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Nationwide round-up (04/06/21)

Lawyer decries lockdown arrests

A LAWYER’S group on Tuesday said quarantine violators should be charged with breaching local ordinances instead of a national law that mandates reporting of diseases that are of public concern.

“It is not only enraging but tragic that tens of thousands of our citizens who do not have the same entitlements as those in or close to the corridors of power had to endure this manifest injustice,” Edre U. Olalia, president of the National Union of Peoples Lawyers, said in a statement.

He accused the government of using a “vague law to justify the harsh implementation of quarantine protocols at best and cover up repressive measures at worst.”

“It’s up to the police to state in the complaint what the charges are for, but it’s up to the prosecutor to determine whether such charges will prosper,” Justice Secretary Menardo I. Guevarra said in a mobile phone message on Tuesday.

But Mr. Olalia said that there must first be an official and clear order from the higher officials that police should only arrest or file charges using ordinances.

Law enforcers should also be warned that they could be sued for damages or malicious prosecution. “But whether it will eventually prosper involves many considerations that come into the equation.” — Bianca Angelica D. Añago

Free swab tests sought

A LAWMAKER on Tuesday called on the government to provide free coronavirus swab tests for stranded travelers and public transport drivers.

In a statement, Party-list Rep. Alfredo A. Garbin, Jr. said the government should use revenue from the Philippine Amusement and Gaming Corp. to provide the free tests.

He said about 80 passengers from Metro Manila who were going home to the Bicol region using unregistered public vehicles had tested positive for the coronavirus. He noted free swab tests would have prevented the spread of the virus to other provinces.

Free swab tests would also prevent Filipinos from using illegal transport because these tests are required under a state program that encourages people to go home to their hometowns. — Gillian M. Cortez

Group seeks health workers’ benefits

A LABOR coalition said health frontliners should get paid using stimulus funds from the government as the coronavirus pandemic worsens.

In a statement, the Nagkaisa Labor Coalition said Congress should extend the compensation to health workers.

Under the law, health workers who got the coronavirus while in duty will receive compensation to cover health expenses. Family members of health workers who died from COVID-19 (coronavirus disease 2019) will also get benefits.

Alliance of Filipino Workers (AFW) President Willy Pulia said health workers should get P100,000 if they get infected while on duty. Their family should also get paid P1 million in case the health worker dies from the coronavirus.

The government should consider COVID-19 as an occupational disease so affected workers especially in the healthcare industry will get better benefits, Rudy Ladiao, secretary general of the Unified Filipino service Workers, said in a statement. — Gillian M. Cortez

Congressman justifies ivermectin offer

A CONGRESSMAN who offered the anti-parasitic drug ivermectin to Quezon City residents said there was nothing illegal about it.

Party-list Rep. Michael Defensor told DZBB radio he followed protocols set by the Department of Health (DoH) and Food and Drug Administration (FDA) even in the absence of clinical trials for the drug as a coronavirus treatment.

Mr. Defensor is not the only lawmaker who is not a health professional who is endorsing ivermectin as a treatment against COVID-19. Party-list Rep. Bernadette Herrera-Dy told reporters on Tuesday she uses the drug herself.

Health Undersecretary Maria Rosario S. Vergeire told DZBB the drug “gives our citizens a false sense of security.”

Edsel Salvana, a member of the DoH Technical Advisory Group, said too ivermectin could cause brain damage and even death. — Gillian M. Cortez

Regional Updates (04/06/21)

Regulator imposes PUV ban

THE LAND Transportation Franchising and Regulatory Board on Tuesday barred public utility vehicles (PUV) from Metro Manila, Bulacan, Cavite, Laguna, Rizal, Cebu City and Davao City from entering the Western Visayas region.

In a statement, the regulator said an inter-agency task force had approved the recommendation to suspend trips to the region, which includes Aklan, Antique, Capiz, Guimaras, Iloilo and Negros Occidental.

The ban is in line with the enforcement of an enhanced community quarantine in the capital region and nearby provinces until April 11, while the cities of Davao and Cebu are under a general lockdown and modified general lockdown, respectively.

Local air travel from these areas to Western Visayas was also prohibited.

Drivers and laborers who transport essential goods such as food and medical supplies won’t be covered by the ban, it said. — Arjay L. Balinbin

NEA takes over utility

THE NATIONAL Electrification Administration (NEA) on Tuesday said it had created a task force that will seek to improve the operations of a Misamis Oriental-based electric cooperative.

In a statement, the agency said its administrators had deactivated the board of directors of Misamis Oriental II Rural Service Electric Cooperative, Inc. (Moresco II).

The utility’s operational performance had regressed from an AAA to B rating, the NEA said, citing noncompliance with power accounts, collection efficiency and system loss.

