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PSA expects to meet ID registration goal of 50-70 million this year

ROBINSONS/BW FILE PHOTO

THE PHILIPPINE Statistics Authority (PSA) said it is on track to meet its national ID registration target of 5070 million by years end. 

The PSA is on track to hit the 50-70 million registration for 2021. The PSA registration teams, all over the country, are registering about 250,000 registrants per day in 81 provinces and the five provincial offices of the NCR (National Capital Region), PSA Undersecretary Dennis Clare S. Mapa said in a text message Tuesday. 

He said the target is to complete both the demographic and biometric registration processes within the year for the program, which is known as the Philippine Identification System (PhilSys). 

As of July 16, the agency was able to complete 38.157 million step 1 registrations through house-to-house visits and visits online platform. 

The first step captures demographic data on registrants. They are then scheduled for the next step, which is biometrics collection at designated sites. 

The PSA has recorded the biometrics of 19.257 million registrants. 

A parallel effort to get more citizens to open bank accounts saw the opening of 4.87 million accounts with Land Bank of the Philippines, which maintains a presence at the registration centers. 

Mr. Mapa said the PSA and the central bank have completed printing 2.1 million national ID cards so far and released 1.82 million to the Philippine Postal Corp. for delivery. 

Republic Act 1105, signed in 2018, established PhilSys as the national ID, with the intent of serving as the single ID in lieu of the multiple other forms of ID deemed acceptable for transactions like opening bank accounts. 

The government also hopes to broaden financial inclusion by making opening bank accounts easier. 

The Bangko Sentral ng Pilipinas last month ordered banks to accept the national ID as a sole proof of identity for those wanting to open accounts. 

The national ID is also expected to help the government with its social programs. The lack of a centralized identification system was blamed for the slow distribution of cash aid to poor households last year. — Beatrice M. Laforga 

Foreign chambers back urgent certification for Open Access bill

FOREIGN BUSINESS groups are recommending that the Open Access bill be certified as urgent when Congress reconvenes for its third and final regular session next week. 

The seven members of the Joint Foreign Chambers (JFC) said the bill that would ease the entry of internet service providers into the market will “bridge critical gaps in broadband infrastructure by attracting more firms to invest in the data transmission and broadband sector.” 

The chambers expect the House to approve House Bill No. 8910 on third reading, while a counterpart bill is pending at the Senate Science and Technology Committee. 

“The JFC looks forward to any mention of the Open Access bill in the (State of the Nation Address) and recommends that the measure be certified as urgent by the President to emphasize its importance to economic recovery and more competition and investment in broadband, especially in underserved areas throughout the Philippines,” the groups said in a statement Tuesday. 

They said digital infrastructure in the Philippines lags the rest of Southeast Asia. 

“One major lesson of the ongoing pandemic is that developing competitive digital infrastructure is essential for better lives for everyone in the Philippines and certainly critical for investment, particularly foreign investment,” the chambers said. 

The Open Access bill is included in the list of 17 priority reform bills sent to Congress by 15 business groups. The foreign chambers said that the lower barriers to enter the data transmission market will significantly improve data transmission services.  

“Without substantial new investment and competition in each of the four ‘miles’ of the broadband sector, recovery from the pandemic will be slower and Filipinos will be less well served than their counterparts in ASEAN.”  

The statement was signed by the American, Australia-New Zealand, Canadian, European, Japanese, and Korean chambers, along with the Philippine Association of Multinational Companies Regional Headquarters, Inc. — Jenina P. Ibañez 

Private schools seeking priority legislation to clarify tax treatment

PRIVATE SCHOOLS are asking President Rodrigo R. Duterte to endorse as a priority bill the measure that will clarify the industry’s tax treatment following a dispute with the tax authorities over such schools’ eligibility for the reduced corporate tax rate. 

In a statement Tuesday, the Coordinating Council of Private Educational Associations (COCOPEA) said it hopes Mr. Duterte will ask legislators to prioritize House Bill (HB) No. 9596 and Senate Bill (SB) No. 2272 in his sixth and last State of the Nation Address on July 26. 

The bills aim to clarify the taxability of proprietary educational institutions, after a recent memorandum by the Bureau of Internal Revenue (BIR) excluded for-profit private schools from availing of the preferential corporate income tax rate, which had been lowered to 1% from 10% as a temporary relief measure authorized by the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE). 

Without official clarification through legislation, the BIR will continue to impose the regular 25% corporate income tax rate on for-profit private schools and only apply the 1% tax rate to non-profit institutions. 

“The evolution of the country’s education system has now reached a critical point. We are deeply concerned that the continued decline in the private sector’s share of enrollment and the persistent inability to optimize public-private complementarity would mean lost opportunities for faster achievement of an adaptive, innovative, and inclusive economy,” COCOPEA Managing Director Joseph Noel M. Estrada said. 

