and open-air restaurants, gardens or parks;

• P is for Physical Distancing — maintaining distancing of at least one meter may give at least 80% infection reduction;

• A is for Always Wear Mask and Face Shield properly, which, when combined with Physical Distancing may give 99% risk reduction; and,

• T is for Thirty minutes or less interaction — the shorter time, the better.

As much as possible, these four interventions ought to be followed, but if it’s truly impossible to have all four, then at least have three out of the four.

So, how can we apply this APAT Dapat campaign to make our Christmas holiday season truly safe and merry?

WHEN SHOPPING
We should choose outdoor markets or establishments with good ventilation over small, enclosed and crowded stores. Of course, proper wearing of masks and face shields is now a requirement for entry into shopping malls. With careful planning of our shopping schedule, we can avoid times when stores are overcrowded. If we have a shopping list before even going to the market or mall, then our time at the shopping area is lessened, and even queuing will not be a problem.

Bear in mind, that the Philippine Pediatric Society (PPS) and the Pediatric Infectious Disease Society of the Philippines (PIDSP) have both strongly recommended that minors should remain at home to lessen their risk of infection and decrease viral transmission. The Mayors of Metro Manila have agreed NOT to allow minors entry to malls so we must not insist on bringing our children to the malls.

For gift giving, perhaps we should consider homemade crafts and food, or checking out our own stash of white elephants that have never been used and just kept in storage, or sharing previously loved items which are still in good condition. But perhaps the best thing when it comes to holiday shopping for groceries and other items is to just shop online. There are now many delivery couriers that do cashless transactions and contactless deliveries, some even have discounts and cash rebates. Safest thing to do really!

FOR HOME VISITS OR GATHERINGS
What is a Pinoy Christmas without reunions? Sadly, big clan reunions will not be a thing this Christmas. Celebrations are best to be done at home, preferably just limited to the immediate household. If we live with the older relatives, some other family members who do not live with us would want to visit them, making meeting up unavoidable. Still, we ought to limit the gathering to just a small number, best held outdoors in the garden or in a park, while still wearing a mask and face shield and keeping a safe distance. The shorter the time spent together, the better.

If the gathering is to be done in a business establishment, it is best if it is held in an outdoor cafe and with a limited number of attendees. While dining, masks and face shields will be down, so it is best to keep talking to a minimum until the eating is over and masks and face shields can be worn once again. Talking loudly, laughing out loud, and even singing are not advisable during these COVID-19 times as air particle transmission is highest for those activities. Alcohol intake is not a good idea either as it may lead to rowdy and boisterous behavior that may make one lose inhibitions.

DURING TRAVEL
Since school is done online and most work is still done from home, travel ought to be done only when essential. Now that we are no longer in complete lockdown, our streets are getting heavy with traffic again. When traveling, whether in public or private vehicles, it would still be wise to maintain a safe distance, to continue wearing masks and face shields, to open windows in an air-conditioned vehicle, and just try to keep the travel time as short as possible, although this last one is not really under our control as travel can take as long as two to three hours within the Metro.

In anything we do, we must always PLAN AHEAD as we should always weigh the risks versus benefits of going out, particularly for the following groups: seniors, frontliners, travelers from other countries or provinces, and unknown people.

Christmas definitely cannot be canceled, but Christmas 2020 will certainly be a very unique one. Perhaps this quarantine holiday season serves as a reminder of the simplicity and stillness of the First Christmas when Baby Jesus was born, emphasizing the intimacy of family love, appreciating the blessings we have, and sharing with the less fortunate, especially those who have been affected by the recent typhoons and floods.

Each decision we make should be of our own accountability and responsibility. The virus is still out there so the threat remains. We need to be vigilant and selfless, thinking of how our actions and attitudes will affect others. Hence, we should always try to follow these APAT Dapat Preventive Measures. Our gift to others this Christmas is to plan how we can keep everyone safe. Slowly and surely, this pandemic will fade and we will get through this together.

Yes, holiday celebrations will likely need to be different this year to prevent the spread of COVID-19, but with careful planning and the right attitude, this pandemic Christmas can still be a very merry and memorable one. Let us bear in mind that Christmas is not about the lights or the many gifts, nor should it be about eating and drinking. We truly ought to focus on Jesus as the reason for the season. As long as we share and spread the love with our family and others, happiness follows. May good health, joy and peace be with us all this holiday season.

