For authenticity, fashion brands are tapping micro-influencers

August 25, 2021 | 2:28 pm

Fashion brands such as Aldo are tapping micro-influencers because they lend a “more personal touch” to campaigns.

“We hire influencers to give real-life examples,” said Vijay GT, head of information technology and e-commerce of Singapore’s Jay Gee Group, a branded lifestyle company that carries the brands Aldo and Converse Kids, among others.

Jay Gee Group, Mr. GT said, enlists agencies that hire micro-influencers such as college students and blog writers for product launches and related campaigns.

“Marketing is all about the different touchpoints in the funnel [a term for the journey customers go through from purchasing products to becoming loyal brand advocates], and influencers are one of those touchpoints,” he said at an Aug. 24 webinar on content creation organized by Adobe, a computer software company.

Followers may not immediately buy a product used by an influencer, he said, but the image gets embedded in their minds. “You go on your way, see the product again one day, and then say, ‘Oh, I’ve seen this before. I want to buy it,’” Mr. GT told the webinar audience.

Micro-influencers, as defined by marketing software developer HubSpot, are individuals who have between 1,000 and 10,000 followers on social media, are well-known in their area of interest, and have very high rates of engagement from their audiences.

Maryel B. Price, Adobe’s manager for digital customer experience and commercial marketing in the Asia Pacific, said this category of influencers tends to be more relatable too. “People follow micro-influencers that match their profile,” she added. “Sometimes, with the other influencers, everything’s so curated.”

In 2019, Southeast Asia’s influencer marketing industry was worth $638 million. It is estimated to quadruple within five years to reach $2.59 billion by 2024.

Influencer rates are based on their follower count, engagement rate, star power, and/or access to a niche audience. Engagement rates, for instance, are a more suitable metric for a brand that aims for conversion, according to Hootsuite, a social media management platform. Conversion, in marketing parlance, is when a visitor who visits a website completes a desired goal, such as a purchase.

“The reality is that whenever brands partner with an influencer, they are paying for access to their audience,” said Arthur Altounian, Asia Pacific client development director at INCA, a content production and media strategy firm, in a July interview with Adobo magazine. He added that an influencer’s credentials need to be vetted to combat influencer fraud and ensure brand safety.

Apart from influencer fraud, relevance is also a crucial point for when mounting campaigns.

HubSpot, in an October 2019 post, noted that some products and platforms are a more suitable match for micro-influencers than others.

“While micro-influence works well on Instagram with visual products, such as a bright can of sparkling water or an eye-catching outfit, this [strategy] might not be the best for promoting complicated software or other technology,” it said.

Creating a compelling customer experience boils down to choosing the right content, said Ms. Price said at the webinar. “You can build trust by having consistency across all your channels and content.” — Patricia B. Mirasol

US could control COVID by spring 2022 if more people get shots — Fauci

August 25, 2021 | 2:16 pm

WASHINGTON — The United States could get coronavirus disease 2019 (COVID-19) under control by early next year if vaccinations ramp up, Dr. Anthony S. Fauci said on Tuesday, one day after Pfizer won fuller Food and Drug Administration (FDA) approval for its shot, with more potential approvals coming in the weeks ahead.

Dr. Fauci, the nation’s top infectious disease expert, said in multiple television interviews and a White House press conference that full FDA approval for the Pfizer-BioNTech vaccine paves the way for more people to get inoculated, with potential approval for Moderna Inc.’s in the coming weeks and authorization for younger children by autumn.

“I would like to appeal to the people in the country who are not vaccinated to realize that we have the capability, among ourselves, to essentially cut down the time frame to getting to the end of this pandemic,” Dr. Fauci, head of the National Institutes of Allergy and Infectious Diseases, said during a Tuesday press conference.

“I think there’s a reasonable chance” that Pfizer or Moderna could get FDA clearance for children under 12 before the upcoming holiday season, he told NBC News. “Hopefully by the mid-late fall and early winter.”

US officials during the Tuesday press briefing also urged private employers and more state and local governments to require staff to get vaccinated in a bid to drive up vaccination rates.

“Now is the time” for US employers to start mandating vaccinations, White House COVID coordinator Jeffrey Zients said, echoing remarks from President Joseph R. Biden, Jr., on Monday.

Meanwhile, the White House is preparing to provide third “booster” doses starting in mid-September to Americans who received their COVID-19 inoculation more than eight months ago. The plan depends upon a thumbs up from the FDA and an advisory panel to the Centers for Disease Control and Prevention (CDC).

