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Philippines ranks last in cancer preparedness in Asia-Pacific — report

By Patricia B. Mirasol

The Philippines ranks last in cancer preparedness in the region with an overall score of 42.6 out of 100, well below the regional average of 66.5, while Australia (92.4), South Korea (83.4), and Malaysia (80.3) lead the region. This is according to a report by the Economist Intelligence Unit (The EIU) that highlights the rising concern of excess cancer mortality for many Asian countries. Its Index of Cancer Preparedness, published this June, measured the readiness of healthcare systems in 10 countries, namely Australia, China, India, Indonesia, Japan, Malaysia, The Philippines, Thailand, South Korea, and Vietnam. The EIU the research and analysis division of The Economist Group, the sister company to The Economist newspaper.

TRANSLATION OF POLICY INTO DELIVERY
The cancer burden in Asia-Pacific is significant with an estimated 8.8 million new cases in 2018. “While there is clear progress at the planning level, the translation of policy into health service delivery and improved cancer outcomes requires more emphasis,” said Jesse Quigley Jones, editor of the report, during an online media briefing held yesterday, July 8.

The Philippines, for instance, has been recognized for its recent national cancer control act. The country was said to show “evolving commitment to cancer planning”—having had a previous action plan for 2015–2020—as it navigates the challenges of providing cancer care and universal health coverage. Further progress, however, was recommended as the country recorded below-average scores across Policy and Planning, Care Delivery, and Health System and Governance domains. This, in tandem with the country’s high prevalence of smoking, was cause for concern.

CHALLENGES TO IMPROVE COVERAGE
The Index found a strong association between income level and overall cancer preparedness; high-income countries outperform upper- and lower-middle-income countries. It is still only high-income countries that meet the recommended spending by the World Health Organization (WHO) for universal health coverage.

A strong correlation was also seen between the overall score in the said index and cancer control outcomes, demonstrating that better preparedness to manage the cancer burden equates with achieving better cancer outcomes.

Said Mr. Jones: “The Philippines was recognized as the only lower-middle-income country for a comprehensive national cancer control plan with its recent National Integrated Cancer Control Programme. Universal Health Coverage (UHC) programs in Southeast Asia such as the Philippines have shown remarkable progress towards increasing financial protection among the poor and previously uninsured population. However, the country still faces the challenge to improve coverage and the quality of their data. Like other lower-middle-income countries, the Philippines should focus its efforts in closing persistent access gaps and ensuring quality of services across the cancer continuum through better infrastructure and service supply while prioritizing effective policies on tobacco control and healthy lifestyle promotion.”

AN EMPHASIS ON PREVENTION
Cancer was the third-leading cause of death in the Philippines in 2017, with breast, lung, and colorectal cancers indicated as the types with the most incidence in the country according to 2018 data from the International Agency for Research on Cancer, an intergovernmental agency forming part of the WHO of the United Nations. Across Asia, as many as 70% of cancer cases in low- and middle-income countries in Asia are diagnosed at a late stage, hence the need to move from opportunistic to population-based screening and the emphasis on preventive services.

“How do we enact behavior change? That’s localized in each country and their norms,” said Dr. Saunthari Somasundaram, President and Medical Director of the National Cancer Society Malaysia, at the Index of Cancer Preparedness in Asia-Pacific media briefing. “There is a huge amount of late-stage diagnosis in Southeast Asia, with gaps in screening and detection. These (preventive and detection services) have to be accessible to a wide population.”

Apart from boosting prevention and early diagnosis, the priorities listed in the report for addressing cancer preparedness include laying the foundations for a cancer response; focusing on implementation and measuring results; closing gaps in cancer care; and system efficiency and prioritization.

The entire Cancer Preparedness in Asia-Pacific: Progress towards universal cancer control report can be perused here.

Did events like protests and bar reopenings lead to spikes in COVID-19 cases?

Over the past 3 months, millions of people have taken to the streets to protest against racism, while bars and restaurants have reopened around the world, as have some factories, food markets and even outdoor concerts.

Did any of these events contribute to the spike in COVID-19 infections that are now close to 12 million, with the death toll exceeding 540,000?

This is what some experts say:

BLACK LIVES MATTER PROTESTS

Thousands of people took to the streets across the US beginning in late May to join Black Lives Matter protests against police brutality. Protesters also marched to support the movement in cities in Europe and Asia, prompting concerns of surges in new coronavirus cases.

Public health experts say there has yet to be conclusive evidence of large-scale spread from these events. “The protests were outdoors in a very large area,” said Dr. Marybeth Sexton, assistant professor of infectious diseases at Emory University School of Medicine. Ms. Sexton noted “a lot of attempts at masking, distancing, hand-sanitizing” during the protests that also helped prevent transmission.

