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Conditions on the relief for early retirees under Bayanihan II

As we continue to navigate a new normal and grapple with these times of uncertainty, we have come to immensely value clarity. In this aspect, with the passage of Republic Act No. 11494 (Bayanihan II), the Bureau of Internal Revenue (BIR) released issuances to clarify its implementation. Among these are Revenue Regulation (RR) No. 29-2020 and Revenue Memorandum Circular (RMC) No. 120-2020, which intend to explain the tax exemptions on certain income payments given to employees during the pandemic.

These regulations are welcome aids. However, in what appears to be a Catch-22 situation, such guidance carries restrictive trade-offs.

CONDITIONS FOR RETIREMENT-BENEFIT TAX EXEMPTIONS
Section 5 of Bayanihan II provides that early retirement benefits granted to privately employed persons between June 5, 2020 and Dec. 31, 2020 are exempt from tax. The exemption, however, may be revoked if the individual is re-employed by the same organization within the succeeding 12 months. Re-employment is proof of non-retirement, making the benefits subject to the appropriate taxes.

These conditions are echoed in RR No. 29-2020, which also clarified that such relief is exclusive of the existing tax exemption under Section 2.78.1(B)(1) of RR No. 2-1998, as amended. This means that employees who avail of the retirement exemption under Bayanihan II may still qualify for another exemption in the future upon meeting the conditions under Section 32(B)(6)(a) of the Tax Code, which provides a minimum retirement age and years of employment.

However, the RR also provided that the exemption under Bayanihan II only applies to retirement benefits paid under a plan duly registered with the Bureau. Such a condition is noticeably absent from the provision in the law. This additional administrative requirement was reiterated through the clarificatory examples provided in RMC No. 120-2020.

Despite the welcome clarity that the regulations provided, this prerequisite makes the exemption restrictive. Effectively, fewer retirement plans qualify for this tax relief in comparison to the existing Tax Code exemption, which also exempts the minimum retirement pay under the law in the absence of a private retirement plan. Ironically, the implementation of the exemption contradicts the implicit intent of the law, which is to provide universal relief to both businesses and individuals. Consequently, the BIR did not merely interpret the law but appears to have legislated beyond the statute passed by Congress. Well-settled is the principle that administrative regulations cannot go beyond the law to amend a legislative enactment.

Moreover, RMC No. 120-2020 clarified the period of availment to qualify for the exemption. Both the date of retirement and the date of receipt of the retirement pay should fall between June 5, 2020 and Dec. 31, 2020. This prohibitive interpretation of the law further advanced the conflicting objectives of the BIR regulations and Bayanihan II.

Given the limited nature of this retirement tax exemption, one may be inclined to prefer the receipt of separation pay instead. Terminal pay is also tax-exempt when granted due to separation beyond the control of the employee. Thus, the BIR regulations may have rendered the tax exemption in Bayanihan II less beneficial and less useful in comparison to the options currently available in the law.

TAX FILING AND ADMINISTRATIVE REQUIREMENTS
Despite such drawbacks, RR No. 29-2020 and RMC No. 120-2020 provide clear guidance on the administrative and filing requirements for the tax exemption. Employers are required to submit a one-time list of the recipients of these early retirement benefits, due on Jan. 15, 2021, to the appropriate Revenue District Office (RDO) or the Large Taxpayers Service (LTS). Employers must also include such payments in the Alphabetical Listing (Alphalist) they submit annually. Further, the employee is entitled to a refund if taxes have been withheld from benefits qualified for exemption.

In the event of re-employment within 12 months in the same organization, the exemption is revoked. In such case, the individual and the employer will share the responsibility of subjecting the retirement benefits to the appropriate taxes, depending on when re-employment occurs. In case the retiree is re-employed during 2020, the employer is to include the retirement benefits paid as gross taxable income of the employee during its year-end annualization.

The responsibility shifts to the employee if re-employment occurs in 2021. In this case, the employee must file an Annual Income Tax Return to declare the benefits received and pay the taxes due thereon. The return is due on April 15, 2021, if re-employment happens between Jan. 1 and March 16, 2021. This deadline is extended without penalty to Oct. 15, 2021 if re-employment occurs between March 17 and Sept. 15, 2021. Beyond this date, the deadline is 30 days after re-employment. Concerned employers are also required to submit a quarterly list of re-employed retirees 30 days after the close of every quarter in 2021.

In addition to the guidelines for tax-exempt retirement benefits, RR No. 29-2020 also covers tax-exempt income items provided to frontliners. These income payments include (1) COVID-19 Special Risk Allowance provided to health workers, (2) Actual Hazard Duty Pay given to Human Resources for Health, and (3) specified amounts of compensation paid to health workers who contracted the disease or passed away while in the line of duty.

The pandemic has not only halted movement within communities but has also reordered society. Inevitably, hardships and obstacles will abound, exponentially increasing the value of support, reassurance, and relief. This need is what Bayanihan II seeks to satisfy. However, the long-term benefits and real merits of this law will only resonate if implemented by regulations that undertake the same purpose.

