Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 8215

Facebook faces US lawsuits that could force sale of Instagram, WhatsApp

The complaints on Wednesday accuse Facebook of buying up rivals, focusing specifically on its previous acquisitions of photo-sharing app Instagram for $1 billion in 2012 and messaging app WhatsApp for $19 billion in 2014.

WASHINGTON/PALO ALTO — Facebook Inc. could be forced to sell its prized assets WhatsApp and Instagram after the US Federal Trade Commission and nearly every US state filed lawsuits against the social media company, saying it used a “buy or bury” strategy to snap up rivals and keep smaller competitors at bay.

With the filing of the twin lawsuits on Wednesday, Facebook becomes the second big tech company to face a major legal challenge this year after the US Justice Department sued Alphabet Inc.’s Google in October, accusing the $1 trillion company of using its market power to fend off rivals.

The lawsuits highlight the growing bipartisan consensus to hold Big Tech accountable for its business practices and mark a rare moment of agreement between the Trump administration and Democrats, some of whom have advocated breaking up both Google and Facebook.

The complaints on Wednesday accuse Facebook of buying up rivals, focusing specifically on its previous acquisitions of photo-sharing app Instagram for $1 billion in 2012 and messaging app WhatsApp for $19 billion in 2014.

Federal and state regulators said the acquisitions should be unwound—a move that is likely to set off a long legal challenge as the deals were cleared years earlier by the FTC.

“For nearly a decade, Facebook has used its dominance and monopoly power to crush smaller rivals, snuff out competition, all at the expense of everyday users,” said New York Attorney General Letitia James on behalf of the coalition of 46 states, Washington, DC, and Guam. Alabama, Georgia, South Carolina, and South Dakota did not participate in the lawsuit.

Ms. James said the company acquired rivals before they could threaten the company’s dominance.

Facebook’s general counsel Jennifer Newstead called the lawsuits “revisionist history” and said antitrust laws do not exist to punish “successful companies.” She said WhatsApp and Instagram have succeeded after Facebook invested billions of dollars in growing the apps.

“The government now wants a do-over, sending a chilling warning to American business that no sale is ever final,” Ms. Newstead said.

Ms. Newstead also raised doubts about alleged harms caused by Facebook, arguing that consumers benefited from its decision to make WhatsApp free, and rivals like YouTube, Twitter, and WeChat did “just fine” without access to its developer platform.

In a post on Facebook’s internal discussion platform, Chief Executive Mark Zuckerberg told employees he did not anticipate “any impact on individual teams or roles” as a result of the lawsuits, which he said were “one step in a process which could take years to play out in its entirety.”

Comments were turned off for Mr. Zuckerberg’s post, as well as for other posts on the lawsuits shared by Newstead and Chief Privacy Officer for Product Michel Protti, according to copies viewed by Reuters. Newstead also warned employees not to post about the cases.

Facebook did not immediately respond to questions about the posts.

PROTRACTED FIGHT
Mr. Zuckerberg told employees in July that Facebook would “go to the mat” to fight a legal challenge to break up the company, calling it an “existential” threat, according to audio of internal company meetings published by The Verge.

Although breakup remedies are rare, some antitrust experts said the case was unusually strong given damning statements by Mr. Zuckerberg plucked from Facebook’s own documents, like a 2008 email in which he said “it is better to buy than compete.”

Other experts such as Seth Bloom of Bloom Strategic Counsel said the FTC complaint was “significantly weaker” than the DOJ’s lawsuit against Google.

“We’re talking about acquisitions that are six or eight years old and it will be difficult for a court to order divestitures of many years ago,” Mr. Bloom said.

Investors echoed similar concerns.

“I do not know if the FTC or DOJ will be successful in breaking Facebook up. I’m assuming this will be dragged out in the courts as FB defends itself,” said Daniel Morgan, a portfolio manager at Synovus Trust in Atlanta, Georgia.

The lawsuits are the biggest antitrust cases in a generation, comparable to the lawsuit against Microsoft Corp. in 1998. The federal government eventually settled that case, but the yearslong court fight and extended scrutiny prevented the company from thwarting competitors and is credited with clearing the way for the explosive growth of the Internet.

Last month, Facebook said it was buying customer service start-up Kustomer, in an acquisition that the Wall Street Journal said valued Kustomer at $1 billion.

