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Industry standards, transport regulation main issues in LPG bill hearing

THE standards for licensing Liquefied Petroleum Gas (LPG) businesses emerged as a sticking point during hearings for a proposed bill regulating the industry, with most members of the industry not complying with the Department of Energy’s (DoE) requirements in 2019.

DoE representatives testified before the Senate Energy Committee that a majority of LPG businesses — 548 out of 912 — do not possess a DoE compliance certificate, based on inspections carried out in 2019.

The panel was hearing resource persons in the process of legislating the proposed LPG Act (Senate Bill 1188, sponsored by the committee’s chairman, Senator Sherwin T. Gatchalian.

The director of the DoE’s Oil Industry Management Bureau (OIMB), Rino E. Abad said the bill must outline requirements for operating based on Philippine National Standards (PNS).

“We need to identify… what are the standards provided for as provisions in the PNS that will be applicable only or within the jurisdiction only of the DoE,” he said, noting that many other agencies also enforce PNS, which are developed by the Department of Trade and Industry’s Bureau of Philippine Standards.

Mr. Abad said the main issues for those operating LPG businesses are standards governing pressure vessels, LPG cylinders and canisters, and bulk storage tanks, among others. It also wants to include in the bill a safety code, currently being developed by DTI-BPS.

“Kasi ang kulang po ngayon sa regulation — ang nandoon puro po (The regulations currently consist of) prohibited acts which is a very bad way of… improving (the industry’s) operations,” he said.

OIMB will specify which of the PNS standards it will take responsibility for. “What we will do is to attempt… na i-delineate na ang amin (to delineate what is ours) and we will go back to the technical committee to confirm the list,” the bureau director said.

“We will put in the law the exact documents that should be promulgated and who will promulgate it para (so it’s) clear,” Mr. Gatchalian replied.

On the failure of most businesses to seek the DoE’s certification of compliance, Mr. Abad said businesses might have been content to obtain business permits from local government units (LGU).

“There seems to be some kind of miscommunication… kasi nabibigyan pa sila ng (because they are being given) business permits to operate, so mayroon ding kailangang (there is also a need for) coordination with the LGU,” Mr. Abad said.

“Hindi lahat ng LGUs at building officials kabisado kung ano ang requirements ng DoE (Not all LGUs and building officials are well-versed with the department’s requirements) when it comes to LPG facilities. We can embed that in the law,” Mr. Gatchalian said.

The OIMB proposed that local governments harmonize their regulations with the DoE’s.

The proposed LPG Law designates the DoE as its lead implementor, empowering the department to enforce quality and safety standards prescribed in the PNS and to issue licenses to operate.

Industry representatives at the hearing expressed concerns about over-regulation.

The Philippine LPG Association’s Richard Yao said the bill also recognizes the regulatory power of agencies not involved in the process previously.

“There are certain other new government agencies included right now… which before were not included as part of regulating the industry,” Mr. Yao told the committee.

He cited the proposed role of the Department of Transportation (DoTr), which Mr. Yao said does not have the technical capacity to certify LPG transport.

“We have to be cautious in terms of issuing out or providing police powers to agencies without the technical knowledge,” he said.

“We feel the industry is a work in progress and the standards need to be set in place.”

The bill provides that motor vehicles transporting LPG and filled LPG cylinders should first obtain a Certificate of Road Worthiness from the Land Transportation Office before the issuance or renewal of a license to operate.

Mr. Gatchalian asked the BPS to conduct an industry analysis to regulate cylinders and canisters and ensure safety of consumers.

“It’s about time we look into this matter very seriously… Even in the absence of the law we have to make sure that our homes are safe… maraming accident nangyayari dahil sa (There are many accidents caused by) LPG, especially dahil sa generic o lumang LPG cylinders (because some of the cylinders are generic or old).” — Adam J. Ang, Charmaine A. Tadalan

We’ll act like we’ve got it, now test us like we do

Act like you’ve got it.

The United Kingdom’s National Health Service used that line to encourage people to stay home. New Zealand’s prime minister said it to drive home her point about social distancing. But at this point, it’s also probably something you’ve already read in a tweet or on a post on your news feed. After all, it’s catchy, simple, and very real. Acting like you have COVID-19 means wearing a mask, washing your hands, practicing social distancing, and getting tested if you’re showing symptoms.

But when I see this message pop up on my social media feed, I also can’t help but wonder, how realistic is “acting like you’ve got it” for us Filipinos?

Low-income families in Metro-Manila live in small homes. For millions, social distancing is not an option, nor is self-isolation. For those with symptoms, just getting tested is a test in itself since some hospitals are refusing to take on new patients. Those who have been tested, on the other hand, are made to wait weeks for their results to be processed.

Just take the case of a group Filipino seafarers repatriated by the Philippine government late last month. Upon arriving in Manila, they were immediately moved to hotels to begin their mandatory 14-day quarantine. A few days later, the Department of Health (DoH) took swab samples and instructed them to expect their results in three to five days. Almost a month after arriving in Manila they were still stuck in quarantine waiting for their results to be released.