 

Dr. Maria Carmela Agustin-Kasala is a member of the Communications Group of the Healthcare Professionals Alliance against COVID-19 (HPAAC). She is also the Chair of the Public Relations Committee of the Philippine Pediatric Society and the Immediate Past President of the Philippine Society of Allergy, Asthma & Immunology, both of which are proud member societies of the HPAAC.

#StayHomeFor

The Holidays

#ChristmasIsFamilyLove

#ApatDapatFor

ASafeChristmas

Why is President Duterte popular?

Commentators dropped their jaws when the latest Pulse Asia post-pandemic survey showed that President Duterte’s trust and approval ratings soared to 91%. President Duterte seems to be defying gravity or walking on water since the country is the worst in Asia in handling the pandemic, and the economy has gone into a deep recession.

Some have suggested that fear may have colored the respondents’ answers. However, even before the pandemic, President Dutere had been enjoying gravity-defying, sky-high ratings. What gives?

The same complex mysterious logic seems to be at work in the United States where US President Donald Trump garnered the highest number of votes ever for a Republican candidate and nearly won the election, save for hundreds of thousands of votes in some key states. This despite his handling of the pandemic, his misogynistic and racist comments, his defiance of democratic norms, his attacks on the media and peddling of false stories, and his obnoxious tweets.

However, it can be said that President Trump retains the loyalty of his base because he has channeled the anger, anxiety, angst, and resistance of a significant number of Americans over globalization, technological disruption, and gut-wrenching changes in culture, power, and identity.

These complex factors had been caused by urbanization, demographic changes, increasing cultural diversity, and inequality.

What about President Duterte? My theory is this: President Duterte has captured the political zeitgeist. He has channeled the people’s anger and disappointment over the Yellow People Power Revolution. More than 30 years after that revolution, which restored the pre-Martial Law electoral democracy, quality of life hasn’t improved much for the majority, except for the elite few. Before Duterte won, public services, from telecommunications to transport, were bad, if not getting worse.

Poverty remained widespread, especially in rural areas. In the peripheries, especially in Mindanao, its relative underdevelopment fed a sentiment of resentment over the exploitation by Metro Manila-based oligarchies. Food prices, especially rice, remained high while agricultural growth had stagnated. The only hope for families was for the fathers, mothers, daughters and sons to continue to leave and go abroad, but at great social cost.

The political institutions and the bureaucracy set up by the Yellow Revolution and the 1987 Constitution haven’t lived up to the ideals of liberal democracy either. They have proven to be corrupt, inefficient, and incompetent. The political system is dominated by dynasties, with a revolving door of family members making a mockery of term limits and inclusive democracy. The party-list system has been corrupted and is a big joke. The political actors have proven to be insensitive, greedy, and selfish rather than being public servants they are supposed to be. Worse, the greed isn’t getting moderated, but perceived to be intensifying, with billions of pesos, not just thousands, being lost in massive graft and corruption.

Comes now President Duterte in 2016, who sensed the people’s disappointment with life under the Yellow Revolution and the 1987 Constitution and promised that “change is coming.” Fiery and foul-mouthed, he represented a populist revolt against the status quo.

Viewed from this perspective, his political moves acquire logic. He proceeded to dismantle the linchpins of Yellow political power, or the coalition that ushered in the People Power Revolution: the Catholic Church, the Yellow-linked anti-Marcos oligarchies, and the ABS-CBN media empire. He also wrenched foreign policy from the pro-Americanism of the Yellows. It must be remembered that the pro-Americanism of the Yellows arose from US support to nudge the Marcoses from power (Senator Paul Laxalt told the former dictator Marcos to “cut and cut cleanly”).

The people had become so disgusted with the status quo that they have excused Duterte for his profanities, his breaking of norms, his taking of legal shortcuts, his misogynistic remarks, and, yes, sometimes his incompetence and trust in corrupt officials. The Yellow democracy hadn’t improved their lives anyway.

What about Duterte’s anti drug war?

Duterte correctly perceived that it was the poor who were primarily victims of the drug scourge, the destruction of families it causes, and the lawlessness it spawns. From the drug-addled canto boys who harass the neighborhood, to the drug dealers who prey on breadwinners and turn them into addicts, the drug menace is palpable to the poor. However, the authorities were not just doing nothing to stop the drug menace, but were complicit in the lawlessness in communities.

