FDI inflows drop to five-year low in 2020

March 11, 2021 | 12:00 am

FOREIGN direct investments (FDI) to the Philippines slid to a five-year low in 2020, as the coronavirus pandemic drove investors toward safe havens. Read the full story.

Philippines’ freedom score continues to decline amid pandemic

March 11, 2021 | 12:00 am

How PSEi member stocks performed — March 10, 2021

March 11, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, March 10, 2021.

Peso weakens as COVID-19 case tally climbs

March 10, 2021 | 9:00 pm

THE PESO retreated against the greenback on Wednesday amid cautious sentiment due to the continued increase in new coronavirus disease 2019 (COVID-19) infections.

The local unit closed at P48.60 per dollar yesterday, depreciating by 13 centavos from its P48.48 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso started Wednesday’s trading session at P48.45 against the dollar. Its weakest showing was at P48.69 while its intraday best was at P48.43 versus the greenback.

Dollars that changed hands increased to $1.015 billion from $890.25 million on Tuesday.

Risk-off sentiment amid rising infection cases likely caused the peso’s weakness on Wednesday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Department of Health reported 2,886 new patients on Wednesday, bringing the country’s tally to 603,308. Active cases reached 44,470 while deaths hit 12,545. With infections rising, more barangays have been put under localized lockdowns to contain the virus spread.

Meanwhile, a trader attributed the peso’s depreciation versus the dollar to cautiousness ahead of the release of US inflation data.

“The local currency might appreciate should US bond rates increase from the consumer inflation report,” the trader said in an email.

Mr. Ricafort expects the local unit to move within the P48.55 to P48.65 levels on Thursday while the trader gave a forecast range of P48.50 to P48.70 per dollar. — L.W.T. Noble

Shares rise on last-minute buying, easing cases

March 10, 2021 | 9:00 pm

SHARES inched up on Wednesday on last-minute buying as the country reported a slightly lower daily number of new coronavirus disease 2019 (COVID-19) infections, which slightly eased investor concerns.

The Philippine Stock Exchange index (PSEi) climbed by 41.49 points or 0.61% to close at 6,808.32 on Wednesday, while the all shares index moved up by 3.4 points or 0.08% to finish at 4,078.35.

“The PSEi recovered further as buyers picked up shares of companies that took a beating at the beginning of the week. The sentiment improved slightly, as panic selling was calmed by the fact that new COVID-19 cases came in below the 3,000 mark [on Tuesday],” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said in an e-mail.

“The slow recovery in employment for the month of January, emphasized the importance of not returning to a hard lockdown,” Mr. Mangun added.

Preliminary results of Philippine Statistics Authority’s January 2021 round of the Labor Force Survey (LFS) showed around 3.953 million unemployed Filipinos, up from 3.813 million in October 2020 and 2.391 million in January 2020.

This put the unemployment rate at 8.7% in January, unchanged from October 2020 but higher than 5.3% in January 2020.

“The market closed at its intraday high… only due to last-minute buying. Negative sentiment still seems to be more prevalent amid the unchanged unemployment rate, and the spike in inflation and daily COVID-19 cases,” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a Viber message.

Philstocks Financial, Inc. Research Associate Claire T. Alviar meanwhile said the market gained to follow Wall Street’s lead.

“The US markets climbed on the back of the decline of US bond yields as well as the positive sentiment towards the $1.9-trillion fiscal stimulus plan, providing positive sentiment in the local market,” Ms. Alviar said in a Viber message.

Most sectoral indices went up on Wednesday except for financials, which declined by 15.18 points or 1.05% to 1,422.69 and mining and oil, which dropped 88.64 points or 1.03% to 8,515.69.

Meanwhile, holding firms rose by 96.24 points or 1.37% to close at 7,082.36; services increased by 13.04 points or 0.89% to 1,471.98; property went up by 11.56 points or 0.34% to 3,374.64; and industrials improved by 19.37 points or 0.22% to 8,675.99.

Value turnover went down to P11.07 billion on Wednesday with 9.14 billion shares switching hands, from the P19.02 billion seen on Tuesday.

Decliners outnumbered advances, 155 against 72, while 34 names closed unchanged.

Net foreign selling slowed to P78.87 million on Wednesday from P10.55 billion on Tuesday.

“For this week, we expect the index to trade between 6,700 and 6,900 on lack of positive catalyst, as vaccine rollout optimism seems to be waning,” AB Capital Securities’ Mr. Soledad said. — Keren Concepcion G. Valmonte

Gov’t can’t meet daily vaccine goal due to supply constraints

March 10, 2021 | 7:38 pm

THE PHILIPPINE government has been unable to vaccinate at least 250,000 Filipinos daily to meet its 50-million goal this year due to supply problems, according to the country’s deputy chief enforcer of anti-coronavirus efforts.