Facebook also bought Giphy, a popular website for making and sharing animated images, or GIFs, in May. That acquisition has already drawn scrutiny from the United Kingdom’s competition watchdog.

Facebook shares fell as much as 3% after the news before paring losses to close down 1.9%. — Diane Bartz, Nandita Bose, and Katie Paul/Reuters

Study links Japan’s domestic travel campaign to increased COVID-19 symptoms

TOKYO — Researchers in Japan found a higher incidence of COVID-19 symptoms among people who have participated in a domestic travel campaign promoted by the government, suggesting that it is contributing to the spread of the virus.

The findings will make dismal reading for Prime Minister Yoshihide Suga, who has defended the travel campaign, saying it was needed to stop many small businesses in the hospitality sector from going bust due to the lack of customers as a result of the virus scare.

High fever was reported by 4.8% of users of the Go To Travel campaign compared with 3.7% for non-users, according to a preprint of a study that examined data from an internet survey of more than 25,000 adults. Participants also had higher rates of throat pain, cough, headache, and a loss of the sense of taste or smell.

“The subsidy program may be incentivizing those who had higher risks of COVID-19 transmission to travel, leading to larger cases of infections,” according to the authors, who included researchers from the medical schools of the University of Tokyo and University of California, Los Angeles (UCLA).

The study was posted on the preprint server medRxiv in advance of peer review.

While the domestic tourism campaign began before Yoshihide Suga became prime minister following the resignation of Shinzo Abe due to ill health in September, Suga has been seen as a key backer of the initiative. Health experts had warned that encouraging domestic tourism risked spreading the infection from major cities to the countryside.

Japan is now suffering a third wave of COVID-19, with new cases reaching record levels in Tokyo and clusters that are straining the medical systems of Hokkaido in the north and Osaka in the west.

Even so, the nation has weathered the pandemic better than most major economies, with more than 165,000 cases and 2,417 fatalities. — Rocky Swift/Reuters

Hackers steal Pfizer/BioNTech COVID-19 vaccine data in Europe, companies say

LONDON — US drugmaker Pfizer and its German partner BioNTech said on Wednesday that documents related to development of their COVID-19 vaccine had been “unlawfully accessed” in a cyberattack on Europe’s medicines regulator.

The European Medicines Agency (EMA), which assesses medicines and vaccines for the European Union, said hours earlier it had been targeted in a cyberattack. It gave no further details.

Pfizer and BioNTech said they did not believe any personal data of trial participants had been compromised and EMA “has assured us that the cyber attack will have no impact on the timeline for its review.”

It was not immediately clear when or how the attack took place, who was responsible, or what other information may have been compromised.

The two companies said they had been informed by the EMA “that the agency has been subject to a cyber attack and that some documents relating to the regulatory submission for Pfizer and BioNTech’s COVID-19 vaccine candidate” had been viewed.

Such documents could be extremely valuable to other countries and companies rushing to develop vaccines, experts said.

“When it comes to the data submitted to these kinds of regulatory bodies, we are talking confidential information about the vaccine and its mechanism of action, its efficiency, its risks & known possible side effects and any unique aspects such as handling guidelines,” said Marc Rogers, founder of a volunteer group fighting COVID-related breaches, CTI-League.

“It also provides detailed information on other parties involved in the supply and distribution of the vaccine and potentially significantly increases the attack surface for the vaccine,” adding more ways the formulas or production could be hacked or stolen.

The companies said “no BioNTech or Pfizer systems have been breached in connection with this incident and we are unaware that any study participants have been identified through the data being accessed.”

A spokeswoman for BioNTech declined further comment. Pfizer did not respond to a request for further comment.

The Pfizer-BioNTech vaccine is a top contender in the global race to beat back COVID-19. It is already being administered in Britain.

The EMA has said it would complete its review by Dec. 29, although its schedule may change.

The EMA statement gave few details about the attack, saying only it was investigating with help from law enforcement.

“EMA cannot provide additional details whilst the investigation is ongoing,” it said in a statement.

US law enforcement and cybersecurity officials did not respond to requests for comment.

Hacking attempts against healthcare and medical organizations have intensified during the COVID-19 pandemic as attackers ranging from state-backed spies to cybercriminals hunt for information.