The country’s testing capacity leaves a lot to be desired for. Thankfully, the number of tests being conducted per day has been increasing due to a public-private sector initiative called Taskforce T3 (Test, Trace, Treat). The initiative aims to expand the country’s testing capacity from 5,000 to 30,000 per day by May 31.

Our ability to increase and continue testing is key to slowing the spread of the virus and transitioning into the new normal. This was made clear during a virtual Round Table Discussion (vRTD) that we, at Stratbase-ADR Institute, recently organized to discuss the issues and challenges being faced by the Philippine health care system.

One of our speakers was Dr. Eduardo Banzon, Principal Health Specialist of the Asian Development Bank. He said that the ability to conduct aggressive tracing, testing, and isolation will be fundamental features of the new normal. He also reiterated the need to increase testing capacity to more than 75,000 per day and to develop the ability to return test results in under two days.

The emphasis on testing was also echoed by our other panelists. Dr. Ronald Mendoza, Dean of the Ateneo School of Government, underscored the importance of extensive test, trace, and treat capabilities in preventing a relapse of the Philippine economy. ANAKALUSUGAN Party-list Representative Mike Defensor also reiterated this point, saying that mass testing is a critical component in fighting the virus, but lamented that the DoH is weeks behind in terms of its testing capacity.

Indeed, while the number of tests is increasing, our ability to process these tests and release their results is lagging behind. Currently, there are only 31 accredited laboratories nationwide that can process COVID-19 tests, but a total of 90 more are awaiting DoH accreditation. Furthermore, there also seems to be a backlog of unreleased test results at the DoH due to the lack of manpower.

Making the tests inclusive and quickly releasing the results are important for the quick identification of positive patients, their treatment, and their swift isolation to prevent further spreading. This sort of information is crucial to determining if we can safely get back to normal activities such as going to work, taking public transportation, and re-opening schools.

Placing Luzon under Enhanced Community Quarantine (ECQ) was just a band-aid solution. And the fact that we are moving towards ending the ECQ without the benefit of testing is the government subtly transferring the burden of public health and safety onto the private sector and to individuals themselves.

So, while all indications point to a shift towards fewer restrictions, by no means, can we, as responsible members of society, go back to our normal activities without a sense of heightened precaution. While we wait for our testing capacity to increase and for labs to be accredited, we must do our part.

We must act like we’ve got it. But then again, acting will only get us so far. At some point, they’ll have to test us like we’ve got it too. For this, we need not only the private sector to do its part, but for the government to step up and do its part as well.

 

Paco A. Pangalangan is the Executive Director of the Stratbase ADR Institute.

Working from home within borders:Travel restrictions, work permits and visa status of expats in the Philippines

While the coronavirus disease (COVID-19) knows no nationality or race, most countries have taken the approach, among others, of closing their respective borders to prevent it from spreading. The Philippines, which is home to a multitude of foreign nationals with varied purposes for their stay, also adopted these measures.

NATALKA_DMITROVA / FREEPIK

Even prior to the implementation of local community lockdowns, the government already started closing the country’s borders to foreign nationals in an attempt to limit exposure given how fast the virus was spreading globally. Initially, inbound travel restrictions were only imposed on foreign nationals traveling from or who had travel history, layovers, or connecting flights from countries with a high number of identified cases, such as Hong Kong, Macau, China, and North Gyeongsang province in South Korea, within the last 14 days prior to their arrival in the country.

As the coronavirus disease continued to increase exponentially in more and more countries and with the identification of several cases of local transmission, the government adopted stricter measures by implementing lockdowns in varying degrees — from Enhanced Community Quarantine (ECQ) to Modified Enhanced Community Quarantine (MECQ) to General Community Quarantine (GCQ). The coverage of inbound travel restrictions was then expanded to cover all foreign nationals regardless of country of origin and visa status as previously issued by the Philippine government, save for certain exceptions. Priority for entry and provision of quarantine facilities are accorded first to Filipino citizens, particularly to repatriated Overseas Filipino Workers.

The temporary travel restrictions on inbound foreign nationals during the ECQ was issued by the Bureau of Immigration (BI) on March 20 through its Immigration Memorandum Circular No. JHM-2020-002. This covers foreigners outside the country either with immigrant, non-immigrant or special visas, except for foreign spouses and children of Filipino nationals, accredited foreign government and international organization officials and their dependents, and foreign airline crew. The Department of Foreign Affairs likewise suspended visa-free entry privileges and the issuance of tourist visas by its Philippine Foreign Service Posts and cancelled all previously issued tourist visas pursuant to Foreign Service Circular No. 29-2020. On a favorable note, the said temporary suspension and cancellation of visas have no impact on foreign nationals who are already in the country.

On the other hand, foreign nationals are permitted to exit the country at any time even during the community quarantine. Despite the suspension of several immigration-related transactions pursuant to the BI Advisory dated March 19, the immigration bureau has continued to operate with a skeleton workforce to accommodate limited transactions with foreign nationals, particularly those who intend to depart from the country.

