Ayala forms consortium to build coronavirus testing labs

June 19, 2020 | 4:20 pm

The healthcare arm of Ayala Corp. (AC) is forming a consortium with five other companies to build coronavirus disease 2019 (COVID-19) testing laboratories in various Qualimed hospitals across the country.

In a statement Friday, Ayala Healthcare Holdings, Inc. (AC Health) said it signed a memorandum of agreement with the Aboitiz Foundation, ABS-CBN Corp., Alfonso Yuchengco Foundation, Gokongwei Brothers Foundation and Metrobank Foundation to build the biosafety modular laboratories.

These facilities aim to add 5,500 to the country’s capacity for confirmatory COVID-19 tests per day.

“Increasing the country’s confirmatory testing capacity is not easy. We are grateful to have been able to form a consortium of friends from the private sector who are just as committed to battling this pandemic,” AC Health Chairman Fernando Zobel de Ayala said in the statement.

Donations from the partner companies will be used for the construction of the facilities and the purchasing of equipment for the new laboratories.

Each laboratory will have one automated RNA (ribonucleic acid) extractor and two RT-PCR (reverse transcription-polymerase chain reaction) machines, which can perform 1,000 RT-PCR tests a day.

The facilities will be set up in Qualimed hospitals located in Sta. Rosa, Laguna; San Jose del Monte, Bulacan; Tanauan, Batangas; and Iloilo City, Iloilo.

Prior to forming the consortium for the four new laboratories, AC Health has partnered with the Tropical Disease Foundation in Makati, the University of Cebu Hospital in Mandaue City and the Southern Philippines Medical Center in Davao to develop their respective laboratory facilities.

AC Health said in a briefing in May it has set aside P300 million for COVID-19 relief efforts such as helping increase the country’s testing capacity and providing triaging facilities. — Denise A. Valdez

Cirtek profits surge in 1st quarter

June 19, 2020 | 4:17 pm

Earnings of Cirtek Holdings Philippines Corp. surged to $1.27 million in the first quarter due to improved sales and better operating profit margins.

In a regulatory filing disclosed Friday, the electronics manufacturer said its attributable net income during the January-to-March period is 8,664% higher than last year’s $14,500.

Gross revenues went up 6% to $22.27 million due to the increase in orders for its antenna products. Contributions from Cirtek’s wholly-owned subsidiary Quintel USA, Inc. stood at $6.9 million, up 3% from the previous year.

Revenues from radio frequency/microwave/millimeter wave (RF/MW/mmW) and antenna manufacturing businesses rose 37% to $5.7 million, while revenues from the semiconductor business fell 4.5% to $9.7 million.

Gross profit jumped 68% to $6.3 million as cost of sales declined 8% to $15.97 million.

The increase in gross profit is attributed to reductions in costs, particularly in design improvement and price reductions to China contract manufacturers. Freight costs also fell due to the increased sea shipments and a reduction in air shipments.

The company’s gross margin improved by 10% to 28% for the three-month period.

Last month, Cirtek said it was exploring opportunities in China and Taiwan as part of diversifying its supply chain. The company’s manufacturing capacity is currently limited to 60% because of quarantine restrictions and safety protocols amid the coronavirus outbreak.

“As part of Cirtek’s business continuity and expansion plans, it is in talks with an additional contract manufacturing partner in China as well as qualifying a new Taiwan facility in response to supply chain diversification and business resiliency plans moving forward,” it said in a May 12 statement.

Cirtek is in the business of manufacturing technology products used in communications, consumer electronics, power devices, computing, automotive and industrial sectors. These are exported across Europe, United States and Asia.

Shares in Cirtek at the stock exchange gained 46 centavos or 5.48% to P8.86 each on Friday. — Denise A. Valdez

Golden Bria earnings hit P2.6B in 2019

June 19, 2020 | 4:14 pm

Golden Bria Holdings, Inc. reported a record P2.6 billion profit in 2019 after showing strong sales of housing units and memorial lots.

The Villar-led deathcare and mass housing company said in a regulatory filing Friday last year’s net income was 64% up from the P1.56 billion profit recorded in 2018.

Total revenues grew 49% to P8.64 billion, backed by a 49% jump in real estate sales to P8.45 billion. Real estate sales account for 98% of the company’s total revenues.

Income from interest on contract receivables rose 14% to P110.5 million, while income from chapel services grew 15.6% to P41.9 million and internment income rose 18.3% to P38.9 million.

On the other hand, cost and expenses increased by 42% to P5.8 billion.

Golden Bria’s assets grew 50% to P27 billion, which it attributed to business expansion and an increase in inventories and contracts receivables.

