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Gov’t transactions via PayMaya platform soar

THE value of government transactions processed by digital payment company PayMaya Philippines, Inc. has increased by around 1,200% in December compared with the level in the same month of the previous year.

The company said in a statement on Monday that more than 60 national and local government agencies are using its payment platform for taxes and fees transactions.

“With the COVID-19 pandemic affecting everyday life, the government has turned to digital payments to process revenue collections and distribute much-needed assistance safely and conveniently,” PayMaya said.

PayMaya said that it had also distributed P4.5 billion in government assistance from agencies such as the Department of Social Welfare and Development (DSWD).

The company recently said that it had reached 28 million users through its mobile app and digital wallet platforms, as more Filipinos use e-wallets for contactless transactions during the pandemic.

Transactions on the PayMaya app registered triple-digit growth rates throughout last year, peaking in May with a 1,000% year-on-year growth.

Businesses joining PayMaya for digital payments increased by at least 1,500% year on year in November. Megaworld Corp., McDonald’s Philippines, and Jollibee Foods Corp. are among those using the platform.

Hongkong and Shanghai Banking Corp. said in October that there was room for growth in digital payments in the Association of Southeast Asian Nations as businesses reach out to underbanked consumers in markets with a high use of smartphones and internet connection.

PayMaya is a subsidiary of Voyager Innovations, Inc., the digital arm of PLDT Inc. PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan last year said that he expects PayMaya to be profitable by 2024.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Jenina P. Ibañez

LANDBANK’s agricultural loans hit P232 billion

LAND BANK of the Philippines (LANDBANK) lent P231.47 billion to nearly 2.6 million farmers, fisherfolk and agribusiness owners in the first 11 months of 2020, the Department of Finance (DoF) said.

Citing a report from the bank, the DoF said in statement on Monday that the total was equivalent to 94.5% of LANDBANK’s full-year agriculture lending target of P245 billion.

Around 2.588 million farmers and fisherfolk were able to obtain loans during the period, higher than the state-run bank’s goal to cover two million borrowers in 2020.

Broken down, two-thirds or P144.13 billion of the loans went to small, medium and large agribusinesses; 21.7% or P50.16 billion were obtained by local government units and state-owned companies for their agri-aqua related projects; and 16% or P37.38 billion went to small scale farmers and fisherfolk. 

Farmers and fisherfolk mostly used conduits such as cooperatives and associations, rural lenders and other lending schemes to borrow, LANDBANK said, as loans coursed through these channels totalled P36.04 billion, while direct lending only amounted to P1.34 billion.

As one the government’s main partners in implementing social programs, the bank processed P8.31 billion worth of loans for the programs of the Agriculture department such as the Agricultural Competitiveness Enhancement Fund, the Socialized Credit Program under the Sugarcane Industry Development Act, the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund, and the Survival and Recovery Assistance for rice farmers.

Programs by the Department of Agrarian Reform administered by LANDBANK translated to P65 million in loans.

In terms of economic activity, 45% of the total loans granted in those 11 months went to building irrigation systems and post-harvest facilities with a combined value of P104.19 billion.

Meanwhile, around 30% or P71.5 billion funded agri-processing and trading activities, 16% or P36.69 billion for livestock, eight percent or P17.59 billion for crops, and less than one percent or P1.67 billion for the fisheries sub-sector. — BML

How PSEi member stocks performed — January 4, 2021

Here’s a quick glance at how PSEi stocks fared on Monday, January 4, 2021.

Peso inches up vs dollar

THE PESO strengthened slightly against the greenback on Monday following the release of data showing a decline in local manufacturing activity. 

The local unit closed at P48.02 per dollar on Monday, inching up from its P48.023 finish on Tuesday, data from the Bankers Association of the Philippines showed. 

The market was closed for holidays from Dec. 30 to Jan. 1.

The peso opened Monday’s session at P49.02 against the dollar. Its weakest showing was at P48.035 while its intraday best was at P48.015 versus the greenback.

Dollars traded increased to $873.75 million on Monday from the $731.25 million seen on the last trading day of 2020.

