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Additional options for submission of 2019 ITR and attachments

Prior to the pandemic and the various quarantines imposed in various parts of the country, the hard copy of duly filed Income Tax Return (ITR), along with the required attachments, had to be submitted manually and stamped “Received” at the Large Taxpayers Division (LTD)/Revenue District Office (RDO) where the taxpayer is registered, within 15 days from the statutory due date or date of filing/payment of the ITR, whichever comes later. This year, due to the state of emergency, the filing and payment of income tax have been extended until June 14. However, as June 14 falls on a Sunday, the deadline is automatically extended to the next working day (June 15). Consequently, the submission of the duly filed 2019 ITR and its attachments has been extended until June 30.

Considering social distancing restrictions, taxpayers are now given additional options under Revenue Memorandum Circular (RMC) No. 49-2020 to submit their filed 2019 ITR and its attachments. Accordingly, they may opt to submit their returns through the nearest Revenue Collection Officers (RCOs) or the online eAFS.

OPTION 1 — SUBMISSION THROUGH RCOS
The first alternative is for taxpayers to manually submit their duly filed 2019 ITR with its attachments to the RCOs nearest to them, notwithstanding RDO jurisdiction. For instance, if the taxpayer is registered in Makati City but is currently in Cebu City, the ITR and its attachments can be manually submitted to the RCO of Cebu City. The RCO will then forward the documents to the RDO in Makati where the taxpayer is registered.

For ITRs paid online through the facility of the Authorized Agent Banks (AABs), the RCOs shall stamp “Received” on the first page of the ITR, balance sheet, income statement, and the external auditor certificate. For ITRs filed electronically, the RCOs will only stamp as “Received” the Filing Reference Number generated from the eFPS or the e-mail confirmation from the eBIR Forms System and the financial statements.

OPTION 2 — SUBMISSION THROUGH ONLINE EAFS
As an alternative to physical submission, taxpayers are also given an option to submit the duly filed 2019 ITR and attachments electronically through the eAFS system of the Bureau of Internal Revenue (BIR). The eAFS is available to all types of taxpayers, and there are no requirements for technical specifications or software installation. It is a web-based system and can be used if the taxpayer has access to a browser and a reliable internet connection.

ENROLLMENT IN EAFS
The eAFS or the portal for online submission can be accessed through the BIR webpage at www.bir.gov.ph by clicking the eAFS icon. Enrollment is required, and the taxpayer should supply all the necessary information such as the taxpayer’s data, name of authorized tax agent/representative, and login information. Once all the information has been encoded, the Statement of Undertaking will appear. The taxpayer will have to click “Accept” for the enrollment to proceed.

The confirmation message and an activation link will then be sent to the taxpayer’s designated e-mail. The activation link must be clicked within 72 hours to activate the account. Otherwise, the enrollment will be discarded. Note that the system is Tax Identification Number (TIN) and e-mail sensitive. This means that the TIN and e-mail address can only be registered once; thus, all the information provided must be correct. Once enrollment is done, there is no mechanism for amending the information submitted.

UPLOADING TO EAFS
The attached documents are grouped into three types: Income Tax Return (File 1), Audited Financial Statements (File 2), and the Other Required Attachments (File 3). The taxpayer must attach the appropriate documents to upload to every file box. To upload and submit the files thru eAFS, the taxpayer must scan the documents, save them as PDF files, and name them accordingly as prescribed in the RMC.

The eAFS will acknowledge the successful submission by issuing a system-generated Transaction Reference Number (TRN) and an e-mail confirmation with the TRN to the taxpayer. The TRN shall serve as proof of submission by the taxpayer, in place of the manual “Received” stamping. In case of corporations and other juridical persons who also need to submit the audited financial statements (AFS) to the Securities and Exchange Commission (SEC), the TRN shall serve as proof of submission to the BIR. The taxpayer must print the TRN and attach it to the AFS for submission to the SEC.

RETENTION PERIOD
After submitting the ITR and its required attachments, the taxpayer shall keep the original copies of the digitally submitted documents as required under Section 235 of the Tax Code. Under Revenue Regulations (RRs) No. 17-2013 and 5-2014, all books of account, subsidiary books, and other accounting records must be kept by the taxpayer for 10 years. For the first five years, the preservation of accounting records must be in hard copy. For the sixth to the tenth year, accounting records may be preserved only in electronic form based on the guidelines of the RR.

Based on RMC No. 49-2020, the options to submit to the nearest RCOs or online would seem to apply only for calendar year taxpayers with respect to their 2019 ITRs and their attachments, in the absence of a provision including in the coverage the submission of amended ITRs and AFS for prior years, and those with a fiscal year ending Jan. 31, 2020, or onwards. It would be good for the BIR to release a circular clarifying this matter, especially since Jan. 31 year-end taxpayers are due to submit the same documents by July 15. Not only will it dispel confusion but also minimize the influx of taxpayers at the RCOs given the restrictions on social distancing.

