Home Blog Page 7873

Metro Manila’s parol capital Las Piñas celebrates 15th Parol Festival

The bamboo tree is known for being resilient. It sways with the breeze and bends when a storm comes, but it doesn’t break and remains standing tall even with the strongest wind. This particular trait makes bamboo stand out.

Amid the pandemic and natural disasters, the bamboo symbolizes Filipinos’ resiliency.

 

Home of bamboos

Las Piñas City, NCR’s Parol Capital, is home to three generations of parol makers who use bamboo frames. Bamboos may have grown abundantly in the area long before, as it is home to the world-famous Bamboo Organ built-in 1824.

In 2006, when Sen. Cynthia Villar was still the representative of Las Piñas, she started the Parol Festival.

Villar SIPAG Chairman Manny Villar and Managing Director Senator Cynthia Villar

She helped organize the parol makers by launching the Samahang Magpaparol ng Las Piñas. She assisted them in setting up the Las Piñas Parol Center. The center served as a training area where new designs and packaging techniques were explored with the help of the Department of Trade and Industry technical personnel.

Villar also helped plant bamboos along the Las Piñas-Zapote River to bring back greenery in the riverbanks, prevent soil erosion, and provide parol makers a regular source of the material.

Bamboo festival

This year, Las Piñas Festival welcomed 14 entries to its 15th annual lantern-making competition.

Bryan Flores bagged the first prize, winning P20,000, while Glecy Dela Cruz won second prize, taking home P15,000. Fercival Santos ranked third, winning P10,000.

Graphic designer and event stylist Celestine Danielle Contreras, indigenous gown maker and hair and makeup artist Paul Catapia, and designer Karim Atudillo were this year’s judges.

The winners were judged according to ingenuity and resourcefulness, 30 percent; creativity, 25 percent; impact, 30 percent; and technical skills, 15 percent. The contestants used scrap or recycled materials and natural or indigenous materials. Bamboo, meanwhile, was utilized as the main material for the lantern frames.

The parols were evaluated last Dec. 10. They are now on display in Villar SIPAG HQ along C5 Extension in Las Piñas City.

 

 

Virtualahan partners with LGUs to socially franchise their impact formula 

ByCisco Patricia Mirasol 

Virtualahan, a virtual school with a mission to break down employment barriers for persons with disabilities (PWDs) and other excluded communities experiencing discrimination, is partnering with the Department of Information and Communications Technology and local government units (LGUs) to socially franchise their impact formula.

“Our goal is to replicate,” said founder Ryan Gervasa. “Instead of Virtualahan training thousands of people, we can better amplify our impact via social franchising.”

Virtualahan developed an impact formula that incorporates life coaching, skills upgrade, apprenticeship, job coaching, and advocacy in their program. By replicating the formula and its methods in LGUs, it aims to empower talents who would not have otherwise contributed to the economy.

“[We only ask LGUs to reach this] one goal: to produce 100 graduates a year. It’s not too much to ask. If each LGU produces 100 a year and if we have 100 LGUs, that’s 10,000 talents per year – 10,000 talents who would not have otherwise contributed to the economy. In 10 years, that’s 100,000 people you lift out of poverty and empower to take ownership of their lives,” said Mr. Gervasa. “That’s our bigger vision. Once we reach that vision, Virtualahan can go out of business. We are no longer needed in the picture.”

There are 318,747 PWD registered voters according to 2016 data from the Commission on Elections. The Implementing Rules and Regulations of Republic Act No. 10524 require that government agencies reserve at least 1% of their regular and non-regular positions for PWDs. Private corporations that hire PWDs are entitled to certain incentives, including a 25% additional deduction from the private corporation’s gross income of the total amount paid as salaries and wages to PWDs.

An asset, not an accessory

Mr. Gervasa — who this year became the first Filipino to have been nominated for the Global Citizen Prize: Cisco Youth Leadership Award — created the social enterprise in 2015 out of necessity. After overcoming poverty and completing a degree, he discovered that his incurable medical diagnosis excluded him from jobs he was otherwise qualified for.

“Because no company decided to employ me, I decided to employ myself,” he told BusinessWorld in an interview. “Our outdated labor practice still requires applicants to get a medical certificate for an entry-level job. Another reason leading to the unemployment of PWDs and other excluded groups is their lack of skills to qualify for a job.”

The aim of the social enterprise is to address the root causes behind workplace exclusion through skills training and employment support. Specific courses on digital marketing, project management, website development and design, sales and marketing, and customer service equip graduates with the skills that companies are hiring for. Fundamental skills such as critical thinking and problem solving are also taught before students move on to more specific skill sets.