The peso inched up versus the dollar after the release of data showing a contraction in the country’s manufacturing activity, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said via text.

“This would lead to softness in imports data that would reduce demand for dollar,” Mr. Ricafort said.

The IHS Markit Philippine Purchasing Managers’ Index stood at 49.2 in December, contracting further from the 49.9 logged in November. A reading below 50 indicates contraction.

For today, Mr. Ricafort said the peso could move within the P47.99 to P48.05 band versus the dollar. — LWTN

PHL stocks post gains on global vaccine rollout

LOCAL STOCKS ended the first trading day of 2021 on a high note as investor sentiment got a lift from the ongoing rollout of coronavirus disease 2019 (COVID-19) vaccines around the world.

The 30-member Philippine Stock Exchange index (PSEi) improved 57.79 points or 0.8% to close at 7,197.50 on Monday, while the broader all shares index rose 44.55 points or 1.04% to 4,317.16.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the bourse improved as investors were optimistic on the distribution of several COVID-19 vaccines.

Britain begins vaccinating its population on Monday with the COVID-19 shot developed by Oxford University and AstraZeneca, touting its position as the first Western country to roll out an inoculation program against the novel coronavirus, Reuters reported.

Britain, which is rushing to vaccinate its population faster than the United States and the rest of Europe in a bid to put the pandemic behind it, is the first country to roll out the Oxford/AstraZeneca shot.

It last year rolled out the Pfizer and Germany’s BioNTech vaccine. The first people are expected to be vaccinated with the Oxford/AstraZeneca shot before 0800 GMT.

Other Western countries have taken a longer and more cautious approach to rolling out vaccines, though Russia and China have been inoculating their citizens for months with several different vaccines still undergoing late-stage trials.

Back home, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the market ended higher on the first trading day of the year as investors remained “cautiously optimistic” on local quarantine measures.

“Selling pressure subsided compared to what we saw in the previous weeks after current lockdown restrictions were extended instead of tightened, which some were expecting,” Mr. Mangun said in an e-mail.

Most sectoral indices at the PSE ended in the green on Monday, with financials being the sole decliner as it went down 7.65 points or 0.52% to 1,439.99.

Mining and oil increased 366.51 points or 3.84% to 9,894.66; property climbed 73.9 points or 2.01% to 3,738.37; services went up 20.2 points or 1.33% to 1,534.29; industrials gained 72.82 points or 0.77% to 9,466.24; and holding firms went up 45.75 points or 0.62% to 7,400.40.

Advancers edged out decliners, 124 against 121, while 36 names ended unchanged.

Value turnover on Monday amounted to P10.03 billion with 21.55 billion issues switching hands, lower than the P11.11 billon with 95.98 billion issues during the previous trading session.

Net foreign selling reached P214.08 million, reversing net inflows worth P87.48 million on Dec. 29, the last trading day of 2021.

“7,000 remains the psychological level of support, while 7,300 may be considered the nearest resistance area,” Mr. Pangan said. — Revin Mikhael D. Ochave with Reuters

Coronavirus tally may spike as more laboratories reopen

By Vann Marlo M. Villegas, Reporter

THE DEPARTMENT of Health (DoH) expects more coronavirus infections by mid-January as testing laboratories become fully operational after the holidays.

Some labs failed to submit data because these were closed during the holidays, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Monday. Fewer people also got tested last month, she added.

Average laboratory submissions during the holidays fell to about 22,000 from 36,000 daily, she said.

“We are expecting, if and when this surge really happens, that it will materialize in mid-January,” Ms. Vergeire said in mixed English and Filipino.

She said that positive cases nationwide during the holidays dropped by 5%, while cases in Metro Manila declined by 4%.

“We expect normalcy to come back and we will witness a real trend in the number of case because all laboratories will become fully operational starting today,” Ms. Vergeire said.

She also said DoH suspended the license of one laboratory for failing to submit coronavirus test results. “We were able to suspend the license of one of the big laboratories last Dec. 29 because of its continuous noncompliance with our reportorial requirement.”