“We want to make sure we stay ahead of the virus,” Mr. Zients said, adding that “the plan is pending the FDA conducting an independent evaluation and outside experts… issuing a booster dose recommendation.”

Dr. Fauci added that healthcare providers should also make more use of COVID-19 antibody treatments, including those from Eli Lilly & Co, Regeneron Pharmaceuticals, and GlaxoSmithKline Plc/Vir Biotechnology Inc. Such treatments can reduce hospitalizations and deaths by as much as 85% if used early in infected people, he said.

The United States is battling another wave of cases due to the highly contagious Delta variant. Hospitalizations and deaths are also rising, particularly in Florida, Mississippi, Louisiana, Texas and other parts of the US South.

The average number of deaths from COVID-19 has risen by 23% over the previous seven-day period, Dr. Rochelle Walensky, director of the US CDC, during a Tuesday press call. The United States is now averaging 1,000 COVID deaths a day and over 150,000 new cases, according to a Reuters tally.

US health officials have also noted the number of inoculations has also risen in recent weeks and say they hope Monday’s FDA action spurs more people get their first shots.

The US military, along with several businesses and universities, including CVS Health Corp, privately held Deloitte and at least one college football team, have moved ahead with COVID vaccine mandates since the FDA’s announcement, which also buoyed Wall Street. — Susan Heavey and Carl O’Donnell/Reuters

Duterte to run for VP next year

August 25, 2021 | 1:52 pm

RODRIGUEZ_08242021-06 — PRESIDENTIAL PHOTO/ KING RODRIGUEZ

President Rodrigo R. Duterte on Tuesday night said he would run for vice-president next year.

“I will continue the crusade,” he said at a televised news briefing, referring to his campaign against illegal drugs, criminality and insurgency.

“I may not have the power to give the direction or guidance but i can always express my views in public for whatever it may be worth in the coming days,” he added.

In the Philippines, the President and vice-president are elected separately and may come from opposing political parties.

The vice-president usually becomes powerless unless the President gives him a key post in his Cabinet.

Some congressmen have said Mr. Duterte’s vice-presidential ambition is a desperate attempt to stay in power amid possible prosecution by the International Criminal Court (ICC) for human rights violations in his war on drugs.

Legal experts earlier said Mr. Duterte could not run away from potential lawsuits since a vice-president is not immune from suits. — Kyle Aristophere T. Atienza

US VP Harris forges on with Vietnam trip despite mystery ‘health incident’

August 25, 2021 | 12:17 pm

HANOI — Vice President Kamala D. Harris pushed ahead with a trip to Vietnam on Tuesday after delaying the visit over concerns due to a health incident potentially related to the mysterious Havana syndrome.

Ms. Harris arrived in the Southeast Asian country’s capital after a three-hour delay in Singapore that the US government blamed on reports that someone in Hanoi may have been targeted by the Havana syndrome, a condition of unknown origin with symptoms including dizziness, nausea, migraines and memory lapses.

The incident upstaged a bid by President Joseph R. Biden, Jr.’s top deputy to woo the allies Washington hopes will help it challenge China’s assertive foreign policy in the region.

Beijing, meanwhile, attempted to stage its own diplomatic coup with a surprise meeting in Vietnam and a donation of two million coronavirus disease 2019 (COVID-19) vaccines to the country.

White House press secretary Jen Psaki said the Havana syndrome case was reported in Vietnam before Ms. Harris’ departure but not confirmed. A safety assessment was done before sending Ms. Harris to the country, she said.

“The Vice President’s office was made aware of a report of a recent possible anomalous health incident in Hanoi,” the local US Embassy said. Some 200 US officials and kin, including Central Intelligence Agency (CIA) officers, have been sickened by “Havana syndrome,” CIA Director William Burns has said.

A US National Academy of Sciences panel in December found that a plausible theory is that “directed energy” beams caused the syndrome, which is so named because it first was reported by American officials based in the US embassy in Cuba in 2016.

The CIA sees a “very strong possibility” that the syndrome is intentionally caused, and that Russia could be responsible, but is withholding definitive conclusions pending further investigation. Moscow denies involvement.

VIETNAM SAYS IT PICKS NO SIDES

The incident came as Washington faces icy relations with another global competitor, China.

