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Globe’s KapitWiFi technology bags two wins at 2020 APAC Stevie Awards

For its continuous efforts to innovate its products and services and make them more accessible to a broader market segment, Globe Telecom has again received international recognition as it bagged two Asia Pacific Stevie Awards in 2020 for KapitWiFi.

KapitWiFi, the newest and most affordable community WiFi service from Globe, received a Silver Stevie Award for Innovation in Technology Development and a Bronze Stevie Award for Innovation in Consumer Products & Services.

The service is designed to provide reliable at-home internet experience to underserved communities and transients in low-cost residential developments. Through KapitWiFi’s breakthrough technology, customers who are on a limited budget or allowance can choose from a variety of prepaid data packs that are well within their means.  They can likewise enjoy surfing without having to invest for an additional modem, or spend time in internet cafes.

WiFi access points are deployed in strategic locations within the communities to allow the customers to access KapitWiFi from their homes. To avail of the service, a customer simply has to connect their WiFi- enabled device, register their mobile number, and purchase a KapitWiFi data pack with their prepaid or postpaid load. Data packs start for as low as PhP15 for 1GB, valid for one day.

KapitWiFi made its big launch in Tacloban and Iloilo in 2019, enabling quality and secure internet connectivity to help transform target homes to a more digitally-capable and empowered community. The service since then was successfully deployed in a number of barangays and vertical sites nationwide, serving thousands of households and underserved families to date.

The vision for KapitWiFi today is to power the next 2 million users in collaboration with property developers, to provide fast and reliable internet. As of early this year, the service is available in select residential areas in Metro Manila, Cebu, Tacloban and Iloilo.

“KapitWiFi is one of our efforts to continue Globe’s commitment in bringing broadband services to more Filipinos across the country, especially those in communities beyond Metro Manila and commercial frontiers. In this new normal, Globe strives to empower more families and communities to recreate their world right at home through affordable, accessible and easy-to-use Internet connectivity,” shares Darius Delgado, Vice President and Head of Globe’s Broadband Business.

Recognized as the world’s premier business awards, the Stevie Awards was created back in 2002  to honor and generate public recognition for the achievement and positive contributions of organizations and working professionals worldwide. The roster of judges for the Asia Pacific Stevie Awards is composed of many of the world’s respected executives, entrepreneurs, innovators, and business educators.

Learn more about this story via https://www.globe.com.ph/about-us/newsroom

MultiSys launches SMS messaging platform TXTBOX.com

Recognizing the importance of information dissemination during this time of quarantine lockdowns and other restrictions, leading software solutions company Multisys Technologies Corporation launched a ‘plug and play’ SMS messaging platform called TXTBOX.com.

TXTBOX is a self-service SMS messaging platform developed by MultiSys to provide the public with the means to efficiently manage their SMS-based communications.

MultiSys has openly shared the sample integration source codes for PHP, Node, Python, Ruby, Go, jQuery, and cURL on the website so that IT companies and developers can easily integrate TXTBOX’s API to their own systems and applications.

System integrators can easily manage their account, buy credits, customize SMS templates, and request for SMS ‘masked’ senders, which will allow them to use TXTBOX for OTP generation, SMS blasting, business notifications, marketing and promotions.

The platform also comes with an online payment gateway so that users can conveniently top up their credits, anytime and anywhere.

MultiSys CEO and founder David Almirol, Jr. said, “Information dissemination is crucial, especially during this time when we are restricted from travelling or engaging in close physical contact. With TXTBOX, we can unleash the power of communication technology so we can continue with our work, push our advocacies, or even save lives. We anticipate that even beyond the period of this health crisis, this platform will help people cope with the ‘new normal’.”

Both public and private sectors will benefit from the platform, such as eCommerce and online retailers, companies with customer loyalty programs, financial services and remittance transfer provider, travel and transportation industries, insurance companies and HMO, advertising and marketing agencies, as well as government sectors, among others.

For more information, visit https://www.TXTBOX.com/ and https://www.multisyscorp.com/, or like @multisyscorp on Facebook.

Huawei unveils ICT certification program

Huawei, an information and communications technology (ICT) company, unveiled an ICT certification program open to both students and professionals in the industry.