“I think the strongest life skills we provide is through our life coaching program with an in-house psychologist. We intentionally designed it using a self-determination approach,” said Mr. Gervasa. The purpose of the sessions is to help students move away from the victim mindset and learn more about emotional resilience and the psychology behind oppression. “If you do not help facilitate the healing process for them, they cannot thrive in the workplace. It will just be another cycle of training and support without sustainability, because there isn’t any holistic transformation.”

Some of Virtualahan’s other plans in the pipeline include bringing their impact formula to the United Arab Emirates, where it will start running its next cohort in 2021, as well as expanding its impact to areas of conflict in the Middle East.

“[I would like to extend] an invitation for people in decision-making roles to rethink how we see work and the value of diversity and inclusion,” said Mr. Gervasa. “Employing PWDs transforms an organization. Make them an asset versus an accessory.” He added that better institutional support is also needed so PWDs, solo parents, former sex workers, recovering drug addicts, people in jail, out-of-school youths, indigenous peoples, and other excluded communities are no longer left behind.

Philippines bans British travelers on new virus strain

The Philippines on Wednesday banned inbound flights from the United Kingdom effective Dec. 24 until year-end after a rapidly spreading coronavirus strain caused cases to soar there.

“All passengers who have been in the UK within 14 days immediately preceding arrival to the Philippines, including those merely in transit, are also temporarily restricted from entering the country for the same period,” presidential spokesman Harry L. Roque said in a statement.

Outbound travel to the UK would be allowed subject to existing exit guidelines, he added.

Passengers already in transit from the UK who arrive before 12:01 a.m. on Dec. 24 would be allowed to enter the Philippines, subject to quarantine and testing, Mr. Roque said.

Europe has closed its doors to British travelers after the UK tightened its COVID-19 restrictions for London and nearby areas, and reversed plans to relax restrictions during the Christmas holiday.

Europe last week became the first region in the world to exceed 500,000 deaths from the coronavirus since the pandemic started a year ago.

Scientists first discovered the new strain, which they said is 70% more infections, in a patient in September.

The coronavirus has sickened 78.4 million and killed 1.7 million people worldwide since the outbreak emerged in China in December last year, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 55.1 million people have recovered, it said. — Gillian M. Cortez

Here’s how everyone partied together in the same location at Heineken’s 5-Star Christmas Party without being physically together

And it wasn’t through a video call

Christmas. A season that’s supposed to be filled with parties and festivities is suddenly less merry this time around. Gone are the over-the-top Christmas parties, the large gatherings, and even the intimate reunions with your friends. While holiday celebrations this year may not be traditional, there are surely other ways to do it.

On December 18, Heineken hosted a virtual party by treating guests with a 5-Star Christmas Package complete with items that upgraded their Christmas celebration at home into a 5-star party. In a way, Heineken brought the party to their guests by delivering these packages straight to their homes. Inside were five bottles of the limited edition Heineken Magnum 1.5L premium quality beer, made especially to share with others. Bar chow from Verde was delivered fresh, on the same day to enjoy with Heineken.

To complete the party-at-home vibes, festive fairy lights and sparkly balloons were also included in the package.

For the virtual event, Heineken also collaborated with the most sought-after DJs to create party playlists for the 5-Star event. This includes curated music from DJ Carlo Atendido for Top 40s, DJ Tolo Marvelous for Hip-hop, and DJ Samantha Nicole for House.

Some of the guests were YouTube star Rei Germar, TV actors David Licauco and Dominique Roque, social media influencer Kerwin King, and power couple models Christi McGarry and Eduardo Lara. 10 randomly-selected giveaway winners joined the festivities as well. Here’s what’s clever! The party was only held in the same Instagram location: Heineken. This made it possible for Heineken to bring everyone together while all were apart. Check out #Heineken5StarParty on Instagram and you’ll see how everyone celebrated the 5-Star Christmas Party at home.

 

View this post on Instagram

 

A post shared by Kerwin King (@kerwinking)

 

View this post on Instagram

 

A post shared by Christi McGarry (@christi.mcgarry)

 

 

View this post on Instagram

 

A post shared by Rei Germar (@reigermar)

Although the 5-Star Christmas Party is over, the celebration doesn’t stop there. You can upgrade your Christmas party at home into 5-stars with the limited-edition Heineken Magnum 1.5L bottle. Order yours now at Drinkies.ph and get it delivered within 60 minutes (within Metro Manila only). Use the code: DRINKIESFIRST to get P250 off on your first order with a minimum purchase of P1,500. Get one for yourself and for your family or friends, too! These champagne-like bottles are not only made for sharing but also for gifting, no wrappers needed. Now you and your family or friends can upgrade your Christmas celebration with premium quality beer from Heineken. Cheers!