She added that four other laboratories could face similar suspensions. She did not identify the labs.

DoH reported 959 coronavirus infections on Monday, bringing the total to 478,761.

The death toll rose to 9,263 after six more patients died, while recoveries increased by 26 to 448,279, it said in  a bulletin.

There were 21,219 active cases, 81.7% of which were mild, 7.9% did not show symptoms, 6.4% were critical, 3.4% were severe and 0.57% were moderate.

Quezon City reported the highest number of new cases at 73, followed by Davao City at 70, Rizal at 58, Agusan del Sur at 44 and Laguna at 41.

DoH said five duplicates had been removed from the tally, while one recovered case was reclassified as a death. Three laboratories failed to submit their data on Jan. 3, it added.

Meanwhile, DoH urged local governments to work with the National Government in procuring and deploying coronavirus vaccines.

Ms. Vergeire said only the National Government can order vaccines that were given emergency use authority (EUA) by the local Food and Drug Administration (FDA).

“We urge local governments to work with us, because we can pool the funds and the National Government can procure and we can have an effective distribution system,” she said.

The city of Manila has started a pre-registration for free vaccines, allotting P200 million, while Makati City has allotted P1 billion for free vaccines, while San Juan City has allocated P50 million, according to news reports. Pasig City Mayor Victor Ma. Regis N. Sotto said the city had allocated P300 million.

More than 327,000 Pinoys come home amid coronavirus

MORE than 327,000 migrant Filipino workers from at least 90 countries came home last year amid a coronavirus pandemic that has sickened 85.5 million and killed more than 1.9 million people worldwide, according to the Department of Foreign Affairs (DFA).

Of the total, 231,537 were land-based workers and the rest were sailors from 150 cruise ships and oil tankers, it said in a statement on Monday.

Most of the returning Filipinos or 228,893 came from the Middle East, 36,868 from Asia and the Pacific, 30,971 from the Americas, 28,909 from Europe and 1,870 from Africa.

The agency helped 51,770 Overseas Filipino Workers (OFW) in December, even as the Philippines banned foreign travelers from 20 countries where a new coronavirus strain had been detected.

DFA said it had mounted sweeper flights to bring home distressed OFWs from Syria, Lebanon, Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates (UAE). It was also the highest monthly total since coronavirus-related repatriations started in February.

“As we start a new year, the DFA remains committed to its assistance-to-nationals mandate and renews its promise to bring home every Filipino who wishes to come home,” Foreign Affairs Undersecretary Sarah Lou Y. Arriola said in the statement.

In October, the department helped 500 Filipino students in Israel and 93 OFWs from Benghazi in Libya, the first since 2017. It also conducted the first repatriation by sea from Indonesia of 40 Filipino fishermen.

In November, the DFA helped nine Filipino sailors who were abandoned at their shipping vessel that was docked at the Port of Djibouti in East Africa.

DFA said more than 12,800 migrant Filipinos have been infected with the coronavirus. About 8,300 patients have recovered, while at least 900 died. — Charmaine A. Tadalan

Kaspersky expects more fake news as elections draw near

FILIPINOS might get bombarded with more fake information as the Philippines prepares for the national elections in 2022, global cybersecurity company Kaspersky Lab said.

“The whole region is quite ripe for potential disinformation campaigns,” the company said in  an e-mailed statement on Monday.

It added that such tactics would be increasingly used by various stakeholders as some countries hold elections this year and onward.

The increasing number of social media and mobile device users means that disinformation campaigns would have a “larger effect on opinions than was ever seen previously,” Kaspersky said.

The Philippines will elect new leaders from president and vice president to lawmakers and local government officials next year.

Vietnam also plans to hold its general elections this year, while Malaysian Prime Minister Muhyiddin Yassin said the country would hold its general elections once the coronavirus pandemic is over.

Last year, the personal information of more than two million Indonesian voters were leaked online. Kaspersky said similar attempts at data intrusion could be made in other Southeast Asian countries.