“The target is roughly 250,000 to 300,000 a day, but it will depend on the supply that we get,” Vivencio B. Dizon, National Task Force Against COVID-19 deputy chief Implementer, told a televised news briefing in mixed English and Filipino on Wednesday.

The government could hit the daily goal once the bulk of vaccines arrive, he added.

The government had only inoculated about 36,000 people as of Mar. 7 since it started its vaccination drive this month, presidential spokesman Herminio L. Roque, Jr. said on Tuesday.

Vaccine czar Carlito G. Galvez, Jr. earlier said the main volume of vaccines bought from drug makers and secured under a global initiative for equal access would arrive by the third and fourth quarters.

President Rodrigo R. Duterte has said Manila was having difficulty getting more vaccine supplies, citing problems in the global supply chain. Rich countries were being prioritized by drug makers, he said.

With a gross domestic product (GDP) per capita of $9,471, the Philippines ranked 76^th among the poorest countries last year.

But poorer nations such as Bangladesh, Cambodia and Còte d’Ivoire, with a GDP per capita of $5,028, $4,664 and $4,457, respectively, got their vaccines before the Philippines, according to the website Our World in Data.

The Chinese government earlier donated 600,000 doses of CoronaVac made by Sinovac Biotech Ltd.

The Philippines on Mar. 4 also took delivery of 487,200 vials of the vaccine developed by British drug maker AstraZeneca Plc. Almost 40,000 more doses arrived on Mar. 7.

The vaccine doses were secured under the World Health Organization (WHO)-led COVID-19 Vaccines Global Access (COVAX).

A million more doses of CoronaVac are expected to arrive this month under a P700-million purchase deal with Sinovac.

Manila will take delivery of about 117,000 vials of the vaccine developed by Pfizer, Inc. under COVAX by April, Mr. Dizon said.

The first batch of Pfizer doses was due to arrive in February but was delayed after the government failed to submit documents freeing the drug maker from potential lawsuits.

Mr. Dizon said the government seeks to vaccinate about 3.5 million health workers by May.

TALLY
The Department of Health (DoH) reported 2,886 coronavirus infections on Wednesday, bringing the total to 603,308.

The death toll rose by 17 to 12,545, while recoveries increased by 221 to 546,293, it said in a bulletin.

There were 44,470 active cases, 91.7% of which were mild, 4% did not show symptoms, 1.7% were critical, 1.7% were severe and 0.8% were moderate.

The agency said four duplicates and two cases found to be negative had been removed from the tally, while four recovered cases were reclassified as deaths. Five laboratories failed to submit data on Mar. 9.

About 8.6 million Filipinos have been tested for the coronavirus as of Mar. 8, according to DoH’s tracker website.

The coronavirus has sickened about 118.2 million and killed more than 2.6 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 93.9 million people have recovered, it said.

Meanwhile, the Health department said the P.1 coronavirus variant from Brazil had not been detected in 3,420 samples.

“We would also like to clarify that a common variant identified among our sequenced samples was of Brazilian origin (B.1.1.28) but not a variant of concern,” it added.

This came after Quezon City Mayor Maria Josefina G. Belmonte told a news briefing on Wednesday that a Brazilian variant had been detected in Quezon City.

The P.1 variant, a branch off the B.1.1.28 lineage, has mutations that affect transmissibility, according to the website of the US Centers for Disease Control and Prevention. — Kyle Aristophere T. Atienza and Vann Marlo M. Villegas

Human Rights Watch seeks UN probe of recent police killings

March 10, 2021 | 7:37 pm

THE UNITED Nations (UN) should investigate the worsening human rights situation in the Philippines, where more than a dozen members of left-leaning groups got arrested and killed by police this month, according to Human Rights Watch.

Phil Robertson, deputy Asia director at the global rights watchdog, urged the UN Office of the High Commissioner for Human Rights to consider sending a rapid response unit to Manila to probe the killings.

“The Southern Luzon raids were apparent politically motivated killings that the police and military have sought to justify with unconvincing justifications that echo ‘drug war’ claims,” he said in a statement on Wednesday.

“UN member states should see through this deadly deception and press for international action that would hold the Duterte administration to account,” he added.

Nine activists were killed and six others were arrested during separate raids by police in the provinces of Laguna, Batangas, Cavite, and Rizal on Mar. 7. Civil society groups have accused authorities of using warrants to harass critics.

The crackdown on activists came after President Rodrigo R. Duterte ordered state forces to “finish off” and “kill” communist rebels and “ignore human rights.”