Golden Bria Chairman Manuel B. Villar Jr. said that the company has aggressively expanded projects and sales networks.

“The company is also looking at widening the Golden Bria footprint across the country,” he said.

The company’s housing subsidiary Bria Homes Inc. is planning new projects in inner-city pocket developments in metropolitan areas. Golden Haven Memorial Parks, Inc. on the other hand is planning three new projects.

Bria Homes is present in more than 50 locations in the country.

Shares in Golden Bria added P8 or 7.14% to close at P300 apiece at the Philippine Stock Exchange on Friday. — J.P. Ibañez

Over P1.4-B in financial aid disbursed via PayMaya

June 19, 2020 | 4:12 pm

Various government units and agencies have turned over more than P1.4 billion worth of financial aid to 120,000 beneficiaries through PayMaya Philippines, Inc.’s e-Wallet

The Department of Social Welfare and Development (DSWD) tapped PayMaya to distribute monetary aid for displaced workers under its Assistance to Individuals in Crisis Situations (AICS) program.

The Social Security System also partnered with PayMaya in sending funds to beneficiaries of its Small Business Wage Subsidy (SBWS) program.

PayMaya’s digital financial services are also being used by the city governments of Caloocan, Las Piñas, Manila, Mandaluyong, Pasig, and Quezon City in delivering cash aid to PayMaya accounts of senior citizens, persons with disabilities, solo parents, and scholars, among their constituents.

“To address the COVID-19 (coronavirus disease 2019) crisis, government agencies and LGUs (local government units) have adopted digital technologies such as PayMaya in providing crucial aid to their constituents,” PayMaya Founder and Chief Executive Officer Orlando B. Vea said in a statement.

“Having an e-Wallet is the fastest and easiest way for citizen beneficiaries to avail of critical services such as government aid, ensuring that no one is left behind,” Mr. Vea added.

Recently, PayMaya partnered with the Bureau of Customs, the Department of Foreign Affairs, and Valenzuela City to provide an online payments gateway for their services.

PayMaya is part of Voyager Innovations, Inc., whose portfolio includes PayMaya Enterprise for end-to-end merchant-acquiring solutions and Smart Padala, which has over 30,000 partner agent touchpoints nationwide.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — A.J. Ang

Pandemic offers telco challenger a boost in PHL rivalry

June 19, 2020 | 4:10 pm

The pandemic is giving a Philippine telecommunication company an opportunity to grab market share from its well-entrenched rivals as vast swathes of the population remain stuck at home.

Converge ICT Solutions Inc., which specializes in fiber-optic broadband services, saw a record jump in subscriptions in May, Chief Executive Officer Dennis Anthony Uy said in an e-mail interview. New activations surged 150% from a year earlier to more than 50,000, driven by retail and corporate clients like call centers equipping their employees to work remotely, he said.

Converge is accelerating its expansion, and is recasting revenue, spending and subscriber growth forecasts to account for the uptick in demand, Mr. Uy said. PLDT Inc. and Globe Telecom Inc. are looking to scale back spending this year amid delays in their network rollout.

The coronavirus pandemic is reshaping the telecommunication landscape in a country with a young, technology-savvy population and an increasing amount of services moving online. The Philippines is home to the world’s heaviest Internet users despite having one of the slowest connection speeds, according to a Hootsuite report.

Converge, backed by a $225-million investment from Warburg Pincus, is betting that broadband penetration will double over the next five years from less than 15% of households today. From a fiber network that is limited to the island of Luzon and covers 2 million households, it plans to expand nationwide by 2021 and boost its international bandwidth.

“We see a long runway for Converge to continue to grow rapidly,” Warburg Pincus managing director Saurabh Agarwal said, adding that the company saw 75% average revenue growth over the last three years.

Asked about prospects for an initial public offering, Mr. Uy said the company will focus on rolling out its infrastructure nationwide in the immediate term. He also nixed the idea of a merger or acquisition. “At this point in time, we think we can reach our aspirations for scale through organic growth.” — Bloomberg

Huawei Ascends Technology in an Intelligent Era: Winning with an Ecosystem

June 19, 2020 | 1:55 pm

AI technology takes a collective effort for its best outcome. Through the Ascend Partner Programme, Huawei is building an innovative, sustainable ecosystem to share success with partners.

Artificial Intelligence (AI) is no longer just a catch phrase, but is slowly becoming a new type of general computing technology. Inevitable it is one of the key drivers of technological innovation and thus social and economic revolution. Huawei never stops investing in AI research and development of such capacities to support ground-breaking cooperation among 5G, cloud, edge, and devices, reshaping various industries, such as financial services, transportation, power supply, manufacturing and more.

