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AFC campaign continues to underline solidarity against pandemic

OMAN HEAD COACH Branko Ivankovic, Thailand and Chiangrai United midfielder Ekanit Panya as well as Northern Mariana Islands international Enrico Del Rosario are the latest Asian football stalwarts to lend their voices in containing the transmission of the coronavirus pandemic in the Asian Football Confederation’s (AFC) #BreakTheChain series.

The widely supported mass awareness campaign continues to extend its reach throughout Asia and beyond with more than 130 Asian players and officials from 42 member associations answering the call to stand in solidarity during these challenging times by promoting the World Health Organization’s (WHO) guidelines and offering heart-warming messages of hope and unity.

The highly decorated Ivankovic, whose vast experience in Asian football include steering Islamic Republic of Iran to a third-place finish in the 2004 AFC Asian Cup as well as clinching three domestic titles with Persepolis FC, said: “I want to express my respect and appreciation to everyone who is battling this crisis on the frontlines.

“The sacrifices they have made are immeasurable and we must all pay tribute to the determination and tenacity of our health care workers battling this COVID-19 from around the globe.

“To everyone across Asia, I urge you to stay strong. These are difficult times, and we know staying at home has its own challenges, but it is also a privilege — one that our medical heroes do not have.

“The greatest gift we can give them at this moment is to follow the advice of your governments and health care experts, so I encourage everyone to join me to break the chain and stop the spread of this virus.”

Thai prodigy Ekanit, who netted the winner in the War Elephants’ 2-1 victory over United Arab Emirates in the FIFA World Cup Qatar 2022 and AFC Asian Cup China 2023 Asian Qualifiers last October, said: “Just as in football, the hardest defeats are those that hit you unexpectedly and now, we have been confronted by an invisible opponent that can strike anyone when you least expect it.

“There is no question that we are facing our toughest opponent yet and our only chance of survival is by presenting a united front to break the chain and to remain vigilant constantly.

“Since the start of this outbreak, there has also been an unprecedented wave of compassion, kindness and graciousness. Our strongest defense is our actions and we must continue to keep our faith in each other to overcome this crisis.”

Del Rosario, the first player from Northern Mariana Islands to join the campaign also features in today’s episode with more member associations from the Asian football family set to appear for the first time in the coming weeks together with some of the continent’s biggest names including former Manchester City defender and China PR legend Sun Ji Hai as well as Japan’s defensive lynchpin Maya Yoshida.

Team Lakay members highlight Igorot traits as they deal with crisis

AFFECTED like everybody else in the country by the coronavirus disease 2019 (COVID-19) pandemic, members of Baguio-based Team Lakay are turning to their Igorot heritage to get themselves through the crisis.

Left to do training on their own for now as government measures in place against the coronavirus prevent them from working on their game in the collective in their gym, members of Team Lakay said the last month and a half have been a challenge in more ways than one but they are getting by and making things happen.

They said this is in part to the Igorot traits they have grown to see, and which are proving to be of good use especially in times like this.

“The Igorot people are known to be resilient, self-sustaining, village-oriented, and we are used to simple living,” said Team Lakay coach and founder Mark Sangiao in underscoring simple living being the root of the Igorot culture’s survival.

“Remember that during the war, Cordillera was able to sustain themselves because of the strong ties that we have here, coupled with the patience and the resiliency that we have,” he added.

For former ONE Championship world lightweight champion Eduard Folayang, obedience is another quality that the Igorots have that is serving their community well in the time of COVID-19.

“The Igorot people are obedient, we make sure to follow our figures of higher authority, especially our elders. We also practice what we call ‘binadang,’ which means helping those in need, which is very important during times like this,” said Mr. Folayang, who last fought in the ONE Circle in January here, where he lost to Pieter Buist by split decision.

Discipline, too, is another Igorot quality that is getting them through all this, said reigning ONE world strawweight champion Joshua Pacio, a good reason, he added, why the number of COVID-19 cases in their area is not that high compared to other places.

“The Baguio-Benguet area is somehow one of the places with the least number of cases of people that have tested positive for the coronavirus, and I believe that it’s because of how disciplined the Igorot people are. We listen and we take seriously what the government says. We stay at home and we don’t go out, and we make sure that our health and safety is a must,” said Mr. Pacio, who is currently the lone Team Lakay member holding a world title in ONE Championship.

While there is still no vaccine against COVID-19, Team Lakay members said staying healthy and strong is a must to guard against contracting the highly contagious disease.

“We’ve managed to stay strong throughout this period because I believe that the Igorot people are naturally healthy people. The Igorots are physically strong because we are very hard workers, and that helps make our immune system strong as well. Having a strong immune system is very important nowadays so that we don’t get sick with the virus,” said featherweight contender Edward Kelly.

Team Lakay is one of the top teams in ONE Championship, holding at one point four world titles all at the same time.