One might say that Duterte applied shortcuts with the EJKs (Extra Judicial Killings) and the violation of human rights to try to solve the drug menace. However, to a public who are used to failed institutions, shortcuts could be justified. Duterte, the smart politician, grasped this political reality and used it to nurture his tough guy, problem-solver, action-oriented image.

However, also key to his popularity is that he has subdued inflation, in particular rice inflation. In this regard, rice import liberalization and the dismantling of the NFA monopoly, which no president dared to do for the past 50 years, was the principal instrument. With rice import liberalization, rice prices stabilized. Prior to rice import liberalization, consumers were paying an implicit tariff of as much as 90 to 100% on imported rice and prices were highly volatile due to the slow and political decisions being made by the National Food Authority (NFA), which had the monopoly to import rice. Furthermore, the rice tariffication law funded a Rice Competitive Enhancement Fund from the 30% tariff, which enabled the government to compensate the losses of farmers.

Dr. Mahar Mangahas, president of Social Weather Stations, recently made an interesting presentation about Surveys on Inclusivity on the Past and Future Trends on the Quality of Life in the Pilipinas Conference of Stratbase Institute. According to Mangahas, growth was inclusive only in the period of 2015 to 2019 with surveys of gainers less losers turning positive during that period. Net optimism also rose from 2009 to 2019 but was marked by higher levels of net optimism above 30% during the last five years (except for a brief time when inflation rose in mid-2018).

When I asked Mangahas to what he attributes the rise in perception of growth inclusivity and rising net optimism, he pointed to two factors: the conditional cash transfer (CCT) program (which started under former President Arroyo, expanded under former President Aquino, and was institutionalized under the law under President Duterte) and the benign inflation rate, which enabled real wages to rise.

Although the surveys on economic inclusivity and net optimism can’t be directly related to the popularity of a president, it provides a context of the public’s perception of life under President Duterte.

And while both former President Aquino and Duterte can bask in the Conditional Cash Transfer program, contrast Duterte’s dismantling of the NFA rice monopoly with former President Aquino’s extension of quantitative restrictions on rice imports when it was supposed to be lifted in 2012 as a commitment to the World Trade Organization.

However, back to my thesis that Duterte builds his political capital from the resentments, disappointment, and anger at the failures of the Yellow Revolution. The 1987 Constitution, with its protectionist provisions that date back to the 1935 Constitution, enabled the persistence and growth of monopolies in telecommunications, transport, and other key sectors of the economy. (In other words, the Yellow revolution wasn’t a revolution at all, but a restoration with protectionist policies favouring the oligarchy still in place.) The Philippines has the most concentrated economy in Asia, according to the World Bank, resulting in high prices and poor service foisted on the public by the monopolists.

Hence, Duterte’s tirades against “oligarchs.” But apart from tirades, he has also decisively improved telecommunications services. In the telecommunications sector, where the public acutely feels the high prices and poor quality of the internet, his administration, especially the Department of Information and Communications Technology (DICT) under former Acting Secretary Eliseo Rio, Jr., injected more competition in that sector (through a third telco, Ditto Telecom, headed by Duterte friend, Davao businessman Dennis Uy), introduced public wifi, passed number portability, adopted a common tower program, and got Facebook’s submarine cable to go through the Philippines. The result has been palpable with the improvement of local telecommunication services and its stability during the lockdown period (though still behind our Asian peers.)

However, the problem with Duterte is that while he may have grasped the big political picture, his strategy and his execution have been incoherent. He flirted for a time with the Left, losing valuable time. His former Agrarian Reform Secretary tried to expand a clearly discredited Comprehensive Agrarian Reform Program. His leftist former Social Welfare Secretary tried to throttle the Conditional Cash Transfer program. He has appointed incompetents and corrupt officials and has continued to defend them. He makes a show of firing them only to recycle them.

