Building a future-fit board

November 7, 2021 | 6:37 pm

(Second of two parts)

Businesses continue to explore new ways of working, further spurred on by the pandemic and supported by technology. However, to maintain momentum, boards will need to reimagine their roles to ensure they remain relevant, adaptive and responsive to the needs of this transformative age. Future-fit boards are diverse by nature, inclusive, transparent, and responsive, with the ability to navigate the unexpected and innovate in their oversight of human capital to drive long-term value.

As discussed in an EY article, Setting the pace or keeping up — is your board future-fit?, there are six key areas of action boards must consider for future fitness. In the first part of this two-part article, we discussed how boards will need to revitalize board composition and dynamics, gather insights from fresh perspectives, and increase focus on the long term. In this second part, we discuss how boards must align and communicate purpose with action, align and monitor culture, and enhance risk and compliance oversight.

ALIGN AND COMMUNICATE PURPOSE WITH ACTION
Based on an EY survey, 80% of CEOs around the world agree that public opinion will become as important to companies as their investors in the next five to 10 years. At the same time, surveys also indicate that 76% of the general global population feels that companies are capable of increasing profits and improving the social and economic conditions of the communities where they operate at the same time.

It is interesting to note what global CEO respondents identified as the most significant factors constraining them from being more involved in solving global challenges: board attitudes, composition, skills and leadership. In fact, these factors topped the list for more than half of the CEOs in the survey, surpassing regulation, investors and compensation. This suggests that if it were not for board direction, these CEOs felt they would be more vocal in addressing social issues. This is where future-fit boards can push the idea of their organizations’ purpose, a reason for being and operating that goes beyond making profit, as an essential part of strategy.

By articulating purpose with clarity, companies provide their people an achievable vision that they can contribute to, but this purpose must clearly state who the organization aims to benefit apart from its shareholders, as well as how it will do so. Although purpose alone does not replace strategy, it declares the “why” and intensifies the will behind it. It is also important to impart a clear, mutual understanding of the division of roles for external communications as well as plans for appropriate responses in the event of a crisis. Such crises can range from fraud, cyber-attacks, or environmental destruction. The increased scrutiny from 24-hour news cycles and how easily information can now spread dictates that integrity, clarity and timely responses are imperative for future-fit boards.

However, clarity of purpose is not enough. Future-fit boards need to recognize that companies will fail if they do not align their communicated purpose with action, which is especially relevant to maintaining trust with stakeholders. An EY global survey of CEOs found that a key gap standing in the way of transformation is the “say-do” gap, where action does not match intention. This indicates that, in addition to clearly stating its purpose, an organization’s leadership needs to show their customers and people that they “walk the walk” and not just “talk the talk.” By their actions they can demonstrate their will to follow through on their stated purpose, thus inspiring the buy-in and earning the trust of their stakeholders. Therefore, the future-fit board needs to ensure that purpose both informs strategy and permeates all aspects of operations.

Boards will need to ask themselves how accurately the public understands what their business does, and how their organization contributes to both the economy and society. They have to assess whether they are constraining management from contributing to solutions for global challenges, and whether they are engaging with stakeholders, such as employees, on the most important and pressing issues. In addition, boards must determine their readiness and ability to respond to a crisis, and the assurance that they can stand by their purpose and values.

ALIGN AND MONITOR CULTURE
Culture is a strategic asset, and in the war for talent, culture is a key intangible asset that needs to be protected. Emerging technologies are changing the workplace and impacting culture as well. Both investors and regulators have an interest in how companies leverage talent culture and strategy to enhance viability and accelerate long-term success. How the culture of a company is aligned with long-term strategy can change over time, especially in this transformative age, where strategies must adapt to face new challenges.

Future-fit boards will need to align their long-term strategy with a clear vision of their corporate culture and empower management to embed said culture throughout the company. Monitoring the alignment of culture with strategy and the impact of culture on corporate engagement needs to be conducted using non-traditional metrics, such as employee review sites, turnover rates, exit interview data, training effectiveness, incentive schemes and social media impact. Future-fit boards should encourage management use of big data as well, understanding what behaviors drive performance even when performance is high.

It takes resources and time to drive any cultural shifts. Boards therefore need to ask themselves how effectively they can oversee shifts in culture to build a future-focused workforce that has the skills and resolve to face future challenges. They will need to assess how creative they are in their use of data to build culture, and how clearly they communicate this culture to drive strategy.

ENHANCE RISK AND COMPLIANCE OVERSIGHT
Future-fit boards need to focus on the evolving world of reporting, monitoring and compliance technologies — and the cultural and investment shifts required to enable them. Boards need to employ a pragmatic approach to horizon scanning, gathering external insights and deploying monitoring mechanisms. They also need a broader perspective about indirect and emerging risks and consider deploying automation to monitor such risks and benchmark them against Key Risk Indicator (KRI) tolerance thresholds.

One necessary shift will be to develop new competencies for finance, compliance, and risk professionals, boards and audit committees. As an example, making use of technologies and new sources of data will require strong knowledge of legal frameworks for external data hosting, external and internal data protection risks, and audit procedures across different platforms.

Boards must ask themselves if they are combining smart technology with rich data to power their compliance and risk oversight, and determine what new competencies and skills are necessary at the board and management levels to maximize their data analytics tools. Moreover, they need to treat data as a strategic asset, and ensure that data governance risks are encompassed in board-level risk assessments.

SETTING THE PACE FOR A FUTURE-PROOF BOARD
Boards can seize the future by reshaping their performance and reinventing themselves, aligning values and culture as necessary and re-energizing their risk and compliance mechanisms. By gathering external perspectives, embracing diversity and shedding light on risks and opportunities, they can enhance their decision-making and gain deeper insights to generate long-term value.

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.

Leonardo J. Matignas is a business consulting partner of SGV & Co. and the EY ASEAN risk management leader.

It’s Not Easy Being Green: Balancing energy security and decarbonization for an emerging economy

November 7, 2021 | 5:32 pm

GREEN-ENERGY-ligh bulb — MACROVECTOR-FREEPIK

It is not often that we can take solace as a lower middle-income country, as we move a few paces behind the developed world’s progress. However, as I sit back and watch the 2021 global energy crisis unfold, I take comfort in knowing that being behind the curve also means having the opportunity to learn from experiences of those ahead of us.