Reuters has previously reported on allegations that hackers linked to North Korea, South Korea, Iran, Vietnam, China, and Russia have on separate occasions tried to steal information about the virus and potential treatments.

Reuters has documented that espionage campaigns targeted a slew of pharmaceutical and vaccine development companies including Gilead, Johnson & Johnson, Novavax, and Moderna. Regulators and international organizations such as the World Health Organization have also come under repeated attack.

“Vaccine candidates represent liquid gold to many parties, both in terms of the opportunity and the pure market value,” said Mr. Rogers, who is also vice-president at security company Okta Inc. “Information on the vaccine and access to any link in the distribution chain has significantly increased value.”

The respiratory virus, which emerged in China in late 2019, has infected more than 68 million people worldwide, according to a Reuters tally. More than 1.5 million people have died. — Jack Stubbs/Reuters

PHL foreign trade decline continues in October

PHILIPPINE international trade performance shrank in October as imports declined for the 18th straight month while exports returned to negative territory.

Preliminary data by the PSA showed merchandise exports in October contracted by 2.2% year on year to $6.202 billion, compared with a revised 2.9% growth in September and a flat 0.5% growth in October 2019.

Meanwhile, merchandise imports shrank for the 18th straight month in October by 19.5% to $7.979 billion. This was worse compared with contractions of 15.3% and 7.6% in September 2020 and October 2019, respectively.

Trade deficit for the month stood at $1.777 billion, lower than $1.783 billion in September 2020 and $3.573 billion in October 2019.

The country’s total external trade in goods – or the sum of export and import goods – was $14.181 billion in October, down 12.8% from $16.256 billion. This brought the total trade in the 10-month period to $122.151 billion, 20.2% lower than $153.159 billion a year ago.

For the 10 months to October, exports fell by 12.5% to $52.113 billion compared with the Development Budget Coordination Committee’s (DBCC) projection of a 16% fall for the year.

Meanwhile, October imports amounted to $70.038 billion, lower by 25.2% from last year’s $93.605 billion. The decline during the period was beyond the DBCC’s revised target of a 20% contraction for 2020.

Year to date, the trade balance amounted to a $17.924-billion deficit, narrower than the $34.052-billion trade gap in 2019’s comparable ten months. – Michelle Anne P. Soliman

IAU sets the pace for the better normal of aviation education with Globe

The aviation industry is undeniably one of the industries that has been heavily affected by the COVID-19 pandemic. Major airliners are downsizing their workforce, resulting in huge economic losses. Through all this, Cebu’s Indiana Aerospace University (IAU) believes that every crisis brings new opportunities— the opportunity to thrive and flourish in the new normal of education by designing a blended distance learning program for both the Basic Education and the College, adherent to the emergency remote teaching paradigm.

IAU sought the assistance of Globe Telecom to provide continuous online education to its students via an integrated Learning Management System (LMS) named ALTIMETER (Alternative Instructional Method Electronic Resource). Powered by Brightspace, students will meet with their teachers and classmates virtually at the ALTIMETER once or twice a week or on an arranged schedule. In the offline distance learning mode, students will learn on their own through module or course packs designed by their teachers and professors.

These self-directed instructional materials include worksheets, activity sheets, and other electronic learning resources accessible at the ALTIMETER. It requires only minimal data/internet bandwidth to run and can readily be downloaded on mobile phones, laptops, or desktop computers; hence, it is convenient and user-friendly.

“With the new landscape of education in the Philippines, Globe aims to help learning institutions like IAU digitally transform and create fun learning experiences for their students. We do this by providing the right solutions that will best cater to a school’s needs such as LMS, connectivity plans, and more,” said Globe myBusiness Strategy and Marketing Head Maridol Ylanan.

Moreover, the school guarantees that the learning content for this academic year has been simplified and designed primarily for distance education set-up, with the goal of acquiring the most essential learning competencies expected for the subject or course.

IAU President and founder Dr. Jovenal B. Toring have this to say: “May our quest for the better normal empower all of us, the Aerospacers, future aviators of this country, with a renewed commitment to life-long learning, as did the founding fathers of the aviation industry whose rulebook is to always fly the airplane no matter what.”

Through partnerships like this, Globe continues to prove itself an invaluable partner in promoting 21st Century Learning and in improving resilience in education.

