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Indonesia drive-in concert delivers live music as coronavirus rages

JAKARTA — As night fell in the Indonesian capital, pop ensemble Kahitna took to the stage for a drive-in concert nearly two hours long that attracted eager listeners in rows of hundreds of parked cars.

The eight performers played yearning, sentimental tunes, capitalizing on patrons’ nostalgia for the group’s 1990s heyday, with listeners honking and flashing their lights as the band launched into its hit tune, “Cerita Cinta” or “Love Story.”

That was a reminder of the good times before the coronavirus pandemic brought the music industry to a juddering halt, said Chaeruddin Syah, one of the concert organizers.

“Our economy has declined for four to five months, we have not worked at all and have not made any money,” Syah told Reuters.

“We hope this concert can provide solutions and inspiration to the entertainment industry.”

Indonesia, which is grappling with a surge in virus infections, racked up its biggest daily increase in cases for a third straight day on Saturday. The Southeast Asian nation has tallied about 170,000 infections and 7,261 deaths.

The organizers of Saturday’s event said they had prioritized safety, asking listeners to provide negative test results and wear masks.

The concert, which was to be followed by another on Sunday, drew a crowd of about 900 people in 300 cars, all of whom had to stay in their vehicles.

Each car tuned into an FM radio channel to hear the concert. Each was sprayed with disinfectant on arrival, and received a carbon dioxide detector to alert occupants to open their windows if levels of the dangerous gas rose too high.

“This concert is an extraordinary initiative,” said one listener, a 45-year-old who gave her name only as Emilia.

“This is really good, especially when we don’t know when the pandemic will end.”

A city of 10 million, Jakarta has recently recorded the highest daily increase in infections among Indonesian regions, and maintains curbs on public transport and businesses, although this week it’s governor said cinemas would reopen soon.

The adverse impact of the virus had forced musicians and their crews to adapt, said Adib Hidayat, who tracks music trends for the Indonesian industry.

“If the (drive-in) concept could have a strict protocol and a tight discipline from the audience, it could be one of the new breakthroughs,” he told Reuters. — Reuters

Credit Suisse planning to double China headcount

CREDIT Suisse plans to double its headcount in China over five years. — REUTERS

CREDIT SUISSE Group AG plans to double its headcount in China over five years as the firm accelerates its pursuit of the nation’s wealthy, seeking to move past a scandal that’s engulfed once-favored client and Luckin Coffee Inc. founder Lu Zhengyao.

The bank has largely normalized approvals for Chinese companies, ending the increased scrutiny on loans that followed allegations of fabricated earnings at Luckin and a slowdown to weigh the impact of Covid-19. Credit Suisse will add to its China workforce as it targets a 100% increase in revenue there, Asia Chief Executive Officer Helman Sitohang said in an interview. Its China securities venture had 154 staff at the end of last year, and the lender also offers financing, trading, wealth and asset management on the mainland.

Much of the firm’s build-out will focus on expanding advisory and investment banking services for the ballooning ranks of China’s rich. Sitohang’s plans are key to Credit Suisse meeting its goal of doubling the contribution to revenue growth that comes from ultra high net worth strategic clients over the next three years. Separately, the lender has embarked on a wide-ranging assessment of risk controls following a series of deals linked to troubled companies including Luckin.

“China is our strongest focus when it comes to headcount, and infrastructure growth compared to any country in the world,” Sitohang said. “The worst of COVID’s impact on the region’s business activity is behind us,” he said, referring to Asia.

Asia’s largest economy has the most millionaires after the US and its financial opening this year has presented global banks and asset managers with an unmatched opportunity for expansion. Credit Suisse wants Asia to make up 25% of group revenue in a couple of years, from 17.5% now, people familiar with the matter said, declining to be named discussing internal matters.

