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Globe Platinum customers raise homeschool kits for children in Baseco

Last September 4-6, Globe Platinum customers attended the first Electric Weekend, an exclusive three-day event featuring free fitness workouts led by instructors from Electric Studio. Classes over the weekend raised 373 World Vision school kits for the children in Baseco Compound, Manila so they can continue their education at home.

Knowing that home workouts have become a way of life for people looking to stay fit and healthy, Globe Platinum offered its customers the chance to join the Electric Weekend. They were invited over to SHOOR (www.shoor.com.ph) where they can choose from up to three classes facilitated by instructors from the country’s first indoor cycling gym and premium fitness boutique, Electric Studio.

To kick off the event, participants brought out their jabs at Electric Rhythm Boxing, a high intensity, music-driven shadow boxing workout. A forty five-minute Pure Electric indoor cycling class kept the momentum the next day with full body movements, music, and free weights. On Sunday, a sixty-minute Electric Strength Training toned the core and upper bodies of the participants and capped the weekend activities.

All those who attended the Electric Weekend received a Globe Platinum bag containing workout tools they could use in any of the classes. Those living in Metro Manila who did not have their own indoor bike were also able to join the Pure Electric class on Saturday by borrowing an indoor bike for free and having it delivered to their home.

By joining the event, not only were Globe Platinum customers able to indulge in an exhilarating workout session, they also helped children from Baseco Compound in Manila continue their education at home. For every class they joined or class challenge they completed, Globe Platinum matched it with a school kit donation to World Vision, the global organization working with the most vulnerable families to ease the challenges of distance learning during the pandemic. When they registered to a class, participants were able to share words of encouragement to the beneficiaries, who will receive an entire backpack complete with school supplies and homeschool learning modules approved by the Philippine Department of Education. After this first ever Electric Weekend, children from Baseco have a better chance to reach their potential and become a future hero of our nation.

For Globe Platinum, Electric Weekend is just the beginning. It is part of the #ForFutureHeroes campaign that gives more purpose to the perks customers will enjoy while they stay safe at home. To learn more about how Globe Platinum lives its promise to empower customers to move themselves and others forward, visit glbe.co/forfutureheroes.

Singapore airport chairman faces backlash over maid theft case

The chairman of Singapore’s award-winning Changi Airport, Liew Mun Leong, is facing growing criticism on social media after a court overturned a conviction against a domestic worker who had been charged with stealing from his household.

Singapore’s High Court last week acquitted Parti Liyani, an Indonesian maid, with Justice Chan Seng Onn saying that the Liew family had an “improper motive” for accusing the helper of stealing S$34,000 ($24,810) worth of items such as watches and clothes. The court also found the testimony of Karl Liew, Liew Mun Leong’s son, questionable, according to ChannelNews Asia.

The judge noted there was reason to believe that the affluent family filed a police report against their former maid to prevent her from lodging a complaint to the Ministry of Manpower about her work arrangements, that included being illegally deployed to clean Mr. Liew’s son’s home and office in addition to Mr. Liew’s house.

When contacted, Mr. Liew said that as the High Court has made its judgment of the case, he should respect it and will not make any further comments.

The scandal has sparked a fierce backlash in the city-state, including angry comments on the airport’s Facebook page calling for him to step down. It has also raised questions about how the system treated one of the city-state’s most prominent businessmen compared to a low-paid migrant worker who worked for them.

NOT A ‘WITCH HUNT’

Besides being chairman of Changi Airport Group, Mr. Liew is also chairman of urban consultancy Surbana Jurong Pte. and was the founding chief executive officer of real estate giant Capitaland Ltd. He was also on the board of Singapore Exchange Ltd. and is a senior international business adviser of state investment firm Temasek Holdings Pte., among many senior leadership positions.

“Something has gone wrong in some part of the chain of events,” Law and Home Affairs Minister K. Shanmugam said in a post on his Facebook page. “We have to review, deal with it. At this point, we shouldn’t prejudge or speculate on which of part the process could have gone wrong. This is why reviews are being conducted.”

Singapore’s Attorney-General’s Chambers is reviewing the case and the judge’s comments to see if any further action should be taken. The Ministry of Manpower and police are also reviewing how the case was handled.

