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Yard utilization hits bottom; seen normalizing as lockdown eases

YARD utilization in Metro Manila’s two major ports may have hit bottom in May after they experienced 90% congestion in early April, with the Bureau of Customs (BoC) now expecting port activity to return to normal with the easing of the lockdown on the capital region.

According to BoC’s daily updates, yard utilization as of May 16 fell to 48.84% at the Manila International Container Port and to 66% at the Port of Manila.

“I think after we resolved the issue on potential port congestion, the current yard utilization rate is now more reflective of the state of import activities during the ECQ (enhanced community quarantine) but we soon expect more normal activity in our ports as quarantine restrictions ease up,” BoC Assistant Commissioner and Spokesperson Vincent Philip C. Maronilla said via Viber over the weekend.

Congested ports in early April delayed the delivery of urgently-needed goods for the coronavirus containment effort. The congestion levels led the BoC to threaten a shutdown of the ports if shippers, hampered by the quarantine, failed to withdraw their cargoes.

Joint Administrative Order 20-01 was issued in response to the congestion and served as an ultimatum to importers remove overstaying cargoes to give way for incoming shipments, particularly those needed to contain to the coronavirus disease 2019 (COVID-19) outbreak, including personal protective equipment, medicine and disinfectant.

“The overall yard utilization may be low but if you get into the details some sections of the yard that cater to essential goods have a higher utilization rate.”

He said the current situation at the ports reflects the state of economic activity associated with heavily-disrupted global trade.

According to preliminary data, BoC’s collections declined 31% year on year to P15.57 billion in the first half of April, bringing the year-to-date total to P160.98 billion, running behind the pace of the P164.4 billion collected a year earlier.

The BoC’s 2020 collection target has been reduced by 30% to around P520 billion due to the grim economic outlook, weaker global trade and the slump in oil prices.

The economic team downgraded government revenue projections to P2.612 trillion from P3.137 billion collected in 2019 with economic output for the year expected to contract by 2-3.4%.

With increased expenditure due to COVID-19 relief efforts and revenue expected to fall, the budget deficit is officially projected to spike to 8.1% of gross domestic product this year, before easing to 6% next year and 5% in 2022. — Beatrice M. Laforga

Wage subsidy first tranche reaches 2.1 million workers; rate of release only 64% — DoF

THE national government reached 2.1 million workers as of May 12 in releasing 64% of the funds for the first tranche of the Small Business Wage Subsidy program, the Department of Finance (DoF) said.

In a statement over the weekend, the DoF said the government released a total of P16.4 billion, against the program’s P25.5-billion budget for the first tranche.

The two-tranche program has a total budget of P51 billion to provide P5,000-P8,000 wage subsidies to employees of small businesses affected by the lockdown. The first batch of payouts was scheduled for release between April 30 and May 15, while the second tranche is scheduled for May 16-30.

Social Security System (SSS) President and CEO Aurora C. Ignacio said nearly 160,000 employers submitted applications for the program. The application deadline was May 8.

So far, applications covering 2.94 million employees were approved, accounting for 86% of the 3.4 million beneficiaries targeted.

The payouts were deposited directly to the employees’ bank or PayMaya accounts or sent via remittance centers.

SSS, the main implementing body for the program, said payouts can only be accessed until June 10 for those claiming through MLhuillier branches; subsidies unclaimed after June 10 will be forfeited. — Beatrice M. Laforga

National Broadband Program seen enabling small telcos to compete

THE Department of Information and Communications Technology (DICT) clarified Saturday that the National Broadband Program (NBP) will not directly compete with big telecommunications companies (telcos), but it will allow smaller players to compete.

Undersecretary Eliseo M. Rio, Jr. said that through the NBP, smaller firms will be able to monetize the bandwidth that they will earn from the government “because their subscription cost will be much lower than the big telcos.”

“So indirectly, the NBP would be competing with the big telcos through the small players, but it will definitely bring down the cost of fast and reliable internet connectivity in this country,” he said in a Facebook post on May 16.

He said that the “middle and last mile” in various parts of the NBP will be built by small telcos, Internet service providers, community antenna television operators, community networks, and cooperatives, in exchange for government bandwidth.

“We will soon post in our website an invitation to interested parties to submit Letters of Interest (LoI) to do the middle and last mile in various parts of the NBP, and if selected, will sign an offsetting agreement, meaning DICT will remunerate them with Bandwidth capacity for use of the infrastructure they set up for the NBP. We will also be leasing existing middle and last mile where needed and pay the lease also in an offsetting arrangement,” Mr Rio added.