Thinking even further ahead, it would certainly be a big boost to the country’s ease of doing business status if the eAFS option is made available on a more permanent basis. Perhaps it could even be expanded to include other documents that are still manually filed (or in electronic format but still physically filed) like the annual inventory lists and withholding tax certificates issued to employees (BIR Form 2316) with the accompanying certified list of employees qualified for substituted ITR filing. Online tax filing and payment was introduced by the BIR 18 years ago back in 2002, but it is only now that full electronic filing of all documents has been possible. Here’s hoping that the eAFS and similar online portals become available all year round, which could be one silver lining we can attribute to the unfortunate COVID-19 cloud.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Anthony Tampoco is a manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

anthony.c.tampoco@pwc.com

Coronavirus cases near 24,000 as local death toll rises steadily

THE DEPARTMENT of Health (DoH) reported 740 new coronavirus infections on Wednesday, bringing the total to 23,732.

The death toll rose to 1,027 after 10 more patients died, while 159 more patients have gotten well, bringing the total recoveries to 4,895, it said in a bulletin.

Of the new cases, 452 results were reported in the past three days, while 288 were reported late.

DoH said there were 17,239 active cases, 816 of whom did not show symptoms, 16,340 were mild, 64 were severe and 19 were critical. There were now 56 laboratories licensed to test coronavirus samples.

Health Undersecretary Maria Rosario S. Vergeire said zoning guidelines for specimens to be processed by laboratories would help address the backlog.

Under the rules, a laboratory will handle and process specimens from a specific area, she told an online news briefing.

Meanwhile, the palace said infections should ease somehow before the lockdown in Manila, the capital and nearby cities could be eased further, presidential spokesman Harry L. Roque told the ABS-CBN News Channel.

“We are still looking for some kind of data that would indicate that Metro Manila will not spark a second wave,” he said. “We cannot afford a second wave.”

President Rodrigo R. Duterte locked the main Philippine island of Luzon in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the lockdown on the island twice and thrice for Metro Manila, where COVID-19 infections are mostly concentrated. The lockdown in the capital region has since been relaxed from an enhanced to a general community quarantine. Some businesses have been allowed to reopen with minimal workforce.

Metro Manila and Cebu were placed under a general community quarantine on June 1 along with Cagayan Valley, Central Luzon, Calabarzon (Calamba, Laguna, Batangas, Rizal and Quezon), Pangasinan, Albay, Mandaue City, Zamboanga City and Davao City.

Others were put under a more relaxed modified general community quarantine.

Mr. Roque separately told state broadcaster PTV-4 the government was having a hard time to bring down the number of infections, unlike New Zealand.

The South Pacific nation, with a population of five million lifted all domestic coronavirus restrictions on Monday after its final coronavirus disease 2019 patient was cleared.

The country has had 1,154 confirmed COVID-19 cases and 22 deaths. Prime Minister Jacinda Ardern said strict border controls would remain in place but restrictions such as social distancing limits on public gatherings were no longer needed, AFP reported.

Mr. Roque said the Philippines, which has more than 100 million citizens, would have a hard time eliminating the virus.

“We are already 40 million in Metro Manila alone and we are cramped,” he said. New Zealand, on ther hand, is just the size of Luzon, he added.

Mr. Roque said an inter-agency task force made up of Cabinet officials had approved a resolution allowing local governments to impose lockdowns in smaller subdivisions where infections have been rising.

The task force is expected to meet this week to discuss a decision on the metro lockdown. — Vann Marlo M. Villegas and Gillian M. Cortez

Measure that seeks to boost e-commerce market filed at Senate

A SENATOR has filed a bill that seeks to protect consumers from unscrupulous online traders and boost the country’s e-commerce market.

Senator Sherwin T. Gatchalian’s Senate Bill 1591 or the proposed Internet Transaction Act will create an e-Commerce Bureau under the Trade department that will act as a consumer complaint desk.

The agency will also develop programs to boost the country’s online retail sector.

Citing a Google and Temasek study, Mr. Gatchalian said the Philippine Internet economy posted a gross merchandise value of $7 billion last year.

This was lower than other Southeast Asian countries such as Malaysia with $11 billion, Vietnam and Singapore with $12 billion, Thailand with $16 billion and Indonesia with $40 billion.

“The country’s e-commerce market remains at 1.6% of the gross domestic product,” said Mr. Gatchalian, who is vice chairman of the economic affairs committee.

The proposed law will give incentives to entry-level micro enterprises by exempting them from national and local taxes in the first two years of operation.

It will also penalize online sellers that fail to register either as a sole proprietor, one-person corporation, partnership, corporation or cooperative with a fine worth 100% of the amount of the digital goods sold.