The task force will coordinate with management to solve issues related to the power firm’s financial distress; institute measures geared towards NEA standards; and review the EC’s policies and practices, among others, the agency said. — Angelica Y. Yang

Natural order restored as fans trek back to Augusta National

AUGUSTA, GEORGIA — The natural order was restored — kind of — as Masters week began under an azure April sky in front of appreciative spectators at Augusta National on Monday.

Five months after a unique November Masters that was staged with virtually no spectators due to coronavirus concerns, a limited gallery of a few thousand has been allowed onto the hallowed grounds this week.

Perhaps about 7,000 fans were on hand, barely 15% of the crush normally allowed for practice rounds, but it made for an idyllic viewing experience for those lucky or well-connected enough to get through the gates.

While there are no grandstands, the pink azaleas and white dogwoods that provide such a pretty spring backdrop to famed Amen Corner are a familiar sight, even if the former are already fading from the dazzling pink of full bloom.

Players are certainly enjoying having patrons around, and even more so looking forward to hearing some roars echo through the whistling Georgia pines come Thursday’s first round.

“Even though there are a lot of people, it’s just amazing how many people this place can hold at a capacity because it still felt like not that many people,” 2013 champion Adam Scott told Reuters.

“More than anything it’s going to be nice Thursday through Sunday to see people out at the golf course.”

Fellow pro Patrick Cantlay particularly savors the ban on mobile phones.

“It’s so refreshing,” he told reporters. “Everyone is way more interactive and polite… compared to other tournaments. It just is a great atmosphere. I know we are only at a limited capacity, but these are the best fans or patrons of the year.”

Two young men on a day trip from Atlanta, sitting behind the 18th green enjoying the sunshine, were enjoying the relaxed experience.

“It’s almost peaceful,” said Mike, who declined to give his last name, but revealed he got his ticket through a corporate connection.

“I was expecting a lot of energy. I’ve never seen it like this, but it’s a nice balance. It’s a much more genuine natural golf experience.”

Added his friend Neel: “It’s a little muted, but it’s liberating to be out away from a (computer) screen for a day.”

There were plenty of big names for the fans to watch, including defending champion Dustin Johnson and perennial fancy Rory McIlroy.

They played the front nine together, before Johnson departed for the range, leaving McIlroy to play the back nine alone, followed by a couple of hundred spectators.

McIlroy, who recently began working with instructor Pete Cowen, carved his drive at the long par-four 11th into the pines, before reloading and hitting a bullet right down the middle.

“That’s sort of like Pete said, just get it in position and then turn,” McIlroy said to caddie after his second drive, a seemingly sound advice that sometimes is easier said than done. — Reuters

Kyrie Irving scores 40 to lead Nets comeback versus Knicks; Suns win

KYRIE IRVING scored 40 points, including a critical three-pointer in the final minute, and Jeff Green made a pair of free throws with 3.7 seconds left to seal the Brooklyn Nets’ 114-112 comeback win over the New York Knicks on Monday in Brooklyn, New York.

The Nets, playing the second leg of a back-to-back, carried over some of the struggles from their 115-107 loss on Sunday in Chicago. Brooklyn fell behind by 10 points at half time, and lost James Harden after just four minutes due to hamstring tightness.

New York extended its lead to as many as 13 points in the third quarter, but a 10-2 run to close the period gave the Nets a one-point lead heading into the fourth quarter.

Brooklyn pulled ahead 112-107 with a minute left when Irving hit a step-back triple, his second three-pointer of the quarter and fifth of the game.

New York rallied with five quick points, including a game-tying trey from Alec Burks with 26.1 seconds left. On Brooklyn’s ensuing possession, the Knicks double-teamed Irving in the corner, forcing the ball into Joe Harris’ hands.

Harris missed a short, contested jumper, but Timothé Luwawu-Cabarrot’s offensive rebound set up the deciding foul shots.

Jeff Green finished with 23 points for the Nets, began the day tied atop the Eastern Conference with Philadelphia.

Harris scored 16 points and grabbed a team-high eight rebounds, and Alize Johnson added 12 points and seven rebounds off the bench.

Julius Randle recorded a triple-double with 19 points, 15 rebounds and 12 assists for the Knicks.

R.J. Barrett shot 4-of-6 from 3-point range en route to a team-high 22 points for New York. Reggie Bullock made 5-of-10 from deep on a night when the Knicks hit 48.3 percent from beyond the arc. He scored 21 points.

SUNS WIN
Meanwhile, Devin Booker scored a game-high 36 points, Deandre Ayton and Chris Paul recorded double-doubles and the Phoenix Suns extended their winning streak to six games with a 133-130 victory over the host Houston Rockets on Monday.

