Brazil clears emergency use of Sinovac, AstraZeneca vaccines, shots begin

January 18, 2021 | 2:39 pm

Jair Bolsonaro’s government aims to kick off a national immunization program this week but is waiting on shipments of the AstraZeneca vaccine at the center of its plans. That has added to public frustration and offered a political rival the chance to upstage the right-wing president. Image via REUTERS/DADO RUVIC/FILE PHOTO

BRASILIA/RIO DE JANEIRO — Brazilian health regulator Anvisa on Sunday approved emergency use of coronavirus disease 2019 (COVID-19) vaccines from China’s Sinovac Biotech Ltd. and Britain’s AstraZeneca, clearing the way for immunizations as the pandemic enters a deadly second wave.

Minutes after Anvisa’s board voted unanimously to approve both vaccines, Monica Calazans, a 54-year-old nurse in Sao Paulo, became the first person to be inoculated in the country, receiving the Chinese vaccine known as CoronaVac.

President Jair Bolsonaro, a coronavirus skeptic who has refused to take a vaccine himself, is under growing pressure to start inoculations in Brazil, which has lost more than 200,000 to COVID-19—the worst death toll outside the United States.

Delays with vaccine shipments and testing results have held up vaccinations in the country, once a global leader in mass immunizations and now a regional laggard after countries such as Chile and Mexico started giving shots last month.

Mr. Bolsonaro’s government aims to kick off a national immunization program this week but is waiting on shipments of the AstraZeneca vaccine at the center of its plans. That has added to public frustration and offered a political rival the chance to upstage the right-wing president.

Sao Paulo Governor Joao Doria, who oversees the Butantan biomedical center that is partnered with Sinovac in Brazil, said Anvisa’s decision was a triumph for science as he gave the go-ahead for the first vaccination in his state.

“A victory for science. A victory for life. A victory for Brazil,” Mr. Doria tweeted.

Mr. Bolsonaro, for whom Mr. Doria is a potential center-right rival to his 2022 re-election efforts, has taunted the governor over CoronaVac’s disappointing 50% efficacy in Brazilian trials. But the federal Health Ministry has agreed to acquire and distribute the shot for the national immunization drive.

Health Minister Eduardo Pazuello told a news conference that the rush to start vaccinating immediately was an illegal “marketing ploy” and the government would start distributing the vaccines to states on Monday, with the nationwide immunization plan beginning on Wednesday.

Brazil could eventually vaccinate 1 million people a day, he said.

Adding to the urgency for vaccinations, a second wave of the outbreak in Brazil is snowballing as the country confronts a new, potentially more contagious variant of the coronavirus that originated in Amazonas state and prompted Britain and Italy to bar entry to Brazilians.

Butantan, which is set up to fill and finish CoronaVac doses on its production line, plans to supply 46 million doses of the two-dose shot by April, the institute said in a statement. Some 6 million of those are ready to go.

The federally funded Fiocruz institute is still waiting for a delayed shipment of the active ingredient in the AstraZeneca vaccine for finishing on a Rio de Janeiro assembly line.

The Health Ministry has scrambled to line up 2 million ready doses of the AstraZeneca vaccine from India, but officials there have suggested it may take weeks to approve exports. Mr. Pazuello said on Sunday he expected the doses from India this week. — Jamie McGeever and Pedro Fonseca/Reuters

How to stay safe with a new fast-spreading coronavirus variant on the loose

January 18, 2021 | 1:54 pm

A fast-spreading variant of the coronavirus that causes COVID-19 has been found in at least 10 states in America, and people are wondering: How do I protect myself now?

We saw what the new variant, known as B.1.1.7, can do as it spread quickly through southeastern England in December, causing case numbers to spike and triggering stricter lockdown measures.

The new variant has been estimated to be 50% more easily transmitted than common variants, though it appears to affect people’s health in the same way. The increased transmissibility is believed to arise from a change in the virus’s spike protein that can allow the virus to more easily enter cells. These and other studies on the new variant were released before peer review to share their findings quickly.

Additionally, there is some evidence that patients infected with the new B.1.1.7 variant may have a higher viral load. That means they may expel more virus-containing particles when they breathe, talk, or sneeze.

As professors who study fluid dynamics and aerosols, we investigate how airborne particles carrying viruses spread. There is still a lot that scientists and doctors don’t know about the coronavirus and its mutations, but there are some clear strategies people can use to protect themselves.

The SARS-CoV-2 variants are believed to spread primarily through the air rather than on surfaces.