By all accounts, the crisis is a product of many converging factors, resulting in a perfect storm of power shortages and high power prices. In Europe, the closure of coal and nuclear power plants, an unusually low wind season, drier weather conditions, high commodity prices due to supply shortages, and a post-COVID bounce back in economic activity and energy demand seem to all play a role. In Brazil, their worst drought in over 90 years is drying up reservoirs and threatening energy supply across the country. In China, coming from a cold winter drawing down energy stockpiles, heavy rains and floods in mid-year closing down coal mines, local environmental regulations, and high commodity prices seem to be the main culprits. On top of that, colder-than-normal weather is now adding to winter demand as people heat their homes, while ice also wreaks havoc on grid infrastructure.

Now, is there a thread that pulls these contributing factors together? And what implications does it have for our policy decision making in the Philippines, if any? I would like to focus on the energy policy directions that contributed to the situation, so that we in the Philippines can learn and we can chart a better path towards energy security and decarbonization.

I would posit the view that much of the 2021 energy crisis is a result of the choices that many countries have made in the process of decarbonizing their energy systems. And to understand the choices, it is instructive to look at the political climate and how it is responding to the challenges posed by a rapidly changing Earth climate.

Politics responds to social pressure. And with energy, the societal discourse around climate change has been driven by extreme points of views — the climate deniers on the right and the climate alarmists on the left. This has resulted in a reductive discourse that seeds in the uninformed person’s mind that we only have two choices. Either we don’t believe in climate change and stick to our current hydrocarbon-based energy system or we do believe in climate change and therefore must dismantle our current system and invest in electrification and renewables. This conversation does not appreciate the complexity of the problem and it is dangerous because it dismisses solutions that we will need that may not fit neatly into the two boxes at the extremes.

This global conversation and the political policymaking that responds to it today signal to markets that we must invest in renewables and very little else. We see companies in all energy sectors pivot from coal and oil and gas to varying degrees and under different timelines. On the face of it, this may sound like good news for those worried about climate change. However, if you also worry about your ability to earn a living, your ability to support your families, and our ability as a society to move up the development curve towards a more prosperous future, we may want to take a step back and consider the cost of this transition pathway and who should bear it.

Germany provides for an instructive case study on the costs of a transition that takes a renewable at-all-cost and at full-speed approach. In 2010, Germany embarked on a program called Energiewende to decommission their nuclear and coal plants and build renewables in their place. They did this through a combination of subsidies and incentives. This has helped them increase the mix of low carbon (renewables and nuclear power) electricity consumption from around 40% to 56% and to reduce GHGs (greenhouse gasses) from energy by 22% in a 10-year period. This transition however has cost them at least 160 billion euros over the last five years alone and is largely cited as the reason why electricity costs to households have increased 25% from Euro 0.24/kWh to 0.30/kWh over the last 10 years. Mind you, this is despite Germany being connected to the rest of the European grid, and thus having the convenient and cheap way of managing intermittency that characterizes new solar and wind power, e.g., they feed off the French nuclear power well, et al. when domestic power production is low or demand is high, and export surplus power when their renewable energy sources produce too much or demand is low.

Germany and other first-mover markets have subsidized the rest of the world for a portion of the technology costs of the transition. We can expect it to be less expensive moving forward. However, we should look at how the math adds up and ask the question, is that the best pathway forward for the Philippines?

Complicating the matter further is the question “who should bear the costs of the transition?” Climate equity or justice, which your author will use interchangeably in this article, is a concept that developed to acknowledge and address the inequities involved in tackling the climate crisis. It acknowledges that we all have varying levels of historical responsibility for the current stock of GHGs globally. It highlights that each community, each country has a different capacity and potential to mitigate climate change. Lastly, it points out that each community and country are affected to varying degrees by climate change and need varying levels of adaptation.

The Philippines contributes 0.3% of global GHG emissions today (and a lower share of the historical stock), which is a drop in the proverbial bucket. As a share of the world population, the Philippines is three times this number. To illustrate this further, our per capita carbon footprint is 1.98 tons per capita which is a tiny fraction of that of industrialized countries, with the US emitting 15.52 tons per capita, Germany at 9.44, and China at 7.38.

Arguably, we have lower potential and capacity to mitigate the crisis, given the current technical and commercial limitations to access our renewable energy resources, the relatively low-income levels of our people, our lack of basic R&D infrastructure, and other factors. A key consideration is intermittency of new solar and wind. Given the current state of technology and cost of battery storage, only fossil fuels can provide the Philippine base load capacity needed to drive industry. Especially required now as we try to recover from this pandemic — we need secure and affordable power to attract investment and quality jobs to lift the quarter of our people who are jobless and in absolute poverty.

Finally, we are expected to be hard hit by adverse effects of climate change and therefore will need to invest considerably in adapting to what is a global crisis that we alone cannot solve.

All of this points to the conclusion that we should bear considerably less of the cost of the transition than other countries. To his credit, Finance Secretary Carlos Dominguez III has recently publicly taken developed countries to task on this matter. Ultimately, we all share a common goal but our responsibilities will vary. Let’s learn from the experiences in the developed world and avoid quick-fix pathways and craft an energy transition with the Filipino people in mind and that the Filipino people can afford.

Our power regulators, financial regulators, and other public stewards should be mindful of the tradeoffs and high stakes in climate-related decisions. We all dislike coal and other carbon intensive industries, but we should dislike seeing our people in abject poverty even more.

Romeo L. Bernardo is GlobalSource Partners Philippine advisor. He served as finance undersecretary in the administrations of Corazon Aquino and Fidel Ramos. He is an independent director in a leading local power generation and distribution company.

romeo.lopez.bernardo@gmail.com

Fuel taxes amid the crisis

November 7, 2021 | 5:32 pm

Oil prices are soaring. The explanation boils down to supply and demand. Supply is tight, and demand is climbing in the wake of a nascent global recovery. But the hardship and impoverishment brought about by the pandemic and the attendant crisis have made oil prices a politically sensitive issue.

Hence, some intervention is necessary. Politicians, whether associated with the administration or the opposition, have called for the suspension of the excise fuel taxes to alleviate the price increases. And so have the cause-oriented groups. For the simplicity and straightforwardness of the call, the public supports it.

But policy-making is complex. The policy maker has to consider the different options and determine which among them is best. The concept of tradeoff is a guide to choose the most appropriate, the soundest policy.

Similarly, the proposed policy (in this case, suspension of the excise fuel taxes) must be weighed against the potential gain or benefit from pursuing an alternative policy. Economists define this as the opportunity cost.