Such technologies usually require collaboration to obtain fruitful results. For that, Huawei has been spending a whole lot of efforts in building an ecosystem which include academia, industries and relevant communities to AI development, which advances both technology and those sectors together. With an open approach, opening up hardware, making software open-source and pursuing shared success with our partners.

Collaboration is Fundamental of Technological Success

In fact, Huawei applies its Ascend series AI processors to run the Atlas AI Computing Platform, allowing all-scenario AI infrastructure solutions for device-edge-cloud set-ups.

Huawei Asia Pacific Partner Ascend Program would be one of the gateways for AI talents and companies to come to us, learn to adopt and then proliferate the use of Ascend AI products.

It will also be one of the channels where support will be given to R&D projects and to Institutes of higher learning for talent development.

Programmes Cover Wider Range of Aspects

The programme covers four key areas, namely AI development, support, knowledge transfer, and go-to-market, and strategic resources. The visionary goal which comes with three segments:

1. Independent Software Vendor (ISV) AI Collaboration Programme

Under this sub-programme, ISVs, innovators and entrepreneurs can access through the online portal. A three-tier partnership system categorise partners as “Members”, “Certified”, or “Preferred” with relevant benefits for each tier. Such benefits include NREs (Non-Recurring Engineering funding), cloud resource vouchers, knowledge transfers via Ascend AI Community, exam-vouchers for HCIA-AI (Huawei’s specialized AI Certification), Go-to-Market support as well as other strategic resources.

2. Institute of Higher Learning (IHL) AI Talent Cultivation Programme

Huawei will provide support according to the following three tiers, from ”Course Collaboration”, “Technology Innovation” to “Business Ventures”. It aims to help IHLs to build AI disciplines, cultivate AI talents, improve academic and scientific research in the AI field based on the Huawei full-stack Atlas AI technological capabilities.

“In the new AI era, a strategic partnership between National University of Singapore and Huawei in research and talent development will make great impact to society,” said Huang Zhiyong, Deputy Director of the university’s Business Analytics Centre.

3. Government AI Industry Development Programme

Huawei will provide technical support in enhancing the country’s AI innovation facilities using the Ascend technology. Huawei will also share experience in terms of industrial best practices and assist the government in various policy matters, including setting of the National AI Industrial Standards.

“Indonesia National AI strategy empowered by BPPT, is the most important milestone toward Innovation-driven nation, the golden vision of Indonesia 2045. It is inevitable, ubiquitous AI will drive our nation journey to achieve Sustainable Development Goals.” said Dr Ir. HammamRiza, M.Sc, Head of Agency for the Assessment and Application of Technology (BPPT).

With these innovative strategy, Huawei is building the Ascend AI Ecosystem with shared success. Currently, the company is assisting firms in each and every Asia Pacific countries in achieving a series of goals in a structured, systemised programme, such as:

– Adoption and Use of Ascend AI products
– Proliferation of ISVs & Start-ups Ecosystem
– Support of local R&D and talent development
– Proficiency in the knowledge and skills of programming and testing Ascend AI products
– Growth of the AI Ecosystem in different industry domain of AI technology

APAC Partners Enjoying Benefits with AI

The APAC region is now enjoying tremendous business opportunities via the programmes and the ecosystem. AI development in regions, demographic dividend and supportive policy of various countries have created marketplace opportunity for AI computing.

“When it comes to AI ecosystem-based collaboration, Huawei has always focused on infrastructure. We work with the academic community and industries to promote AI development, which advances both technology and industries as a whole. Ultimately, we hope to bridge the divide, and achieve shared success as soon as possible,” said Daniel Zhou, President of Huawei Cloud & AI Business Group, Asia Pacific Region. “By leveraging our collaborative Connectivity + Computing + Cloud synergy, we are able to provide an intelligent, automated, information-driven platform for partners’ content, applications, and algorithms.”

“Together, we will build a thriving ecosystem and usher in a fully connected, intelligent world,” he noted. Ultimately, Huawei is building a fully connected, intelligent world; and the Asia Pacific Ascend Partner Programme is a cornerstone for this purpose.

To find out more, please visit https://e.huawei.com/sg/products/cloud-computing-dc/atlas.

Stories from the frontlines

June 19, 2020 | 12:15 pm

Lopez Group supports PGH in the fight against COVID-19

This is one of the many stories from the frontlines of our battle against COVID-19. It has been a month since Nurse Ara from Philippine General Hospital (PGH) saw her five-year-old son because she does not want to expose her family to the virus. But as she said, “We got to do what we got to do, we are needed here and we must answer our calling.”