Thinking like a mayor, he mistakenly believes in the power of government. Therefore, his administration pivoted away from PPP (Public-Private Partnership), perhaps in his mistaken belief that government was better than the oligarchs at execution, and embraced ODA (Official Development Assistance) and GAA (General Appropriations Act). However, the bureaucracy continued to be inefficient, incompetent, and corrupt across a range of institutions — the Bureau of Corrections, PhilHealth, Bureau of Immigration, Department of Public Works and Highways, Department of Transportation, Department of Health, etc. Therefore, his signature BBB (Build, Build, Build) program is characterized by under accomplishment.

Coming from Davao, he also thought federalism was the answer. He has only partially realized that it’s not unitary government, but the concentrated, urban-based economic power of monopolies that’s the cause of underdevelopment of the peripheries. His pro-China policy hasn’t yielded much to the benefit of the country. He has so far failed to use his huge political capital to reform the two economic foundations of the Yellow Revolution: the protectionist provisions of the Constitution and the 1988 Comprehensive Agrarian Reform Law. The former assured the dominance of monopolies and the latter caused land fragmentation, perpetuating agricultural stagnation and rural poverty.

Will the tanking economy and his mismanagement of the pandemic bring Duterte crashing down? The initial post-lockdown Pulse Asia survey doesn’t seem to indicate it, perhaps because people believe he cannot be faulted for the pandemic. However, despite a mischaracterization that Duterte is populist, his administration is fiscally conservative. Despite the country having the worst management of the pandemic in Asia and suffering the worst economic contraction, the Philippines has the stingiest economic stimulus. With hunger, joblessness, and bankruptcies becoming more widespread (and the public’s net optimism plunging), will the administration hold on to its tightfisted policy and perhaps suffer political consequences in the coming election period?

As for the Liberal Party (LP), its political future cannot be anchored on human rights or even decency in words and style alone. For a time, the Liberal Party was illiberal: going against the classical liberal ideas of open markets and free competition. Former President Aquino extended the National Food Authorities’ rice importation monopoly despite the country’s commitment to liberalize the sector in 2012. He also shot down the efforts of LP leaders former Senate President Franklin Drilon and former House Speaker Sonny Belmonte to amend the economic provisions of the Constitution, cementing the power of monopolies. Not surprisingly, with rice prices unstable and public services remaining poor, it paid a political price in the polls. The LP’s Mar Roxas, a conservative and member of a landed clan like former President Aquino, lost in the presidential elections in 2016. In 2019, the Liberal Party anchored its senatorial campaign on Otso Diretso (a call for straight voting without explaining why) and human rights. It lost miserably.

The future of the Liberal Party is dependent on whether it can recognize the failures of the Yellow Revolution while holding on to its popular anti-dictatorship principles, and whether it can become a true liberal party. This means that the party should not only be seen as espousing democracy and human rights, but also advocating open markets and competition, which will drive down prices and improve services to the public, and institutional reform to improve good governance and reduce corruption. It must also understand the causes of the people’s anger, anxieties, and resentment at the status quo and use that understanding toward a political and economic program, even if it means reforming the 1987 Constitution. Looking good and nice in contrast to Duterte isn’t going to cut it.

President Duterte’s soft spot, however, is that he has embraced China when surveys show that the public has much distrust of China. (A fact that the LP’s 2019 campaign failed to capitalize on.) However, as the cunning politician that Duterte is, he can be seen making nuanced pivots to soften his China lover image. He pardoned US Marine Lance Corporal Joseph Pembleton for killing a transgender, upheld the country’s victory over China in the UN Arbitral Ruling in a UN speech, postponed the cancellation of the Visiting Forces Agreement, and lifted the moratorium on gas exploration in the Reed Bank without an objection from China, possibly pointing to a peaceful resolution over the South China Seas dispute. He has also allowed the tax authorities to impose taxes on Chinese-run POGOs (Philippine Offshore Gaming Operations), which are unpopular, causing a number of them to leave.

Just as Trumpism will remain even if President Trump is gone from power, Dutertismo is likely to remain a powerful political idea and political force.

 

Calixto V. Chikiamco is a board director of the Institute for Development and Econometric Analysis.

idea.introspectiv@gmail.com

www.idea.org.ph

The new character of the Filipino consumer

Psychologist Maxwell Maltz theorized that it takes 21 days for a particular course of action to turn into a habit. If this habit is practiced for 66 days, it becomes an automatic response. And if such a response is practiced for 180 days, it becomes part of one’s character.