Philippine National Police spokesman Brig. Gen. Ildebrandi N. Usana earlier claimed the victims had guns and resisted arrest.

M. Robertson said police have used the excuse in the government’s deadly war on drugs.

“Philippine security forces have a long history of unlawful killings, enforced disappearances and arbitrary arrests of leftist activists, human rights defenders and others,” he said.

“The victims in all of these raids belonged to groups that the government had earlier red-tagged, accusing them of being communist guerrillas or their supporters,”he added.

Justice Secretary Menardo I. Guevarra said the UN must have enough information before making a judgment.

“These incidents will be investigated either by the National Bureau of Investigation or by the Administrative Order 35 committee on extrajudicial killings,” he said in a statement.

More than half of thousands of police anti-drug operations under Mr. Duterte violated rules of engagement, Mr. Guevarra told the United Nations Human Rights Council last month.

Police claimed suspected drug pushers were killed after they resisted arrest, he said in a video message at the seventh meeting of the council’s 46^th regular session.

Police also did not conduct a full examination of the weapons recovered from the raids, Mr. Guevarra said, citing the initial results of a government investigation.

Still, he rejected any attempts by the international community to meddle in Philippine affairs.

Meanwhile, the Commission on Human Rights said police claims of suspects resisting arrest need evidence.

Commissioner chief Gwen Pimentel-Gana said access to police records was a “recurring obstacle” in the independent body’s investigations of human rights violations

“This restriction makes it difficult to ascertain the veracity of police claims, as well as the extent of effort extended in investigating deaths said to be not related to law enforcement operations,” she said in a statement.

“We continue to urge the public to ask the government to do more and better in reducing the violence on the ground and in respecting the human dignity of every individual,” she added.

At least 188 activists and community organizers have been killed under the Duterte administration, human rights group Karapatan said last year. — Kyle Aristophere T. Atienza and Bianca Angelica D. Añago

Senate bill mandates refund for internet service disruptions

March 10, 2021 | 7:36 pm

A SENATOR has filed a bill requiring telecommunication companies and internet service providers to give a refund for service disruptions.

These service interruptions affect business and commercial transactions, online classes and even Senate hearings, said Senator Manuel M. Lapid, who filed Senate Bill 2092.

The measure will amend the Public Telecommunications Policy Act of the Philippines.

He also said consumers pay their bills without adjustments or refunds despite frequent service disruptions.

“They are paying for a service that they have not enjoyed or used for hours, if not days through no fault on their part,” he said in the bill’s explanatory note.

Under the bill, internet service providers and telecommunication companies must provide a pro-rated refund credit or adjust the bill of a customer who experienced service interruptions for a total of at least 24 hours or more in a month. The refund should also apply to prepaid subscribers.

The refund or adjustment in the bill should be automatically implemented without the need for a request from the customer, he said. — Vann Marlo M. Villegas

Nationwide round-up (03/10/21)

March 10, 2021 | 7:36 pm

SC tallies cases involving attacks on lawyers, judges

THE Supreme Court (SC) has ordered lower courts to provide information on all pending cases involving attacks on judges, prosecutors, and lawyers in the country as part of the response to address growing concern on the safety of members of the judicial sector. The high court issued a circular on Tuesday instructing judges of first and second level courts to accomplish an online nationwide survey on criminal cases relating to the harassment, threats, attack, and killing of those in the legal profession. The circular, signed by Court Administrator Jose Midas P. Marquez, aims to make an inventory of such cases, including lawyers in private practice. This survey, with a Mar. 19 deadline, is in line with the memorandum of Chief Justice Diosdado M. Peralta in January directing the Office of the Court Administrator “to address the growing concern over the continued attacks against lawyers and judges.” Lawyers’ groups Integrated Bar of the Philippines and the National Union of People’s Lawyers (NUPL) have been making appeals to address the security of lawyers. According to NUPL, at least 54 lawyers and judges have been killed since the Duterte administration started in 2016. — Bianca Angelica D. Añago

Only 11% pass 2020 Shari’ah Bar exam, lowest in 37 years

OF the 654 examinees for the 2020 Shari’ah Bar exams, only 71 or 10.86% passed, the Supreme Court announced Tuesday. Court of Appeals Justice Japar B. Dimaampao, chair of last year’s Shari’ah Bar examination committee, said the result “will go down in history as the second lowest passing percentage” since 1983 when 14 out of 182 examinees, or 7.69%, passed. The topnotcher of the 2020 examination is Mohammad Hisham M. Mocsir with a score of 87.075%. Shari’ah Courts, which are under the supervision of the Supreme Court, handle cases involving Islamic beliefs. The establishment of these courts is in line with the Philippine Constitution, which provides that, “The State shall consider the customs, traditions, beliefs and interests of national cultural communities in the formulation and implementation of state policies.” — Bianca Angelica D. Añago