He said that Converge ICT Solutions, Inc., Philippine Telegraph and Telephone Corp., and Domestic Satellite Philippines, Inc. have already shown interest in the arrangement.

Mr. Rio said that instead of subscribing and paying commercial telcos for the bandwidth needed to connect government offices, the NBP will allow the government to use its own bandwidth.

“This will come from the 2Tbps (terabits per second) bandwidth capacity that we will get from Facebook for letting them use our Luzon Bypass Infrastructure, a Project actually started in 2015 by BCDA (the Bases Conversion and Development Authority),” he said.

Developing the NBP was one of the directives of President Rodrigo R. Duterte during his State of the Nation Address in 2016, with the intent of improving Internet speeds via the rollout of fiber optic networks and wireless technology. — Genshen L. Espedido

Quarantine grace periods weaken power firms’ finances as demand picks up

THE quarantine grace periods on electricity bills have weakened the power industry’s finances even with power demand surging in the residential segment and as usage normalizes with lockdowns easing, an industry association said.

“Like all businesses, there’s a financial impact on collections because of the ECQ, (which caused) delay in remittances payment extensions, collection efficiency, etc., naturally, revenues have significantly decreased while fixed costs remain the same,” Philippine Independent Power Producers Association, Inc. (PIPPA) President Anne E. Montelibano told BusinessWorld in an e-mail interview.

With the onset of enhanced community quarantine (ECQ) in March, the Department of Energy (DoE), along with the Energy Regulatory Commission, ordered a grace period for power bill payments in accordance with Republic Act No. 11469, or the Bayanihan to Heal as One Act.

Some suppliers were not able to offer flexible payment arrangements, she noted.

Fixed costs include labor, supplies, debt payments, insurance premiums, and maintenance.

Generation companies are still adjusting to the situation, she added.

“We continuously have to adapt and adjust because we have accepted that each must bear his part in ensuring that everyone in the power industry weathers this adversity together,” Ms. Montelibano said.

The DoE noted that power demand has been increasing in areas under ECQ, especially in residential areas, as people stay indoors and consume more electricity.

In Luzon, residential power demand rose 40%, while the commercial and industrial segments are below normal consumption levels, the DoE said, citing data from Manila Electric Co. (Meralco), the Philippines’ biggest distribution utility.

Meanwhile, the drop in demand in the Visayas and Mindanao, where the residential sector has an outsized share, has not been as significant as Luzon’s.

“’Yung share ng residential sector sa entire consumption ng ating system, medyo tumaas. Pero ’di niya na-compensate ‘yung pagbagsak naman from the commercial and the industrial sectors (Residential consumption has increased but was not sufficient to make up for the decline in commercial and industrial demand),” DoE Assistant Secretary Redentor E. Delola said.

The DoE said it is rushing the commissioning of power plants due to go online by June to ensure sufficient supply as the quarantine measures ease and industries resume operations.

There are 21 power plants currently under construction, the DoE said.

“Under the post-quarantine, lahat i-increase ang demand diyan, lahat ng mga hotels, services (all will increase their demand for power, including hotels and services firms) they will try to start their facilities and that will require a lot of power,” Energy Secretary Alfonso G. Cusi said.

“Hahataw ‘yan [demand] ‘pag dating ng post-quarantine, (After the quarantines end demand will surge) and we want to make sure that we have enough supply,” he added.

“We assure the public that we will continue to keep the lights on for the nation,” Ms. Montelibano said.

Only Cebu City and Mandaue City are still under ECQ while Metro Manila, Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales, Angeles City, and Laguna are under modified ECQ up to the end of May. The rest of the country is under general community quarantine (GCQ).

2020 DEMAND PROJECTION UNLIKELY TO BE MET
Meanwhile, the Philippines may not meet the power demand projection set by the DoE for this year, while growth will be slight next year, Mr. Delola said.

“We’re seeing na baka wala tayong growth for the year. So, we’ll remain at the levels that we had sa 2019. Then by next year, baka maliit lang ang growth (There may not be any growth this year and only a small rise next year),” he said.

Specifically, the Luzon projection for this year is least likely to be met.

The DoE’s forecast for peak demand this year in Luzon is 12,285 megawatts (MW) in May, with the Visayas at 2,419 MW also in May, and Mindanao at 2,278 MW in December.