Wider use of technology last year increased the potential for more data breaches, Kaspersky Asia Pacific Security Researcher Muhammad Umair said.

“Those who have been quick to come on board this transformation must also be just as vigilant to protect themselves,” he said.

“As always, social engineering remains to be one of the most effective attack vectors and just as much as technology, a strong focus on education and awareness is needed more than ever,” he added.

Kaspersky said Southeast Asia is one of the worst-hit regions for attacks on industrial control systems, or computer-based systems used in manufacturing. — Jenina P. Ibañez

Nationwide round-up (01/04/21)

House health panel to prioritize proposals on PhilHealth contribution hike deferment

THE HOUSE of Representatives committee on health will prioritize proposals to defer the scheduled hike in member contributions to the Philippine Health Insurance Corp. (PhilHealth), the panel’s chairperson said on Monday.

Quezon Rep. Angelina Helen D. Tan, committee chair, assured that the proposals to defer the increase in premium contributions would be given “utmost priority and cautious consideration.”

Republic Act No. 11223, or the Universal Health Care Act, mandates a 0.5% increase in premium contributions every year, starting 2021 until it reaches the 5% limit in 2025.

The premium rate for this year will increase to 3.5% of members’ monthly basic salary from 3% last year, raising minimum contribution to P350 from the current P300.

“The increase in premiums will without doubt be an added burden to the public, many of whom are still reeling from the devastating effects of COVID-19 (coronavirus disease 2019) to their finances and livelihood,” Ms. Tan said in a statement.

On the other hand, she said, the proposed deferment will definitely spell a great setback in the government’s efforts “to bring health care to all Filipinos” through the implementation of the universal health care program.

“Membership contributions for 2021 should be thoroughly studied right away in light of the pros and cons of the matter.”

Another House member is urging the state insurer to consider a six-month suspension of the increase in premium contributions.

Party-list Rep. Michael T. Defensor said PhilHealth members deserve a temporary reprieve from the increase amid a “fortuitous event” such as the coronavirus pandemic.

“We are in the middle of a once-in-a-century pandemic. Even private pre-need companies are declaring a ‘fortuitous event’ to justify delays in the payment of their contractual obligations to thousands of planholders,” Mr. Defensor, who co-chairs the House committee on health, said in a statement.

Congress, if needed, should pass a joint resolution calling for the six-month deferment of the increase in premium contributions, he added.

Mr. Defensor noted that PhilHealth’s reserve fund stood at P110 billion as of March 2020.

“In an extreme situation wherein claims and administrative expenses might exceed contribution collections due to the pandemic, PhilHealth can always dip into its Investment Reserve Fund and the earnings thereof,” Mr. Defensor said.

PhilHealth has been tarnished with corruption allegations. Its former president and chief executive officer, Ricardo C. Morales, along with other officials are now facing graft charges before the Office of the Ombudsman over the alleged anomalous release of P2.7 billion worth of Interim Reimbursement Mechanism funds. — Kyle Aristophere T. Atienza

2 Chinese pharmaceutical firms to apply for vaccine emergency use

TWO Chinese pharmaceutical firms will apply for an emergency use approval of their respective coronavirus disease 2019 (COVID-19) vaccines from the local Food and Drug Administration (FDA) this week, according to the Philippine envoy to China.

Ambassador Jose Santiago L. Sta. Romana, in a briefing on Monday, said the companies — China National Pharmaceutical Group Corp. (Sinopharm) and Sinovac Biotech (Sinovac) — are currently in talks with the national COVID-19 task force regarding the vaccine emergency use authorization (EUA).

“Apparently, their plan right now, according to them is that they hope to file in the next few days sometime this week. They will file their EUA application with the FDA in the Philippines,” he said.

Last week, the FDA said American firm Pfizer, Inc. applied for an EUA.

With an EUA, the approval period of a COVID-19 treatment drug or vaccine will be reduced to 21 to 28 days from the usual six months. — Gillian M. Cortez

Senate hearing on vaccine to focus on immunization program

THE SENATE committee of the whole hearing next week will zero in on the government’s immunization program against the coronavirus disease 2019 (COVID-19), rather than issues on the “smuggled” vaccines, a senate leader said.