Booker sank four free throws in the final 37.8 seconds left and picked off a Jae’Sean Tate pass at the final buzzer to seal the win. Booker finished 6 of 8 from 3-point range, 8 of 9 from the free-throw line and added six rebounds and six assists to his sparkling ledger.

Ayton (27 points, 11 rebounds) and Paul (19 points, 11 assists) were part of the Suns’ dynamic offensive performance that included an 18-of-37 effort on 3-point tries. Mikal Bridges went 4 of 6 from deep and scored 20 points, while Paul and Cameron Johnson (12 points) drilled three treys each.

Despite the Suns’ exceptional shooting, the Rockets hung close until the end.

Christian Wood led the Rockets with 23 points while Kelly Olynyk added 21. — Reuters

Baylor beats Gonzaga, 86-70, to win first NCAA men’s basketball title

THE Baylor Bears notched their first-ever National Collegiate Athletic Association (NCAA) men’s basketball title after they topped the Gonzaga Bulldogs, 86-70, in the championship match on Monday (Tuesday, Manila time) in Indianapolis, Indiana.

Jared Butler made four three-pointers and recorded 22 points and seven assists as the Bears turned the Bulldogs’ unbeaten season dream into a nightmare with the wire-to-wire victory.

Butler was named most outstanding player of the Final Four.

Baylor opened the game with a 9-0 run in the first four minutes and never surrendered control from there en route to its national championship conquest.

The Bulldogs tried to rally back from the deep hole they found themselves in, which saw them trail as high as 20 points at a point, but the Bears just would not allow any comeback to happen.

MaCio Teague added 19 points for the Bears (28-2) while Davion Mitchell contributed 15 points, six rebounds and five assists, and Adam Flagler scored 13 points.

For Gonzaga (31-0), which booked a spot in the Big Dance with a buzzer-beater in the Final Four on Sunday over UCLA, it was Jalen Suggs who led the way with 22 points. Drew Timme and Corey Kispert each had 12 points for the Bulldogs in the loss.

Prior to winning the title, the path for Baylor saw it beat Hartford in the first round, 79-55; Wisconsin, 76-63, in the second round; Villanova, 62-51, in the Sweet 16; Arkansas, 81-72, in the Elite Eight; and Houston, 78-59, in the Final Four. — Michael Angelo S. Murillo

Alex Eala makes W60 tournament debut in Bellinzona

ALEX EALA of the Philippines was to make her $60,000 tournament debut later on Tuesday at the W60 Bellinzona in Switzerland.

FILIPINO tennis ace Alex Eala was set to make her $60,000 tournament debut later on Tuesday at the W60 Bellinzona in Switzerland.

Ms. Eala, 15, was to face Margot Yerolymos of France in the opening round of the International Tennis Federation (ITF)-sanctioned event.

It will be the first $60,000 tournament in her young career, which has taken an impressive ascent early in 2021.

The Rafa Nadal Academy scholar and Globe ambassador was to enter the competition off her Women’s Tennis Association (WTA) Tournament debut two weeks ago at the Miami Open.

In Miami, Ms. Eala played in the qualifiers, but fell short against world no. 104 Viktória Kužmová of Slovakia (6-4, 4-6, 2-6).

Despite her early exit, Ms. Eala’s ascent in the WTA singles rankings continued as she is now ranked 715th in the world — a career high.

In Bellinzona, she qualified as a junior exempt being the third-ranked juniors player in the world.

Ms. Eala has racked up a 12-5 win loss slate in the WTA, while she holds a 17-9 overall record to include her matches in the ITF for the year.

She earned her first-ever singles title since turning professional when she ruled the opening leg of the Rafa Nadal Academy ITF World Tour in Mallorca, Spain, in January. Ms. Eala then followed it up with three consecutive quarterfinal appearances in her next three tournaments. — Michael Angelo S. Murillo

TNT event is ONE’s coming-out party in America, says Alvarez

VETERAN and champion fighter Eddie Alvarez will be featured in the main card of “ONE on TNT I” on April 8. — ONE CHAMPIONSHIP

By Michael Angelo S. Murillo, Senior Reporter

ONE Championship will make history this week as for the first time, its fights will be shown in the United States in prime time; a huge development for the Asian promotion, said veteran and champion fighter Eddie “The Underground King” Alvarez.

Beginning April 8, Thursday (Manila time), ONE rolls out its “ONE on TNT” series, a four-part weekly offering until April 29 that will have the promotion’s preliminary card digitally streamed exclusively on the Bleacher Report App and B/R Live followed by three main card fights televised exclusively on TNT.

The series kicks off with “ONE on TNT I” which will be bannered by the world flyweight championship fight between reigning champ Adriano Moraes of Brazil and challenger and mixed martial arts legend Demetrious “Mighty Mouse” Johnson; non-title bout between ONE flyweight muay thai world champion Rodtang “The Iron Man” Jitmuangnon and Jacob Smith of the United Kingdom; and the lightweight clash of Mr. Alvarez and Iuri Lapicus of Moldova.

