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Duterte places Luzon island under state of calamity after floods

PHILSTAR/MICHAEL VARCAS

PRESIDENT Rodrigo R. Duterte on Tuesday night placed Luzon island under a state of calamity after it was battered by typhoons in the past three weeks, the last one of which caused some serious flooding.

The President said at a televised briefing he had approved the recommendation of the local disaster agency to sign a proclamation for the purpose. This will give local governments easier access to calamity funds.

Typhoon Vamco, the 21st typhoon to hit the country this year, brought rainfall ranging from 271 millimeters to 356 millimeters, far below the 455 millimeters of rainfall brought by Tropical Storm Ketsana, locally named Ondoy, in 2009.

But it submerged some parts of Luzon, with some lawmakers blaming the release of water from major dams for the floods.

Vamco, locally named Ulysses, was the fifth typhoon to hit the country in less than three weeks, killing at least 73 people after submerging many parts of Luzon island and leaving half-a-million people without electricity.

The storm made landfall in Quezon province on Nov. 11 and crossed Central Luzon, according to the local weather bureau. It weakened into a severe tropical storm over the South China Sea, but strengthened into a typhoon just as it left the Philippine area of responsibility.

Mr. Duterte issued the proclamation days after he flew to the Cagayan Valley region, where many were forced to go to their rooftops to escape the floods.

Meanwhile, private think tank Stratbase ADRi urged the government to fast-track the expansion of free internet networks to help save more lives during disasters.

“The extensive connectivity that has been provided by mobile telecommunication services and social media has greatly prevented casualties in disasters such as the recent string of strong typhoons that have ravaged the country,” Victor Andres Manhit, president of the think tank, said in a statement.

He said free access to alert systems both through mobile networks and social media also allows agencies and groups to coordinate disaster relief, issue calls for assistance and monitor rescue operations.

“As almost every household has a mobile phone, it is crucial that there is both government and private sector investment in strengthening and expanding the country’s digital infrastructure,” Mr. Manhit said. “This would give a strategic advantage in addressing the risks brought by the frequent natural calamities the country faces.” — G.M. Cortez

Illegal wildlife trade blamed for diseases brought by animals

THE ENVIRONMENT department would continue efforts to stem the illegal wildlife trade to prevent the spread of microbial infections from animals to humans, an official said on Wednesday.

“To help prevent the infection of people by microbes from animals, we have been cracking down hard on illegal trafficking of wildlife,” Environment Undersecretary Jonas R. Leones told an online news briefing.

He also said the agency supports the World Health Organization (WHO) in trying to cut cases of antimicrobial resistance, which happens when bacteria, viruses, fungi and parasites resist drugs.

Man-made activities that destroy the environment increase contact between humans and animals and may result in more diseases caused by germs from animals, according to an Asia Pacific Economic Cooperation (APEC) Regional Trends report released this month.

“Environmental damage through deforestation, logging and mining increases our exposure to diseases by increasing human-to-animal contact,” it said. 

Citing an earlier study by Stanford University, APEC said increased interactions between animals and humans due to deforestation could cause the spread of new diseases such as the coronavirus.

“The study finds that about 60% of infectious diseases have zoonotic origins, that is, they are caused by the crossover of pathogens from animals to humans,” according to the report.

“The frequency of such occurrences is likely to continue increasing as people destroy more habitats through unsustainable practices,” it added.

In July, Environment Secretary Roy A. Cimatu cited the need for heavier penalties to curb the illegal wildlife trade. — Angelica Y. Yang

Nationwide round-up (11/18/20)

Senator pushes for creation of water management agency

A SENATOR on Wednesday pushed for the creation of an integrated water resource management agency that will oversee water-related operations to prevent a repeat of severe flooding such as those recently experienced in parts of Luzon. The agency will be tasked to create a long-term and coordinated plan on the use and control of water resources, Senator Francis N. Pangilinan said. “So it’s an integrated approach to managing our water to address the critical need for potable water, irrigation, to address power, and to address flooding,” he said over ABS-CBN News Channel. The proposed agency will consolidate the functions currently performed by the Department of Public Works and Highways, National Irrigation Administration, Local Water Utilities Administration, and Metropolitan Waterworks and Sewerage System. Also on Wednesday, a resolution seeking to conduct an inquiry on “man-made” disaster that may have worsened the impact of Typhoon Ulysses (international name: Vamco) was filed anew in the Senate. Senate Majority Leader Juan Miguel F. Zubiri said during Wednesday’s session that the Senate committee on environment and natural resources will conduct the hearing  “for sure next week.” The typhoon left at least 73 people dead, 24 injured and 19 missing, according to the National Disaster Risk Reduction and Management Council (NDRRMC). — Charmaine A. Tadalan