“The original question of the hearing is ‘Bakit wala pa tayong Vaccine? Kailan at paanong idi-distribute at paano storage?’ (Why don’t we have vaccines yet, and how will the distribution and storage be handled),” Senate President Vicente C. Sotto III told reporters over phone message on Monday.

The controversy over allegedly smuggled vaccines injected to members of the Presidential Security Group (PSG) might be taken up another time, he said.

Mr. Sotto also said he will first consult the other senators on whether to invite PSG Commander Jesus P. Durante III to the hearing set for Jan. 11.

Mr. Durante had admitted procuring the unregistered vaccines for COVID-19 that was inoculated to PSG personnel and some Cabinet officials.

The local Food and Drug Administration (FDA) has yet to authorize any COVID-19 vaccine for use in the country.

The government has allocated P2.5 billion for vaccines under the Department of Health’s 2021 budget and P70 billion more in unprogrammed funds.

There is also some P10-billion standby fund provided by the Bayanihan to Recover as One Act (Bayanihan II) under Republic Act No. 11494. This may be tapped if the President signs into law the bill extending the Bayanihan II, which expired on Dec. 19. — Charmaine A. Tadalan

Solon calls for stimulus on private sector investment in natural gas terminals

A LAWMAKER on Monday said the government must find ways to encourage private companies to build liquified natural gas (LNG) terminals, which will serve as replacement to the Malampaya deep water gas-to-power project with its reserves expected to start declining in three years.

“The output of the (Malampaya project’s) gas will start going down by 2024. The direction of the Department of Energy (DoE) is to encourage the private sector to build receiving terminals for imported liquefied natural gas,” Senator Sherwin T. Gatchalian, who chairs the Senate committee on energy, said in a press release.

Mr. Gatchalian said while the country has yet to discover new sources of gas, it “would have to resort” to importing LNG to ensure the operations of the five gas-fired plants that generate over 3,200 megawatts (MW) of power in Luzon, the senator said.

BusinessWorld sought DoE for comment but has yet to receive a reply as of press time.   

The Senate is scheduled on Tuesday to deliberate on Senate Bill No. 1819 or the Midstream Natural Gas Industry Development Act, which aims to develop the sector.

Based on DoE’s 2019 data, the Malampaya project fuels the five gas-fired power plants that take up 20% of Luzon grid’s installed capacity. The offshore project also served more than half of utility giant Manila Electric Co.’s (Meralco’s) power demand.

Four years ago, the Energy agency issued a circular that outlined the rules for players in the downstream natural gas industry.

But Mr. Gatchalian said this issuance needs a complementary law that will cover all aspects of the midstream natural gas industry, including transport, transmission, storage, and marketing of natural gas in its original or liquefied form. — Angelica Y. Yang

NBI to investigate selling of sexual photos and videos by students to raise funds

THE DEPARTMENT of Justice (DoJ) ordered the National Bureau of Investigation (NBI) to probe the reported selling of sexual photos and videos by students purportedly to raise money for online classes.

Under Department Order No. 001 dated Jan. 4, Justice Secretary Menardo I. Guevarra directed the state agents to investigate the “alleged proliferation of trafficking in persons and online sexual exploitation of children,” particularly the selling done by students.

The NBI was also told to file charges against all persons involved if evidence warrants.

Senator Sherwin T. Gatchalian, in a statement on Sunday, urged the Justice department’s Office of Cybercrime and the police Anti-Cybercrime Group to probe the reports on “Christmas sale” of sensual photos and videos to pay for expenses relating to distance learning.

Mr. Gatchalian said he has filed Senate Bill No. 1794, which proposes that regional trial courts can authorize law enforcers to conduct surveillance and record communications and information of persons charged or suspected involved in child trafficking.

The proposed law also mandates internet service providers to block and filter any access to child pornography.