Moreover, although economic thinking is utilitarian (calculating costs and benefits), it has subscribed to the equity principle. Economics is painfully aware of the equity-efficiency tradeoff. Society and government adopt progressive taxation like having higher tax rates for high-income groups. Affluent consumption like the purchase of high-end vehicles is subject to heavier taxation. A bigger chunk of the national government budget is allocated to benefit the poor and the disadvantaged.

Considering the above, I say that a suspension of the excise taxes on fuel does not pass muster. Fellow columnist Diwa Guinigundo captures the considerations regarding both tradeoff and equity. In his BusinessWorld column “That creeping game changer” (Oct. 28, 2021), Diwa wrote:

“To many, scrapping the excise tax on fuel could be a game changer in addressing inflation and helping the poor. This is what is salient about the proposal, but this salience effect could also distort our perspective on the more important, though less obvious, bad consequences of this regressive proposal on our desire to recover from the pandemic and economic recession.”

Let me cite the data to bolster Diwa’s position. Consider the data from the 2018 Family Income and Expenditure Survey (FIES). Here, we look at transport spending, given that transport prices significantly depend on fuel pricing.

1. The bottom 30% of families spent 5.2% of their total expenditures for transportation. The upper 70% spent 6.9% of total expenditures for transportation.

2. The FIES broke down the expenditures for transport by income class. The data would show that the poorest and poor families spent less than the upper classes of their total annual expenditures for transportation.

• For families with annual income less than P40,000, the spending for transport was 2.9% of total expenditures.

• Families with yearly income between P40,000 and P59,999 spent 3.5% of total spending for transport.

• Those families earning income between P60,000 and P99,999 spent 4.5% of total expenditures for transport.

• Those earning between P100,000 and P249,999 spent 5.6% of total spending for transport.

• Those earning P250,000 and P499,999 spent 6.6% of their total expenditures for transport.

• And the highest earners, families earning P500,000 and above, used 7.7% of their total spending for transport.

3. From a different angle, the Department of Finance (DoF) has made estimates regarding “savings” from a suspension of the fuel excise taxes for each income decile group. To illustrate, a suspension of all excise fuel taxes (and the corresponding value-added tax on the fuel excise taxes) in 2022 may result in yearly average savings of P513 for the poorest decile, P758 for the second decile, P977 for the third decile, P1,212 for the fourth decile, P1,508 for the fifth decile, etc. In sharp contrast, the savings for the tenth decile would amount to P24,202. In the same vein, the top 1% of households would have average savings amounting to P59,143. (See the DoF’s table.)

4. Seen from another lens, the DoF says that the savings from the suspension of all fuel excise taxes would increase household income in 2022 marginally for the bottom half of the households— by 0.38% for the poorest, 0.43% for the second decile to 0.48% for the fifth decile. On the other hand, the top decile would increase income by 0.82%.

All in all, the evidence overwhelmingly shows that a fuel tax is a progressive tax. The upper classes, especially the rich, are the main consumers of fuel. Suspending the excise taxes on fuel benefits the rich more than the poor. The fuel taxes thus serve the equity objective.

We add the argument that fuel taxes correct a negative externality. Such taxes internalize the costs to the environment and society brought about by carbon emission. Taxes on fossil fuel have all the more become relevant when the global community is taking collective action to address climate change.

The other major point of this essay is about the opportunity cost of suspending the fuel excise taxes. The DoF estimates that for 2022 alone, the forgone revenues from the suspension of all fuel excise taxes (including the part of the value-added tax on the fuel excise tax) would amount to P147.1 billion. If the suspension would cover the incremental revenues gained from the fuel excise tax reform in 2018, the amount of forgone revenues would remain significant at P119.5 billion.

Isn’t it better, more proper, to spend such a huge amount to provide economic relief to the poor, the unemployed, and the hungry? Such relief would address not only the impact of rising prices from fuel but also the adverse impact arising from hunger and loss of income.

In this light, the proposal of suspending fuel taxes is weak. To summarize and to cite Diwa, it is regressive. It does not serve the equity objective.

It also results in massive forgone revenues. Here, we take note of the warning that the soaring global fuel prices may not be a temporary phenomenon. Damien Courvalin, senior commodity strategist from Goldman Sachs, said: “This is not a transient winter shock like it could be for gas. This is actually the beginning of a material repricing higher for oil.” He also said: “The fundamentals actually very much support the view of higher prices than we’ve seen, pretty much since 2014.”

This raises a practical question: How long can one suspend the fuel taxes, given that the high prices would stick? The longer the suspension, the worse the outcome would be for society —forgone revenues, bigger government deficit, bigger debt, higher interest rate, less investments, reduced employment, and anemic growth.

The superior policy is to retain the fuel excise taxes, and use the tax revenues to provide economic relief and social protection to the poor as well as allocate public transportation subsidy. This is pro-equity and pro-poor. This is sustainable.

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

The food delivery wave

November 7, 2021 | 5:31 pm

The restaurant industry is among the most affected sectors in this pandemic. Not only have the lockdowns curtailed dine-in sales, the fear of infection continues to discourage millions from going out and patronizing their favorite restaurants.

According to the European Journal of Social Psychology, it takes 66 days for behaviors to become a habit. Living under the COVID regime for 20 months has left consumers with the habit of consuming restaurant food at home via delivery service. Eating at home is now ingrained in our DNA and home delivery will comprise the bulk of restaurant sales as we move forward. Thus, it is imperative that restaurants have a delivery mechanism and online ordering platform to thrive.

Although there will always be a space for experiential dining within the confines of a restaurants, it will no longer be the principal source of sales for most establishments. Those with enormous dining rooms will have to downsize. Studies further show that for the majority of restaurant types, it is more advantageous to have smaller but more plentiful restaurants in areas where people live and work (for ease in food delivery) rather than bigger restaurants in expensive commercial centers.

With rapidly evolving market conditions, it is important for industry players to understand the emerging trends. As an industry insider, I was fortunate to secure a copy of the Food Trends Report commissioned by a regional (ASEAN) food delivery portal. Let me share the pertinent findings that relate to the Philippine market.

The food delivery sector clocked-in gross revenues of P55 billion last year. One third of all meals consumed by Filipinos were ordered from restaurants while two-thirds were home cooked. Fifty percent of customers decide what they want to eat based on what they see on the app. No surprise, subscriptions to food delivery aggregators, like Grab Food and Food Panda, increased by a whopping 61% over the last year. There is no escaping it — restaurants need to be visible in food aggregator apps given their household penetration.