Online platforms that fail to show registered online sellers, their addresses and contact numbers and a clear breakdown of prices will be fined P500,000 to P5 million. — Charmaine A. Tadalan

Canada donates P41M to help in Philippine fight versus COVID-19

CANADA has donated CA$1.1 million (P41 million) to help the Philippines fight a novel coronavirus pandemic.

“The COVID-19 pandemic is a global threat that does not recognize borders and can only be overcome through coordinated action around the world,” the Canadian Embassy in Manila said in a statement on Wednesday.

The aid included a donation of 120,000 N95 masks worth CAD$782,0000. It is part of Canada’s CA$4.5-million in-kind contribution to six member states of the Association of Southeast Asian Nations.

It will also contribute CA$400,000 to a Philippine project on sexual health and empowerment that aims to ensure sexual and reproductive health services during the pandemic.

Canada said the project has provided health services to more than 85,000 women of reproductive age as well as adolescent girls and boys in conflict-stricken areas.

“This investment complements ongoing response activities,” the embassy said, citing the establishment of an emergency hotline for both health and gender-based violence.

It has also helped in procuring personal protective equipment for village health workers.

Canada has also helped in capacity-building for the ASEAN BioDiaspora Virtual Center within the ASEAN Emergency Operations Center Network.

“The Philippines is also one of the beneficiary-countries identified to receive COVID-19 diagnostic equipment, testing kits, reagents and laboratory consumables as part of a the CA$5-million global project,” it said. — Charmaine A. Tadalan

Regional Updates (06/10/20)

Food manufacturer commits to expand in balik probinsya sites

DAVAO City-based food manufacturer Eng Seng Food Products has committed to expand in areas identified as pilot sites for the government’s Balik Probinsya program that aims to encourage people to return to their home provinces and boost development in the countryside. Secretary Emmanuel F. Piñol, chair of the Mindanao Development Authority (MinDA), said Eng Seng President John Tan offered to open processing facilities for young coconuts for export to China and bottling facilities for Spanish sardines. The company, Mr. Piñol wrote on his Facebook page, “has offered to establish processing facilities in Lanao Del Norte and Zamboanga Del Norte to provide jobs to returning informal urban dwellers under the Balik Probinsya, Bagong Pag-asa Program (BPBPP).” He added that Eng Seng, along with several other food processing companies, are looking for an area in the Northern Mindanao Region where they can set up an export processing zone for products from Mindanao, especially those produced in the Balik Probinsya communities. MinDA coordinates the implementation of the program in Mindanao. Mr. Piñol said the first group of BPBPP beneficiaries are expected to arrive in Zamboanga Del Norte on June 17. They will stay in a quarantine facility for 15 days, during which they will also be undergoing training organized by the Technical Education and Skills Development Authority. — MSJ

Another arrest warrant issued against 4 Yanson siblings for taking vehicles of disputed bus firm

AN arrest warrant for carnapping charges has been issued against four Yanson siblings, who are in an ownership battle against two other siblings and their mother over the family’s bus firm Vallacar Transit Inc. (VTI). Judge Sue Lynn Lowie-Jolingan of the Bacolod City Regional Trial Court Branch 53 issued warrants of arrest on June 5 and 6 against Emily, Roy, and Ricardo Yanson Jr., and Maria Lourdes Celina Yanson-Lopez and three accomplices for violation of the New Anti-Carnapping Act of 2016. No bail was set. The case stems from a complaint filed by VTI Operations Manager Gary Manayon for grave coercion and carnapping when the four, along with their security guards, tried to take possession of VTI’s main office in Bacolod City in July 2019, according to a press statement from the company on Wednesday. The carnapping case involves a Mitsubishi L-300 vehicles and two Foton wing-vans. VTI legal counsel Gerry Llena said in a text message that as of June 10, “no report yet from the police insofar as the service of the warrant.” Another arrest warrant for the coercion charge was issued in May by Judge Abraham A. Bayona of the Bacolod court Branch 7. In a report to the court, Police Col. Anthony C. Gantang, officer-in-charge of Negros Occidental police Criminal Investigation and Detection Group, said the four accused were not in their residences and reportedly abroad when they tried to enforce the warrant on May 31 and June 1. VTI is the country’s biggest bus company, operating through Ceres Liner and sister firms Rural Transit of Mindanao, Inc., and Bachelor Express, Inc. Leo Rey Yanson, supported by the family matriarch and sister Ginette, was reappointed president during the shareholders’ meeting held at the company’s head office on Dec. 7, 2019. On the same day, another shareholders’ meeting led by the four was held at the Seda Hotel Bacolod where Maria Lourdes Celina was elected president. — MSJ

Nationwide round-up

DoLE plans to extend emergency employment program for informal sector

THE Department of Labor and Employment (DoLE) plans to extend the period of its emergency employment program for informal sector workers who lost their livelihood due to the coronavirus disease 2019 (COVID-19) crisis. In a briefing on Wednesday, Labor Secretary Silvestre H. Bello III said they plan to prolong the program’s employment period to up to six months from only 10 days. “Ito iyong (This is the) emergency employment program na originally 10 days, now we will make it three to six months emergency employment para sa ating mga (for our) informal workers,” he said. He was referring to the TUPAD program, which stands for Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers. Mr. Bello said the plan will depend on the budget that will be approved by Congress. Under the TUPAD program, beneficiaries are paid based on their location’s corresponding daily minimum wage. — Gillian M. Cortez