Mr. Guevarra on Sunday said he welcomes the enactment of a law that would “strengthen the legal framework for the government’s campaign against human trafficking in cyberspace, particularly online sexual exploitation of children and minors.”

“As we await the passage of this legislation, the DoJ, through its Office of Cybercrime, and the NBI’s cybercrime division, will intensify its efforts to crack down on cybercrimes and all forms of human trafficking through the internet, which are expected to rise during these times of limited physical movement and interaction,” he told reporters via Viber.

The DoJ earlier said reported online exploitation of children from March to May 2020 rose to 279,166 cases, a 264.63% rise from the same period the previous year. — Vann Marlo M. Villegas

Regional Updates (01/04/21)

9 Sulu cops to face murder charges over shooting of 4 soldiers

PROSECUTORS have been directed to immediately file the resolution finding probable cause to charge nine policemen for murder and planting of evidence over the killing of four soldiers in Jolo, Sulu in June last year. Justice Secretary Menardo I. Guevarra said he ordered Prosecutor General Benedicto A. Malcontento to immediately file the information with the court, and secure arrest warrants against the nine cops. “I understand that the accused police officers have been dismissed from the service, so the court should immediately obtain jurisdiction over their person, lest they be able to flee,” he told reporters via Viber message on Monday. The prosecutors, in a statement, said the victims were “unarmed, unsuspecting and were not in the position to defend themselves when they were shot.” They also said a firearm was planted near the left hand” of one of the victims who was right-handed. On the other hand, the prosecutors dismissed the charge of neglect of duty under Executive Order (EO) No. 226 against the three superiors of the policemen. It said that under the EO, violators “shall be held administratively accountable,” which means the case does not fall under the Department of Justice’s jurisdiction. — Vann Marlo M. Villegas

Makati aims for 100% coverage as it allocates P1B for COVID-19 vaccines

THE MAKATI City government has allocated P1 billion to buy coronavirus disease 2019 (COVID-19) vaccines, which will be given to residents for free. “This is our number one priority for 2021. I want each and every Makatizen to receive both doses of the coronavirus vaccine for free to protect them and their families against the virus,” Makati Mayor Abigail Binay-Campos said in a statement on Monday. Ms. Binay said she will ask the city council to pass a supplemental budget for the vaccination program after the national task force on COVID-19 gives its go signal. The local government is currently coordinating with Secretary Carlito G. Galvez, Jr., designated vaccine czar, for the vaccine purchase and distribution. “We’ve seen the damage it can do both to human lives and our economy… we will do whatever it takes to protect our residents, employees, and our business community,” the mayor said. “We will exhaust all means to get the much-needed vaccines early and have all Makatizens vaccinated. The city will also assist companies and businesses that would like to buy vaccines for their employees and workers. We are aiming for 100 percent vaccination in Makati,” she added. The city government is preparing an online registration system for the inoculation. Several other local government units (LGUs) have taken a similar initiative of planning for a localized vaccination program.

House probe sought on death of 9 indigenous group members

A RESOLUTION seeking to investigate the killings of nine members of indigenous peoples under the group Tumandok and the arrest of 17 others in synchronized police operations in the hinterlands of Panay Island on Dec. 30 has been filed in the House of Representatives. Members of the six-man Makabayan bloc filed House Resolution No. 1149, which calls on the lower chamber to conduct a probe on the incident, which involved a simultaneous serving of search warrants against suspected communist rebels in several Panay provinces. Tumandok is an alliance of indigenous communities in Tapaz and Jamindan towns in Capiz, and Calinog in Iloilo. The organization has been known for resisting “destructive” development projects, the lawmakers said. Among those killed was Roy Giganto, a former village chief and an incumbent barangay councilor. The lawmakers said those killed in the operations were well-known indigenous leaders in their respective barangays and were consistent in opposing militarization and rights violations in their communities. — Kyle Aristophere T. Atienza

Agri prospects seen fragile due to pandemic, calamities

By Revin Mikhael D. Ochave, Reporter

PROSPECTS for growth in agriculture remain tenuous due to the ongoing impact of the pandemic, with natural disasters holding the potential to inflict setbacks, and the worst-case scenario estimated in the negative single-digit range, a professor at Pampanga State Agricultural University said.