Three Filipino fighters are set to see action in the fight series, namely, Lito Adiwang (“ONE on TNT II,” April 14), and Eduard “Landslide” Folayang and Stephen Loman (“ONE on TNT IV,” April 29). All three are fighting out of Baguio-based Team Lakay.

For American MMA legend Alvarez, a former champion in the Ultimate Fighting Championship and Bellator, ONE on American prime time is very significant for Asia’s largest sports media property and hardcore MMA fans in the US.

“I kinda feel that this is ONE’s coming-out party in America. I’m excited to be part of it. On April 7 (April 8), fans will see ONE Championship in a different light. And after they see what they see, I think there will be a new guy in town,” said Mr. Alvarez in the online media day for the event on Monday.

Mr. Alvarez went on to assure fight fans that ONE has put on much thought on the event and did everything needed to come out with an impressive offering.

Zeroing in on his fight with Mr. Lapicus, The Underground King said he is ready to get it going and he is confident of his chances.

“We have had an amazing camp, could not have asked for a better one. We’re on point and ready to go,” said Mr. Alvarez (30-7, one no-contest), who last fought in August 2019 and angling to add the ONE lightweight title to his list of achievements.

Looking to derail his push is Moldovan Lapicus (14-1), who fell short in his attempt to seize the lightweight title from champion Christian Lee in his last fight.

“ONE on TNT I” will be shown live in the country on ONE Sports and One Sports+ with an encore telecast on April 11, 12 a.m. on TV5.

A chance

It would be an understatement to argue that the Clippers’ signing of DeMarcus Cousins smacks of desperation. After all, the value of the fifth overall pick in the 2010 National Basketball Association draft is suspect at best. While he has four All-Star and two All-NBA berths to his name, three significant lower back injuries in the intervening seasons have all but eroded his otherwise-prodigious skill set. It’s why even the talent-challenged Rockets saw fit to cut him loose in the face of his depressed numbers through the first third of the 2020-21 campaign, and why he found himself hitherto hard-pressed to latch on to an employer.

To be sure, the risk the Clippers will incur in inking Cousins to a 10-day contract is minimal; at little cost, he will serve as insurance given the sidelining of starting slotman Serge Ibaka. Frontliner Ivica Zubac figures to continue using up the bulk of available minutes, but he adds to the depth chart and can be tapped as needed by head coach Tyronn Lue. Meanwhile, he’ll be spurred to exceed himself both on and off the court; it may well signify his last opportunity to snag a roster spot, with an assured ticket to the playoffs as a bonus should his stint pan out.

First things first, though, and for Cousins, it means being at his level best. He’s not exactly known for his decorum while burning rubber, but, by all accounts, he’s a positive presence in the locker room. The flipside, of course, is that moral support goes only so far, especially for organizations with valid reasons to cast a moist eye on the hardware. And, in this regard, he will be handicapped; his fate is not his to carve. There will be other, more pressing considerations. How, for instance, will the Clippers view him once Ibaka is given a clean bill of health?

For now, Cousins has what he has been trying to secure since he parted ways with the Rockets in February: a chance. He needs to temper his expectations, however. He wanted out of Clutch City because of a pointed refusal to play behind — and serve as mentor to — former journeyman Christian Wood; never mind his underwhelming stats. And, all things considered, his pride looks to get him going either way: It can spur him to appreciate the importance of professionalism, or it can move him to insist on an inflated view of self.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

OFWs: Smugglers of faith and joy

(First of three parts)

With his inimitable sense of humor, Pope Francis called Overseas Filipino Workers (OFWs) in Rome, especially the women, as “smugglers of faith” in his homily during the celebration at the Vatican of the 500th Anniversary of Christianity in the Philippines on March 14. He thanked the Filipino community who attended the liturgical services commemorating the event for “the joy you bring to the whole world and to our Christian communities.” His Eminence Luis Antonio Cardinal Tagle, in his response to the Pope, gave statistical flesh to the complimentary words of the Supreme Pontiff of the Catholic Church: “We bring you the filial love of Filipinos in the 7,641 islands of our country. There are more than 10 million Filipino migrants living in almost 100 countries in the world. They are united with us this morning.” I was glad that, thanks to the EWTN TV network, I was one of those united with that small Filipino community who were lucky enough to be physically present in St. Peter’s Cathedral to listen to the Pope’s message.