The downside, however, is that food delivery aggregators take a percentage of sales, sometimes as high as 25%. This is the price restaurants pay for being included in the app and for the logistics services provided. Whereas in the pre-COVID years, the malls were those taking a percentage of sales from restaurant operators, today, it is the delivery aggregators. Restaurant operators will be hard-pressed to survive if they have to pay both. To maintain profit margins, it should be one or the other.

Families with children are the principal patrons of home delivery services. Statistics show that 52% of patrons are married with kids, with an average household size of 4.5 people. Sixty five percent of those booking the order are between 25 to 44 years old. As of last year, 78% ordered food for the family and not just themselves.

The top three reasons for patronizing a restaurant are: first, to satisfy cravings for food that cannot be cooked at home; second, for lack of time to cook; and third, for convenience. It is easier to eat at home than having to deal with traffic and/or parking.

Lunch is the biggest market for food delivery, followed by dinner and afternoon snacks. Breakfast and midnight snacks are the timeslots that generate the least orders. The top 10 food items sought after or searched for by Filipinos are the following (not in order): pizza, doughnuts, milk tea, cakes, burgers, bakery items, Chinese food, coffee, Filipino food, and fried chicken. Interestingly, cake sales are expanding the fastest, having grown 260% between 2019 and 2020.

Eating healthily is now a growing trend among Filipino consumers. Three in four Filipinos claim they want to eat in a healthy manner, 60% of whom say they are even willing to pay a premium for a healthy meal. Orders from restaurants that offer healthy options have increased by 400% last year. Trending are salads, the use of organic ingredients, immunity boosters, those with less salt or sugar, and those with less oil and/or calories. So strong is the healthy trend that many restaurants are now tweaking their menus to include healthy options.

Also high on the search list are food items that are “old favorites” but difficult to prepare at home. This includes dishes like pizza and pasta for the Italian category, specialty dimsum and hot viands for Chinese, kare-kare, lengua estofado, and crispy pata for Filipino, and cakes and pastries for dessert.

Data shows that Filipino families patronize an average of 2.5 restaurants brands per month. The reasons that drive patronage are: variety of choice 71%; value for money 54%; perks and promotions 48%; and visual appeal of the menu 43%.

It is recommended that restaurants pack their menu with low-cost dishes as these encourage consumers to order multiple items, thus, driving up the total bill. A low-cost item is anything below P150. The caveat, however, is that consumers prefer short menus, rather than kilometric selections.

As far as promotions are concerned, 82% of Filipinos prefer buy-one take-one, 82% like free delivery charge, and 69% product discount. Bundling with drinks, desserts, or side dishes have proven to be effective too.

Consumers are spoiled. Studies show that establishments with a customer feedback score lower than 4.8 rating (out of five) are not considered prime choices. And should a restaurant fumble an order or deliver food that is below quality expectations, the probability of them losing the customer permanently is 70%.

Delivery is now the name of the game as far as food service goes in the Philippines. Restaurant operators who excel in this segment stand to reap rich rewards.

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

Disagreement fatigue

November 7, 2021 | 5:31 pm

Listening to Bishop Robert Barron on his Word on Fire videocast while having a lethargic breakfast. He does spark some energy over a seemingly predetermined day of continued languishing in the long-playing COVID pandemic. His topic on that dank and dreary morning singed the consciousness: Am I experiencing what is called “Disagreement Fatigue,” or a refusal to argue for, and defend what I think is right? Am I just languishing in non-controversial, non-adversarial lethargy?

Bishop Barron takes off from an article by Evangelical apologist Natasha Crain, “Disagreement Fatigue” in which she predicted that from the violent upheavals of 2020 (the pandemic, world recession, US elections, racial protests, terrorism, wars), people in 2021 and onward for some yet unknown number of years more will refrain from controversy and indulge in passivity, perhaps to lessen stress and anxiety. “Many people are looking for easy harmony rather than knowledge to help them better engage when there’s an opportunity to do so,” Crain says.

Yes, Bishop Barron agrees that religion and politics are sure-fire topics for arguments, often leading to fights. But he cautions against the creeping “Disagreement Fatigue” that deadens and kills mind and soul more than physical violence or social rejection. Is the present growing inclination to non-controversy more noticeable among generational levels? Well, maybe because they are more in numbers, the millennials and Generation X are observed to be more “allergic to disagreements,” Bishop Barron observes. Their independence and individuality are abetted by social media, in which responses are often “snarky one-liner comments which are not arguments at all.”

And Bishop Barron cites the growing-up stories of the post-1960s generations, JRR Tolkien’s The Hobbit and Lord of the Rings. Bilbo Baggins, the elder of the Shire has a perfect little hobbit house with all the amenities that symbolize peace and harmony in the village. Yet his nephew, Frodo, decides to leave the Shire to join and defend the Fellowship of the Rings, suffering trials and tribulations in the adventure, guided by the strict and exacting good wizard, Gandalf.

Such is moral strength: we must leave our safe space to be relevant and helpful to others, in the love and service to God and fellowmen. “If you are afraid to go out, you are not alive,” Bishop Barron admonishes. He echoes the challenge of St. John Paul II who repeatedly quoted Luke 5:4, “Duc in altum!” Jesus said that from Simon Peter’s boat when He was recruiting His disciples: “Put out into the deep” — cast your nets and be fishers of men. And the chosen apostles, were amazed at how heavy their nets were with the catch.

Be proactive — cast your net forth like the Apostles. Be adventurous — like Frodo venturing out from the Shire (tradition, a “safe place”). Yet Bishop Barron (pejoratively dubbed “Bishop of the Internet” by critics) is not without controversy for his actively coming forth in defense of liberal changes in the Catholic Church post-Vatican II and of Pope Francis. Now still battling against “Disagreement Fatigue” (also called Indifference), Bishop Barron has not relented despite open criticism by some Catholics who violently protest controversies against gay marriages, sex-offender priests, and pro-choice/abortion, among others. He was most controversial at the 2020 US Presidential Elections, when American Catholics were divided between Republican re-electionist Donald Trump (a non-denominational Christian) who was against legalizing abortion, and Democratic candidate Joe Biden (a Roman Catholic) who toed his party line of free choice for abortion. Bishop Barron endorsed Biden, considering that even if a law legalized abortion for the overwhelming 78% majority of US citizens who are not Roman Catholics, the Roman Catholics would still be bound in conscience by the law of the Church against abortion.

Yes, mundane politics insinuates into the spiritual, mental, emotional and physical lives of all. Pope Francis said in a Sunday homily, “A good Catholic meddles in politics, offering the best of himself, so that those who govern can govern. None of us can say, ‘I have nothing to do with this, they govern.’ Citizens are responsible for participating in politics according to their ability, and in this way are responsible for their leadership” (https://www.catholicnewsagency.com, Sept. 16, 2013).