Roy S. Kempis said in an e-mail interview the calamities can “easily” wipe out any progress made in growing agricultural output in 2021.

“My conservative estimate for the value of production of the sector in 2021 ranges from minus 0.70% to growth of 1%,” Mr. Kempis said, adding that his pessimistic scenario is between a contraction of 1% and growth of 0.8%.

Mr. Kempis said the last quarter of 2020 was not helpful to the sector with a series of typhoons causing widespread flooding and erosion.

“Whatever happens up in the skies… basically wipes out any gain through human effort to find and develop better plant varieties and animal or fish breeds to feed the growing population,” Mr. Kempis said.

Typhoon Vicky, the last typhoon to hit the Philippines in 2020, caused farm damage valued at P129.8 million, according to the Department of Agriculture (DA).

Separately, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA) Director Glenn B. Gregorio said the agricultural sector is expected to turn in negative output growth in the first quarter.

“For the first quarter of 2021, we are projecting that the overall growth rate of the volume of production in agriculture is minus 1.21%,” Mr. Gregorio said in an e-mail interview.

He expects fisheries to grow 3.05% during the quarter, offset by contractions in crops, livestock, and poultry  of 1.17%, 6.33%, and 3.99%, respectively.

He said farmers need more resilient agricultural farming systems to deal with natural hazards, such as typhoons and the pandemic, to production.

“These include improved access to climatic and weather data, stress-tolerant crop varieties, good agricultural practices, crop insurance, extension services, modern technological support, and innovative financial services,” Mr. Gregorio said.

Despite the negative estimate for the quarter, Mr. Gregorio projected growth for the rest of the year due to stronger interventions from the government and the private sector.

“We remain hopeful that 2021 is a year when the agriculture sector will significantly grow, and truly become an instrument for socio-economic transformation that centers on the well-being of the farmers and their families,” Mr. Gregorio said.

The DA is estimating a positive finish for 2020, and is adopting a much more optimistic outlook for 2021.

“In 2020, we expect modest growth of 1%. For 2021, we target a conservative 2.5% growth,” Agriculture Secretary William D. Dar said in the DA’s year-end report.

“The COVID-19 pandemic wreaked havoc on the global and national economy. But no matter what happens, people must eat,” he added.

The DA’s original growth target for the farm sector in 2020 was 2%, before being adjusted to 1.5%, and then finally to 1%. In 2019, the sector posted growth of 0.7%.

In the third quarter of 2020, the agriculture sector’s performance as measured by value of production returned an increase of 0.7%, according to the Philippine Statistics Authority.

“We must empower our farmers and fishers through collective action so they will have the opportunity to partner with the various actors in the industry. Leaving them alone will not accelerate the development of the sector,” Mr. Dar said.

In December, the DA announced an initial target for output of palay, or unmilled rice, of 20.48 million metric tons (MT) for 2021, against the 19.32 million MT target for last year.

Raul Q. Montemayor, national manager of the Federation of Free Farmers, said the agriculture sector will continue to move forward in 2021 despite the lack of optimism by most forecasters.

“People will still need to eat and farmers will continue to plant and produce food for the country even in the face of COVID, natural calamities, and other challenges,” Mr. Montemayor said in a mobile phone message.

Cashless payment system eyed for entire public transport sector

THE Department of Transportation (DoTr) said it will be rolling out a cashless transit card payment system this year for use in all modes of public transportation nationwide.

The DoTr said it is also working on national standards for transit cards and transit card readers for the system.

“This effort aims to improve Philippine public transport services by providing convenient payment options to the riding public,” the DoTr said in a statement Monday.

“The use of this technology in the transit system promises a more secure payment system, improved passenger convenience, and helps eliminate card-issue and management costs for transit operators.”

The DoTr said that it staged pilot tests of the transit card readers on three public utility vehicle routes in December.

The payments system was co-developed with the Land Bank of the Philippines. — Jenina P. Ibañez

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