While returning to their home country was a common reaction for those who fear experiencing the impact of the global pandemic away from home, a good number of foreign nationals have decided to remain in the country. Subject to certain conditions set by the government, most of them are currently employed by local companies and they may continue to stay and work legally in the country during the ECQ despite suspension of immigration-related transactions by the immigration bureau. In acknowledgment of the uniqueness of the surrounding circumstances, the government granted certain concessions to foreign nationals whose visas expired during the ECQ. The BI clarified in its Advisory dated March 26 that it will waive all fines and penalties, as long as the foreign nationals file their respective applications for extension within 30 days from the lifting of the ECQ. Pursuant to its Labor Advisory No. 16 and Department Order No. 213 Series of 2020, the Department of Labor and Employment (DoLE) will also accept applications for Alien Employment Permits (AEP) without penalty provided they are filed within 45 working days from the lifting of the ECQ or GCQ.

While the economy has been severely affected by the closure or suspension of operations of various business establishments, there is now a conscious attempt to jumpstart the economy following the announcement of the President on May 12 that Metro Manila, the province of Laguna, and Cebu City which were previously under the stricter ECQ would shift to MECQ starting May 16. Under the MECQ, certain businesses may now operate albeit in a limited capacity.

In line with this, the BI has now resumed its operations by accepting and processing applications for Special Work Permit (SWP), Provisional Work Permit (PWP), and updating of tourist visas in order to file the SWP or PWP pursuant to its latest Note with Recommendation dated May 15. With the resumption of the applications for SWPs and PWPs while inbound travel restrictions remain in effect, this means that local companies may only hire or renew the contracts of foreign nationals who are already in the country.

We are undeniably entering a “new normal” with the virus changing the way we live, as well as the way we do business. Filipinos may be well known for their hospitality, but the re-opening of our doors might have to wait until we can do so safely or until we can find an acceptable balance between the impact of the virus on the economy vis-a-vis public health. As we endure this uphill battle against an unseen and still seemingly evolving enemy, only one thing is for certain, we will need to always be aware of the ever-changing landscape on the rules on immigration.

This article is for informational and educational purposes only. It is not offered and does not constitute legal advice or legal opinion.

 

Hannah Lizette S. Manalili is an Associate of the Immigration Department of the Angara Abello Concepcion Regala & Cruz Law Offices or ACCRALAW.

(632) 8830-8000

hsmanalili@accralaw.com

Consumer fear in a post quarantine economy

By George Manzano and Nikka Pesa

BUSINESS will be tough in the aftermath of the lifting of the thrice extended lockdown. In the immediate aftermath of the Enhanced Community Quarantine (ECQ), commerce would get a boost as consumers splurge in their drive to satisfy their pent-up demand. However, such spending would wind down eventually as consumers preserve whatever savings they have left as a cushion for the uncertainty of the post ECQ world. Purchases of big-ticket items would likely be postponed while spending on the basic necessities would be the order of the day. The purchasing power of the multitude of the daily wage earners, already decimated by the lack of opportunities to earn during the lockdown, would be very weak. Remittances, a dependable source of income that fueled many years of consumption-led growth, is expected to falter as recession grips the global economy. All told, consumer confidence will plunge given the massive unemployment that is expected to unfold.

The prospects of businesses are even starker. Throughout the ECQ, many companies have been bleeding cash as they continue servicing their payroll and overhead despite missing out on revenues. In addition, businesses will have a difficult time bouncing back as elements of their supply chain, often spanning several countries, are in disrepair. The simultaneous lockdowns across supplying countries, especially China, means that the raw material and supplies that feed Philippine industries would not be easily forthcoming. Moreover, traditional drivers of growth and employment such as the tourism, transportation and other service industries are in tatters.

The Philippine economy is no stranger to shocks — both natural and man-made ones. Time and again, the economy managed to address the damage inflicted by localized shocks such as typhoons Yolanda or Ondoy, and those coming from external sources such as the global financial crisis of 2008. However, the particular economic crisis that the pandemic unleashed has an additional, even more pernicious element, that puts a drag on the pace of economic recovery. This is an element of fear which not only deflates consumer confidence but prevents the economy from operating at full capacity.

PERNICIOUS ELEMENT
Where does this fear arise? It comes from the nature of the transmission of COVID-19. A practical way of avoiding contracting the virus is to steer clear from persons who manifest the symptoms of the disease. This is a natural defensive reaction since the symptoms are observable. However, there are issues when dealing with asymptomatic virus carriers. Because these individuals do not manifest symptoms, they may unwittingly infect the others as they go about their daily lives. These asymptomatic carriers are difficult to identify, leading to the latent suspicion that there is a chance that every stranger is an asymptomatic carrier.

As a general measure to prevent infection, physical distancing is recommended. In principle, the greater the distance, the lesser the risk of infection. While the measure is necessary and correct from a public health policy perspective, however, from the business standpoint, the practice can be very costly. For one, firms have to spend money on retooling and retrofitting the office and factory floor layout to allow distancing. This is a set up cost that is incurred only once. However, there are other repercussions from physical distancing.