The Pope reiterated this at the recent international video conference, “A Politics Rooted in the People,” saying “the true response to the rise of populism is precisely not more individualism but quite the opposite: a politics of fraternity, rooted in the life of the people.” In his message in his latest book Let us Dream, he calls this “a politics with a capital P, politics as service, which opens new pathways for the people to organize and express themselves.” This type of politics, he continues, is “not just for the people, but with the people, rooted in their communities and in their values” (https://www.vaticannews.va, April 15, 2021).

Pope Francis and Bishop Barron might have been talking to us Filipino Roman Catholics, estimated at 85% of the population, or about 84 million in 2015 (inquirer.net, Aug. 11, 2013). We have most crucial national elections coming up on May 9, 2022. In this time of critical discernment about whom should we choose to be our next leaders in government, we are still focused on our health and survival in the stranglehold of the terrible COVID pandemic that has lorded over our lives since early 2020. It’s just too much!

Are we experiencing what is called “Disagreement Fatigue,” or a refusal to argue for and defend what we think is right? Are we just languishing in non-controversial, non-adversarial lethargy?

We know our present governance well enough, whether we are pro- or anti- the ruling leaders, or for or against those wanting to be voted into power come May 9, 2022. Sad to say, but the differences in opinion or choice may sometimes boil down to net effect on personal circumstances or expectations. The pan-rattling of oppositionists in social media (where else, no choice in the pandemic) is countered by the massive erosion of Truth from the deluge of Fake News by paid trolls. Lying and cheating by candidates who have re-invented themselves and revised history is acceptable, even that the money stolen from the country is re-packaged as “gifts” to the needy.

Does the protest noise even penetrate the patched-up hovels of the poor, who hear and feel only the rumbling of empty stomachs? The country’s poverty rate is projected to average between 15.5% and 17.5% in 2021, likely near the 16.6% posted in 2018, officials of the National Economic and Development Authority said. Joblessness will remain elevated at around 7% to 9% by 2022 (Rappler, Feb. 4, 2021). Perhaps only those who have the wherewithal can indulge in the perverse luxury of anxieties and depression about the recklessly careening future of the country and of the family and worry about the coming national elections.

No time for “Disagreement Fatigue.” Time to venture out from “Safe Space” for those who can do something for good, honest elections. Reach out to the misled or unconcerned to vote for good leaders who will selflessly serve the people. Help positively and actively to realign the collective consciousness to what is Right and Good, to Truth and Justice.

Duc in altum!

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Europe relapses to become COVID hot spot

November 7, 2021 | 5:24 pm

EUROPE has again become an epicenter for the coronavirus, calling into question the region’s efforts to recover from the pandemic.

Despite an abundance of Covid-19 shots, countries from Germany to Greece have reported record infections in recent days, while Romania and Bulgaria are experiencing horrific levels of fatalities and overwhelmed hospitals.

That’s putting fresh urgency into efforts to vaccinate the masses, whether that means getting first doses into the arms of tens of millions of vaccine holdouts or preparing to offer booster shots to hundreds of millions of others.

While governments are reluctant to reintroduce lockdowns, countries like Latvia have already concluded there is currently little alternative.

Here’s an overview of the pandemic from across Europe after a sobering week:

GERMANY
Germany’s fourth Covid wave is hitting hard, with infections reaching record levels this week and hospitals in some hot spots becoming overwhelmed. The country is now calling on all adults to get booster shots six months after their second doses, with Health Minister Jens Spahn saying that should be “the rule, not the exception.”

With 16 million Germans who are eligible for Covid shots having thus far refused them, authorities have little recourse but to push for greater protection for those willing to roll up their sleeves. The country’s efforts to respond are further complicated by a change in power. Chancellor Angela Merkel’s authority is fading as Social Democrat Olaf Scholz proceeds with efforts to form a new government.

UNITED KINGDOM
Coronavirus infections in England reached a new high in October, according to large study by Imperial College London. UK Health Secretary Sajid Javid said that the study sends an “important message” about remaining vigilant heading into winter.

Last month, the country kicked off its largest-ever flu shot drive to address concerns over a spike in Covid cases coinciding with a resurgent flu. National Health Service walk-in centers in England have started offering coronavirus boosters for at-risk people without an appointment. Britain’s regulator also became the first in the world to approve Merck & Co.’s Covid-19 antiviral pill.

ITALY
In Italy, some northern regions, including Veneto and Friuli Venezia Giulia, have seen a fast increase in cases, linked in part to protests by anti-vaccine activists against the introduction of a mandatory pass. The rise has prompted authorities to make a renewed push for people to get shots.

“We are working to extend the booster dose to new age groups starting next week,” Health Minister Roberto Speranza said Friday at a press conference in Rome. “We still need to catch up on first doses and accelerate on the third ones.”

FRANCE
In France, where government curbs helped keep infections at relatively low levels, cases are again beginning to rise. Officials across the country will reinstitute mask-wearing mandates in schools, while President Emmanuel Macron will take stock of the situation in an address to the nation on Tuesday.

Mr. Macron’s policy of requiring proof of vaccination for restaurants, cinemas and other venues helped bolster the immunization campaign and has been widely credited with keeping case counts, hospitalizations and deaths at lower levels than some neighboring countries. The French legislature passed a bill Friday that would keep the vaccine passport system in place as long as the end of July 2022, and officials are now encouraging older people to get booster shots.

SPAIN
Spain is a rare bright spot in Europe. Infections have remained low since September, with hospitalizations continuing to fall markedly.

Over 88% of people 12 and older are completely vaccinated and more than 1 million people have received a booster shot since the government approved the measure in early October.

PORTUGAL
While Portugal on Thursday reported the highest number of daily cases since Sept. 9, the latest figures are still just a fraction of the January peak, when the country faced one of the world’s worst outbreaks.

About 86% of the country’s population is now completely vaccinated, among the highest rates in the world.

About 86% of the Portugal’s population is completely vaccinated according to the government.

IRELANDIreland’s daily case numbers are at their highest since January. The country held off plans to drop most remaining restrictions last month.

Deputy Prime Minister Leo Varadkar on Friday refused to rule out new limits on activity before the end of the year if the health system comes under renewed pressure.

GREECE
In Greece, five record highs over the past six days has prompted a fresh round of restrictions, with unvaccinated individuals now needing to show a negative Covid test in order to visit some shops, beauty salons and restaurants.

The measures exempted supermarkets and drug stores, but also churches, which sparked more criticism over the government’s handling of the pandemic.

DENMARK
In Denmark, where more than 75% of the population is fully vaccinated, the number of daily cases has doubled in the last 10 days and hospitalizations have spiked.

Soren Brostrom, head of the country’s health authority, on Thursday urged the government to re-introduce some restrictions, including the use of Covid-19 passports at public events.

HUNGARY
Hungary’s slow vaccine campaign and lack of Covid measures has helped fuel one of the world’s fastest growth rates in infections.

Prime Minister Viktor Orban is now trying to tighten some restrictions, including re-introducing a mask mandate on public transportation. Employers are also allowed to demand vaccine certificates from workers, who can be sent on unpaid leave if they refuse. In a state radio interview on Friday, Mr. Orban said further curbs may be introduced later, without providing specifics.

CZECH REPUBLIC
The Czech Republic recorded its worst week of infections since March, when it endured one of the deadliest outbreaks in the world. Hospitalizations are at a six-month high, and fatalities are also rising.

The country is tightening rules to make it harder for unvaccinated people to visit restaurants as well as sporting and cultural events. But the outgoing government is refusing to impose harsher social distancing measures or shut down parts of the economy again. — Bloomberg

Iraq prime minister safe after residence attacked by drone

November 7, 2021 | 5:24 pm

Iraq-Flag — THE SHADOW of an Iraqi demonstrator is seen on an Iraqi flag in Kerbala, Iraq, Jan. 10, 2020. — REUTERS

BAGHDAD — A drone laden with explosives targeted the residence of Iraqi Prime Minister Mustafa al-Kadhimi in Baghdad early on Sunday in what the Iraqi military called an attempted assassination, but said Mr. Kadhimi escaped unhurt.

The attack, which security sources said injured several members of Mr. Kadhimi’s personal protection detail, came after protests in the Iraqi capital over the result of a general election last month turned violent.

The United States Department of State condemned the attack and offered assistance with the investigation.

“This apparent act of terrorism, which we strongly condemn, was directed at the heart of the Iraqi state,” spokesman Ned Price said in a statement. “We are in close touch with the Iraqi security forces charged with upholding Iraq’s sovereignty and independence and have offered our assistance as they investigate this attack.”

The groups leading protests and complaints about the result of the Oct. 10 vote are heavily-armed Iran-backed militias which lost much of their parliamentary power in the election. They have alleged voting and vote-counting irregularities.

No group immediately claimed responsibility for the attack on Mr. Kadhimi’s residence in Baghdad’s fortified Green Zone, which houses government buildings and foreign embassies.

A statement from the Iraqi military said that the attack targeted Kadhimi’s residence and that he was in “good health”. It provided no further detail.

Mr. Kadhimi’s official Twitter account said the prime minister was safe and called for calm.

Two government officials said Mr. Kadhimi’s residence had been hit by at least one explosion and confirmed to Reuters that the prime minister was safe.

Security sources told Reuters that six members of Mr. Kadhimi’s personal protection force stationed outside his residence had been injured.

Western diplomats based nearby in the Green Zone said they heard explosions and gunfire in the area.

Supporters of Iran-aligned militia groups which have grown their power in parliament and government in recent years have protested the results of the October election.

Demonstrations by their supporters turned violent on Friday when protestors pelted police with stones near the Green Zone, injuring several officers.

The police responded with tear gas and live gunfire, killing at least one demonstrator, according to security and hospital sources in Baghdad.

Independent analysts say the election results were a reflection of anger towards the Iran-backed armed groups, which are widely accused of involvement in the killing of nearly 600 protesters who took the street in separate, anti-government demonstrations in 2019. — Reuters

10 reasons why millennials should get a life insurance

November 7, 2021 | 9:15 am

As millennials, we tend to believe we don’t need life insurance because we’re young and healthy. Most of us are career-driven, and it’s true that we can be busy trying to save up for our future and our growing responsibilities that it might sound too early to think about death.

But when it comes to planning for the future, it’s when we need insurance more than we think we do, especially when faced with responsibilities. If you’re thinking of getting one, Frances Chua, one of the longest platinum qualifiers in 2021, gives 10 reasons as to why you should go for it:

1. Everybody needs protection — young or old.

We might think we are young and healthy now, but no age is immune to accidents and illnesses. Like how the saying goes: prevention is better than cure. We need protection just as much as older people do.

2. It’s more affordable.

Being young means we are considered low-risk customers, which can also mean lower costs, and it can be more beneficial if we are living a healthy lifestyle. This is more fitting to be applied on insurance premiums because the application is settled without rating.

3. Protection and investment: hitting two birds with one stone.

As we work for our future, we tend to prioritize investment over protection — but we can do both. Insurance protects us and our assets, but it can also be a form of investment.

“Plans like VUL funds from Sun Life is a good starting point because it provides both,” suggests Chua, “Or you may opt for the Fit and Well plan, which is more affordable. It covers critical illness even if you’re young and healthy.”

4. Insurance is our spare tire.

Imagine you’re driving somewhere with your car, but you have no spare tire. When you get a flat tire, there will be more obstacles before you get to your destination such as more costs from service and the like. This is what insurance represents — it helps us reach our goals despite unpredicted troubles that might come along the way.

5. Become 10 steps ahead when planning for the future.

As career-driven people, we tend to become competitive and eager to reach our goal. With an insurance policy, we are already 10 steps ahead. Our future is secured, and at the same time, we accumulate more savings.

6. Life insurance also caters to low-income groups.

If we are balancing with familial responsibilities partnered with insufficient income, it can be difficult to consider spending money. But insurance doesn’t have to be a burden in our pockets. Companies like Sun Life offer whole life plans where premiums remain the same, or term insurance that is best suited for low-income groups. So worry not — we all have the right to be protected.

7. A backup from your company insurance.

You may be an employee with a covered insurance, but sometimes it can be insufficient. And when you quit your job, you won’t be able to take the benefit with you. Hence, it’s best to provide a backup.

8. Avoid expensive funerals.

We know that burials and funerals are a part of Filipino tradition we can never dismiss, but they’re also getting expensive. Insurance gets this covered. Whether you have dependents or not, when worse comes to worst, it’s better to spare your family from funeral costs.

9. Spare your family from debts.

As we work hard for a secured future, debts are unavoidable, but so are accidents. Should anything happen to us, insurance coverage can prevent our debts from piling up on our family’s doorstep. If we are to pass away, we can give our family time to grieve without burdening them with our financial debts.