The department has yet to receive data on the electricity consumption by segment during the quarantine period, as distribution utilities have suspended meter readings in areas under ECQ.

DICT tapping ARTA to minimize LGUs cell-site delays

By Arjay L. Balinbin
Reporter

THE Department of Information and Communications Technology (DICT) said it is seeking the aid of the Anti-Red Tape Authority (ARTA) to expedite cell-site projects delayed by local government units (LGUs).

ARTA is the agency authorized to enforce the Ease of Doing Business Law, which sets deadlines for government agencies to act on permit applications, with the time allowed depending on the complexity of the transaction.

“We are now closely coordinating with ARTA para at least man lang mapabilis ‘yung pag process ng mga permits (to at least hurry along the permit process),” Undersecretary Eliseo M. Rio, Jr. told BusinessWorld in a phone interview Saturday.

He noted that some LGUs have been using the cell site projects of telecommunications companies to “generate income.”

“Pinapahirapan nila ang telcos, ‘yung real estate tax na kinukuha nila every year pataas ng pataas, at pinapasa lang ng mga telcos sa kanilang mga customers (The LGUs are giving the telcos a hard time, and their estate tax collections are rising every year. The added costs are getting passed on to the telco customers),” he said.

President Rodrigo R. Duterte signed into law in 2018 Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act.

The law requires applications or requests for government services to be acted upon within three days for simple transactions, seven days for complex transactions, and 20 days for highly technical transactions.

The law applies to all government offices and agencies in the Executive Department including LGUs, government-owned or -controlled corporations and other government instrumentalities.

Mr. Rio said that currently there are at least “27 requirements” that telecommunications companies have to comply with to get permits to erect cell sites.

“Minsan nagiging cause pa ng corruption (The applications are opportunities for corruption),” he added.

He said only around five of those requirements are the responsibility of the national government.

“Madali lang naman ang sa national [government]. Ang problema talaga ay dyan sa ibaba (processing applications with the national government is easy. The problem is worse the lower you go),” he noted.

Only about 400 cell sites were erected in the first quarter , Mr. Rio said, well below the government’s target of building 1,785 each quarter to meet the broader goal of 50,000 cell sites nationwide in seven years.

“Ang problema LGUs have the Local Government Code; they can make their own local regulations at ‘yan ang more or less nagiging problema natin kailangan siguro i-amend ‘yung Local Government Code, na ang provision on infrastructure dapat standard ‘yan for all LGUs (Under the Local Government Code, LGUs have the power to set their own rules, and that has become a problem. Maybe the Code needs to be amended to standardize the rules for infrastructure projects),” he said.

ARTA Director-General Jeremiah B. Belgica was asked to comment but had yet to reply at deadline time.

On Thursday, the DICT appealed to LGUs and homeowner associations (HoAs) to simplify their permit procedures for telecommunications companies erecting cell sites.

The DICT said streamlining the permit process will “support the accelerated rollout of cell sites and other ICT infrastructure for telecommunications companies and Internet Service Providers to benefit constituents and residents.”

It said LGUs and HoAs must do their part to address the need for connectivity during the pandemic.

Senate bill lays out employment standards for ‘gig economy’

A BILL seeking to define employment standards for the ‘gig economy’ after the pandemic has been filed in the Senate.

Senator Juan Edgardo M. Angara said Senate Bill No. 1469, which if passed will be known as the National Digital Careers Act, said there is a need to institutionalize employment standards as businesses reconfigure their work forces in the wake of the coronavirus 2019 (COVID-19) emergency.

“We are seeing the growth of the so-called gig economy in the country and with the extended period of the lockdown being implemented because of COVID-19, there will be even more activity on this front as businesses adjust to the new normal,” he said in a statement Sunday.

The gig economy depends heavily on freelancers or independent contractors. The government has so far supported digital freelancers through the DigitalJobsPH program that helps them find projects.

Under the bill, the Department of Information and Communications Technology (DICT), the Department of Education (DepEd), the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) are required to develop programs that will give digital entrepreneurs access to training, market information and innovation strategies.

Such digitally-enabled services include online teaching and tutoring, content creation, digital marketing, mobile app development, and search engine optimization.

It also tasks the DICT and the Department of Public Works and Highways (DPWH) to ensure broader access to high-speed internet.