There are certain markets, especially in the services segment, whereby the very nature of the transaction, makes physical distancing impossible. These are termed “high contact intensive” industries marked by face-to-face interaction between service provider and consumer such as food services, hair salons, and dentists. Since the technology of such industries are not likely to vary across countries, a survey* in the United States can be indicative of the same sectors in the Philippines that could well be negatively affected by the imposition of rigorous physical distancing restrictions. The fact that workers from these industries are less likely to have possibilities for working remotely will compound the problem.

There are other factors at work that bode ill for these sectors. The more obvious case is that cash-strapped customers, recently emerging from the ECQ, can hardly afford to spend on such services. Even more alarming, people do not want to avail of such services due to fear of infection. As customers shy away, demand is driven downwards leading to even less revenue. The prospects of business closures from such sectors can set back the pace of economic recovery.

How many of these service providers belonging to the “high contact intensive” sectors will be negatively affected by the fear factor? Following Leibovici et al (2020), a distinction is made between “high contact intensive” sectors belonging to the essential services in pandemics such as health services and the non-essential ones. The more vulnerable sector would be those offering non-essential services. Extracting the employment figures from the Annual Survey of Philippine Business and Industry, service providers belonging to the affected non-essential services account for to 29% of total employment in the Philippines in 2015 or around 1.28 million**. This cohort of workers earned around P3 trillion in 2015. In terms of share to employment, the biggest subsectors are in the elementary and secondary education services, and the food and drinking services such as restaurants or cafeterias.

For the National Capital Region (NCR), where the lockdown is most intense, these aforementioned service providers comprise around 24% or a quarter of total employment in 2015 or around 508,000 workers***. Similarly, these NCR-based service providers earned around P1.85 trillion in 2015. The subsectors with the biggest shares of employment are the food and drinking services, and the security and investigation services such as security guards.

One notes that the number of workers whose jobs are vulnerable to the fear factor is quite sizable. Unless addressed, these workers are likely to suffer loss in income, as demand for such services could shrink. The Table reports the breakdown of the essential and non-essential sectors of the “high contact intensive” industries for NCR and the Philippines.

THE ECONOMIC COSTS OF THE FEAR FACTOR
Though the fear factor may have psychological roots, it is an economic problem. It is a variant of “information asymmetry,” or more specifically, the “problem of lemons” that could cause markets to fail. Because reliable information is absent or hard to come by, everyone will suspect that the person — co-worker, client, service provider, etc. — could be a potential carrier. Given the perceived risk, they will forego the transaction, leading to a loss of potential business. For example, because the customer does not possess information about the state of health of the service provider — a Grab driver or a hairdresser — he or she shies away and a potentially productive transaction is aborted, even if the service provider is perfectly COVID-free. As a consequence, a lot less business will be consummated in the post ECQ period, as many customers assume that service-providers are carriers, or “lemons.”

One of standard remedies when markets fail due to asymmetric information is to provide some sort of “signaling.” Customers may struggle to find out which service provider is COVID-free. Similarly, service providers may find it hard to convince their prospective clients that they are healthy. To resolve the issue, service providers can signal the state of their health. A certificate of having been tested and found negative of the virus could be used as an instrument for signaling. Alternatively, a record of thermal scan readings for the past 21 days could likewise be employed.

Signaling, alas, only works if it is credible. If the reliability of the current testing procedures in detecting asymptomatic carriers at all times is questionable, then the certificates of testing may not be very useful as a signaling instrument. Rapid antibody tests procedures are still undergoing trials and have not yet been certified by the health authorities as standalone screening instruments. In addition, if the service provider cannot assure that integrity of the ecosystem where he or she operates — the residential community, the grocery, those bringing kids to school, the commute, etc. — is “safe,” then possessing test certificates of health may not be very convincing signaling instruments. Given the absence of credible signaling instruments to date, the fear factor will continue to hound the aforementioned service sectors.

The “new normal” that is being bandied about for post ECQ life is fraught with hard trade-offs. The trajectory of the economic recovery will not be easy for a number of reasons. First, consumer confidence is already low given the loss of income. And the looming unemployment will drag it even lower. Second, the “fear” factor arising from the risk of infection will dissuade many consumers from consuming services especially from the high contact intensive service sectors. Third, physical distancing will prevent the factories from ramping production to higher levels.

In the absence of a credible signaling instrument, that could mitigate the fear factor, the high contact service sectors would face a very difficult path to recovery. These service sectors would therefore need government assistance. That a good number of these sectors are Micro Small Medium Establishments (MSMEs) , which are more fragile during lockdowns, makes the call for assistance more urgent.