OWWA says additional funds needed to cover quarantine costs of OFWs

THE Department of Labor and Employment (DoLE) has asked the national government for additional funds to cover the quarantine costs of returning overseas Filipino workers (OFWs) following new protocols on the isolation period. Overseas Workers Welfare Administrator Hans Leo J. Cacdac said the P6.2-billion allocation for the hotel, COVID-19 swab test, transport, and food of returning OFWs might be depleted soon. “We project by April or May, maubos ang 2021 budget na (we might finish the 2021 budget),” he said in a virtual briefing on Wednesday. He explained that the new protocol issued as precautionary measure against the new coronavirus disease 2019 (COVID-19) variants requires OFWs to wait six days in quarantine hotels before they undergo a swab test. Under the previous protocol, testing is conducted immediately upon arrival and OFWs with a negative result are allowed to go home. Mr. Cacdac said Labor Secretary Silvestre H. Bello III has already written the Department of Budget and Management for a supplemental budget. — Gillian M. Cortez

Regional Updates (03/10/21)

March 10, 2021 | 7:34 pm

Megawide, SUEZ Asia to build Manila Water treatment plant

MEGAWIDE Construction Corp. and SUEZ Asia have been tapped to design and build Manila Water, Inc.’s 60,000-cubic meter sewage treatment plant in Mandaluyong, Megawide announced Wednesday. The Aglipay Sewage Treatment Plant will treat waste water from Mandaluyong City, and the southern parts of Quezon City and San Juan City, covering 650,000 residents. “This partnership between Manila Water, Megawide and SUEZ provides a strong foundation for this project and will significantly enhance the water quality, hygiene and sanitation for the population in Metro Manila by 2037,” Francois Fervier, SUEZ Asia chief executive officer of water, said in a statement. Megawide said it would be in charge of all civil works for the project, which broke ground on Feb. 24. The listed firm’s foreign partner would be using its innovative MeteorTM Moving Bed Biofilm Reactor and GreendafTM technologies in cutting operating costs and installation space. — Angelica Y. Yang

Pangasinan gov’t says LTFRB assures resumption of provincial buses before Holy Week

BUSES going to Pangasinan will be allowed to resume operations before the Catholic Holy Week, set this year on the last week of March, according to the provincial government. Land Transportation Franchising and Regulatory Board (LTFRB) Regional Director Nasrudin U. Talipasan told the provincial board on Mar. 8 that permits for inter-regional buses will be released soon by the agency’s central office. Pangasinan Governor Amado I. Espino III and mayors in the province sent a request letter to the LTFRB in end-December to push for the resumption of provincial bus services. In stating this, Mr. Talipasan appealed for patience and understanding on the long process. “Konting tiis at pasensya na lang (Just a bit more forebearance and patience). The process is ongoing and more than halfway,” Mr. Talipasan told the board members. Existing bus operators need to apply for special permits to resume operations, which is subject to another round of road worthiness inspection and compliance to health protocols. Inter-regional bus services have resumed in several other areas such as Baguio and other northern Luzon provinces, parts of the Visayas, and Mindanao.

TOURISM REVIVAL
The Thursday and Friday of Holy Week are declared national holidays in the country and people traditionally visit their hometowns or go on holiday during this long weekend. Pangasinan has reopened its tourism sector, and majority of local governments have adopted the national guidelines on less documentary requirements for travelers. As of Mar. 8, only the towns of Bani, Asingan, Balungao, and Sto. Tomas require a negative RT-PCR test result for visitors. The entire province including the independent city of Dagupan, with a population of about three million, has recorded 5,120 coronavirus cases as of Mar. 10. Of the total, 178 are active, 4,702 have recovered while 240 died. For more information on traveling to Pangasinan, visit the province’s official sites: pangasinan.gov.ph, seepangasinan.com or facebook.com/pangasinan.gov.ph, facebook.com/pangasinan.tourism.

Pharma industry pushes back on drug price control board

March 10, 2021 | 7:28 pm

DRUGMAKERS said further price controls on their products will hinder the industry in recovering from the economic downturn triggered by the pandemic.

Responding Wednesday to a legislative proposal to establish a price board for drugs, Pharmaceutical and Healthcare Association of the Philippines (PHAP) Trustee Jannette Alcantara Jakosalem said price controls will be an added burden to the industry on top of the difficult economic environment.