Robredo asks Supreme Court to probe possible SolGen-Marcos collusion

VICE President Maria Leonor G. Robredo’s lawyers on Wednesday asked the Supreme Court to probe a possible collusion between the Office of the Solicitor General (SolGen) and losing vice presidential candidate Ferdinand R. Marcos, Jr. relating to the latter’s electoral protest. The SolGen and Mr. Marcos filed on the same day separate motions for the inhibition of Associate Justice Mario Victor F. Leonen who is in charge of the case, citing bias. The high court, sitting as Presidential Electoral Tribunal, on Tuesday denied both pleadings for the inhibition of Mr. Leonen. It also asked Solicitor General Jose C. Calida and the reporter whose articles were cited by the two to explain why they should not be cited in contempt. Ms. Robredo, in the motion, said the state counsel or any of the agencies it represents are not a party to the case, noting that an election protest is a private suit. They also said that the motions filed by Mr. Marcos and the SolGen were “eerily similar.” Ms. Robredo also noted that Mr. Calida “openly, actively and rabidly” campaigned for Mr. Marcos’ bid in the 2016 elections. — Vann Marlo M. Villegas

Makabayan bloc files resolution for national academic break

THE SIX-MAN Makabayan bloc filed a resolution on Wednesday calling for a declaration of a “national academic break” following the series of typhoons that affected several parts of Luzon. “As the country reels from a global health crisis, its economic impacts, and now from natural calamities, Department of Education (DepEd) Secretary Leonor Briones, Commission on Higher Education (CHED) Commissioner Popoy De Vera, and President Rodrigo Duterte should immediately take action now more than ever to assist students and teachers,” the resolution read. The proposed break could also be used as an assessment of the current education set-up, the progressive lawmakers said. Bagong Henerasyon Party-list Bernadette Herrera-Dy, on the other hand, said the continuation of classes amid a state of calamity is “still healthy (for students) than not doing anything at all.” CHED earlier thumbed down calls to declare an academic break. — Kyle Aristophere T. Atienza

364,00 informal sector workers get emergency employment

A total of 364,00 informal sector workers have been processed for emergency employment assistance, a Department of Labor and Employment (DoLE) official said on Wednesday. DoLE-National Capital Region Director Sarah Buena S. Mirasol said over P100 million has been allocated for the beneficiaries. “More than P100 million are for implementation in different local government units,” she said in a mix of Filipino and English during a briefing. The beneficiaries will be paid the daily minimum wage rate of Metro Manila. — Gillian M. Cortez 

On Duterte’s rant: Robredo says public service not a ‘competition’

THE PRESIDENT should not treat public service as a “competition,” Vice President Maria Leonor G. Robredo said Wednesday after the country’s leader ranted on her typhoon relief and recovery efforts during a televised address Tuesday night. President Rodrigo R. Duterte lashed at Ms. Robredo, who heads the opposition party, for allegedly telling lies regarding his management of the emergency response and overstepping her authority. “The President was fed with wrong information. On my part, I never sought for his whereabouts during the crisis and even if (he) checks on my recent statements, posts, he would not see that I was asking for his whereabouts,” Ms. Robredo told reporters. “The President should go after the one who is feeding him wrong information. I was removed from the Cabinet also based on a false information… and it’s happening again now,” she added. — Kyle Aristophere T. Atienza

Regional Updates (11/18/20)

Occidental Mindoro’s first-aid bikes

Occidental Mindoro has acquired motorbikes customized with a first-aid kit that will be used by quick response teams of the provincial disaster management office. “These Rescue Motorcycles… are intended to deliver immediate emergency treatment, especially in areas inaccessible to four-wheel vehicles,” Governor Eduardo B. Gadiaono said in a statement in Filipino posted on the provincial government’s Facebook page. The motorbikes will also be used during disaster response operations. Occidental Mindoro, located off the southwestern side of Luzon, was among the provinces inundated by the recent typhoons Quinta (international name: Molave) and Ulysses (Vamco).