Heineken Magnum 1.5L is also available in supermarkets. To learn more, visit: https://bit.ly/34CIdr0

#HeinekenPH #SocializeResponsibly#Heineken5StarParty


Spotlight is BusinessWorld’s new sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

First virtual education platform for surgical skills training launched

By Patricia Mirasol

Johnson & Johnson Philippines, Inc. (J&J) collaborated with the Philippine Obstetrical and Gynecological Society (POGS-NCR) and the Philippine Society of General Surgeons (PSGS Metro Manila and Central Luzon Chapters) to launch the country’s 1st Online Learning Continuum on Basic Surgical Skills Training. The pilot program, designed to develop resident doctors’ proficiency in basic surgical skills, began in October this year and will run until December 2021.

“This was formed specifically to address the concern of continuing education for first to third year surgical residents (doctors who are undergoing their specialization training), given the physical limitations of the global pandemic,” said Dr. Erwin Benedicto, J&J head of medical affairs, in an interview with BusinessWorld.

The training program consists of a fundamental module available on the official J&J platform, complemented with a pre-test video demonstrating surgical skill fundamentals as well as an overview of the technical knowledge needed for these, plus virtual workshops hosted on Zoom. Topics are chosen based on the courses and skill sets needed by surgeons to be certified as professionals in their specialized field. Seasoned proctors and surgeons from POGS-NCR and PSGS facilitate the practical tests and lectures.

Resident doctors who are members of POGS-NCR and PSGS can avail of the training under this program for free. Enrollees are sent all the necessary materials (such as a knot-tying board, skin pads, a fascie abdominal trainer, surgical instruments, and sutures) for their practical tests, courtesy of J&J. Grades will be based on test results from the modules and the evaluation of one’s skill set performance during the workshops.

The course is on-demand and can be completed at an individual’s own pace. Dr. Benedicto said that in the first three months of the program’s run, participants were able to finish five modules in one month on average. “Upon completion of all the modules, they will be issued certificates that will earn them points to graduate from their residency program,” he said.

The program has since been deployed in 87 training hospitals within the National Capital Region and Central Luzon. These initial partner hospitals – including UERM Memorial Hospital, UST Hospital, and Jose B. Lingad Hospital – are also the hospitals that the program’s faculty and enrollees practice in.

“We are currently focused on finishing up our program’s roll-out until next year,” added Dr. Benedicto, “but we are not closing the doors on opportunities to expand the reach of this program to more surgical residents across the country.”

“In the first few months of our roll-out of the program, feedback has been quite positive,” noted Dr. Benedicto. “Many have said that the program has been quite enriching and that the modules became a great tool in elevating their technical knowledge, particularly on the basics and optimal wound closure. Although there’s been some challenges, we were able to turn them into great opportunities for furthering our advocacy and purpose, as a healthcare company.”

Police IAS vows swift resolution of case vs cop in Tarlac shooting

THE INTERNAL Affairs Service (IAS) of the Philippine National Police (PNP) vowed swift action against the policeman who shot dead his neighbors, a mother and her son, in Paniqui, Tarlac on Sunday.

IAS Inspector General Alfegar M. Triambulo said in a text message that he has directed investigators to work overtime to immediately complete the probe on the incident, which was recorded on video and went viral on social media.

The suspect, Staff Sgt. Jonel Nuezca, shot Sonya Rufino Gregorio and her son Frank Anthony following an altercation over a native noisemaker used during New Year’s eve.

Mr. Triambulo said they want the case resolved quickly as Mr. Nuezca continues to receive his salary while he is still in the service.

“Lugi din po ‘yung gobyerno kasi siya ay sumasahod dahil meron tayo sa batas na (The government is on the losing end since he continues to receive his salary as we have a law of) presumption of innocence until it is proven guilty,” he said.

He added that they expect a quick resolution of the case given the video evidence.

President Rodrigo R. Duterte, meanwhile, condemned the killing and warned the police to enforce the law or “you will have hell to pay.”

Mr. Nuezca has been indicted for two counts of murder and currently in detention.