Before I spell out the economic impact of the more than $30 billion of remittances annually sent by those over 10 million OFWs to their relatives in the Philippines, let me add some anecdotal evidence to support the words of both Pope Francis and Cardinal Tagle. During my recent two-year stay as a Visiting Professor of one of the leading business schools in the world, the IESE Business School in Barcelona, Spain, I had the occasion to travel extensively all over Europe and attest to the fact that Filipino migrant workers in key cities of Europe are indeed “smugglers of faith and joy” to vast numbers of Europeans, whether Roman Catholic or not. Whether they are in London, Paris, Stockholm, Helsinki, Madrid, Rome or Munich, Filipino Catholics among the OFWs are giving life once more to the many parishes in which they constitute a large majority of those who attend Mass on Sundays and even weekdays. More often than not, many of them are the ones who are active in choir singing and other services rendered by lay persons in their respective parishes. In fact, I was amused that during my time in Barcelona, there was a parish that was called the parish of San Agustin during weekdays but during the weekends, especially on Sundays, was referred to as either the Sto. Nino parish or San Lorenzo Ruiz parish. During road shows I had to conduct in Dubai, Qatar, and other cities in the Middle East, the very large presence of Filipino Catholics (together with Indian Catholics) was testimony to the contribution of Filipinos to keep the Catholic faith alive in these countries.

European Catholics are not the only ones who benefit from the attractive human qualities of most Filipino overseas workers. Together with some MBA students of the IESE Business School, I conducted an informal survey to find out some of the reasons why in many occupations that require personal interactions, Filipino workers are usually preferred to others of different nationalities. We found out that in addition to personal hygiene (Filipinos take a shower every day), one of the most appreciated traits of Filipinos is that they always have a “smiling face.” Our people are famous for their soft skills. This fact is even more evident during the ongoing pandemic. In countries where there are significant numbers of Filipino nurses and health workers, there have been top government officials and CEOs who have publicly praised our OFWs in these professions for the great service that they have rendered to the COVID-19 and other patients. It would not be an exaggeration to say that the health systems of a number of these countries would collapse if we were to pull out the Filipino doctors, nurses and other health workers from their respective hospitals, medical clinics, and nursing homes.

Also based on my years of residence in Barcelona and frequent travel to other European cities (I miss them now that all my “road shows” are conducted online), I would venture to say that the “smuggling of joy” is not limited to the health and wellness sector. Whether it is in the hospitality industry, retailing sector (the Dubai airport used to be like a district of Makati with the predominance of Filipino service workers), or in domestic services, the soft skills of Filipinos have contributed significantly to a bright and cheerful environment in many a European community. It is sad that we have recently lost a lot of points in the Gross National Happiness index because of the very inept and unpredictable manner by which some of our political leaders and government officials responded to the pandemic crisis (leading to the unemployment of 4.2 million workers and a worsening of our poverty incidence). I still think, however, that individually Filipinos are among the most hopeful and cheerful creatures in the world today. It would be interesting for some social scientists to conduct research on the role of migrant Filipino workers in putting Finland, Switzerland, and other European countries at the top of the Gross National Happiness index. I would bet my bottom dollar (which is expected to appreciate with the $1.2-trillion stimulus package of President Biden) that without their Filipino service workers, some of these European countries would not rank as high in the Happiness index.

One may ask, however, if our OFWs are doing much to cheer up people in their host countries all over the world (more recent estimates of the Commission of Filipinos Overseas put the number of host countries and territories closer to 200) what are they doing for their relatives and other loved ones whom they have left behind? We can find part of the answer in what happened to the economy in 2020. Because of the very long lockdowns imposed on consumers and business establishments, our GDP dropped by 9.5% for the whole year of 2020. There were doomsday projections like that of the World Bank that predicted that for the whole of 2020, remittances from OFWs would fall by 13%. But thanks to the generosity of these “smugglers of faith and joy,” the dollar remittances they sent home during 2020 dropped only by 0.8%. Without this assistance, many Filipinos at home would have been gloomier and more desperate than they were. We would have ranked even lower in the Happiness index.

There are reasons for even greater optimism for 2021 among those left behind by the OFWs. Despite my own projection that GDP will grow only 4% in 2021 (in contrast with the majority of forecasts that cite 6% or more), remittances for 2021 are seen to settle at $31 billion, up 4% at the least and at most by 7%, according to the multinational bank Morgan Stanley. In a February 2021 report, Morgan Stanley Research stated that the remittances for 2021 will be better than expected and would drive a recovery in household discretionary spending and support the current account to stay in a balanced position. These remittances will prop up the Philippine peso as well as domestic banking, consumer and property sectors.

Indeed, as Cardinal Tagle assured Pope Francis (whom he called “Lolo Kiko”), “By God’s mysterious design, the gift of faith we have received is now being shared by millions of Filipino migrants in different parts of the world. We have left our families, not to abandon them, but to care for them and their future. For love of them, we endure the sorrow of separation.” As we shall see in the subsequent parts of this series, the sorrow of separation is only one of the sufferings our OFWs have to bear to help their loved ones and the whole country survive, recover, and grow during and after the pandemic.