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

 

Audrey Anne A. Arocha is a Senior Associate at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

audrey.anne.arocha@pwc.com

Deep-freeze challenge makes Pfizer’s vaccine one for the rich

WHEN Pfizer, Inc. and BioNTech SE’s coronavirus disease 2019 (Covid-19) vaccine rolls off production lines, Shanghai Fosun Pharmaceutical Group Co. will be waiting to distribute it through a complex and costly system of deep-freeze airport warehouses, refrigerated vehicles and inoculation points across China.

After they reach vaccination centers, the shots must be thawed from -70 degrees celsius and injected within five days, if not they go bad.

Then the herculean journey from warehouse freezer to rolled-up sleeve must be undertaken all over again — to deliver the second booster shot a month later.

The roadmap sketched out by the company, which has licensed the vaccine for Greater China, offers a glimpse into the enormous and daunting logistical challenges faced by those looking to deliver Pfizer’s experimental vaccine after it showed “extraordinary” early results from final stage trials, raising hopes of a potential end to the nearly year-long pandemic.

That euphoria is now being diluted by the realization that no currently used vaccine has ever been made from the messenger RNA technology deployed in Pfizer’s shot, which instructs the human body to produce proteins that then develop protective antibodies.

That means that countries will need to build from scratch the deep-freeze production, storage and transportation networks needed for the vaccine to survive. The massive investment and coordination required all but ensures that only rich nations are guaranteed access — and even then perhaps only their urban populations.

“Its production is costly, its component is unstable, it also requires cold-chain transportation and has a short shelf life,” said Ding Sheng, director of the Beijing-based Global Health Drug Discovery Institute, which has received funding from the Bill & Melinda Gates Foundation.

The expense of deploying the Pfizer shot will likely heighten existing fears that wealthier nations will get the best vaccines first, despite a World Health Organization (WHO)-backed effort called Covax that aims to raise $18 billion to purchase vaccines for poorer countries.

It also presents a choice now faced across the developing world: to pay for the expensive construction of subzero cold-chain infrastructure for what seems like a sure bet, or wait for a slower, more conventional vaccine that brews batches of protein or inactivated viral particles in living cells, and can be delivered through existing health-care networks.

“If there is a protein-based vaccine that could achieve the same effect as an mRNA vaccine does and there’s the need to vaccinate billions of people every year, I’d go for the protein-based shots in the long run,” Mr. Ding said.

Even for rich countries that have pre-ordered doses, including Japan, the US and the UK, delivering Pfizer’s vaccine will involve considerable hurdles as long as trucks break down, electricity cuts out, essential workers get sick and ice melts.

SAFE DELIVERY
To safely deliver shots in mainland China and Hong Kong, Fosun will partner with the state-owned Sinopharm Group Co., a pharmaceutical distributor with well-established networks across the country. One of Sinopharm’s subsidiaries has also been developing Covid-19 vaccines.

Packed into cold storage trucks, those vials will arrive at inoculation sites where they can thaw and be stacked in fridges at 2 to 8 degrees celsius for a maximum five days before going bad.

“The requirement for extremely cold temperatures is likely to cause spoilage of a lot of vaccine,” said Michael Kinch, a vaccine specialist at Washington University in St. Louis.

It’s also likely to cost Fosun tens of millions yuan, according to the company’s Chairman Wu Yifang. Fosun is considering importing the vaccine in bulk and filling them into vials at a local plant. That will also require further investment in production and storage.

The resulting price tag may be too hefty for many developing nations, including neighboring India, which has struggled to contain the world’s second-largest coronavirus outbreak and currently has no agreement to purchase the Pfizer vaccine.

Many working in the country’s public health and the pharmaceutical industry have already voiced concern that India lacks the necessary capacity and capability to deliver a vaccine across its vast rural hinterland and population of over 1.3 billion people at the breakneck speed now expected.

“Most of these vaccines need minus 70 degrees, which we just can’t do in India, just forget it,” said T. Sundararaman, a New Delhi-based global coordinator of the People’s Health Movement, an organization that brings together local activists, academics and civil society groups working on public health.

“Our current cold chains are not able to cope with some districts’ need for measles vaccines, and that’s only for children below the age of 3,” he said. “That’s a really trivial number of people compared to the numbers that will need a Covid-19 vaccine.”

When asked at a Tuesday briefing if India’s government would look to buy any of the Pfizer vaccine, Rajesh Bhushan, the secretary at the health ministry, said New Delhi is in talks with all vaccine manufacturers. He added that India was in a position to “augment and strengthen” its existing cold-chain capacity, but declined to release any purchase details immediately.

Pfizer already has orders from some developing countries like Peru, Ecuador and Costa Rica. It’s unclear how widely those nations plan to distribute the shots, but their small orders of less than ten million doses suggest limited deployment.

After the release of their positive preliminary data, some governments have rushed to finalize orders and start negotiations with Pfizer and BioNTech. The European Union (EU) confirmed an order of up to 300 million doses on Tuesday, while the Philippines, Singapore and Brazil said they were in talks.