“He should not be allowed to go out because that’s a serious offense. There’s no bail,” Mr. Duterte said in his televised address Monday evening.

Palace Spokesperson Harry L. Roque, in a press briefing on Tuesday, said the fault of one police officer affects the reputation of the whole force.

“It takes only one, one of you to destroy the reputation and integrity of the institution,” he said.

On the other hand, Philippine National Police Spokesperson Ildebrandi N. Usana, in a separate briefing on Tuesday, called the incident an “isolated one” citing that most of their 221,000 personnel show no records of wrongdoings.

“We are 221,000 strong members and those who commit violations do not reach even 5%,” he said. — Gillian M. Cortez and Emmanuel Tupas/PHILSTAR

BSP to keep rates low until end-2022

THE CENTRAL BANK is committed to keeping interest rates low until the end of 2022 to provide support for the economy as it recovers from the pandemic, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Tuesday.

In an interview with Bloomberg Television, Mr. Diokno said the central bank continues to have “monetary space” available, even after implementing a cumulative 200-basis point (bp) reduction in policy rates this year.

“We made the policy decision that we will keep rates at this level until the economy has fully recovered, until the economy has recovered to its previous level of maybe 6.5 to 7.5% [growth], and unemployment is down to 5% range,” Mr. Diokno said

“We plan to keep this low interest rate for long, maybe at the end of 2022,” he added.

Mr. Diokno stressed that an accommodative monetary policy paired with fiscal policy “should quicken the economy’s transition towards a sustainable recovery”.

To provide support to the economy heavily battered by the coronavirus pandemic, the BSP has cut overnight reverse repurchase, lending, and deposit facilities to record lows of 2%, 2.5%, and 1.5%, respectively. Given inflation is already at 3.3% as of November, the country is already experiencing a negative real interest rate environment.

However, Mr. Diokno assured that this “unconventional negative interest rate regime” will not be the case “for so long”.

“That’s not part of our policy framework,” he added.

Mr. Diokno said the central bank still has room for further monetary easing amid a benign inflation environment (within the government’s 2-4% target range) until 2024. The Monetary Board left policy rates unchanged at its Dec. 17 meeting.

He is also bullish that the economy will recover starting the first quarter of 2021.

“We’re not at the end of the line but I think this is the time for another pause because after all, we have been very aggressive,” Mr. Diokno said.

Analysts said the latest signal from Mr. Diokno is meant to provide assurance that the central bank will remain supportive of growth measures through an accommodative stance.

“Policy transmission takes a while to permeate into the financial system, and with confidence beginning to turn positive, these need to be nudged further by the central bank by remaining accommodative to spur investments,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a text message.

“The economic scarring from this year has been deep, and we still face uncertainties, so the onus is to prop-up confidence while looking to execute an expansionary monetary policy,” he added.

The economy slumped by 11.5% in the third quarter, bringing the gross domestic product (GDP) performance to a 10% contraction in the first nine months.

This year, the government expects the GDP to drop by 8.5-9.5% before growing by 6.5-7.5% in 2021.

For Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort, keeping the policy rates low will boost credit growth.

“Near record low interest rates will spur greater demand for loans, thereby stimulating more investments, all resulting in increased economic activities,” he said in a text message.

Lending remained tepid in October as growth stood at 1.9%, the slowest since the same print was seen in September 2006. This, as banks tightened their credit standards and borrowers’ confidence remained low amid the crisis.

The Monetary Board’s first policy setting meeting is set on Feb. 11. — Luz Wendy T. Noble

Philippines faces delivery nightmare for super-cooled coronavirus vaccines

By Arjay L. Balinbin, Senior Reporter

YASMIRA P. MONER, a 34-year-old resident of Linamon town, Lanao del Norte in southern Philippines, is eager to get a coronavirus vaccine shot because of the hassle she has to go through every time she comes home from Iligan City, where she works as a university lecturer.

“I have to queue at the local health office to get a medical certificate,” she said by telephone. “Before that, I also need to get a village clearance. I’m worried that I might get the virus there.”

BW Bullseye 2020-focusGetting a coronavirus vaccine from manufacturing sites to remote areas of a developing country such as the Philippines will be a big challenge given the need to store some vials at temperatures of as low as minus 80 degrees Celsius.

Pfizer, Inc., Moderna, Inc. and AstraZeneca Plc have started manufacturing their COVID-19 vaccines. Pfizer said it would have enough to vaccinate 25 million people this year, while Moderna will have enough for 10 million people. AstraZeneca has said it could make vaccines for more than 100 million people this year.

The US Department of Defense and the Centers for Disease Control and Prevention (CDC) will manage distribution in the United States that is likely to start in mid-December, with an initial release of 6.4 million doses.

The UK is expected to roll out vaccines in December, while in Europe, each country in the 27-member bloc will decide on their vaccination plans.

In the Philippines, the private sector, government and AstraZeneca signed a deal last month for the purchase of 2.6 million doses of the coronavirus vaccine, which is expected to be delivered by June.

Local vaccine czar Carlito G. Galvez, Jr. last week said the government was expecting to finalize a deal with Chinese drug maker Sinovac Biotech for the purchase of 25 million doses of its vaccine for distribution in March.

Sinovac is the government’s top pick for vaccine orders for its mass immunization program that will start next year. The government seeks to immunize 20 million Filipinos yearly in the next three years.

Aside from Sinovac, at least three more drug makers have applied for clinical trials in the country, including Russia’s Gamaleya Research Institute of Epidemiology and Microbiology, Janssen Pharmaceutical Companies of Johnson & Johnson, and Clover Biopharmaceuticals, another Chinese company.

The government and Serum Institute of India Ptv. Ltd. are also in talks for the supply of 30 million doses of coronavirus vaccine Covovax.

Before the vaccine could reach any areas in the Philippines, the government must ensure that it has the facilities and manpower for the distribution.

“We need to know the type of vaccines that we will be procuring so that we know what kind of logistics we will have to prepare,” Health Undersecretary Maria Rosario S. Vergeire said by telephone.

She said the government already has freezers for vaccines that can be stored at refrigerator temperatures of 2 to 8 degrees Celsius.

Some private partners can convert their existing freezers to accommodate vaccines that require minus 20 Celsius, Ms. Vergeire said.

Two private suppliers have also committed to set up freezers for vaccines that require temperatures of negative 70 to negative 80 Celsius, she added.

LOGISTIC PLANS
Zuellig Pharma, a pharmaceutical distributor, said it’s beefing up its storage capacity nationwide. The company said its facilities can handle vaccines with different temperature requirements.

“From warehouses all the way to delivery where the vaccine is needed, we can meet the quality requirements of a client,” Zuellig Pharma Chief Business Officer Jannette Jakosalem said in a phone interview.

She said the company, which has warehouses in the cities of Parañaque, Santa Rosa, Cebu and Davao, might partner with Air21, 2GO and other third-party truckers to transport the vaccines.

The company will ensure that temperature requirements are met while the vaccines, which will be stored in special boxes, are in transit, Ms. Jakosalem said.

Special coolers can maintain temperatures of minus 80 to 8 degrees Celsius using the right mix of either ice gels or dry ice or both. There will also be temperature monitoring devices inside the boxes.

“If the manufacturer says 2 to 8 degrees, you cannot go lower or higher,” Ms. Jakosalem said. “You have to be just within the required temperature.”

She added that transporting vaccines is a very risky task because they could have a different effect on people if mishandled. “Western vaccine manufacturers are very particular about the supplier, warehousing and delivery because a vaccine that turns sour could hurt their reputation,” she added.

DHL is in talks with both private and public organizations in the Philippines on logistics support, Leonora Lim, vice-president of Life Science and Healthcare, DHL Customer Solutions and Innovation, Asia Pacific, said in an e-mail.

“We are looking both internally and externally on what we have and what we need to meet the challenges of vaccine distribution,” she said. “We are leveraging over 20 years of experience and the expertise of our 9,000-strong life sciences and healthcare community.”

UPS Philippines is also looking at how it can help deliver the coronavirus vaccines once these become available locally, Managing Director Chris Buono said.

“There’s definitely going to be a space for many firms to be involved because we are talking about the population of the entire country that’s going to need this,” he said via Zoom Cloud Meetings. “It’s not about competition, it’s not about who gets it first, it’s about ensuring the right thing for humanity.”

Freight forwarder Airspeed International Corp. is studying both transportation and storage requirements of the vaccine, General Manager Mariz C. Regis said.

“We have been handling vaccines for several years — both in international and domestic movements,” she said in an e-mailed reply to questions. “We can immediately implement and adapt to the handling requirements of the vaccine and of the companies,” she added.

‘TEDIOUS’
Truck body builder Centro Manufacturing Corp. said in a social media post recently that it was planning to build freezer vans designed for the coronavirus vaccine.

Having different types of coronavirus vaccines with varying temperature requirements would be “tedious” for the government given the logistical challenges, Ms. Vergeire said.

“We may have specific requirements for transport carriers when we go to the communities,” she said. “If we can’t get hold of these logistical needs, then we need to do the vaccination at the facilities.”

But access to these facilities might be a problem for some target populations. The Philippines has enough vaccinators, Ms. Vergeire said, citing the government’s strong immunization programs in the past.

Daryl G. Gallardo, a 26-year-old resident of Santa Cruz, Laguna province, expects to get vaccinated but doubts the government’s ability to reach far-flung areas.

“People in remote areas may have to wait because the vaccines are limited,” the medical student from Lyceum-Northwestern University said by telephone. “We also know healthcare is not a government priority.”

Senator Leila M. de Lima has filed a bill that seeks to mandate the vaccination of the country’s more than 100 million Filipinos against the coronavirus for free.

Congress has approved a P4.5-trillion national budget for next year that allotted P2.5 billion for vaccines under the Health department budget and P70 billion more in unprogrammed funds.

There is also a P10-billion standby fund under another law, bringing the total vaccine allocation to P82.5 billion.

Beyond logistics, the government must also deal with public resistance. “There’s a conspiracy theory that has been circulating via text messages that the vaccine could actually make people sick,” Ms. Moner, the lecturer, said.

“I received a chain message in Maranao warning people to avoid the vaccine at all costs,” she said. “Some people see it as a bioweapon.”

Ms. Moner said her primary concern is whether the vaccine would reach her hometown in Mindanao. “Will we ever get it? I really hope we don’t get left behind.”

Tax amnesty deadline extended to end-June

TAXPAYERS will have until June next year to apply for the tax amnesty program on delinquencies and the Voluntary Assessment and Payment Program (VAPP).

Bureau of Internal Revenue (BIR) Commissioner Caesar R. Dulay issued Revenue Regulations (RR) No. 32-2020 to extend the validity of the tax amnesty on delinquencies to June 30, 2021 from the previous Dec. 31, 2020 deadline.

This marked the fourth time the BIR extended the program’s deadline from the original April 23 deadline.

BIR Deputy Commissioner for Operations Arnel SD. Guballa told BusinessWorld in a text message that the tax amnesty program on delinquencies generated P3.544 billion in revenues since the program began in April 2019.

“The extension is a welcome development as this will buy time for taxpayers who may want to avail but are having challenges given the pandemic situation considering lack of resources and difficulty in complying with the requirements,” said Maria Lourdes P. Lim, the tax managing partner of Isla Lipana & Co., PwC Philippines in a text message on Tuesday.

“The extension will also benefit the government as this will result in additional collections. As you may note the projected revenue for these programs were not met primarily because of the current health crisis,” she added.

At the same time, the BIR issued RR 33-2020 moving the deadline for the availment of the VAPP to June 30, 2021, from the initial deadline of Dec. 31, 2020. The program, which was launched in September, allows taxpayers to voluntarily settle their tax arrears.

“We are delighted that the VAPP has been helping our small and medium taxpayers settle their 2018 tax obligations while also generating additional revenue collection for the BIR. The same goes with the [tax amnesty] program,” Finance Undersecretary Antonette C. Tionko said in a statement on Tuesday.

“By further extending the two programs, we hope to help more taxpayers settle their tax deficiencies amid the pandemic,” she added.

The Finance department said the VAPP yielded over P200 million in tax collections in the first three months of the program.

It covers all internal revenue taxes for the taxable year ending Dec. 31, 2018 and fiscal year 2018 — ending July 2018 up to June 2019.

RR 33-2020 also issued additional guidelines to accurately assess VAPP applications, requiring documents such as discrepancy notices to support denials and invalidation of availment.

The BIR said taxpayers that will secure a certificate of availment of the program will not be audited for its pending tax obligations in 2018, while ongoing audits will also be suspended.

Approved applications can also be deemed invalid if taxpayers were found to underdeclare their sales, receipts or income; overstate deductions; and if they have unremitted withheld tax.

Aside from the tax amnesty on delinquencies, the government’s estate tax amnesty program is also currently ongoing. It provides for a fixed 6% tax rate of the total net estate of persons who died on or before Dec. 31, 2017, and grants immunity from all other estate taxes and penalties incurred in the past.

The BIR has so far collected P1.58 billion from the estate tax amnesty program, according to Mr. Guballa. The program is valid until May 31, 2021.

The two tax amnesty programs generated P5.125 billion so far this year, falling short of the Finance department’s P27-billion target when Republic Act 11213 or the Tax Amnesty Act was at its early stages.