Learn more about Globe myBusiness and its offers to help learning institutions integrate technology in their operations by visiting https://www.globe.com.ph/business/sme/education-offers.html

Confident of the Filipino fighting spirit

Cocolife encourages Filipinos to press on amid 2020’s upsets in an original Christmas theme song

The year 2020 brought a lot of challenges in the country. Upon the first weeks of this year, Taal Volcano suddenly erupted, causing ashfalls around Batangas and nearby provinces. While many have just started recovering from this disaster, the coronavirus disease 2019 (COVID-19) pandemic put a stop and disrupted the way we live. Add to these the devastating effects of Typhoons Quinta, Rolly, Siony, and Ulysses during this last quarter.

Feliciano Punzalan and his wife, Adora, lost their house to the Taal volcano eruption and so were forced to leave their home in which they lived for more than thirty years. “We thought, ‘If we will evacuate, we had nowhere to go, and no one will even accept us as residents due to the pandemic,'” Mr. Punzalan said in Filipino.

Maria Teresita Ortiz, a mother to five children, was among many who contracted COVID-19, and so she felt how it feels to be helpless and alone when her children cannot see her while she remained confined. “At that time, I cannot even see my children. That’s hard for me,” Ms. Ortiz said.

For Jason Rodelas, a working student and breadwinner, the pandemic adds to the fear and pressure he feels in finishing his studies while providing for his family during these times. “It is very hard for me to juggle work and schooling,” he shared.

These are just some of the stories of how Filipinos are trying to handle this year’s unique mix of challenges. Yet, as Cocolife’s newest theme song for the Christmas season exhorts the Filipino, “Tuloy Pa Rin Tayo“.

As a tribute to the Filipino during the Yuletide season, Cocolife delivers an inspiring reminder that Filipinos shall rise up from 2020’s hardships, move forward, and live on.

Aside from sharing the stories of Mr. and Mrs. Punzalan, Ms. Ortiz, and Mr. Rodelas, the video accompanying the original Christmas theme song shows how Cocolife is touching their lives in simple yet very heartfelt ways. The video also features Cocolife Foundation’s relief efforts for Typhoon Ulysses victims.

It also shows Cocolife Retail Distribution Chief Senior Vice-President Joseph Mark Ronquillo motivating his fellow teammates in the firm, reminding them that they are much more needed during these times.

Moreover, Cocolife President and CEO Atty. Jose Martin A. Loon and Cocolife Brand Ambassador Kiefer Ravena reflected on the Filipino’s strength amid the year’s several upsets. “This year, we have seen the endurance of the Filipino, that we can bear whatever life may bring,” Mr. Loon observed.

As a leading Filipino-owned stock life insurance company, Cocolife continues to believe in the Filipino, confident of how he or she stands strong amid life’s uncertainties. With its complete array of life insurance, non-life insurance, healthcare, and mutual fund products, Cocolife is ready to help clients achieve their goals, whatever circumstances might get in their way, like the pandemic.

When planning for your future, have someone who believes in your dreams. Explore Cocolife’s insurance and investment. Visit https://www.cocolife.com/ to get more info.

The Manila International Auto Show takes a virtual detour

The automotive industry is one of the deeply affected industries amid the ongoing global pandemic but has remained strong and resilient. In line with the new normal, there has been a rise in alternative sales efforts such as virtual showrooms, and remote financial consultations for automobile purchases. A lot of car events have pivoted to the online space.

In fact, the most anticipated motoring and driving event in the country is shifting gears virtually. This 2020, the Manila International Auto show or widely known as MIAS is taking a detour to the digital realm as it introduces the premiere edition of MIAS WIRED.

Happening this Dec. 16 to 20, MIAS WIRED is a virtual event that will bring together the biggest automobile brands and car enthusiasts to showcase the latest updates in the automotive industry. In the event, participants will have the opportunity to check the latest car models which will conquer the road soon as well as get an insider’s access to various car showrooms at the comforts of their own space. The latest innovations and newest automotive trends will also be discussed in this highly anticipated event.

The leading exhibition and events management company in the Philippines, Worldbex Services International, is at the forefront of taking events beyond expositions by providing a platform for the community to create connections and nurture the automotive industry as a whole through MIAS WIRED. The event will bring all the country’s top car brands, car accessories, automotive technology, and car enthusiasts together in order to help solve the challenges of the industry in the new normal.