ONE Championship activities are currently on hold because of COVID-19 but it said it is bent on resuming immediately once conditions permit it. — Michael Angelo S. Murillo

Regulator says Chinese offshore gaming offers essential services

By Gillian M. Cortez, Reporter
and Genshen L. Espedido

THE LOCAL gaming regulator on Monday said offshore gaming operators in the country — mostly Chinese companies that employ their own citizens — offer essential services and should be allowed to operate during the lockdown in Luzon amid a coronavirus pandemic.

The government would let them reopen provided they have paid their tax liabilities, Diane Erica Jogno, a senior offshore gaming officer at the Philippine Amusement and Gaming Corp., (Pagcor) said at a news briefing.

The country’s anti-coronavirus task force allowed offshore gaming operations here, mostly based in Metro Manila, to reopen with up to 30% of their workforce after they were classified as part of the business process outsourcing (BPO) sector.

But the IT and Business Process Association of the Philippines said at the weekend Philippine Offshore Gaming Operators (POGO) are not business process outsourcing companies, which are licensed by the Philippine Economic Zone Authority. POGOs are under Pagcor.

Ms. Jogno said POGOs normally enlist support system service workers, who are allowed to operate during the quarantine period.

The other POGO components — players and operators — are usually overseas, she said.

Support service workers “provide customer service, support and business development functions, among other things, for their operators,” Ms. Jogno said.

Only offshore gaming operators with a certificate from the Bureau of Internal Revenue will be allowed to reopen, she added.

The local gaming regulator collected P5.73 billion in regulatory and other fees from POGOs last year and P1.8 billion last quarter.

Operators should settle their tax liabilities first before being allowed to reopen, Party-List Rep. Ronnie L. Ong told BusinessWorld in a Viber message on Sunday.

“I am for the reopening of POGOs but they must be required to pay taxes first,” said Mr. Ong, who is also vice chairman of the House committee on games and amusements.

He said the government should monitor tax payments by POGOs through gaming employment license identifications issued by Pagcor.

Their workers must also have a tax identification number, a Bureau of Immigration and Deportation number, must go through cultural lessons on how to act and behave in the Philippines and submit a clearance that they are COVID-19-free., Mr. Ong said.

House Bill 5267, which is pending on second reading approval, requires offshore gaming operators to pay a 5% tax on gross receipts.

Foreign employees working for POGOs are also presumed to earn at least P600,000 yearly and must pay a 25% tax on their salaries, wages, annuities, compensation, remuneration, honoraria and allowances.

Albay Rep. and House ways and means committee chairman Jose Maria Clemente S. Salceda asked the Senate to adopt the House bill.

“The Senate can adopt my committee’s reform when it resumes session, if we want to increase the tax take from POGOs,” he said in a statement on Sunday. “In the meantime, let’s get them to settle their liabilities, and if they can comply with minimum health standards, we can consider reopening them.”

President Rodrigo R. Duterte on March 17 locked down the entire Luzon island, suspending work, classes and public transportation to contain the coronavirus outbreak that has sickened more than 9,000 and killed at least 623 people in the Philippines.

People should stay home except to buy food and other basic items, he said.

Mr. Duterte relaxed the lockdown for some areas of the island starting May 1 and extended the so-called enhanced community quarantine for Metro Manila, some cities and provinces until May 15.

Coronavirus cases hit 9,485 with 623 deaths, DoH says

By Vann Marlo M. Villegas, Reporter

THE Department of Health reported 262 new coronavirus infections on Monday, bringing the total to 9,485.

The death toll climbed to 623 after 16 more patients died, it said in a bulletin. One hundred one more patients have gotten well, bringing the total recoveries to 1,315, it added.

Of the 262 new cases, 47% or 122 were from Metro Manila, a third or 88 were from Central Visayas and a fifth or 52 came from other regions, DoH said.

The agency said 1,772 health workers have been infected, 319 of whom survived while 34 died.

DoH said 113,574 people have been tested — 11,917 were positive, while 101,416 were negative.

Health Undersecretary Maria Rosario S. Vergeire told a news briefing DoH was working with the Department of Transportation and the Bases Conversion and Development Authority to set up four swabbing centers in Metro Manila and Bulacan.

The designated swabbing centers are the Philippine Arena in Bulacan, Mall of Asia Arena in Pasay City, Enderun Tent in Taguig City and Palacio de Manila tent along Roxas Boulevard.

These swabbing centers will increase daily testing capacity by 5,000 when they open next week, Ms. Vergeire said.

Additional lab encoders were also hired to speed up the release of test results and reach the target of 30,000 tests daily, she said.

There were now 22 licensed testing laboratories, while 75 have applied for certification.

Ms. Vergeire said the government has set up isolation facilities in jails — a 48-bed facility at the Quezon City Jail, a 40-bed facility at the New San Fernando District Jail and an 80-bed facility at the district jails in Pagbilao and Lucena City in Quezon province.

She said 373 inmates and workers at the Bureau of Jail Management and Penology have been tested.

At least 195 inmates and 38 jail employees have tested positive for the virus and DoH was coordinating with the Philippine Red Cross to treat the patients.

Ms. Vergeire earlier said they were planning to start targeted testing in detention facilities.