As of end-May, the BIR collected P2.5 billion from the tax amnesty program for delinquent accounts which started in April 2019. — Beatrice M. Laforga

Remittance resurgence a tonic, not cure for Philippines

LONDON — Larger-than-expected money transfers from migrants overseas have provided a tonic for several sickly economies during the coronavirus crisis, but the outlook for such flows remains fraught with uncertainty even as vaccines are rolled out.

Mexico, El Salvador, Kenya, Pakistan, Bangladesh, the Philippines and Sri Lanka are among those enjoying resurgent flows in recent months, helping them narrow current account gaps, stabilize currencies and meet any overseas debt payments.

Such countries have led a surprise recovery in remittances in the second half of 2020, as the slowdown in flows amid the pandemic proved less severe than initially feared.

Migrants have cushioned the pandemic’s economic blow, drawing down savings to help out families back home and sending more money via official channels rather than in person, while benefiting from access to state support, including cash handouts, in host countries such as the United States.

While vaccinations should help economic activity to return to normal, the risk of mounting job losses as government support unwinds mean such flows, a source of FX revenue and gross domestic product for many emerging countries, may falter in 2021.

Unemployment in wealthy G20 countries, home to a sizeable proportion of migrants, is expected to reach 10% by the end of 2020 and remain above levels at the end of 2019 next year, the Organization for Economic Cooperation and Development (OECD) has forecast.

“Countries like Pakistan, Bangladesh and Philippines, which receive about 9% or 10% of GDP from remittances, have a window of opportunity to invest these flows into productive areas of the economy to help their recoveries because at some point this window may close as people may lose their jobs or decide to go back to their home countries,” said Emre Akcakmak, portfolio manager at East Capital, a specialist in emerging and frontier markets.

Record flows to Pakistan have helped it accumulate a $1.2-billion current account surplus at a time when it is paying back a $3-billion loan to Saudi Arabia.

Strong remittances and subdued imports should help Sri Lanka to service its July Eurobond maturity, said Tellimer economist Patrick Curran. Beset with surging debt and collapsing tourism revenues, the island nation has been assessed at growing risk of default by rating agencies.

Mexico’s currency depreciation has helped put the country on course for its largest current account surplus in more than 30 years, Goldman Sachs estimates.

DEEPER, PROLONGED
Remittances are relatively stable compared with other financial flows. That includes foreign direct investment, which remittances overtook in 2019. Meanwhile portfolio flows, set to surge in the last quarter of 2020 two their highest since the first quarter of 2013, are prone to sharp reversals as they did during the taper tantrum.

But the outlook is uncertain.

The World Bank in October revised its 2020 estimated drop in flows to low- and middle-income countries to 7% from 19.7% previously, but predicted a further 7.5% dip next year. That is a deeper and longer downturn than during the global financial crisis, when flows shrank 4.9% in 2009, before rebounding 11.8% a year later.

For the first time in recent history, the stock of international migrants is expected to fall in 2020. Those remaining in host countries face an uncertain future.

In the United States, in a reversal of pre-pandemic trends, the unemployment rate for immigrants was now 2 percentage points higher than the rate for natives, according to the OECD.

“We are expecting a strong recovery in global growth as vaccination is rolled out and we begin to see a normalization in economic activity. This should support global remittances,” said Farouk Soussa, senior economist at Goldman Sachs.

“On the other hand, we think there have been a number of one-off factors that have held up remittances this year, and these may not come into play next year.”

The Gulf, accounting for around 40% of total outward remittances, may see a push to replace foreign workers with locals in 2021, Soussa said.

That is bad news for countries that rely on transfers from the Gulf, such as Bangladesh, Philippines, Egypt and Lebanon. Lebanon’s financial crisis and dwindling economy mean remittances are seen rising to more than a third of GDP in 2020.

One hope is a recovery in exports and tourism, the other big money maker and hard currency source for emerging economies. Yet while the vaccine rollout should help, the outlook is uncertain. — Reuters

Ayala unit takes control of Qualimed 

AYALA HEALTHCARE Holdings, Inc. has acquired the controlling stake in the company behind the Qualimed health network, boosting the Ayala’s thrust into a sector that has become increasingly vital as the country grapples with the impact of the pandemic.

AC Health, the Ayala Corp. healthcare arm, said in a statement on Tuesday that it had signed through subsidiary Healthway Philippines, Inc. agreements to obtain a 54.2% stake in Mercado General Hospital, Inc., which owns Qualimed.