REOPENING OF BARS

Public health experts have said that bar and restaurant openings in regions including US states like Texas and Florida, Spain and South Korea have contributed to outbreaks of the virus.

Agents from the Texas Alcoholic Beverage Commission check that bars are maintaining social distancing protocols to help slow the spread of the coronavirus disease (COVID-19), in Austin, Texas. Image via Reuters.

“The equation for major prevention of this virus is really pretty simple: it’s masks, and avoid congregating indoors and… staying away from people if you’re sick or if you’ve been in contact with somebody who’s sick,” said Dr. Jared Baeten, Vice Dean of the School of Public Health at University of Washington, who called some of the bar and restaurant openings an “unmitigated disaster.”

Spain has had to impose restrictions on about 70,000 people in the northwestern region of Galicia following an outbreak linked to bars near the port area of A Marina.

South Korea has reported at least 271 cases as of Saturday linked to a handful of nightclubs and bars in Seoul’s Itaewon neighborhood.

On the other hand, thousands gathered in cities across France for the annual June 21 “Fete de la Musique” event just days after it eased strict lockdown measures to take in mostly outdoor concerts in cafes, bars and city squares.

Many participants did not wear protective masks but data shows infection rates remaining stable since late May.

“The fact that most concerts were outside has helped contain the risk,” said Martin Blachier, head of market access and value with Paris-based epidemiological and disease modeling firm Public Health Expertise.

FACTORIES

An outbreak in the city of Leicester, which entered England’s first localized lockdown last week, has been attributed in part to working conditions in garment factories.

Meat-processing plants around the world have also proved to be coronavirus infection hotspots. — Reuters

HR departments must step up during the COVID-19 crisis — HR executive

By Mariel Alison L. Aguinaldo

Human resources (HR) departments are vital when it comes to leading employees through the COVID-19 crisis, according to an HR executive.

“HR leaders must be at the forefront of innovation to reinvent the business. This is the time for collaboration, courage, and, more importantly, action,” said Haidee Enriquez, chief people officer at Sitel Group, during the Asia Future-of-Work Forum held on June 25.

When lockdowns forced the implementation of work-from-home arrangements, concerns about connectivity, productivity, and security were raised by both employees and their supervisors. Other companies had to downsize to cut costs

The HR department is shouldering a heavy part of this burden. “We all have many difficult financial and people decisions to make. Not only are each of us worried about our health and personal safety, we are also worried about revenue, executive and workplace safety, business continuity, and offering sound and ethical policies to employees,” she said.

According to Forbes, HR departments are well suited to deal with these issues because they have the best vantage point of overall processes. They can also “offer a systemic viewpoint, ensuring coordination, communication, and collaboration across units, functions, business groups, and silos.”

Part of this task entails reviewing and realigning HR strategies, initiatives, and processes. Said Ms. Enriquez: “There has to be sharper focus on employee well-being. We need to strengthen career-mapping and succession planning, redesign performance, and productivity models… and then balance short-term gain with longer-term impact.” 

One common concern among employees is burnout. The issue has gained new dimensions because of the lockdown, including a lack of separation between work and life, and continuing uncertainty about job security. To deal with this problem, managers are encouraged to talk candidly with their team in order to determine the best possible arrangement for each member.

Benefits must also be re-evaluated in order to pinpoint new needs that must be addressed during these times. Willis Towers Watson, a multinational risk management, insurance brokerage, and advisory company, published an employee benefits checklist for employers to help identify timely benefit considerations. These include coverage for telemedicine, subsidy or reimbursement for critical office supplies, and leaves for child care and elderly caregiving due to COVID-19.

Inasmuch as regular employees are being reskilled in order to keep up with industry changes, so, too, must HR leaders. Ms. Enriquez recommends adapting the principle of learning agility, which the Center for Creative Leadership defines as showing “willingness and ability to learn throughout their careers, if not their entire lives”.

“For even the most experienced of managers, this crisis is proving to be a steep learning curve as the virus ravages global economies and touches every corner of our personal and professional lives. The majority won’t have encountered anything like it before in our lifetime,” she said.

Cebu Doctors’ University boosts digital learning efforts with Globe myBusiness

As educational institutions across the country are preparing for the opening of classes in August, many are preparing for the implementation of online learning capabilities. Globe myBusiness has partnered with the Cebu Doctors’ University (CDU) to digitally transform learning, so students can attend classes while they stay safe at home.