“The President’s influence over the lawmakers is therefore crucial in pushing for these measures in the remainder of the 18th Congress,” Mr. Estrada added. 

The association of over 2,500 private schools has been disputing the “erroneous interpretation” of the BIR on the applicable tax rate for proprietary educational institutions. 

CREATE lowered the preferential tax rate to 1% until June 30, 2023 to help the hard-hit sector recover from the impact of the coronavirus pandemic. 

However, the BIR in Revenue Regulations (RR) No. 5-2021 stated that only non-profit institutions can avail of the lower tax rate while the rest will be subject to the regular 25% tax. 

The bureau stood by its RR in its reply to COCOPEA. 

HB 9596 has yet to undergo first reading while its counterpart SB 2272 is awaiting committee approval. 

COCOPEA warned that if the bills are not passed, the high tax rate will harm the sector already weakened by the pandemic. 

Expansion plans as well as programmed salary increases for teachers will have to be delayed if institutions need to cut costs to deal with the taxes. 

Schools may also be forced to partially pass on the cost burden to parents through higher tuition, Mr. Estrada said. 

He said nearly 900 private elementary schools have shut down since the pandemic started last year, while a number of private higher education establishments suspended their operations. 

Enrollment in elementary schools dropped by 900,000 while half of colleges and universities reported a 10-50% decline in enrollment for the 2020-2021 school year, he said citing official data. 

“We note that the Department of Finance through Secretary Carlos G. Dominguez III has expressed several times that it fully supports the passage of the proposed bills in order to clarify this urgent matter once and for all,” Mr. Estrada said. 

“We therefore reiterate our call for expedient corrective action, through administrative or legislative enactment, as the private education sector is now,” he added. 

The Education department said classes for the upcoming school year will start on Sept. 13. — Beatrice M. Laforga 

Launch of energy labeling platform for appliances set for Aug. 12

THE DEPARTMENT of Energy (DoE) said it will be launching its energy labeling program registration platform covering energy-intensive appliances on Aug. 12. 

In a statement, the Energy department urged all importers, manufacturers and distributors of energy-consuming products (ECPs) covered by the Philippine Energy Labeling Program (PELP) to register through the portal. 

ECPs include air conditioning units, refrigerators, television sets and lighting products. 

The “PELP Online Company Registration Platform” is an “all-in-one” system for PELP applications, and a means to expedite the monitoring of compliance with the energy labeling program, according to the Energy Efficiency & Conservation Performance Regulation and Enforcement Division (EPRED) of the DoE’s Energy Utilization Management Bureau. 

“The platform is composed of the company registration, product registration and label issuance modules for PELP applications… The PELP system also features a dashboard for registered companies that will allow them to view the status of their ongoing applications and access their product’s registered data, as well, for ease in updating information,” the EPRED told BusinessWorld in an e-mail Monday. 

It said registration for companies will typically take three days. Meanwhile, product registration will have a wait time of a week, while the issuance of labels will take three days, depending on the accuracy and completeness of the information provided. 

EPRED said that the online portal aims to deter “fly-by-night” enterprises by only allowing approved companies to register their products and request for the official energy labels. 

Once the online portal is launched, all sellers of PELP-covered products are required to register through the platform. 

According to the EPRED, entities that do not register their products online cannot request the required energy labels. Only registered products sporting the DoE’s official energy label can be sold. 

“If during market monitoring activities a product is found to be sold without an energy label, then the DoE team will trace the product to its manufacturer, importer or distributor, who will be held liable and be penalized with the corresponding fines and penalties,” it added. 

Last month, the Energy department released the rules governing the labeling of ECPs. The guidelines require sellers to label their cooling products, refrigerators, TVs and lighting products with their respective energy efficiency ratings. — Angelica Y. Yang 

Employment turnover stabilizes in second half of 2020

EMPLOYMENT TURNOVER in large Metro Manila companies dipped in the fourth quarter of 2020 after a flat performance a quarter earlier, the Philippine Statistics Authority (PSA) said. 

The PSA said its Labor Turnover Survey returned a turnover rate of 0.1% in the third quarter and minus 0.3% in the fourth quarter of 2020. 

In the first half, the turnover rates were minus 1.4% in the first quarter and minus 7.6% in the second, just before the onset of, and at the height of the pandemic lockdowns, respectively. 

The turnover rate in the third quarter is equivalent to one hire for every 1,000 persons employed in large companies based in the National Capital Region (NCR). In the fourth quarter, the negative turnover rate translates to a reduction of three workers for every 1,000 employed individuals. 

The labor turnover rate is the difference between the rate of hiring (accession) and the rate of job termination or resignation (separation). 