When someone with the coronavirus in their respiratory tract coughs, talks, sings, or even just breathes, infectious respiratory droplets can be expelled into the air. These droplets are tiny, predominantly in the range of 1-100 micrometers. For comparison, a human hair is about 70 micrometers in diameter.

The larger droplets fall to the ground quickly, rarely traveling farther than 6 feet from the source. The bigger problem for disease transmission is the tiniest droplets—those less than 10 micrometers in diameter—which can remain suspended in the air as aerosols for hours at a time.

With people possibly having more virus in their bodies and the virus being more infectious, everyone should take extra care and precautions. Wearing face masks and social distancing are essential.

Spaces and activities that were previously deemed “safe,” such as some indoor work environments, may present an elevated infection risk as the variant spreads.

The concentration of aerosol particles is usually highest right next to the individual emitting the particles and decreases with distance from the source. However, in indoor environments, aerosol concentration levels can quickly build up, similar to how cigarette smoke accumulates within enclosed spaces. This is particularly problematic in spaces that have poor ventilation.

With the new variant, aerosol concentration levels that might not have previously posed a risk could now lead to infection.

1. Pay attention to the type of face mask you use, and how it fits.

Most off-the-shelf face coverings are not 100% effective at preventing droplet emission. With the new variant spreading more easily and likely infectious at lower concentrations, it’s important to select coverings with materials that are most effective at stopping droplet spread.

When available, N95 and surgical masks consistently perform the best. Otherwise, face coverings that use multiple layers of material are preferable. Ideally, the material should be a tight weave. High thread count cotton sheets are an example. Proper fit is also crucial, as gaps around the nose and mouth can decrease the effectiveness by 50%.

2. Follow social distancing guidelines.

While the current social distancing guidelines are not perfect—six feet isn’t always enough—they do offer a useful starting point. Because aerosol concentration levels and infectivity are highest in the space immediately surrounding anyone with the virus, increasing physical distancing can help reduce risk. Remember that people are infectious before they start showing symptoms, and they may never show symptoms, so don’t count on seeing signs of illness.

3. Think carefully about the environment when entering an enclosed area—consider ventilation and how people interact.

Limiting the size of gatherings helps reduce the potential for exposure. Controlling indoor environments in other ways can also be a highly effective strategy for reducing risk. This includes increasing ventilation rates to bring in fresh air and filtering existing air to dilute aerosol concentrations.

On a personal level, it is helpful to pay attention to the types of interactions that are taking place. For example, many individuals shouting can create a higher risk than one individual speaking. In all cases, it’s important to minimize the amount of time spent indoors with others.

The Centers for Disease Control and Prevention has warned that B.1.1.7 could become the dominant SARS-CoV-2 variant in the US by March. Other fast-spreading variants have also been found in Brazil and South Africa. Increased vigilance and complying with health guidelines should continue to be of highest priority. — Suresh Dhaniyala and Byron Erath/The Conversation

Suresh Dhaniyala is the Bayard D. Clarkson Distinguished Professor of Mechanical and Aeronautical Engineering at Clarkson University, New York.

Byron Erath is an associate professor of Mechanical Engineering at Clarkson University, New York.

Trump slams China’s Huawei, halting shipments from Intel, others — sources

January 18, 2021 | 1:26 pm

NEW YORK/WASHINGTON — The Trump administration notified several Huawei suppliers, including chipmaker Intel, that it is revoking certain licenses to sell to the Chinese company and intends to reject dozens of other applications to supply the telecommunications firm, people familiar with the matter told Reuters.

The action against Huawei Technologies—likely the last against the company under Republican President Donald J. Trump’s administration—is the latest in a long-running effort to weaken the world’s largest telecommunications equipment maker, which it says is a threat to US national security and foreign policy interests.

The notices came amid a flurry of US actions against China in the final days of the Trump administration. Democrat Joseph R. Biden, Jr., will take the oath of office as president on Wednesday.

An Intel Corp. spokesman had no immediate comment, and a Commerce Department spokesman did not immediately return requests for comment.

In an e-mail seen by Reuters documenting the actions, the Semiconductor Industry Association said on Friday the Commerce Department had issued “intents to deny a significant number of license requests for exports to Huawei and a revocation of at least one previously issued license.” Sources familiar with the situation, who spoke on condition of anonymity, said there was more than one revocation.

The e-mail said the actions spanned a “broad range” of products in the semiconductor industry and asked companies whether they had received notices.

The e-mail noted that companies had been waiting “many months” for licensing decisions and with less than a week left in the administration, dealing with it was a challenge.