This is how most of our health workers face every day amidst the pandemic — with a sense of duty and by being of help however they can, even if it means sacrifice.

Just like any other human being, our health workers are also faced with anxiousness. One of the main problems PGH was confronted with was the lack of testing equipment.This meant that they were only able to test the patients and not the health workers.

PGH Director Dr. Gap Legaspi stressed the importance of testing not just the patients but the health workers too. He pointed out, “It’s the continuous testing that we need to do to make the services in the hospital more safe.And that would require more tests because you’d have to test the patients, you have to test the doctors, ideally, even the watchers, because you don’t want someone coming in and turns out they’re positive.”

After consulting with PGH officials, it was determined that there was an urgent need for testing machines and lab equipment for the hospital sincethe it would be a COVID-19 Referral Center and laboratory of the government and even private hospitals. Seeing this opportunity to help, the Lopez Group donated new machines and lab equipment which would allow the hospital totest more people.

Dr. Legaspi stated that, “Together with assistance from other government agencies and donors, these machines from the Lopez Group will bring us closer to the target of performing 30,000 COVID-19 RT-PCR tests daily.”

The benefits do not end there, in factit will have a ripple effect, as Dr. Legaspi added, “By strengthening our laboratories, this donation will eventually allow us to serve COVID-19 patients not only from Metro Manila, but also from nearby provinces.”

Still, the effect of this act can already be seen within the community of PGH. Angelo Javillonar, a Neurosciences nurse, expressed his relief that they can already be tested. He said that being uncertain adds stress to them as health workers but now, being able to get tested, somehow relieves them of this added burden.

Another nurse, Angelique Asis-Rosete, who tested negative of COVID- 19, expressed her happiness, not just of knowing but mostly because she could already go back to work and help those in need.

Nurse Ara said that it’s their decision to go home or not but since there is a need for manpower in the hospital, they opted not to go home and to go onduty for the meantime. She plans to see her family soon once she tests negative. When asked if her son knows what his mom is doing she answered, “He knows mom is fighting the virus, but other than that, he’s mad at Mom because she doesn’t get to go home. But mostly, I get to talk to him on a daily basis. As soon as we test everyone, I will have myself tested and be in quarantine. And when I get negative, I will have to go home, at least for three days. And then it’s back to work.”

Just like the many health workers who face this uncertain world with such inspiring determination, everyone has a part in this war against the virus. Every individual must do what they can, even if it simply meansstaying at home. Small acts of kindness are never unimportant; it keeps the gear moving towards this impending victory. It is by working together that we can achieve this future.

The world as we know has changed and it always will. It is in how one faces these changes that sets us apart, giving us that tenacity to help. AsMarcus Aureliusputs it, “You have power over your mind – not outside events. Realize this, and you will find strength.”This message is relevant for every individual during this time.

Why Wi-Fi 6 is an essential driver of digital transformation

June 19, 2020 | 9:00 am

Editor’s note: This article was first published on www.cio.com.

It has taken less than two decades for Wi-Fi to become a ubiquitous aspect of modern organisations, with customers and employees alike expecting easy access to fast and reliable networks.

So when the Wi-Fi network fails them, not only is this embarrassing for the network provider, but it also leads to lost productivity and sales.

As organisations accelerate their digital transformations, the pressure to invest in latest-generation wireless network technology is growing – not only to meet today’s expectations, but to ensure that wireless networks can also flex and evolve to meet emerging requirements.

The need for Wi-Fi 6

According to Tam Dell’Oro, a WAN analyst and founder and CEO of the research firm Dell’Oro group, many users are already frustrated with the performance of Wi-Fi networks.

“Users want to be able to walk from one location to another and receive the best Wi-Fi connection,” Dell’Oro says. “This is not supported with older Wi-Fi technologies and is a point of irritation.”

Rapid growth in data use is also placing strain on existing networks. High-bandwidth applications, such as 4K UHDTV, augmented reality, and virtual reality are becoming widely used in education, enterprise, and healthcare, with Gartner predicting 25 per cent of organisations will be using AR/VR applications by 2021. Delivering rich AR and VR experiences requires low packet loss and low-latency connections to create a jitter-free experience for users.

Networks also need to support more devices, such as those being connected via the Internet of Things, with research by Huawei suggesting two million new sensors will be connected every hour by 2025. And this doesn’t include the growing demand for remote connections, with FlexJobs finding 85 per cent of millennials prefer remote working.

All these needs must be catered for without increasing management overheads, meaning network owners require equipment that can be easily managed for optimal, interference-free performance.