“A lot of our activities under the new normal will rely on internet connectivity-be it education or commerce, so this must be among our national priorities now,” Mr. Angara also said.

The Department of Labor and Employment (DoLE) and the Department of Trade and Industry (DTI), among other agencies, have been tasked to set the employment standards for digital career workers, particularly on the prescribed minimum wage.

The bill will also incentivize digital workers or freelancers through the grant of full or partial scholarships for training, both here and overseas, as well as subsidies on the use of state-owned facilities, office space, and equipment.

The government will also provide grants-in-aid for acquiring computers, hardware and software. — Charmaine A. Tadalan

Short-term financial management for COVID-19

COVID-19 is generating unprecedented levels of challenges in company ecosystems — including supply chains, customer demand, strategic planning and operations, and liquidity — alongside high levels of uncertainty and volatility. Given this, it has become more essential than ever for companies to focus on short-term financial management as part of their overall business continuity plans.

This article discusses methods of short-term financial management, specifically (1) generating cash and protecting liquidity; (2) preserving working capital; and (3) creditor and debt management.

GENERATING CASH AND PROTECTING LIQUIDITY
To generate cash and protect liquidity, companies can look into cash reserves in subsidiaries and business units, as well as ways to repatriate said cash to areas of the business where it is most needed. Untapped loan facilities and other lines of credit are also options, but these require communication with lenders to confirm availability given these challenging times.

Liquidating short-term securities and other non-essential assets can also be a source of cash. However, care must be taken as to which assets to sell, given the current all-time low in asset valuations. Government stimulus funds and moratoriums on payment of certain bills can also help companies stay afloat. Similarly, insurance claims specifically for business interruptions should be explored. However, given insurers’ recent experience with SARS and MERS, it should be noted that some insurance contracts may include specific exclusions on pandemics or epidemics.

Even so, the cash generation exercise should not be short-lived, given the continuing uncertainty of the COVID-19 situation. Companies need to identify and sequence longer-term cash sources and maintain discipline to perform daily cash tracking, cash flow planning, and determining liquidity strategies. These longer-term cash sources can involve identifying alternative revenue sources for the company and looking at areas within the business where costs can be further optimized.

PRESERVING WORKING CAPITAL
Another area that needs to be managed is how to preserve the company’s working capital reserves. This requires looking into the three aspects of working capital: suppliers (payables), customers (receivables), and inventories.

Delaying payments to suppliers is one possible way to manage working capital. However, care must be taken to distinguish which suppliers are considered essential and non-essential for business continuity. In the case of essential suppliers, open, clear, and transparent communication is key. Companies cannot unilaterally decide to delay all outstanding payments when such payments may make or break key supplier relationships in these challenging times and further worsen the state of an already troubled supply chain. For businesses that have healthy financials, the situation may present a potential opportunity to re-negotiate more favorable payment terms.

Our present situation requires company customer relationship management teams to be more proactive with customers. One approach is for companies to offer discounts on receivables to accelerate payment. As with suppliers, this situation presents an opportunity to re-negotiate pricing and payment terms for existing contracts with customers while taking into consideration their respective financial health. It is crucial to establish better levels of communication with existing customers to establish stronger relationships and generate longer term value that benefits both parties.

In the case of inventory, the general tendency is for companies to liquidate excess inventory to generate as much cash as possible. However, care should be taken given the uncertainty of the pandemic in terms of reliability of the supply chain. There may actually be a need to increase the amount of inventory at hand to decrease the risk of shortages and further damaging customer relationships. Companies will need to reassess their traditional assumptions on economic order quantity and optimal inventory levels, among others.

CREDITOR AND DEBT MANAGEMENT
In the wake of disruption brought about by COVID-19, company short and long-term cash flow forecasts will need to be taken into account and reassessed to determine the likelihood of breaching any debt covenants, as well as the potential inability to service debts as they come due.

Scenario planning and analysis should be considered when forecasting said cash flows, while aggressive, base, and conservative (ABC) assumptions must be developed to take into account indeterminate factors. As an example, “aggressive” can assume fast recovery post-COVID (V-shaped), “base” can assume slower recovery post-COVID (U-shaped), and “conservative” can assume a prolonged impact of COVID (L-shaped). It will be best for companies to be proactive when it comes to discussions with lenders, who will especially appreciate transparency as key stakeholders in the business. Practicing transparency may even open doors to negotiating for better terms or even additional facilities. This is, of course, provided that the negotiating company can clearly prove that they have robust financial management plans in place, and have substantial, well-thought out assessments of how COVID-19 has impacted them.

STAYING ONE STEP AHEAD
COVID-19 continues to present unique challenges for companies today, dampening demand while simultaneously disrupting supply. Staying one step ahead and being proactive in short-term financial management as well as long-term value creation will allow companies to emerge stronger and wiser after this global crisis comes to pass.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Smith Lim is a Senior Director from the Transaction Advisory Services of SGV & Co.

Lawmaker says second wave of infections likely; cases at 12,513

By Vann Marlo M. Villegas and Gillian M. Cortez
Reporters

THE COUNTRY should expect a second wave of coronavirus infections as more industries reopen under a relaxed lockdown, a congressman said on Sunday, as 208 new cases were reported, raising the total to 12,513.

“A second wave is expected and we’re preparing for it,” Albay Rep. Jose María Clemente S. Salceda told DZBB radio, adding that the government had to count the economic costs of a lockdown.

The country has lost about P1.2 trillion in economic output because of the Luzon-wide lockdown that started in mid-March.

President Rodrigo R. Duterte locked down the main island, suspending classes, work and public transportation to contain the pandemic. He extended the so-called enhanced community quarantine for the island twice until May 15, and thrice for Metro Manila, key cities and regions until the end of the month.

The presidential palace yesterday warned the public not to be complacent after receiving reports of crowded malls on the first day of relaxed lockdown rules in many parts of the country at the weekend.

“We advise the public not to be complacent and to follow health protocols set by authorities,” presidential spokesman Harry L. Roque said in a statement.

“We must understand that we have started to slowly ease restrictions in order to revitalize the economy, and not because we are safe,” he added.

Also yesterday, the Department of Health (DoH) said the death toll from the virus rose to 824 after seven more patients died. Seventy-four more patients have gotten well, bringing the total recoveries to 2,635, it said in a bulletin.

Of the 208 new cases, 174 came from Metro Manila, one from Central Visayas and 33 were from the other regions, it added.

Thirty laboratories have been licensed to test COVID-19 samples, DoH said.

Meanwhile, the agency released return-to-work rules for places not under the enhanced community quarantine.

Under a memo dated May 11, employers must cut the number of people in the workplace by adopting work-from-home arrangements.

Employers must also measure the body temperature of their workers and monitor symptoms. Workers must wear protective equipment depending on work settings.

Companies must also check the travel history or exposure in the past 14 days of employees reporting for work.

The memo also includes quarantine guidelines for workers.

Under the rules, employers who choose to test employees may do so “in a representative sample of those who have returned to work physically and have a high risk of contracting COVID-19 due to the nature of the work,” citing frontliners as an example.

An inter- agency made up of Cabinet secretaries kept the cities of Cebu and Mandaue under an enhanced community quarantine.

Metro Manila — where the virus is concentrated — along with the provinces of Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales and Laguna were placed under a modified lockdown until May 31.

The modified lockdown allows more sectors to reopen with a 50% skeletal workforce.

About 2% or 191,963 of more than 100 million Filipinos have been tested, according to DoH.

The government seeks to boost its testing capacity to 30,000 samples daily by the end of the month, as it more than doubles accredited labs 66.

The government will buy more than a million polymerase chain reaction and rapid antibody test kits, apart from receiving kits from donor countries including China.

Crop damage from Typhoon Vongfong reaches P185.83M

TYPHOON Vongfong caused about P185.83 million in damages across three regions, destroying rice, corn and high-value crops and killing livestock, according to the Agriculture department.

In a statement, the agency said losses had been reported in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), Bicol and Eastern Visayas regions.

The storm (locally named typhoon Ambo) affected more than 40,000 farmers, damaging 9,977 hectares of agricultural areas equivalent to 10,366 metric tons of volume loss, it said.

It added that some crops avoided damage after an early advisory issued by Agriculture Secretary William D. Dar to regional field offices.

More than 93,000 hectares of land have been harvested for rice and 75,467 hectares for corn in the Cordillera Administrative Region, Ilocos Region, Cagayan Valley, Central Luzon, Calabarzon, Bicol, Western Visayas, Central Visayas and Eastern Visayas regions, the agency said.

Almost 417,000 metric tons of rice worth P7.01 billion and 208,890 metric tons of corn worth P2.17 billion were also saved.

“The rain showers from Ambo were beneficial to the dams in Central Luzon, raising the water levels of Angat and Pantabangan dams,” the Agriculture department said.

As of Sunday morning, the water level of Angat Dam was at 190.62 meters, 0.43 meter higher, according to the local weather bureau.

Meanwhile, the water level of Pantabangan Dam rose by 0.28 meter to 185.32 meters.

The agency said aid was available to farmers affected by the typhoon such as its quick response fund worth P700 million allotted to rehabilitate affected areas, and provide 109,586 bags of rice seeds, 10,116 bags of corn seeds and 1,195 kilos of assorted vegetable seeds.

It put crop and livestock damage in the Bicol region at P79.9 million, covering 3,885 hectares with production loss amounting to 4,564 metric tons, said Rodel P. Tornilla, executive director of the agency’s field office in the region.

Among provinces, Masbate posted the biggest crop loss worth P36.9 million. It said it was still validating damages in affected regions. — Revin Mikhael D. Ochave

Duterte visits Davao amid travel limits caused by COVID-19

PRESIDENT Rodrigo R. Duterte’s spokesman on Sunday defended him from critics after he visited his family in Davao City on a private jet amid travel restrictions meant to contain a novel coronavirus pandemic.

In a statement, presidential spokesman Harry L. Roque said the President had arrived in the southern city “to visit his family whom he has not seen in months and to assess the coronavirus disease 2019 situation in Mindanao.”

He said the pandemic had affected not just one part of the country but the entire Philippines. “As a father of the nation, President Duterte — considering his age and comorbidities — is a hands-on working chief executive who spent his weekend to check how this global health scare impacted the lives of people on the ground, especially those living outside Metro Manila and Luzon,” he added.

Mr. Duterte would be back in Malacañang in time for the next inter-agency task force briefing, Mr. Roque said.

Thousands of Filipinos have failed to go back to their hometowns after Mr. Duterte locked down the entire Luzon island on March 17, suspending classes, work and public transportation to contain the pandemic.

The virus has sickened 4.7 million and killed almost 314,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization. More than 1.8 million people have recovered, it added. — Gillian M. Cortez

#COVID-19 Regional Updates

Trade chief says failure to provide transport in MECQ areas not good for a company’s reputation

TRADE Secretary Ramon M. Lopez said failure to provide transportation assistance to employees within areas still under modified enhanced community quarantine (MECQ) does not reflect well on companies. Mr. Lopez sent the statement to reporters on Saturday, withdrawing his initial comments that employees who refuse to work due to public transport limitations could be at risk of losing their jobs. Metro Manila, Cebu City, and several provinces in Luzon remain under the MECQ policy, wherein public transport is still banned but more sectors and businesses are allowed to resume operations. Mr. Lopez, in a briefing Saturday, called on employers to provide onsite or near-site accommodations and transportation to workers. “Kung meron silang mga private vehicles, pwede rin pong gamitin ito (If employees have private vehicles, they are allowed to use these),” he said. The Management Association of the Philippines in April proposed a “demand-driven” transport system in Metro Manila, opening up public transport in phases for employees to gradually return to work. — Jenina P. Ibañez

125 more immigration officers at NAIA negative for COVID-19

ANOTHER 125 Bureau of Immigration (BI) officers posted at the Ninoy Aquino International Airport (NAIA) tested negative for coronavirus disease 2019 (COVID-19). These are on top of the 206 officers at the airport and 150 employees at the BI main office who were also negative for COVID-19 in results released earlier. Commissioner Jaime H. Morente said they are conducting mass testing for frontline officers, especially at the airport, as they are at risk of contracting the disease. “We are initially implementing this at NAIA, as well as our Main Office. We are planning to conduct testing in our other offices nationwide as well,” he said in a statement. Rapid testing has also been conducted at the BI detention facility for 159 at-risk inmates and personnel. “Thankfully, all tested negative during the rapid testing, but this does not mean that we will lower our guard,” Mr. Morente said. — Vann Marlo M. Villegas