The downfall of Starbucks Corp. rival Luckin and its billionaire founder blindsided Credit Suisse and other lenders, who are fighting to recoup losses on more than $500 million in margin loans. The Swiss bank, the lead underwriter for Luckin’s public offering, launched an internal review though Chief Executive Officer Thomas Gottstein has said it will continue to target China’s wealthy entrepreneurs.

RECORD REVENUE
On the investment banking side, Credit Suisse in April became one of the latest global firms to win approval to take full control of a venture it has run with Founder Securities since 2008. Tim Tu and Daniel Qiu were this year named as CEO and head of investment banking and capital markets respectively for the China joint venture, which has so far struggled with revenue of $22 million last year.

About 30 bankers at the joint venture were pushed out in July as Credit Suisse plans to recruit fresh talent, a person familiar said.

The Zurich-based bank’s latest earnings point to other successes in its Asia push, with net new assets in the region’s private banking business swelling by 80% in the second quarter amid a trading boom. Wealth and investment banking advisory, the biggest growth areas, both posted record revenue in the first six months, driven by growth in China as markets recovered.

Sitohang, who has spent years turning around the Asian trading operation, ceded oversight of the unit in a global restructuring that’s folding trading into a new investment bank. The region’s markets division posted a 54% jump in revenue in the first half.

Gottstein announced the revamp at the end of July. The initiative includes a new cost savings program, a merger of its advisory and trading business and as many as 500 job cuts in Switzerland.

“The capital released doesn’t happen overnight, but the efficiency that we expect on the cost side as well as on the capital side will be deployed back into the wealth management,” he said. “Asia will be a priority.” — Bloomberg

DMCI Homes to start 3 projects before yearend

DMCI HOMES plans to start residential developments this year as it remains bullish about the property market amid a coronavirus pandemic.

In a statement, the property arm of listed DMCI Holdings, Inc. said it was finalizing plans for a new residential project at its 150-hectare Acacia Estates in Taguig City. It is also studying new projects in Makati and Manila.

“Sales of our projects are still encouraging despite current circumstances which gives us confidence to launch two to three new properties before yearend,” DMCI Homes President Alfredo R. Austria said in the statement.

“Acacia Estates is always on our list because of the strong residential demand in the area,” he said. The company is also working on permits to use its land bank in Makati and Manila, he added.

The new project in Taguig City called Alder Residences will be a high-rise condominium standing on 28,607 square meters of land, according to DMCI Homes’ website.

The company said it would continue developing the Acacia Estates township as its recently finished project — Mulberry Place — was quickly sold out within weeks from launch.

The 13-year-old Acacia Estates is home to more than 8,000 families. It is near McKinley Hill, Bonifacio Global City, Makati City and the Ninoy Aquino International Airport.

Aside from residential properties, the township also features a 22,000-square-meter commercial space with restaurants, salons, gyms and a supermarket.

“Through the years, DMCI Homes has continuously developed Acacia Estates to bring the necessities of modern living to the residents,” it said.

The property developer posted a 97% profit decline to P38 million in the first six months as its operations were disrupted by the coronavirus pandemic.

Income at the whole DMCI group, which has businesses in mining, construction, water and power plunged 69% to P2 billion from a year earlier. — Denise A. Valdez

Robinsons mall gets e-jeepney terminal

ROBINSONS MALLS teamed up with the Mandaluyong Transport Group for the establishment of a modernized jeepney terminal at Forum Robinsons.

The e-jeepneys will ferry passengers to and from Forum Robinsons Complex to Kalentong/JRC, Monday to Sunday. Trip intervals are every 30 to 40 minutes.

E-jeeps can accommodate a maximum of 13 passengers. Drivers can pick up passengers along the way but the drop-off is allowed only at designated jeepney stops.

The Mandaluyong Transport Group installed plastic barriers between passengers and requires all passengers to leave their details on a safety manifest for contact tracing.

Hollywood’s diversity push has left out one important group

OVER the years, Marilee Talkington, who is legally blind, has repeatedly auditioned for TV shows featuring a character who is blind. But several times, the same thing happened. The part went to an actress who was not blind.