Accession rates — which represent hiring by employers to either replace former employees or expand their workforce — stood at 8% and 4.8% in the third and fourth quarter, respectively, against 9.3% and 4.4% in the first and second quarters. 

Separation rates were lower in the second half compared with the double-digit levels posted in the first half. The PSA recorded a 7.9% separation rate in the third quarter and 5.2% in the fourth. 

Only services posted a net employment gain, of 1.9%, in the third quarter. The segment had a minus 0.2% turnover rate in the fourth quarter. 

Industry turnover rates were minus 6.1% and minus 0.7% in the third and fourth quarters, respectively.   

Agriculture, forestry, and fishing turnover rates were flat in the third quarter, surging however to minus 8.3% in the fourth. 

In the fourth quarter, the PSA survey tallied 94,498 job vacancies in NCR-based establishments, up from the 48,331 unfilled positions in the third quarter. 

These vacancies were highest in the services sector, which accounted for 95.2% of the total, or 89,990 openings. Vacancies in industry and agriculture accounted for 4.7% (4,462) and 0.05% (46) of vacancies respectively. 

Vacancies were 63,888 in the second quarter of 2020 and 85,426 in the first. 

Vacancies were highest in the services sector during the first half, which accounting for 91.3% of the total, or 58,307 openings. The share of the industry sector was 8.6% (5,522) while that of agriculture, forestry and fishing was 0.1% (58). 

Employers mostly looked to fill in slots for clerical support workers (51.6% of job vacancies); professionals (21.7%); technicians and associate professionals (8.8%); service and sales workers (4.8%); and elementary occupations (4.7%). 

“There is no other reason for the labor statistics fluctuations in that period aside from the pandemic, and as firms slowly adapted to alternative work arrangements amid looser restrictions, we saw the labor market improve,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail. 

However, he cautioned that these statistics may be “a bit deceptive.”  

Mr. Roces said the extent of the recovery in the labor market will vary, with some firms proving to be resilient and some lagging. 

“Significant downside risks remain with the presence of the Delta variant of COVID-19 and the threat of reimposed stricter lockdowns, thus there is still some degree of caution in terms of the stability of the employment and income capacity of people and firms,” he said. 

“Pre-pandemic labor market conditions could thus be possible only by the second half of 2022,” he added.   

The labor turnover survey’s sample was 16,793 establishments in NCR employing at least 20 workers, as registered in the 2019 List of Establishments. — Abigail Marie P. Yraola 

Farm ministers in Asian ‘monsoon belt’ commit to sustainable food systems

AGRICULTURE MINISTERS from the Philippines, Japan, Cambodia, Vietnam, Singapore, and Laos have committed to making their agricultural production and food systems more sustainable. 

Philippine Agriculture Secretary William D. Dar, Japan Agriculture Minister Kotaro Nogami, Cambodia Agriculture Minister Veng Sakhon, Laos Agriculture Minister Phet Phomphiphak, Vietnam Agriculture Vice-Minister Le Quoc Doanh, and Singapore Food Agency CEO Lim Kok Thai made the commitment at a virtual meeting on July 19, intended as a preliminary discussion ahead of the United Nations Food Systems Summit in September.  

The six ministers said in a joint statement that international collaboration is vital to introducing sustainable agricultural methods and technology such as machinery, digital tools, and pest control methods. 

They also said steps will be taken to promote and broaden collaboration through joint research projects and existing frameworks for cooperation to attain a balance between productivity and environmental protection. 

“As countries belonging to the Monsoon Asia region, we share several regional particularities with regards to agricultural production, including distinctive climate conditions such as high humidity and high temperature, abundance of paddy fields, and high percentage of small- and medium-sized farmers,” the ministers said.  

The six ministers said innovation in agriculture and other related industries is important in achieving sustainable production and food systems and can be enhanced by encouraging private sector investment. 

“Taking into account these regional particularities, we will make our maximum efforts to achieve the goals of sustainable agricultural production and food systems as well as the Sustainable Development Goals, while recognizing that there is no ‘one-size-fits-all’ solution leading to those goals, including an approach to the reduction of chemical pesticides and fertilizer usage,” the ministers said.   

Mr. Dar said the Department of Agriculture supports any international or regional collaboration that will result in improved farm productivity, competitiveness, and profitability, while also allowing for the resilience and sustainability of agriculture smallholders.  

“It is incumbent upon us to carefully scrutinize all commitments and solutions and draw deeply as we jointly work to build a better world — where agricultural production and food systems are sustainable and resilient, and our citizens enjoying affordable, safe and nutritious food,” he added. — Revin Mikhael D. Ochave   

ADB maintains Philippine growth forecast but Delta variant poses risk to recovery

THE ASIAN DEVELOPMENT Bank (ADB) on Tuesday warned that new coronavirus disease 2019 (COVID-19) variants, including the more infectious Delta, pose risks to the Philippine economy’s recovery, even as it maintained the growth forecast for this year.