After 260 days in quarantine, it is safe to say that the changes in our preferences and the way we consume goods and services are now deeply etched in our character.

The Nielsen Company is a New York-based consulting behemoth with offices around the world. Its Philippine unit recently released a report that described the shifts in behavior among Filipinos consumers following the pandemic. It is chock full of insights and should serve as an invaluable tool for businesses involved in retail, wholesale, or trading operations.

The obvious reality is that e-commerce has moved to the mainstream and its share of the market continues to increase at an exponential rate. The rise of e-commerce comes at the expense of traditional supermarkets whose volumes are on a decline. Rising in patronage too are convenience stores and neighborhood markets, including sari-sari stores and community re-sellers.

As of the third quarter, as much as 17% of the population has shopped online of which 50% will continue to do so. Not only are Filipinos shopping for clothes, footwear, and electronics in online stores, they are buying their groceries there too. Facebook marketplace leads as the top merchant with 49% market share, followed by GrabMart at 25%, and Lazmart at a far 4%.

The reason for the popularity of e-stores is the phenomenal growth of e-payment platforms such as PayMaya and G-Cash as well as mobile banking. Also, a plethora of mom and pop stores have joined the fray with their homemade specialties, all of which add color and new dimensions to the shopping experience. Home based e-merchants are here to stay.

As far as shopping preferences are concerned, the non-essential category (that includes shoes, apparel, jewelry, bags and accessories) has declined by 34%. Meanwhile, food and non-alcoholic beverages have increased by 51%. Home care products, laundry products, and personal care products have increased by 48%.

The top selling food products in online groceries are (from highest to lowest): carbonated soft drinks, biscuits, spirits, mixed coffee, snacks, dietetics, powdered milk, instant noodles, bottled water, and read-to-drink milk.

Top selling non-food items include cigarettes, laundry soap, bathroom cleaning products, shampoo, disposable diapers, fabric conditioner, hair conditioner, toothpaste, facial care products, and sanitary napkins.

Preference towards products with multiple uses is on the rise. Rubbing alcohol, for instance, can be used as a disinfectant, deodorizer, and all-around cleanser. Also, trusted brands are preferred for edible products like canned and bottled food. However, cheaper brands are preferred for such items as laundry and bathroom products. There is also a trend towards bulk buying, not only for the discounts but also because buying trips are now less frequent.

Food delivery from restaurants have registered a spike of 58% and this upward trend is seen to continue. Food delivery serves the purpose of adding “spice” to daily family meals, not as its permanent replacement. Three out of four Filipino families cook at least two meals at home per day. Half of the population said they began to cook more often today than they did before the pandemic.

Studies further show that Filipino families do not resent staying home but instead have a newfound appreciation for it. Among the reasons cited is the savings derived from not going out or going out less often. Families have also come to appreciate intimate bonding and not having to deal with traffic. Approximately 300,000 babies will be born next year on the back of the lockdown, which represents a 17.5% increase from normal birthrates.

More people staying home have increased the sales of electronic gadgets by 38%. Digital media subscriptions like Netflix and the like have also increased by 34%. The majority of respondents claim that watching digital media is their way of destressing after working or studying.

In terms of share of wallet, food comes first for all income brackets. However, for the A, B, and upper C markets, they opt for healthier food stuff, even if more expensive. Savings derived from their inability to travel are channeled to more expensive food like high quality meats, premium seafood, and imported snacks. For the D and E markets, their priority is to eat three square meals a day and if there are extra funds, it is used to serve the needs and caprices of the children. After food comes the comfort for the family. This means allocating funds for electricity, water and internet. The third priority are cleaning and hygiene essentials. The fourth priority are occasional treats. For the A, B, and C markets, they spend on self pampering products and premium brands. For the D and E markets, they will spend on more food and products to relieve the boredom of their kids.

It is predicted that 2021 will bring another spike in unemployment and economic uncertainty. Consumers will become more risk averse and will seek products and services that deliver quality, value, and peace of mind. In other words, spending will be more mindful and luxury products will take a back seat. Households will continue to prioritize in-home spending rather than out of home discretionary spending.

The Filipino consumer now has a completely different character than he did before the pandemic. Businesses who adapt their products and value proposition to serve him better will emerge the winners in 2021.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Twitter @aj_masigan

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