Australia commits another P28.5-M aid to typhoon-hit Bicol

THE Australian government has committed an additional P28.52 million for response measures on the devastation caused by Super Typhoon Rolly (international name: Goni) in the Bicol Region. “This commitment will contribute to the collective response from the humanitarian community in the Philippines and will directly assist 23,345 affected people including 2,990 women and girls including the pregnant and nursing mothers,” the Australian Embassy said in a statement on Wednesday. Australian Ambassador to the Philippines Steven J. Robinson said the support is “even more critical following Typhoon Ulysses (Vamco) that caused further hardship for the people in the Bicol Region.” In the immediate aftermath of Typhoon Rolly, which first made landfall on Nov. 1, Australia sent prepositioned humanitarian supplies through the Philippine Red Cross and the United National Population Fund worth about P6.48 million.

BTA passes resolution supporting extension of Bangsamoro transition to 2025

THE Bangsamoro Transition Authority (BTA) has formalized its support to the call for an extension of the regional government’s transition period by another three years to end in 2025. In a resolution adopted on Nov. 17, the BTA asked both chambers of Congress to pass a law extending the transition, which started in 2019 and is supposed to conclude by 2022, in time for the national and local elections. Member of Parliament (MP) Jose I. Lorena, one of the principal authors of the resolution, said the extension will give the BTA sufficient time to carry out its mandate and programs under the new Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Mr. Lorena, a former undersecretary at the Office of the Presidential Adviser on the Peace Process, noted in the resolution that the extension is not for the term of parliament members but the transition period. MP Mohagher Iqbal, also the region’s education minister, said the extension is crucial for ensuring the successful implementation of the normalization process under the peace agreement. “I beg to disagree, (with some) observation, that this is self-serving for our part… This is for our people,” Mr. Iqbal said. The resolution was passed during BTA’s regular session on Tuesday wherein Chief Minister Ahod Ebrahim also led the ceremonial signing of the Bangsamoro Administrative Code. “Just the other week we have inaugurated our blueprint for the future of the Bangsamoro, today, we are letting everyone know we have the very governance mechanism that will put into operation everything we have planned to undertake,” Bangsamoro Parliament Speaker  Pangalian M. Balindong said in his speech. — MSJ

31 areas still without power supply

ELECTRICITY has been restored in 300 cities and municipalities while 142 areas already have partial supply, and 31 are still awaiting the completion of repair works, according to the National Electrification Administration’s (NEA) report issued on Tuesday evening. Restoration works for the distribution lines of electric cooperatives have been ongoing in areas affected by Typhoon Ulysses (international name: Vamco). These include parts of the Cordillera Administrative Region, Ilocos, Cagayan Valley, Central Luzon, CALABARZON, and Bicol. NEA also said electric cooperatives in the flood-stricken province of Cagayan have so far fully restored distribution services to Tuguegarao City, the capital, and 21 of the 28 towns. — Angelica Y. Yang

‘Food Basket for Metro Manila’ project launched

THE DEPARTMENT of Agriculture (DA) launched a P2.5-million project in Rizal that aims to increase the supply of vegetables and other agricultural commodities to Metro Manila. Agriculture Secretary William D. Dar said the “Food Basket for Metro Manila” project that will be initially implemented in 110 hectares of rice and vegetables farm areas in the town of San Mateo. “This latest DA project will also cover other appropriate cities and municipalities in Rizal, including other nearby provinces in CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), surrounding Metro Manila,” Mr. Dar said. He added that San Mateo can later serve as a model production area for Metro Manila, where farm technologies can be introduced with focus on high-value products. DA-CALABARZON Regional Director Arnel V. de Mesa has been directed to immediately get the project rolling so that the first harvest will come in time for the December holidays. Meanwhile, Mr. Dar said that after the devastation brought by typhoons in major production areas across Luzon, farmers should focus on planting fast-harvesting crops on tillable lands. The DA also distributed P807,000 worth of agricultural interventions to typhoon affected farmers in San Mateo, including farm inputs and tools. — Revin Mikhael D. Ochave

TNT beats Phoenix in series-opener

By Michael Angelo S. Murillo, Senior Reporter

THE TNT Tropang Giga took an early lead in their best-of-five PBA Philippine Cup semifinal affair with the Phoenix Super LPG Fuel Masters after winning the series-opener, 95-92, on Wednesday at the Angeles University Foundation Arena in Pampanga.