These reasons and more are fuelling the decisions of transformative companies to invest in next-generation Wi-Fi 6 wireless access technology.

Not all Wi-Fi 6 is the same

Wi-Fi 6 offers numerous benefits over previous generations of wireless technology. For starters, it supports four times higher network bandwidth and user concurrency compared to Wi-Fi 5, with a host of other features to improve performance and reliability, and reduce the power drain for end-user devices.

Huawei has taken a leadership in Wi-Fi 6 innovation, with the introduction of 10 new AirEngine Wi-Fi 6 access point devices in February 2020. These feature a range of innovations that enable them to outperform the competition by offering seamless mobility, higher performance, and easier manageability, all while ensuring the best possible experience for specific users and critical network traffic.

For starters, Huawei is the first provider to enable always-on 100Mbps Wi-Fi continuous networking at scale, powered by Huawei’s leadership in 5G technologies, which means networks can be accessed anytime, anywhere.

It is also the only vendor to have implemented HE160 data transmission in eight spatial streams, featuring 9.6Gbps data transmission on 5GHz bandwidth and 1.15Gbps on 2.4GHz. This enables Huawei AirEngine access points to achieve 10.75 Gbit/s performance.

And Huawei is unique in its implementation of OFDMA (Orthogonal Frequency Division Multiple Access), which enables up to 1960 sub-carriers(in HT160MHz mode), together with MU-MIMO (Multi-User Multiple-Input-Multiple-Output), which enables a wireless access point to connect with multiple users simultaneously. This improves spectrum resource utilisation, enabling Huawei AirEngine access points to set an industry benchmark of implementing 16 x 16 MU-MIMO. Together these innovations his provide for better single-user performance in multi-user concurrency scenarios.

AirEngine access points also use Smart Antenna technology with beamforming technology which analyses a user’s location and intelligently selects multiple physical antenna elements within the access point to send and receive signals, creating an optimal delivery ‘beam’.

This combination of MU-MIMO and Smart Antenna technology enables AirEngine access points to deliver superior signal strength while achieving coverage distances 20 percent greater than other devices. They also offer the lowest latency in the industry and zero packet loss when roaming, and the ability to set prioritisation for specific users, or more than 6000 different application types.

Conclusion

According to Dell’Oro Group, the need for higher-performance and reduced management overheads will fuel significant interest in Wi-Fi 6 technology in 2020, especially with vendors such as Huawei offering devices with rich features at prices comparable to Wi-Fi 5 or Wi-Fi 4 products.

“We are seeing Wi-Fi 6 beginning to ramp up significantly as the market moves from early adopters of new technology to the mass-market in 2020.”

Huawei’s AirEngine Wi-Fi 6 product line-up already has the largest global market share outside of the US, according to Dell’Oro’s Wi-Fi 6 market share statistics report from 2019, and has won recognition from customers and channel partners through upgrades and exclusive technologies such as smart antennas, lossless roaming, and smart application acceleration.

Huawei’s AirEngine range of access points have been specifically designed to meet the challenges of current and future wireless network users, helping organisations ensure they deliver seamless wireless connectivity to support a transformation to a digital future.

Click here for more information on Huawei AirEngine Wi-Fi 6.

#COVID-19 Regional Updates (06/18/20)

June 19, 2020 | 1:00 am

Manila Bay patrol

MEMBERS of the Philippine Coast Guard’s CCP Complex Station and Auxiliary 101^st Squadron have been jointly patrolling the Manila Bay area since the start of lockdown in March, providing security as well as supporting relief operations in the coastal communities.

Central Visayas COVID-19 cases top 5,500; over 4,000 in Cebu City

CORONAVIRUS disease 2019 (COVID-19) cases in the Central Visayas Region has topped 5,500, with about 79% in Cebu City. The Department of Health regional office, in its latest update posted late Wednesday, reported 5,566 confirmed cases as of June 16, of which 3,799 are active cases, 1,637 recoveries, and 130 deaths. Of the total, 4,382 are in Cebu City, which is the only area in the country currently under the strictest lockdown policy. In compliance with the classification imposed by the national government effective June 16–10, Cebu City Mayor Edgardo C. Labella has issued a new executive order outlining the enhanced community quarantine (ECQ) guidelines. However, Mr. Labella said he has filed an appeal to revert the city back to the less restrictive category. “I have, however, filed an appeal to return the city to general community quarantine based on significant data we have. Pending resolution of that appeal, let us work together to make sure that the ECQ regulations spelled out in my Executive Order are strictly followed,” he said in a statement posted on his Facebook page. The other cases in the region are located in the following: Mandaue City, 449; Lapu-Lapu City, 211; Cebu province, 489; Negros Oriental, 23; Bohol, 12; and none in Siquijor.