Globe myBusiness, Globe’s center of excellence in Education, has tapped some of the most recognized Learning Management System (LMS) providers in the world to help institutions transition to digital classes while maintaining social distancing guidelines. Through an LMS, educational institutions can create, administer, and document educational courses online.

“The risk for physical classes is too high so it makes sense for us to use technology to foster learning among our students. Globe myBusiness has proven to be a total business solution provider with their suite of products and services that play a key role in education,” shares Dr. Philip S.D. Larrazabal, President of CDU. “Through our partnership, we hope to recreate the way students learn in the safety of their homes.”

For CDU, Globe myBusiness designed the exclusively-owned CeLO+, also known as the CDU/Continuous Education/Electronic Learning Online and More. It is a custom-made system built from the Brightspace Learning Management System, which enhances teaching success and learning outcomes outside the four walls of a classroom. “We are now using it for full online summer classes starting June 22,2020”, he added.

Brightspace offers an easy-to-use interface that allows educators to design courses, create engaging content using images or videos, and develop quizzes or surveys to measure progress. The system can also track attendance, present the class list, and send updates and announcements to students.

CDU also availed of free, unli Internet connectivity via GoWiFi services that can be used by the faculty when conducting online classes at school; electronic access system through Managed Radio-frequency identification (RFID) that will monitor time and date of entry of skeletal force in the school; telephony system that allows the school to have multiple phone lines embedded in one system, and broadband services from Globe.

Globe myBusiness is positioned to become the education sector’s most reliable and trusted partner for 21st century learning, Apart from Brightspace, the business solutions provider has partnered with Edmodo and Google Education to offer flexible learning options.

Learn more about this story and other solutions for digital learning by Globe myBusiness, via globe.com.ph/business/sme/solutions/learning-management-system.html.

Regional Updates (07/08/20)

Quezon City mayor positive for coronavirus, asymptomatic

QUEZON CITY Mayor Maria Josefina “Joy” G. Belmonte has tested positive for coronavirus, but is asymptomatic and will continue to work while on quarantine. In a statement in Filipino on Wednesday, Ms. Belmonte said she is in good health and not feeling any of the symptoms of the coronavirus disease 2019 (COVID-19). She said her rounds of health centers and hospitals, areas under strict lockdown, and other communities must have exposed her to the virus. “Nangyari po ito sa kabila ng aking ibayong pag-iingat, pagsusuot ng face mask, madalas na paghugas ng kamay, at social distancing. Kaya sana ay magsilbi itong paalala na ang COVID-19 ay tunay na isang kakaibang sakit na dapat pag-ingatan pa nang lubusan (This happened despite taking extra precaution, wearing of face mask, frequent hand washing, and social distancing. That is why I hope this will serve as a reminder that COVID-19 is really an extraordinary disease that we should be cautious of),” she said. Her office and common areas of the city hall have been temporarily closed for disinfection. The city’s Epidemiology and Surveillance Unit is also undertaking contact tracing procedures. As of July 7, the city has recorded 3,869 coronavirus cases, with 1,301 active and 247 deaths.

Police beefs up border patrol operations in central islands to prevent entry undocumented returning residents

MEMBERS of the police elite Special Action Force and members of the Crisis Response Battalion have been deployed in Cebu City to assist in implementing quarantine protocols. — THE FREEMAN/RMARANTAL

BORDER PATROL operations in the Visayas, composed of the country’s central islands, have been intensified to prevent the entry of undocumented returning residents amid the coronavirus outbreak. Lt. Gen. Guillermo T. Eleazar, police deputy chief for operations, has instructed units to strengthen border control measures following reports that there are stranded people who are trying to return to their hometowns without going through protocols intended to mitigate local transmissions of the deadly virus. “We are further intensifying border control operations in these areas because we have been receiving reports that some LSIs (locally stranded individuals) are illegally entering some areas in the region through small boats and even cargo and other vehicles,” Mr. Eleazar said in a statement on Wednesday. The order was specifically given to cops deployed in the regions of Eastern and Western Visayas, and Cebu and Mactan Islands, where the repatriation of stranded individuals has been temporarily suspended to give local governments and health authorities time to decongest and disinfect quarantine facilities. Eastern Visayas, which had one of the lowest number of COVID-19 cases before the LSI repatriations started in end-May, has recorded 600 patients as of July 7, including 486 recoveries. Western Visayas has 395 cases, with 152 recoveries. The Central Visayas, on the other hand, posted 10,854 cases, with 3,642 recoveries, 410 deaths, and 6,802 active cases. Cebu City, the regional center of Central Visayas, accounts for the biggest number of cases at over 7,000, with 3,852 still active. The city is currently under strict quarantine restrictions. — Emmanuel Tupas/PHILSTAR and Marifi S. Jara