‘LAST MILE’
Even without the subzero issue, rolling out a vaccine in a short space of time will be a “major challenge” requiring mass paramedical training to administer two-shot doses, said Pankaj Patel, chairman of Indian drugmaker Cadila Healthcare Ltd., which is developing its own experimental plasmid DNA Covid-19 shot.

This is especially so in areas where people are not easily contactable or have to travel long distances to reach vaccination centers. Past vaccination campaigns show that many simply never show up for the second shot, said public health experts. 

The mounting obstacles mean that some developing countries may pass on the Pfizer vaccine, despite early signs of its exceptional efficacy.

“If we were to wait an extra year and have something that’s feasible for us to deliver to as many people as possible in this country, would that be a bad trade-off?” asked Gagandeep Kang, professor of microbiology at the Vellore, India-based Christian Medical College and a member of the WHO’s Global Advisory Committee on Vaccine Safety.

“Based on the cost of the Pfizer vaccine, the logistics of an ultra-cold storage — I don’t think we are ready and I think this is something that we need to weigh the benefits and the costs very, very carefully,” she said. — Bloomberg

Vietnam rebukes Netflix, Apple, over lack of tax payments

HANOI — Vietnam’s information minister on Tuesday accused foreign streaming companies like Netflix and Apple of skirting their tax responsibilities, saying it would create unfair competition for domestic firms.

Foreign streaming firms, which have combined revenues of nearly one trillion dong ($43.15 million) from one million subscribers, according to the information and communications ministry, have never paid tax in Vietnam.

“Domestic companies have to abide by tax and content regulations while foreign firms do not, which is unfair competition,” the minister, Nguyen Manh Hung, told a government meeting. “Some content on Netflix has flouted regulations related to the history and sovereignty of the country, violence, drug use, and sex,” he added.

Vietnam introduced a cyber security law two years ago that requires all foreign businesses earning income from online activities in Vietnam to store their data in the country.

Netflix said it had no plans to place its servers locally or open an office in Vietnam at the moment.

In a statement to Reuters, the firm said it would continue to engage with the government on potential regulations on video on demand services accessible in Vietnam.

“We are supportive of the implementation of a mechanism that will make it possible for foreign service providers like Netflix to collect and remit taxes in Vietnam,” a Netflix spokesperson said. “However today such a mechanism does not exist.”

Netflix was told to remove Full Metal Jacket, a Vietnam War film from its service in the country.

Mr. Hung said the information ministry, finance ministry and tax department were working to facilitate tax collection by calculating foreign streaming firms’ revenues in Vietnam since their entry into the market.

Tech giants are increasingly facing tougher fiscal regimes in Southeast Asia, where regulators held talks last year on a regional push to tax them more. The Philippines, Thailand and Indonesia have recently passed or drafted legislation aiming to ensure taxes are paid. — Reuters

Hong Kong-Singapore travel bubble to start on Nov. 22

HONG KONG/ SINGAPORE — A travel bubble between Hong Kong and Singapore will begin on Nov. 22, the two cities announced on Wednesday, as they moved to re-establish overseas travel links and lift the hurdle of quarantine for visiting foreigners.

Hong Kong’s Commerce Secretary and Singapore’s Transport Minister said the scheme would begin with one flight a day into each city, with a quota of 200 travellers per flight. This would be increased to two flights a day into each city from Dec. 7.

If the coronavirus disease 2019 (COVID-19) situation deteriorated in either city the travel bubble would be suspended, they said.

Singapore’s Transport Minister Ong Ye Kung said he believed the travel bubble was the first of its kind in the world and enabled both cities to open up borders in a controlled manner, while maintaining safety. Travellers from both cities must travel on designated flights and must undertake COVID-19 tests. No quarantine would be required in either place and there would be no restrictions on the purpose of travel.

For Hong Kong, which has banned non-residents since March, the deal with Singapore is its first resumption of travel ties with another city. Travellers from mainland China and neighboring Macau still face 14 days in quarantine.

Eligible Hong Kong residents in Guangdong province and Macau will be exempted from quarantine in Hong Kong under a quota scheme from Nov. 23, Hong Kong authorities announced on Wednesday.

Singapore already has pacts on essential business and official travel from China, Indonesia, Japan, Malaysia, South Korea, and opened unilaterally to general visitors from a handful of countries including Brunei, New Zealand and Vietnam.

Cathay Pacific and Singapore Airlines would be the carriers offering the initial designated travel bubble flights, according to authorities. — Reuters

Penultimate legislative priority

The Senate is now working on the 2021 budget bill, deliberating on proposed changes to the version earlier approved by the House of Representatives. Towards the end of this month, lawmakers from both the Senate and the House are expected to meet and finalize all revisions to the bill, before approving it before the Christmas break.

Along with the budget bill, senators are also expected to finalize their version of the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE). The proposed law aims to reduce the corporate tax to 25% from 30% in 2021, and further down to 20% by 2027. CREATE will also overhaul the system for the grant of fiscal incentives or tax perks for investors and businesses.