TNT bucked a slow start before riding the late heroics of veteran Jayson Castro to get their semifinal push in the Philippine Basketball Association (PBA) All-Filipino on a winning note.

Jason Perkins got the attack of Phoenix going in the opening quarter, towing his team to an early 8-2 lead.

The Fuel Masters used it as a springboard to go on and secure a 24-16 advantage after the first 12 minutes.

In the second quarter, TNT began to claw its way back, levelling the count at 28-all by the 6:44 mark.

The teams jostled after with Phoenix eventually managing to squeeze in a one-point cushion, 37-36, at the break.

Roger Pogoy got it going at the start of the third canto, accounting for eight of the team’s 11 points in the first four minutes to push his team to a 47-39 lead.

The Tropang Giga extended their advantage further to 54-42 by the midway point of the frame.

Phoenix tried to regain some ground but still found itself down, 67-61, heading into the final quarter.

But the Fuel Masters were unrelenting in its charge back, outscoring the Tropang Giga, 9-3, on the lead of RJ Jazul, to tie the score at 70-all with 9:27 remaining.

The game stayed tight after with the teams still knotted at 81-all at the 4:29 mark.

TNT then strung four straight points in the next 30 seconds to go up, 85-81.

It would stay ahead, 85-83, entering the last two minutes before Ray Parks Jr. hit another basket to make it 87-83 with 1:45 to go.

Calvin Abueva, however, got an and-1 play to push Phoenix to within one point, 87-86, after 13 seconds.

But Mr. Castro got the three points back when he drained a three-pointer with 1:14 left to give TNT more breathing space, 90-86. 

Off a timeout, the Fuel Masters went once again to Mr. Abueva, who scored a deuce with 54 ticks left to make it a 90-88 affair.

Mr. Castro rose to the challenge anew, draining a basket in the paint to extend their lead back to four, 92-88, with 26 seconds remaining.

Phoenix sued for time after to set up a play.

Mr. Jazul pushed his team to within a point, 92-91, with a triple with 20 seconds left on the clock.

The Fuel Masters then fouled guard Simon Enciso off a TNT timeout.

Mr. Enciso split his charities to still open the door for Phoenix, 93-91, with 19 seconds to go.

Off the rebound, the Fuel Masters attacked the basket with Mr. Perkins getting fouled with seven seconds left.

Unfortunately, the Phoenix big man was not able to tie the count as he went 1-of-2 from the foul line, leaving his team still down by one, 93-92.

The Fuel Masters then fouled Mr. Castro, who coolly sank his free throws to make it a three-point lead for TNT, 95-91, with five ticks left.

Alex Mallari tried to tie the score for Phoenix but his desperation trey did not connect, preserving the win for TNT.

Mr. Castro top-scored for the Tropang Giga, finishing with 20 points, to go along with six rebounds and six assists.

Mr. Parks ended up with 17 points while Mr. Pogoy had 16.

For Phoenix, it was Mr. Jazul who showed the way with 21 markers.

The Fuel Masters played much of the contest without leading scorer Matthew Wright, who hurt his ankle in the first quarter.

Game Two of the semifinal series is on Friday at 6:30 p.m.

NEDA sees less severe drop in overseas worker remittances

THE National Economic and Development Authority (NEDA) said the contraction in overseas Filipino worker remittances this year could be “much lower” than previously forecast after strong inflows in September.

NEDA Undersecretary Rosemarie G. Edillon said the agency is taking the view that the drop in remittances could be less than the 2% assumption adopted by the Bangko Sentral ng Pilipinas (BSP).

Remittance inflows rose 9.3% year on year to $2.601 billion in September, reversing the 4.1% decline seen the month before. On a month-on-month basis, remittances grew 4.8%.

In the nine months to September, remittance inflows fell 1.4% to $21.886 billion.

The BSP’s projection of a 2% drop is itself an upgrade over an earlier forecast of a 5% contraction.

“We think it will be much lower than (the BSP’s forecast) because it has actually turned positive… So overall, we’re probably looking at less than 2% contraction (this year),” Ms. Edillon said at an online briefing Wednesday.

She said health workers overseas are expected to retain their jobs during the pandemic as they are deemed essential to their host countries’ economies.