Aside from all these, MIAS WIRED will bring some of the annual trade show’s exciting event highlights to this accessible and dynamic channel, promising guests that it will bring the same excitement the annual MIAS delivers.

For more information, call (02) 8656-92-39 or e-mail inquire@worldbexevents.com. Interested participants can pre-register now at www.manilaautoshow.com, and follow @manilaautoshow on Facebook and Instagram.

 

 

Recreate the way you learn with Globe’s prepaid WiFi internet kit for education

The start of the academic school year proved challenging for students, parents, and educators. After years of face to face interactions in classrooms, everyone had to adjust by going online. This has placed great pressure on everyone involved, especially when connectivity issues begin to impact the overall learning experience. To address this crisis, a growing list of learning institutions have partnered with Globe for its Prepaid Internet Kit for Education.

“Learning institutions have realized that a reliable internet partner is an effective tool for education. Globe is helping them seamlessly adapt to the changing times with an affordable and reliable device that will help both students and teachers in distance learning,” says Mark Abalos, Globe Segment Head for Education.

The prepaid kit comes with a WiFi modem that can support online learning. For just P999 per device, students have access to Globe’s nationwide LTE and 3G networks. Each kit comes with a free 10GB data allocation valid for seven days. It is easy to install and has no monthly fees, so students can plug in the device and get started on online classes. It can connect multiple users so families can share it.

Moreover, Globe customized affordable mySchoolSURF internet promos with large data allocations. For just P199 a week, students get 34GB of data, including 6GB of open access data and 4GB daily for learning, productivity, and communication apps like Canva, Course Hero, and Canvas.

To date, over 90,000 students and teachers from  Ateneo de Davao University, Arellano University, Cebu Technological University, STI, De La Salle University, APEC Schools, Mapua University, National University, and the PHINMA Education Network (Araullo University and Cagayan de Oro College) enjoy mySchoolSURF offers.

The Prepaid Internet Kit for Education is designed to help educators and parents integrate technology and digitally transform learning amid the COVID-19 crisis. As the education sector continues to adjust to the pandemic, Globe is strengthening its position as the country’s most reliable and trusted connectivity and ICT solutions partner for 21st-century learning.

On a much larger scale, Globe supports the call of the United Nations Global Compact (UNGC) to address UN’s Sustainable Development Goals (UNSDGs). Globe has been committed to particularly uphold 10 UNSDGs, which included Education, to help address the country’s most pressing social and environmental issues.

As a purpose-led organization, Globe Telecom seeks to create a wonderful world by combining innovation with the power of collaboration, to achieve inclusive and sustainable development for all. As the business continues to grow, the company strengthens its contribution to nation-building with an engaged and empowered workforce. Hinged on four (4) sustainability strategy pillars: Digital Nation, Care for the Environment, Care for People, and Positive Societal Impact.

For more information, visit the website at https://www.globe.com.ph/business/sme/prepaid-internet-kit-education.html#

Health sector gets 2021 budget boost

By Charmaine A. Tadalan, Reporter

THE BICAMERAL Conference Committee on Wednesday approved next year’s P4.5-trillion national budget, which is aimed at supporting economic recovery after a record recession due to the coronavirus disease 2019 (COVID-19) pandemic.

The bicameral conference committee report on the General Appropriations Act of 2021  was ratified by the House of Representatives and the Senate on Wednesday evening. The budget bill will then be sent to President Rodrigo R. Duterte for his signature before Christmas.

The Bicameral Conference Committee agreed to increase the allocation for the health sector by 42% to P287.47 billion, from the P203.1 billion originally proposed by the Budget department under the National Expenditure Program (NEP). The funds will go to the Department of Health (DoH), Philippine Health Insurance Corp. and healthcare personnel, among others.

“When the NEP was prepared, wala pang usapan sa vaccine, maliit lang ang allocation (there was no talk of a vaccine, and the allocation was small). So we had to adjust,” Senator Juan Edgardo M. Angara said in a briefing live streamed on Facebook, Wednesday.

Mr. Angara said one of the challenges was to source funds for the COVID-19 vaccine, which will likely be distributed by mid-2021.

Under the budget, P72.5 billion will be set aside for the implementation of a COVID-19 vaccine program. Of this, P2.5 billion is under the DoH, while the remaining P70 billion will be unprogrammed funds.