So, on the one hand, senators are deciding on a bill that will significantly increase the national budget to P4.5 trillion, as it also provides an appropriation for the purchase of COVID-19 vaccines, in 2021. On the other hand, they are also deliberating a proposed law that may actually cut government revenues for 2021 onwards by reducing corporate taxes. Like the budget bill, the CREATE bill is expected to get through before the Christmas break.

Incidentally, there are a number of bills pending at the Senate regarding the creation of new economic zones. In particular, these are bills that will put up new industrial sites in Leyte and Bulacan (for the proposed international airport). As these bills have “fiscal incentives” components, perhaps the Senate will choose to make these bills consistent with the proposed CREATE Act.

The Senate leadership also hopes to get a few other urgent bills out to the plenary for approval by December. In a way, for both the House and the Senate, we may already be looking at the penultimate legislative agenda. The year 2021 will be the last full calendar year for the present Congress, which closes just before presidential and legislative elections in May 2022. There are only 20 months left for the 18th Congress.

For the Senate, these urgent measures include the proposed Financial Institutions Strategic Transfer (FIST) Act, which will pave the way for banks to sell non-performing assets to asset management companies that will rehabilitate these bad assets and perhaps sell them for profit in future. The bill aims to keep the banking system strong.

Over at the House, Majority Leader Martin G. Romualdez said lawmakers would hasten the approval of 12 economic measures sought by the Department of Finance (DoF) to help the government “jumpstart the economy.” Of these bills, five are undergoing interpellation or debates, while seven are being discussed at various committees.

These bills propose, among others, to make government banks assist or lend more to small businesses; modernize the fire protection service and the armed forces; overhaul the military and police pension system; and promote the development of the coconut industry through the creation of the Coconut Farmers Trust Fund.

But there are three tax bills and two government reorganization bills that are worth watching. And then, there is the proposed National Land Use Act. These six bills at the House, in my opinion, have very significant implications, given their potential impact on the present and future economy.

The tax bills are the proposed Digital Transactions Value-Added Tax Act; HB 6135, which proposes a new fiscal or tax regime for the Mining Industry; and, the proposed Internet Transactions Act as an amendment to the current E-Commerce Law. And then, there are the two bills that proposes the creation of the Department of Water Resources and the Water Regulatory Commission, as well as the National Disease Prevention and Management Authority. And, as mentioned, there is also the proposed National Land Use Act.

According to Mr. Romualdez, he has no doubt that the House “will be able to pass all these measures before the onset of election fever next year [2021].” And here lies my concern, really. While expediting the approval of these measures may be welcome, I just hope the House — and later the Senate — will not hasten approval just to meet a deadline. Haste can make waste.

Given these bills’ potential implications on the economy and the way we do business in the country, I hope these will be given ample time and study prior to consideration. In this line, all those in these sectors should already start preparing to either support or oppose these bills, for reasons and consideration based primarily on science, economics, and data.

The worst that can happen is that politics will be the bigger consideration, or perhaps the elections themselves. And that the work, rather than being in aid of legislation, becomes in aid of re-election. Note that of the six bills, three are tax-related or will impose new taxes. Of course, nobody but nobody will want to be known as supporting new tax laws just prior to an election.

Two bills in particular, the proposed Digital Transactions Value-Added Tax and the proposed Internet Transactions Act can have broad impact particularly more on consumers rather than producers or sellers. VAT is a consumption tax. While many online purchases to date are still free from VAT, this may no longer be the case by 2022 — an election year. New taxes on the mining industry may be limited in scope, and impact mainly miners.

As for the National Land Use bill, it remains uncertain whether this will also have tax or revenue implications. Changes in land classification can impact real property values and taxes as well as zonal valuations. Or, the implication may be on the supply of land available for conversion and commercial and industrial development; or on zoning restrictions that may require certain industries to relocate.

And, last but not least are the government reorganization bills, particularly on the creation of the National Disease Prevention and Management Authority. This, of course, becomes doubly significant in light of what we are experiencing with the present pandemic and how government resources were squandered by PhilHealth. The reality now is that such a thing — pandemic and corruption — can happen again.

As for the Department of Water and the proposed Water Regulatory Commission, I can only hope that due consideration be given the concerns of various stakeholders. One cannot overemphasize the importance of water resources to the country, its people, and the economy. There is an obviously urgent need to ensure supply security while at the same time improving people’s access to clean, safe drinking water.

With everything that is happening around us, Congress must work truly in aid of legislation, to benefit the people, rather than in aid of re-election in the next 20 months.

 

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

matort@yahoo.com

World’s populists may regret their embrace of Trump

WE KNOW that US President Donald Trump loves strongmen. He was famously soft on Vladimir Putin’s Russia; he welcomed Hungary’s xenophobic Viktor Orban to Washington by saying he had done “the right thing” by restricting immigration; and he said he got along better with world leaders “the tougher and meaner they are,” singling out Turkish President Recep Tayyip Erdogan as the toughest and meanest.

And the strongmen loved him back. Orban wrote an op-ed during the election campaign hoping Trump would defeat the Democrats, whom he called “moral imperialists.” Brazil’s Jair Bolsonaro said he hoped “from the heart” that Trump would be re-elected; and Slovenia’s Janez Jansa used various conspiracy theories to justify a call congratulating Trump on winning re-election.