“It’s a punch to the gut,” she said. “If you’re white and playing a person of color, do you know how offensive that is? We need to look at disability the same way.”

As Hollywood faces another reckoning over its lack of diversity, disabled actors are hoping this time they’ll be included in the conversation. Studios are under pressure to address racial and gender inequality. But the industry’s failure to create more disabled characters — and to cast actors with disabilities in those roles — has received much less attention.

People with disabilities represent about 20% of the U.S. population. Yet just 3% of regular characters on TV shows have a disability. Of the disabled characters on TV and streaming services, more than three-fourths were played by actors who don’t have the same disability, according to the Ruderman Family Foundation. Advocates say such casting decisions are insulting and take away opportunities from disabled performers.

“Trying to find an authentically played disabled character on screen is like trying to find Waldo,” said Maysoon Zayid, a comedian who has cerebral palsy and has a recurring role on “General Hospital.” “I don’t think Hollywood can truly be considered inclusive until they stop the horrid practice of casting non-disabled actors to play visibly disabled roles.”

There are signs the industry is starting to change. Steve Way, a comedian who has muscular dystrophy, has a part on Ramy, a comedy on Hulu about a young American Muslim struggling with his faith. Talkington has a recurring role on the first season of See, a science fiction show on Apple TV+ in which the human race has lost the sense of sight. In December, Netflix ordered a second season of Special, a show starring Ryan O’Connell about a young gay man who has cerebral palsy. And in the upcoming film The Eternals, Lauren Ridloff, a deaf actress, will play Marvel’s first deaf superhero.

Yet all too often, advocates say, the roles of disabled characters are given to non-disabled actors like Bryan Cranston, who played a quadriplegic in The Upside, or Dwayne “The Rock” Johnson, who played an amputee in Skyscraper. Over the years, Hollywood has frequently honored non-disabled actors portraying disabled characters with Oscars, from Dustin Hoffman in Rain Man to Eddie Redmayne in The Theory of Everything.

“Every single time a non-disabled actor is cast in a disabled role is a step backwards,” said Ryan J. Haddad, an actor who has cerebral palsy and plays a student on Netflix’s The Politician. “Before you even get to the audition process, you need to say ‘If I’m writing this character it will be played by a disabled actor and that’s it. There’s no other option.’”

Advocates say there would be financial and social benefits to having more actors with disabilities on screen. Disabled consumers represent a $1 billion market and putting more, better-written disabled characters on screen could help change cultural attitudes, just as Will & Grace and Orange Is the New Black are credited with shaping mainstream perceptions of LGBTQ issues.

Some disabled actors are hopeful the Black Lives Matter movement will lead to more inclusion of all marginalized groups in Hollywood. Others remain skeptical, having seen people with disabilities overlooked during such initiatives before. “A couple years ago, when the Oscars put out that statement on diversity, disabled people were completely left out,” Way said. “It wouldn’t surprise me if it happens again.”

For many disabled actors, Hollywood can be a difficult place to navigate physically. Studios lots are large and filled with steps and wires. Dressing rooms and audition sites are often not accessible by wheelchair. “There are times when I’m on an audition and I can’t get in the building,” Way said.

Non-disabled writers often fail to capture the nuances of living with a disability. Two years ago, Zayid sold a semi-autobiographical comedy series to ABC. But because it was her first TV show, she was assigned to work with a veteran head writer, who was neither disabled nor Muslim. The resulting script, she said, “was stereotypical, offensive and what the disability community calls ‘inspiration porn.’” The show was never made. “I am forever thankful, because it was awful,” she said.

In January, the Ruderman Family Foundation, a Boston-based advocacy group, wrote an open letter calling for more casting of people with disabilities, signed by several major stars, including George Clooney and Olivia Munn. The group’s president, Jay Ruderman, has asked all the major U.S. media companies to pledge to audition and cast more performers with disabilities. So far, only CBS has agreed.