Mr. Shanmugam said the process must be fair, but not a “witch hunt,” adding the agencies will review what happened, why it happened, and “we will then need to be accountable, on what steps we will take,” so as to continue to maintain trust in the system.

Temasek’s investment arm CEO Dilhan Pillay said Tuesday during the firm’s annual review that Liew is among many who have contributed to Singapore over the years.

“There are many individuals who have contributed to both public service and to the private sector in Singapore, for the benefit of Singapore and our population as a whole. Liew Mun Leong is one of those persons,” Mr. Pillay said, responding to a question about the incident.

“The court case has just had one phase of it done, there are ongoing proceedings and I don’t think it’s appropriate for me to comment on that. What I can say is that we should hear from Mr. Liew on his side of the issue, and not come quick to judgment until we’ve heard all sides of things.” — Bloomberg

Agribusiness tagged as one of four sunrise industries by economist

By Mariel Alison L. Aguinaldo

“I cannot, in any way, speak with certainty about the next twelve to eighteen months. In fact, I’m amused at how economists, no matter how sophisticated their tools are, are literally guessing about what’s going to happen,” said Bernardo M. Villegas, economist and professor at the University of Asia and the Pacific, during the recent Asia CEO Forum.

That being said, he predicts that four sunrise industries will remain strong, if not experience a boost, during the pandemic: agribusiness, digital technology, health-and-wellness, and skills development.

Food and agribusiness have been performing steadily, with the International Labor Organization reporting that food supply has been adequate since the beginning of the pandemic. In the Philippines, Century Pacific Food, Inc. reported an increase in net revenue during this time.

The Department of Agriculture expects the industry to be an integral part of the Philippines’ socioeconomic response to recovery efforts. Recently, the agency announced that it will explore the use of data-driven methods to help improve farm productivity. This includes the use of drones and a dynamic cropping calendar that provides real-time access to production and risk damage assessment data.

“This pandemic has finally impressed on the minds of everyone that food security is a must, and that we have to do something about the whole value chain of agribusiness,” said Mr. Villegas.

Demands from the digital technology industry will also increase as remote work and social distancing become the new norms. “Zoom has become one the most precious assets right now in the stock market,” said Mr. Villegas.

Other “sunrise” industries include health-and-wellness, and skills development. The latter includes both degree-granting institutions and informal education platforms. “People now see how important it is to make learning a lifelong process. Technology is changing so fast, you become obsolete the moment you graduate from any course,” said Mr. Villegas.

Infrastructure projects under the government’s Build Build Build Program (BBB Program) will also contribute to economic recovery. Dr. Villegas identified projects outside of Metro Manila as particularly helpful since they distribute economic opportunities. 

These projects are also more attractive to investors since they are in less congested areas. Meanwhile, those located in export processing zones will also benefit from relaxed trade policies. 

The lockdown initially slowed down the BBB Program, although flagship infrastructure projects like the Harbor Link were granted exemptions in May. Other projects, such as Clark International Airport, resumed in July.

If the government wishes to attract more investors, Mr. Villegas believes that it must ease foreign investment regulations. “I don’t have any illusion that we’ll be able to change the constitution in the remaining years of Duterte, but I’m optimistic that in the next administration… there will be enough demand for changes that we may be able to change those restrictions,” he said.

The constitution does not allow for more than 40% foreign ownership of any public utility, corporation, or association in the country. However, the House of Representatives approved a bill in March allowing for 100% foreign ownership in the power, transport, and communication sectors. Those in favor said that this would encourage foreign investment in the country.

AstraZeneca puts leading COVID-19 vaccine trial on hold over safety concern

AstraZeneca Plc on Tuesday said it has paused a late-stage trial of one of the leading COVID-19 vaccine candidates after an unexplained illness in a study participant.

“Our standard review process was triggered and we voluntarily paused vaccination to allow review of safety data by an independent committee,” company spokeswoman Michele Meixell said in an e-mailed statement.

The study is testing a COVID-19 vaccine being developed by AstraZeneca and University of Oxford researchers at various sites, including the United Kingdom, where the illness was reported.

The nature of the case and when it happened were not detailed, although the participant is expected to recover, according to Stat News, which first reported the trial was halted due to a “suspected serious adverse reaction.” The US Food and Drug Administration defines that as an adverse event in which evidence suggests a possible relationship to the drug being tested.

The suspension of the trial has impacted other AstraZeneca vaccine trials—as well as clinical trials being conducted by other vaccine makers, which are looking for signs of similar reactions, Stat said.

The US National Institutes of Health, which is providing funding for AstraZeneca’s trial, declined to comment.

AstraZeneca’s statement said that “in large trials, illnesses will happen by chance but must be independently reviewed to check this carefully.”

Shares of AstraZeneca fell more than 8% in after-hours US trading, while shares of rival vaccine developers rose. Moderna Inc. was up more than 4% and Pfizer Inc. rose less than 1%.

Moderna, in an e-mailed statement, said it was “not aware of any impact” to its ongoing COVID-19 vaccine study at this time.

Nine leading US and European vaccine developers pledged on Tuesday to uphold scientific safety and efficacy standards for their experimental vaccines despite the urgency to contain the coronavirus pandemic.

The companies, including AstraZeneca, Moderna, and Pfizer issued what they called a “historic pledge” after a rise in concern that safety standards might slip in the face of political pressure to rush out a vaccine.

The companies said they would “uphold the integrity of the scientific process as they work towards potential global regulatory filings and approvals of the first COVID-19 vaccines.”

The other signatories were Johnson & Johnson, Merck & Co, GlaxoSmithKline, Novavax Inc, Sanofi and BioNTech. — Reuters

MVP group donates equipment in fight against COVID-19

(Manila, Philippines) – The group of companies under the helm of businessman and industrialist Manuel V. Pangilinan recently donated hospital beds and equipment for the newly-inaugurated East Avenue Medical Center – Center for Emerging Infectious Diseases (EAMC-CEID) in Quezon City. The donation was coursed through PLDT-Smart Foundation (PSF) and One Meralco Foundation (OMF). According to Atty. Mike Toledo, Managing Director, Public Affairs, MVP Group of Companies, the donation was part of the commitment made with the Department of Health (DOH) in its fight against COVID-19. EAMC-CEID is under the auspices of the DOH. Atty. Pilar Nenuca Almira, President and CEO of Cardinal Santos Medical Center and Our Lady of Lourdes Hospital, as well as head of the COVID-19 crisis team of Metro Pacific Hospitals Holdings Inc., attended the inauguration of the new EAMC wing on Pangilinan’s behalf. Others present were National Task Force against COVID-19 Chief Implementer Secretary Carlito Galvez Jr.; Quezon City Mayor Joy Belmonte; DOH Undersecretary Leopoldo Vega, M.D., for Secretary Francisco Duque; and DPWH Undersecretary Emil Sadain for Secretary Mark Villar. The new facility has a maximum capacity of 250 beds and will be dedicated to treating COVID-19 patients.

Regional Updates (09/08/20)

DENR’s Manila Bay ‘white sand’ project violates at least five laws — NGOs

SEVERAL NONGOVERNMENT organizations (NGOs) claimed that the dumping of crushed dolomite or ‘white sand’ along the coast of Manila Bay by the Department of Environment and Natural Resources (DENR) violated at least five laws that affected fisheries, biodiversity, and marine habitats. In a position paper, Oceana Philippines and other civil society groups said the DENR’s project failed to comply with the Fisheries Code, the Clean Water Act, National Cultural Heritage Act, Local Government Code of 1991, and Presidential Proclamation No. 2146, which declares “certain areas and types of projects as environmentally critical.” The Manila Bay is a declared national historical landmark. “We condemn this project and it must be stopped as it has not undergone an environmental impact assessment nor a consultative and participatory process in both Manila Bay and in Cebu (where the dolomite was sourced), as to its environmental impacts, thereby violating several environmental laws,” the position paper states. On the other hand, Interior and Local Government Secretary Eduardo M. Año sees expressed support to the DENR. “This would not only give a nicer view but it could provide a safety buffer,” he said in an interview over CNN Philippines. “What we have learned ay hindi na siya (is it is not) harmful,” he said. Health Undersecretary Maria Rosario S. Vergeire, in a briefing on Sept. 7, said studies indicate that the inhalation of crushed dolomite may pose respiratory issues and other minor health risks to people. — Revin Mikhael D. Ochave and Emmanuel Tupas/PHILSTAR

Bacolod City, Lanao del Sur placed under strict quarantine level

BACOLOD CITY and the province of Lanao Del Sur have been placed under a strict quarantine level from September 8 to 30 following a spike of coronavirus disease 2019 (COVID-19) cases. These areas will be under the modified enhanced community quarantine (MECQ) category, where public transport is not allowed, among other restrictions. In a briefing on Tuesday, Secretary Carlito G. Galvez Jr., chief implementer of the national COVID-19 response,  said Lanao Del Sur Governor Mamintal A. Adiong Jr. recommended the lockdown in his province, which includes Marawi City. The neighboring city of Iligan has earlier been placed under MECQ for the whole month of Sept. For Bacolod, Mr. Galvez cited that the critical care capacity of hospitals in the city are a “critical” level. The national task force also approved the temporary suspension of inbound travel for locally stranded persons to the Western Visayas Region, to which Bacolod belongs, as well as Iligan City and Lanao del Sur. The travel ban is in effect until Sept. 21. — Gillian M. Cortez 

Cloud seeding set for irrigation source in Central Luzon

CLOUD SEEDING operations will soon be undertaken to augment the declining water level of Pantabangan Dam and ensure supply for the irrigation of agricultural lands in the Central Luzon Region. “Central Luzon is a critical component in our objective to achieve food security, especially for residents in the National Capital Region… With this initiative, we can ensure a respectable rice harvest in Central Luzon, particularly in Nueva Ecija, Pampanga, Bulacan and Tarlac,” Agriculture Secretary William D. Dar said. As of Tuesday morning, Pantabangan Dam’s water level was at 182.11 meters, far from its normal operating elevation of 216 meters, according to data from the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA). In other rice producing regions like Ilocos and Cagayan Valley, Bureau of Soils and Water Management Director Sonia M. Salguero said there is no urgent need to conduct cloud seeding as farm areas have “received ample rainfall due to the southwest monsoon and enhanced by the recent typhoon Julian.” — Revin Mikhael D. Ochave

PHL may see worst slump in ASEAN

The Philippine economy plunged into recession in the second quarter, as the lockdown halted economic activity.  — PHILIPPINE STAR/MICHAEL VARCAS

PHILIPPINE gross domestic product (GDP) is expected to shrink by 8% this year, the steepest projected decline among economies in Southeast Asia, according to Fitch Ratings.

“Renewed lockdown measures in and around the capital of Manila have been implemented, which will depress economic growth by much more than we had anticipated,” Fitch Ratings said in a note sent to reporters on Tuesday.

The credit rater’s latest forecast for the Philippine economy is worse than the -4% it penciled in last June and the -4.5 to -6.6% projected by the government. The economy already plunged into recession after GDP shrank by 16.5% in the second quarter.

Metro Manila and some surrounding provinces were placed under tighter lockdown restrictions for two weeks in August to slow the surge of coronavirus disease 2019 (COVID-19) infections.

Among the Association of Southeast Asian Nation (ASEAN) economies, Fitch had the worst outlook for the Philippines this year, followed by Thailand (-7.8%), Singapore (-6%), Malaysia (-2.5%), and Indonesia (-2%). Vietnam’s economy is projected to grow by 2.8% this year.

Fitch’s -8% GDP outlook for the Philippines and Maldives is the third worst among Asia-Pacific economies, after the -40% GDP forecast for Macao and -10.5% projection for India.

For Asia-Pacific, Fitch said GDP growth will revert to positive territory in the second half as lockdowns ease and external demand slowly picks up. It sees Asia-Pacific GDP shrinking by 1.1% in 2020, compared to a global contraction of 4.4%.

“The strength of the regional pickup, however, will be constrained by the risk of new coronavirus outbreaks…. Activity appears to be recovering even in countries where the virus continues to spread rapidly, including India, Indonesia and the Philippines, underpinned by the easing of lockdown measures and policy support,” Fitch said.

The Philippines remains the epicenter of the coronavirus disease 2019 (COVID-19) in Southeast Asia, with 241,987 cases as of Tuesday.

REBOUND
Fitch expects the region to bounce back in 2021, with the Philippine economy seen to grow by 9%.

“Countries highly reliant on tourism receipts, such as the Maldives and Thailand, will face a delay in their recovery, while those dependent on remittances, such as Bangladesh and the Philippines, may also take time to recover,” it said.

Cash remittances grew 7.7% year on year to $2.465 billion in June, but year-to-date flows dropped 4% to $14.019 billion, central bank data showed.

More than 164,000 overseas Filipino workers have already been repatriated due to the crisis, according to the Department of Foreign Affairs. The Bangko Sentral ng Pilipinas expects cash remittances to fall by 5% this year.

Fitch said the Philippines’ “BBB” rating with a stable outlook is underpinned by the country’s fiscal and external buffers with its relatively low debt-to-GDP ratio prior to the pandemic, its net external creditor position, and still strong medium-term growth prospects”

“However, these buffers are being eroded by the pandemic-related economic shock, although there is room to accommodate some deterioration in the fiscal outlook,” Fitch said.

The country’s national debt-to-GDP ratio was at 39.6% in 2019. This year, the government projects this to rise to 53.9% due to the pandemic.

Meanwhile, the general government debt-to-GDP stood at 34.1% in 2019, which is much lower than the 42.2% median for BBB-rated countries, Fitch said. This is projected to increase to 47.8% this year, 49.8% in 2021 and 50.1% in 2022.

Fitch flagged some “negative sensitivities” for the Philippine rating, including reversal of policy reforms that could weaken the economy; and the deterioration in the asset quality of banks that would lead to stress in the financial system. — Luz Wendy T. Noble

Private sector asks gov’t to detail recovery plan

The private sector is urging the government to streamline policies on mobility amid the pandemic. — PHILIPPINE STAR/MICHAEL VARCAS

THE private sector is asking the government for a six-month plan detailing how the Philippines can bounce back from the devastating impact of the coronavirus disease 2019 (COVID-19).

“To effectively combat this health crisis, the government needs to provide a clear and comprehensive 6-month plan that thoroughly describes the concrete plan, steps, and actions that government will take that will help the country survive and bounce back,” Philippine Chamber of Commerce and Industry (PCCI) National Capital Region Area Vice-President Delia B. Jimenez said during the Sulong Pilipinas online event on Tuesday.

“We are all in this together. With the government and the rest of the country, we too will fight to achieve a quick and solid economic recovery,” she added.

At the top of their list is a request to improve mobility despite the various quarantine protocols being implemented around the country. They asked the Inter-Agency Task Force on Emerging Infectious Diseases, Department of Interior and Local Government (DILG) and the Armed Forces of the Philippines to synchronize their policies and coordinate with local governments.

The business group also called on the Trade and Transportation departments to come up with measures to boost freight and logistics capacity, particularly to help the manufacturing sector.

The private sector is also asking for assistance for the services sector, particularly the struggling tourism industry. This includes a request for policies and a roadmap to directly assist the industry as the economy gradually opens.

They also asked for a roadmap on developing nationwide digital infrastructure, which they said should be included in the budget for 2021.

Another recommendation was for the Economic Development Cluster to assist private firms that opt to retain employees instead of implementing layoffs.

To create jobs, the private sector asked for partnerships with government institutions like the Technical Education and Skills Development Authority to train, upskill, and certify returning Overseas Filipino Workers.

The private sector asked that Congress fast-track the passage of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), which would immediately cut corporate income tax to 25%.

Another recommendation was for the establishment of an online  business registration system that will allow interconnected processing among agencies by 2021.

The private sector also said processes for infrastructure development should be streamlined by next year to encourage more investments, and that agriculture farm-to-market access be improved through value chain interventions, digitalization, and added technologies by the end of the year.

In his response, Finance Assistant Secretary Antonio G. Lambino II said that the government is accepting the recommendations, which they will share with the relevant government agencies for consideration.

“Businesses have the sectoral expertise, organizational capacity and foresight to create progressive solutions in various areas of development,” he said.

The Philippine economy fell into its first recession in 29 years when gross domestic product shrank by 16.5% in the second quarter when nearly all economic activity was shut down during the lockdown.

INFRASTRUCTURE SPENDING
Meanwhile, the government is pinning its recovery hopes on its “Build, Build, Build” infrastructure program.

“Metro Manila stands to benefit from major infrastructure projects in the ‘Build, Build, Build’ program. For too long, the capital has suffered from one of the worst traffic conditions in the world, affecting the daily lives of commuters and the cost of doing business,” Finance Secretary Carlos G. Dominguez III said in his speech at the Sulong Pilipinas forum Tuesday.

“The government’s massive infrastructure spending in Metro Manila will relieve these pain points while generating employment and business opportunities across sectors as well as fostering interregional connectivity,” he added.

Based on a study launched September 2019, the Asian Development Bank (ADB) said Metro Manila ranked the most congested city in developing Asia.

The ADB attributed the urban congestion to lack of efficient and affordable public transportation.

The government allotted a P1.1-trillion budget for infrastructure next year, up 41% from the reduced P785.5-billion budget this year after the government redirected some funds to its pandemic response. The accelerated infrastructure program was also part of the recovery program of the government as it generates jobs and has a huge multiplier effect.

Mr. Dominguez identified several key infrastructure projects that will ease the congestion in the capital, including the 36-kilometer Metro Manila Subway and the Metro Manila Skyway Stage 3 project. — Jenina P. Ibañez and Beatrice M. Laforga

Philippines unlikely to have nuclear power plant by 2029

The Duterte administration is looking at introducing nuclear energy into the country’s power mix. — REUTERS

THE Philippines is unlikely to have an operational nuclear power plant over the next decade despite the government’s move to revive the sector and increasing calls to shun the use of coal, according to Fitch Solutions Country Risk and Industry Research.

In July, President Rodrigo R. Duterte issued Executive Order No. 116 which authorized a study on the viability of nuclear energy as a power source.

“(W)e maintain our forecasts that no nuclear capacity will come online in the country over the coming decade, and will only seek to revise it if we see concrete project developments going forward,” Fitch Solutions said in a recent commentary.

It cited high capital costs and safety considerations as the main challenges to the development of the nuclear power in the country.

Nuclear power projects “often face long lead times and a high risk of substantial delays (10 to 15 years),” it added.

“(E)ven if a decision would go through, we remain cautious on factoring in its entry into commercial operations within our forecast period to 2029,” Fitch Solutions said.

The government is also considering restarting the mothballed 621-megawatt Bataan Nuclear Power Plant (BNPP), although some sectors have raised concerns.

“Numerous issues ranging from health, environment, economics, nuclear contamination, as well as the unsolved problem of nuclear waste disposal are grave concerns that should be taken into considerations by our energy officials before we should think of opening the BNPP,” Bayan Muna Party-list Rep. Carlos I. Zarate said in a statement last month.

The Department of Energy (DoE) admitted that before the country can benefit economically from nuclear power generation, it must first address infrastructure gaps and satisfy the 19 requirements prescribed by the International Atomic Energy Agency (IAEA), the global authority in nuclear development.

Energy Secretary Alfonso G. Cusi in August told reporters that the country is almost through with these requirements, although legislative and regulatory frameworks have yet to be passed. Six measures on nuclear power are pending in different House committees, while a counterpart bill in the Senate has not been filed.

The DoE is pushing for the development of nuclear power to augment the country’s energy supply and help protect consumers from traditional power price volatilities.

Fitch Solutions recognized nuclear power as “an effective solution to meet the country’s rising power demands over the coming decade, due to its high capacity factors as a baseload resource.”

It projected a 4.6% annual average increase in power consumption between 2020 and 2029, driven by strong macroeconomic and demographic growth and the goal to reach 100% total electrification by 2022.

The interagency body tasked to assess the viability of nuclear energy hopes the government can adopt a national position on the power source to be included in the generation mix by yearend, according to Mr. Cusi.

Meanwhile, coal will still dominate the Philippines’ power generation mix over the next decade, increasing its share to 60.2% from 54.6% in 2019, as it remains to be “the cheaper and more reliable option” to meet the surge in power demand, according to Fitch Solutions.

It also noted the latest revision of the Philippines Energy Plan still focused on coal expansion. The DoE is still updating the country’s energy blueprint, which seeks to add more than 40,000 megawatts of power by 2040.

“Renewables have also faced many headwinds in development, and we do not expect a substantial ramp up in this regard. As such, we expect the Philippines’ power mix to remain dominated by coal over the coming decade…. However, should nuclear power be reintroduced, coal will likely be the first generation type to face cuts, due to the increasing structural risks and ongoing public oppositions,” Fitch Solutions said.

In June, the House Climate Change Committee passed a resolution seeking to ban new coal plants. Big local power companies like Ayala-led AC Energy, Inc. and Manila Electric Co. (Meralco) also vowed to gradually turn away from coal power generation.

Earlier this year, about 42 faith-based groups around the world expressed their intention to withdraw $1.4 billion in fossil fuel investments. — Adam J. Ang

PERA pushed as state pensions not enough for retirees

Only 20% of the 7.6 million Filipinos aged 60 years and above are covered by state-backed mandatory pensions, data from the Philippine Statistics Authority showed. — PHILIPPINE STAR/MICHAEL VARCAS

THE government targets to have five million Filipinos with personal equity and retirement accounts (PERA) in the next five years, as it launched an online platform to make it easier for them to invest.

“The target seems ambitious. But with more than 40 million locally employed Filipinos prior to the pandemic and around 2.2 million overseas Filipino workers, I am optimistic that this goal is easily attainable,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said at the launch of the digital PERA on Tuesday.

Republic Act 9505 or the PERA law aimed to encourage Filipinos to save up for their retirement with the new investment tool. It is designed to complement the mandatory contributions made by public and private sector workers. The PERA law was passed in 2008 but only implemented starting December 2016.

With the digital PERA platform, Filipinos can open and access their PERA accounts anytime using a mobile gadget. PERA contributors can add to their investments through InstaPay and other digital means.

PERA also offers tax incentives such as a five percent income tax credit on contributions which could be utilized for settling their income tax liabilities.

Mr. Diokno noted only 20% of the 7.6 million Filipinos aged 60 years and above are covered by state-backed mandatory pensions, citing data from the Philippine Statistics Authority. Retirees on the average receive a monthly pension of P5,123 from the Social Security System and P18,525 from the Government State Insurance System.

“According to a recent survey, we Filipinos tend not to prepare for their own retirement. Specifically, Filipinos only set aside 3.6 months’ worth of income for retirement — way below the regional average of 2.9 years. In terms of expectation, Filipinos believe that savings equivalent to 2.1 years’ worth of personal income would be enough for retirement. This is the lowest expectation in Asia compared with the regional average of 12 years,” Mr. Diokno said.

The BSP chief said it is important that voluntary retirement savings plans such as PERA would supplement state-based pension plans. 

Only 1,586 Filipinos have utilized the facility as of July, with total contributions of P137 million, Mr. Diokno said. Majority or 69% of contributors are locally employed, while 17% are overseas Filipino workers (OFWs) and 14% are self-employed.

“OFWs have higher contributions at P110,000; local employed workers at P82,000; and the self-employed at P76,000. These figures remain regrettably low,” Mr. Diokno said.

A person aged 18 or older can contribute a maximum of P100,000 yearly under the PERA platform, but the amount may reach up to P200,000 for OFWs.

The development and upgrade of the PERA registry system was funded by the Asian Development Bank. Phase 2 of the ADB-funded project covers the development of the Bureau of Internal Revenue’s (BIR) ePERA system, which will facilitate the processing of electronic tax credit certificates and accept reports from PERA administrators. — LWTN

SEC permanently shuts Fast Track

THE Securities and Exchange Commission (SEC) has ordered the permanent shutdown of Fast Track Worldwide, Inc., which it found operating an unauthorized investment scheme.

In an Aug. 20 resolution uploaded on its website, the corporate regulator has denied Fast Track’s motion to lift its cease-and-desist order, and has made such order permanent.

The company was issued the shutdown order in May after it was found to have engaged in offering investment contracts to the public. It filed a motion to lift the order in June.

While it is a registered corporation since February 2019, Fast Track is only authorized to engage in the direct selling of food and merchandise. Its registration specifically prohibits it from soliciting investments from the public.

However, the SEC found that the company is bundling its products with investment contracts. It sells beauty products, health products, clothes, appliances, books, and car care products, but resellers are promised profit through the recruitment of more sellers.

“That they are selling their products is uncontested; what is at issue… (is) the sale of its product was carried out as part of an investment package that guaranteed returns and added bonuses by recruitment of new members,” the SEC said. “This is what converted the activity into a sale of securities in the form of investment contracts.”

Such activity requires authorization from the SEC by obtaining a secondary license to sell securities. Fast Track did not have this authorization.

The SEC also said Fast Track was engaged in pyramiding, as its clients pay money to the company, receive the right to sell the products, get compensated for the recruitment of more members, and such compensation has nothing to do with the sale of the products.

With the resolution, Fast Track must permanently stop its operations, and will be prohibited from transacting any business involving funds in its depository banks.

The SEC has shut down at least five other companies this year for the sale of securities without a license. These are: JOCALS688 Beauty and Wellness Products Trading, Inc.; Building Our Success Stories Network, Inc.; CROWD1 Asia Pacific, Inc.; Lion City Finance Group, Inc.; and Payasian Pte. Ltd. Corp. — Denise A. Valdez

Masters and maps

MASTERS and maps are all the rage this season for Leon Gallery’s Magnificent September Auction, happening live at 2 p.m. on Sept. 19 at the gallery’s salesrooms in Legazpi Village.

The word “Magnificent” isn’t an exaggeration in this case. Dominating the lots is Jose Joya’s “Angeles,” with an initial bid of the princely sum of P10 million (plus a buyer’s premium of 15%). The catalog says, “Angeles is a stunning work that captures the master in the pinnacle of his artistic practice.” The piece (Lot 156) comes with certification from Alexander Richard Joya Baldovino, a member of the artist’s family.

As for the maps, a prized possession-to-be would be the Ramusio-Gastaldi Map of 1563 (initial bid of P2 million), an antique map that calls this group of islands “Filipina” for the first time in a European document (Lot 96). Another document, the “Historia de la Provincia de Philipinas,” an early history of the colony up to 1716, is also up for grabs for the same price (Lot 98). Another historically important item will also be up on the block: a gold neck ornament from the 10th-13th century, a pre-Hispanic artifact, has an initial bid of P3 million (Lot 110). Meanwhile, Juan Luna’s “View of Mariquina” circa 1895 (Lot 116), is also in the catalog, and has an initial price of P2.4 million. Antiques are also up for sale: a chair from the collection of artist Felix Resureccion Hidalgo (Lot 113) has an initial price of P120,000; and a grand matrimonial Ah Tay bed (Lot 115) has a tag of P1.4 million.

Several other items pass the million mark (or even the five million mark). Lee Aguinaldo’s “Linear 98 and 99” (signed and dated 1969), depicting what appear to be windows, have an initial price of P4.2 million each (Lots 41 and 42). Ang Kiukok’s “Mother and Child,” signed and dated 1968 and accompanied by a certificate, is tagged at P6 million (Lot 46). Fernando Zobel’s elegant interpretation of “Seville” (Lot 74), meanwhile, is up for auction with an initial price of P5 million, and an Amorsolo half-nude, “The Offering,” signed, dated, and with a certificate, is also on the block at the initial price of P5.5 million (Lot 126). Other prominent items that pass the million mark and more are works by Mark Justiniani, Jose John Santos, Jigger Cruz, H.R Ocampo, Malang Santos, and Anita Magsaysay-Ho. More works by National Artists Jose Joya, Amorsolo, Vicente Manansala, Benedicto “BenCab” Cabrera, and Arturo Luz round out the catalog.

The catalog can be viewed in full at leon-gallery.com/auctions/. Absentee bids are accepted for auction day on the 19th; the works can be viewed by appointment from Sept. 12 to 18, Saturday to Friday at Leon Gallery, G/F Eurovilla I, Legazpi corner Rufino Streets, Legazpi Village, Makati. Log on to www.leon-gallery.com for more information. —  JLG

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