Law establishing National Academy of Sports signed

PRESIDENT Rodrigo R. Duterte has signed into law the bill for the establishment of the National Academy of Sports, a secondary education institution that will be built within the New Clark City in Tarlac. “It is about time that we establish a learning institution focused on sports,” Senator Christopher Lawrence T. Go, one of the bill’s authors, said on Wednesday. The New Clark City has a new sports hub that was first used as venue during the 30th Southeast Asian Games in December 2019. The academy will offer a secondary education program, integrated with a special curriculum on sports. Mr. Go said full scholarship will be offered to qualified natural-born high school students. “I firmly believe that with this law, we will be able to catch up with the rest of the world in terms of sports development,” Mr. Go said in a statement. The law, which goes into the books as Republic Act No. 11470, was signed June 9 in a ceremony in Davao City. The bill was among the priority legislative measures mentioned by Mr. Duterte in his fourth State of the Nation Address. — Charmaine A. Tadalan

Rep Biazon calls on gov’t to set joint task force on Facebook clone accounts

MUNTINLUPA Rep. Rozzano Rufino B. Biazon called on the administration to create a joint task force that will handle the proliferation of Facebook clone accounts, citing risks to safety and private data of users. The task force will be composed of representatives from the Department of Information and Communication Technology, National Bureau of Investigation, Police Cybercrime Group, National Privacy Commission, and other concerned agencies. Mr. Biazon also filed a resolution for a House of Representatives inquiry into the breach, which he said “opens up its users, particularly the youth, to a slew of exploitations like the threat of cybercrime such as online bullying, harassment, identity theft, violations of privacy and others.” Quezon City Rep. Anthony Peter D. Crisologo filed a similar resolution on Tuesday. The Department of Justice said on Monday that it has started looking into “all possible angles and leads” on the duplicate accounts. — Genshen L. Espedido

DoH says benefit distribution almost done for health workers who have died, severely-ill from coronavirus

THE Department of Health on Wednesday announced that it has distributed almost all of the cash benefits for health care workers who were severely-ill and the families of those who died due to coronavirus infection at the June 9 deadline set by President Rodrigo R. Duterte. In a statement, DoH said 30 families of the 32 health care workers who died have received the P1 million check. “The Department is coordinating with the heirs of two fallen health care workers who are based abroad,” it said. Claimants of two other health care workers were delisted as they were found ineligible based on the diagnoses specified in their death certificates. The 19 health care workers who contracted the disease and were classified as severe cases have also received their P100,000 cash grant each. The cash benefit is mandated under the Bayanihan to Heal as One Act, which authorized the President to realign budget in response to the coronavirus pandemic. — Vann Marlo M. Villegas

The world needs an effective WTO more than ever

By The Editors, Bloomberg Opinion

THE DIRECTOR-GENERAL of the World Trade Organization, Roberto Azevedo, recently said he was stepping down early. Exasperation over the WTO’s diminished standing appears to have been a factor. That’s understandable. Step by step, governments have pushed an institution with an essential role in promoting global growth toward complete irrelevance.

Azevedo’s departure offers a moment to reflect. His replacement should certainly be a heavyweight, to affirm the WTO’s value. More crucial is that governments from now on allow and empower the body to do its job. The US, especially, should learn to see the WTO once again as a global asset and not a confounded nuisance.

The WTO has two main functions. It provides a way for governments to settle trade disputes in an orderly fashion, so that squabbles don’t escalate into tit-for-tat trade wars. And it serves as a forum for negotiating big new agreements to promote trade and hence growth.

In both respects, the body has been undermined. President Donald Trump and his advisers mistakenly think the dispute-settlement system puts the US at a disadvantage. They’ve paralyzed this part of the WTO by blocking the appointment of judges to its appellate body. And governments everywhere have long conspired to block the trade-expansion mission, preferring smaller regional deals to a new global pact. The last big round of trade-reform talks fizzled out after years of getting nowhere.

Governments should revive both functions. Orderly settlement of disputes is better for all concerned than the worsening breakdown in trade relations that the Trump administration has engineered. Washington’s tactics haven’t just harmed the global trading system, they’ve directly backfired, leaving US consumers and producers worse off. If unresolved trade disputes are left to proliferate in this way, everybody loses — all the more so amid the risks arising from the COVID-19 pandemic.