10. Secure your family’s lifestyle.

Some of us are breadwinners and some of us build our own family young. When we pass away, we take our income with us. Presence matters more, but when they are financially dependent on us, it is also vital to consider their future. The right insurance coverage can take care of expenses and maintain our family’s lifestyle in case we are no longer there to provide.

Regardless of whether we are young and healthy, or whether we have dependents or not, planning our future should be an utmost priority. “If one is responsible, and he loves his family, and he has dreams for his loved ones, then you know he is a candidate for insurance,” Frances Chua says.

Frances Chua is an IQA certified Sun Life Financial Advisor.

For more information and inquiries, visit the Sun Life website at https://www.sunlife.com.ph/en/

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

Why buying life insurance is an act of love

November 6, 2021 | 9:05 am

While the COVID-19 pandemic has changed our lives in the most uncertain ways, there’s one thing Sun Life gold awardee Teresa Gerona is sure of: We must plan and prepare for the future.

She shares this timely nugget of wisdom, “By getting insured, you sleep well at night knowing that in case the inevitable happens, your loved ones will remember you as having loved them not just for a lifetime but beyond.”

She elaborates, “Definitely, in these times of uncertainty and grave threats to our lives due to the pandemic, we must be made aware of the urgency of having to protect one’s precious life. And this can only be addressed through Sun Life’s life insurance and health products/solutions.”

Leaving a legacy

For Teresa, you’re buying a life insurance not because you’re going to die but because your loved ones are going to live. Indeed, it’s not just a life insurance but a “love insurance,” because it’s a legacy you leave behind for your family or the people you love.

The longest gold qualifier, Teresa Gerona was recruited into Sun Life Philippines in 1985. “I was trained and mentored by the late Richard Young, my beloved unit manager, back then, when I was considering changing careers,” she fondly looks back.

“Eventually, there were trainings and courses introduced by Sun Life and others offered by the Life Underwriters Association of the Philippines, which I took.” It took almost two years before she was released by her former employer and went full time for Sun Life. Today, she’s been with Sun Life for over 36 years — and counting!

She declares in no uncertain terms, “I treasure and take pride in being with the first, oldest, and biggest life insurance company in the Philippines. And to those who might be hesitant and think that their insurance company may fold up, I can only say, ‘Why not get covered with Sun Life, which has been around for 126 years and is committed to serve and stay for the next centuries to come?'”

Financial and health security

Teresa has traveled around the world, either on company-sponsored trips or personal ones with her family, thanks to the generous bonuses she gets from Sun Life. “But other than the perks, I can’t emphasize enough the mission I’m committed to fulfill: to see every Filipino achieve lifetime financial and health security,” she firmly asserts. Sun Life takes care not only of its clients’ financial well-being but also of their physical health. Through its Go Well campaign, it helps clients to keep fit and healthy through workouts, trainings, and fitness classes.

While Teresa has stashed away some savings from her own life insurance policies, she’s enabled her clients to do the same thing “to meet their goals for themselves and their loved ones.”

She points out, “A person’s needs for life insurance vary, depending on the money life stage he’s in. But whatever stage that is, a financial adviser is there to help him map out his road to financial freedom and a healthier lifestyle.”

For Teresa, there’s nothing like having complete peace of mind by protecting your family’s financial/health future against the unforeseen events in life. So, shouldn’t we prepare the umbrella before it rains?

Teresa Gerona is an IQA certified Sun Life Financial Advisor.

For more information and inquiries, visit the Sun Life website at https://www.sunlife.com.ph/en/

Join us on Viber to get more updates from BusinessWorld: https://bit.ly/3hv6bLA.

Inflation slows to three-month low

November 5, 2021 | 8:04 pm

Inflation eased to a three-month low in October amid a slower increase in food prices, the Philippine Statistics Authority reported on Friday.

Headline inflation settled at 4.6%, slower than the 4.9% median estimate of 21 analysts in a BusinessWorld poll last week.

“The Bangko Sentral ng Pilipinas (BSP) stands ready to maintain its accommodative monetary stance for as long as necessary to support the economy’s sustained recovery to the extent that the inflation outlook would allow,” Governor Benjamin E. Diokno told reporters in a Viber group message.

The central bank would assess price developments before the Nov. 18 policy meeting of the Monetary Board, he added.

He also said the P1-billion fuel subsidy grant to vehicle operators should help support the transport sector and help prevent second-round effects amid rising oil prices.

The October figure was slower than 4.8% in September, though faster than 2.5% a year earlier. This brought the 10-month inflation to 4.5%, faster than the 4.4% forecast by the Philippine central bank for the year.

This was the third straight month inflation exceeded the 2-4% target of the Bangko Sentral ng Pilipinas for the year. Inflation has topped the BSP target this year except in July.

Easing inflation in October was mainly due to the slower increase in the prices of food and nonalcoholic beverages, which rose by 5.3% compared with 6.2% in September. The price increases for meat, vegetables and fish eased last month.

Other items that caused inflation to slow were alcoholic beverages and tobacco (9.8% from 10.5%), education (0.7% from 0.9%) and restaurant and miscellaneous goods and services (3.7% from 3.9%).

On the other hand, prices of major commodities picked up including transport (7.1% from 5.2%); housing, water, electricity, gas and other fuels (4.4% from 3.8%); furnishing, household equipment (2.5% from 2.4%); health (3.2% from 3.1%); and recreation (1% from 0.9%).

Core inflation, which excludes items with volatile price movements such as food and energy, quickened to 3.4% from 3.3% in September. Inflation for the bottom 30% income households also eased to 4.8% last month from 5% in September.

The government would continue to implement policies to ensure affordable food prices and support the transport sector, the National Economic and Development Authority said in a statement.

“Many countries, particularly net oil importers such as the Philippines, are feeling the impact of the rising world oil prices,” Socioeconomic Planning Secretary Karl Kendrick T. Chua said. “We will continue monitoring the global developments so we can urgently respond to the impact of elevated oil prices on ordinary Filipinos, especially our public utility vehicle drivers.”

Despite the easing last month, inflation might remain high in the next months due to rising oil prices, Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said.

“Oil is expected to stay elevated in the coming months as supply will likely remain tight especially during winter,” he said in an e-mailed note. “Major oil-producing countries have kept their production plans despite the improvement in demand.”

ANZ Research Chief Economist Sanjay Mathur and economist Debalika Sarkar said they were “a little concerned with the sequential rise in inflation, which seems excessive at this stage of the business cycle”

But the slowing inflation was in line with the central bank’s guidance and accommodative stance as it stressed that rising prices were temporary, they said.