 

* Leibovici, Fernando, Ana Maria Santacrue, Matthew Famiglietti (2020) “How the Impact of Social Distancing Ripples through the Economy,” On the Economy Blog, Federal Reserve of St Louis. Downloaded from https://www.stlouisfed.org/on-the-economy/2020/april/impact-social-distancing-ripples-economy

** This refers to the employment of establishments with 20 or more employees.

*** This refers to the employment of establishments with 20 or more employees.

 

George Manzano and Nikka Pesa are from the UA&P School of Economics. This piece is from a UA&P BEC Staff Memo from May.

Peso climbs on prospects of economy’s reopening

THE PESO climbed against the greenback on Tuesday amid expectations of a gradual reopening of the economy and profit taking.

The local unit ended trading at P50.53 per dollar yesterday, stronger by 17 centavos from its P50.70 close on Friday, according to data from the Bankers Association of the Philippines.

Markets were closed on Monday for Eid’l Fitr.

The peso opened Tuesday’s session at P50.68 per dollar. Its weakest showing was at P50.70 while its intraday best was at its close of P50.53 against the greenback.

Dollars traded went down to $491.5 million from the $675.1 million logged on Friday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was supported by positive sentiment on prospects of a gradual reopening of the economy through the lifting of some restrictions.

“The peso was stronger after recent signals from government officials that Metro Manila to be brought to GCQ (general community quarantine) from MECQ (modified enhanced community quarantine),” Mr. Ricafort said in a text message.

Government officials are expected to decide this week on whether or not to lift restrictions in areas that are still under MECQ or ECQ.

Meanwhile, a trader said the stronger peso was on the back of profit taking.

“The peso appreciated as participants took profit following the safe-haven demand for the greenback from the continuing geopolitical tensions between the US and China over the proposed security law on Hong Kong,” the trader said in an e-mail.

Reuters reported that Chinese and Hong Kong officials on Monday defended their proposed national security laws.

“The legislation will alleviate the grave concerns among local and foreign business communities about the violent and terrorist forces,” Xie Feng, China’s Foreign Commissioner in Hong Kong said on Monday at a briefing.

The US Senate has introduced a bill to sanction Chinese officials for stepping on Hong Kong’s autonomy through the security law. The said legislation will also slap sanctions for banks that do business with entities found violating the law guaranteeing Hong Kong’s autonomy.

For today, Mr. Ricafort gave a forecast range of P50.40 to P50.65 while the trader expects the local unit to trade between the P50.40 to P50.60 levels. — L.W.T. Noble with Reuters

PSEi dips as market waits for lockdown decision

By Denise A. Valdez, Reporter

THE MAIN INDEX closed lower on Tuesday as investors waited for an announcement about what will happen to the Metro Manila lockdown after May 31.

The 30-member Philippine Stock Exchange index (PSEi) fell 42.36 points or 0.76% to end at 5,496.83. The broader all shares index likewise dropped 36.96 points or 1.10% to 3,313.02.

“Investors remained on the sidelines awaiting the latest update from government on how businesses in general would be conducted after May,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

Metro Manila, where a bulk of local businesses operate, is currently on a downgraded lockdown until May 31, formally called by the government as a modified enhanced community quarantine. Other parts of the country are under general community quarantine.

Mr. Limlingan noted most of Metro Manila mayors are backing the further relaxation of the lockdown in the capital. This would allow increased mobility and business activity for the region. However, the final decision is still up to President Rodrigo R. Duterte, who hasn’t made an announcement as of Tuesday afternoon.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said investor sentiment was down on the dim outlook for the economy. He noted there are concerns that the Philippines is slow in contact tracing as cases of coronavirus disease 2019 (COVID-19) keep on rising.

With ongoing talks of easing the lockdown, investors worry how this will affect and maybe worsen the spread of COVID-19.

“This puts into question whether the Philippines, particularly its areas under the tightest quarantine measures, are really prepared for the easing of restrictions. In the end, we’re still trapped in the health or economy trade-off dilemma which in turn remains a drag to the local market, keeping investor confidence tempered,” Mr. Tantiangco said.

Further pulling the market down was the increase in net foreign outflows to P1.18 billion on Tuesday, the largest since April 16’s P2.14 billion.

Most sectoral indices closed as losers. Industrials gave up 212.68 points or 2.91% to 7,092.13; mining and oil lost 127.77 points or 2.86% to 4,337.50; financials trimmed 25.34 points or 2.29% to 1,077.16; property shed 21.01 points or 0.75% to 2,764.89; and services shaved off 2.63 points or 0.19% to 1,319.50.

The sole gaining index was holding firms, which picked up 1.38 points or 0.02% to 5,541.82.

Value turnover stood at P5.17 billion with 1.36 billion issues switching hands, improving from the last session’s P4.03 billion with 501.94 million issues.

Decliners outnumbered advancers, 156 against 37, while 35 names ended unchanged.

Duterte rules out physical classes without a vaccine

PRESIDENT Rodrigo R. Duterte on Monday said he would only allow classes once a vaccine for the novel coronavirus has become available.

“I will not allow the opening of classes where the children will cluster together,” he said in a televised speech in mixed English and Filipino.

The presidential palace on Tuesday clarified that the President was only prohibiting face-to-face classes.