A spokesman for the semiconductor group did not immediately respond to a request for comment.

The United States put Huawei on a Commerce Department “entity list” in May 2019, citing national security concerns, restricting suppliers from selling US goods and technology to the company.

But some sales were allowed and others were denied while the United States ratcheted up the restrictions against the company, including expanding US authority to require licenses for sales of semiconductors made abroad with American technology.

Before the latest action, some 150 licenses were pending for $120 billion worth of goods and technology, a person familiar with the matter said, which had been held up because various US agencies could not agree on whether they should be granted. — Karen Freifeld and Alexandra Alper/Reuters

Philippine Banks’ Pandemic Rebound Quicker Than Asian Crisis Era

January 18, 2021 | 11:58 am

BLOOMBERG — Philippine banks will recover faster from the impact of the coronavirus pandemic than they did from the Asian financial crisis due to record-low interest rates, higher capital and a stable economy, the head of the nation’s bankers group said.

Lenders in the Southeast Asian nation may bounce back in three to four years, about half the time it took after the 1997 crisis as banks aggressively provision for probable losses, said Cezar Consing, president of the Bankers Association of the Philippines. “This crisis might be more impactful on the economy, but the banking system at the same time is better able to handle some of the stresses,” he said in an online interview.

The nation’s bad loan ratio may peak at 6%-7% this year, Consing said, compared with about 4% in 2020, and far lower than the 20% levels seen during the Asian crisis. This would mean banks hold about 744 billion pesos ($15.5 billion) in bad debt out of a total of 10.63 trillion pesos of loans at the end of November.

Consing, who is serving his final three months as president of Bank of the Philippine Islands before retiring, recalled that it took lenders about six to seven years to recover pre-crisis profits after the 1997 crisis.

The Bangko Sentral ng Pilipinas, like other central banks globally, has eased monetary policy and brought in other relief measures to limit the fallout of the pandemic. It cut reserve requirements for banks to encourage lending and help shore up cash in the financial system.

The economy is expected to grow by 6.5%-7.5% this year, after a projected contraction of as much as 9.5% in 2020, according to latest government estimates.

Other Highlights:

Provisions for loan losses will remain elevated in 2021, but not as high as last year when they reached record levels
Banks can tolerate negative interest rates for up to a year. “If you have negative interest rates for long periods of time you’re creating bubbles, you’re creating problems, you’re mis-allocating resources.”
While interest rates have fallen, other costs like regulatory, technology and cyber-security expenses have increased
Philippine growth is very credit intensive, with a ratio of 1.50 pesos of new loans for every 1 peso of new economic output. “The fact that loan growth is flat at a time when GDP is going down, to me, is already something good.”
A challenge for Philippine banks is how to become bigger and remain relevant to support the nation’s growth agenda. Banks now account for 12%-13% of the stock exchange compared with 15% a decade ago

— With assistance from Cecilia Yap, Clarissa Batino, Ian Sayson, Andreo Calonzo and Siegfrid Alegado

[B-SIDE Podcast] How female founders can get the funding they need

January 18, 2021 | 11:01 am

Only 3% of invested dollars went to female-only founders in 2019. According to a Crunchbase report on gender disparity in startup funding, female-only founded companies raised $6 billion dollars; their male counterparts, $195 billion.

In this episode of B-Side, Nicole Denholder, founder and CEO of Next Chapter Raise, tells BusinessWorld reporter Patricia B. Mirasol why this gap exists and what women entrepreneurs—and the business community at large—can do about it.

Next Chapter Raise is a funding ecosystem based in Asia with one mission: to get female founders funded faster.

TAKEAWAYS

Female founders face a steep uphill battle.

Key-person risk

“Many female founders are sole founders. If they fall ill, the business could stop,” said Ms. Denholder. “A sole founder won’t have all the skills necessary anyway to build a business.”

Industry bias

Women are expected to work in stereotypical industries such as fashion and wellness, less so in fields such as technology and engineering. “The expectation is that women aren’t that engaged and working in those industries so how do they have that industry knowledge? Or how do they understand what the problem is? Or how do they understand the client?” Ms. Denholder said.

Lesser capital

Men start their business with twice as much financial capital as women. Women, on the other hand, bootstrap for two to three years on average, Ms. Denholder said.

Find a co-founder that complements what you bring to the table.

Ms. Denholder advised looking at the way the team is built and what the business needs, especially if you happen to be a sole founder.