The Huawei Asia Pacific ICT Certification Program, which covers 100 certification exams in 22 technical fields, addresses the gap between industry skills demand and talent supply. With the increasing interest in cloud computing, big data, the Internet of things, and artificial intelligence, the workforce must continue upskilling to catch up with the demands of the industry.

Aside from the certification program, Huawei has partnerships with educational institutions, including De La Salle University and Cebu Technological University in the Philippines, in offering ICT courses and training for its students. Since 2015, the Chinese tech company has been holding an annual competition to promote talent development among students around the world.

“As enterprises redefine their job requirements, this new ICT landscape will leave us with an estimated shortage of about five million professionals. We aim to globally develop two million ICT professionals over the next five years to match high demand for skilled workers,” said Michael MacDonald, chief digital officer and executive consultant of Huawei Asia Pacific, during the Huawei Asia Pacific ICT Talent Forum 2020 this August.

This year, Huawei plans to partner with more than 200 educational institutions and train 10,000 ICT certification students in the Asia Pacific region. “The ICT talent ecosystem is Huawei’s long-term strategy,” said Mr. MacDonald, who added that Huawei will work with universities and authorized training partners to help students and ICT practitioners become more competitive in their careers. 

The ICT certification program runs from August 4 to November 30. — Mariel Alison L. Aguinaldo

DTI pushes for looser virus curbs in capital

THE Department of Trade and Industry (DTI) wants looser movement restrictions in the capital region to enable more people to go to work, Trade Secretary Ramon M. Lopez said.

“Let those who want to work and healthy enough to work go to work,” the trade chief said in a virtual briefing with entrepreneurs on Monday. “That’s also what President Duterte wants,” Mr. Lopez said.

President Rodrigo R. Duterte will announce either an extension or easing of the restrictions before the tightened curbs implemented in Metro Manila and nearby provinces for 15 days lapse on Tuesday.

The Philippines has the worst coronavirus outbreak in Southeast Asia, with more than 161,000 cases as of Sunday. — Bloomberg

 

Coronavirus speeds up push for congestion charge in cities

BANGKOK — The coronavirus outbreak gives city authorities an opportunity to implement congestion pricing to curb traffic and pollution, urban experts said, even as the pandemic has forced Singapore to put its new satellite-based system on hold.

Congestion pricing, which charges private vehicles entering the city’s busiest areas, was first introduced in Singapore in 1975.

London, Milan, Oslo and Stockholm are among the cities that also have a charge, with New York City planning to introduce one from 2021. Dozens of other cities have signalled interest.

“There’s enough evidence that it is effective in curbing traffic, but it has been slow to take off because it is politically challenging to implement,” said Marion Terrill, director of the transport and cities program at the Grattan Institute think thank in Melbourne.

“The case is strong now in the light of COVID-19. Cities are repurposing their streets, and people don’t feel safe in public transit, so if governments do nothing to manage traffic, it would be a disaster,” she told the Thomson Reuters Foundation.

Drivers spent more time stuck in traffic in 2019 than in previous years, losing hundreds of hours due to congestion that costs countries billions of dollars, according to a study by transportation analytics firm INRIX Inc.

Congestion pricing—including variably priced lanes, tolls, and cordon charges—can limit private car use, shift more users to public transit, reduce air pollution and bring in revenue.

But those opposed say it is expensive to install, difficult to enforce beyond a small area, and that such a charge would force businesses to flee from the city center.

“If it were such a great solution, why have so few cities implemented it? It is simply not feasible for technical, political and economic reasons,” said Dinesh Mohan, an honorary professor at the Indian Institute of Technology Delhi.

“It is possible to reduce congestion through better street design and better traffic management, yet we keep floating congestion charge as the only solution, and that keeps us from thinking about other solutions,” he said.

RIGHT TIMING

During lockdowns to contain the pandemic, city authorities worldwide added more bicycle lanes, barred traffic from some streets, and allocated more space for walking.

Photo via Philstar/Michael Varcas

But with ride-hailing and delivery services already having increased gridlock in cities, and the growth of autonomous vehicles seen as exacerbating the problem, congestion pricing is a way to manage traffic better, said Ms. Terrill.

“Just the pure weight of urbanization makes it necessary, as you cannot keep building roads,” she said.

“The world has changed, and the timing is right for congestion pricing as a way to nudge people to consider other options than their car,” she said.

Singapore will be the first city to switch to a GPS-based pricing system that will provide more flexibility, with charges based on distance travelled, authorities have said.

It would also do away with 70-odd gantries which are more than two decades old, and take up precious land in the space-starved city, according to the Land Transport Authority (LTA).

There would be an 18-month switchover period, with the new system implemented progressively from 2020, and the government will bear the one-time cost of replacing in-vehicle units.

The timeline is now uncertain.

“LTA is assessing the impact of COVID-19 on the implementation timeline for the new Electronic Road Pricing (ERP) system and will provide an update in due course,” an LTA spokeswoman said.

In response to concerns about surveillance from the GPS system, the spokeswoman said that data will be anonymized.

“Safeguarding motorists’ privacy is a critical area of focus of the new ERP system. The new system will also have robust security and controls… that help to protect data privacy.”

NO OLD NORMAL

While surveillance is a concern, a satellite-based system is the most “desirable” for big cities, said Ms. Terrill.

“A cordon charge around the Central Business District is very effective, but there is also a lot of congestion outside the CBD,” she said.

“But with a satellite-based system, the information the government would have on you would be quite considerate, and it could be used for other purposes. It has the potential to be misused for surveillance,” she added.

In Sydney, an independent committee had recommended a cordon charge. Such a charge would increase speeds across Sydney and Melbourne road networks by about 1% and bring in modest revenue, according to research by the Grattan Institute.

That is a more viable alternative to proposed motorways that are forecast to increase network speeds by up to 3% and cost about $17 billion each, the research published last year showed.

New York will be the first US city to implement congestion pricing in 2021—although that timeline may be delayed. Chicago and Los Angeles have commissioned studies on such charges.

In India, cities such as Mumbai, Delhi and Bengaluru that see daily traffic snarls and increasing pollution could benefit from an ERP system, said Amruta Ponkshe, an associate fellow at the Observer Research Foundation, a think tank.

A nationwide digital vehicle database and a recently introduced electronic toll collection system can help cities introduce ERP systems, she added.

Authorities in Delhi have said they are planning a congestion charge.

“The coronavirus is changing how we work, and is forcing cities to make changes to mobility and public transport systems,” Ms. Ponkshe said.

“Congestion pricing will ensure that post-COVID, we don’t go back to the old normal of polluted and congested cities.” — Thomson Reuters Foundation

[B-Side Podcast] Looking for a job in a down market

The latest official labor data showed that the jobless rate shot up to double-digits, as millions of Filipinos became unemployed. The Philippine Statistics Agency reported that as of April 2020, there were around 7.3 million jobless Filipinos. 

Jobstreet, an online platform that has around 42,000 listings, saw two million visitors checking out their website from April to June.

If you’re looking for a job, forget those numbers. Career coach Caroline Ceniza-Levine says that the only numbers you should be concerned about are your own, whether in a pandemic or not. 

In this episode, Ms. Ceniza-Levine tells multimedia reporter Patricia B. Mirasol that the coronavirus is not the end of your career. She gives practical advice, from tips on how to handle online interviews to the two main skills that you have to be thinking about if you’re looking for a job.

Ms. Ceniza-Levine is a career coach, co-founder of career coaching and consulting company SixFigureStart, and senior contributor at Forbes Magazine. She is no stranger to the rigors of job-seeking and the vagaries of job markets, having worked more than two decades as a recruiter and career coach with professionals from Amazon, Google, McKinsey, and other leading firms.

Takeaways

There is always hiring—even in a down market.

As a job seeker, the only employment numbers that should matter to you are zero or a hundred percent. It’s either you’re employed or you’re not. Job market numbers tend to scare people. Focus instead on numbers that reflect your effectiveness: how much time are you spending on job research? How many callbacks are you receiving? Employers are still hiring, albeit more cautiously.

Negotiate and position yourself for the right roles at the right level. If you’re a good negotiator, employers will be excited to have you on their team because they will want you to negotiate as hard for them as you do for yourself.

Negotiation is a hyperlocal situation. While each case is different, a job seeker would, of course, prefer to negotiate in a hot market where employers are fighting over job applicants. 

Regardless of circumstances, there is always room to negotiate. The reality is that when you get a job offer you already have leverage. Your prospective employer’s already invested in you. Start negotiating and putting your best foot forward early in the process, but don’t talk numbers at the get-go; that’s presumptuous. Ask for more in a way that’s confident and polite. If you’re a good negotiator, employers will be excited to have you on their team because they will want you to negotiate as hard for them as you do for yourself.

Resilience and the ability to learn: these are the two skills a job seeker should have.

The ability to bounce back, coupled with an openness to change and a willingness to learn and relearn, are must-have skills, said Ms. Ceniza-Levine. It’s not just about the pandemic. We’re also dealing with pressing issues such as social justice and climate change, as well as rapid advancements in technology that are changing the way economies work. 


Recorded remotely on July 29. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Malaysia detects coronavirus strain that’s 10 times more infectious

Malaysia has detected a strain of the new coronavirus that’s been found to be 10 times more infectious.

The mutation called D614G was found in at least three of the 45 cases in a cluster that started from a restaurant owner returning from India and breaching his 14-day home quarantine. The man has since been sentenced to five months in prison and fined. The strain was also found in another cluster involving people returning from the Philippines.

The strain could mean that existing studies on vaccines may be incomplete or ineffective against the mutation, said Director-General of Health Noor Hisham Abdullah.

The mutation has become the predominant variant in Europe and the US, with the World Health Organization saying there’s no evidence the strain leads to a more severe disease. A paper published in Cell Press said the mutation is unlikely to have a major impact on the efficacy of vaccines currently being developed.

“People need to be wary and take greater precautions because this strain has now been found in Malaysia,” Noor Hisham wrote in a Facebook post on Sunday. “The people’s cooperation is very needed so that we can together break the chain of infection from any mutation.”

While Malaysia has largely managed to prevent a resurgence of the virus seen elsewhere in the world, the number of new cases found in the country has been picking up. The country confirmed 26 new cases on Saturday, the most since July 28, and added 25 cases on Sunday.

Nestlé local coffee buying up 27% as NESCAFÉ Plan helps increase yields, incomes of assisted farmers

Nestlé Philippines reaffirms its commitment to assist thousands of the country’s coffee farmers as its local buying of Robusta coffee beans for this crop year (2019-2020) increased by 27 percent over the previous crop year, higher than originally expected as local crop yields have been better than forecast.

As the biggest local manufacturer in the Philippine coffee industry, Nestlé produces its NESCAFÉ brand at its Cagayan de Oro factory.

Through the NESCAFÉ Plan, Nestlé is engaged in long-term efforts to create a positive impact on the lives of the country’s Robusta coffee farmers by improving their yields and incomes.

Local coffee procurement, consumption in support of coffee farmers

Last year, the company updated the criteria for its local procurement of coffee beans while preserving the quality of its NESCAFÉ brand. NESCAFÉ CLASSIC has one ingredient: green coffee. During its manufacturing process, only green coffee and water are used. With no additional ingredients, NESCAFÉ CLASSIC is 100 percent pure coffee.

Farmers selling coffee beans to Nestlé Philippines have said the new criteria are making it easier for them to sell their produce, and to provide greater volumes to the company. Processing time has been cut down, increasing frequency of delivery. The workload of farmers likewise has been reduced, particularly in harvesting, drying, and sorting produce.

According to Nestlé Philippines Chairman and CEO Kais Marzouki, the company is constantly pursuing efforts to support Filipino coffee farmers who are in need of assistance from various stakeholders, especially consumers. He emphasized that when consumers buy locally manufactured products with raw materials grown in the country, they are in fact helping Filipino coffee farmers.

NESCAFÉ Plan focuses on helping coffee farmers

Driven by a flagship education and training initiative of the NESCAFÉ Plan called Project Coffee+, the yields and incomes of 1,500 beneficiary farmers in Bukidnon and Sultan Kudarat have increased. On average, production by participating farmers has doubled, while incomes have tripled, as independently verified by the Rainforest Alliance.

Nestlé has been supporting Filipino farmers since 2008, providing various forms of technical assistance and trainingonNESCAFÉ Better Farming Practices including Coffee Production Technology Training and modules from the global Common Code for the Coffee Community (4C). The company has trained an average of 7,000Filipino farmers per year since 2012.

“With NESCAFÉ as the biggest domestically produced coffee brand in the Philippines, we are buying as much coffee as we can locally, and are increasing our direct purchasing from farmers and cooperatives. As we help generate livelihood opportunities, we offer a ready market for Robusta coffee farmersbased on world market prices.

“Through all kinds of times, especially during this COVID-19 pandemic, we stand in solidarity with Filipino coffee farmers. We look forward to continuing our partnership with them to uplift lives while improving coffee production in the country, in close cooperation with other stakeholders in the public and private sectors,” Mr. Marzouki said.

Under its Kasambuhay ng Pamilyang Pilipino program which has reached out to one million families impacted by the pandemic, Nestlé Philippines provided Kasambuhay Kits consisting of Nestlé products to 10,000 coffee farmers in Bukidnon and Sultan Kudarat.

 

Analysts’ expectations on policy rates (Aug. 20)

THE central bank will likely keep its key policy rate untouched at its policy review on Thursday, a majority of economists polled by BusinessWorld said. Read the full story.

Analysts’ expectations on policy rates (Aug. 2020)

BSP seen to leave key rate untouched

THE central bank will likely keep its key policy rate untouched at its policy review on Thursday, a majority of economists polled by BusinessWorld said.

Eleven out of 16 economists in the poll expect the Bangko Sentral ng Pilipinas (BSP) to keep its benchmark interest rate steady at the Monetary Board’s fourth policy-setting review this year.

Analysts cited recent signals of a likely pause in easing from BSP Governor Benjamin E. Diokno.

Analysts’ expectations on policy rates (Aug. 2020)

“Steady policy rates in the meantime. This is because the BSP will be inclined to let the last 50 bps (basis point) cut to settle into the system due to lag effects of monetary policy,” Security Bank Corp. Chief Economist Robert Dan J. Roces said, referring to the easing done by the Monetary Board in its June 25 meeting.

Mr. Diokno last week said they are not inclined to move sooner on further cuts as the previous ones appear to have not been digested by the market yet. He said the current monetary policy stance may possibly be maintained for the next few quarters, given the initial moves were in anticipation of the scope of the crisis.

The central bank this year has already shaved rates by 175 bps, reducing the overnight reverse repurchase, lending, and deposit rates to record lows of 2.25%, 2.75%, and 1.75%, respectively. The latest easing was fired off on June 25, when the Monetary Board cut rates by 50 bps.

With the record-low overnight reverse repurchase facility at 2.25% and the July inflation of 2.7% leaving the country under a negative real interest rate environment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said it has become “fundamentally tougher to further cut local policy rates at the moment.”

The direction of the coronavirus disease 2019 (COVID-19) pandemic and its impact on the economy remains the crucial factor for the BSP’s decision this week, said Suhaimi Bin Ilias, chief economist at Maybank Investment Bank.

“We think BSP is also keeping some dry powder for future downside risk to the economy rather than firing all bullets in its arsenal now. At this juncture, public health policy measures are more crucial to contain COVID-19 and help in the lockdown decision,” he said.

The Monetary Board has three more policy-setting meetings left this year, all in the fourth quarter — Oct. 1,  Nov. 19, and Dec. 17.

The country plunged into a recession after gross domestic product (GDP) shrank by 16.5% in the second quarter, as the coronavirus pandemic and subsequent lockdowns hampered economic activity.

The government now expects full-year GDP to contract by 5.5%.

Meanwhile, five analysts are betting on a rate cut of around 25-50 bps at this Thursday’s meeting, due to the lag in fiscal response and the wider GDP contraction in the second quarter.

“Despite comments from the BSP governor to the contrary, we expect the central bank to do more to support growth at its meeting this Thursday… Fiscal support has so far been lackluster,” said Alex Holmes, economist at Capital Economics.

Mr. Holmes is expecting a 50-bp cut that will reduce the key policy rate to 1.75%.

The Bayanihan II bill is still being finalized by the  Bicameral Conference Committee, which agreed on Friday to allocate P162 billion in funding for the stimulus measure.

A larger P1.3-trillion stimulus measure under the ARISE (Accelerated Recovery and Investments Stimulus for the Economy) bill is still pending at the Senate, but economic managers have said it cannot be funded without new sources of revenue.

Makoto Tsuchiya, economist at Oxford Economics, said the still benign inflation environment also provides a “favorable environment for the BSP to keep monetary policy accommodative.”

“Barring an unexpected shock to inflation, the BSP is likely to loosen monetary policy further through both RRR (reserve requirement ratio) and policy rate cuts in order to provide more support to the economy,” he said, adding the RRR cut will be tricker to predict, given ample liquidity in the system.

The Monetary Board is authorized to reduce RRR by up to 400 bps this year. It has already slashed reserve requirements for big banks by 200 bps in April to 12% and by 100 bps for smaller lenders that brought down RRR for thrift and rural lenders to three percent and two percent, respectively, in July. — Luz Wendy T. Noble

Shorter loan payment moratorium pushed

LAWMAKERS are being urged to further shorten the proposed grace period on loan payments to 45 days, after the Bicameral Conference Committee working on the Bayanihan to Recover as One Act (Bayanihan II) bill agreed to cap it at 60 days.

Finance Secretary Carlos G. Dominguez III told reporters via Viber that a “maximum of 45 days (grace period) is better.”

For Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno, the two-month debt moratorium under the Bayanihan II is “a second best solution to a complex issue.”

“The first best option is not to mandate a one-size-fits-all moratorium. Leave to the banks the discretion to deal with the individual debtor, with the promise of some relief from BSP,” he told BusinessWorld in a text message on Sunday.

The central bank chief last week warned a one-year debt moratorium under the House version of the Bayanihan II will severely impact the banking industry in terms of liquidity.

“I’ll ask the BSP staff to do a stress test to have an informed analysis of the consequences of the compromise version,” Mr. Diokno said on Sunday.

The office of Senator Juan Edgardo M. Angara said the 60-day grace period approved by the joint panel on Friday “will cover everything, including credit card bills.”

Business groups were pushing for the Senate version of Bayanihan II, which provides for a 30-day grace period for loan payments.

Management Association of the Philippines (MAP) President Francisco “Francis” E. Lim said the 60-day grace period on loan payments is “a good compromise… provided that it is a one-time and non-extendible payment moratorium.”

Mr. Lim said the moratorium should not include payments to insurance and pre-need companies as this could hinder their ability to service claims amid the pandemic.

Chamber of Thrift Banks Executive Director Suzanne I. Felix said the industry will abide by the Bayanihan II’s provision on a loan moratorium.

“The option lies with the borrower to either repay the loan during this moratorium as per the actual due dates or avail the benefit of the moratorium,” she said in an e-mailed response to BusinessWorld.

On Friday, the Bankers Association of the Philippines (BAP) said it supports a 30-day grace period for areas under an enhanced community quarantine (ECQ) and modified ECQ. Metro Manila and nearby provinces are currently under MECQ until Aug. 18.

The Bicameral Conference Committee is currently working to reconcile the House and Senate versions of the Bayanihan II, which forms part of the overall stimulus plan to recover from the crisis brought by the coronavirus disease 2019 (COVID-19) .

FUNDING
Meanwhile, the Senate agreed to raise the funding allocation under Bayanihan II to P162 billion, following the House’s version.

Nagkakasundo ang dalawang panig na siguro aabot tayo sa P162 billion. Pumapayag ang Senado na itaas ang total budget ng Bayanihan II sa P162 billion  (Both sides agreed that we might need up to P162 billion. The Senate is amenable to increase the total budget of the Bayanihan II to P162 billion),” Senate Minority Leader Franlin M. Drilon said in a radio interview.

In its version, the Senate provided for a P140-billion standby fund, consistent with the Department of Finance’s stimulus plan.

Mr. Drilon, who is part of the bicameral panel, said they have agreed to allocate P10 billion for COVID-19 polymerase chain reaction testing, P15 billion for a cash-for-work program, and P17 billion for employees in affected small businesses.

Another P17 billion will be allocated to help the agriculture sector, and P10 billion each for transportation and tourism. Mr. Drilon said the panel has yet to settle whether the tourism assistance will go to infrastructure or as direct aid to businesses.

Meanwhile, the final version of the proposed Bayanihan II will determine if there is a need for the House to pass other measures for the banking industry.

The House version of Bayanihan II, in particular, incorporated key features of the bills on Financial Institution Strategic Transfer (FIST) and Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE).

Kung maipasa sa Bayanihan, hindi na ’yan i-endorse (If passed under the Bayanihan, it will no longer be endorsed),” Quirino Rep. Junie E. Cua, who chairs the House Committee on Banks and Financial Intermediaries, said over the telephone on Sunday.

Mr. Cua, who is also a member of the bicameral panel, noted that if the joint panel decides against adopting these provisions under the Bayanihan II, then the pending FIST and GUIDE bills will be revived.

The GUIDE bill is awaiting plenary sponsorship after hurdling the House Committees on Banks, Ways and Means and Defeat COVID-19. The FIST bill, meanwhile, has already been approved by the House.

The FIST bill will allow banks to transfer bad loans to asset management companies, intended to unburden the banking system and encourage lending activities.

The GUIDE bill will increase the maximum loan guarantee coverage per borrower to benefit micro, small and medium enterprises affected by the pandemic.

The Senate version of the two bills are pending at the committee level. — Luz Wendy T. Noble, Beatrice M. Laforga and Charmaine A. Tadalan

Domestic trade of goods plunges in Q1 — PSA

DOMESTIC TRADE showed a steep decline in the first three months of 2020. — PHILIPPINE STAR/ EDD GUMBAN

By Michelle Anne P. Soliman

DOMESTIC TRADE sharply fell in the first quarter, the Philippine Statistics Authority (PSA) reported.

According to preliminary data, the total value of domestic trade declined by 42.7% to P125.31 billion in the three months of 2020 from P218.53 billion a year earlier.

In terms of volume, domestic trade stood at 4.38 million tons, 33.9% less than the 6.62 million tons registered in the same period last year.

Machinery and transport equipment accounted for 35.9% of total value, down 32% year on year at P44.94 billion.

Meanwhile, food and live animals accounted for 36.6% of domestic volume, and increased by 11.6% to 1.60 million tons. Despite this, its value dropped by 42.6% to P29.62 billion.

Double-digit declines in value were also posted by six other commodity groups led by miscellaneous manufactured articles (-70.4%); beverages and tobacco (-61.2%); and chemical and related products not elsewhere classified in the Philippine Standard Commodity Classification (PSCC, -54.1%).

Commodities and transactions “not elsewhere classified in the PSCC” registered a 9.4% decline in trade value.

Western Visayas was the top source of commodities with outflows amounting to P27.92 billion. It recorded a domestic trade surplus of P9.27 billion during the quarter.

Meanwhile, Northern Mindanao was the top destination of commodities with total inflows reaching P36.38 billion, bringing the region’s domestic trade deficit to P24.84 billion in the three months to March.

“The… year-on-year decline in the volume… and value of domestic trade in the first quarter of 2020 may be largely attributed to the supply chain disruptions locally and with the rest of the world at the height of unprecedented lockdowns since the final two weeks of the first quarter which resulted in the sharp reduction in economic activities,” said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in an e-mail.

Global supply chains were disrupted by the coronavirus pandemic in the first quarter. In the Philippines, the government placed Luzon under a strict lockdown in an effort to curb the spread of the virus.

Mr. Ricafort said domestic trade may have likely performed worse in the second quarter given the grim economic data released for the period such as factory output, international trade, remittances, and the gross domestic product.

“[T]he worst in domestic trade may have also been posted in [the second quarter] as consistent with the other economic data,” he said.

The economist said domestic trade may pick up in the second half due to loosening lockdowns in many areas. However, he noted the stricter “modified enhanced community quarantine (MECQ)” that were reimposed in Metro Manila and nearby areas this month “could lead to some soft patch” in domestic trade.

“The expected easing (of lockdowns in) Metro Manila and in nearby areas would result in further reopening of the economy and would lead to better prospects of economic recovery/pick up in the coming months, including domestic trade,” Mr. Ricafort said.

Metro Manila and nearby provinces remain under MECQ until Aug. 18. President Rodrigo R. Duterte is expected to announce the new community quarantine classification for Metro Manila on Monday.