Remittances are typically counted on to drive household spending in the Philippines but layoffs and business closures overseas at the height of the pandemic had raised the possibility that remittances could drop off severely.

The steepest declines were reported in April and May, when inflows declined 16% and 19% year on year, respectively.

“Right now, we are seeing a reversal in the trend in terms of our remittances,” Ms. Edillon said. — Beatrice M. Laforga

Exporters urged to take full advantage of US GSP perks

EXPORTERS need to maximize their trade privileges for goods shipped to the United States due to the prospect of making inroads into the market currently served by Thailand after the kingdom’s tariff perks were suspended, a trade official said.

“We export a lot of products similar to Thailand’s. So we should look into this,” Philippine Trade and Investment Commercial Counsellor Raymond Albert H. Batac said in an online conference organized by Philexport Tuesday.

Both the Philippines and Thailand can export to the US on a reduced-tariff basis under the Generalized System of Preferences (GSP) scheme. But around a sixth of Thailand’s GSP benefits were suspended by Washington last month over a dispute concerning access to the Thai market of US pork products. The revoked trade privileges represented $817 million worth of US imports under GSP last year, the office of the United States Trade Representative (USTR) said in a statement.

“The list of products to be excluded from GSP for Thailand is focused on products for which the United States is a relatively important market for Thailand but where Thailand accounts for a relatively small share of US imports,” the USTR said.

The list included agricultural products, iron or steel, and vehicle parts.

Philippine GSP exports to the US last year totaled $1.6 billion, Mr. Batac said. Top exports to the US under these trade privileges include coconut oil, pineapples, crab meat, coconuts, fruit juice, and frozen tuna fillets.

He estimated that $654 million worth of exports that could have been duty-free did not avail of the scheme.

“This is something that I would really encourage our exporters (to look into) — talk to your importers, tell them ‘hey are my products GSP?’ because if they are then your importers may be able to purchase more or you can export more of your products because they are duty-free,” he said.

The US decision on Thailand’s GSP access will be effective on Dec. 30.

The USTR last year announced the suspension of around a third of GSP trade preferences for Thailand over Bangkok’s failure to comply with internationally recognized worker rights. — Jenina P. Ibañez

MSME loan approvals only a fraction of funds allocated as Bayanihan II nears expiry

THE Department of Trade and Industry (DTI) has so far extended P1.2 billion worth of loans to micro, small and medium enterprises (MSMEs) affected by the coronavirus disease 2019 (COVID-19) pandemic, much less than the funds allocated, a senator said, citing data from the department.

The loans granted assisted a total of 1,660 MSMEs, while more than 26,000 loan applications are awaiting approval, subject to funding availability, Senator Juan Edgardo M. Angara said.

“Of the P10 billion (allocated), only P1 billion has been released as of today, Nov. 18 and the DTI has approved 1,660 loans equivalent to around P1.2 billion,” he said during plenary deliberations on the 2021 national budget Wednesday.

The Bayanihan to Recover as One Act, or Republic Act No. 11494, known informally as Bayanihan II, provided P10 billion for the COVID-19 Assistance to Restart Enterprises (CARES) program and other lending activities of the Small Business Corp.

“Yesterday, we were all concerned about P80.5 billion cash available for DSWD (the Department of Social Welfare and Development). Now we’re talking of P9 billion still to be turned over to the DTI for distressed companies, and we have 26,000 distressed companies crying for help,” Senator Francis N. Pangilinan said.

It was clarified during the session that the Department of Budget and Management (DBM) has released P8 billion to SB Corp., but SB Corp. was only able to approve the P1.2 billion worth of loans.

Mr. Angara noted the P10 billion Bayanihan II funding for loans will assist around 100,000 MSMEs and 200,000 workers.

In light of the delay in releasing the remaining funds, senators asked the government to speed up the process, as the Bayanihan II law will be expiring on Dec. 19.

The non-release of the funding has been cited in calls to either extend the validity of certain provisions under the Bayanihan II law or enact a new measure that will expedite the release of funds.

The 2021 national budget, as approved by the Committee on Finance, provided P22.012 billion to the DTI.

Of this total, P1.5 billion will be allocated as assistance to MSMEs and P2 billion for the CARES program, which had been expanded from P1.5 billion under the National Expenditure Program.