To be continued.

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is Professor Emeritus at the University of Asia and the Pacific, and a Visiting Professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Digitalization and the Private Sector as the force for recovery

VECTORJUICE-FREEPIK

The results that policymakers had hoped for when the Philippines was locked down in March 2020 to curb the spread of COVID-19 did not happen. A year after, the National Capital Region and the surrounding provinces of Bulacan, Cavite, Laguna, and Rizal have again been put under lockdown, with 11 hours curfews, the highest infection rates, and healthcare systems stressed to critical levels. In this scenario, the week-long enhanced community quarantine has been extended.

The economy went into recession as thousands of businesses had to either temporarily or permanently halt operations, and millions of people lost their jobs and experienced involuntary hunger. To date, the Philippine economy is yet to show significant signs of recovery at pace with its Southeast Asian neighbors and might take some time to catch up as the economy contracted by 9.5% in 2020, the worst in 73 years and the lowest in the region. Recent data from the Philippine Statistics Authority (PSA) show that the unemployment rate was recorded at 8.8% in February 2021 — slightly higher than the 8.7% the month earlier — but this still translated to 4.2 million unemployed Filipinos. As such, the country is projected to be the last to recover in the region.

Despite having the most prolonged and strictest lockdown in the world, the spread of the virus in the Philippines has not been contained, and recent data showed record highs of more than 10,000 cases. While other countries are successfully implementing their vaccination programs to recover more quickly, the Philippine government continues to rely on prolonged lockdowns and curfews and is still in a state of trial and error in implementing their COVID-19 response efforts, including vaccination. Haven’t policymakers learned any lessons?

Economic managers have recognized the need for digitalization to adapt and recover from this emergency situation. The National Economic and Development Authority (NEDA) recently published an updated Philippine Development Plan (PDP) 2017-2022, which now takes into consideration the socio-economic impacts of the COVID-19 pandemic. It seeks to build the foundation for a healthy and resilient Philippines through five key programs under the new normal: 1.) health system improvement; 2.) food security and resiliency; 3.) learning continuity; 4.) digital transformation; and, 5.) regional development through the Balik Probinsya, Bagong Pag-Asa Program.

A noteworthy aspect of these five programs is digital transformation, as mobility restrictions have forced people to work-from-home, buy essential goods online, do online transactions, and the like. This has given rise to an emerging business sector engaged in mobility as a service.

Another imminent force in the country’s recovery and development is characterized by the growing clamor for a dynamic leadership of the private sector. Just recently, the Stratbase ADR Institute held a virtual roundtable discussion entitled, “The Private Sector as the Reliable Partner for Economic Recovery.” Chairman Ambassador Albert del Rosario commended the tech savviness of Filipinos, which he said is a great potential for the country. Everyone quickly shifted from predominantly face-to-face manual mode of interactions towards a digitalized system of communications and transactions. And that, without the government having to advise them to. Almost as quickly, public and private institutions teamed together to adapt to a “new normal” and change their ways by stepping-up their initiatives for digital transformation in order to continue delivering their goods and services to their clients. “This crisis has unveiled a transformative potential that is actually achievable with existing technologies,” he said. 

“Technology is a powerful tool not just for communications and business processes, but just as important, in managing the risks to the environment. This is a realm wherein nimbleness, innovation, expertise, and mobility of resources is needed, attributes that are native to the developmental spirit of the private sector,” he added.

Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala elaborated, saying that “the strengths of the private sector — its resources, ingenuity, energy and performance management discipline — are crucial to augment the Government’s massive machinery; and even co-develop new ways to deliver critical aid and other forms of support to our stakeholders.

“I sincerely believe that the private sector is a force for growth and a force for good. And if we continue to put our collective resources and determination to task, we will be able to multiply the growth and the good that we contribute to nation-building,” Mr. Zobel said.

A pioneering intervention is the country’s biggest 5G Hackathon, launched by De La Salle University’s Animo Labs in cooperation with Globe Telecom. The ongoing competition will create opportunities for students and professionals to develop our own innovations in 5G technology to solve real life problems in Education, Health Care, Livelihood, Retail, Manufacturing, Logistics, E-Commerce, Disaster risk management, Sustainability, Asset and Resource Management, and Transportation.

Digital transformation and private sector participation will not only bolster pandemic responses but will, in turn, jointly facilitate improvements in the agenda espoused by the updated PDP 2017-2022, i.e., health system, food security and resiliency, learning community, and regional development, by providing jobs, income security, and investments. Additionally, such development plans will entail the holistic engagement of the different stakeholders of society and set forward the path to national recovery.

In the aspect of leadership, President Duterte and his administration should inspire the people’s confidence and behavior with good governance demonstrated through transparency, professionalism, and statesmanship that does not polarize and produces positive results. Otherwise, the high trust and approval ratings of President Duterte is merely a synthetic embellishment that cannot not hide a suffering country.

 

Victor Andres “Dindo” C. Manhit is the President of the Stratbase ADR Institute.

A culture of mediocrity

An outstanding classmate in college used to say “whatever is worth doing is worth doing well.” Truly, she adhered to her motto and topped the class. At the time, and even later, Singapore and Korea were backwoods countries, and the Philippines looked like the next candidate for getting into the First World.

Today, our grade school students are ranking at the bottom among almost a hundred tested countries in reading, science, and mathematics. Our government’s performance against the COVID-19 pandemic is pathetic compared to those of erstwhile less developed countries like Vietnam, Laos, and Cambodia, countries bordering China where the coronavirus originated. We have a police chief, the head of the law enforcement agency, violating pandemic protocols, being allowed to stay in office. A health secretary who has been exposed as having conflicts of interest as a government official doing business with the government while still in office. A Solicitor General maintaining million-peso retainers with government agencies which he is duty bound to monitor to ensure compliance with civil service ethics. And we have a president who openly behaves as a lackey of China, which should be considered our enemy, since they are brazenly taking over our internationally recognized territories. The work performance, moral, and ethical standards and compliance with the laws are rapidly going downhill.

How far down will they go? And are the trends reversible?

We cannot say it is genetic or racially determined because many Filipinos who migrate to more developed countries have demonstrated a capacity for excellence. The Biden government’s Administrator for USAID in the world is a Fil-American named Gloria Steele who graduated from Maryknoll College in Manila and Kansas State U. A successor to now Vice-President Kamala Harris and former California Governor Jerry Brown as the new attorney general for the state of California (which is bigger than the Philippines), Rob Bonta, is the son of Filipino immigrants to the United States who became farm worker activists with Cesar Chavez. One of the geniuses in the Silicon Valley IT industry, an inventor of microchips and other IT products, Dado Banatao, is the son of a farmer from La Union. If they had stayed here, not being from the landed, well-to-do Ilustrado or politically powerful classes, would they have achieved the remarkable success that they have attained?

When I was a child, to be a Japanese product meant “inferior quality.” Today, “made in Japan” means excellence. Akiro Morita of Sony, a physicist who set out to produce the best sound in the world, led by example. Today, even Korean products are catching up with their rival Japanese in producing superior cars and home appliances. South Korea was blessed to have had Park Chung Hee as a benevolent dictator who catapulted his country into a high performance economy. China will soon enough surpass these economies with their increasingly sophisticated industries, including those in the IT field. They were fortunate to have been led by “capitalist roader” Deng Xiaoping. Lee Kwan Yu’s Singapore has joined the first world. And formerly war-torn but victorious Vietnam, which defeated two of the most powerful countries in the world with their indomitable courage and determination to win, will soon overtake us economically. Their communist government, which is inspired by the leadership example of guerrilla leader and incorruptible President Ho Chi Minh, is host to many successful capitalist-oriented industries, including agribusinesses. Vietnam has overtaken us as the second biggest coffee producer next to Brazil in a very short time. They have been selling us rice for some time. We now import coffee from this country.

Why can’t we get our act together? When did this culture of “pwede na” and “okay lang” become the norm for what is acceptable? How did it happen? What can we do about it? Perhaps the attitude is that given the unfair and even hostile environment, “pwede na” has got to be good enough.

These issues must be raised as a challenge to our educators and leaders in politics, business, and civil society. What are we doing to our children? Are we challenging them enough? What are the standards we are setting for them, primarily by example? Our tribal people once made excellent fabrics, baskets, and trinkets. What happened to this culture of excellence? Are the performance standards fair and clear? Have we become too easy to please? Too tolerant of mediocrity?

We need to revitalize the idea of challenging our people to discover and value their true potential. The schools are one key environment for promoting a culture of excellence. The schools, from grade school all the way to graduate school, may have become too kind and tolerant or complacent these days.

It is not impossible. But we need to aim for it as a nation. Leadership does matter. We need to select leaders who will challenge us to be the best we can be. And who need to set an example. And who will ensure that the rules are clear and consistent. What we have today in all the branches of government — executive, legislative, judiciary and even the uniformed forces — are sad examples of mediocrity, even of shabby quality. Decisions and actions in these supposedly independent branches of government are based on second-guessing the thinking of the President who has a compulsive need to feel superior. And the national leadership, which seems to have seized more power than it is entitled to by law, has enabled crummy performance and unethical behavior to thrive, in return for blind loyalty.

The environment in our country, which tolerates too much mediocrity, does not enable excellence to thrive. So, no wonder the prevailing goal is to migrate to other countries where real effort and good performance is recognized and rewarded fairly. And one does not have to cater to the whims of undeserved power.