For now, the WTO’s other main purpose — lowering trade barriers — might seem less valuable, but it’s a mistake to think so. Existing trade accords need to be kept up to date, because technological change is driving new patterns of commerce and raising new issues. Other challenges arise as well. In particular, China has put the system under increasing stress because its non-market model is an awkward fit, and its government still relies heavily on trade-distorting subsidies. New approaches are needed to deal with this. And though previous rounds of talks cut most tariffs to very low levels, administrative and other impediments to trade persist. All these frictions serve, in the end, to curb living standards.

So there’s no lack of new trade-promoting work for the WTO to do. The method preferred of late — smaller pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — is second best, because it creates insiders and outsiders, with external economic borders that divert and distort trade. Wider multilateral accords are hard to do, admittedly, but that’s what the WTO was for and it’s still the right goal. The idea worked superbly for decades after 1950, and it could work again, given the political will.

For the moment, to be sure, that critical ingredient is missing, especially in the US. One can only hope this might change, and that discussions about Azevedo’s successor remind governments of what they risk losing if they let the WTO fade to nothing.

BLOOMBERG OPINION

Distance education

The jury is still out on whether distance education, or even physical distancing in education, will effectively keep our children healthy, physically safe, and properly educated during the COVID-19 pandemic. I am sure there is plenty of research out there on the pros and cons of distance learning. More should be made public to help people make informed decisions based on data.

A discussion among policymakers — and even among parents — is when and how the school year should start for 2020-2021. As a parent, I am uncomfortable with sending my child back to school this August. But the reality is that many parents cannot afford to keep their children at home all throughout the year, either. And, distance learning is not easily accessible to everybody.

Growing up, I received part of my education through television shows like Sesame Street and The Electric Company. I also recall specialized shows that successfully educated adults. Tele-Aralan ng Kakayahan, hosted by Cecilia Garrucho, was put together by Great Wall Advertising, Philippines, Inc. and Philip Morris International as a public service and skills development program. It ran for a number of years. Then, there was Ating Alamin, hosted by Gerry Geronimo, a farming show that was put together by Advertising and Marketing Associates (AMA) along with the Department of Agriculture. At the time, TV must have been the most effective medium for “distance learning.” Radio didn’t allow for visuals, while print was limited by how much space newspapers and magazines could devote to educational features. Today, however, the internet and online modes, along with computers and mobile devices, appear to be the media of choice.

If only we acted with urgency on initiatives dating back around 13 years ago, then maybe we wouldn’t be having too many problems around starting school this year. I recall that it was some time in 2007 when the initiative was taken to improve Philippine education through the proposed Philippine Cyber Education Project or CyberEd.

The project objective was to network or link all public schools electronically. Thailand already had a similar system of distance learning in place, and served as a good model for the project. But the Department of Education (DepEd) was never given the opportunity to pilot test the proposed project. To this day, I still believe the proposal deserved public and government support and approval.

The CyberEd project would have used satellite technology to deliver educational services to public elementary and secondary schools nationwide. Schools would have been linked to a nationwide network that would provide 12 video channels, wireless wide area networking, local area networking, and wireless Internet connectivity.

Almost 38,000 schools, or 90% of all public schools nationwide at the time, would have been connected by 2010. Using satellite technology, the DepEd would broadcast live classes conducted by national master teachers simultaneously to millions of students nationwide. These live broadcasts would feature lectures and presentations from master teachers as well as courseware on demand and other resource materials.

Another approach to education reform at the time was PBEd or the Philippine Business for Education initiative. Its objectives included soliciting support from businesses for strategies and actions that could direct, accelerate, broaden, or sustain education reform. It also aimed to mobilize commitment in support of strategic action.

The Department of Education actually supported CyberEd, if I recall correctly. The Arroyo Administration even provided a budget for it. But there was much political opposition to the project, as it was beleaguered by corruption allegations and tainted by Chinese involvement. I recall in particular Congressman Ronnie Zamora, then Senator Chiz Escudero, and even the business sector’s PBEd were all opposed to it.

Escudero had claimed the $466-million cyber education project should be shelved in favor of more classrooms. He also claimed that the project would not lower the government cost for teachers and training. It should be noted that CyberEd, had it pushed through, would have competed with Knowledge Channel of ABS-CBN.

Escudero, in a newspaper interview, said taped lessons, like those of the Knowledge Channel, were a better alternative since students would not miss lessons when classes need to be suspended due to inclement weather. Escudero said CyberEd should have considered the fact that 7,000 barangays in the country didn’t not have electricity. But isn’t it that even Knowledge Channel will require the use of an appliance that required electricity?

And weighing in on the opposition to CyberEd program, Peter AV Perfecto, associate director of PBEd, said pursuing the project would sour relations between DepEd and the private sector, especially with private business groups who extended billions in financial assistance to public schools for the construction of school buildings and classrooms as well as vital teacher training programs.

Looking back, I honestly believe we could have benefitted from the CyberEd project had it been given the chance to materialize. We would have been better equipped by now to undertake distance learning. And we would have learned from our mistakes and would have gained enough experience to know what can and cannot work in distance education. And we would have been better prepared for catastrophic events like COVID-19.