“It doesn’t matter if they don’t finish school, for this generation no doctor or engineer will graduate,” Mr. Duterte said in Filipino. “It’s useless to be talking about the opening of classes. For me, vaccine first,” he added.

Mr. Duterte locked down the entire Luzon island 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 quarantine for the island twice and thrice for the capital region. Metro Manila remains under an altered lockdown until the end of the month, with some businesses allowed to reopen with minimal workforce.

“In the absence of a vaccine and pending the new normal — where there are no more community quarantines — we still won’t have face-to-face classes,” Palace Spokesperson Harry L. Roque said at an online news briefing. “The bottom line is we will not compromise the health of our youths,” he added.

The Philippines has four levels of lockdowns — enhanced, modified enhanced, general and modified general community quarantine.

Under the so-called new normal, restrictions will be eased and minimum health standards should be observed.

Mr. Roque noted that if lockdowns are still in place by Aug. 24 — the scheduled start of the school year — schools should use “blended learning.”

He said schools can use TV, radio and online instructions to teach their students.

Also yesterday, Health Secretary Francisco T. Duque III said it is safe to resume classes in August.

“It’s safe if we open classes by Aug. 24,” he told the Senate health committee. “We just need to ensure that minimum standards of health are in place.”

Mr. Duque was referring to physical distancing measures, frequent hand washing, disinfection of classrooms and other school facilities and provision of alcohol and hand sanitizers.

Schools may also use thermal scanners to monitor students who may be showing symptoms of the coronavirus disease 2019.

Senator Franklin M. Drilon said student safety must be prioritized, while the government measures the capability of students from low-income households to adapt to digital learning.

“I do not see how virtual classes being proposed by the Department of Education can be effectively implemented across all sectors,” he said in a statement. “The poor will be at a disadvantage here.”

He also said that under the law classes must start not later than August.

Meanwhile, the Senate education committee headed by Senator Sherwin T. Gatchalian endorsed a bill allowing Mr. Duterte to set the opening of classes beyond August. — Charmaine A. Tadalan and Gillian M. Cortez

COVID-19 infections rose to 14,669 — DoH

THE Department of Health (DoH) reported 350 new coronavirus infections on Tuesday, bringing the total to 14,669.

The death toll rose to 886 after 13 more patients died, it said in a bulletin. Eighty-nine more patients have gotten well, bringing the total recoveries to 3,412, it added.

DoH said 2,420 of those infected were health care workers, 1,163 of whom have recovered and 31 died.

The local infection rate has “stabilized a bit,” Takeshi Nishijima, regional office technical officer at the World Health Organization Western Pacific said at an online news briefing.

“We are hoping that it will decrease in the future, but for that I think we need to be prepared to continue what we do right now,” he said.

Filipinos should continue to practice physical distancing, cough etiquette, frequent washing of hands and stay at home, he added.

Based on the DoH COVID-19 tracker website, 277,916 people have been tested — 21,154 positive and 256,762 negative results. — Vann Marlo M. Villegas

Lockdown of Metro Manila likely to be relaxed by June 1

THE GOVERNMENT would probably ease the lockdown in Metro Manila and nearby cities starting June 1, Interior Secretary Eduardo M. Año said on Tuesday as the government tries to restart the economy that a coronavirus pandemic has brought to a near standstill.

“It is possible that up to May 31, the modified enhanced community quarantine will be loosened and might go into a general community quarantine,” he told an online news briefing.

He added that there was a proposal to classify areas into zones, allowing villages to keep a stricter lockdown if needed.

Metro Manila mayors were expected to come out with a recommendation last night.

Presidential spokesman Harry L. Roque said an inter-agency task force against the COVID-19 would discuss the matter and announce a decision on Wednesday.

“The important thing is we will look at the doubling rate, the critical care capacity, and of course the attention to our economy,” he said.

President Rodrigo R. Duterte locked down Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. The lockdown in some areas have since been relaxed, while Metro Manila remains under an altered quarantine until the end of the month, where some businesses have been allowed with minimal workforce.

Meanwhile, economic losses from the two-month lockdown in Metro Manila could have hit P740.35 billion, according to a study by the De La Salle University.

“In terms of economic losses, the entire country is said to lose P740.35 billion just from the Metro Manila enhanced community quarantine alone,” La Salle Professor Krista Danielle S. Yu said at an online forum.

Ms. Yu said the trade sector could have lost P235 billion, accounting for a third of the total losses.

Manufacturing could have lost P158 billion, private services P105 billion and finance P55 billion, she said.

Socioeconomic Planning Secretary Ernesto M. Pernia cited the need to boost the capacity of the country’s healthcare system.

“We were caught flat-footed with the woefully inadequate health system capacity in the face of this COVID-19 pandemic,” Mr. Pernia said at the forum.

He said the government should seek to attract medical practitioners and scientists who have left the country for better opportunities abroad. — Gillian M. Cortez and Luz Wendy T. Noble

Metro Manila mayors seek further lockdown easing

THE mayors of various cities in Metro Manila want the government to further ease the lockdown in the capital region starting June.

All 17 mayors were ready in case a return to a general community quarantine is ordered, Jose Arturo S. Garcia, Jr., general manager of the Metropolitan Manila Development Authority, said at a televised briefing aired on CNN Philippines on Tuesday night.

The Metro Manila Council, which is made up of the 17 mayors, does not have the power to decide on whether to ease the lockdown.

An inter-agency task force made up of Cabinet secretaries is expected to announce a decision on Wednesday, presidential spokesman Harry L. Roque said earlier in the day.

Mr. Garcia said there were concerns about the operations of buses and jeepneys, but taxis, tricycles ride-hailing and shuttle services would be allowed.

There is also a plan to adopt a modified number coding scheme for private vehicles, which will be allowed on streets seven days a week as long as they contain at least two passengers, he said.

This is given the limited number of public vehicles that will be allowed to operate once the general lockdown is put in place.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain a coronavirus pandemic.

Metro Manila remains under an altered lockdown until the end of the month, during which some businesses have been allowed to reopen with minimal workforce. — Vann Marlo M. Villegas

#COVID-19 Regional Updates (05/26/20)

Cebu province taps 3 state-owned banks for P20B economic recovery fund

THREE government-owned banks have agreed to create a common fund, initially set at P20 billion, for Cebu’s economic recovery program, the provincial government announced Monday. Officials of LandBank of the Philippines (LandBank), Development Bank of the Philippines (DBP), and the Philippine Veterans Bank (Veterans Bank) met with Governor Gwendolyn F. Garcia and other local officials last May 21 to discuss the financing plan that will be open to marginalized farmers, small and medium farm organizations, and large agriculture enterprises. “We have to give hope to the people, and we have to manage this fear and turn this into hope,” Ms. Garcia told the bank executives. The provincial government, along with city and town officials, are aiming to revive the local economy from the impact of the coronavirus crisis by focusing on agricultural development in the countryside. The banks will determine interest rates, loan packages and other financing terms, which will be presented to the provincial government. In the meantime, the governor ordered an inventory of the province’s land and properties where rice and corn could be planted to make the province self-sufficient for these basic commodities. — MSJ

Taxi-hailing firm Hirna to help in contact tracing in Davao City; prepares for e-payment

HOMEGROWN taxi-hailing firm Hirna Mobility Solutions, Inc. will assist in the contact tracing efforts of Davao City by collecting information from passengers. Region 11 Taxi Operators Association Inc. President Rogelio G. Largo said they will be undertaking this as they prepare to adopt electronic payment options as part of minimizing risks of coronavirus transmissions. “We are working on it now. We expect that we will be able to provide electronic payment options in the month of June this year. It will be the new normal for taxi riding public,” Mr. Largo said via messenger, noting that e-payments are part of the new guidelines from the government. “The need for Hirna as an online booking platform for taxis in Davao City has become greater at this time. With Hirna, those needing a ride need not go out of their homes to look for and hail a taxi,” he said. There are currently 4,300 taxis installed with the Hirna app, but Mr. Largo said only about 60% of the units are operating. “Some drivers have opted not to return to drive for lack of passengers. Others have preferred to remain in their respective provinces,” he said. The contact tracing form will include the passenger/s name, contact number, date and time of trip, and destination. Davao City has the highest number of coronavirus disease 2019 (COVID-19) cases in Mindanao at 232 as of May 25. City officials and regional health authorities have faced difficulties in contact tracing, particularly among thousands of participants of a series of cockfighting events in March, where a COVID-19 patient was determined to have been in attendance. — Maya M. Padillo

Nationwide round-up

Over 11,000 OFWs back in their hometowns


MORE than 11,000 overseas Filipino workers (OFWs), among those who have been displaced by the coronavirus global pandemic, have already gone back to their home provinces as of May 25.

Palace Spokesperson Harry L. Roque, in a briefing on Tuesday, said a total of 11,848 OFWs who have tested negative for the coronavirus have been provided transport from Manila to different parts of the country.

President Rodrigo R. Duterte on Monday ordered national government agencies to pull together all available resources to bring the workers home after many of them have been stuck in quarantine facilities in Manila beyond the 14-day mandatory isolation period.

The Department of Labor and Employment, the Overseas Workers Welfare Administration, and the Department of Health have been given a week to organize the return of 24,000 OFWs.

The government is expecting more returning Filipinos in the coming weeks

In a late Monday taped meeting with his Cabinet and other officials, Mr. Duterte also called on local governments to ensure the smooth return of the OFWs to their hometowns.

“Do not impede it. Do not obstruct the movement of people because you run the risk of getting sued criminally. Because it is the national government who declared there is a national emergency involving a pandemic, an issue of health, that — that power cannot be shared by — by anybody else,” Mr. Duterte said.