“The fact that I can only name one corporate leader who has come forward and said ‘This is the right thing to do,’ is pretty sad,” Ruderman said.

In 2018, the Casting Society of America held an open casting call for hundreds of actors with disabilities. David Caparelliotis, a casting director on NBC’s medical drama New Amsterdam, said such outreach efforts are necessary because actors with disabilities can be hard to find on short notice. “They simply are not represented by talent agencies and managers as much as they should be,” he said.

Gail Williamson, who does represent disabled actors at the talent agency Kazarian/Measures/Ruskin & Associates, said the agency’s clients with disabilities have seen their earnings grow from $50,000 in 2013 to over $3 million last year. “In the last five years, I’ve seen more forward movement than in my first 25 years of doing this,” she said. Even so, she said, too few writers’ rooms include people with disabilities, leading to less authentic characters.

Advocates say there needs to be more well-rounded roles for actors that have little or nothing to do with their disabilities. “We need more stories that don’t just involve a disabled person wanting to kill themselves or lose their virginity,” Way said.

Such portrayals can be done right. During the first season of Netflix’s The Politician, Haddad’s character only refers to his disability once. “It wasn’t the only reason I was there,” he said. “It was refreshing to just have my walker and be in the story and not have my arc be obsessively about cerebral palsy.” — Bloomberg

Mandatory retirement plans to boost life insurers

THE DEPARTMENT of Finance’s proposal to require companies to set up mandatory retirement plans for their employees will help expand the insurance market to micro, small and medium enterprises (MSMEs), officials said.

“I think requiring companies to set up a mandatory retirement fund for employees would be a welcome development for life insurance companies as such would create an expanded market via the industry’s potential engagement into limited trust business,” Sun Life of Canada (Philippines) Inc. CEO and Country Head Benedicto C. Sison said in an e-mail.

He said the proposal will benefit employees of MSMEs who do not usually qualify for tax exemptions on their contributions to company retirement plans.

“Generally, only the big companies are able to enjoy tax-qualified retirement plans. MSMEs don’t usually have them because of the challenge of complying with the minimum annual contributions required by universal banks,” Mr. Sison said.

“If given a limited trust license by the BSP (Bangko Sentral ng Pilipinas), life insurance companies could service the underserved MSMEs that account for 99.56% of business establishments in the country at 1.42 million,” Mr. Sison said.

Pru Like UK President and CEO Antonio G. de Rosas said in an e-mail that most life insurers are capable of engaging in this business.

“Currently, they have difficulty in selling tax-exempt retirement products and this amendment to the Insurance Code should help remove current obstacles experienced,” Mr. De Rosas said in an e-mail.

“I think it’s just a matter of timing because of the work and coordination which need to be done by multiple regulators such as the BSP, Insurance Commission and the BIR (Bureau of Internal Revenue),” Mr. De Rosas said.

The officials of the insurers said they hoped the concerned government agencies will soon complete the guidelines for retirement plans of insurance companies.

Finance Secretary Carlos G. Dominguez III earlier said the Capital Market Development Council, which he co-chairs, is studying the recommendation of the Fund Managers Association of the Philippines to require the partial or full funding of retirement plans for private sector workers.

The BIR allows a company to appoint a trustee, usually from a bank, to manage and grow its retirement fund through various investments for the welfare of its employees. The BIR excludes final taxes on interest income from investments based on the type of benefits under the retirement plan and amount of benefits given by the company, among others.

This complies with the Retirement Pay Law requiring private corporations with at least 10 employees to provide them retirement funds.

Meanwhile, under Section 429 of the Amended Insurance Code, insurance firms can also set up a trust entity for retirement and pre-need plans separate from their insurance business. They must acquire a license from the BSP and approval for tax exemption from the BIR before the trustee can operate. — Kathryn Kristina T. Jose

PHL shares to rise as investors hope for recovery

By Denise A. Valdez, Senior Reporter

LOCAL SHARES are seen to recover this week due to improved investor sentiment as September starts.