As Ms. Harris’s trip to Vietnam was delayed, Vietnamese Prime Minister Pham Minh Chinh held the unannounced meeting with Chinese Ambassador Xiong Bo, during which Chinh said Vietnam does not align itself with one country against any other.

Earlier on Tuesday, Ms. Harris had accused Beijing of coercion and intimidation to back claims in the South China Sea, her most pointed comments on China during a visit to Southeast Asia, a region she said is critical to US security.

“The Prime Minister affirmed that Vietnam adheres to an independent, self-reliant, multilateral, and diverse foreign policy and is a responsible member of the international community,” the Vietnamese government said in a statement.

“Vietnam does not align itself with one country against another,” it said. Territorial disputes in the South China Sea should be settled according to international law and “high-level common sense,” it said.

The US administration has called rivalry with China “the biggest geopolitical test” of the century.

“The fact that China’s ambassador insisted on a meeting with the Vietnamese prime minister shortly before Harris landed shows how anxious Beijing is that its communist neighbor may tilt toward the US,” said Murray Hiebert, a Southeast Asia expert at Washington’s Center for Strategic and International Studies.

During the meeting, Mr. Chinh thanked the ambassador for the vaccine donation. It was not immediately clear which vaccine China had donated.

Vietnam had successfully contained the coronavirus for most of last year but since April has been dealing with a large COVID-19 outbreak in Ho Chi Minh City, driven by the highly contagious Delta variant of the virus. Just under 2% of its 98 million people are fully vaccinated. — James Pearson and Nandita Bose/Reuters

Pozzi bathroom solutions: The future of comfort

August 25, 2021 | 12:00 pm

Pozzi is a trusted brand for all-around bathroom solutions that focuses on design, quality and functionality — an excellent choice for achieving a smart bathroom space. The modern and innovative features of each bathroom piece ensure high standard and convenience that you and your family can benefit on for generations. If you’re looking for top-notch bathroom fixtures, here are more reasons why Pozzi is a superb choice of comfort for all types of bathrooms:

Bathtubs

Pozzi bathtubs are one of the most impactful items you can add to your bathroom area. Offering an exceptional collection of bathtubs, Pozzi carries high-quality tubs, ranging from clawfoot tubs, drop-ins, free-standing, corner, and whirlpools that can guarantee a satisfying experience with every use. In addition, these tubs are ergonomically designed to consistently bring delight while adding value to your space.

Lavatory Sinks

Pozzi lavatory sinks come in a stunning selection of wall-mounted, drop-in, pedestal, corner, vessel, under-mount, and free-standing sinks. From simple and classic designs to modern ones, these sinks come in different shapes and sizes that can complement your taste as well as your bathroom interior.

Lavatory Faucets

Smooth, sleek, and stylish, Pozzi lavatory faucets are effortless to maneuver and install with unique features that improve everyday usage. For example, some faucets are designed with a smaller spray head that allows lesser water splashes in every use, while others come with an extended hose that can be pulled out and reach more areas for easier cleaning. Pozzi faucets also allow more control in terms of adjusting the water flow and temperature.

Toilets

Toilets are one of the most essential parts of any bathroom. Thoughtfully made with intelligent features and sleek designs, Pozzi toilets range in different designs like one-piece, two-piece, and wall-mounted. These toilets also come in three kinds of bowls that provide needed convenience including elongated, round, and square. Pozzi also offers different types of flushing made to conserve water and energy like single, dual, siphonic, touchless, and intelligent flushes.

Shower Enclosures

Corner shower cabins from Pozzi are a space-saving, all-in-one shower enclosure that is designed to provide a relaxing shower time. Some enclosures include intelligent features such as an electronic power control, water jet for back massage, illuminated rain shower, multi-spray telephone shower, hot and cold water mixer, foot massager, FM radio, exhaust fan, and a tempered glass with a tempered sliding door. Pozzi shower enclosures offer an optimal bath experience for all your shower needs.

Whirlpool Bathtubs

Aside from classic tubs, Pozzi also offers whirlpool tubs made for relaxing hydro massages. It is available from 2 to 4-seater tubs with whirlpool motors, superjets, mini jets, microjets, LED seven color lights, and even a multi-spray telephone shower. Whirlpool tubs are corner-type tubs that can seamlessly fit in your bathroom space without taking up necessary space.

Bathroom Cabinets

Perfect for storing all bathroom needs in one safe place, Pozzi bathroom cabinets offer a diverse range of styles, textures, and finishes that adds to the aesthetic appeal of the whole bathroom. Some cabinets also come with built-in sinks for convenient installation and better space efficiency.

Bathroom frameless mirrors

Pozzi bathroom mirrors come with a minimally designed frame with built-in lights that allow better convenience when doing your daily vanity needs. Made with functional and modern features, the lights on these mirrors are also activated through sensor touch for easier access.

Bathroom accessories

Aside from bathroom fixtures, Pozzi also offers classic and minimal-looking accessories perfect for embellishing your bathroom space. They carry bath baskets, toilet bowl brushes, bath towel holders, tumbler holders, bathrobe hooks, and corner glass shelves. These will help you store your bathroom needs more efficiently and create a complete overall look for your bathroom area.

Upgrade your bathroom space with high-quality bathroom fixtures from Pozzi, exclusively available at Wilcon Depot. You can get all these and more when you shop at any of their 68 Wilcon Depot and Wilcon Home Essentials stores nationwide or shop online at Wilcon Online Store by visiting shop.wilcon.com.ph.

Explore the limitless product selections that Wilcon offers, ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

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For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook and Instagram. Subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

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Pfizer, Moderna get EU nod for boosting mRNA COVID-19 vaccine output

August 25, 2021 | 11:32 am

Europe’s medicines regulator has approved additional manufacturing sites for mRNA-based coronavirus vaccines developed by Pfizer-BioNTech and Moderna to help boost production amid a resurgence in infections.

The European Medicines Agency (EMA) said on Tuesday its human medicines committee had approved a site at Saint Remy sur Avre in France for making the Pfizer-BioNTech vaccine, Comirnaty.

The Delpharm-operated site will help provide up to 51 million additional doses of Comirnaty in 2021, the EMA said.

The regulator also said it had approved a new manufacturing line at BioNTech’s site at Marburg in Germany, which would help boost capacity for the vaccine’s active substance by about 410 million doses this year.

The European Union has been trying to boost and protect supplies after a rocky start to its vaccination campaign by bringing more facilities online and paying more for new COVID shots.

The EMA also gave its go-ahead for an additional site at Bloomington, Indiana, in the United States for Moderna’s vaccine and several other locations involved in testing and packaging.

The Bloomington site is operated by contract drug manufacturer Catalent Inc.

The recommendations do not require a decision by the European Commission and the sites can become operational immediately, the EMA said. — Reuters

July budget gap narrows to P121B

August 25, 2021 | 12:34 am

Government spending remained muted in July, according to data from the Bureau of the Treasury. — PHILIPPINE STAR/ MICHAEL VARCAS

THE NATIONAL GOVERNMENT narrowed its budget deficit to P121 billion in July as an uptick in revenues failed to offset muted government spending amid the pandemic, the Bureau of the Treasury (BTr) reported on Tuesday.

Preliminary BTr data showed the July fiscal deficit declined by 13.57% from the P140.2-billion shortfall recorded in July 2020 and by 19.3% from the P150-billion deficit in June.

Despite this, the seven-month budget deficit widened to P837.3 billion, up 19.5% from P700.6 billion in the same period last year.

The government runs on a budget deficit as it spends more than the revenue it generates to fund programs and projects that will stimulate economic growth.

Overall public spending inched up by 0.69% to P377.3 billion in July, which was attributed to high base effects last year when the government was still implementing its cash aid program and the timing of subsidy releases to the Philippine Health Insurance Corp. and National Housing Authority.

Primary spending — which is overall expenditures net of interest expenses — edged up 0.93% to P318.2 billion in July, while interest payments were flat at P59 billion.

For the seven-month period, government spending increased by 8% year on year to P2.58 trillion. Primary spending rose 8.16% to P2.316 trillion as of end-July, while interest payments grew by 8.3% to P267.6 billion “due to discounts from the reissued Fixed Rate Treasury Bonds and coupon payments from Retail Treasury Bonds issued last year and this year.”

HIGHER REVENUES
Meanwhile, revenue collections in July increased by 9.2% year on year to P256.1 billion, bringing the seven-month total to P1.746 trillion, up 3.4% year on year. This was attributed a 10% rise in tax revenue, which made up 90% of the year-to-date total.

The Bureau of Internal Revenue (BIR) posted a 7.5% annual increase in collections to P170.8 billion. This helped boost the BIR’s tax take by 7.8% to P1.2 trillion in the January to July period.