In a supplement to the Asian Development Outlook (ADO), the multilateral lender said it kept the Philippines’ gross domestic product (GDP) growth projection at 4.5%, which was already downgraded in April. This is also below the gov-ernment’s 6-7% full-year target.

ADB also left the Philippines’ 5.5% GDP target for 2022 unchanged, still lower than the government’s projected 7-9% growth.

“Sustained government spending on infrastructure and social assistance programs is supporting recovery, as did a gradual pickup in household spending aided by strong remittances,” the ADB said.

ADB Philippines Country Director Kelly Bird told BusinessWorld the 2021 forecast was unchanged amid an improvement in the economic landscape, the relaxation of quarantine restrictions and the continued vaccine rollout.

“Reaching community protection in NCR (National Capital Region) by the end of the year is looking highly possible. With this, we expect further improvements in business and consumer confidence. ADB will review its forecasts after the second-quarter GDP data are released (in August),” he said in an e-mail on Tuesday.

The Health department said about 4% of the 110 million population have been fully immunized against COVID-19. The government is targeting to give the first dose of the COVID-19 vaccine to 70 million Filipinos by November.

Mr. Bird said the 4.5% GDP growth forecast is the ADB’s “floor” estimate and already took into account most downside risks such as renewed lockdowns and muted mobility.

However, he said the Delta variant is a major threat to the Philippine economy’s outlook, especially if this results in another surge in cases.

The Philippines last week reported the country’s first locally acquired cases of the fast-spreading Delta variant.

The ADB in its report said the recent surge in COVID-19, driven partly by the Delta variant, would weigh on growth in some economies in South and Southeast Asia.

While recovery is under way in developing Asia, the ADB trimmed the growth forecast for the region to 7.2% this year, from the 7.3% projection given in April.

“The biggest risks to the outlook (for developing Asia) would be continued COVID-19 outbreaks, driven by new variants and enabled by delayed vaccine rollout, which could once again disrupt mobility and economic activity, stalling recovery,” it said.

The Philippines’ projected growth for this year was the third slowest among seven Southeast Asian economies in the ADB report. The Philippines’ GDP growth is expected to be faster than Indonesia’s 4.1% and Thailand’s 2%, but likely to fall behind Malaysia (5.5%), Vietnam (5.8%), and Singapore (6.3%).

For next year, the Philippines’ economic performance is expected to remain in the middle of the pack, with Vietnam’s strong 7% growth forecast leading the region’s recovery.

The ADB said the Philippine economy continues to see lackluster private investments, although there are some signs of recovery as seen in improving data on imports, manufacturing and industrial production.

Manufacturing conditions in the country expanded in June according to IHS Markit’s Purchasing Managers’ Index. The country’s imports also jumped by 47.7% to $8.65 billion in May, the fourth straight month of growth.

The ADB maintained its inflation forecasts for the year at 4.1%, slightly above the central bank’s 2-4% annual target.

Headline inflation rose by 4.1% in June, slowing from 4.5% in May but still higher than 2.5% a year ago. For the first half, inflation averaged at 4.4%.

In keeping inflation at bay, ADB cited the government’s move to boost local food supply by cutting tariffs on imported rice and meat and allowing more pork imports to come in at lower costs.

The ADB expects inflation in the country to ease to 3.5% next year.

The multilateral lender increased its inflation forecast for developing Asia to 2.4% from 2.3% this year on higher prices of oil and other goods.

“With mobility restrictions still in place and labor markets still weak in most economies [in Southeast Asia], fragile conditions continue to curb consumer demand. On the supply side, however, higher international oil prices are applying pressure on prices for goods and services,” it said.

‘INEVITABLE’

Meanwhile, think tank Pantheon Macroeconomics said the Philippine economy would likely feel the impact of the Delta variant by the fourth quarter of 2021.

While the Philippines has yet to see a Delta variant-driven surge in infections, the think tank said it might be “inevitable that it will suffer the same fate as the likes of Indonesia and Thailand.”

“It probably will take longer for Delta truly to take hold in the Philippines, due to the still-subdued levels of mobility… In all, the Delta pinch on the Philippine economy is unlikely to be felt until Q4,” Pantheon Macroeconomics said, adding that another last-minute tightening of curbs should be expected.

It noted Google’s data on mobility showed Filipinos continued to spend more time at home since trips to transit stations and recreational areas remain low.

With or without the Delta variant, the think tank said the outlook for domestic demand for the rest of 2021 remains “extremely challenging.”

Hangover from liquor boom to stay long after pandemic ends

ANDREN JOHN BERNARDO, a 32-year-old stand-up comedian from Manila, has found himself drinking more amid a coronavirus pandemic.

“I drink every other day,” he said by telephone, adding that he consumes as much as a bottle of local gin.

Before the pandemic, Mr. Bernardo, like many other drinkers, got his fix by visiting bars. He had to improvise after many local governments banned liquor in the first few months of a coronavirus lockdown.

“I didn’t handle it well at the start,” he said of his inability to drink. “I got more irritable. I ordered booze online during the liquor ban, thinking they wouldn’t check.”

“My Grab driver was apprehended. It was my fault,” he added.

The coronavirus pandemic has forced people all over the world to change drinking habits, shifting places of consumption from bars and restaurants to home.

“For many people, alcohol is part of their social life, a life that has been significantly disrupted by COVID‑19,” the Organization for Economic Cooperation and Development (OECD) said in a report published in May.

The crisis intensified some of the harms and problems arising from harmful alcohol use, it said.

Alcohol sales increased by as much as 5% in Germany, the United Kingdom and United States in 2020 from a year earlier, the OECD said. Sales of alcohol in bars and restaurants plummeted, severely affecting the sector, while sales through e‑commerce and retail stores grew significantly.

In the US, online sales increased by more than threefold.

In the Philippines, household spending on alcoholic beverages and tobacco rose by fourfold to P226.5 billion last year, according to Statista.

Brick-and-mortar global alcohol dollar sales rose by 21% during the seven-week COVID-19 period ended April 18, 2020, while online alcohol sales skyrocketed by more than threefold from a year earlier, according to a Nielsen report last year.

“In fact, alcohol is the fastest-growing e-commerce department among consumer-packaged goods, and weekly growth has continued,” it added.

LIKE THE APOCALYPSE

Liquor.ph, an online liquor store, was supposed to put on several raucous events for their 2020 launch.

“Last year was supposed to be our coming out to the Philippines as the next big player in the alcohol distribution industry,” Liquor.ph Chief Executive Officer Frank Kona Shrope said in an e-mail.

But the pandemic put a damper on their plans, such as in-person tastings and other events. Liquor.ph sales, however, were “significantly higher” last year than in 2019 and “2021 is looking better,” he said.

“People were ordering more like it was the apocalypse in 2020, but things have normalized a bit. People are looking at online sellers more than ever though.”

Mr. Shrope cited changing patterns in alcohol consumption, with more consumers buying better brands.

People having to go out less frequently during the pandemic means they have more money to spend on liquor bottles, which means they can spend more on better-quality types of liquor, he said.

“The same thing has been said in other locations such as the UK, from talking to my friends in the industry around the world,” he added.

Mr. Bernardo, who had made references to his alcohol use in his comedy bits in a podcast, didn’t move up to other brands.

“Since money was an issue, especially during the height of the pandemic, I started drinking just gin bilog (a colloquial name for Ginebra San Miguel gin). It was the cheapest,” he said.

He did save a lot from drinking at home because he never had to get a Grab car, not to mention a bar drink costs a lot more.

The company behind Mr. Bernardo’s favorite booze, Ginebra San Miguel, Inc. started 2020 strong, with sales volumes growing by a record 29% in the first quarter from a year earlier, according to its financial report.

“This was driven by sustained brand equity of core brands Ginebra San Miguel and Vino Kulafu, and improved awareness of GSM Blue,” it said. High volumes brought net sales to P11.3 billion, 52% higher than year earlier.

While the alcohol boom has been an economic lifeline for many businesses, there could be serious consequences that linger long after the pandemic ends, according to health experts.

Mr. Bernardo said he started drinking as a “social thing.” “I wasn’t very good at talking to people. I felt uncomfortable in large crowds; this was from before I did stand-up. I drank. It made me feel a bit easier, a bit more relaxed, more social.”

Ernest Francis Nora, an addiction specialist and a psychiatrist, said people drink to socialize, escape problems or stress or just to enjoy the high from alcohol.

The extraordinary circumstances of a global pandemic might contribute to increased substance abuse, he said in an e-mailed reply to questions.

“Increased alcohol intake could be attributed to the anxiety brought about by the pandemic and the uncertainty and economic difficulties brought by the lockdown,” Mr. Nora said.

People may also start drinking because they’re bored.

“Some people cling to alcohol during crisis periods due to its amnesiac effect — it makes us forget,” he said. “Psychologically, it takes us back to the oral stage in terms of psychological development where some find it gratify-ing.”

Mr. Bernardo credits his increased alcohol use to social isolation.

“I lived alone in an apartment for most of 2020. I was going crazy,” he said. “I just felt really lonely. There was Zoom. There was Facebook. There were all of these social media sites that could help me, but I would go through days without talking to anyone, without opening my mouth.”