The bellwether Philippine Stock Exchange index (PSEi) closed Friday’s session lower by 37.37 points or 0.63% to 5,884.18. On a weekly basis, the benchmark index declined 2% or 121.22 points.

Value turnover was up 71% to an average of P9.09 billion, but net foreign outflows grew more than double to an average of P972.41 million.

“The market is expected to rebound around 5,700-5,800 levels amid recovery hopes as we enter ‘ber months,’” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.

She noted the holiday season may signal improved consumer spending, backed by an expectation that lockdown restrictions will be eased in the months ahead.

“[S]pending could be better than the previous months this year but we don’t think that it would exceed last year’s spending as the country is still challenged by the COVID-19 (coronavirus disease 2019) pandemic,” Ms. Alviar said. “We are hopeful but not as optimistic as before.”

In August, the PSEi was flat with a 0.75% decline from in July. Ms. Alviar attributed this to the initial market drop when a stricter lockdown was imposed for two weeks, then a rebound when news of a COVID-19 vaccine and the recomposition of the PSEi member stocks came.

But the month of September may also signal volatility as investors anticipate increased climate risks due to La Niña, online brokerage 2TradeAsia.com said.

“With increased chances for La Niña to occur during September (50-55% chance), expect investor sentiment to exacerbate guarded sentiment given the climate risk exposure of key engines of the economy (agriculture, tourism, energy),” it said in a market note.

This week, investors will watch out for the August manufacturing data to be released on Tuesday and the August inflation data to be released on Friday.

“We’re going to see the impact of the reversion of Metro Manila and nearby areas (to stricter quarantine) in August. If it comes lower than July’s figure of 48.4, then it may weigh on the market,” Ms. Alviar said.

“With participation improving and the PSEi’s trading band narrowing, the next aspiration will not only be on trumping the 6,000 level again, but also establishing higher lows (from the 5,800 level). Doing so will put the index at a more exciting technical space, to north of 6,000-6,200,” 2TradeAsia.com added.

The brokerage is putting immediate support for the PSEi at 5,700, and secondary support at 5,500, with resistance at 6,000.

Advocacy group tells Meralco to ‘go green’

MANILA ELECTRIC CO. (Meralco) should turn to renewable energy supply for its upcoming round of procurement, according to clean energy advocates.

The listed electricity distributor asked the Department of Energy (DoE) last month to let it push back to October its competitive selection process for the purchase of 1,800 megawatts (MW) of greenfield capacity, or energy from upcoming power generators, given volatile fuel prices amid a global coronavirus pandemic.

The Power for People Coalition, a group of renewable power advocates, said Meralco should “go green” and shun energy from fossil fuel.

“If it would convert a substantial portion, or the entirety of its 1,800-MW contract to renewable energy instead of coal, it will become immune to fluctuations of prices in the international market and can pass on the savings to consumers, solving their problems,” group convenor Gerardo C. Arances said in a statement.

Consumers are also concerned about price changes that affect their budgets, he added.

The group stressed the importance of renewable energy as the country recovers from the worst economic recession in decades.

Meralco wanted to change its basis forecast year in its supply contract to 2022 from 2020, assuming that fuel prices would normalize by that time, so rates would be competitive for its customers.

The coronavirus pandemic brought down the demand for petroleum products globally, pushing prices down while a supply glut also troubled producers. Oil prices averaged $45 a barrel in recent weeks.

The DoE wanted the distribution utility to start its power procurement to ensure the availability of supply for its seven million customers. Power supply is expected to tighten in the coming years as the country bounces back from the impact of the pandemic.

Earlier, SMC Global Power Holdings Corp. said it planned to join the utility’s competitive selection process, bidding its four power plants in the pipeline with a combined capacity of more than 2,000 MW.