The amount is lower than the Senate-approved P83-billion allocation for vaccines, which includes P8 billion under DoH budget and P75 billion in unprogrammed funds for vaccine procurement, distribution and storage.

Mr. Angara, joined by Appropriations Chairman and ACT-CIS Rep. Eric G. Yap, was speaking after the bicameral panel approved the reconciled version of the spending plan.

He said an advance copy of provisions of the budget has been sent to the Department of Budget and Management while the Executive branch awaits the enrolled copy, signed by both Senate President Vicente C. Sotto III and Speaker Lord Allan Jay Q. Velasco.

The chambers are working to avoid a repeat of the 2019 budget scenario that led to the reenactment of the 2018 budget for over four months. The delay stemmed from impasse between the House and the Budget department, and later with the Senate. The 2019 budget was also reenacted for less than a week in 2020, after President Rodrigo R. Duterte signed the 2020 budget only on Jan. 6.

The largest share of the 2021 budget goes to the education sector with P708.18 billion, in line with the Constitution.  The education sector’s budget, however, was 6.12% lower than initially proposed under the NEP.

The second-largest chunk goes to the Department of Public Works and Highways (DPWH) with P694.82 billion, up by 4.12%, as the government ramps up infrastructure projects to drive the sluggish economy.

Gross domestic product (GDP) slumped by 11.5% in the third quarter, after a 16.9% contraction in the second quarter pushed the country into its first recession in nearly three decades.

“Education sector is always highest under the Constitution. Infrastructure because a lot of projects, as we mentioned earlier, were not fully funded under the 2020. So, a lot of those were carried over,” Mr. Angara said.

Mr. Yap said the DPWH budget will include funding for the construction of additional COVID-19 quarantine facilities and repair of roads damaged when a string of typhoons hit the country last month. 

The bicameral panel also agreed to increase the budget of the Department Labor and Employment (DoLE) by 33.1% to P36.6 billion, the Department of Social Welfare and Development by 3.19% to P176.65 billion, while the Transportation department’s budget was cut by 39.1% to P87.44 billion.

“We also increased ’yung mga job programs for temporary employment, may mga programs ang DoLE d’yan and we also increased DFA (Department of Foreign Affairs) and DoLE ’yung repatriation funds nila because we are expecting OFWs (Overseas Filipino Workers) to return,” Mr. Angara said.

Also among the agencies with the largest budget were the Department of Interior and Local Government (P247.5 billion), Department of National Defense (P205.47 billion), Department of Agriculture (P68.6 billion) and the Judiciary (P44.1 billion).

Mr. Angara assured the final version has itemized provisions, in accordance with the Supreme Court ruling, declaring lump sum appropriations as unconstitutional.

“We avoided lump sum as much as possible, we tried to itemize them… secondly, there’s no, in terms of pork barrel, there’s no post-enactment identification or participation on the part of legislators,” he said.

The panel also did away with the provision, allowing the Commission on Elections (Comelec) to waive procurement safeguards for the 2022 elections.

Further, the 2021 budget will provide for the implementation of new laws, such as the law granting medical scholarship and chalk allowance for public teachers, and the creation of the Philippine Space Agency.

Jobless rate likely to remain high until 2022

By Beatrice M. Laforga , Reporter

THE GOVERNMENT now expects the unemployment rate to average 7-9% by 2022, as the coronavirus pandemic triggered massive layoffs.

The latest National Economic and Development Authority (NEDA) report on the October Labor Force Survey showed the government aims to bring down the jobless rate to 7-9% by 2022, after the unemployment rate averaged 10.2% so far this year.

Under the Philippine Development Plan (PDP) adopted in 2016, the unemployment rate was expected to hover around 3-5% by 2022.

The NEDA has updated employment targets in the country’s medium-term blueprint to take into account the impact of the pandemic on the economy.

The updated PDP and revised goals will need final approval from the NEDA Board — which is chaired by President Rodrigo R. Duterte, according to NEDA National Policy and Planning Staff (NPPS) Director Reynaldo R. Cancio.

“The extensive impact of the COVID-19 pandemic has taken a toll on the government’s employment related targets in the PDP 2017-2022. This outturn warrants more aggressive policy actions to ensure that the revised targets will be achieved,” the report read.