Baguio court orders arrest of 3 doctors, 2 cadets in military academy

A BAGUIO City court has ordered the arrest of two cadets and three doctors from the Philippine Military Academy who are linked to the hazing-induced death of Darwin Dormitorio last year. In the warrant issued July 7, Presiding Judge Maria Ligaya V. Itliong-Rivera ordered the arrest of Shalimar G. Imperial, Jr., Felix M. Lumbag, Jr. and doctors Captain Flor Apple A. Apostol, Major Maria Ofelia R. Beloy, and Lt. Col. Ceasar A. Candelaria for the murder of Mr. Dormitorio. No bail was recommended for Messrs. Imperial and Lumbag while a P200,000 bail each was fixed for the doctors. The two cadets and Julius Carlo P. Tadena were also ordered arrested for violating the Anti-Hazing Act. Mr. Dormitorio died on September 18 last year after coming from an emergency sick call. Autopsy conducted by the police medico-legal officer showed that his cause of death was acute peritonitis, or inflammation of the inner wall of the abdomen, “secondary to blunt traumatic injury and abdomen severe.” The Prosecutor’s office said cadets Imperial and Lumbag, the victims upperclassmen, “undoubtedly been the cause of the repeated beatings of Dormitorio” between August 20 and Sept. 17, 2019. The prosecutors also said the doctors failed to give Mr. Dormitorio adequate medical care, which led to his death. — Vann Marlo M. Villegas

Coronavirus infections top 50,000

The Department of Health (DoH) reported 2,539 new coronavirus infections on Wednesday, bringing the total to 50,359.

The death toll rose to 1,314 after five more patients died, while recoveries climbed by 202 to 12,588, it said in a bulletin.

Of the new cases, 1,922 were reported in the past three days, while 617 were reported late. There were 36,457 active cases, DoH said.

The agency reported an increase in the number of cases from closed settings such as the Metro Rail Transit Line 3 (MRT-3), where 202 workers have been infected.

“There is also continuous clustering observed in barangays,” DoH said in the statement.

Health Undersecretary Maria Rosario S. Vergeire on Tuesday traced the surge to increased testing and community transmissions brought about by lax health standards. — Vann Marlo M. Villegas

BSP still has policy space — Diokno

By Luz Wendy T. Noble, Reporter

THE manageable inflation environment continues to afford the central bank with policy space that can be used to respond to the pandemic, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Wednesday.

“The relatively benign inflation outlook in the policy horizon provides space for monetary policy adjustments to complement the National Government’s efforts in mitigating the adverse impact of the public health crisis,” he said at the Pre-SONA (State of the Nation Address) Forum of the Economic Development and Infrastructure Clusters.

Mr. Diokno’s remarks came a day after government data showed quicker-than-expected 2.5% headline inflation in June. The June print was slower than the 2.7% in June 2019 but faster than the 2.1% in May, largely driven by the uptick in fuel, food, and transport prices.

Kung tutuusin (If you think about it) that’s still lower than the midpoint, our target is 2-4%. Nasanay kasi tayo sa mga mababa 2.1% (We were just used to very low inflation),” he said in a virtual press conference after the forum.

“But it’s still consistent with our forecast that inflation will be benign for the next three years, so wala tayong dapat ikabahala sa inflation (so there’s nothing to worry about inflation),” the BSP chief added.

In June, the central bank slashed key policy rates by 50 basis points (bps) on its fourth easing this year, trimming the overnight reverse repurchase, lending, and deposit rates to 2.25%, 2.75%, and 1.75%, respectively.

The central bank has likewise slashed the reserve requirement ratio (RRR) of big banks by 200 bps in April to 12%, while it kept reserve requirement for thrift and rural banks at four and three percent, respectively. The Monetary Board is authorized to reduce RRR by up to 400 bps this year to boost liquidity amid the crisis.

The central bank has also forged a P300-billion repurchase agreement with the Bureau of the Treasury, and repurchased government securities in the secondary market as part of efforts to support the government’s coronavirus response.

“The estimated BSP liquidity injection to the financial system is about P1.3 trillion, equivalent to 6.4% of the country’s GDP (gross domestic product),” Mr. Diokno said.

Meanwhile, analysts said another round of easing will be less beneficial to the economy, given that real interest rates are now in negative territory after the uptick in inflation.

In a research note sent to reporters on Wednesday, the Philippine National Bank (PNB) said the country’s real policy rate is now down to -0.25% as overnight reverse repurchase stood at 2.25%. This would even fall to -0.75% if the basis is the 1.75% deposit rate, it added.