“A second month of deceleration in annual food and nonalcoholic beverage prices indicates that transitory influences are fading and over the next few months, push inflation lower into the official target range of 2-4% by end-2021,” according to the ANZ report. — Luz Wendy T. Noble

September exports, imports grow

November 5, 2021 | 8:02 pm

By Revin Mikhael D. Ochave, Reporter

Philippine exports and imports rose in September amid a pickup in global economic activity, the local statistics agency said on Friday.

The value of exports increased by 6.3% year on year to $6.68 billion, better than 3.4% a year earlier, the Philippine Statistics Authority (PSA) said in a report, citing preliminary data.

The value of imports also rose by a quarter to $10.67 billion from a year earlier, reversing a 9.9% decline a year ago.

The September export and import figures resulted in a trade deficit of $4 billion, wider than $2.27 billion a year earlier and the revised trade deficit of $3.51 billion in August, the PSA said.

This brought the nine-month trade gap to $29.19 billion worse than $17.95 billion a year earlier.

Nine-month exports rose by 18% year on year to $55.68 billion, while imports increased by 30.3% to $84.87 billion.

The Development Budget Coordination Committee expects exports and imports to rise by 10% and 12% this year.

Exports of manufactured goods rose by 4.3% to $5.43 billion and contributed 81.2% of total exports in September.

Exports of electronic products increased by 5.4% to $3.82 billion, accounting for 57.1% of total exports. Of the total, semiconductors contributed $2.85 billion.

Exports of mineral products also improved by a third to $707.14 million, while agro-based products fell by 0.5% to $418.37 million.

Exports of forest products rose by 19.7% to $34.59 million, while petroleum products fell by a third to $214,108.

Meanwhile, imports of raw materials and intermediate goods rose by 30.1% to $4.51 billion, while capital goods rose by 8.3% to $2.98 billion. Consumer goods increased by 5.3% to $1.68 billion, while mineral fuels, lubricants and related materials more than doubled to $1.43 billion.

The country’s September trade performance was within expectations, said Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc.

“Imports were expected at 21.1%, with the actual figure at 24.8%, and exports were estimated at 6.4%, with the actual number at 6.3%,” he said in an e-mail.

He also traced higher import numbers to further economic reopening and companies restocking on products before the holiday.

“The import headline figures seem to indicate that while the economy is still far from perfect shape, it has recovered substantially from previous quarters,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a Viber message.

September imports were bigger than any month in 2019, with capital spending sustaining its rise toward full recovery, he added.

Trade Secretary Ramon M. Lopez traced the export performance to the reopening of global markets. “This is due to the reopening of the global markets, and the protocol we have adopted even during the enhanced community quarantine days when we allowed 100% operating capacity for export industries,” he said in a mobile phone message.

“The higher imports are expected as economic activities are bouncing back with the easing of quarantine restrictions,” the Trade chief said. “You will see that bulk of imports are raw materials, intermediate and capital goods, which are inputs to our industries.”

Nicholas Antonio T. Mapa, ING Bank NV Manila Senior Economist, said imports increased from low levels last year.

“Imports have indeed rebounded as the economy gradually hums back to life,” he said in an e-mail. “However, a big reason for the surge in inbound shipments can be traced to international developments and to a lesser extent due to the rebound in the economy.”

Mr. Asuncion expects the country’s exports to grow by 17% this year, while imports would probably rise by 36%.

The widening trade gap could weigh the peso as the economy continues to recover, Mr. Neri said. “This is more so if the Bangko Sentral ng Pilipinas (BSP) decides to keep policy settings ultra-accommodative.”

In September, BSP kept the key policy rate at 2%. Overnight deposit and lending rates remained at 1.5% and 2.5%.

“The wider trade deficit, and more importantly, the movement of its components suggest that GDP momentum has improved but remains subdued and will need some time before a full recovery is made,” Mr. Mapa said.

Daily virus tally may fall to fewer than 1,000

November 5, 2021 | 8:00 pm

face-mask-Public Market — PHILIPPINE STAR/ MICHAEL VARCAS

Daily coronavirus infections in the Philippines could fall to fewer than 1,000 by the end of the month, according to researchers from the country’s premier university.

The granular lockdowns in the capital region had helped reverse a surge of the more contagious Delta coronavirus variant, OCTA Research Group fellow Fredegusto P. David told CNN Philippines on Friday.

“We previously made a projection that we would be at possibly less than 2,000 cases per day in the whole country by the end of November, but it’s just the first week of November and we are already seeing 1,500 to 1,700 cases,” he added.

Mr. David said he agrees with easing restrictions in Metro Manila to Alert Level 2 starting Nov. 5 before the holiday. “Having the Alert Level 2 now is timely because it’s almost halfway through the fourth quarter and this is the time for businesses to recover from losses during the year,” he added.

Presidential spokesman Herminio L. Roque, Jr. on Thursday said the capital region would be under Alert Level 2 until Nov. 21.

Under the lockdown level, businesses may operate indoors at 50% capacity. They will get an additional 10% capacity if they have a so-called safety seal from the government. For outdoor operations, they may operate at 70% capacity.

It will also allow minors to leave their homes. Local government units can impose “reasonable restrictions” on their movements as long as they are not stricter than higher alert levels.

Meanwhile, Mr. David tweeted that average cases in Metro Manila had fallen to 493, the lowest since Feb. 18.

The Department of Health (DOH) reported 2,376 coronavirus infections on Friday, bringing the total to 2.8 million.

The death toll rose to 44,085 after 260 more patients died, while recoveries increased by 2,109 to 2.7 million, it said in a bulletin.

There were 37,377 active cases, 69% of which were mild, 5.4% did not show symptoms, 8.2% were severe, 13.94% were moderate and 3.5% were critical.

The agency said 32 duplicates had been removed from the tally, 24 of which were reclassified as recoveries, while 219 recoveries were relisted as deaths. Four laboratories failed to submit data on Nov. 3.

Meanwhile, the alert level system first tested in Metro Manila would be expanded nationwide by Dec. 1, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing. The state started granular lockdowns in the capital region in mid-September to spur business activity.

Under the second alert level, conferences, entertainment venues, personal care establishments and fitness studios may operate at 50% indoor capacity and 70% outdoors as long as their workers have been fully vaccinated against the coronavirus. — Russell Louis C. Ku and Alyssa Nicole O. Tan

1...7,2917,2927,293...14,273 Page 7,292 of 14,273