There have been many initiatives since then to help improve the public school system, including the transition to K-12. We have added to classrooms, and devoted resources to teacher training. But we still hesitated to invest in more technology-driven systems and approaches to education and learning. Now, both students and teachers hesitate to physically report to schools and face each other for fear of getting sick. What do we do with all those vacant classrooms?

Perhaps our children are actually doing better in school now than back then. But the thing is, COVID-19 has just made everything difficult and unpredictable, and it is unclear if policymakers have the strong resolve to put effective approaches in place. CyberEd is water under the bridge. And there is no telling if we would have been better off now had the project materialized.

But we also realize that nowadays, we need technology in education more than ever. Perhaps we should revisit past initiatives like CyberEd, and maybe enhance it or improve on it and see how it can be made relevant, useful, and practical in today’s environment. Technology has likewise advanced, and maybe a project like or similar to CyberEd may be even more timely to implement now given improved satellite and wireless technologies and mobile devices.

We should also learn from the success of educational TV shows like Tele-Aralan and Ating Alamin in terms of content development, and how some of their positive elements can be replicated for dissemination on free TV and online. The economy is in trouble, and many people are struggling. Economic survival is paramount. Adult education is just as important for those in dire need of new skills and opportunities. But, keeping our children safe, healthy, and educated is just as if not more important. They are our future.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

How COVID-19 gave cover for a subtle power grab

By Daniel Moss

IS THE PANDEMIC a boon to autocracy? In Malaysia, efforts to constrain the coronavirus have chipped away at the very democratic principles that for decades made the country a natural US. ally and bastion of stability in a volatile region.

Facing the worst economic crisis in decades, Kuala Lumpur last week rolled out its fourth stimulus package since February. Together these fiscal salvos add up to about $70 billion, or 20% of gross domestic product. Such dramatic numbers are entirely necessary. The World Bank expects emerging-market economies will shrink the most since 1960 this year.

Yet this is a huge amount of money to be disbursed by decree, as the government has done. Not one of the packages has been passed by the nation’s parliament, which hasn’t debated any bill for months and assembled for only a few hours in May for a ceremonial event. That’s in stark contrast to Japan, South Korea, Singapore, Indonesia, and Thailand, where an array of COVID-19-combating supplementary budgets have been put up for debate and, in most instances, approved by lawmakers.

Prime Minister Muhyiddin Yassin was sworn in on March 1 and ran straight into the crisis of a generation. Malaysia was in the early days of grappling with rising coronavirus infections, and trading partners were beginning to close their borders. Weeks later, the premier instituted a nationwide lockdown, which has been extended a couple of times and only started lifting gradually in recent weeks. The restrictions were warranted given the danger to public health, as was the case in almost every nation on the planet. They were also convenient given that the government has every reason to avoid votes in parliament that would expose Muhyiddin’s razor-thin majority and possibly undo it.

To ascend to power, Muhyiddin had to wrest control from Mahathir Mohamad, a wily political veteran who in 2018, at the age of 92, made a comeback by defeating Najib Razak amid allegations of corruption befitting a Hollywood movie — replete with money laundering, luxury yachts, and billions missing from a state investment fund. Muhyiddin pulled this off by leading a breakaway group of parliamentary members from Mahathir’s coalition in what amounted to a party coup between sessions. The defections were enough to secure a majority. On that basis, the monarch tapped Muhyiddin for leadership, rejecting his predecessor’s claims that he still had broad support.

Mahathir has made clear he would bring forward a no-confidence motion at the first opportunity. Yet there hasn’t been a single parliamentary vote since Muhyiddin was appointed. Best to stay in recess and not take chances if you don’t know the result, the prime minister reasons, according to observers in Kuala Lumpur.

In the meantime, Muhyiddin has been working overtime to hang on to his fragile majority. Based on seating arrangements for the ceremonial King’s speech last month, his bloc commands 113 seats, the barest of majorities in the 222-seat house. The cabinet he assembled has been showering members with government jobs and posts at state-linked companies. Perhaps no one has benefited more than Muhyiddin’s coalition partners in the United Malays National Organization, or UMNO, despite the stain of its ties to Najib. Now, the ancien regime is back in the game without a ballot cast. The longer the pandemic remains a cloak to keep parliament shut, the more UMNO can secure its new role without oversight.

The failure of governance COVID-19 has facilitated isn’t to say Mahathir had a perfect run. During his first term as leader from 1981 to 2003, his record was mixed: Growth soared for much of that term, though power was centralized in his office, dissent was frowned upon and the press was muzzled. His main political rival in the 1990s, Anwar Ibrahim, was jailed. However, the electoral process did work. At the time, the opposition complained about a tilted playing field, but Mahathir had the numbers and was never afraid to test them.