Local governments have been preparing for the return of OFWs, with most areas requiring them to undergo another 14-day isolation period either in designated quarantine facilities or at home. — Gillian M. Cortez

Health dep’t pulls out coronavirus trial drug after WHO suspension

THE Department of Health has pulled out a medicine that is being tested as treatment for coronavirus disease 2019 (COVID-19) in the solidarity trial led by the World Health Organization (WHO).

WHO announced that it is temporarily suspending the use of anti-malarial drug hydroxychloroquine and chloroquine as treatment for COVID-19, citing the observational study published by The Lancet that a higher mortality rate was observed among patients who received the drug.

“We follow WHO guidelines on this because this is the WHO solidarity trial,” Health Undersecretary Maria Rosario S. Vergeire said in a virtual briefing on Tuesday.

“Rest assured na tayo po ay titigil na muna magbigay nitong gamot dahil ito po ay na-i-rekomenda ng WHO (that we will stop giving this as advised by the WHO),” she added.

WHO Director-General Tedros Adhanom Ghebreyesus on May 25 said the executive group of the solidarity trial decided to suspend administering the drug to review data and evaluate its potential benefits and harms.

The Philippine joined the solidarity trial last month along with other countries to test the effectiveness of four possible treatments for the coronavirus. — Vann Marlo M. Villegas

Duterte orders probe on medical equipment distributor

PRESIDENT Rodrigo R. Duterte has ordered the investigation of a couple who own a medical equipment distribution firm that allegedly tried to sell overpriced goods to the government for its coronavirus response.

In a taped meeting with his Cabinet and other officials late Monday, Mr. Duterte said the National Bureau of Investigation (NBI) “should study the matter very, very carefully… whether it’s really an issue of humanity and their greed.”

A couple whose last name is Co, owners of Omnibus Corp., allegedly offered Sansure brand medical equipment to the government for P4.3 million when the actual selling price is around P1.7 million.

The couple also complained that the government did not respect Omnibus’ license as an “exclusive” reseller of Sansure even if there are other local distributors offering the same products.

“The officers from Sansure actually went to the Philippines. I met them last Friday and also yesterday we met them over lunch… We personally requested that if they sell, they sell directly to the Philippines,” said Budget Undersecretary Lloyd Christopher A. Lao during the meeting.

Mr. Lao said the China-based firm Sansure offered to sell at a lower price, through Omnibus, which the government rejected.

“If we allow them (Omnibus) to distribute now at a lower price, we’re giving them a reward for what they have done before. Now that we can go direct to Sansure, we suggest that we bypass them because we can get it cheaper.”

Palace Spokesperson Harry L. Roque said there is basis for the NBI to investigate the couple for violations of the anti-profiteering law and under the Bayanihan to Heal as One Act.

“There was really almost an attempt to blackmail us into buying something very expensive,” he said.

Meanwhile, the government defended the purchase of allegedly overpriced personal protective gear.

Mr. Lao said the equipment they procured for health frontliners are high grade and unlike reusable protective gear, do not promote growth of viruses and bacteria.

Mr. Duterte, for his part, said, “If you place a person in jeopardy while he is working, especially the doctors, they are fighting for life. Throw it. That’s the reason why we are spending money. And we will spend money.” — Gillian M. Cortez

No clamor for leadership change in DoH, says hospital group president

THE Philippine Hospitals Association on Tuesday said none of its 1,981 members are seeking a change in leadership at the Department of Health (DoH) amid calls for the resignation of Health Secretary Francisco T. Duque III.

Association President Jaime A. Almora said they are “contented” with how the department is handling response to the coronavirus pandemic.

“We are happy with how things are going, we are happy that we are able to control the spread of the infection. At least we are able to contain it in Manila, and in the provinces, we are not seeing an increase in cases out in the provinces,” he said in a virtual briefing.

“There is no clamor for drastic changes in the leadership in the Department of Health right now. In fact, I have never seen one comment,” he added.

He did acknowledge that there have been complaints from member hospitals, particularly those that have not received personal protective equipment and financial aid from the Philippine Health Insurance Corp. (PhilHealth).

“Definitely, tanggalin muna natin ang politika sa ating anti-COVID campaign po. Magtulung-tulongan lang, ‘yun ang focus natin ngayon (let us stop politics in the anti-COVID campaign. Let us help one another, that is our focus for now), to cooperate and make our efforts be united in this fight,” he said.

On the other hand, the Private Hospitals Association of the Philippines, Inc. (PHAPi) on Monday asked President Rodrigo R. Duterte to replace Mr. Duque, who also heads PhilHealth.

The group cited that some of its members have not received the financial aid from the government-owned insurance company.

“For this reason, the PHAPi, an association of Seven Hundred Forty Four (744) member private hospitals, now respectfully requests for the replacement of Dr. Francisco T. Duque III as DoH Secretary and Chairman of PhilHealth and appoint someone who can deliver the goods better in addressing the health concerns of the country,” it said.

PHAPi said they have high regard for Mr. Duque “but he seems to be already so exhausted that there is need for a fresh blood and a fresh mind to lead the Department of Health and the PhilHealth.” — Vann Marlo M. Villegas

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