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Uniqlo donates $1M for PHL typhoon relief efforts

Japanese global apparel retailer Uniqlo on Friday said it is donating $1 million (around P48 million) for efforts to help families affected by Typhoon Rolly and Typhoon Ulysses in the Philippines.

Uniqlo, through its parent company Fast Retailing, will donate $1 million to the SM Foundation of the SM Group. The SM Group is the management partner of Uniqlo in the Philippines.

“The donation will be used to provide emergency food supplies and rebuild flooded housing, as well as build preventative infrastructure in areas susceptible to flooding,” the company said in a statement.

Uniqlo Philippines will donate 300,000 Airism masks to affected areas through the SM Foundation. The masks will be donated to evacuees in typhoon-hit areas in Bicol Region, Bulacan, Cagayan, Isabela, Pampanga, and Rizal provinces, as well as Marikina City.

“Uniqlo hopes for the speedy recovery of these regions and that the families affected by these disasters can return to their normal lives as soon as possible,” the company said.

Uniqlo operates 60 stores throughout the Philippines.

PSEi surges to 7,100 level after surprise BSP rate cut

STOCKS ended higher on Friday after the central bank cut benchmark rates to new record lows, drawing positive reactions from investors.

The benchmark Philippine Stock Exchange index (PSEi) gained 172.17 points or 2.46% to close at 7,169.79 on Friday, while the broader all shares index gained 81.85 points or 2.22% to finish at 4,219.39.

“The PSEi had an exceptional day rallying by almost 2.5%, allowing it to end with a substantial gain for the week.
It may have been the surprise interest cut from the Bangko Sentral ng Pilipinas (BSP) that drew this extremely positive reaction,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a mobile message on Friday.

He added that the week’s gains “marked three consecutive weeks of advances for the PSEi.”

The Monetary Board on Thursday slashed rates on the BSP’s overnight reverse repurchase, lending, and deposit facilities by 25 basis points (bps) to fresh record lows of 2%, 2.5%, and 1.5%, respectively.

Aside from the interest rate cut, the PSEi crossed the 7,100 mark as investors were hopeful that US lawmakers can pass a coronavirus stimulus package, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate mobile message.

US stocks also recorded gains: the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices inched up by 0.15 %; 4.03 % and 3.37 %, respectively. Asian stocks were mixed when the local bourse closed on Friday.

Back home, all PSEi indices recorded gains: mining and oil by 229.54 points or 2.88%; holding firms by 206.37 points or 2.86%; industrials by 155.13 points or 1.7%; property by 99.63 points or 2.83%; financials by 38.95 points or 2.8%; and services by 7.56 points or 0.48%.

Some 32.04 billion issues valued at P10.94 billion switched hands on Friday, higher than the previous day’s 11.78 billion issues valued at P11.12 billion.

Advancers led decliners, 159 against 66, with 45 names closing unchanged.

Foreigners turned buyers, with net inflows recorded at P211.34 million on Friday from net sales worth P1.09 billion in the previous session. — Angelica Y. Yang

Human beings live longer, can healthcare systems keep up?

Human beings live for an average of 72 years. In 1960, the year the United Nations began keeping global data, this number was 52.5 years. 

Gains in life expectancy at birth, according to the Organisation for Economic Co-operation and Development, can be attributed to a number of factors, including rising living standards, improved lifestyle and better education, as well as greater access to quality health services. 

These added years, however, also tax the world’s support systems. 

“How do you move from a break-and-fix system, where you break a bone and then go to the hospital, to a predictive and preventive type of system?,” asked Steve Sugino, president and representative director of Tokyo-based biotechnology company Amgen K.K. 

Healthcare costs are consumed at the very end of life, said Mr. Sugino, who stressed the importance of having broader access to preventive medicines such as generic statins for lipid control. 

“We should move to the stage of secondary prevention of chronic diseases,” he said at a discussion on leading longer and healthier lives at the Future on Healthcare Asia conference. Secondary prevention is defined as “screening to identify diseases in the earliest stages, before the onset of signs and symptoms, through measures such as mammography and regular blood pressure testing.”