“I know it’s not healthy — dear God, I know it’s not. It just makes my loneliness feel like it doesn’t matter if I’m alone when I drink. Then I take another sip.”

Mr. Nora said too much alcohol leads to the early death of brain cells. “Addiction brings unhealthy habits such as poor diet, lack of sleep, no exercise and a devil-may-care attitude, further compromising our health.”

There should be alternatives to curb stress, anxiety and depression that don’t involve pouring and sipping, the doctor said.

“Socialize — but in healthier ways like Bible classes, exercise, bike or car groups,” he said. “If you feel stress from the pandemic, don’t be afraid to consult a mental health professional, or call the government hotlines. It’s free.”

Thinking about the reasons that made him drink more during the pandemic, Mr. Bernardo said: “I’m going to hug each and every one of the people I know. I’m never going to take for granted social interaction ever again. Everyone in this pandemic noticed that they’re not as introverted as they seem.”

He has a piece of advice for people who drink. “Everything should be in moderation. Too much of anything is bad for you. Like water. Ask people who drown.”

Report shows mixed results for dev’t goals

A GOVERNMENT SCORECARD that tracks the Philippines’ progress in meeting economic development targets showed the government making strides in improving environmental quality and strengthening competitiveness but per-forming poorly in science and technology, housing, and agriculture.

Based on the Statistical Indicators on Philippine Development (StatDev) 2020, 126 out of 300 indicators showed “high likelihood” of hitting targets by 2022, when President Rodrigo R. Duterte ends his six-year term.

The StatDev report, released on Tuesday by the Philippine Statistics Authority (PSA), also showed 33 indicators had “medium likelihood” while 141 showed “low likelihood” of meeting their respective targets.

“Majority (53%) of the 300 indicators covered in the StatDev 2020 posted either high or medium likelihood of achieving the target in the fourth year of the medium-term development plan,” the report read, referring to 2020 targets.

StatDev monitors the progress of meeting economic and social development goals set under the Philippine Development Plan (PDP) 2017-2022.

Among the 14 sectors, 10 “had at least half of their respective indicators exhibiting high or medium likelihood of achieving the target in 2022,” the PSA said.

Having a “high likelihood” means a target is likely to be achieved by 2022 while “medium likelihood” means a target may or not be achieved. “Low likelihood” means a target is unlikely to be met.

The StatDev report noted the progress made in the competitiveness and environment sectors.

Under competitiveness, the report noted the proportion of studies on competition law and economics of major academic and research institutions completed at 11.01% in 2020, which was “almost thrice” the 4% target in 2022. It also noted the annual number of competition policy-related training programs for executive agencies conducted in 2020 surpassed their end-of-plan target.

In the environment sector, the PSA noted the coverage of protected areas in relation to marine areas had exceeded the target of 0.76% in 2022 with 1.42% in 2020. Likewise, the 4,130 hectares of newly planted man-groves in 2020 already reached 4,130 hectares, exceeding the end-of-plan target of 1,974 hectares.

Passing marks were also given for industry and services, citing surpassed targets in the number of consumer awareness and advocacy initiatives, as well as the number of consumer education, information and communication materials, and the resolution rate in consumer complaints.

On the other hand, the report cited low likelihood of meeting targets in science and technology; social protection; agriculture, forestry, and fisheries; and shelter and housing.

“Both of the indicators — number of Filipino industrial designs registered, and number of Science, Technology, Engineering, and Mathematics graduates in Higher Education Institutes — already passed the 50% mark of their end-of-plan target. However, the number of Technology Business Incubators graduates from 2017 to 2020 was only 18.8% (188) of the 1,000-target,” the PSA noted of science and technology. — BTMG

For social safety nets in 2020, the government agency cited the 257 deaths and 56 missing persons due to natural and human-induced disasters, which were “way far” from the end-of-plan target of zero. The same was said for membership among overseas Filipino workers in the labor agency Overseas Workers Welfare Administration, which fell to 710,837 in 2020 from 1.38 million the previous year “rendering a shortfall of 1.20 million from the target value.”

“Likewise, the percentage of population covered by social health insurance posted at 87% is still short of the full 100% target coverage,” the PSA said.

Majority of the indicators in the agriculture showed low likelihoods of achieving the end-of-plan target, the PSA said.

“For instance, out of 12 major commodities, only sugarcane and abaca posted medium likelihoods, while the rest had low likelihoods of achieving their target yield,” the PSA noted.

The report stated that despite the low likelihood of reaching the 2022 target in shelter and housing, the indicator “proportion of low-cost housing targets met to housing needs” of 5.27% almost hit the 5.50% target.