“This is the lowest compared with other ASEAN countries we follow, such as Malaysia (+4.90%), Thailand (+3.94%), Indonesia (+2.29%), and Vietnam (+1.33%),” the PNB report said.

“Given this relatively aggressive monetary accommodation, we believe that the Monetary Board of the BSP may have a more challenging task of balancing supporting economic growth amid COVID-19 but still promoting price stability,” it added.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said the prospects of higher inflation in the next months could prevent the BSP from further easing as benefits from more rate cuts “may be marginal already.”

“Businesses will most likely control their capital expenditures despite the low interest rate environment given the risks and uncertainties in the country. Meanwhile, banks are likely to remain risk averse given the risk of massive corporate revenue losses,” Mr. Neri said in a note sent to reporters on Wednesday.

Mr. Neri said substantial stimulus from the government to offset losses from the private sector as well as improvement in the health crisis will be most needed by the economy at this point.

Duterte remains wary of totally reopening economy

PRESIDENT Rodrigo R. Duterte said he is not keen on fully reopening the economy at this time, as the number of coronavirus disease 2019 (COVID-19) infections continues to rise.

But Finance Secretary Carlos G. Dominguez III emphasized the need to further ease restrictions, saying there should be a “reasonable balance between safeguarding public health and restarting the economy.”

In a televised address aired early Wednesday, Mr. Duterte said the Philippines has to reopen its economy gradually, unlike the United States and Brazil that have seen a spike in COVID-19 cases after easing lockdown restrictions.

“So we have to be very circumspect in reopening the economy. Dahan-dahan lang (It has to be gradual). And if ever there is going to be a spike again, baka marami ang infected or re-infected, at least ’yung calibrated numbers of people we allowed to go out would be still within manageable numbers,” Mr. Duterte said in a televised address aired early Wednesday.

Metro Manila remains under a general community quarantine, although most businesses have been allowed to resume operations on a limited capacity.

Tayong pobre (We are poor), we cannot afford a total epidemic or pandemonium. Mahirap tayo, hindi tayo puede sumugal (We are poor, we cannot gamble). We cannot follow the example of other countries because… although they opened the economy for the money to come into the government coffers. There was a problem of relapse,” Mr. Duterte said.

Despite the Health department reporting a rising number of COVID-19 infections after lockdown measures were relaxed, Mr. Duterte believes the country is still grappling with the first wave of the coronavirus pandemic.

On Tuesday, the number of coronavirus cases rose by 1,540 to 47,873.

In an economic forum on Wednesday, Mr. Dominguez said health measures are necessary in the battle against COVID-19, but “increasing economic activity in a responsible manner is a matter of national survival and priority.”

“While the people’s health and safety remain a priority, we cannot keep on retreating from the virus at the cost of our livelihoods. Metro Manila and Calabarzon account for 67% of the country’s economy. It is vital that these regions reopen. The reality is that this virus will not go away until a vaccine is found. In the meantime, we must get back to work while staying safe,” he said at the Pre-SONA (State of the Nation Address) Forum of the Economic Development and Infrastructure Clusters on Wednesday.

The Finance chief noted there is no need to choose between health and livelihood, saying: “We must protect lives in ways that do not prevent us from earning a living.”

For Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua, reopening the economy will depend on the strength of the healthcare system and the practice of safety measures.

“A lot of the outcomes in the economy and their lives actually rest on their own decisions to take care of themselves to abide by the minimum health standards and maintain social distancing,” Mr. Chua said in the same briefing.

Boosting the capacity to test, trace, isolate and treat COVID-19 cases as well as bringing back the public transport system will instill confidence in the country’s ability to reopen and increase prospects for recovery, he said.

Citing latest trade and manufacturing data, Mr. Chua said these are some signs the economy is slowly starting to recover in the second half as restrictions are relaxed.

“All of these are being factored and we’re also seeing a significant part of the economy actually loosening up from the quarantine, so these are I think are important elements to suggest that the economy is starting to recover,” he said.

MORE BORROWINGS
Meanwhile, Mr. Dominguez expects the country’s debt-to-GDP ratio to rise to 50% from 39% last year, as it increases borrowing to mitigate the economic impact of the new coronavirus pandemic.

With revenues in the first half down 16% from last year as virus curbs shuttered businesses, Mr. Dominguez said the government is looking to borrow more to finance the budget and programs to help revive the economy.

“We are planning to borrow up to 50% of GDP, up from 39% at the end of 2019,” he said. “We have the capacity to borrow…and we have the capacity to pay these loans in the future.”

The government is seeking a record P4.3-trillion ($86.83-billion) budget for 2021 focused on reviving an economy that is expected to shrink for the first time in two decades this year and for containing the spread of the coronavirus.