Perhaps it isn’t surprising that populist, right-wing strongmen get along well with each other. But their camaraderie provides yet more evidence of how these supposedly nationalist leaders place their own interests above those of their nations.

In the coming weeks, many are going to have to back away awkwardly from their embrace of Trump. Israel’s Benjamin Netanyahu began even before the election, smoothly avoiding Trump’s attempt to get him to criticize his Democratic opponent Joe Biden on a phone call. And then, in what one Israeli journalist called “Netanyahu’s two-tweet solution,” he both welcomed Biden’s victory and thanked Trump for his support of Israel.

India’s Narendra Modi has set himself a more difficult task. Modi and Trump held a joint rally in Houston last year, at which the Indian prime minister approvingly quoted a variation of one of his own campaign slogans — “Ab ki baar, Trump sarkaar,” or “Next time, a Trump government” — in what many observers saw as an explicit endorsement of the president.

The Indian ambassador in Washington — now back in New Delhi as India’s top diplomat — met Steve Bannon and described him in a now-deleted tweet as a “warrior for Dharma.” Stung by criticism from Democratic legislator Pramila Jayapal, the Indian foreign minister canceled a meeting with members of the US Congress. And the general secretary of Modi’s political party warned Democrats, after a tweet from Sen. Bernie Sanders critical of Trump’s tacit approval of anti-Muslim riots in Delhi, that his party was now “compelled” to “play a role in the US presidential elections.”

None of this made much sense at the time; now it looks incredibly short-sighted. Like their counterparts in similarly placed countries, Indian leaders are reduced to hoping that Biden won’t make the same mistakes they did — in other words, that his administration will look beyond who’s in power at the moment and focus on long-term ties.

Officials in New Delhi are feverishly reminding themselves and anyone else who will listen that Biden was one of India’s strongest backers on Capitol Hill, that he had nice words for the country even when it was the subject of international condemnation following its nuclear tests in 1998 and that he was one of the leaders of the bipartisan charge to normalize strategic relations between the two countries through an agreement on nuclear energy in the 2000s.

Other nations led by impulsive populists are also being forced to praise a bygone era of bipartisan diplomacy. Brazil’s Foreign Minister Ernesto Araujo told Bloomberg News that warming ties “happened between Brazil and the US, not between two presidents.” UK Prime Minister Boris Johnson spoke of the “shared priorities” of his country and the US.

But you would struggle to find anyone in these capitals who would disagree that their leaders’ impetuousness over the past few years won’t be a hurdle in the next four.

And this time they’ll be dealing with Biden, a man likely to take the pragmatic, long view — even with Johnson, who upset both Biden and Sen. Kamala Harris with his borderline-racist remarks about Barack Obama some years ago. Suppose it had been Sanders? Suppose the progressive wing of the Democratic Party has the next chance at government? Is it wise for any ally or friend of the US to infuriate potential American leaders to this degree?

That’s the problem with the new breed of nationalists. They aren’t actually interested in the national interest at all. Without exception, they evaluate actions in terms of whether they offer immediate political benefits or, more often, a momentary ego boost.

It’s all very well to talk of the benefits of “personal diplomacy.” Most of the time, it’s just one strongman desperately seeking validation from another. This is no way to build deep, strategic partnerships.

BLOOMBERG OPINION

GDP contraction, CDC PH, and medicine taxes

The Philippine Statistics Authority (PSA) released a bad report, saying that the Philippines’ gross domestic product (GDP) contraction continued in the third quarter (Q3) at -11.5%. The second quarter (Q2) was also revised from -16.5% to -16.9%.

I checked our neighbors’ and some developed countries’ GDP performance and among those with Q3 data, the Philippines is the only country which still has a double-digit contraction. The year-to-date (Ytd) contraction is nearly -10% while our neighbors Taiwan and Vietnam never experienced a recession and have modest growth (see Table 1).


Some people do not appreciate the relevance of GDP percentage changes so here are GDP figures in billions of pesos. GDP is measured via demand or expenditure side, and the supply or industry side. On the demand side, the biggest declines this year are on household consumption and private investments. Investments this year in particular are even lower than the level in 2017. On the supply side, the industry sector suffered a big decline. And our GDP size or flow of goods and services in a year in 2020 is even lower than 2018’s level (see Table 2).


The Philippine government’s strict, indefinite, and no timetable lockdown policy is the main reason for the systematic crippling of the economy.

My alumni group, the UP School of Economics Alumni Association (UPSEAA) held a Zoom lecture given by Dr. Benigno “Iggy” Agbayani, Jr., on “Philippines COVID-19 Response, What we got right and wrong” on Nov. 4. Dr. Agbayani is a fellow UP alumnus (BS Biology, Medical Degree, and Residency at UP-PGH). He is currently the Chairman of the Department of Orthopedics, Manila Doctors Hospital. He is also a co-founder of the Concerned Doctors and Citizens of the Philippines (CDC PH) that campaigns to “Flatten the fear” and lift the lockdown.