Mr. Angara said the P2 billion funding is estimated to provide an average of P20,000 worth of loans to 100,000 applicants. — Charmaine A. Tadalan

PHL pavilion at Dubai expo nearing completion

THE Philippine pavilion for the rescheduled Dubai World Expo is nearly complete, a trade official said.

Philippine Commercial Attaché to the Middle East and Africa Charmaine Mignon S. Yalong said that 70% of construction work has been finished.

“By December we expect that the pavilion shell and core will be completed,” she said at an online Philexport meeting on Tuesday.

The government is spending an estimated P800 million to build, maintain, and promote Philippine creative goods at the six-month event, the Department of Trade and Industry said at the media launch last year. The 192-nation expo is expected to attract 25 million visitors.

The Philippine pavilion plot spans more than 3,000 square meters with the structure containing almost 1,400 square meters.

The government is aiming to promote the Philippine brand, trade and investment through business-to-business contacts, and improve business-to-consumer engagement through commercial shops and fairs, Ms. Yalong said.

The Philippines will be highlighted at its expo “national day” on Feb. 11, 2022. The rescheduled 2020 Expo will itself open in October 2021.

The Dubai World Expo was rebranded to “The Safest and Most Connected Show on Earth” from “The World’s Greatest Show” due to the pandemic.

The United Arab Emirates has recorded more than 150,000 COVID-19 cases, with 534 deaths.

The Philippines previously participated in World Expos in Shanghai in 2010 and Yeosu, South Korea in 2012. — Jenina P. Ibañez

Rice researchers urged to focus on heat resistance

THE GOVERNMENT needs to focus rice research on rice varieties that can tolerate high temperatures in anticipation of the rise in global temperatures due to climate change, the Philippine Rice Research Institute (PhilRice) said.

In a webinar organized by the Department of Science and Technology-National Research Council of the Philippines, PhilRice Chief Science Research Specialist Norvie L. Manigbas said that high temperature stress is one of the key issues affecting rice production in the Philippines.

“If high temperature persists, which is predicted to increase by 1.1-2.4 degrees Celsius in the coming decades, future rice varieties should have the tolerance trait… heat stress can cause yield declines of up to 14% in susceptible varieties,” Mr. Manigbas said.

“I think the government should prioritize strengthening the research and development programs not only for high temperatures, but also for multi-trait abiotic stress rice improvement like drought, salinity, and submergence,” he added.

Mr. Manigbas said rice usually thrives at around 20 to 35 degrees Celsius, but becomes increasingly sensitive when temperatures rise above 35 degrees Celsius, especially during its reproductive stage.

According to PhilRice, temperature in fields across the country average 35 degrees Celsius or more, affecting production.

To counter rising global temperatures, Mr. Manigbas said the adoption of cultivars resistant to high temperatures is one of the most effective measures to maintain yields, adding that output will inevitably decline if there are no improvements made to old rice varieties.

Mr. Manigbas said high temperatures during the crop’s reproductive stage can also cause chalkiness in the grains.

The chalkiness results in more broken grains during milling, which affects milling yield, quality, and price.

Manigbas said new heat-tolerant rice varieties are still being evaluated by the Department of Agriculture.

Once approved, the new varieties will be deployed to fields in high temperature areas such as the Cagayan Valley and Camarines Sur in time for the 2021 dry season cropping.

There were 312 rice varieties released in the Philippines between 1990 and 2019, with 15 new varieties set to be released this year. — Revin Mikhael D. Ochave

Consolidated House bill to upgrade building code hurdles TWG

A TECHNICAL working group (TWG) organized by the House committee on public works and highways has cleared a consolidated bill proposing to repeal the 43-year-old building code and replace it with one that will ensure that structures are more resistant to calamities.

“As Chairman of the TWG tasked to deliberate on the various bills concerning the update on the National Building Code, which we now propose to be called the Philippine Building Act (PBA) of 2020, we have accomplished the task of coming up with a consolidated final draft bill which we will be submitting to the mother committee on Thursday, Nov. 19, 2020,” Construction Workers Solidarity Party-list Representative Romeo S. Momo, Sr., one of the bill’s principal authors, said in a statement Wednesday.

Mr. Momo said the still unnumbered bill repeals Presidential Decree No. 1096 or the National Building Code of the Philippines, which would give the country “a new building code that is responsive to the changing times.”