“Like many industries, the pharmaceutical industry has not recovered from the pandemic. The contraction of the market reached up to minus 18% in 2020. This is evidence of our struggles. On top of our struggles, the government imposed mandatory price reductions of up to 50% for 133 pharmaceutical products,” she said at a hearing of the House Committee on Trade and Industry.

“The imposition of price controls is retrogressive and may discourage highly needed pharmaceutical investments that are crucial to economic recovery… price regulation is a disincentive to innovation and is a barrier to the entry for new life-saving medicines,” she added.

The committee was deliberating House Bills 4306 and 2578, which call for the creation of the Drug Price Regulatory Board. They propose to amend Republic Act (RA) 9502 or the Universally Accessible Cheaper and Quality Medicines Act of 2008.

RA 9502 gives the President the power to impose maximum retail drug prices upon recommendation of the Secretary of Health. The proposed price board that features in both bills will be given sole authority to determine and recommend maximum retail prices.

Both bills’ explanatory notes cite the need to make innovative drugs available at affordable prices, which they claim RA 9502 did not achieve.

Ms. Jakosalem said that the government should focus on ensuring the availability of quality drugs, after past price caps discouraged the entry and restricted the supply of innovative medicines.

She said of the 166 innovative medicines registered in the US and European Union, only nine were available in the Philippines, while the price controls have also forced some products to be withdrawn from the market.

Philippine Alliance of Patient Organizations Board Member Karen Alparce-Villanueva said while the organization supports the amendments, an additional agency will add to the healthcare “bureaucracy,” and called for a system expanding access to more medicines.

Any such system “needs to balance regulation and innovation so medicines can get to the country,” she said.

Ms. Jakosalem said PHAP believes that the President needs to make the final call on drug price levels, as he has direct access to the best advice of various agencies. She added that a price board represents another bureaucratic layer that may delay decision-making.

Laban Konsyumer, Inc. President Vic Dimagiba said at the hearing that the proposed price board has been considered by past Congresses, adding that the pandemic should finally push the 18^th Congress to make it happen.

“We are making a plea na sana ’wag itong palampasin nitong 18^th Congress at isabatas ang drug price regulatory board (the 18^th Congress should not let this opportunity pass and approve the measure creating the drug price regulatory board),” he said.

He added that the proposed body could address any “gaps” in Executive Order No. 104 issued last year by President Rodrigo R. Duterte, which imposed price caps on the 133 medicines. — Gillian M. Cortez

Hog population expected to decline if pork imports expanded

March 10, 2021 | 7:28 pm

HOG NUMBERS, decimated by African Swine Fever (ASF), could decline further next year if the government expands the quota for pork imports, discouraging growers from rebuilding their herds, the pork industry said.

Nicanor M. Briones, vice-president for Luzon of the Pork Producers Federation of the Philippines, said in a radio interview Wednesday that many hog raisers will choose to cease operating if they are forced to compete with more pork imports, defeating the purpose of various ongoing efforts to rebuild hog numbers and risking another supply crisis.

“Hog supply for next year will be a problem since instead of increasing the number of hog raisers returning to the industry, more will be discouraged from continuing,” Mr. Briones said.

According to Mr. Briones, the Department of Agriculture’s (DA) proposal to lower tariffs for pork imports will not address demand for fresh, never-frozen meat.

Imports “cannot fill the supply gap because Filipino consumers want fresh meat. They will look for domestic supply since imported pork spends two months in a freezer,” Mr. Briones said.

He called imported frozen pork a health risk because “it can easily attract bacteria and be dangerous for consumers,” he added.

Asked to comment, DA Spokesperson Noel O. Reyes said in a mobile phone message that the DA has recommended imports to stabilize supply since the domestic hog production is not sufficient to meet demand.

Mr. Reyes added that the DA and the Land Bank of the Philippines will launch a P15-billion financing program to support the repopulation efforts of commercial hog raisers.

“Once successful, commercial hog raisers in Luzon, the Visayas and Mindanao that are bio-secured from ASF can continue and even expand their operations,” Mr. Reyes said.

“Hog raising will continue in ASF-free areas across the country,” he added.

The DA proposed to lower tariff rates charged on pork imports within the minimum access volume (MAV) allocation to 5% in the first six months and 10% in the succeeding six months.

It also recommended bringing down the tariffs for out-of-quota pork imports to 15% in the first six months, increasing to 20% in the following six months.

Currently, pork imports inside the MAV quota are charged a 30% tariff, while those beyond MAV pay 40%.

The other DA proposal awaiting approval is to raise the MAV to 404,210 metric tons (MT) from the current 54,000 MT. — Revin Mikhael D. Ochave