Baguio City plans tax relief for local businesses

THE Baguio City council is preparing an ordinance that will provide local tax relief to businesses, including those that were allowed continued operations during the lockdown period. In a statement on Sunday, the local government said the draft law is set for publication, after which it will undergo hearings for consideration of additional suggestions. The current draft gives establishments until Nov. 30 to settle business taxes without interest or surcharges for delayed payment. The city administration said the council has requested the “local finance committee to submit recommendations on the pending measure for possible incorporation in the final version, which shall be tackled on the proposal’s third and final reading.” Section 192 of the Local Government Code of the Philippine (R.A. 7160) authorizes local governments to provide tax exemptions, incentives or reliefs. The tax relief is in line with the city’s economic recovery plan following the disruptions brought about by the coronavirus disease 2019 (COVID-19) outbreak. — MSJ

Nationwide round-up

Neighbors citing PHL court victory vs China in sea dispute

SOUTHEAST Asian nations, both with or without claims in the South China Sea, are now citing the 2016 international court ruling in favor of the Philippines to protest against China’s activities in the disputed waters, an expert said. Nguyen Hung Son, director general and head of the Institute for the South China Sea, Diplomatic Academy of Vietnam, said there is a new trend among Southeast Asian states of showing “greater recognition” of the ruling. The United Nations Permanent Court of Arbitration in the Haque favored the Philippines in its lawsuit against China in 2016, rejecting the latter’s nine-dash line claim to most parts of the South China Sea.“The Philippines after three years of keeping quiet on the tribunal’s ruling, this year did a remarkable thing of officially putting the tribunal’s ruling back onto its official policy in its note verbales sent with the UN,” Mr. Nguyen said Friday at the Virtual Speaker Series: Sailing a Course through Contested Waters, hosted by the United States Embassy in the Philippines. Mr. Nguyen also said the Philippine government’s action showed its neighbors that “the Philippines has not trashed the ruling as many suspected.” The Department of Foreign Affairs recently protested against the establishment of the “Nansha” and “Xisha” district in China’s self-declared “Sansha City,” which is within the Philippine territory. Malaysia and Vietnam had done the same in firing off note verbales against China, in which the two states committed to aligning their respective claims with the tribunal ruling. “What’s remarkable too, the recognition of the ruling of the tribunal also came from non-claimants,” he said, citing Indonesia and Singapore. Mr. Nguyen raised the importance of acknowledging the ruling, on top of demonstrating that the Association of Southeast Asian Nations (ASEAN) is not crippled by the coronavirus disease 2019 (COVID-19) pandemic. “We hear that the Chinese center for contemporary international relations submitted their report to the top leadership in Beijing, warning of an unprecedented international hostility towards Beijing after the pandemic,” he said. This, he said, “would indicate how insecure the Chinese leadership feels and the assessment of the negative strategic environment China is facing at the moment.” Moreover, he said the negotiation on the South China Sea Code of Conduct (CoC), which has been delayed by the pandemic, also lies on the willingness of China to modify its behavior in the disputed sea. China and the ASEAN had agreed to work on the completion of the CoC by 2022. — Charmaine A. Tadalan

OFWs required to sign at-your-own-risk form

THE Philippine Overseas Employment Administration(POEA) announced Friday that workers will not be deployed overseas unless they sign a declaration form indicating they understand the risks posed by the global coronavirus disease 2019 (COVID-19) pandemic. In its Advisory No. 60 dated May 15, the POEA said “Overseas Filipino Workers (OFWs) whether land-based or sea-based shall be allowed to be deployed abroad upon the execution of a Declaration signifying their knowledge and understanding of the risks involved as advised by the Philippine Government.” This comes after the national COVID-19 task force announced that OFWs will be allowed for deployment under the eased quarantine policies. POEA also said recruitment and placement agencies are now allowed to resume operations. Health care workers whose contracts were not signed before May 8 are still banned from deployment. — Gillian M. Cortez

Journalists group tells practitioners not to interview suspects without legal counsel

THE National Union of Journalists of the Philippines (NUJP) called on news organizations to include in their reporting manual the prohibition of interviewing persons who have been arrested without the presence of their legal counsels. NUJP noted that the media “may find themselves abetting possible miscarriages of justice” by interviewing those arrested without their lawyer. “As journalists, it is our duty not to cause or minimize harm,” NUJP said in a statement. The statement was prompted by the interviews of the media with Ronnel Mas, who was arrested for posting on Twitter that he will give a P50 million reward to anyone who can kill President Rodrigo R. Duterte. The prosecutor said the warrantless arrest of Mr. Mas was invalid but this defect in the arrest was “cured” when he admitted to the media that he posted the statement. He has been indicted for inciting to sedition. — Vann Marlo M. Villegas

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