This will be Meralco’s third attempt to hold a bidding for supply from new power plants after failing to attract power producers.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

Metro Retail Stores Group, Inc. announces schedule of annual stockholders’ meeting via remote communication

Phase 1 of Filinvest New Clark City on track for completion

THE FIRST PHASE of Filinvest New Clark City (FNCC) is expected to be completed “in the near future,” including the first 60 hectares of Filinvest Innovation Park.

Filinvest Development Corp. (FDC) is developing the FNCC, a 288-hectare project that is part of the New Clark City in Tarlac. Industrial lots at the Filinvest Innovation Park are currently being offered for lease.

The company said the FNCC “represents Filinvest’s vision of building a smart, green, sustainable, and highly accessible metropolis outside Metro Manila.”

“Working with Bases Conversion and Development Authority (BCDA) and the government has only reinforced our vision that our country should be mindful of only building smart, efficient and future-ready cities,” Josephine Gotianun-Yap, president and CEO of Filinvest Development Corp, said.

“With this, we identified that Ecology, Technology and Architecture, Future, and Culture or Eco-tech-ture are vital elements that should be well-integrated to attain our goal.”

Entertainment News (09/01/20)

HBO’s Food Lore honored at ContentAsia Awards

AFTER being prominently featured in the 34th Tokyo International Film Festival (TIFF) last year, the Philippine episode in the HBO Asia Original series, Food Lore, received two additional feathers in its cap at the inaugural ContentAsia Awards held on Aug. 28. The director of the episode “Food Lore: Island of Dreams” Erik Matti won Best Director of a Scripted TV Program while the series itself won the Best Asian Drama for Regional/International Market category at the Awards. “Food Lore: Island of Dreams” explores the life of Nieves (played by Angeli Bayani), an ambitious and hard working woman, who left her husband and children to work as a domestic helper in Metro Manila to provide them with a better life. Returning home for their annual fiesta, Nieves realizes that she may have grown estranged to her family due to unexpected changes in her life. The episode, which also touches on the diaspora of Filipino workers overseas, is written by Michiko Yamamoto. The ContentAsia Awards recognizes the best content representing the best Asia has to offer in the local and international markets. The HBO Asia Original anthology was recognized for its unique weave of different stories for Asian and global markets. Food Lore is an eight-episode series that explores human conditions with narratives inspired by Asian cuisines. Helmed by Singapore filmmaker Eric Khoo, Food Lore gathers some of Asia’s best storytellers to develop stories that reflect an emotional journey filled with passion, treasured memories and a little spice of Asia. Food Lore can be streamed exclusively on HBO GO. HBO GO is available via SKYCable and Cignal or at https://www.hbogoasia.com/.

Classic OPM song gets a modern twist for a good cause

WITH everything going on right now, the whole world could use a little more sunshine this summer. That’s why Malibu Caribbean Rum — through a partnership with platinum-selling American DJ and producer Dillon Francis and over 30 Malibu Ambassadors from the US, Canada, the UK, Germany, Spain, the Netherlands, and South Korea — is sparking that sunshine with the launch of #TheCoconutChallenge dance as a way of sending out good vibes. For #TheCoconutChallenge, Francis remixes a classic Filipino pop tune, “The Coconut Song” (“Da Coconut Nut”) by Philippine National Artist Ryan Cayabyab, into “The Coconut Nut Malibu Remix,” giving the song a fresh and modern twist, making it popular again as the foundation of this season’s latest viral dance challenge. #TheCoconutChallenge is not just for show — it’s part of a bigger movement to help out businesses in need after the global COVID-19 pandemic affected them. Malibu has pledged an initial $150,000 to the National Urban League to support African American-owned businesses in the US, and also donated $1 for each #TheCoconutChallenge post from netizens in the US and Canada for a maximum contribution of $250,000. For more information, visit: www.maliburumdrinks.com/en/thecoconutchallenge and www.youtube.com/maliburum.