MORE POLICE
Meanwhile, the Philippine National Police (PNP) on Thursday deployed 100 officers to Cebu City to beef up forces for the implementation of health and safety protocols during the ECQ period. PNP deputy chief for operations Lt. Gen. Guillermo T. Eleazar said the contingent consists of 50 cops each from the Western and Eastern Visayas regions. They are assigned at checkpoints and ordered to conduct regular patrols to help ensure that residents follow minimum health standards such as wearing of face masks and observing physical distancing. “The key to defeating the spread of the virus is cooperation. We need to have a unified front to effectively enforce the quarantine rules,” he said in a statement. — with a report from Emmanuel Tupas/PHILSTAR

Eastern Visayas lawmakers call for review of Hatid Probinsya program after spike in COVID-19 cases in region

TWELVE lawmakers from Eastern Visayas called for a review of the government’s Hatid Probinsya program following the recent spike in coronavirus disease 2019 (COVID-19) cases in the region. The Hatid Probinsya assists residents in returning to their hometowns after being stranded locally due to the lockdowns. “Official records show that the rapid increase in the number of COVID-19 cases was observed shortly after the national government implemented its Hatid Probinsya program… we firmly believe that it is the duty of government to ensure that these constituents of ours are free from coronavirus infection and other diseases before they are allowed to rejoin their family members,” the lawmakers said in a joint statement on Thursday. They also urged the national government to increase support to the region for containing the virus through funding for medical supplies, local quarantine centers, and contact tracing capability, among others. They said, “We pray that our plan for collective action to contain the spread of COVID-19 disease in Eastern Visayas will come into fruition the soonest time possible,” the House members said. “Time is of the essence. We do not need another epicenter of COVID-19. Not in Eastern Visayas. Not in any part of the country.” The statement was signed by House Majority Leader Ferdinand Martin G. Romualdez; Tingog Party-list Rep. Yedda Marie K. Romualdez; Northern Samar Representatives Paul Ruiz Daza and Jose L. Ong, Jr.; Leyte Representatives Vicente S.E. Veloso III, Lucy Torres-Gomez, and Carl Nicolas C. Cari; Western Samar Representatives Edgar Mary S. Sarmiento and Sharee Ann T. Tan; Eastern Samar Rep. Maria Fe R. Abunda; Southern Leyte Rep. Roger G. Mercado, and Biliran Rep. Gerardo J. Espina Jr. — Genshen L. Espedido

Globe adds cell sites in Mindanao

GLOBE TELECOM, Inc. said it continues with its network expansion projects in Mindanao despite the coronavirus crisis, with new cell sites expected to rise soon in the provinces of Davao Oriental, Saranggani, Bukidnon, South Cotabato, and Sulu. “We want to assure our customers that our efforts to give better service and experience are not only concentrated in Luzon or in major commercial centers in big cities,” Joel R. Agustin, Globe senior vice-president for program development-network technical group, said. The expected improvement in connectivity in these areas, Mr. Agustin said, will benefit residents as more Filipinos now work from home and bring more opportunities to small businesses. “In Sulu, for example, better signal means the farmers there can go directly to potential buyers and customers not only in Zamboanga but directly to other places where they can sell their mangosteen, lanzones, marang, durian, vegetables and other harvest goods. This will mean more income for them,” he said. Globe is also studying to carry out more expansion projects in the Visayas and in other parts of Luzon. — Arjay L. Balinbin

Supreme Court junks construction firm’s petition in Makati parking case

THE SUPREME Court dismissed the petition of a construction firm head seeking to stop anti-graft court Sandiganbayan from continuing proceedings on case over the alleged overpriced Makati City Hall parking building. In a nine-page resolution dated February 17 and released June 17, the high court’s second division affirmed Sandiganbayan’s decision to junk the motion of Efren M. Canlas, representative of Hilmarc Construction Corp., to dismiss the case against him and other local government officials, including former Makati mayor Jejomar Erwin S. Binay, Jr. The Supreme Court ruled that private individuals may be charged for violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act if they “act in conspiracy with public officers.” The prayer for a temporary restraining order against Sandiganbayan to hold further proceedings was also denied. The case stems from the contracts awarded to Hilmarc for the P649.3 million Phase IV construction and P141.6 million Phase V construction of the parking building. The company was named lowest bidder in the Bids and Awards Committee resolution and was approved by Mr. Binay despite knowledge of the absence of public bidding. The resolution was penned by Associate Justice Henri Jean Paul B. Inting and concurred by Associate Justices Estela M. Perlas-Bernabe, Andres B. Reyes, Jr., Ramon Paul L. Hernando, and Edgardo L. Delos Santos. — Vann Marlo M. Villegas

ADB cuts growth outlook for 2020 GDP

June 19, 2020 | 12:34 am

THE Asian Development Bank’s (ADB) outlook for the Philippines has turned grim, as it now expects the economy to shrink by as much as 3.8% this year. Read the full story.

Economy to shrink by 3.8% — ADB

June 19, 2020 | 12:34 am

The Philippine economy will continue to bear the brunt of the coronavirus pandemic this year, according to the Asian Development Bank. — REUTERS

THE Asian Development Bank’s (ADB) outlook for the Philippines has turned grim, as it now expects the economy to shrink by as much as 3.8% this year.

At the same time, developing Asia is projected to grow at its slowest pace in nearly six decades, as the economic fallout from the coronavirus disease 2019 (COVID-19) pandemic widens.

In its June supplement to the Asian Development Outlook (ADO) 2020, the ADB slashed its gross domestic product (GDP) forecast for the Philippines this year to -3.8% from the 2% growth estimate given in April. This is lower than the 2-3.4% contraction projected by economic managers.

“The forecast for 2020 is revised down to 3.8% contraction because household consumption and investment have slowed more than expected. The contraction in the global economy will continue to drag external trade, tourism and remittances,” the ADB said in the report.

If realized, a 3.8% full-year contraction will be the worst since 1985 when the economy shrank 6.9% according to data from the Philippine Statistics Authority.

The government implemented strict lockdown measures in mid-March to contain the COVID-19 outbreak, which led to a drastic decline in domestic economic activity. As a result, the economy contracted by 0.2% in the first quarter, with an even worse second quarter expected.

The ADB took note of flat household consumption, weak imports and exports, as well as a plunge in investment. Only government spending rose during the first quarter. A broad contraction was also seen across all major sectors — services, industry and agriculture.

For 2021, the ADB kept its 6.5% growth forecast for the Philippines, “supported by public infrastructure spending and anticipated recovery in consumer and business confidence.”

The Philippines’ projected economic contraction is deeper than the Southeast Asian regional average of -2.7%. The economies of Thailand (-6.5%), Singapore (-6%), Cambodia (-5.5%) and Malaysia (-4%) are all expected to shrink this year, along with Timor Leste (-3.7%), Indonesia (-1%) and Laos (-0.5%).

Only Vietnam (4.1%), Myanmar (1.8%) and Brunei (1.4%) are seen to post growth, according to ADB.

Washington-based World Bank earlier trimmed its 2020 forecast for the Philippines to -1.9% from its 3% baseline projection in April.

Other institutions that already downgraded their outlook for the country include International Monetary Fund which now sees the economy shrinking by 3%; Fitch Ratings with a -4% projection; S&P Global Ratings with -0.2% forecast and Moody’s Investors Service with -2.5% projection.

RISKS REMAIN
Developing Asia, composed of 45 countries in the Asia-Pacific region, is now projected to grow by 0.1% this year, the lowest since 1961. ADB in April gave a 2.2% full-year growth projection for the region.

“Economies in Asia and the Pacific will continue to feel the blow of the COVID-19 pandemic this year even as lockdowns are slowly eased and select economic activities restart in a ‘new normal’ scenario,” ADB Chief Economist Yasuyuki Sawada was quoted as saying in a statement.

The ADB expects the region’s growth to rebound to 6.2% in 2021, mainly due to high base effects.

“While we see a higher growth outlook for the region in 2021, this is mainly due to weak numbers this year, and this will not be a V-shaped recovery. Governments should undertake policy measures to reduce the negative impact of COVID-19 and ensure that no further waves of outbreaks occur,” Mr. Sawada said.

Downside risks to its forecasts for Asia persist as the COVID-19 pandemic “may return in multiple waves in the coming period, as happened during the 1918-1919 global influenza pandemic,” ADB said.

“Sovereign and financial crises cannot be ruled out, and social unrest is possible. A further risk is renewed escalation in US-PRC trade tensions,” it added.

Meanwhile, the ADB predicts inflation for developing Asia to ease to 2.9% in 2020 from its earlier 3.2% projection, “reflecting depressed demand and lower oil prices.” Inflation is expected to slow to 2.4% in 2021.

For Southeast Asia, the inflation forecast was revised to 1% this year and to 2.3% in 2021.

ADB kept its inflation projection for the Philippines at 2.2% this year and 2.4% next year.

“In the Philippines, inflation edged lower in April, averaging 2.6% year on year in the first 4 months of 2020. Inflation forecasts for this economy are maintained, however, as lower oil prices offset possibly higher prices for food from feared domestic supply disruption,” ADB said. — B.M.Laforga

PHL to lag behind Asian peers in economic recovery

June 19, 2020 | 12:33 am

THE Philippines’ path to economic recovery faces headwinds, as coronavirus disease 2019 (COVID-19) cases continue to rise and policy measures rolled out by the government are still “meager.”

In a report published Wednesday, Oxford Economics measured the recovery paths of 12 economies across Asia Pacific based on the following criteria: health and economic vulnerability, stringency of lockdowns, success in containing the virus, and macro policy support.

The Philippines recorded the second-lowest score after India.

Vietnam, on the other hand, had the brightest recovery prospects in the region.

“At the bottom are India, Philippines, and Indonesia. All three are clearly still struggling to get past the peak of the pandemic, which is a major headwind to their outlooks,” the report read.

As of June 18, the Health department reported the total number of COVID-19 cases in the Philippines stood at 27,799, with 1,116 deaths and 7,090 recoveries.

“At the same time, the fiscal policy response has been quite meager in both India and Philippines, especially compared to the stringency of lockdowns they had imposed — which at one point were not only among the most severe in Asia but also globally,” it added.

The government placed Luzon under an enhanced community quarantine in mid-March, halting almost all economic activity. Lockdown restrictions have started easing around the country in May, with Metro Manila now under a general community quarantine.

According to the Asian Development Bank’s COVID-19 Policy Database, the Philippine government’s pandemic response package is the sixth-largest in Southeast Asia and fifth-smallest relative to population. The Philippine package was $20.078 billion as of June 1, equivalent to 5.46% of gross domestic product (GDP) and $188.26 per capita.

Based on its scorecard, Oxford Economics said Vietnam, South Korea, Taiwan, Japan, China and Hong Kong had high scores which indicate stronger prospects for recovery.

“Vietnam and South Korea have the added advantage of achieving high containment scores without a very stringent lockdown for a prolonged period. This also partly explains why their economies require less fiscal support to contend with the outbreak and its aftermath,” it said.

Singapore, Malaysia and Thailand’s scores placed them in the middle of the pack. Singapore’s recovery is hobbled by the prolonged lockdown and rising cases, despite a massive fiscal response.

‘REBOUND’
Meanwhile, Capital Economics said there are indications all countries in the Asia-Pacific region are now “rebounding” although the pace varies.

“The recovery is most advanced in China, Taiwan and Vietnam. The Philippines, Indonesia and India are doing the worst,” it said, citing high-frequency data based on mobility from Google and Apple, daily tourist arrivals and electricity usage.

With the easing of lockdown measures in the region, Capital Economics said “activity has now bottomed out,” although the pace of recovery appears uneven.

“In Vietnam and Taiwan, which appear to have eliminated the virus, the Recovery Trackers are not far off pre-crisis levels… In contrast, in the Philippines, Indonesia and India, where restrictions on movement and commerce are still in place and case numbers are showing little sign of coming under control, our Recovery Trackers are still at least 40% below normal levels,” it added.

Capital Economics said recovery is expected to be slow, with rising unemployment, impaired balance sheets, and weak global demand.

At the same time, the Institute of International Finance (IIF) on Thursday slashed its economic output forecast for ASEAN-4 region to -3.2%. ASEAN-4 is comprised of the Philippines, Indonesia, Malaysia and Thailand.

“Widespread lockdowns and travel bans will have a substantial impact on the tourism industry as well as domestic demand, while weakening activity in major trading partners will be a drag on exports. Forecast downgrades are largest for Thailand and the Philippines, where Q1 data already show substantial weakness, and Malaysia, where a longer-than-expected lockdown will be challenging for the economy,” IIF said in its latest Macro Notes “ASEAN-4: Worst recession since the Asia crisis.”

The region’s fiscal response is bigger than most emerging markets, IIF said it is uneven with Indonesia’s at 4.6% of GDP to Thailand’s at 11%.

“On the monetary side, we expect central banks to continue to inject liquidity via open market operations and bond purchases, while delivering further policy rate cuts. Overall, we expect the region to fare better than most other EMs (emerging markets), with the contraction most severe in 2020 Q2, and expect a healthy recovery in 2021,” it said.

The Philippine economic team projected GDP to contract by 2-3.4% this year before rebounding to 8-9% in 2021. — Beatrice M. Laforga

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