The NEDA report showed the government failed to meet its initial target to lower the jobless rate to 3.8-5.2% in 2020 as many businesses were badly affected by the strict lockdown and economic slowdown.

Official data showed the unemployment rate eased to 8.7% of the labor force in October, from 10% in July and the record 17.7% in April. Underemployment rate — or the proportion of those already working but still looking for more work or longer working hours, dropped to 14.4% in October from July’s 17.3%.

The increase in the jobless rate meant 2.571 million jobs were shed for the entire year, missing the initial goal of adding up to 1.1 million jobs by year’s end.

“Amid the extraordinary circumstances brought by the COVID-19 pandemic, the majority of the employment related targets in the PDP 2017-2022 were not met in 2020,” NEDA said.

The government was not able to meet the goal of reducing the jobless rate among youth to 9.2% after official data showed this spiked to 19.4% this year. It also failed to increase the labor force participation rate of women to 50.5% this year, with the actual rate slipping to 45.8%.

The government only reached two goals and exceeded one out of its seven employment targets for the year, with underemployment rate outside the capital region hitting 17.3% (within 16.9-18.9% target); percentage of youth not in education, employment or training lowered to 18.5% (within the goal of 17.5-19.5%); and the target of reducing discouraged job seekers to 3.9% (exceeding the 11% target).

“Providing relevant and timely policies will be crucial to stay on track in improving employment profiles,” the NEDA said.

At the same time, the socioeconomic planning agency set bleaker employment targets for other indicators such as the youth unemployment rate which is now targeted to settle within 20.5-22.2% by 2022, drastically far from the initial goal of lowering the rate to 8-11%.

A more ambitious target for underemployment levels in areas outside Metro Manila was set at 15.5-17.5% by 2022 from the goal set in 2016 at 16-18%.

The NEDA has set new targets in increasing the participation rate of women in the workforce to 48.5-50.5% by 2022; reducing the percentage of discouraged job seekers to 11%; and bringing down the percentage of youth not in school, employment or training to 17-19%.

To achieve these revised employment goals, NEDA said the government should boost the agriculture sector’s resilience to natural disasters and climate change, while mass transport should be ramped up further amid looser quarantine rules to support resumption of economic activity.

Cash-for-work programs and ramping up the “Build, Build, Build” infrastructure program can also boost job generation across the country as well as other relief measures the government provides to hard-hit sectors such as emergency cash grants and loan programs.

“Upskilling and retooling of displaced workers, especially those from vulnerable groups may be prioritized. Training programs need to be designed to develop in-demand skills as we transition to the new normal (i.e. digital adeptness and technological skills). Targeted training modules may need to be developed to address the needs of the youth, displaced workers, new entrants to the labor force, and the vulnerable sector,” the report said.

The NEDA said job creation would depend on the pace of economic recovery, so the timely passage of next year’s P4.5-trillion budget and bills proposed to lower corporate income tax and create special purpose vehicles where banks can offload bad assets onto are crucial to achieving these targets.

“These will ensure the accelerated implementation of the country’s main growth drivers such as projects under the (infrastructure) program and digital infrastructure developments. Overall, these are expected to create more employment opportunities and drive productive activities across industries,” it added.

Power rates go down in December

Typical households in Metro Manila will likely see a P7 cut in their power bills this month. — PHILIPPINE STAR/MICHAEL VARCAS

HOUSEHOLDS in Metro Manila can expect to see a P7 reduction in their power bills this month, after Manila Electric Company (Meralco) on Wednesday announced a cut in overall rates due to lower demand in the Luzon grid.

In a statement, the distribution utility said the December electricity rate fell by P0.0352 per kilowatt-hour (kWh) to P8.4753 per kWh from the November level. This is the lowest overall power rate since September 2017, Meralco added.

Typical households consuming 200 kWh will see a P7 cut in this month’s bills, while those consuming 300 kWh, 400 kWh and 500 kWh will see a reduction of P11, P14, and P18, respectively in their bills.

Meralco said the generation charge fell by P0.0502 per kWh to P4.1516 per kWh this month due to the P0.1881 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM) and a decline in demand from the Luzon grid.

“Luzon grid’s power supply situation improved in November following a drop in demand which decreased due to successive weather disturbances. From October 2020’s peak demand of 10,344 megawatts (MW), November 2020 peak demand decreased to 9,886 MW,” Meralco said.