Asian-American rapper Blahza drops new single ‘Bandz’

LOS-ANGELES based Asian-American rapper Blahza releases his first solo single “Bandz” under Umami Records on Aug. 28 on all digital platforms worldwide. The latest single follows his previous collaborations with Singaporean electronic producer Xinister on “Break” and with Malaysian lo-fi producer OnlyM on “Perfect.” On the sparse, trap-influenced track, Blahza rhymes about hustling in life, minding your own business, and keeping your cool when the chips are down. “Bandz” is the lead single from Blahza’s upcoming EP, Sad Songs For Happy People, scheduled for release in 2021. Blahza also has several collaborations dropping later this year. Listen to Bandz via Umami Records: https://www.umamirecords.sg/bandz/

Miss S is the next HBO Original

WARNERMEDIA’S next HBO Asia Original series is Miss S, a 30-episode hour-long Chinese scripted drama and a format adaptation of the globally popular Miss Fisher’s Murder Mysteries. The series will premiere first and exclusively on the regional streaming service HBO GO later this year. The series, which is set in 1930s Shanghai, stars award-winning actress Ma Yili in the title role of Miss S, also known as Su Wenli, a beautiful and witty socialite who forms an unlikely duo with the righteous and serious inspector Luo Qiuheng played by Gao Weiguang. HBO GO is available via SKYCable and Cignal or at https://www.hbogoasia.com/.

Rico Blanco releases fun, upbeat single

ALTERNATIVE rock icon Rico Blanco spreads love and positivity amidst difficult times on his new single, “Happy Feelin,” which was released on Aug. 25, on all digital platforms worldwide. For his second release this year under Sony Music, the award-winning producer and singer-songwriter delivers a bright, upbeat number that soars with an inescapable chorus and a rockabilly vibe. “Happy Feelin” is the second song written and produced by Blanco in his home studio during the lockdown period. It’s the follow-up single to “This Too Shall Pass,” which was released in the first week of May. Stream Rico Blanco’s latest single at https://lnk.to/RB-HappyFeelin.

SSS, GSIS, PhilHealth expected to run budget deficits this year

THE two state pension funds and the public health insurer are expected to incur budget deficits until at least 2021, according to the Department of Budget and Management (DBM).

Citing estimates from the Finance department, the DBM reported the Social Security System (SSS), Government Service Insurance System (GSIS) and Philippine Health Insurance Corp. (PhilHealth) need to fill a combined budget hole of P84.84 billion this year, equivalent to 0.4% of gross domestic product.

The three organizations, which are government-owned and -controlled corporations (GOCCs), generated combined surpluses of P54 billion in 2019 and P63.25 billion in 2018.

The three GOCCs are also expected to post deficits next year, but narrower ones totalling P1.787 billion. No breakdown was provided.

Finance Assistant Secretary Maria Teresa S. Habitan said deficits are expected this year due to the “expected drop in the cash position” of SSS and PhilHeath.

“For SSS, this is a result of emergency measures to respond to the rise in unemployment because of COVID and increase in unemployment benefits. Maternity benefits will also increase because of the implementation of the Expanded Maternity Leave Law,” Ms. Habitan said in a text message Monday.

Unemployment surged to 17.7% in April at the height of the lockdown.

She added that PhilHealth’s cash position will decline because of “substantial benefit payments” for coronavirus disease 2019 (COVID-19)-related cases.

PhilHealth has said it will fall into deficit by year’s end because of lower contributions and additional payouts due to the coronavirus pandemic. It said it will remain in deficit until 2024.

“The situation is forecasted to improve in 2021 with economic recovery leading to higher employment generation that will improve the finances of SSS,” she said.

The national government subsidizes GOCCs to cover operational expenses not supported by their revenue.

Under the proposed P4.506-trillion budget for next year, the SSS and GSIS were not due to receive any subsidies from the national government, but PhilHealth has a P71.353-billion allocation, up 6%. — Beatrice M. Laforga