Even today, we can anticipate the legacy that the Duterte regime will leave behind. It is a culture of mediocrity. It will take fantastic will, determination, and inspired leadership by example and a miracle to reverse the trend.

 

Teresa S. Abesamis is a former professor at the Asian Institute of Management and Fellow of the Development Academy of the Philippines.

tsabesamis0114@yahoo.com

CREATE: a reformation of the corporate income tax and incentives system

To mitigate the dire financial and economic effects brought about by the COVID-19 pandemic, Congress enacted Republic Act No. 11534 otherwise known as the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE.

CREATE, which was signed by the President on March 26 this year, improves the corporate tax system by lowering the rate, widening the tax base, and reducing tax distortions and leakages. Below are some of its notable provisions.

REGULAR CORPORATE INCOME TAX
CREATE lowered the regular corporate income tax (RCIT) for domestic and foreign corporations engaged in trade or business within the Philippines (resident foreign corporations) from 30% to 25% of taxable income effective July 1, 2020.

However, domestic corporations with net taxable income not exceeding P5 million and with total assets not exceeding P100 million, excluding land on which the particular business entity’s office, plant, and equipment are situated, shall be taxed at 20%.

The RCIT for foreign corporations not engaged in trade or business in the Philippines (non-resident foreign corporation) is also lowered from 30% to 25% of gross income effective Jan. 1, 2021.

Proprietary educational institutions and hospitals, except those whose gross income from unrelated trade, business or other activity exceeds 50% of the total gross income derived from all sources, shall pay a tax of 10% on their taxable income.

MINIMUM CORPORATE INCOME TAX
CREATE reduced the 2% minimum corporate income tax imposed on domestic and resident foreign corporations to 1% of gross income effective July 1, 2020 until June 30, 2023.

IMPROPERLY ACCUMULATED EARNINGS TAX
CREATE repealed the imposition of improperly accumulated earnings tax under Section 29 of the National Internal Revenue Code (NIRC).

REGIONAL OPERATING HEADQUARTERS
Regional operating headquarters (ROHQs) of resident foreign corporations shall pay a tax of 10% of their taxable income provided that effective Jan. 1, 2022, the ROHQs shall be subject to the RCIT of 25% of their taxable income.

INTERCORPORATE DIVIDENDS
Under CREATE, dividends received by a domestic corporation shall not be subject to tax. Foreign-sourced dividends are exempt from income tax provided that: a.) the funds from such dividends actually received or remitted into the Philippines are reinvested in the business operations of the domestic corporation in the Philippines within the next taxable year from the time the foreign-sourced dividends were received and shall be limited to funding the working capital requirements, capital expenditures, dividend payments, investment in domestic subsidiaries, and infrastructure project; b.) the domestic corporation must hold directly at least 20% of the outstanding shares of the foreign corporation; and c.) the domestic corporation must have held the shareholdings for a minimum of two years at the time of the dividends distribution.

TAX INCENTIVES
CREATE provides for tax incentives which may be granted to registered projects or activities. The Fiscal Incentives Review Board, or the Investment Promotion Agencies, under a delegated authority from the Fiscal Incentives Review Board, shall grant the appropriate tax incentives only to the extent of their approved registered project or activity under the Strategic Investment Priority Plan.

CREATE provides for the following tax incentives: a.) Income Tax Holiday (ITH); b.) Special Corporate Income Tax (SCIT); c.) Enhanced Deductions (ED); d.) Duty exemption on importation of capital equipment, raw materials, spare parts, or accessories; and, e.) Value-Added Tax (VAT) exemption on importation and VAT zero-rating on local purchases.

The ITH shall be followed by the SCIT or ED. ED cannot be granted simultaneously with the SCIT.

At the option of the export enterprise, the domestic market enterprises with a minimum investment capital of P500 million and domestic market enterprise under the Strategic Investment Priority Plan engaged in activities that are classified as critical, the SCIT rate of 5% based on gross income in lieu of all national and local taxes or ED shall be granted.

Domestic market enterprises under the Strategic Investment Priority Plan engaged in activities that are classified as critical shall refer to those enterprises belonging to industries identified by the National Economic Development Authority to be crucial to national development.

The duty exemption is applicable only to importation of capital equipment, raw materials, spare parts, or accessories directly and exclusively used in the registered project or activity by registered business enterprises.

The VAT exemption on importation and VAT zero-rating on local purchases shall only apply to goods and services directly and exclusively used in the registered project or activity by a registered business enterprise.

The grant and availment of the foregoing incentives are subject to the conditions and periods laid down under and Sections 295 and 296 of the NIRC as amended by CREATE.

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

 

Zyra G. Montefolca is an Associate of the Davao Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

zgmontefolca@accralaw.com

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