One of his biggest regrets must be the early mentorship of Najib, who has faced charges of graft related to the 1MBD scandal. (Najib says he is innocent.) The first trial wrapped up last week and a verdict is due July 28. It’s not out of the realm of possibility that, if acquitted, Najib returns to UMNO leadership, and ultimately one of the top jobs in the country. He remains a member of parliament and his supporters control key parts of the party’s machinery. With UMNO backing vital to Muhyiddin’s survival, he would have enormous clout.

Given signs of a deep recession, Malaysians may not object to Najib’s return. Legislative protocol sounds abstract when your priority is keeping a job and putting food on the table. Democracy isn’t necessary for money to flow; China’s measures to fight the virus show that well enough.

Malaysia’s government, however, is accountable to voters, which means there has to be some scrutiny. In addition to the more than 400,000 fatalities worldwide, COVID-19 has quarantined democracy in this crucial corner of Southeast Asia.

BLOOMBERG OPINION

Inter-Agency to Terminate Functional businesses (IATF)

The Philippines has perhaps the most draconian, most hysterical lockdown policies in East Asia and even in other countries in the world. From mid-March to end-May, all public transportation — planes, buses (provincial and Metro Manila), jeepneys, regular taxis and TNVS, tricycles and motorcycle taxis — were disallowed. Taxis were allowed to operate starting June 1, the rest were still prohibited.

Three economic dysfunctions have occurred. One, our GDP contracted at -0.2% in the first quarter (Q1) of 2020, the second biggest drop in the region from Q4 2019 next to China. Two, our unemployment rate in April rose more than three times the January level, the second highest next to India in the whole of Asia. And, three, our stock market is -18% lower than it was a year ago, the second lowest to Indonesia. Even though our COVID-19 deaths per million population are among the lowest in the world (see the table).

Other notable things and comments from the numbers shown in the table are as follows:

One, among the selected European countries, no-lockdown Sweden is the only one that did not experience a growth contraction in Q1 2020. It experienced a rise in unemployment but not as high as that in Spain, and has had growth in the stock market.

Two, hard lockdown US experienced modest growth in GDP and the stock market (DJIA) but it experienced a four-fold increase in its unemployment rate.

Three, no or light lockdown South Korea, Taiwan, and Japan have growth in their stock markets, also in GDP, except Japan which has had a contraction in growth even before the pandemic.

Four, the Philippines’ GDP was pulled down by low growth in household consumption (only 0.2% growth) while private investments contracted to -18.3%. The big challenge is to raise these two which constitute about 83% of GDP.

Five, aside from the Philippines’ three-fold increase in its unemployment rate, new entrants to the labor force declined from 44 million in April 2019 to only 41 million in April 2020. The corresponding labor force participation rate thus declined from 61.3% to only 55.6% over the same period.

Six, the big decline in the Philippine stock market reflected not only the closure of many businesses starting mid-March, but also the deterioration in the investments climate. Two recent high-profile examples:

One is President Duterte’s unreasonable outburst against the two water concessionaires and the cancellation of their contract extension until 2037. Two is the non-renewal of ABS-CBN’s franchise, partly because of its issuance of Philippine Depositary Receipts (PDRs) to foreign investments, even while other media outlets like GMA have also issued PDRs and the issue was not taken against them.

I saw several documents with plans to jumpstart the Philippine economy. Many of these papers are good and proactive, except that there is nothing in them that admits the hard lockdown was wrong. Since it was not wrong, then the government can continue it today and tomorrow.

In particular, there is a big focus on the government’s Build, Build, Build (BBB) program. With so many restaurants and bars, hotels and shops, bus lines and other businesses already bankrupt or shutting down in the next few weeks and months, are the waiters and cooks to become construction workers? The bus drivers and plane pilots, are they to become backhoe drivers and crane operators? Are these easily doable? Likely not.

Then there is the mandatory social distancing which means that the cost of people mobility in public transportation — planes, boats, buses, vans, jeepneys — must further increase, or these public utilities will go bankrupt.

It is not what businesses should do to survive bankruptcy. Rather, it is what government should NOT do. There are too many bawal-bawal, restrictions and prohibitions in our lives already. Government should step back from too many restrictions that so far have succeeded in crippling and terminating many functional businesses. Open up the economy, wide and clear.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

Can we change the topic now?

 

AS RECENTLY as mid-February, yes of this year, if somebody mentioned the phrase, “social distancing,” we would have associated it with a lovers’ quarrel — I don’t want you near me, you beast. Yes, no flowers on Valentine’s Day, and no responses to text messages, except — let’s just move on. But starting mid-March, we just got caught up in the health crisis and we could talk of nothing else. Social distancing had lost any romantic connotation.

Because we were mostly locked down at home, there were no real conversations outside of family concerns like money, and how fast it seemed to dwindle, and an inordinate amount of time spent on news related to the pandemic. These included the trophy for best countries and how they were able to avoid the contagion, led mostly by mothers — women seem to know how to handle panic. Then there were the promised cures being tested, the vaccine going into human trials, and, yes, how the new normal was going to unroll — forget friendships and birthday parties. What about the hit on the economy, the resulting loss of jobs, the closing of businesses. We were working ourselves up.