On the other hand, the “proportion of socialized housing met to housing needs” was way off the market with 8.38% versus the 16.53% target.

The PSA noted having a poor sectoral progress does not necessarily imply poor performance from concerned agencies as it depends on the number of indicators considered and the latest available data for the indicators.

“A poor sectoral progress may still improve in subsequent years during the plan period with the changes/updates in the sector,” the PSA said. — BTMG

LGUs still rely heavily on share from national taxes

LOCAL GOVERNMENT UNITS (LGUs) remained heavily reliant on their share in national taxes in 2020 even as their own tax collections rose, the Department of Finance (DoF) said.

Citing data from the Bureau of Local Government Finance (BLGF), the DoF said the operating income of provinces, cities and municipalities increased by 12% year on year to P825.2 billion.

Revenues from external sources, which include the internal revenue allotment (IRA) of LGUs, grew by 11% to P509.65 billion last year. This accounted for 70% of their total income for the period, up from 66% in 2019.

Local tax collections rose by 3.5% to P189.86 billion last year, but their share in the total income of LGUs slipped to 23% from 25% a year ago.

BLGF Executive Director Niño Raymond B. Alvina said provinces were the most dependent on IRA, which accounted for 78% of their total income, followed by municipalities (74%) and cities (42%).

Local governments last year received P63.9 billion in other transfers from the National Government, a 132% increase from a year ago. This accounted for 8% of LGUs’ total income, up from the 4% share the year before.

Existing laws mandate the National Government to allocate a portion of its tax collections to LGUs in the form of IRA.

When the Supreme Court ruling on the Mandanas case takes effect next year, the local units will start receiving a bigger share from national taxes.

However, the DoF said LGUs should also boost their capacity to generate locally sourced revenues to raise more funds for their programs and projects.

Provinces, cities and municipalities collected P244.2 billion in taxes and other fees last year, surpassing its P192-billion goal by 27.2%.

Local treasurers source their own revenues from real property tax, local business tax, fees and charges, and receipts from economic enterprise.

Broken down, LGUs collected P119.3 billion in business taxes and P70.55 billion in real property taxes.

Cities have the highest capacity to generate their own revenues after collecting a combined P172 billion last year, followed by municipalities (P44.7 billion) while provinces, who are heavily reliant on IRAs, came in last (P27.57 billion).

“For 2021, the BLGF is actively monitoring the LGUs’ quarterly fiscal performance as it expects lower revenues this year, since the local taxes will be based on the gross receipts of business establishments in 2020 when the pan-demic started,” the DoF said.

The bureau is working to update the property tax valuation and digitize collection processes of LGUs to help them generate more revenues.

A proposed measure to upgrade the property valuation systems of LGUs, which is part of the Duterte’s comprehensive tax reform program, is pending in Congress. — Beatrice M. Laforga

Filinvest REIT sets IPO price at P7 per share

FILINVEST REIT Corp. (FILREIT) set the final offer price for its initial public offering (IPO) at P7 per share, or 15.7% lower than the P8.30 threshold it set. 

Formerly Cyberzone Properties, Inc., FILREIT is the real estate investment trust (REIT) unit sponsored by Filinvest Land, Inc. (FLI). 

“Please be advised that the final offer price for the REIT initial public offering of Filinvest REIT Corp.’s common shares is P7.00 per common share,” the company said in a notice on Monday evening, which was signed by FILREIT President and Chief Executive Officer Maricel Brion-Lirio. 

The offer is comprised of 1.63 billion common shares owned by FLI, with an overallotment option of 163.42 million common shares. FLI will receive all proceeds from the IPO. 

“Its parent will still be getting more than P11 billion from the listing. I think this is fair considering the dividend yield,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a text message on Tuesday. 

FLI and FILREIT officials told BusinessWorld in an interview in June that proceeds from the offer will be used according to its reinvestment plan. This includes funding for its capital expenditures (capex) for office buildings, industrial warehouses, and raw land acquisition. 

Proceeds may also be used for FLI’s capex for retail malls and the expansion of its district cooling system. 

“FILREIT’s office buildings have unique eco-friendly features that compliment it which [makes] it attractive to investors,” Mr. Mangun said. 

Its initial REIT portfolio covers 17 buildings, which includes one in Filinvest Cebu Cyberzone in Cebu IT Park. 

Meanwhile, 16 are located within Northgate Cyberzone’s Filinvest City in Alabang, which features an electric-powered public transport system called the “eco-loop” and has a district cooling system. 

Filinvest City has received the LEED (Leadership in Energy and Environmental Design) v4 Gold for Neighborhood Development certification. It is said to be the first central business district to receive the said recognition. 

The majority of tenants in the properties included in its portfolio are said to be multinational business process outsourcing (BPO) firms. 