“The addition of a hospital platform to the AC Health portfolio will allow it to leverage operational efficiencies and to offer a full suite of services across the full continuum of care,” the listed conglomerate told the stock exchange.

The deal involves the acquisition of 28.13 million common shares and 330,607 preferred shares from White Knight Holdings, Inc., a wholly owned subsidiary of Ayala Land, Inc., to give Healthway a 39.2% stake.

Healthway will also buy 10,887,842 common shares from 13 individuals — collectively, the Mercado group — to give it an equivalent 15% of the outstanding capital stock of shares of the hospital platform.

It will then subscribe to 38,250,000 cumulative, redeemable, and non-participating preferred shares from White Knight and the Mercado group equivalent to 34.51% of the outstanding capital stock of shares of the hospital to bring its voting interest to 70%.

“The coronavirus disease 2019 (COVID-19) pandemic has renewed the Ayala Group’s commitment to invest in healthcare, and with this investment, we will be better positioned to provide much-needed healthcare services for the country,” Fernando Zobel de Ayala, chairman of the board of AC Health, said in the statement.

AC Health’s acquisition of Qualimed adds to the company’s current clinic and hospital portfolio, including all family, specialty, and corporate clinics.

Furthermore, with the addition of Qualimed, it now has four general hospitals, 85 outpatient clinics, 80 corporate clinics, and the first local cancer specialty hospital.

AC Health President and CEO Paolo Maximo F. Borromeo said the acquisition of Qualimed has completed its lineup for patient care, from primary clinics, multi-specialty care, and hospital care.

“We have taken a deliberate approach to building up our healthcare ecosystem, with the goal of delivering an integrated patient experience for more Filipinos,” Mr. Borromeo was quoted as saying.

In the stock market disclosure, Ayala Corp. said the value of the transaction “is not material as it is less than 10%” of its total equity.

According to the disclosure, Qualimed has hospitals in Nuvali, Bulacan, Iloilo City, and Batangas. It also operates an ambulatory surgical center in UP-Philippine General Hospital, and has clinics in Makati, Quezon City, and Cebu IT Park.

On Tuesday, Ayala Corp. shares at the stock exchange rose 0.36% or P3 to close at P838 per piece. — Revin Mikhael D. Ochave

Mondelēz says product demand stabilizes after lockdown spike

SALES of snack products have started to stabilize after most of them recorded a surge in demand for most of the pandemic lockdown, an official of the food and drinks company Mondelēz Philippines, Inc. said.

Atul Kulkarni, plant lead of Mondelēz Philippines, said in a virtual interview in early December that the company saw increased demand for much of 2020 compared with previous years, indicating panic buying when restrictions were first put in place followed by demand from families working from home.

“Very recently, we are seeing it to become stable now, since it cannot be always spikes. So, we are seeing stable demand as of now in the market. There is some demand impacted or affected because of the festive season, but that happens every year,” he said.

The company sells brands such as Chips Ahoy!, Oreo, Tang drink mix, and Eden cheese. Demand for “impulse” items like chocolate, Mr. Kulkarni said, was not as strong compared with other snack products.

In 2021, Mondelēz Philippines will be focusing on expanding e-commerce sales.

Mondelēz International, Inc. last month released its “State of Snacking” report, finding that 88% of more than 6,000 adults it surveyed globally are buying snacks at either the same amounts or more during the pandemic than before it.

Market research company Kantar Worldpanel Division Philippines expects the surge in fast-moving consumer goods (FMCG) sales during the holidays to be lower than the usual 20% growth seen in previous years.

Mr. Kulkarni said that the company during the stricter lockdown experienced some operations challenges, including work absences caused by the lack of public transport and slower access to imported materials caused by bottlenecks.

“Logistics was greatly impacted. We have seen that there were certain checkpoints that have been implemented. There were lots of permissions needed for public transport as well as for general transport,” he said.

Mondelēz in 2019 started creating play areas with recycled materials for schools, but the project was put on hold due to the lack of onsite education.

The company has since been working with social enterprise Plastic Flamingo to collect and recycle one metric ton of plastic from October to November this year, a project it plans to expand in 2021. The plastic waste will be turned into eco-planks, which will be used to make emergency shelters for people displaced by natural disasters.

The global company has committed to using 100% recyclable packaging by 2025. Mondelēz International was listed among the top 10 global polluters in the 2020 brand audit report by Break Free from Plastic. — Jenina P. Ibañez