“Our economy has slowed down during the COVID crisis. We have not been able to collect taxes as we had planned, and we have been spending a lot of money on our COVID response,” Mr. Dominguez said.

The Southeast Asian country, which used to enjoy one of the world’s fastest growth rates before the pandemic, is projected to suffer a 2% to 3.4% decline in gross domestic product this year, before returning to growth in 2021. — Gillian M. Cortez, Beatrice M. Laforga and Reuters

Virus adds to banana growers’ woes from global warming

By Jenina P. Ibañez, Reporter

SMALL FARMERS in the southern Philippine island of Mindanao skipped meals during prolonged droughts and typhoons as crop yields fell. Some of them were forced to sell their pigs, goats and cows, while others had to borrow money while cutting down on food on the table.

Many of them got mired in debt after warmer temperatures killed their crops, according to a 2017 study in the Journal of Rural Studies. Banana producers lost income after rain and drought caused an outbreak, it said.

BW Bullseye 2020-focusNow, a global coronavirus pandemic has made it even more difficult for them, especially the country’s banana growers, as demand from China — its top buyer of the fruit — wanes.

Local companies may be shuttered due to reduced demand from China, where the virus first emerged, because of the COVID-19 pandemic, Gladys M. Garcia, executive director of the Mindanao Banana Farmers and Exporters Association said by telephone.

“China is our top banana destination,” she said in Filipino. “Local exporters won’t do well if the Chinese economy is not doing good.”

Fresh banana exports fell by 6.4% to $618.57 million in the first four months of the year from a year earlier. In April alone, banana exports dropped by 28% to $129 million.

The value of banana exports accounted for 66% of the total value of fruit and vegetable exports that month, or 4.65% of total Philippine commodity exports.

Even before the pandemic, local banana farmers have had to contend with global warming and the Panama disease or Fusarium wilt spreading across farms in the Davao Region.

In the long term, climate could affect the industry’s recovery.

The value of Philippine banana exports rose by 39.7% to $1.9 billion last year from a year earlier, accounting for 70% of fruit and vegetable exports and 39% of total agriculture exports, according to the Philippine Statistics Authority. But volume fell by 2.1% to 9.16 million metric tons.

Typhoon Bopha (locally named Pablo) in 2012 wiped out banana plantations in Davao and knocked the Philippines off its spot as the second-biggest banana exporter in the world, said Dennis S. Sia, chief executive officer of banana exporter Technofarm Agricultural & Aquatic, Inc.

WARMER CLIMATE
Global banana yields could fall by 2050 if the global warming trend persists, according to Newsweek, citing a study published in the journal Nature Climate Change in September. The impact will be most pronounced in 10 countries, including major exporters such as Panama, Guatemala, Costa Rica and the Philippines.

Bananas could wilt if the temperature rises to more than 38°C, Domingo E. Angeles, a professor at the University of the Philippines Los Baños Institute of Crop Science, said in an e-mail.

“When the plant wilts, the leaf area decreases and eventually photosynthesis decreases,” he said. “These lead to stunted growth, delay in flowering and lower yield.”

The average temperature in tropical, banana-growing areas is 27°C, and bananas, which develop at 21°C to 31°C, can survive minor temperature increases. But once it exceeds 40°C, the plant can die.

The annual mean temperature in the Philippines would probably rise by as much as 1.1°C during the decade, and by as much as 2.2°C by the middle of the century, according to the local weather bureau.

Erratic rainfall could also mean dry spells that cause wilting or morning rain that prevents growers from spraying crops against diseases, Mr. Angeles said.

Bananas also hate strong winds. “Due to climate change, typhoons similar to the strength of Pablo may cross Mindanao and adversely affect production,” he said.

Scientists have turned to genetic modification, which can selectively enhance or suppress certain characteristics of bananas. The aim is to protect bananas from the Panama disease, and scientists are working on creating bananas that can tolerate drought.

Maria Emilia Rita G. Fabregar, who heads a technical committee of the Pilipino Banana Growers and Exporters Association, Inc. said a drought-induced insect infestation last year cut the country’s banana export volume, and the rain that came after caused wilting from fungi.

The group has been manually selecting good bananas from the field, said Ms. Fabregar, who is also research and development head at Lapanday Foods Corp.

STATE SUPPORT
“Genetic modification is a no-no because our markets abhor it,” she said in an e-mail, noting that it’s still viewed suspiciously even if potential health and environmental risks are controversial.

Mr. Sia said the government must work with the industry to identify new areas to grow the crop and provide a better irrigation system. Banana output could drop by as much as 15% in the next decade if nothing is done, he added.