“This may encourage more investors to subscribe to the IPO given that the dividend yield may now be more attractive, given the FILRT properties’ strategic location as well as the positive market outlook for the BPO industry,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Tuesday. 

According to a July 7 statement, FILREIT said it expects its offer period to run from July 26 to Aug. 3. It also set its tentative listing date at the local bourse on Aug. 12. Shares will be listed under the ticker symbol FILRT. 

Meanwhile, FLI shares at the local bourse declined by 0.88% or one centavo on Monday, closing at P1.12 each. 

Fast vaccine rollout sought to fight Delta

To contain the variant, doctors urge people to get COVID-19 jabs

TO PREVENT further spread of the Delta coronavirus variant which, as of this writing, has already infected 35 Filipinos, the Philippines must retain limited mobility by following restrictions and practicing safety protocols while vaccination has not yet reached its targets, according to experts at a July 16 online forum held by the University of the Philippines (UP).   

“The faster the vaccination rollout, the better the chances of stopping the highly transmissible Delta variant, but [with] the problem of vaccine inequity in the world, in the meantime, we’re waiting for the vaccination level to go up and we can’t really decrease restrictions,” said Dr. Franco A. Felizarta, a California-based infectious disease and internal medicine specialist who is also a member of the UP Medical Alumni Society in America.  

Of the 35 Delta cases, 11 were local transmissions. On the evening of July 19, the Health department reported 32 recoveries and three deaths 

During the online forum, Dr. Felizarta stressed that the Philippines can’t afford to let people move around while the rate of vaccination remains low. “I know there’s a high economic cost with that, but that’s the only way to stop the variant because it’s already in the Philippines, and based on the data, it probably will become dominant in two to three months,” he said.  

WHY DELTA IS HIGHLY TRANSMISSIBLE  

Delta, the name given to the B.1.617.2 variant first found in India, has already been reported in 104 countries. It is fast catching up to the Alpha variant, which is present in 173 countries; and the Beta variant, found in 122 countries.  

One of the important parameters that makes Delta highly transmissible is its basic reproduction number (R0), which ranges from 5 to 8, said Dr. Felizarta. “The more contagious the variant, the higher the basic reproduction number,” he explained, citing a Lancet study that shows the original coronavirus from Wuhan only had an R0 of 2 to 3 compared to the Alpha variant at 4 to 5, and Delta at 5 to 8.  

This makes the Delta variant at least 50% more transmissible than Alpha, putting it at number one in terms of transmissibility, based on the World Health Organization’s weekly epidemiological updates on coronavirus disease 2019 (COVID-19). However, despite being able to spread faster, its disease severity, risk of reinfection, and impact on diagnostics have not really increased.  

“The symptoms are still the same. The only difference is, if you have a country with a high vaccination rollout, especially for the elderly, then most of the patients infected [by Delta] are younger and they have milder symptoms,” said Dr. Felizarta, referring to the cases in the United States, which has vaccinated almost 90% of its elderly.  

MORE JABS, MORE MOBILITY 

When it comes to fighting fast-spreading coronavirus variants like Delta, Dr. Felizarta emphasized that controlling mobility has to be accompanied by more jabs administered. 

“It really depends on the vaccine rollout. It’s really about the variant versus the speed of vaccine rollout,” he said.  

Based on data from the US Centers for Disease Control, the US has fully vaccinated 48.6% of its population, a majority with either Pfizer or Moderna. This has mobility to go back to baseline with almost no restrictions. Despite cases doubling due to Delta, deaths have decreased.   

Meanwhile, in the Philippines, Dr. Felizarta pointed out that the overall cases and deaths are decreasing — not because of vaccine rollout — but because of decreased mobility, which is still at about 50% of pre-pandemic mobility. “If vaccine rollout goes up to 50%, then you can increase mobility by easing the restrictions,” he said.  

Citing a Nature Medicine study published in June, he also maintained that the more people are vaccinated, the harder it will be for the virus to spread even among the unvaccinated. 

STRATEGIES MOVING FORWARD  

It’s important to strengthen prevention, detection, isolation, treatment, and reintegration (PDITR) strategies in addition to ramping up vaccination in the Philippines, according to Dr. Eva Cutiongco-de la Paz, director of the health program of the UP’s Philippine Genome Center.  

The government is already at door three of its four-door strategy in fighting the disease, she said. Door 1 involves preventing foreign entry into the Philippines; Door 2 involves screening, quarantine, and testing; Door 3 is PDITR plus vaccination; and Door 4 is strengthening health and critical capacity systems versus a surge. 

“Now that local cases of Delta variant have been detected in the country, we all need to do our part in preventing the local spread of the variant. Encourage those who have not been vaccinated to have their vaccination,” said Dr. Cutiongco-de la Paz.