The cost of power from Independent Power Producers (IPPs) slipped by P0.2577 per kWh because of improved average plant dispatch and the appreciation of the peso against the US dollar. Power Supply Agreement (PSA) charges also decreased by P0.0214 per kWh as the peso strengthened against the greenback.

WESM, IPPs and PSAs comprise 9%, 39% and 52% of Meralco’s energy requirements, respectively.

Transmission charges for residential customers slid by P0.0044 per kWh due to lower power delivery and ancillary service charges. Taxes and other charges logged a net increase of P0.0194 per kWh.

Meralco said that the collection of the Universal Charge – Environmental Charge of P0.0025 per kWh has been suspended, in accordance with the Energy Regulatory Commission’s (ERC) guidelines.

Meralco’s distribution, supply and metering charges remained unchanged for 65 months, following registered reductions in July 2015.

It reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges.

“Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP (National Grid Corporation of the Philippines). Taxes and other public policy charges like the Universal Charges and the FIT-All (Feed-In Tariff Allowance) are remitted to the government,” the company said.

Meralco said that it would continue to serve the public during the general community quarantine (GCQ), as its business centers will continue to process service applications, payments and other transactions.

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

Senate panel endorses amendments to AMLA

THE SENATE Committee on Banks and Financial Intermediaries on Wednesday endorsed for plenary action the measure strengthening the country’s regulations to counter money laundering.

Senate Bill No. 1945 will amend Republic Act No. 9160, the “Anti-Money Laundering Act of 2001,” in line with the recommendations of the Financial Action Task Force (FATF) which sets standards against money laundering and terrorist financing.

“We are implored to immediately act on it by the Asia/Pacific Group on Money Laundering as a form of national economic emergency due to the very serious economic cost, arising from non-compliance,” Senator Grace S. Poe-Llamanzares said in her sponsorship speech, Wednesday.

Failure to enact and implement the AMLA amendments puts the Philippines at risk of being gray-listed, along with Albania, Pakistan and Syria. The Philippines was originally given until October to address deficiencies in the anti-money laundering law, but this was extended by the FATF to February 2021 due to the pandemic.

Its counterpart, House Bill No. 7904, was approved on third and final reading on Dec. 1. Congress has until Dec. 19 to act on the measure before it goes on a month-long break until Jan. 17.

The measure has been certified as urgent by President Rodrigo R. Duterte, allowing the chamber to approve the measure on second and third reading on the same day.

“Being on this (gray list) is a very strong signal to market participants and regulators globally. It has implications which we must avoid as much as we can, especially during the time of a global pandemic,” Ms. Poe-Llamanzares said.

She noted the European Union and other countries will likely impose an enhanced due diligence (EDD) on Filipino nationals and businesses, resulting in additional cost, higher interest rates and processing fees for Filipinos doing business abroad. The EDD will also affect the cost of sending remittances for overseas Filipino workers.

“To make matters worse, the Philippines will incur a ‘reputational risk’ that would certainly result in reduced investor and lender confidence,” the senator said.

“All of these things will be a major setback in our efforts to achieve an ‘A’ credit rating before 2022. This is a scenario that we have to steer away from.”

The bill proposes to enhance the Anti-Money Laundering Council’s (AMLC) investigative powers and to give it the power to apply for a search warrant and obtain information on ultimate beneficial ownership. AMLC will also be authorized to implement targeted financial sanctions on proliferation financing.

The council may also preserve, manage or dispose assets subject to asset preservation order and judgment forfeiture and prohibit the issuance of injunctive relief against freeze orders and forfeiture proceedings.

Under the measure, the AMLA will now cover real estate developers and brokers with single transactions involving at least P5 million. Initial versions of the bill provided for a P1-million threshold, but was increased upon the recommendation of the real estate industry.

The Philippine Association of Real Estate Boards had earlier said the P1-million cap on single cash transactions will affect the promotion of real estate investment in the Philippines.

Real estate activities, according to Ms. Poe-Llamanzares, is widely used as a front for money laundering and terrorist financing. She further noted that internet-based casinos, including offshore gaming operators and service providers, will be covered by the AMLA. — Charmaine A. Tadalan

1...8,2148,2158,216...13,730Page 8,215 of 13,730
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube