Home Blog Page 8376

#SavePornhub: Thailand’s online porn ban prompts backlash

BANGKOK — Thailand’s government said on Tuesday it had banned Pornhub and 190 other websites showing pornography, prompting social media anger over censorship, and a protest against the decision.

Digital minister Puttipong Punnakanta said the block was part of efforts to restrict access to porn and gambling websites, which were illegal under the country’s cybercrime law.

But many Thai users trended the #SavePornhub hashtag on Twitter and criticised the shutting of a site in a country that was among the Top 20 by daily traffic for Pornhub in 2019 and which has a globally-known sex industry.

According to Pornhub, Thai users spent more time on the site last year, at 11 minutes and 21 seconds, than elsewhere in the world.

An activist group called Anonymous Party said: “We want to reclaim Pornhub. People are entitled to choices.”

A few dozen activists protested the block outside the digital ministry, holding banners saying “free Pornhub” and “reclaim Pornhub.”

Pornhub did not immediately respond to a request for comment.

Internet research firm Top10VPN said it saw a spike in searches from Thailand for Virtual Private Networks (VPN), which help circumvent censorship, by 640% compared to the September-October daily average, after Pornhub was inaccessible from late on Monday.

Some Internet users asked whether the ban was about trying to protect Thai morals, or because the site featured some compromising royal images.

Thailand’s government has faced months of youth and student-led protests demanding the removal of Prime Minister Prayuth Chan-ocha, a former junta leader, as well as reforms to reduce King Maha Vajiralongkorn’s powers.

A hashtag that translates as #HornyPower is trending on Thai Twitter following the Pornhub block, accompanied by comments or memes that the government could face greater opposition now beyond the protesters.

“If someone doesn’t hate the current military government, now they probably do,” said a Twitter user named Jirawat Punnawat.

Emilie Pradichit, director of the Manushya Foundation, which campaigns for digital rights, said the decision showed Thailand was “a land of digital dictatorship, with conservatives in power trying to control what young people can watch, can say and can do online.” — Patpicha Tanakasempipat/Reuters

Bahrain latest country to vaccinate frontline workers with COVID-19 shot

Inoculating frontline workers with a COVID-19 shot is likely to stir a debate in the scientific community about the potential risks of vaccinating people before formal tests for efficacy and safety are finished, as governments scramble to tame the pandemic and revive struggling economies. Photo via REUTERS

DUBAI — Bahrain has started inoculating frontline workers with a Chinese COVID-19 vaccine, state news agency BNA said on Tuesday, the latest country to take the unusual step of granting emergency approval for a shot before finishing safety and efficacy tests.

The program will use a shot developed by Chinese state-owned pharmaceutical company Sinopharm, which is in Phase III trials in the United Arab Emirates, Egypt, Bahrain, and Jordan, BNA said.

Bahrain’s Health Minister Faeqa bint Saeed Al Saleh said on Tuesday, in comments carried by BNA, that the use of the vaccine complies with the country’s regulations on exceptional licensing in emergency cases.

“The results of Phase I and Phase II clinical trials showed the vaccine is safe and effective,” she said, adding that Phase III trials were going smoothly and without serious side effects.

Around 7,770 people have so far volunteered in the Phase III trials in Bahrain and have received a second dose, the minister added.

The move is likely to stir a debate in the scientific community about the potential risks of vaccinating people before formal tests for efficacy and safety are finished, as governments scramble to tame the pandemic and revive struggling economies.

“If vaccines are to be rolled out before formal approval and licensing, there needs to be a clear appreciation of the risk/benefit ratio,” said Eleanor Riley, a professor of immunology and infectious disease at Britain’s University of Edinburgh.

Anyone getting inoculated in these circumstances should be made aware of the risks and monitored for side-effects, she said.

Russia in August become the first country in the world to grant regulatory approval to a coronavirus vaccine, launching a mass inoculation scheme after less than two months of human testing.

Tuesday’s move by Bahrain comes after the UAE in September authorized similar emergency use of the same vaccine for frontline workers at high risk of infection with the new coronavirus.

In July China launched its emergency use program for three experimental shots, including the Sinopharm one just as its Phase III trials began.

Abu Dhabi-based artificial intelligence and cloud computing company Group 42 (G42) which is handling the trials in the Middle East said last month the vaccine had been administered to more than 31,000 people across the four countries.

Several ministers and senior officials have already received the vaccine in both the UAE and Bahrain, including Bahrain’s crown prince.

On Tuesday, Prime Minister and Vice-President of the UAE and ruler of Dubai Sheikh Mohammed bin Rashid al-Maktoum tweeted a picture of him receiving a shot of a COVID-19 vaccine.

The UAE and Bahrain have pursued ties with China, seeking capital and technology to diversify their economies away from hydrocarbon revenues. However, key ally the United States has warned Gulf states to proceed with caution and to consider their relationship with Washington. — Lisa Barrington/Reuters 

Trade gap shrinks as import fall slows, exports recover

LATEST TRADE growth data showed exports snapped a six-month losing streak in September, while imports declined, albeit at a slower pace that same month.

Merchandise exports grew by 2.2% to $6.22 billion in September following a 12.8% yearly decline in August, preliminary data by the Philippine Statistics Authority showed.

September marked the first expansion in exports in seven months or since February when it posted an annual growth of 2.8%.

Meanwhile, merchandise imports declined by 16.5% to $7.92 billion, lower than the 21.3% contraction recorded in August, as well as the slowest since February’s minus 11.6% .

Trade deficit in September was recorded at $1.71 billion, smaller than the $3.41-billion gap in the same month last year.

Year to date, exports of goods figured in at $45.87 billion, down by 13.8% compared to the $53.21 billion in 2019’s comparable months. Still, this was below the 16% contraction expected this year by the Development Budget Coordination Committee (DBCC).

Meanwhile, imports were down 26% to $61.95 billion on a cumulative basis against the DBCC’s target of an 18% contraction for the year.

That brought the year-to-date trade balance to a $16.07 billion deficit, smaller than the $30.48-billion shortfall in the same nine months last year.

The country’s total external trade in goods – the sum of export and import goods – was $14.14 billion in September, 9.2% down year on year. This brought the total trade in the nine-month period to $107.82 billion, 21.2% lower than the $136.90 billion a year ago.

For the month, China was the top market for Philippine goods, accounting for 19.6% of the total or $1.22 billion. It was followed by Japan with a 15.7% share ($974.78 million) and the United States’ 14.5% share ($903.46 million).

China was also the country’s biggest source of foreign goods purchased in September, accounting for 25.3% of the total at $2.01 billion. Other major import trading partners were Japan and Korea, which make up 9.1% ($723.74 million) and 8.1% ($642.85 million) of total imports, respectively. — Marissa Mae M. Ramos

Johnson & Johnson fails to overturn $2.12B baby powder verdict, plans Supreme Court appeal

Missouri’s highest court on Tuesday refused to consider Johnson & Johnson’s (J&J) appeal of a $2.12 billion damages award to women who blamed their ovarian cancer on asbestos in its baby powder and other talc products.

The Missouri Supreme Court let stand a June 23 decision by a state appeals court, which upheld a jury’s July 2018 finding of liability but reduced J&J’s payout from $4.69 billion after dismissing claims by some of the 22 plaintiffs.

Johnson & Johnson said it plans to appeal to the US Supreme Court.

It said the verdict was the product of a “fundamentally flawed trial, grounded in a faulty presentation of the facts,” and was “at odds with decades of independent scientific evaluations confirming Johnson’s Baby Powder is safe, does not contain asbestos and does not cause cancer.”

The New Brunswick, New Jersey-based company also said it will set aside a $2.1 billion reserve for the verdict, to be reflected in its year-end financial results.

Kevin Parker, a lawyer for the plaintiffs, said in a statement: “Johnson & Johnson should accept the findings of the jury and the appellate court and move forward with proper compensation to the victims.”

Johnson & Johnson said in May it would stop selling its Baby Powder talc in the United States and Canada.

The company said last month it faces more than 21,800 lawsuits claiming that its talc products cause cancer because of contamination from asbestos, a known carcinogen.

In its June decision, the Missouri Court of Appeals said it was reasonable to infer from the evidence that Johnson & Johnson “disregarded the safety of consumers” in its drive for profit, despite knowing its talc products caused ovarian cancer. It also found “significant reprehensibility” in the company’s conduct.

Johnson & Johnson has faced intense scrutiny of its baby powder’s safety following a 2018 Reuters investigative report that found it knew for decades that asbestos lurked in its talc.

Internal company records, trial testimony, and other evidence show that from at least 1971 to the early 2000s, J&J’s raw talc and finished powders sometimes tested positive for small amounts of asbestos. 

Johnson & Johnson shares closed down 19 cents at $138.50 on the New York Stock Exchange. — Jonathan Stempel/Reuters

China slams the brakes on Ant Group’s $37 billion listing

HONG KONG/NEW YORK — China suspended Ant Group’s $37 billion listing on Tuesday, thwarting the world’s largest stock market debut with just days to go in a dramatic blow to the financial technology firm founded by billionaire Jack Ma.

The Shanghai stock exchange said it had suspended the company’s initial public offering (IPO) on its tech-focused STAR Market, prompting Ant to also freeze the Hong Kong leg of its dual listing scheduled for Thursday.

This followed a meeting with China’s financial regulators on Monday during which Mr. Ma and his top executives were told that Ant’s lucrative online lending business would face tighter scrutiny, sources told Reuters.

The Shanghai bourse described Ant’s meeting with financial regulators as a “major event” which, along with a tougher regulatory environment, disqualified Ant from listing.

In China, analysts interpreted the move as a slap down for Mr. Ma, who had wanted Ant to be treated as a technology company rather than a highly regulated financial institution.

“The Communist Party has shown the tycoons who’s boss. Jack Ma might be the richest man in the world but that doesn’t mean a thing. This has gone from the deal of the century to the shock of the century,” Francis Lun, CEO of GEO Securities, said.

To revive its listing, Ant is trying to establish if it needs to disclose more information to the Shanghai exchange about its relationship with regulators, or if the bourse expects it to resolve all its issues with the regulators, which would take much longer, a person with knowledge of the matter said.

At an event last month attended by Chinese regulators, Mr. Ma said the financial and regulatory system stifled innovation and must be reformed to fuel growth. He also compared the Basel Committee of global banking regulators to “an old man’s club”.

Ant believes the public criticism put Mr. Ma in the crosshairs of regulators, the person said.

The suspension reverberated across markets. Alibaba Group Holding, which owns about a third of Ant, fell 9% in early U.S. trading, wiping nearly $76 billion off its value, more than double the amount Ant was planning to raise.

“This is a curve ball that has been thrown at us … I don’t know what to say,” said one banker working on the IPO.

SHARPER SCRUTINY

With its unique business model and the absence of rivals in China or elsewhere, analysts say Ant has mainly thrived as a technology platform away from the banking sector’s regulations, despite its array of financial products.

But Beijing has become uncomfortable with banks increasingly using micro-lenders or third-party technology platforms such as Ant for underwriting loans amid fears of rising defaults and a deterioration in asset quality in a pandemic-hit economy.

Reuters reported last month that regulators had scrutinized banks that used Ant’s technology platform excessively for underwriting consumer loans as part of a drive to curb risks in the country’s financial sector.

The tougher regulatory focus on Ant’s cash cow and rapidly growing consumer lending business had emerged as a key concern for investors in the IPO, despite the company’s attractiveness as a financial technology player.

Ant originates demand from retail consumers and small businesses and passes that on to about 100 banks for underwriting, earning fees from the lenders with minimal risk to its own balance sheet.

Ant’s consumer lending balance was 1.7 trillion yuan ($254 billion) at the end of June, or 21% of all short-term consumer loans issued by Chinese deposit-taking financial institutions. Only 2% of the loans it had facilitated were on its balance sheet, its IPO prospectus showed.

“It’s the right move to regulate what’s essentially a financial institution as their peers. And it’s wrong not to do that in the past, and the mistake is being corrected. It will have a negative impact on pricing,” said Zhong Daqi, founding partner of Guangzhou Zeyuan Investment Management Co.

Under draft rules published on Monday by China’s central bank and banking regulator, small online lenders must provide at least 30% of any loan they fund jointly with banks.

A banker in Hong Kong close to other Chinese fintechs said those firms thought the new rules were tailor-made for Ant. The banker said Ant may have to split its businesses and make payments, micro-lending and wealth management separate units.

SORRY FOR THE INCONVENIENCE

Ant was set to go public in Hong Kong and Shanghai on Thursday after raising about $37 billion— including the so-called greenshoe option of the domestic leg—in a record IPO that had attracted leading global investment firms.

It was also a sensational draw for mom-and-pop investors in China and Hong Kong who bid a record $3 trillion, equivalent to the annual economic output of Britain, while for the Hong Kong leg retail investors borrowed heavily from banks to buy shares.

An official at a Chinese state-backed investment firm, which is also an existing investor in Ant, wondered whether it would be “politically correct” to make fresh investments in the company given its regulatory run-in.

Starting as a payments processor in 2004, Ant quickly built an empire by offering users short-term loans credited within minutes, as well as selling insurance and investment products.

China’s state-backed Economic Daily newspaper said in a commentary that the IPO suspension showed regulators’ determination to protect the interests of investors and the most pressing matter was for Ant to carry out “rectifications.”

“Ant may be just falling victim to their own size and success,” said Alex Sirakov, senior associate at advisory firm Kapronasia.

Ant apologized to investors for any inconvenience, adding it would give further details on the suspension of its Hong Kong listing and applications for refunds as soon as possible.

“We will properly handle the follow-up matters in accordance with applicable regulations of the two stock exchanges.”

Alibaba said it would support Ant to adapt and embrace the evolving regulatory framework.

CICC and China Securities Co, co-sponsors for Ant’s STAR IPO, did not immediately respond to requests for comment.

US banks JPMorgan and Citigroup declined to comment, while Morgan Stanley did not immediately respond to a request for comment. The three Western banks are co-sponsors of Ant’s Hong Kong IPO along with CICC. — Julie Zhu, Meg Shen and Greg Roumeliotis/Reuters

Typhoon Rolly death toll climbs to 24; infra damage at P5.76B

THE DEATH toll from typhoon Rolly (international name: Goni), the world’s strongest typhoon so far this year, has climbed to 24 while 26 others were injured and five remain missing, according to the latest report from the Philippine National Police.

Majority of the fatalities at 20 were from Bicol, the region hit hardest by the typhoon.

Three were from Calabarzon and one from Mimaropa.

The injured consists of 22 from Bicol and four in Calabarzon.

The police, among the frontline emergency responders, deployed

5,804 officers for search and rescue operations and another 1,556 in evacuation centers.

Typhoon Rolly exited the Philippine area on Tuesday, leaving a trail of over 402,000 families composed of 1.62 million people affected across six regions.

As of November 3, the National Disaster Risk Reduction and Management Council (NDRRMC) reported that at least 106,642 families were still displaced.

In Bicol alone, nearly 80,000 homes were affected, including 20,942 that were totally destroyed and 58,696 partially damaged, according to the Office of Civil Defense’s regional office.

INFRA, AGRI DAMAGE
The cost of damage to roads, bridges, flood-control structures, and public buildings has reached over P5 billion, the Department of Public Works and Highways (DPWH) reported on Tuesday

Of the total P5.756 billion, the estimated cost of damage to roads is P1.52 billion, Public Works and Highway Secretary Mark A. Villar said in a statement.

He also cited the P458.2 million damage to bridges, P2.04 billion to flood-control structures, P367.25 million to public buildings, and P1.38-billion to other infrastructure.

“As expected, our assessment teams identified majority of the destruction in Bicol Region amounting to P4.621 billion,” Mr. Villar said.

The department said many roads in the island province of Catanduanes are still “impassable.”

“DPWH quick response teams are fast-tracking clearing operations along the affected road sections in the island as we have no alternative routes as of the moment. These roads must be opened soonest for the relief efforts which Catanduanes badly needs right now,” he said.

In agriculture, NDRRMC Spokesperson Mark E. Timbal, in a viber message to reporters, said damage is initially estimated at P1.74 billion across the regions of Bicol, Calabarzon, Mimaropa, and Eastern Visayas.

RELIEF AND RECOVERY
While authorities take stock of Rolly’s destruction, relief operations are also in full swing. 

“Government assistance provided as of 12NN today… have been estimated to 26.6 million pesos,” Mr. Timbal said.

The movement of goods in most of the typhoon-hit areas has also resumed, according to Trade and Industry Secretary Ramon M. Lopez. Mr. Lopez, in a radio interview with DZBB on Tuesday, said the department’s regional directors have reported that shipping in most affected provinces are back in operation, but some roads are still being cleared.

Ang flow of goods — importante ‘yunay tuluy-tuloy din (— that’s important — is continuous),” he said.

A price freeze on basic necessities and prime commodities is being implemented in areas that have declared a state of calamity.

Fines for traders found violating the price freeze range between P1,000 to P2 million, Mr. Lopez said.

The Energy department also announced a price freeze on household liquified petroleum gas and kerosene in Camariñes Sur after the provincial government declared a state of calamity.

The price freeze started Monday and will be in effect until November 16. In a Viber advisory on Monday evening, the Department of Energy said price rollbacks will be implemented while increases are strictly prohibited within the 15-day period.

This comes a day after the agency declared a price freeze in Cavite, which declared a state of calamity earlier. Other affected provinces have yet to issue similar declarations.

Mr. Lopez also confirmed in a mobile message to reporters that the department will offer micro-financing and livelihood kits for business owners in the areas affected by the typhoon. The funding will come from the Small Business Corporation, he said.

The Department of Labor and Employment, for its part, said it will release funds to employ 5,000 workers who will help in the clearing operations of Catanduanes, where typhoon Rolly first made landfall. “I will send an amount to hire at least 5,000 people to clean the streets and the debris of typhoon Rolly,” Labor Secretary Silvestre H. Bello III said in a briefing on Tuesday. ARTA: DON’T ‘WAIT-AND-SEE’The Anti-Red Tape Authority (ARTA), meanwhile, asked the Social Welfare department to proactively process food and cash aid if local governments in typhoon-hit areas have not released assistance within two days.

ARTA Director-General Jeremiah B. Belgica, in a statement on Tuesday, said field or regional offices of the Department of Social Welfare and Development (DSWD) should monitor disaster-stricken areas and check if sufficient food and cash aid have been distributed.

If none has been extended by the local government within two days, the DSWD field office should automatically send a report to their central office to send food and cash assistance instead of waiting for a request from the local chief executive.

The local government officials concerned will be investigated.

“There will be a presumption of serious neglect of duty and grave misconduct which are both serious offences for administrative cases to be filed with the Office of the Ombudsman and which would merit immediate preventive suspension,” ARTA said.

“In times of calamities, a wait-and-see method is already a thing of the past,” Mr. Belgica said.

In the case of the current calamity, 10 local government heads are due to be summoned by the Department of Interior and Local Government (DILG) for reportedly being absent in their respective areas when typhoon Rolly pummeled parts of  the country.

DILG Secretary Eduardo Manahan Año, in his report to President Rodrigo R. Duterte on Monday night, said two of the mayors are from Bicol, four from Mimaropa, two from the northern Luzon area, and two from the Visayas.

“I cannot give their names yet until investigations are conducted and cases are filed against them,” Mr. Año said.

The officials could face administrative sanctions before the Ombudsman for dereliction of duty and gross negligence.

DDR DEPARMENT
In another development, a lawmaker on Tuesday defended the need to pass a law that will create a separate department on disaster management following criticisms that it will just worsen an already bloated bureaucracy.

“It (proposed law) does not merely create an agency. It institutionalizes disaster preparedness, response, and future-proofing as a national responsibility with an institutionalized framework,” said Representative Jose Maria Clemente S. Salceda, who represents the 2nd District of Albay, one of the provinces in Bicol.

Mr. Salceda is the principal author of House Bill 5989 or the Disaster Resilience Act, which will establish the Department of Disaster Resilience (DDR) tasked to lead the government’s preparedness, response and recovery programs.

Senators Franklin M. Drilon and Panfilo M. Lacson have said it would be better to strengthen existing agencies rather than setting up the DRR, which could cost the government at least P1.5 billion and billions more for the salaries, capital outlay, and operational expenses. — Gillian M. Cortez, Arjay L. Balinbin, Jenina P. Ibañez, Angelica Y. Yang, Kyle Aristophere T. Atienza, and Emmanuel Tupas/PHILSTAR

October manufacturing index falls

By Beatrice M. Laforga, Reporter

PHILIPPINE MANUFACTURING data worsened in October as demand remained weak and job cuts persisted amid a coronavirus pandemic, according to a survey by British information provider IHS Markit Ltd.

The country’s manufacturing Purchasing Managers’ Index (PMI) dropped to 48.5 last month from 50.1 in September, the seventh time the index fell below the 50 neutral mark.

It was better than record lows posted at the height of the pandemic in April, when strict lockdowns were enforced.

Manufacturing purchasing managers’ index of select ASEAN economies, October (2020)

A reading above 50 means manufacturers reported an improvement, while falling below the threshold indicates worsening conditions.

“Despite broadly stabilizing in September, the latest PMI data signaled that operating conditions across the Philippine manufacturing sector worsened in October as the economic fallout from the coronavirus disease 2019 (COVID-19) pandemic persisted,” IHS Markit said in a statement posted on its website.

Companies experienced a renewed fall in new orders amid business closures and weakening client demand, it said. “Job losses extended into the fourth quarter, whilst purchasing activity also dropped.”

Business confidence remained positive, however, and improved amid hopes of higher production in the year ahead, according to the statement.

“This decline may be telling us all that the reopening might be causing some momentary upticks, but demand itself has yet to resurrect from the deep decline,” Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said in an e-mail.

“It may also be signaling a long challenging road to recovery to pre-COVID-19 levels of domestic and external demand,” he added.

The Philippines tied with Malaysia in third place among six Association of Southeast Asian Nations, trailing behind Thailand, whose index improved to 50.8 and Vietnam’s 51.8.

The country’s index was slightly below the 48.6 regional average, but still better than Indonesia (47.8) and Myanmar (30.6).

The index for most of Asia showed manufacturing conditions improved in October, with strong global demand for electronics expected to lift the sector in the coming months, Alex Holmes, an economist at Capital Economics, said in a note on Monday.

The Purchasing Managers’ Index is a weighted average of five indices — new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and purchase stocks (10%).

IHS Markit traced the Philippines’ index decline to the lingering weak demand and business closures.

FEWER ORDERS
It said production volumes shrank again faster last month, but the contraction was still marginal, as most companies reported weaker consumer demand.

The survey also found that new orders fell again last month after a brief uptick in September, mainly due to weaker domestic demand. This was tempered by higher new orders overseas, which rose for the second straight month.

Manufacturing companies in the Philippines cut staffing levels sharply, with employment falling for the eighth straight month, it said.

“Another monthly reduction in backlogs of work highlighted evidence that spare capacity persisted across the manufacturing sector,” it added.

A renewed fall in new order inflows led companies to reduce their stores of inputs. Stocks of both raw materials and finished goods were depleted, which companies linked to supplier shortages and demand uncertainty, IHS Markit said.

Supply chain issues remained evident as delivery times lengthened in October, extending the current period of deterioration in vendor performance to 15 months. “Longer delays were widely linked to transportation restrictions,” it said.

IHS Markit said the reopening of businesses would support a pickup in the economy, although coronavirus infection rates in the Philippines remained high compared with regional peers.

“Until virus cases are tamed domestically and globally, we are likely to see a protracted recovery in manufacturing production,” Shreeya Patel, an economist at IHS Markit, said in the statement.

Meanwhile, input prices at Philippine companies increased due to higher raw material costs and supplier surcharges. The rise, however, was the slowest since May.

Output prices also rose marginally. Those that reported an increase said they had passed on the higher cost burdens, while those that posted lower charges said the move was part of discounting strategies to attract more buyers.

Despite the gloomy numbers last month, business expectations for the next 12 months remained positive, IHS Markit said.

Manufacturers were expecting production to increase next year on expectations of further expansion plans and new products.

“The degree of confidence was below the long-run series average, however, as some firms continue to expect that COVID-19 will have a long-term impact on production,” it added.

The deteriorating manufacturing conditions showed the Philippine economy was struggling to go back to normalcy, said Emmanuel J. Lopez, dean at the Colegio de San Juan de Letran Graduate School in Manila.

“The manufacturing sector is still picking up the pieces but will slowly recover in the coming weeks and months as the economy slowly goes back into a semblance of normalcy,” he said in an e-mailed reply to questions on Tuesday.

Lockdowns in most areas of the country have been eased since June as the government tries to revive the economy, which is expected to shrink by 6% this year.

Oxford Economics said in a note on Monday deteriorating external conditions amid renewed quarantines in some parts of Europe might threaten the gains recorded in most Asian economies after the lockdown.

“With external conditions deteriorating anew amid lockdowns in parts of Europe, we expect the downward pressures to intensify,” the think tank said. “A (Joe) Biden win in the US elections would provide some relief, but positive impacts might not be felt until H2 2021.”

The 2020 US presidential election is scheduled for Nov. 3. Voters will choose presidential electors who in turn will vote on Dec. 14, to either elect a new president and vice-president or reelect the incumbents Donald Trump and Mike Pence, respectively.

Manufacturing purchasing managers’ index of select ASEAN economies, October (2020)

PHILIPPINE MANUFACTURING data worsened in October as demand remained weak and job cuts persisted amid a coronavirus pandemic, according to a survey by British information provider IHS Markit Ltd. Read the full story.

Manufacturing purchasing managers’ index of select ASEAN economies, October (2020)

Bureau of Customs beats October revenue collection goal

THE BUREAU OF CUSTOMS (BoC) again exceeded its collection goal in October due to improved valuation and higher import volume, beating for the fifth straight month its goal that had been slashed several times on a grim economic outlook.

The agency collected P50.9 billion last month, beating its collection goal of P48.4 billion by 5.2%, it said in a statement on Tuesday.

“BoC’s positive revenue collection performance is attributed to the improved valuation and intensified collection efforts of all the ports,” it said.

The bureau also cited improved import volume and state efforts to ensure unhampered movement of goods domestically and internationally during the coronavirus pandemic.

Last month’s revenue was still 11.7% lower than P57.652 billion collected in October last year.

Customs said seven out of the 17 collection districts beat their targets for the month. These were the collection offices in Batangas, Manila, Zamboanga, Subic, Clark, Limay and Cebu.

It has collected P448.95 billion this year, 14.9% lower than a year earlier and accounting for 88.7% of its full-year target.

BoC’s collection target for the year was trimmed several times to P506.15 billion as the economic slowdown and lockdowns are expected to dampen government’s tax take.

Meanwhile, the Bureau of Internal Revenue, the country’s biggest tax-collecting agency, had yet to release its October collection data.

The two agencies earlier exceeded their combined nine-month target by 8.2% after collecting P1.82 trillion.

Finance Secretary Carlos G. Dominguez III on Monday reiterated that the government would not introduce new taxes despite the widening budget gap, which is expected to hit 9.6% of economic output this year.

He also said they were not considering to sell state assets to generate more income.

The budget deficit almost tripled to P879.2 billion in the nine months to September from a year earlier as tax collections fell, while spending continued to rise amid the pandemic.

Philippine economic managers expect the economy to shrink by as much as 6.6% this year. — Beatrice M. Laforga

Maynilad waives rate increase for metro customers next year

By Revin Mikhael D. Ochave, Reporter

MAYNILAD Water Services, Inc. on Tuesday said it won’t increase rates next year to help ease the economic burden felt by its customers amid a coronavirus pandemic.

“With this deferral, Maynilad hopes to alleviate the day-to-day struggles of its customers as they and the whole country strive to recover from adversity and rise stronger than before,” Metro Manila’s west zone water provider said in a statement.

Maynilad said it would waive the rate increases it was qualified to enforce in 2021, such as the next tranche of the approved rate rebasing adjustment and the mandated rise based on inflation.

Rate rebasing is held every five years and allows water providers such as Maynilad to recover their operating, capital maintenance and investment expenses.

The Metropolitan Waterworks and Sewerage System Regulatory Office had approved an increase of P1.95 per cubic meter (cu.m.) in the company’s basic charge for next year, according to Maynilad Corporate Communications head Jennifer C. Rufo.

The increase would have been the third tranche in the staggered implementation of the adjustment approved for the 2018 to 2022 rebasing period, she said in a mobile phone message.

“The second tranche for the implementation of approved adjustment this year was also deferred,” Ms. Rufo said.

Both Maynilad and Manila Water Co., Inc., which provides water to the capital region’s east zone, waived the next tranche of yearly rate increases for 2020 after President Rodrigo R. Duterte criticized them for what he called were onerous contracts with the government.

Under the rate rebasing period from 2018 to 2022, Maynilad was allowed to increase rates by P5.73 per cu.m., to be enforced in tranches.

Ms. Rufo said the inflation adjustment for 2021 is 2.7% of the basic charge, equivalent to a P1.03 per cu.m. increase. Maynilad serves about 9.8 million customers in its concession area, she said.

Maynilad provides water to areas in the west zone of the National Capital Region such as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, Malabon, Manila, Makati and Quezon City, as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta and Rosario.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

Coronavirus pandemic pushes millennials to home ownership

By Denise A. Valdez, Senior Reporter

MAE E. DIZON (not her real name), 24, bought a P2-million house and lot in Cavite province at the height of the coronavirus pandemic in June as an investment after getting a hefty performance bonus from her company.

“Before the pandemic, I planned several out-of-the-country trips,” she said in a Messenger chat. “The money I originally allotted for those went to the house.”

Ms. Dizon, who works as a trainer at PruLife in the financial district of Taguig City, is part of a growing number of young property buyers who now spend less on travel and leisure and take more interest in the liquid real estate market.

BW Bullseye 2020-focusWith massive joblessness, wage cuts and business failures, one would expect people to be more cautious about making the biggest investment of their lives — buying a house.

House prices have been falling as the world goes through the worst global economic crisis since the Great Depression in the 1930s, causing some nations to enter into either a recession or depression

Residential prices are expected to drop by 13% by yearend, as vacancy increases to 15.3% amid subdued demand for completed projects, property consultancy firm Colliers International Philippines said.

Phinma Property Holdings Corp.’s clients aged 20 to 30 years rose significantly during the health crisis, according to Chief Executive Raphael B. Felix.

“One reason is because their spending patterns changed,” he said in a Zoom Cloud Meetings call. “There are travel restrictions, so they can save a lot more.”

Twenty-five-year-old Jon Michael V. Mendoza’s savings grew during the lockdown, having skipped going to the beach or weekend parties simply because there were none.

After getting a job promotion in May, he bought a condominium unit in Pasig City. He’d been looking at property ads on social media, and he bought it because opportunities were too good to pass up.

“Condominium prices went down,” Mr. Mendoza said in a Messenger call. “I was comparing current rates with what I was given when I talked to agents last year. Prices really fell.”

While residential take-up slowed by 28% to 24,900 units in the nine months through September, sales remain good considering the current conditions, said Joey Roi H. Bondoc, research manager at Colliers.

“We still attribute the good sales performance during the period to attractive payment terms offered by developers,” he said in an e-mail. “We see these flexible schemes being extended to buyers of mid-income to ultra-luxury projects.”

‘SAFEST INVESTMENT’
During the lockdown, two-thirds of the buyers of Imperial Homes Corp., which develops solar-powered houses, were millennials, Chief Executive Officer Emma M. Imperial said at a recent virtual roundtable discussion.

“The performance of sales with the millennials coming in just shows that they like sustainability products right now,” she said. “Before the pandemic, the millennials did not care about investing in houses. They cared about buying cars or even buying their gadgets.”

Aside from the extra savings and flexible payment terms, changing living situations caused by the pandemic have pushed the younger generation to look for property.

When the entire Luzon island was locked down in mid-March to contain infections, Odessa Louise V. Mauricio, 24, went back to her family’s house in Caloocan City and left her condominium unit in Bonifacio Global City.

“It was nice for a few months,” she said in a Messenger chat. “But then it came to a point when it was tiring to be in a house where there’s so much going on.”

She has since gone back to her condo unit. “It’s hard when you have people knocking and the dogs barking,” she said of her family home. “Plus, there’s no sunlight there.”

In April, she closed a deal to buy a yet-to-be-built condominium unit in Pasig City. She said she doesn’t regret her decision, adding that having your own house is ideal if you work from home.

The coronavirus pandemic, which has sickened almost 400,000 and killed more than 7,000 people in the Philippines, is shaping how the younger generation is spending money for the future, Mr. Felix of Phinma Properties said.

“This pandemic gave this generation the realization, ‘Well, there’s only so much community that we can have. We also need a place of our own,’” he said.

He added that the growth of the shared economy in recent years might have seen its limits during this crisis, as people try to distance themselves from potential carriers of the virus.

Property has also become a more viable option for investment because of its expected appreciation over the years, Mr. Felix said.

“One of the things that this generation may have come to realize is that real estate is the safest investment,” he said. “The stock market is volatile. Interest rates are plummeting. Money markets are giving you nothing.”

Colliers advises property developers to continue building projects within integrated communities because buyers will prioritize living spaces with easy access to essential goods and services.

“We encourage developers to highlight the integrated features of their residential projects because this is likely to be among the major considerations of unit owners post-lockdown,” Mr. Bondoc said.

“The pandemic gave me more time to really consider my decision,” Ms. Dizon, mentioned at the outset, said in mixed English and Filipino. “I had planned to buy a house but not this soon.”

Petron swings to profit on retailing margins

PETRON Corp. returned to profitability in the third quarter and posted a P1.63 billion consolidated net income, which the country’s largest oil refining and marketing company said was largely driven by retailing margins.

“With our judicious use of resources, we are determined to expedite our overall recovery, minimize the pandemic’s impact on our business, and deliver more positive results,” Petron President and Chief Executive Ramon S. Ang said in a press release on Tuesday.

Despite what it called a “modest recovery,” the company said its refining segment continued to incur losses due to thin refining margins.

No comparative figure was released for the period, but the listed oil firm reported last year a consolidated third-quarter net income of P1 billion. In the second quarter this year, Petron suffered losses of P9.36 billion.

The company, which also does business in Malaysia, said consolidated retail volume improved by 48.6% for the July-September period versus the second quarter. It said gas stations started operating under normal hours in August with the reopening of the economy.

“While the oil industry continues to face major challenges, we are beginning to see signs of recovery thanks to our government’s decision to gradually and safely restart the economy,” Mr. Ang said.

“Aside from retail, we can also expect the reopening of local tourism to influence higher demand for aviation fuel, which really took a hit because of the pandemic. We’ve also seen some improvements in Malaysia with a notable upturn in our domestic volume to almost pre-pandemic levels,” he added.

For the nine months to September, Petron incurred a net loss of P12.6 billion, reversing its P3.6 billion net income in the same three quarters last year. It recorded a 43% decline in revenues to P216.4 billion from last year’s P381.7 billion.

Consolidated sales volume from the Philippines and Malaysia shrunk by 24% to 59.5 million barrels from last year’s 78.7 million barrels. In the Philippines, volume surged 33% with most Petron stations operating under normal hours since August.

Petron said its year-to-date performance was hit by the “significant” 40% drop in domestic volume and the P13 billion inventory losses during the first four months of the lockdown.

It said global oil prices remained depressed with the benchmark Dubai crude averaging $41.5 per barrel during the past three months. It added “refining cracks” have barely recovered from a low of $2.20 per barrel in September to current levels of around $2.80 per barrel.

Petron’s quarterly report comes a week after Mr. Ang said the refinery would be closing “very soon,” because of a challenging environment and uneven playing field.

“We have several tax-related concerns, which we have already raised with the government. Under the current regime, refiners are faced with the burden of paying so much more taxes than importers making it more difficult for us to preserve the viability of operating a refinery in the country,” he said on Tuesday.

“Of course, we want to keep our refinery running and hopefully with the government’s support, we will be able to do this more efficiently,” he added.

Petron’s refinery in Bataan, the country’s only remaining oil refiner, has resumed normal operations after being on “scheduled turnaround” since May.

On Tuesday, shares in the company slipped by 0.98% to close at P3.04 each. — A. Y. Yang