SILVER TSUNAMI

Asia is facing a silver tsunami. The United Nations says that by 2050, 1 in 6 people in the world will be over the age of 65, up from 1 in 11 in 2019. Globally, a person aged 65 years in 2015–2020 could expect to live, on average, an additional 17 years. 

Population aging has been fastest in East and Southeast Asia (where the percentage of the population aged 65 years or over almost doubled from 6% in 1990 to 11% in 2019), and Latin America and the Caribbean (where the percentage of the population aged 65 years or over rose from 5% in 1990 to 9% in 2019).

To live the life one chooses, and to be as functional for as long as possible, is often the exception rather than the rule, said The Economist Group editorial director Charles Goddard, at the same virtual event. Longer lifespans come with a greater risk of diseases like cancer and dementia, which, in turn, means pressure on support systems.

Japan, which has the oldest population in the world, has one of the most comprehensive social care systems for the elderly. Built around the aim of reducing the burden of care for families, its public, mandatory, long-term care insurance (LTCI) program covers both institutional and community-based caregiving. Those aged sixty-five and older are eligible for benefits based on physical and mental disability.

The Japanese government also has a health and productivity management program for enterprises, in which “enterprises focus on and strategically carry out efforts with regard to maintaining their employees’ health from a management perspective.” One-fourth of all companies in the Tokyo Stock Exchange are part of this program, said Inamura Takuma, Japan’s director of the Ministry of Economy, Trade and Industry’s Healthcare Industries Division.

“We have updated our healthcare system for aging but it’s not enough. We have to accelerate,” Mr. Takuma told the Future of Healthcare Asia panel on aging. He added that COVID-19 exposed many blind spots in the system. While Japan has “deep respect for the elderly” and “many private enterprises producing good products and services,” Mr. Takuma admitted that they have been slow in deploying digital technology. “It’s a good time to review,” he said.

Mr. Sugino added that everyone is thinking of aging from a policy point of view but that there’s not enough being done about it: “Asia is leading the world in terms of aging. There isn’t a playbook or precedent in Europe that we can emulate. This really has to come from Asia. Given the magnitude of the problem, no single entity is going to be able to tackle this.”

HEALTHY AGING

To create a more holistic approach to healthy aging, themes such as social security nets, health technologies, and immigration policies, have to be brought together. Primary care structures are important in Asia, where most healthcare systems are hospital-based.

“The triumph of longevity is wonderful for humanity and society but it also presents many challenges,” said Karen Eggleston, director of the Asia Health Policy Program at Shorenstein Asia-Pacific Research Center. “Demography tends to work more slowly than a financial crisis but it can creep up on you.” 

While population aging does not lead inevitably to macroeconomic decline, no one has a panacea for a whole-of-life approach to aging, said Ms. Eggleston. Questions such as what works in which context need to be answered on a per case basis. Japan’s mandatory annual health checkups, for instance, and Korea’s subsidized health checkups, may not be the solution for other nations. She added that behavioral change is difficult and no one policy will solve everything. 

Everyone has a responsibility to whole-of-life aging. Gary Khoo, director of the healthy aging division of Singapore’s Health Promotion Board, said that the government’s role is to keep people well and healthy, and to educate the elderly on life aspects that one needs to pay attention to as one ages, such as muscle loss and nutrition. 

“We also want to move upstream,” he said. “We should start to focus on this early. For instance, at age 30, we start to lose muscle mass but we don’t think about it because we’re still able to go out and see friends. Then as you get older, you start to wonder why it’s harder to get up from a chair. If you start [focusing on] well-being and nutrition early on, by the time you reach 65, you improve your quality of life.” — Patricia B. Mirasol

Resumption of West PHL Sea exploration to help economic revival

THE LIFTING of the suspension of exploration activities in the West Philippine Sea will help in the country’s economic recovery, the Energy secretary said during an Association of Southeast Asian Nations (ASEAN) regional energy forum on Thursday.

“This development would augur well for our economic recovery in the midst of the COVID-19 pandemic, given that the resumption of work would infuse our economy with fresh investments and help generate high-skill employment opportunities,” Department of Energy (DoE) Secretary Alfonso G. Cusi was quoted as saying in a statement Friday.

This comes about a month after President Rodrigo R. Duterte told the DoE to lift the moratorium on activities and resumption of petroleum exploration in the parts of the West Philippine Sea.

During the forum, Mr. Cusi also asked the ASEAN Council on Petroleum to revisit existing sharing agreements on oil and gas exploration and production, and make recommendations on new measures that can be adopted. According to him, this will “fast track the ASEAN’s goal of reaching energy security.”

He also encouraged national oil companies based in the ASEAN to “explore joint oil and gas exploration and development.”

The DoE this month reminded Philippine exploration companies that they do not need to seek China’s approval in surveying and drilling in parts of the West Philippine Sea.

Last month, Mr. Cusi said that service contractors (SC) 59, 72 and 75 in the West Philippine Sea were issued “resume-to-work” notices. The state-led Philippine National Oil Co.-Exploration Corp. operates SC 59. Forum Ltd. and PXP Energy Corp. operate SC 72 and SC 75, respectively. — Angelica Y. Yang

BoI approves P45-M hotel project in Cebu

THE BOARD of Investments (BoI) has approved a P45-million hotel investment project in Cebu City.

The 63-room SureStay Plus Hotel is expected to create 32 direct and indirect jobs in the first five years of its operations, BoI said in a press release on Friday.

The project is the Cebu Quad Management Corp.’s second premium economy hotel with SureStay Plus Hotel by Best Western. The first hotel was in Angeles, Pampanga.

BoI added the hotel will use information technology systems for contact tracing, online booking, and digital payments.

“The tourism sector has been one of the worst affected of all the major sectors of the economy due to the current health crisis,” Tourism Secretary Bernadette Romulo-Puyat said.

“By providing investment incentives, we hope that the sector, which was a major driver of the economy’s growth pre-COVID-19, will stay afloat, continue business operations, and recover the soonest while ensuring the health, safety and wellness of tourists.”

Tourism establishments looking to improve or modernize facilities for health safety may apply to register for incentives under the BoI. The board will grant a three-year income tax holiday and will allow duty-free importation of capital equipment for the projects.

“Even tourism facilities in Boracay, which currently do not qualify for incentives for new and expansion projects because of locational restrictions, may qualify for this special type of incentives for COVID modernization/upgrade projects,” Ms. Puyat said.

The Philippines may only see a significant rise foreign tourist arrivals starting late 2021 or early 2022 as uncertainty over the pandemic continues, Fitch Ratings said last month. — Jenina P. Ibañez

Gov’t rejects tax credits for erring textile firms

THE GOVERNMENT took back P153.13 million in tax credits granted to textile firms due to their engagements in illegal transactions, the Department of Finance (DoF) said on Friday.

“The four errant textile companies had illegally acquired the TCCs (tax credit certificates) over a four-year period from 2008 to 2012,” the agency said in a statement on Friday.

The Commission on Audit (CoA) issued notices of disallowances to Capital-Roll Knit Corp., Uni-Glory’s Knitting Corp., Primeknit Manufacturing Corp. and Tai-Cheng Integrated Resource Inc. The firms were earlier found to have gotten away with P605.98 million in illegal tax perks. This brought their combined tax credit rejections to P759.12 million.

Under Executive Order 226 or the Omnibus Investments Code, tax credits are available to exporters and manufacturers of products registered with the Bureau of Investments. This could be used by exporters that have paid duties and taxes on the raw materials and supplies they used in manufacturing their goods.

Once applications for TCCs are approved, firms can get refunds on duties paid.

However, TCCs are sometimes issued to ghost exporters and bonafide companies that do not deserve the tax credits.

Aside from the four business establishments, two other firms had their TCCs worth P59.5 million junked by the CoA.

“Several officials and employees of the DoF, BoI (Board of Investments), Bureau of Customs (BoC) and OSS (One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center) who were responsible for processing and approving the illegal TCCs in the past, as well as their recipients and claimants from the four companies, were held liable by COA in various instances when the TCCs were issued,” the DoF said. — LWTN

BSP sells P60 billion in 28-day bills

THE BANGKO SENTRAL ng Pilipinas (BSP) made a full award of the 28-day securities it offered on Friday amid excess liquidity in the financial system and following the latest reduction in key policy rates.

The BSP awarded P60 billion in its one-mont bills as planned as the offering was oversubscribed, with bids hitting P123.8 billion, going beyond the P88.9 billion in demand a week ago, data from the central bank’s website showed.

The BSP has made a full award of its short-term bills for 10 consecutive weeks since its maiden issuance in September.

Accepted rates for the one-month papers tanged from 1.68% to 1.75%, a lower margin compared to the 1.875% to 2% band logged a week ago. This caused the average yield to settle at 1.7135%, 24.86 basis points (bps) lower than the 1.9621% recorded the previous auction.

The 28-day bills are part of the central bank’s tools to gather excess liquidity and to better guide short-term interest rates.

The lower yields came following the latest easing move of the central bank, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The BSP Monetary Board on Thursday unexpectedly slashed benchmark interest rates by another 25 bps, citing a critical need for policy support amid a slower pace of recovery and continued uncertainty as coronavirus infections surge anew in certain economies.

This brought down the rates on the BSP’s overnight reverse repurchase, lending and deposit facilities to new record lows of 2%, 2.5%, and 1.5%, respectively.

“It is important to note that the 28-day BSP securities yield of 1.7135% is unusually below the key overnight policy rate of 2% and the latest inflation rate of 2.5%, evidently amid excess liquidity in the financial system,” Mr. Ricafort said in a text message. — L.W.T. Noble

Peso climbs after BSP rate cut

THE PESO strengthened versus the dollar on Friday following the central bank’s decision to cut benchmark interest rates to fresh record lows.

The local unit closed at P48.23 against the dollar on Friday, rising by 8.5 centavos from its P48.315 finish on Thursday, data from the Bankers Association of the Philippines showed.

The peso opened Friday’s session at P48.27 to a dollar which was also its weakest showing. Its intraday best was logged at P48.21 against the greenback.

Dollars traded declined to $660.6 on Friday from $692.3 million the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso rose after the Bangko Sentral ng Pilipinas (BSP) slashed key interest rates to new record lows.

“This will help boost economic recovery prospects in terms of further reducing borrowing costs, spur greater demand for loans that boost investments, jobs, economic opportunities, and more gains in the local financial markets,” Mr. Ricafort said in a text message.

The BSP Monetary Board on Thursday unexpectedly slashed benchmark interest rates by another 25 basis points (bps), citing a critical need for policy support amid a slower pace of recovery and continued uncertainty as coronavirus infections surge anew in certain economies.

This brought down the rates on the BSP’s overnight reverse repurchase, lending and deposit facilities to new record lows of 2%, 2.5%, and 1.5%, respectively.

The latest easing move followed a “prudent pause” by the BSP since its June meeting. The central bank has already cumulatively lowered interest rates by 200 bps this year.

Another trader said the rate cut increased demand for the peso. — KKTJ

Bills modernizing PHL banking sector pushed

A LAWMAKER on Friday pushed for the passage of several measures aimed to modernize the country’s banking sector.

During a virtual hearing of the House Banks and Financial Intermediaries Committee, House Ways and Means Chair Jose Maria Clemente S. Salceda pushed for the passage of House Bill No. 5193 or the Virtual Banking Act, which will help the entry of digital banking players and provide a framework that would encourage traditional banks to participate.