On the other hand, the Bureau of Customs collected P57.2 billion in July, rising 15% from the same month a year ago. For the seven-month period, the BoC collections went up by 18.49% to P358.9 billion.

The Bureau of the Treasury (BTr) saw its income surge by 78% to P13.6 billion in July, which it attributed to higher dividend remittances, National Government share from the Philippine Amusement and Gaming Corp. and interest income from government deposits.

The BTr’s income stood at P95.2 billion for seven-month period, 50% lower than the P190.9 billion during the same period a year ago due to the base effect of higher income and dividend remittances as part of the provisions of Republic Act 11469 (Bayanihan I).

NO STIMULUS
High base effects caused the deficit to narrow in July because unlike last year, the government did not implement a massive cash aid program for those affected by stringent lockdowns, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said via Viber on Tuesday.

“No more Bayanihan stimulus and it will definitely have impact on economic recovery amidst the Delta variant risk ravaging many other economies in the region,” Mr. Asuncion said.

The government has released roughly P13 billion for cash aid to poor families in areas placed under hard lockdowns in August, while P23 billion was released for cash aid in April.

This compares with the P200-billion social amelioration program and the P50-billion wage subsidy program implemented by the government last year.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the slimmer budget deficit last month reflected improvements in the economy as the BIR and BoC reported higher collections.

“The renewed lockdowns in the National Capital Region since August could lead to increased government spending, lower tax revenue collections and wider budget deficit,” Mr. Ricafort said in an e-mailed note to journalists.

The government is expecting the deficit to reach 9.3% of GDP this year on expectations of ramped-up public spending, but Mr. Asuncion said hitting the ceiling would be a challenge due to absorptive capacity issues.

The narrower deficit was due to underspending by the government, which still had around P18 billion in unspent funds for its pandemic response, said Albay Rep. and House Ways and Means Chair Jose Maria Clemente S. Salceda.

“The only consolation in lower deficit spending is that it leaves us more room for Bayanihan III. I am confident that we will have a final agreement on the matter by next week. Time, of course, is of the essence,” Mr. Salceda said.

“When we meet again, I will ask the DBM (Department of Budget and Management) about which agencies spend money the best. Ayuda (cash aid) is certainly both spent quickly and needed critically. Hence, Bayanihan III devotes P110 billion, or 65% of its total budget of P170.1 billion, on an ayuda fund that we can spend anytime an ECQ is declared,” he added.

The House of Representatives has approved the proposed P400-billion Bayanihan III stimulus program, but the Senate has remained lukewarm to the measure. — Beatrice M. Laforga

Philippines gets $2.8B in new SDRs from IMF

August 25, 2021 | 12:33 am

A participant stands near a logo of the International Monetary Fund at the annual meeting in Nusa Dua, Bali, Indonesia, Oct. 12, 2018. — REUTERS/JOHANNES P. CHRISTO/FILE PHOTO

THE PHILIPPINES will receive $2.8-billion worth of Special Drawing Rights (SDRs) from the International Monetary Fund (IMF), as part of the latter’s efforts to help countries recover from the coronavirus pandemic.

The IMF said in a statement it distributed around $650 billion in SDRs — the largest in its history — to its members on Monday.

“The allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis,” IMF Managing Director Kristalina Georgieva said.

Data from the IMF website showed the Philippines gained 1.958 billion in newly allocated SDRs on Monday. This is equivalent to about $2.777 billion, based on a social media post by the IMF Asia and Pacific.

Prior to the new allocation, the Philippines already has 837.964 million in SDRs with the IMF, bringing the cumulative total to $2.795 billion.

Member countries were allocated SDRs — the fund’s unit of exchange backed by dollars, euros, yen, sterling and yuan — in proportion to their quota shares in the IMF. The SDR valuation is calculated daily and was at $1.41847 each as of Aug. 23, based on IMF’s website.

“The SDR allocation will provide additional liquidity to the global economic system — supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis,” Ms. Georgieva said.

Around $275 billion of the SDRs will go to emerging and developing countries, of which low-income countries will receive about $21 billion, the IMF said.

“SDRs are a precious resource and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed,” Ms. Georgieva said.

In a guidance note issued in July, the IMF said that countries can tap the newly allocated SDRs to boost reserve buffers in order to ease external financial constraint and to lower borrowing costs. These may also be exchanged into usable currencies for countries with liquidity constraints and those needing to finance additional spending during the crisis.

“Countries will need to address policy challenges related to the pandemic to prevent extended scarring, including from an increase in poverty, while being mindful of containing external financing needs and managing debt vulnerabilities,” the IMF said.

“Any use of SDR holdings should be consistent with debt sustainability and be implemented in the context of a well-defined and announced medium-term fiscal plan,” it added.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s gross international reserves (GIR) as of end-July was at $106.548 billion, of which $1.221 billion was in the form of SDRs.

This GIR level can cover 12.1 months of imports. It is also equivalent to about 7.7 times the country’s short-term foreign debt based on original maturity and 5.1 times the short-term external debt based on residual maturity.

The BSP projects the country’s foreign exchange buffers to reach $115 billion by end-2021.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the SDR boost is a welcome development as the country faces continued uncertainties from the pandemic.

“The SDR infusion will help shore up the external position of the Philippines which will go a long way to helping provide financial stability for emerging markets like the Philippines. We expect the peso to receive a short-term boost with the $2.77-billion SDRs expected to boost confidence in the country’s external buffers,” Mr. Mapa said in an e-mail.

The IMF’s last SDR distribution came in 2009 when member countries received $250 billion in SDR reserves to help ease the global financial crisis.

To spend their SDRs, countries would first have to exchange them for underlying hard currencies, requiring them to find a willing exchange partner country. — Luz Wendy T. Noble with Reuters

Gov’t seeks more loans from ADB, WB

August 25, 2021 | 12:32 am

THE PHILIPPINES is planning to tap its development partners including the Asian Development Bank (ADB) and the World Bank (WB), for a combined $3.25-billion worth of loans to fund projects mostly aimed at helping the economy rebound from the pandemic.

Documents for the proposed 2022 national budget showed the government is planning to tap the ADB for additional $2 billion to finance five projects until next year.

The government is seeking a $400-million loan for the second phase of a local governance reform development program by end of the year.

For next year, the government will seek ADB financing worth $400 million each for projects supporting universal healthcare, post-pandemic employment recovery, infrastructure financing, and agriculture development.

The government will ask the World Bank for $433 million in loans to support two projects next year. This includes the $400-million program to promote competitiveness and enhance resilience to natural disasters, and $33 million to support the Education department’s program to improve teachers’ competencies.

The Philippines is also looking to tap Japan International Cooperation Agency (JICA) for a $283.65-million emergency support loan for the government’s pandemic response.

The government is also looking at tapping the Agence Francaise De Developpement (AFD) for a $181.5-million Disaster Risk Management Policy-based loan this year.

For next year, the Philippines will ask AFD for a $181.5-million climate policy-based loan and another $121 million for an infrastructure financing program.

The country is also tapping Spanish Agency for International Development Cooperation (AECID) for a $50-million loan to further support its pandemic response.

“Based on the composition of the loans, all multilateral packages contain support for COVID-19 response, among others. Recovery will be closely associated with the implementation of pandemic-related programs and shall be among the main drivers of the growth outlook for the Philippines,” Robert Dan J. Roces, Security Bank Corp.’s chief economist, said via Viber on Tuesday.

The government borrows from both local and foreign lenders to address the funding gap seen to hit 9.3% of gross domestic product (GDP) this year. As a lower-middle-income economy this year, the country has access to the concessional loans of its development partners. — BML

Pandemic threatens Asia’s progress on dev’t goals

August 25, 2021 | 12:31 am

poverty-slum-area — PHILIPPINE STAR/ MICHAEL VARCAS

MANILA — The coronavirus pandemic may have pushed as many as 80 million people in developing Asia into extreme poverty last year, threatening to derail progress on global goals to tackle poverty and hunger by 2030, the Asian Development Bank (ADB) said on Tuesday.

Developing Asia’s extreme poverty rate — or the proportion of its people living on less than $1.90 a day — would have fallen to 2.6% in 2020 from 5.2% in 2017 without the coronavirus disease 2019 (COVID-19), but the crisis likely pushed last year’s projected rate higher by about two percentage points, ADB simulations showed.

The figure could even be higher considering the inequalities in areas like health, education and work disruptions that have deepened as the COVID-19 crisis disrupted mobility and stalled economic activity, the ADB said in a flagship report on the region.

“As the socioeconomic impacts of responses to the virus continue to unfold, people already struggling to make ends meet are at risk of tipping over into a life of poverty,” the Manila-based lender said.

Among reporting economies in Asia and the Pacific, which refers to the 46 developing and three developed ADB member economies, only about one in four posted economic growth last year, it said.

As unemployment rates increased the region also lost about 8% of work hours, affecting poorer households and workers in the informal sector.

The economic damage brought about by the pandemic had further intensified the challenge of meeting global development goals adopted by the United Nations (UN) in 2015.

UN members unanimously passed 17 Sustainable Development Goals, known as SDGs, in 2015, creating a blueprint of ambitious tasks from ending hunger and gender inequality to expanding access to education and healthcare.

The goals had a deadline of 2030.

“Asia and the Pacific has made impressive strides, but COVID-19 has revealed social and economic fault lines that may weaken the region’s sustainable and inclusive development,” ADB Chief Economist Yasuyuki Sawada said in a separate statement. — Reuters

Retention of telcos as public utility opposed

August 25, 2021 | 12:07 am

Foreign business groups say ‘liberalizing sends strong signal to investors’

FOREIGN business groups are joining local industries in opposing proposals to retain the status of the telecommunications sector as a public utility, which would limit foreign ownership in the sector.

Senate Bill 2094 could amend the Public Service Act (PSA), changing the definition of public utilities to allow more foreign investment in telecoms. The Constitution limits foreign ownership in public utilities to 40%.

The business groups expressed concerns over proposals to retain the status of telecoms they said are being considered in Senate deliberations.

The groups said that allowing foreign competition into the country would improve the quality and pricing of internet connectivity, which lags behind most Southeast Asian countries.

“The Philippines has the lowest mobile broadband subscription rate of 68 per 100 and lowest service population penetration rate of 80%. Even Cambodia and Myanmar are more advanced,” the groups said in a statement on Monday.

Business groups behind the statement include the American, Australian-New Zealand, Canadian, European, Japanese, and Korean chambers of commerce in the Philippines, along with the Philippine Association of Multinational Companies Regional Headquarters, Inc.

The groups added that the PSA amendments would help the country comply with commitments to the Association of Southeast Asian Nations to open investment in services to other members of the region.

“Liberalizing telecommunications sends a strong signal to foreign investors that the Philippines is more open and welcoming to foreign investors.”

Some senators have raised concerns on lifting the foreign ownership restriction, warning that it could threaten national security or favor a single country.

But the groups maintain that SB 2094 could protect against foreign government control of Philippine public services.

“The bill contains provisions to protect against foreign government-owned and influenced firms controlling Philippine public services by adopting national security review practices followed by major governments, including Australia, Japan, and the United States, in reviewing and approving major new foreign investments,” the groups said.

The foreign chambers join other Philippine business groups — which include the Management Association of the Philippines and the Foundation for Economic Freedom — that had written to the Senate opposing any move to retain telecoms as public utility. — Jenina P. Ibañez

Manila among cities to be served by Eve’s electric aircraft

August 25, 2021 | 12:06 am

EVE Urban Air Mobility, LLC is planning to deploy up to 100 aircraft to be marketed by Ascent Flights Global Ltd. for use in key cities in the Asia-Pacific region, including Manila.

Eve and Ascent announced on Tuesday “a deepening of their partnership aimed at developing a robust urban air mobility (UAM) ecosystem in the Asia-Pacific region,” Embraer S.A. said in a statement e-mailed to reporters.

Eve is a company under Embraer, a Brazil-based multinational aerospace manufacturer.

“Beginning in 2026, Eve will provide Ascent with up to 100,000 hours of flight time per year on its electrical vertical takeoff and landing (eVTOL) aircraft, also known in the market as EVA (electrical vertical aircraft), for use in key cities such as Bangkok (Thailand), Manila (Philippines), Melbourne (Australia), Singapore, and Tokyo (Japan),” Embraer said.

It also noted that Eve plans to deploy up to 100 aircraft to be marketed by Ascent, which operates as an independent on-demand platform, on its current and future routes.

Ascent, a Singapore-based start-up that powers Asian air mobility, will pay for flight time utilized on Eve’s aircraft while working with partners in the Asia-Pacific and other markets, Embraer said.

“This new agreement is part of Eve´s comprehensive UAM strategy to position the company as a leader in the industry. The deployment of Eve aircraft across the Ascent network is subject to the parties entering into definitive final agreements,” the company added.

Eve President and Chief Executive Officer Andre Stein told BusinessWorld in a recent e-mail interview that the company wants to make eVTOLs accessible to the middle-class population in the region. — Arjay L. Balinbin