The bill’s purpose is “to ensure safe, liveable and environment-friendly structures, vis a vis the natural and man-made calamities the nation is facing every now and then,” he said.

Mr. Momo said the consolidated bill has a provision requiring an assessment of the design and integrity of buildings and structures completed on or before 2005.

“Under the proposed measure, public and private buildings and structures will be put under a classification system based on their type of construction, according to fire resistance rating; use or occupancy; and  required track of permitting process,” Mr. Momo said.

The measure creates a National Building Office to be headed by the Secretary of the Department of Public Works and Highways.

After the inspection has been performed, “building owners are to submit the certifications or findings of appropriate Building Professionals, serving as recognized certifiers, to the concerned Local Building Officials regarding the state of such buildings and structures and their safety and/or need for retrofit.” Mr. Momo said.

The bill also creates a Building Regulations and Standards Council, “which shall appoint Local building officials and members of the Regional Building Appeals Boards.” — Kyle Aristophere T. Atienza

Financial stability council on alert for ‘slow-burn’ contagion as liquidity pressures spread

THE PANDEMIC has stressed corporate finances, raising the possibility of a “slow burn” contagion that could spread across industries as individual firms falter, according to a report issued by the Financial Stability Coordination Council (FSCC).

The FSCC said in its Financial Stability Report that liquidity remains ample because the authorities responded quickly with policies boosting liquidity, but added that it remains wary of the spread of liquidity risk to less vulnerable sectors.

FSCC Chairman and Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the council will gauge exit strategies from the expansionary stance taken during the crisis, while assessing systemic risk factors, particularly small events with the potential to trigger severe instability within entire industries or even the economy.

“I will point out that local conditions matter most in deciding on the timing of the exit,” Mr. Diokno said at the launch of the report Wednesday.

The report also noted how pandemics have long-lasting effects based on historical data.

“At the level of pandemics, the longer-term effect attributed by studies on the Spanish Flu include lower incomes, lower educational attainment, greater physical disabilities, and a greater need for government funding support,” it said.

Looking through earnings of some 234 listed firms, the FSCC found that data on earnings before interest and taxes showed a rising number of firms have reported losses in consecutive periods since the end of 2019.

“Findings indicate that financial difficulties were already present but COVID-19 provided an additional strain on corporate finances,” the report said.

“With debt obligations even before the COVID-19 outbreak, this weaker business results have deeper implications over the near and medium-term,” it added.

While this trend does not necessarily imply company failures, the FSCC said liquidity concerns could escalate, and in certain conditions, become a solvency crisis.

“This converts a one-off operating anomaly into a viability concern, from  temporary to structural effects,” it said.

While the banking industry remains resilient despite the impact of COVID-19, there is still no place for complacency when liquidity risks have become a more urgent discussion, according to Philippine Deposit Insurance Corp. President Roberto B. Tan.

“The deposit insurance fund is adequate based on the model that we are adopting. But we are again updating this model so that we can come up with a more responsive one,” Mr. Tan said.

On the consumer side, the FSCC said that aside from lost income, the recovery of cash flow is also a looming concern. The impact will be uneven, with those “already economically vulnerable” facing greater challenges.

“The natural recourse when recurring income is curtailed is to fall back on household saving. Unfortunately, this is where demographic differences are quite stark, weighing heavier against households which are already vulnerable by their limited financial means,” the report said.

Insurance Commissioner Dennis B. Funa noted how the income squeeze affects savings, and in turn, funds available for investment.

“We need to address the unique requirements of our stakeholders who are naturally long-term investors. We must rely on this ability of markets, the availability of their underlying instruments and the reliability of risk valuations,” Mr. Funa said.

Given the decline in incomes for both corporations and households, the FSCC said there are clear indications of heightened risk aversion.

In the capital market, this risk aversion is apparent in corporate issuers leaning mostly to shorter-term tenors that will be ideal for operations and boosting liquidity rather than capital expenditure.

“Issuers are facing discerning investors who are searching for yield, the same investors who are deciding between mobilizing or retaining liquidity,” Securities and Exchange Commission Chairman Emilio B. Aquino said.

The FSCC is an inter-agency body composed of representatives of the BSP, the Department of Finance, the Insurance Commission, the Philippine Deposit Insurance Corp., and the Securities and Exchange Commission. — Luz Wendy T. Noble

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