Ms. Fabregar said the government should build more irrigation canals, and the private sector should adopt “climate-smart” strategies in their irrigation system and cropping patterns.

Former Agriculture Undersecretary Segfredo S. Serrano said the government must invest in research to improve the crop. Unlike big companies that can easily shift to a different crop or industry, small banana farmers can’t when global warming cuts their output, he said in an interview.

“The smaller ones will be obliterated because they can’t improve their crops,” he said. “They don’t have the resources or the expertise.”

Before the coronavirus pandemic, China was a lucrative market for Philippine bananas. Companies were also interrelated, with smaller ones supplying big exporters.

Mr. Serrano said the country had bounced back as a top global exporter, but the industry now faces typhoons, diseases and pests. “It could take years to recover — that’s the top industry worry.”

The impact of climate is more than financial. The cultural knowledge that farmers had passed on for generations may be lost after the planting cycle is disrupted.

“Long-term creeping losses such as malnutrition, disruption to education and loss of culture can have lasting impacts on the welfare of smallholder communities,” according to the study in the Journal of Rural Studies.

“Eroding cultural knowledge and practices associated with harvesting and planting cycles are significant and comparable losses to physical and economic losses that can undermine or reduce capacity to adapt to future disasters,” it added.

Politicized media shutdown to drive away investors, says Fitch Solutions

By Arjay L Balinbin, Reporter

THE “politicization” of the country’s telecommunications sector that led to the forced shutdown of the services of ABS-CBN Corp. and its affiliate Sky Cable Corp. will further dampen investor sentiment, Fitch Solutions Country Risk & Industry Research said.

“The forceful termination of ABS-CBN and Sky’s broadcasts are highly politicized, and clearly linked to President Rodrigo R. Duterte’s opposition toward ABS-CBN,” Fitch Solutions said in a commentary e-mailed to reporters on Wednesday.

It said the politicization of the media giant and its unit adds to the factors that discourage investment in the country’s telecoms sector.

Fitch Solutions described the Philippines’ existing telecommunications regulations as “fluid and inefficient.”

“Given the politicization of media services and the challenging outlook of the Philippines’ telecoms sector, we have revised downward the country’s telecoms Industry risk score, which now stands at 46.1 points out of a possible 100, down from 57.5 in our previous quarter’s update,” the London-based think tank said.

The National Telecommunications Commission (NTC) issued on June 30 a cease-and-desist order against the direct broadcast satellite service of Sky Cable whose legislative franchise had expired on May 4. It demanded Sky Cable to refund unconsumed prepaid loads, deposits on subscriber equipment, and charges from new applicants, as well as advance payments.

On the same day, the regulator issued a separate cease-and-desist order against ABS-CBN, directing it to immediately stop digital television transmission through its TV Plus programs in Metro Manila using Channel 43, which is under a separate entity with a valid franchise. Consequently, ABS-CBN decided to stop airing its programs via TV Plus in all areas nationwide.

The NTC issued the orders after lawmakers questioned the continuing operations of ABS-CBN whose legislative franchise had also expired on May 4.

“The regulator’s apparent ability to be influenced by the government continues to be a key impediment to foreign investor sentiment, and has also made the telecoms landscape difficult for both new entrants and existing players,” Fitch Solutions said.

It also cited as an example the long-delayed issuance of the tower sharing policy, which highlighted “the slow pace of instituting reforms, and has partially contributed to the delay of new telecoms entrant, Dito Telecommunity, in rolling out its commercial services.”

Mr. Duterte had been vocal about his criticisms against ABS-CBN for not airing his ad during the presidential campaign in 2016. In a speech in December, he said: “I’ll see to it that you’re out.”

Early this year, he had a change of heart when he accepted ABS-CBN’s apology and told the company to donate to charity the refund money for the unaired ad.

On Tuesday, Presidential Spokesman Harry L. Roque, Jr. said Mr. Duterte is “neutral” about the recent issues raised against ABS-CBN during the hearings on its franchise renewal at the House of Representatives.

Various issues against ABS-CBN were scrutinized by House lawmakers in recent hearings: from its tax payment to the shows aired by the Lopez-led network. The lawmakers are set to finish their hearings on the company this week.

ABS-CBN’S O SHOPPING TO SHUT DOWN
Also on Wednesday, the ABS-CBN announced that ACJ O Shopping Corp., which is a joint venture with South Korean media company CJ ENM Co. Ltd., will stop operations towards the end of the year.

“The past two years have been challenging for the company as it experienced financial losses. The COVID-19 (coronavirus disease 2019) outbreak has and will continue to take a toll on the business this year. ABS-CBN’s partner, CJ ENM, has also decided to move its business out of Southeast Asia completely,” it said in a statement.