Can we change the topic now?

Is this attempt to think of something else just a coping mechanism, in the form of denial? Of course. How else can we move on with life? Here are topics we have almost forgotten because of that pandemic elephant in the room.

Is office politics having to do with back-stabbing of rivals, grabbing credit for someone else’s ideas, and moving to a bigger room passé? How can you throw out casual snipes (what is his value added?) for the boss to digest if nobody is around? The only meetings are taking place with everybody in the loop.

If most are working from home and dealing with the distractions of children also out-of-school, and competing for computer time, what happened to the issue of work-life balance? Okay, that is still related to the big “P.”

Let’s try again.

What about social graces? Eventually, we will be going out to weddings and wakes where we will meet strangers from the bride’s side of the family, or cousins of the departed. There will be social gatherings again, not just of serenaders. How do you introduce yourself if you are among the lucky ones who still have a business or a job? What do you do? Staying at home and waiting for meetings. Your office? Oh, you gave that up and now work from home. See how complicated it gets.

You can see how hard it is to pick a subject totally unrelated to the P. Even when they do come up with the vaccine, the overhang of the quarantine woes will come up and, like a contagion too, affect future topics of conversation. Perhaps, conversations will eventually be unmoored from this health crisis. We haven’t talked about the volcanic eruption for a while. And Marawi just popped up in the news radar for a bit.

Maybe when we get back our cultural moorings, we will have more interesting things to discuss. Theater will not be seen only over YouTube. In a few months, maybe next year, there will be musicals again you can watch live, where you don’t have to wear face masks, unless you’re in the cast of Phantom of the Opera as one of the ensemble cast for the song, “Masquerade.’

It’s not just the economy that got whacked by the lockdown. Psychological phobias like the now instilled fear of crowds have also unraveled the social fabric of culture, values, and social bonds of long standing. (Can you still trust your regular barbershop?) Somehow, we cannot help talking about what we are afraid of. Maybe, changing the topic allows us to focus on other things, like disposable income and foodie hunts.

Life shouldn’t be overwhelmed by just a single concern. There must be other things we can talk about with other people again. We need to stretch our mind and explore old topics. T.S. Eliot puts it best in his “Four Quartets”: “We shall not cease from the exploration, and the end of all our exploring will be to arrive where we started… and know the place for the first time.”

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

No Tiger, no fans as PGA Tour set to make return

TORONTO — Tiger Woods and the fans will be missing when golf returns this week after a three-month hiatus due to the coronavirus disease 2019 but the Charles Schwab Challenge will otherwise get the full major treatment with a strong field on display.

Led by world number one Rory McIlroy, the world’s top five players and 101 PGA Tour winners will be at the stately Colonial Country Club outside Forth Worth, Texas.

Play starts on Thursday in the first tournament since the Players Championship was halted in mid-March by the pandemic.

With NASCAR, IndyCar and the UFC already back in action, the PGA Tour will become the latest North American sport to emerge from the COVID-19 shutdown.

But like the conditions surrounding those sports, golfers will be returning to a very different-looking arena where social distancing and the results of nasal swabs and thermal scans will be as important as what they put on their scorecards.

The most jarring change will be the absence of galleries that would normally flock to any tournament featuring the world’s best players.

Golf’s biggest name and winner of 15 majors, Woods will be the only noticeable absentee in the elite field as he continues to get his game in shape after recovering from back issues.

Television coverage of the Charles Schwab will be extensive and have all the technological bells and whistles, including a few new features such as Augmented Reality technology virtual signage.

Some golfers will also wear microphones in an effort to liven up a subdued soundtrack.

Whatever technology or viewer-friendly gimmicks are rolled out they will not replace the familiar buzz that resonates across the course when a player holes out or drains a monster putt.

“The atmosphere will definitely be different,” world number four Justin Thomas told reporters after a practice round on Tuesday. “But then again, everything is different than what we’ve been used to the last three months.”

While the PGA Tour has put together a detailed protocol outlining in great detail what golfers can expect in the way of testing and procedure when they arrive at the Colonial, no one knows exactly what they will see when action gets under way.

Spain’s world number two Jon Rahm, who was self-isolating in the United States while his family was quarantined in Spain, said he did not pick up a club for seven weeks.

South Korean Im Sung-jae, leader of the Fedex Cup standings, flew in his coach to his Florida base to keep him in shape.

“You’re going to see definitely a wide variety of scores, not just because of the golf course but just to see who used their time well or not,” said Thomas. “I sometimes feel rusty after two, three weeks off, let alone four months.

“That’s going to be weird, but at the same time it’s going to be weird for everybody, so I’m just going to hopefully try to get back into that as quick as I can.” — Reuters

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