On the rising number of cases in the country due to rising tests and false positives, Dr. Agbayani said that viral detection is difficult because viruses are everywhere, too small and have similarities with fragments of other viruses or organisms. No test method actually looks for the virus itself but only detects a signature RNA fragment or surface protein. False positives using the RT-PCR is a major cause of over reporting of cases since even a single fragment of an airborne virus multiplied by 40 cycles will be detected. An asymptomatic case, even if it would turn out to be symptomatic, does not necessarily mean that the person is contagious even with an accurate test positive RT-PCR because it does not measure viral load but merely the presence of a fragment of viral RNA. And this causes many bad policies like being quarantined up to two weeks even without symptoms or being contagious.

On herd immunity, he said that it is the end goal of ending or controlling all epidemics or pandemics. He fully agrees with Dr. Jay Bhattacharya, an economist and public health Epidemiologist at the Stanford School of Medicine, who said that herd immunity is just like gravity. How to get there as safely as possible is the subject of debate ranging from vaccination, infection of the less vulnerable, or by strengthening the immunity response through antiviral prophylaxis, or strengthening innate immunity. Herd immunity can be held off by endless lockdowns, mandatory distancing, etc.

He said that CDC PH offers a three pronged approach to end the lockdowns safely and effectively without the need to isolate the elderly and vulnerable for an indefinite period of time, nor wait for a safe vaccine that may be a year away or may never come. The approach is a combination of the Great Barrington Declaration (GBD) focused protection and a safe approach to herd immunity, the use of proven efficacious and safe antiviral drugs like Hydroxychloroquine, Ivermectin and, in the future, Leronlimab, and strengthening our innate immunity through sunlight or Vitamin D, foods rich in Vitamin C and zinc, exercise, good sleep, stress management, and other lifestyle modification.

Meanwhile, a global coalition of independent think tanks and institutes released a short study and position paper, “Overcoming obstacles to medicine access: Joint policy recommendations to the 2020 World Health Assembly,” released also on Nov. 4.

The study identified two important policy measures. One, reduce unnecessary medicine costs by reducing medicine taxes, abolishing medicine tariffs, and eradicating other trade barriers. Two, accelerate access to medicines by simplifying the drug approval process, modernizing government medicine reimbursement decision-making, promoting genuine free trade in medicines, and supporting the innovation system. The paper can be downloaded at https://geneva-network.com/research/overcoming-obstacles-to-medicines-access/.

Very often, too much government — like strict and prolonged lockdowns, high and multiple taxes and tariffs on medicines — is unhealthy for the economy and patients.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

No need for an introduction

Working from home seems here to stay even in the post-vaccine normal, perhaps not necessarily for all. The knowledge business, tech support, and staff services (except Finance which still needs to prepare and sign checks) may well work from home, at least partially. Even psychiatrists can diagnose depression and loneliness online.

In this work setting, is there still a need to identify function and rank? Is the calling card necessary in a digital culture, as companies and jobs become more ambiguous? (Can you just give me your mobile number?)

The calling card, previously referred to as a visiting card, was part of 18th century Europe’s social formality for visiting neighbors. These cards with name and address are left behind to indicate a wish to drop in sometime soon.

The evolved calling card, now mostly for corporate use, has no standard size or format, except that it should fit into a wallet or case and became part of business paraphernalia, like the mobile phone. It also projects with its paper stock, layout, logo, and business address the profile of the corporation.

Even before the pandemic, quickly evolving titles and the devaluation of traditional ranks (Extremely Important Vice-President) in companies have made the calling card unreliable as a form of introduction and status.

There are positions with no precise job descriptions or measurable goals. We note a rise in a tribal nomenclature, with the preferred title leaning towards “chiefs,” as in Chief Risk Officer — does he control risk or create it? The “chief” title does not indicate rank or any other job details.

A chief is included in senior-level meetings. He gets to pop unexpected questions — what about the reputational risk of your proposal? Should the Chief Transformation Officer (CTO) waste doughnuts on a chief in charge of risk?

Is it possible to go through corporate life without needing to show a calling card that carries a job title or rank? What does the non-card bearing careerist need to do?

Now, with virtual meetings becoming the norm, designations which a calling card defines (sort of) have become confusing, if not irrelevant. The online meetings are either corporate routine (board of directors) or task-based, like determining how many stores in a fast food chain to close, temporarily or for good. Such task-based decision-making involves functions like supply chain management, marketing, and finance.

Ranks that are enshrined in calling cards become immaterial in a task force. Anyway, the bottom line in such decision-making results in less people needing cards anyway.

And what happens when a new management takes over? The new CEO may be a familiar face from some long-ago conference or webinar (a newfangled way of imparting knowledge and hunting for a new job). But bumping into the newly installed leader at a coffee break for some off-site team-building exercise (socially distanced and all that) may invite curiosity — hey, Buddy, do you work here? What do you do? You hand out a calling card that by now is a few days obsolete.