“As a result, ACJ O has made the difficult decision to let go of its employees starting 7 August 2020,” it added.

ABS-CBN said further that it will make further announcements regarding the selling of its goods on-air and online. “ACJ will continue to serve its customers as best it can despite the reduction in manpower in the next few months.”

SEC looking to allow corporate debt funds as crisis response

By Denise A. Valdez, Reporter

THE Securities and Exchange Commission (SEC) is seeking to launch corporate debt funds (CDF) that will invest in debt papers of large corporations and medium-sized enterprises.

The regulator released a draft memorandum circular on Wednesday proposing to introduce the new investment vehicle as a means to cope with the coronavirus disease 2019 (COVID-19) pandemic.

Through CDFs, the SEC said it hopes the mutual fund industry may help avert credit and liquidity crises emerging from the dampened economy.

The proposed guidelines classifies a CDF as a closed-end investment company that offers shares to invest in portfolios of corporate debt papers. An investment company may register as a CDF by completing an application with the SEC.

Subscription to a CDF must be done only on initial public offering and redemption at maturity. A CDF may offer several shares or unit classes managed as separate asset pools but with the same investment objectives.

Unlike in public listings, a CDF is not required to be listed or traded in an exchange. The underlying corporate debt portfolio will follow a hold-to-collect business model, meaning investments are held to the maturity.

CDF shares or units may be issued in tranches once the SEC approves the securities, with the first tranche issued within six months from the date of the approval. The securities must be sold on a cash basis and only by a registered mutual fund distributor and certified investment solicitor.

Proceeds from the issuance of CDF securities must be invested in corporate debts of large corporations and medium-sized enterprises. But pending deployment of CDF according to its investment objectives, it can invest in deposits and money market instruments.

The proposed rules limit the value of a CDF’s investments in corporate debt. If it is issued by a single enterprise, it should not exceed 25% of the funds net asset value and 50% in single group entities. This will be computed based on total proceeds of securities sold within the initial offering period.

Total operating expenses of a CDF is also limited to 10% of its average investment fund or net worth as indicated in its latest audited financial statement.

The draft memorandum circular is accessible through the SEC website. The corporate regulator is accepting comments from stakeholders until July 17 through snail mail and e-mail.

Animation studio’s productivity drops 28% during lockdown

By Jenina P. Ibañez, Reporter

ANIMATION studio Toon City saw an estimated 28% drop in productivity during the quarantine while some artists working from home deal with unstable Internet connection.

Animation Council of the Philippines Inc. (ACPI) President and Toon City Chief Executive Officer Juan Miguel del Rosario in a webinar organized by the Trade department on Wednesday said that the industry saw production delays due to longer upload times and disrupted feedback methods.

The Philippines is an outsourcing hub for animation studios based in the United States.

Citing examples, Mr. Del Rosario said a particular employee saw 12% more output during the quarantine, but another saw a 53% decline due to a lack of stable broadband and equipment in his home.

The data are based on the average weekly output of the top 20 employees, not the entire workforce. Their output puts productivity at 72% during the lockdown, compared with those in January and February 2020.

“Essentially, the reason behind this is work-from-home is still not yet an ideal place as far as we’re concerned,” Mr. Del Rosario said.

“Workplace methods and routines of artists and directors [undergo] rapid change. This is very difficult because before, you can just go to an artist and say ‘pare, nagawa mo na ba ‘yan? (pal, have you done that?)’ Now you have to text or you have to e-mail or you have to wait for the response, so that delay is affecting turnaround time.”

He said that the upload of “enormous” files sometimes takes days.

Mr. Del Rosario in a separate e-mail said most local and foreign studios are at about 70% work-from-home operations.

“The Philippines cannot be competitive with weak internet infrastructure. With those kinds of lagging we cannot afford to host webinars for the global audience. The pandemic has accelerated the need to be digitally and online savvy.”

Mr. Del Rosario explained that the 72% productivity mirrors that of the overall outsourcing industry and is similar to that of the animation industry in other countries during the pandemic.

The company’s output payroll fell significantly in April before seeing slight recovery the next month. Output payroll, which was above P1.7 million on March 20 fell below P380,000 by April 3. This consistently grew again, reaching P1.14 million by June 19.

Looking at opportunities during the lockdown, Mr. Del Rosario said that many animated series continue to be in production under work-from-home operations, including those from Warner Brothers Animation.

He added that marketing companies that previously relied on live-action filming are now open to trying animation. Drama shows, he said, will likely postpone shooting scenes that involve crowds, action sequences, or international travel — increasing animation demand.