The Bureau of Corrections earlier said there were 50 confirmed cases at the Correctional Institute of Women in Mandaluyong City and the national penitentiary in Muntinlupa City.

Three of them have died — two from the women’s prison and the first and only case at the New Bilibid Prison.

Nine inmates and nine workers at the Quezon City jail have tested positive for COVID-19, while more than 300 inmates at the Cebu City Jail were infected.

Press freedom was among coronavirus casualties — FMFA

GOVERNMENT rules amid a Luzon-wide lockdown meant to contain the coronavirus pandemic have restricted press freedom and free expression, according to a media watchdog.

Authorities found ways to “weaponize” directives against targeted groups including journalists and activists, Freedom for Media, Freedom for All (FMFA) said in a report to celebrate World Press Freedom Day on March 3.

“Governments around the world have been quick to include restrictions on expressive freedoms in the array of official responses to control the spread of COVID-19,” according to the report.

“And yet, open communication has been among the mechanisms used to enhance the effect of government action,” it added.

President Rodrigo R. Duterte locked down the main Philippine island of Luzon on March 17, suspending work, classes and public transportation to contain the outbreak. He later extended this until May 15 for Metro Manila, among other areas.

The media watchdog said requiring media accreditation for exemption from the lockdown was “an add-on mechanism of bureaucratic control.”

Media have submitted to the accreditation despite the limited space for events and briefings it entailed, FMFA said.

Government accreditation is generally understood by the Philippine press as a limitation to freedom, access to sources and the people’s right to know, it said.

While some government agencies have been proactive in releasing information about the health crisis, response to Freedom of Information requests has generally been delayed, it added.

FMFA said more than 60 people have been charged for violating a law that gave Mr. Duterte special powers to deal with the coronavirus disease 2019. The law also penalizes people who spread fake news and information.

“The provision clearly opens up opportunities for any officer, with little understanding of the constitutional provision, to determine report or social media post to be ‘fake news,’” the watchdog said.

“This provision adds to the danger of random charges based only on unfounded complaints from officials who feel they have been the object of criticism,” it added.

FMFA is composed of the Center for Media Freedom and Responsibility, National Union of Journalists of the Philippines, MindaNews, Philippine Press Institute and Philippine Center for Investigative Journalism. — Vann Marlo M. Villegas

#COVID-19 Regional Updates (05/04/20)

Cebu COVID-19 cases expected to keep increasing with targeted testing

CEBU City health workers conduct contact tracing and take swab samples in the village of Mambaling on May 1 as part of the local government’s massive rapid testing program to isolate positive patients, majority of whom are asymptomatic. — CEBU CITY PIO

CORONAVIRUS disease 2019 (COVID-19) cases in the Central Visayas region, which breached the 1,000 mark on Sunday, is expected to keep increasing with targeted testing in three major urban areas, according to the regional health office. Central Visayas, which had 1,081 cases based on test results released May 3 afternoon, had the third highest in the country after the capital Metro Manila and the neighboring region of CALABARZON, composed of the provinces of Cavite, Laguna, Batangas, Rizal, Quezon. “The increase is expected as our contact tracing teams are working double time to test the contacts of those previously tested positive in the community, closed settings and in the health facilities as well as among our repatriates,” Department of Health-Central Visayas (DoH-6) said in a statement. “The present data we have paint a sobering picture, but the increasing trend is bound to continue as we start this week the targeted, strategic community testing in the cities of Cebu, Lapu-Lapu and Mandaue,” it added. The targeted testing is set to start Wednesday. Cebu City had the highest COVID-19 cases with 900, including over 300 at the city jail. Mandaue comes second with 89, with 60 at its jail facility. Meanwhile, no new cases have been recorded in the other provinces of Bohol, Negros Oriental, and Siquijor, which have all started to ease restrictions on May 1 under the general community quarantine guidelines. — MSJ

ECCP-Southern Mindanao hopeful cancelled EU trade reps visit will push through next year

THE European Chamber of Commerce of the Philippines (ECCP) Southern Mindanao Business Council is optimistic that investors from European Union (EU) member states will resume interest in opportunities in the region after the coronavirus disease 2019 (COVID-19) global crisis settles down. “This will hopefully start with the visit of the EU Trade Attachés to Davao in the coming year,” ECCP-Southern Mindanao Chair Antonio S. Peralta said in an email interview last week. The EU delegation was supposed to visit Davao Region last March 30. He said aggressive investment promotion efforts for Davao Region and Mindanao must continue despite the disruptions brought about by COVID-19. “Thailand and Vietnam presently continue to be aggressive in the pursuit of new business locators in their countries,” he said. Mr. Peralta noted that major EU investments were attracted last year following the Davao City Investment Conference (ICON) in June. He cited French-owned Biogrow Substrates Philippines, which is setting up a coco peat production facility in Davao del Sur. The company aims to roll out the project with the lifting of quarantine restrictions in the region. He also said a Swedish company recently bought a majority stake in a local business process outsourcing company. — Maya M. Padillo

Nationwide round-up

OFW PhilHealth contribution hike now voluntary; law amendment in the works

REUTERS

FOLLOWING uproar from overseas Filipino workers (OFWs), President Rodrigo R. Duterte has ordered the Philippine Health Insurance Corp. (PhilHealth) to make their higher premium contributions voluntary. PhilHealth recently issued guidelines on the higher contribution from OFWs, which is based on the implementing rules and regulations (IRR) of the Universal Health Care (UHC) Act. The PhilHealth circular cites the new 3% rate from 2.75% last year for all direct contributors, including OFWs, earning P10,000-60,000 monthly. It also makes payments a requisite for OFWs to get permit to leave the country. Presidential Spokesperson Harry L. Roque, in briefing Monday, said Mr. Duterte has already issued the directive making the payment optional as well as not a requirement for securing an overseas employment certificate. PhilHealth President Ricardo C. Morales said in a separate briefing that they will impose a moratorium on all collection of premiums until May 30. Health Secretary Francisco T. Duque III and legislators called for a suspension, or even outright cancellation, of the mandatory increase. “I call for the suspension of Section 10.2.C of the IRR of the UHC Law in light of COVID-19 and its economic impact on OFWs,” Mr. Duque said in a social media post Monday.

LEGISLATORS
Senator Juan Edgardo M. Angara, also in a social media post, said, “PhilHealth should consider postponing/cancelling any premium rate increase. Not the time when economies are down worldwide.” Mr. Angara also questioned the legality of preventing OFWs from leaving for non-payment of the premium. Senator Juan Miguel F. Zubiri also said that while he believes the rate increase provided in the law may have its merits, its implementation at this time should be reconsidered. At the House of Representatives, ACT-CIS Party-List Rep. Jocelyn P. Tulfo said she is already drafting a bill to amend the UHC Act. “Even though curative legislation is in the works, I am hoping the PhilHealth takes the faster option of following the more OFW-friendly policy through the amendment of PhilHealth Memorandum Circular 2020-0014,” said Ms. Tulfo, vice chair of the House committee on overseas worker affairs. — Gillian M. Cortez, Charmaine A. Tadalan, Genshen L. Espedido, and Vann Marlo M. Villegas

5M more families to be included in COVID-19 cash aid

THE government’s cash aid program for low-income households affected by the lockdown measures to contain the spread of the coronavirus disease 2019 (COVID-19) will be expanded to cover an additional five million families. Presidential Spokesperson Harry L. Roque, in a briefing Monday, said the increased beneficiaries was recommended by the national task force handling the COVID-19 response. “Magbibigay pa po tayo ng ayuda sa ilalim ng Social Amelioration Program sa hindi lalampas sa five million na karagdagang pamilya doon po sa first tranche ng SAP (We will be giving aid under the Social Amelioration Program to not over five million additional families under the first tranche of the SAP),” Mr. Roque said. The amelioration program, led by the Department of Social Welfare and Development (DSWD), was initially allocated funds for 18 million families at P5,000-P8,000 per month for two months, depending on the region’s wage rate.

DAR
Meanwhile, the Department of Agrarian Reform (DAR) has authorized its regional and provincial officers to directly initiate and monitor the process for data sharing agreements with the DSWD. In a memorandum circular, Agrarian Reform Secretary John R. Castriciones granted the authority following DSWD’s announcement that it can now process and execute data sharing agreements with other national government agencies and local government units involved in the delivery of their own social amelioration measures. The data sharing agreements is provided under Republic Act 11469 or the Bayanihan to Heal as One Act. Recently, Mr. Castriciones directed Undersecretary for Support Services Offices Emily O. Padilla to implement a program to support agrarian reform beneficiaries (ARBs) amid the COVID-19 crisis. Data obtained by DAR regional field personnel will be cross-verified with those in DSWD’s database for easier identification of ARBs in need of financial support. The DAR is targeting to provide support services to 350,000 ARBs nationwide. — Gillian M. Cortez and Revin Mikhael D. Ochave

Senate approves alternative learning bill on final reading

THE Senate approved on Monday the proposed Alternative Learning System (ALS) Act on third and final reading. The bill provides a framework for the implementation of distance learning by the Department of Education (DepEd) and the Commission on Higher Education (CHEd), which is particularly crucial as schools adjust structures in the face of the coronavirus disease 2019 (COVID-19) threat. “Napakahalaga ng Alternative Learning System ni Senator Gatchalian dahil ‘yan ang makakabigay ng sistema para sa (ALS is very important because that will provide the framework for) DepEd and CHEd to start working from home or studying from home,” Senate Majority Leader Juan Miguel F. Zubiri said in a virtual briefing Monday. With 22 affirmative votes and no negative, Senate Bill No. 1365 hurdled the chamber. Eight counterpart bills are pending at the committee level at the House of Representatives. The bill defines the ALS as “a parallel learning system that provides a viable alternative to the existing formal education instruction.” It uses both non-formal and informal sources of knowledge and skills. The measure also ensures that quality education is provided in unreached, underserved and conflict-affected communities. It also provides for the training of teachers to deliver the ALS program to out-of-school youth, adults and children in extreme cases as well as learners with disabilities. — Charmaine A. Tadalan

COVID-19 disrupts TV viewing—study

More TV viewers during quarantine as networks shift to ‘thoughtful programming’

Television has gained an additional 3.8 million viewers upon the onset of the coronavirus disease 2019 (COVID-19) pandemic, a global measurement and analytics company observed in its most recent research.

In its COVID-19 and the State of Media in the Philippines report, Nielsen noted a significant upsurge in TV viewing throughout the day, with the bulk of viewers watching at night time.

The report also noted the emergence of a new “prime” time as the pre-noon timeslot (10 am to 12 noon) garners the highest growth in ratings with a viewing bump of 60%.

Ernestine Amper, executive director of Nielsen Media in the Philippines, attributed such an increase to “forced confinement coupled with concerns on the rapid increase in the number of cases in the country”, adding that the same could be said of increased consumption of online media.

“In these times of uncertainty, Filipinos want to get as much information as they can about COVID-19 and its impact to their lives, work, and community that is why it is not surprising that their need for COVID-19 information extends from on-screen to online,” Ms. Amper said in a statement.

While tuning in to TV for information is a given, as nearly 90% of Filipinos are found to have access to television, the Nielsen report noted that viewers are actively searching for COVID-19 content and are engaging in online conversations about this topic.

COVID-19 and other related keywords are trending mainstays in social media sites like Twitter and even Google Trends.

Increased viewing among AB class
Furthermore, Nielsen’s report revealed that among Filipino TV viewers, the A & B classes are watching more, spending an additional hour over their usual 6-hour TV screen time

From an average of 6.4 hours during the pre-COVID-19 period (which the report dated January to March 7), the said class is spending 7.4 hours on TV during COVID-19 (March 8 to April 15).

In terms of occupation, the report added, office workers who are currently working from home spend more time watching TV.

Professionals have the highest increase to their viewing (1.1 hours), making their average time spent to 5.2 hours.

The manual workforce, on the other hand, which includes laborers and farmers or those who follow a no-work/no-pay policy, posted minimal growth in terms of TV viewing duration, with 0.2 to 0.5 additional time.

‘Thoughtful programming’ showing up
In observing the current media landscape, Nielsen found that aside from ramping up the volume of news content, broadcasters are presenting a lineup of shows that espouse the idea of ‘thoughtful programming’.

Major networks re-aired hit drama series on primetime that presented a common theme of ‘hope’ and a strong sense of ‘community’, Ms. Amper observed.

Moreover, with classes canceled, she also noted that networks are replaying classic educational programs catered to students.

“We’ve noted that local broadcasters acknowledge their influence and responsibility amid this pandemic — knowing their strength to entertain and inform, they have curated a lineup of programs with the purpose of uplifting the viewing public,” the executive director said.

“Based on the ratings performance of these shows, it seems that broadcasters are well attuned to the type of content the Filipino audience needs at these trying times.”

Key advertisers ‘still on the frontline’
Findings in advertising were also gathered in Nielsen’s report. Compared to the same period last year, their research found out that TV and radio ad spend softened in the first quarter of the year (Q1) with a more pronounced dip during the height of the pandemic for TV at -26%.

The share of investment, nonetheless, is still led by TV at 74% in the same quarter versus the same period last year.

The report also observed top advertisers continuing to advertise in spite of a drop in ad investment, with some—especially pharmaceutical advertisers—maximizing the heightened media consumption by spending more on TV ads.

Notably, the report found some key advertisers boosting their radio ad spending during the COVID-19 period (Mar 8-31, 2020 vs. previous year) as they lessened their TV budgets from last year.

As Nielsen expected, on-site businesses such as cinema, hotels, restaurants, and department store ads were found to have declined during the COVID-19 period, compared to last year.

Food product categories such as seasonings and canned goods, however, increased in ad investment.

Categories that are in high demand such as cough and cold remedies and vitamins, as well as sanitation products, were found to grow their spending for Q1 compared to last year.

“This pandemic is pushing the industry against the wall — it’s forcing us to abruptly shift our focus, adapt a different mindset, and experiment with new things,” Ms. Amper said. “It is by experiencing all these that we are able to carry on and come out stronger post-pandemic.” — A.B. CONOZA

COVID-19 CASES IN ASEAN AS OF MAY 3

ASEAN COVID Update-050520

As of May 3, there are 48,116 confirmed COVID-19 cases in ASEAN, with 11,802 recoveries, and 1,619 deaths. Singapore has the highest number of cases (18,205); Malaysia has the most number of recoveries (4,326); and Indonesia has the highest number of deaths (831).

This pandemic is posing an array of cybersecurity challenges

While the eyes of the world are focusing on how the Covid-19 outbreak is threatening to overload the healthcare system and the global economy, bad actors are taking advantage of the pandemic by adapting and updating attack methods as the crisis unfolds.

While cybersecurity takes the backseat to more urgent concerns like workforce well-being, availability of financing, and the resilience of operations and supply chains, cyber criminals have found an opportunity to target already vulnerable firms.

A surge in cybersecurity threats

A study from IBM Security and Morning Consult on 2020 Consumer & Small Business COVID-19 Awareness Study highlights that – since the virus was declared a pandemic on March 11 – IBM X-Force has seen a more than 6,000% increase in Covid-19-related spam campaigns. From phishing emails and WHO impersonations, to U.S. banking institutions offering relief funds, spammers and scammers are targeting small business owners pretending to offer anything from stimulus relief funds to small business loan applications, all in an attempt to steal these individuals’ information and gain access to their bank accounts.

Another report, “COVID-19 cyberwar: How to protect your business,” shows that the coronavirus-themed spam include new threats such as virus-themed sales of malware on the dark web, and Covid-19-related domains that are 50 percent more likely to be malicious than other domains registered during the same time period.

Closing the loopholes

Employees working remotely can also make organizations more vulnerable. The shift to remote work has opened new loopholes for cybercriminals to exploit since many displaced workers lack the secure equipment or protocols to optimize digital safety. Employees aren’t the only ones who are unprepared: enabling remote working is fairly new for many organizations. Security preparedness is uneven as organizations are making an unprecedented transition to remote working.

IBM notes from their cumulative research that organizations that are highly resilient tend to do three things well:

  • organize and deploy resources,
  • communicate regularly,
  • and coordinate responses.

Cybercriminals are seeing the coronavirus crisis as an opportunity to exploit loopholes. Organizations can see it as an opportunity to beef up their critical security needs and iterate their business continuity plans even while in the middle of this pandemic. Steps can still be taken to mitigate the impacts of an uncertain environment plus use the experience for future crisis planning.

BUSINESSWORLD INSIGHTS: Philippine economy during and after COVID-19

By Adrian Paul B. Conoza
Special Features Writer, BusinessWorld

The deep impact of the coronavirus disease 2019 (COVID-19) pandemic to the economy has been widely observed and discussed around the world. As the fight against this crisis continues, both the global and local economic situation, as well as the outlook upon the end of the crisis, is gradually being unraveled.

Keeping this conversation going, the first iteration of BUSINESSWORLD INSIGHTS: An Online Forum Series, held last April 29, shed light on the current situation of the Philippine economy in light of the present crisis and the direction it is headed to when the dust of the pandemic settles.

Moderated by BusinessWorld editor-in-chief Wilfredo Reyes, the forum gained insights from Antonio Lambino II, assistant secretary of the Department of Finance (DoF); Souleymane Coulibaly, World Bank’s lead economist and program leader for Brunei, Malaysia, Philippines, and Thailand; Benedicto Yujuico, president of the Philippine Chamber of Commerce and Industry (PCCI); and Calixto Chikiamco, co-founder and president of the Foundation for Economic Freedom (FEF) and a columnist for BusinessWorld.

Calibrated reopening informed by data

Talking about the government’s initiatives in helping the economy, Mr. Lambino initially pointed out that the most urgent priority for the present administration is to save lives and protect communities amid the ongoing pandemic.

Their action plan to achieve these, he added, is outlined in the administration’s 4-Pillar Socioeconomic Strategy, namely: to support vulnerable sectors through emergency support initiatives; to marshall resources to help the Department of Health (DoH) and frontline healthcare workers fight COVID-19; to take fiscal and monetary actions to finance emergency and short-to-medium term initiatives to keep the economy afloat and; to formulate and implement an economic recovery plan to create jobs and sustain growth.

The DoF assistant secretary also pointed out that strong macroeconomic fundamentals have put the country in a good position to respond to the pandemic, citing recent economic figures such as the 5.9% gross domestic product (GDP) growth in 2019 and the annual GDP growth of 6.4% from 2016-2019, among many others.

“We attribute these strengths to the economic and fiscal policy continuity from one administration to the next, and to President Duterte’s conservative approach to fiscal and economic policy,” Mr. Lambino added.

When asked when the Development and Budget Coordination Committee (DBCC) will finalize new macroeconomic assumptions, Mr. Lambino said that such decisions are continuously being deliberated, since the decisions they are faced with are not only economic but are also ethical and moral.

“It’s not just about the economic slowdown; it’s also about how many people will get infected as we open up. Slowly, in a moderate way, or in a quick way? How many people will die after getting infected? What is the mortality rate? What are the estimates given various scenarios?” he explained.

The decisions the economic team and the administration have to make, he pointed out, should be driven by science and informed by data.

“We need to make sure that the effectiveness of our response in terms of this economic recovery plan depend on the accuracy of our diagnosis,” Mr. Lambino said. “That’s why we are trying to understand the needs of the business sector as much as possible as we craft this response plan.”

He also added that the plan to be implemented will have a focus on infrastructure “to improve the connectivity backbone, both physical and digital”, coupled with continued investments on social programs and a transformation of the education system “to operate and educate youth under a new normal”

Addressing and preparing for ‘shocks’


The several shocks brought by the pandemic was highlighted by Mr. Coulibaly of World Bank. He stressed that the crisis has brought a ‘supply shock’ to the Philippine economy, and it consequently ushered in a ‘demand shock’.

“It is a supply shock to the economies around the world including the Philippines…because labor supply is constrained by direct health impact (i.e., people getting sick and dying) and indirect health impact (i.e., self-quarantine and time taken to care for family members),” he explained.

Measures to suppress or contain the propagation of the virus such as travel bans, social distancing, and lockdowns, Mr. Coulibaly added, have also contributed to this ‘supply shock’ as they directly affect the production of some sectors that are currently deemed nonessential.

“The immediate impact of this supply shock is an incoming shortfall of workers and entrepreneurs that can aggregate into a demand shock,” he further explained.

To address these shocks, Mr. Coulibaly said that the health crisis has to be put under control in the first place.

“The longer it takes to address the health crisis, the deeper the combined supply and demand shocks might be, with the additional risk of the stability of the financial sector weakening,” he said.

The lead economist added that the pandemic provides an opportunity for the Philippine economy to accelerate its move towards digitalization, “which would, in turn, improve the aggregate productivity of the economy over the medium term.”

For Mr. Coulibaly, the current crisis is also teaching countries a big lesson on preparedness, specifically in terms of the health system, continuity of businesses, and “securing monetary and fiscal space” in policymaking.

“By strengthening its preparedness, I think the Philippines will be ready for the big shocks that will come in the future,” he said.

Reopening of business hoped


For Mr. Yujuico, the pandemic is forcing businesses to explore all possibilities to overcome the impacts of the crisis due to quarantine regulations.

Small firms are expecting from the government drastic measures concerning financial assistance as the health crisis alters the economy, he added.

“In the short term, our members are requesting support in the forms of tax breaks and loan assistance and a review of processes to accelerate the movement of goods,” he said.

Mr. Yujuico also observed that while MSMEs are very thankful for the avowed support of the government, they are much aware that this assistance will not be sustainable in the long run.

“It is not that they are not thankful. It’s that they are worried. They know whatever assistance is given to them, it’s not sustainable, and so they want to be able to help themselves. That is why they want to open as soon as they can and they want to try,” he said.

This pandemic, according to Mr. Yujuico, should teach the country to work together in fighting an enemy they cannot see.

“Each and every Filipino must realize that we have a common enemy to fight, and to win this war we have to act as one and be united as a nation to achieve a common goal,” he said. “If we do this, I think we will overcome.”

Moreover, he proposes that strong incentives be given to health professionals in order to keep them from going abroad to seek employment opportunities and fulfill their dreams.

“If we have all of these health workers here, the Philippines will be better able to cope with whatever pandemic there is,” he said.

Mr. Yujuico also raised the need to utilize technology and innovation to address this kind of crisis, such as in implementing a national citizen registration system, using artificial intelligence for contact tracing and early hotspot risk detection, and taping on big data for national monitoring of health statistics.

“We do have the young people now in our country that know how to do this,” he added. “So it is the challenge of the private sector and the government to try to find who these people are, utilize their talents, and put them to good work.”

Reforms, partnerships needed


Pushing for structural reforms and collaboration with the private sector are some of the notable points from Mr. Chikiamco regarding the government’s move in helping the economy bounce back.

For him, the weakness of institutions in implementing a strategy to counter the effects of the crisis is in face aggravating it. He cited as an example the lack of a national ID system, which could have made the distribution of social amelioration funds easier.

“If we don’t make structural reforms as a result of this crisis, the painful experience we underwent would have gone for nothing,” he said.

Commenting on the Balik Probinsya program that proposes to bring people back to their provinces in order to decongest Metro Manila, Mr. Chikiamco stressed that if the program will be successful there should be jobs in the countryside.

“I think what the government has to do is to make investing in the countryside attractive…[T]he government should look into mining, forestry, and agriculture,” he added. “Those are the things we should really focus on if you really want people to move on the countryside or move on the second-tier cities.”

The FEF co-founder and president also emphasized that the private sector could be trusted to behave responsibly when businesses reopen, “especially that they want to protect their own workers and also make sure that they do not endanger their customers.”

He also noted that the private sector has taken the initiative for mass testing, which he suggests the government should be ramping up with the private sector.

“Government should really work closely with the private sector in finding a way out of this crisis that we have,” he said, adding that the private sector is much eager to work with the government not only to do business but to help people.

Upcoming BUSINESSWORLD INSIGHTS legs will discuss“Understanding the ‘New Normal’ for Businesses after the COVID Crisis” on May 6; and “COVID-19 and The Philippine Stock Market: Uncertainties and Opportunities” on May 13.

BUSINESSWORLD INSIGHTS is made possible by sponsors Megaworld Corporation and Globe Telecom; eLearning platfrom partner Olern; partner organizations Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Association of National Advertisers, and Bank Marketing Association of the Philippines; and media partner The Philippine STAR.

Slower Q1 GDP growth seen — poll

By Marissa Mae M. Ramos
Researcher

PHILIPPINE gross domestic product (GDP) growth likely sharply slowed in the first three months of 2020, as the economy faced supply and demand shocks due to the coronavirus disease 2019 (COVID-19) pandemic, a BusinessWorld poll showed.

Using 2018 prices as the base, a BusinessWorld poll of 11 economists yielded a median GDP growth of 2.9% for the first quarter, easing from the 6.7% expansion in the fourth quarter of 2019 and 5.7% in the first quarter of 2019.

If realized, this would be the slowest expansion in a decade or since the 1.8% growth posted in the fourth quarter of 2009.

The forecast is also way below the government’s 6.5%-7.5% target range, which used the previous base of 2000 prices. Economic managers said they are assessing the impact of COVID-19 and the stringent measures imposed to contain it before revising official targets.

On Thursday, National Economic and Development Authority (NEDA) Acting Secretary Karl Kendrick T. Chua said the economy can still post growth in the first quarter.

Earlier, NEDA projected economic growth for the year between 4.3% at the high-end, and 0.6% contraction at the low-end, when the Luzon-wide lockdown was still set to be lifted on April 12.

At that time, NEDA said the low-end of its growth estimate is “still too high” even if the enhanced community quarantine (ECQ) is extended beyond one month “or if the spread of COVID-19 is unabated even after the ECQ.”

The government placed Luzon, which accounts for over 70% of GDP, under lockdown since March 17. The ECQ in Metro Manila and nearby regions has been extended until May 15, but some “low and moderate-risk” areas in Luzon have been under general community quarantine since May 1.

Economists said that even with the lockdown taking effect only in mid-March, its effect on GDP growth for the first quarter is still significant.

“[T]he bulk of the [first quarter] operated largely under normal conditions, outside of course, the area affected by Taal’s volcanic eruption in January,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail. He gave a 3.9% estimate for the first quarter.

“The ECQ implemented in March, however, shuttered businesses and hampered general economic activity with panic buying for basic goods and necessities likely the only driver of growth in that period,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort shared a similar assessment, adding firms that continued to operate during ECQ as “another offsetting factor.” He expects GDP growth in the first three months to grow between two and three percent.

Colegio de San Juan De Letran Graduate School Dean Emmanuel J. Lopez sees the economy on a “major slump,” estimating growth “not to exceed two percent.”

“Demand, which is represented by consumer spending comprising about 60-70% of GDP is on a major slowdown. Even investment is at a standstill, which negatively affected local employment. The situation may fuel a major economic slump internationally, which may take years to recover,” he said.

Continuum Economics Economist Jessie Lu expects the Philippine economy to slow to 3.1% in the first quarter. “Motor vehicle sales declined at an average rate of 7% year on year in January and February. Government spending also lost strength, dropping by 12.2% in February before fiscal stimulus kicked in,” she said.

“March saw a drastic pullback in manufacturing activities, with [Philippine] manufacturing PMI (Purchasing Managers’ Index) slumping to the lowest level ever of 39.7, from 52.3 in February,” she added, referring to the IHS Markit’s PMI, wherein a reading above 50 signals expansion and those under 50, contraction. PMIs are considered leading indicators of future manufacturing activity as materials for processing must be ordered in advance.

Latest reports showed the Philippine government has set aside around P1.49 trillion, or equivalent to eight percent of GDP, to counter the economic fallout from the coronavirus crisis.

MORE PAIN TO COME
Economists expect the economy to decelerate further or even contract in the second quarter and the rest of the year as the effect of the prolonged lockdown worsens.

“For the rest of the year, we expect the ECQ and future modifications such as gradual lifting and movement restrictions to persist until the end of the year, and with it, a slowdown in consumption that will likely push growth in negative territory,” said Security Bank Corp. Chief Economist Robert Dan J. Roces, who gave a four-percent GDP growth forecast for the first quarter.

“GDP growth could decline by the most in [the second quarter of 2020] due to the extended ECQ in Metro Manila and in other high-risk areas up to May 15… though offset by the government’s huge stimulus measures/COVID-19 programs, monetary easing measures, and other interventions to partly make up for the economic losses due to the lockdown,” RCBC’s Mr. Ricafort said.

ING Bank’s Mr. Mapa expects GDP growth momentum to be “impaired severely” by COVID-19 and subsequent lockdown measures.

“At the end of the day, we had made the painful but easy choice of taking on economic pain to avert public health pain. We expect a recession in 2020 with [contractions in the second and third quarter] as consumption and investment activity remain sidelined… The modest response from the government with the fiscal rescue plan looked to plug holes in the economy left by the virus, but we note that it may not have been enough to avoid the contraction,” Mr. Mapa said.

“BSP (Bangko Sentral ng Pilipinas) easing will help get the economy back on its feet at the quickest time but the downturn looks imminent unless we see a more substantial rescue package to plug more holes in the economy,” he added.

For Continuum Economics’ Ms. Lu, a first-quarter slowdown “could be a harbinger of the pain to come.”

“[The second-quarter] number is bound to be worse. Recovery of economic activities is likely to take some time and will be dependent on how the virus situation unfolds,” she said.

BusinessWorld’s Analysts Polls