“Physical banking services have declined in accessibility, and during a pandemic, operating them poses some risk to consumers and employees. Banks also have a tendency to provision excessively in times of crisis, as opposed to expanding services in sectors in heightened need of capital,” he said.

Mr. Salceda said HB 7660 or the proposed Financial Technology Industry Act would also help and encourage the development of new financial technologies (fintech) in the country. The measure creates a Financial Technology Office in the Bangko Sentral ng Pilipinas (BSP) to institutionalize the fintech industry and formulate a Financial Technology Industry Roadmap.

The lawmaker is also pushing for the passage of HB 7864 or the Blockchain Technology Development Act to help encourage the study and application of distributed ledger technology, “which could make services cheaper and more efficient.”

Mr. Salceda likewise called for the passage of HB 7863 or the Fair and Inclusive Credit Reporting Act, which encourages credit transmission to underserved sectors by encouraging the use of “big data” to improve credit risk assessment and relationship management.

Mr. Salceda said the Congress would be able to create “a policy environment that incentivizes and compels traditional banks to innovate” by passing his proposed measures.

These reforms constitute a “creative disruption of a seemingly unchanging sector,” he added.

Industry associations like the Bankers Association of the Philippines and the Chamber of Thrift Banks expressed support for the bills. The BSP, Securities and Exchange Commission, and the Department of Information and Communication Technology also expressed support for various provisions of the bills. The Credit Information Corp. has also expressed support for HB 7863.

Committee chair Junie E. Cua said a technical working group which he will chair will be created to study the bills.

BSP Monetary Board member Bruce J. Tolentino, meanwhile, said the modernization of the banking sector won’t be possible without improving the country’s digital infrastructure. — K.A.T. Atienza

Etiqa Philippines provides E-ZY pneumonia plan to PNP

In conjunction with World Pneumonia Day which was held on 12 November 2020, Etiqa Philippines, in its constant pursuit to Make The World A Better Place, has distributed free 6-months coverage for pneumonia related hospitalization expenses, including those caused by Covid-19, to the Philippine National Police’s (PNP) 28,000 strong police force, through the Company’s innovative E-ZY Pneumonia Plan. The plan covers up to P50,000 worth of room/ board and general hospital services and up to P10,000 accidental death and dismemberment benefits to the insured.

With this, Etiqa Philippines hopes to help mitigate any anxieties that police officers might have for their health and well-being, and to provide peace of mind for providing protection to our citizens, as they face not only common criminal threats, but also put their health and lives on the line with the continuing pandemic.

This program, which was spearheaded by Ms. Diana binti Mohamad, was borne out of the company’s continuing advocacy for the community: “Our previous CSR initiative involves the donation of much needed PPE sets to our medical front liners from major hospitals across Metro Manila.  Now, we express our solidarity with the country’s PNP front liners by providing them with financial protection from medical expenses should pneumonia strike.  We believe that the Filipino people can always rise to the occasion during times of difficulties with the help of their fellow citizens.”

On 18 November, 2020, a formal signing of the memorandum of agreement was held at the Hinirang Hall, NCRPO Regional Headquarters at Camp Bagong Diwa, Taguig City.  This event was led by Etiqa Philippines’ President and CEO, Mr. Rico T. Bautista; Executive Vice President and head of Strategic Division, Ms. Diana binti Mohamad; newly appointed Regional Director of the PNP’s NCRPO, Brigadier General Vicente Danao Jr. and Southern Police District Director PBGEN Emmanuel Peralta.

During the signing ceremony, Brigadier General Danao expressed his thanks to Etiqa Philippines: “On behalf of the Philippine National Police, particularly the NCRPO, we would like to express our utmost gratitude to our benevolent friends from Etiqa for sponsoring this insurance coverage for our police force for 6 months.  This would be of great help to our front liners, especially so as the NCR remains under GCQ from the pandemic.”

Mr. Rico T. Bautista reiterated the company’s commitment to the PNP: “As society confronts the realities of the current pandemic, our police plays an ever more important part in protecting our communities during this stretch of quarantine.  In the spirit of bayanihan, we want to show our appreciation to them by offering coverage for one of the most common complications of severe COVID-19.  We hope that this allows them to carry on their important work while lessening their worries from any unforeseen medical needs.”

Etiqa Philippines embodies the spirit of Humanizing Insurance through employee volunteers, CSR programs, and commitment to give back to community and country with initiatives such as this.

China says has given $2.1 bln of debt relief to poor countries

BEIJING — China has extended debt relief to developing countries worth a combined $2.1 billion under the G20 framework, the highest among the group’s members in terms of the amount deferred, the country’s Finance Minister Liu Kun said on Friday.

Mr. Liu’s comments come as African countries, hammered by the COVID-19 pandemic, face another debt crisis, and will need more long-term help than the latest G20 Debt Service Suspension Initiative (DSSI) offers them to ward off trouble ahead and keep much-needed investments coming in.

The China International Development Cooperation Agency, the country’s aid agency, and the Export-Import Bank of China, the official bilateral creditors, have suspended debt service payments from 23 countries, worth a total of $1.353 billion, Mr. Liu said in a statement on the ministry’s website.

The China Development Bank, as a commercial creditor, signed agreements with developing countries involving $748 million by the end of September, said Mr. Liu.

However, that is tiny compared with the debt developing countries owe China. The poorest countries’ official bilateral debt to G20 countries reached $178 billion in 2019, with 63% of the total owed to China, a World Bank study showed.

A third of the $30.5 billion of public debt service payments due in 2021 by DSSI-eligible sub-Saharan African nations is owed to official Chinese creditors while a further 10% is linked to the China Development Bank, according to the Institute of International Finance.

The United States, China, and other G20 countries have offered the world’s poorest countries— many of which are in Africa—relief until at least mid-2021 and will decide if another six months of extension is needed in April next year.

Mr. Liu said China was willing to step up financial help for developing countries and more support will be given to those hardest hit by the pandemic and under heavy stress, and it will also prioritize COVID-19 vaccine supply to poor economies.

China will also consider making donations to a multilateral debt relief facility if the World Bank decides to set one up, Mr. Liu said. — Reuters 

Link clicks instead of ‘likes’: brands should value passive engagement, explore lighter side

Passive engagement on social media is just as important as active engagement when it comes to quantifying success, according to Hootsuite, a social media management platform. 

Passive engagement is defined as a consumer’s consumption of online content, such as reading a post or watching a video. Metrics for this form of engagement include video completion rates, link clicks, and website traffic. Active engagement, on the other hand, is often more popular among marketers, who measure success by the number of a post’s likes, shares, and comments. 

“[Marketers are] still chasing virality and vanity metrics like retweets, comments, and shares, when the data tells us that the majority of online content is consumed passively,” said Sarah Dawley, content manager at Hootsuite. 

Ms. Dawley cited Hootsuite’s digital data for October 2020, which found that the average Facebook user shared only one post a month and that Twitter’s unique website traffic was three times larger than its monthly active users—meaning there are a lot of people who passively consume content on these platforms (sometimes without even signing up). 

To engage this large but silent audience, marketers should explore the lighter side of their brand, said Ms. Dawley, who cited a study by Global Web Index which found that finding funny or entertaining content is one of the top reasons people use social media. 

“I’m not saying you desperately have to be funny… or go against your brand tone or personality… Just remember that creativity, fun, and lightheartedness is what will help your content really break through that wall of indifference that people have towards brands on social media,” she said.

In the United States, for example, Coors’ Light asked customers to nominate someone who #CouldUseABeer to cope with the “sucky, suck, suck, suckiness” of the pandemic. At the end of the social media campaign, they sent 500,000 beers to customers.

“You’re asking people to go out of their way to engage with your brand… You really need to give them a reason to engage with you if you are asking them to do that,” said Ms. Dawley.

2021 Social Trends is a webinar hosted by Hootsuite on November 19. — Mariel Alison L. Aguinaldo