When a consultant is brought in to review an organization, he may wonder about the large number of chiefs. (Do they send out smoke signals?) In the ensuing interview of key executives for the climate survey (usually not virtual but face-to-face, with masks), few are even aware there was a calling card for the Chief for “golden opportunities.” He used to be designated Chief Risk Officer.

Dispensing with calling cards removes the need to search for an appropriate title for an undefined function like adviser to the CEO. Of course, there are some icons sitting in the board or popping up as consultants who are not expected to have calling cards. What they hand out are pink slips.

Personal achievements, preferably captured in one declarative sentence, are still the best calling cards. Like the American President who sent a man to the moon. More modest achievements can still serve as “calling cards.” (I introduced socially distanced queuing for the ATM.)

Being empty-handed when meeting clients can be embarrassing though. When you hover over a CEO, he may ask you for café latte’ and a chocolate chip cookie. You can then give him an old calling card, call a waiter, and take your seat. There’s no need for an introduction… or a next meeting. 

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Meralco beats Northport, 80-73, to fortify quarterfinal position

By Michael Angelo S. Murillo, Senior Reporter

THE Meralco Bolts finished their PBA Philippine Cup elimination round campaign on Wednesday with an 80-73 victory over also-rans Northport Batang Pier and in the process fortified their position in the quarterfinals.

It was an end-to-end domination by the Bolts (7-4) over the undermanned Batang Pier (1-10), who played sans some of its key players in their final game of the Philippine Basketball Association (PBA) season at the Angeles University Foundation Arena in Pampanga.

The win thrust Meralco to a share of third spot along with the TNT Tropang Giga, Alaska Aces and San Miguel Beermen, as of this writing, and it was awaiting the results of the two games later on Wednesday to determine where they place in the quarterfinals with the quotient system to break ties in effect.    

Five players finished in double digits for Meralco in the win, led by Bong Quinto with 14, followed by Chris Newsome and Raymond Almazan with 11 points apiece.

Guards Baser Amer and Trevis Jackson, meanwhile, had 10 points each.

For Northport, which played without Christian Standhardinger and Sean Anthony, it was Jervy Cruz who showed the way with a double-double of 15 points and 17 rebounds.

Still unsure of which team they will face in the quarterfinals, Meralco coach Norman Black said they are going to prepare for whoever their opponents would be.

“Right now, we still don’t know who we will face, but we are looking at some scenarios and we’re just going to prepare whoever it is,” he said.

NLEX ENDS BID ON A HIGH NOTE
Meanwhile, the NLEX Road Warriors ended their Philippine Cup campaign on a high note by defeating the Terrafirma Dyip, 127-101, in the opening game on Wednesday.

Already eliminated entering the match, NLEX (5-6) made sure that it would exit the tournament “bubble” with a victory and have something to build on for the next season.

The Road Warriors found themselves in a tight contest early on before they pushed on the gas pedal and left the Dyip in the dust on their way to the victory.

Kiefer Ravena led the way for NLEX in their final game of the season, finishing 23 points to go along with five rebounds and four assists.

Raul Soyud had 16 points while veteran Asi Taulava, in what could be his final game in the PBA, came off the bench and scored 11 points and grabbed four rebounds for the Road Warriors, who made a late push for a quarterfinal spot, winning four of their last five matches, after a struggling start to the tournament.

“The first half of our elimination round was disappointing. We did well in the second half when we started winning. In the bubble, adaptation and adjustment are very important. We didn’t make them early enough. That’s why we fell short. If we have two or three games more, I felt we’d still get better,” said NLEX coach Yeng Guiao in summing up their campaign.

Terrafirma, for its part, finished the tournament with a 1-10 record.

Philippine Superliga eyeing a ‘complete menu’ of three indoor tourneys next year

ITS 2020 season derailed by the coronavirus pandemic, the Philippine Superliga (PSL) is looking at operating in far, ideal circumstances next year and stage a “complete menu” of three indoor volleyball tournaments.

Speaking at the online Philippine Sportswriters Association Forum on Tuesday, PSL chairman Philip Ella Juico shared that while the pandemic has effectively shut down the league this year, they remain undeterred and are now planning their push to return in 2021 with a bang.

He, however, said that everything they are working on is in compliance with prevailing guidelines in relation to the pandemic and in collaboration with pertinent government agencies.

“We will have a complete menu. The plan is to have three regular conferences. But all of these are premised on the IATF (Inter-agency Task Force for the Management of Emerging Infectious Diseases) approval in both the national and regional levels and the different LGUs (local government units) where we will hold the competitions and practices,” said Mr. Juico.

The PSL actually got some games in for its 2020 season in the import-laden Grand Prix tournament, but eventually moved to cancel the entire season in March as the country was placed under strict community quarantine to guard against the spread of the coronavirus.

The league tried to make a return this year by way of beach volleyball, scheduling a “bubble” tournament in Subic, Zambales, on Nov. 28 to 30.

But because of the string of bad weather that affected the country recently, and is expected to hit still as the year ends, the PSL decided to move the tournament to mid-February.

For their planned indoor tournaments next year, the PSL has pencilled March, June or July, and October as possible starts for the three conferences.

Unlike in previous seasons, however, the Grand Prix that usually kicks off the PSL year will be the last tournament to be played so as to allow imports to come in and have more time to adjust to conditions by that time.

Mr. Juico admitted that at this point, largely it is still wait-and-see not only in volleyball but sports in general. But he believes things are looking up and slowly but surely sports is making its way back.

“Overall, sports is making a big rebound,” he said. — Michael Angelo S. Murillo

Team sports to also benefit from government stimulus package — PHL Sports Commission

TEAM sports also stand to benefit from the recently approved stimulus package of the government in the fight against the coronavirus pandemic.

In an announcement, the Philippine Sports Commission (PSC) said national athletes in team sports, just like the rest of Team Philippines (PHL), are also included in the Bayanihan Act II, which has a provision for the allowances of national athletes and coaches.

At the height of the pandemic, the PSC made the tough decision to slash by half the allowances of national team members because a large part of its budget was rechanneled to efforts in the fight against the pandemic.

But local sports officials moved to have the allowances back at full amount by including a request for P180 million as part of Republic Act No. 11494, or “Bayanihan to Heal as One Act,” which President Rodrigo R. Duterte signed.

Traditionally, allowances of team sports are limited to a few months before and after a major international competition such as the Asian Games or the Southeast Asian Games (SEA), because of the considerable budget it entails.

However, coming off Team Philippines’ overall championship finish in the 30th SEA Games last year, the PSC Board approved the extension of allowances until July of this year.

But with the crisis at hand, the sports agency approved to continue this until the end of the year and included team sports in the budget from Bayanihan Act II.

With that, national athletes in team sports are set to receive the remaining 50% of their June and July allowances and shall continue to receive their full allowance up to December.

Along with the rest of Team Philippines, they, too, shall receive the “special amelioration package” given by the government.

Set to benefit from these are 199 athletes and 39 coaches belonging to teams of eight sports, namely: aquatics-water polo, baseball, dragonboat, handball, ice hockey, softball, underwater hockey, and volleyball.

“A community coming together really makes a whole lot of difference,” said PSC chairman William Ramirez in a statement, underscoring the collaboration that went into the efforts to return the full amount of the athletes’ allowances, including that with the Philippine Olympic Committee. — Michael Angelo S. Murillo

Lito ‘Thunder Kid’ Adiwang has ailing mother in mind heading into key fight

APART from keeping his ONE Championship winning strict alive, Filipino strawweight fighter Lito “Thunder Kid” Adiwang has a bigger reason for wanting to win in his ONE Championship return—his ailing mother, Leticia.

To take on Japanese Hiroba Minowa in a three-round mixed martial arts contest at “ONE: Inside The Matrix III” on Friday at the Singapore Indoor Stadium, 27-year-old Mr. Adiwang (11-2) said he is dedicating his fight to his mother, who has been bed-ridden because of multiple strokes.

The Team Lakay fighter shared that to see his mother in such a condition has been tough for the entire family but they are fighting through it and staying strong for her.

And Mr. Adiwang, winner of his first two fights in the main draw of ONE Championship, is honoring his mother the best way he knows how to.

“I am very excited and happy to be back in action, and continue to do what I love to do. This fight is very special for me. I want to win for my family, especially my mom,” said Mr. Adiwang.

“My mother has had a big impact on my life. She is the reason I am who I am today. I thank her for everything in my life, and I am proud and happy to be her son,” he added.

Mr. Adiwang comes into the fight from an impressive first-round submission (kimura) victory over Thai Pongsiri Mitsatit in January.

Unfortunately, his momentum was disrupted by the coronavirus pandemic.

But despite the limitations brought about by the pandemic, Mr. Adiwang said he made the most of what was presented to him as far as training was concerned and believes he is ready for the Minowa fight.

“It’s very important for me to keep my momentum in ONE Championship because it’s one way for me to be recognized as a top talent in ONE. My goal is to one day become a world champion. Nothing has changed since you last saw me. I’ve only gotten better,” he said.

Adding, “I’ve really done my best in training and to improve myself. That’s the only way I can keep this up. Every time I step into the Circle, I want to give fans a show they want to watch. Each victory will keep moving me up the ladder until I’ve reached the top.”

The ONE Warrior Series product went on to say that Mr. Hinowa (10-2) is no easy challenge, being a champion in Shooto and all.  

“Hiroba Minowa is a very good fighter. I respect him a lot. He is a young and hungry fighter with a good ground game. I’m not taking him lightly, or any opponent for that matter. I always come for the victory,” said Mr. Adiwang.

ONE: Inside The Matrix III is headlined by former ONE Bantamweight World Champion and #1-ranked bantamweight contender Kevin “The Silencer” Belingon of the Philippines and #5-ranked bantamweight contender John “Hands of Stone” Lineker of Brazil.

Also seeing action is Messrs. Adiwang and Belingon’s stable mate Geje “Gravity” Eustaquio, who is fighting South Korea’s Song Min Jong in a catchweight clash at 64kg. — Michael Angelo S. Murillo

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