“Make sure you have the right agreements in place, and clarity in roles and responsibilities. Regardless of gender, you need to understand what both of you bring to the table,” she said. “Over time, you need to make sure you’re continually aligned to be delivering on the business.”

Even if asked the wrong questions, reply with the right answers.

Investors, too, demonstrate unconscious bias in how they assess founders. A 2018 study by Dana Kanze, Laura Huang, Mark A. Conley, and E. Tory Higgins discovered that men are asked “promotion” questions, or questions about how great everything will be. Women, meanwhile, are asked “prevention” questions, or questions about how horrible everything will be.

Examples of prevention-based questions are: “How long will it take you to break even?;” “How predictable are your future cash flows?;” and “Is it a defensible business wherein other people can’t come into the space to take share?” Examples of promotion-based questions include: “How do you plan to monetize this?;” “What major milestones are you targeting for this year?;” and “What’s the brand vision?”

Those asked promotion questions were more likely to answer in promotion-based ways, which left a positive taste in an investor’s mouth. The result from the study showed that male-led startups ended up receiving five times more funding, with promotion-based Q&As receiving $16.8 million in funding, as compared to the $2.3 million raised from prevention-based Q&As.

Female founders can counter this unconscious bias by being aware of the language they use in their responses. Answering in a promotion-based manner is preferable to answering in a prevention-based way. The former tend to include words such as “growth,” “acquire,” “plans,” “targets,” “milestones,” and “vision.”

The best funding type will depend on where you are in your business journey.

Funding a business is not one-size-fits-all. Female founders need to determine what stage the business is, what the goals are, and what the funds are needed for—whether it be working capital or investment growth.

Those in the idea or pre-seed funding round, or the stage where startups are trying to get their idea off the ground, might seek the assistance of friends and family. Angel investors, meanwhile, may be tapped for those in the seed funding round, or the phase where the founders are perfecting their product or service.

Ms. Denholder advised looking at accelerators and rewards-based crowdfunding in the idea stage, and then moving on to venture capital for the later stages.

“Look too at competitions and grants programs. Often, you don’t just get money but also a bit of media. You might get mentoring. Those can really help legitimize or boost your business,” she said. “Think about it in the longer term. Plan out your funding journey alongside your business plan. If you’ve set goals and you have plans to achieve them, analyze: what money do I need to get there?”

Tapping a supportive network will help leverage resources and open doors.

“At Next Chapter Raise, we built the business around three aspects: community, knowledge, and access to the investment community,” said Ms. Denholder. “We’re trying to make female founders feel they can be an equal at the table and navigate the discussions around funding.”

She added: “There’s not a lot of female role models out there. It’s really great to be able to connect women.”

This B-Side episode was recorded remotely on Dec. 16, 2021. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Pag-IBIG Fund members save record-high P13.3B in MP2 amid pandemic, up 11% in 2020

January 18, 2021 | 9:24 am

Despite the uncertainties caused by Covid-19 last year, Pag-IBIG Fund members turned to the agency’s MP2 Savings and collectively saved over P13 billion, setting a new record for the amount saved voluntarily by members under the program in a single year.

“We are happy to report that despite the impact of the pandemic to our economy last year, the amount saved by our members in the Pag-IBIG MP2 Savings last year surpassed P13 billion. This is the highest-ever amount saved by our members in the program so far. This shows the significant trust that our members have in Pag-IBIG Fund, that we shall manage their hard-earned peso prudently. This will also go a long way in helping us serve more members by providing funds for their home loans and cash loans, all in line with President Rodrigo Roa Duterte’s directive to help uplift the lives of more Filipinos especially during these difficult times,” said Secretary Eduardo D. del Rosario, Chairperson of the Department of Human Settlements and Urban Development and the 11-member Pag-IBIG Fund Board of Trustees.

He said that as of 2020, a total of 338,248 members currently save in the MP2 Savings. “These members saved, on average, P3,270 per month in their MP2 Savings last year. This means that it’s the typical Filipino worker who’s diligently saving and entrusting their hard-earned money with Pag-IBIG Fund,” del Rosario added.

The MP2 Savings is Pag-IBIG Fund’s voluntary savings program that has a 5-year maturity period and a minimum savings requirement of only P500. Made available to members in 2010, the savings program has seen phenomenal growth over the last 5 years, mainly due to the higher dividends it offers compared to the agency’s Regular Savings program. The agency expects to declare the MP2 Savings dividend rate for 2020 within the first quarter of the year.

“The continued growth of our MP2 Savings program is remarkable. It was only in 2017 when collections from our MP2 Savings surpassed the P1 billion-mark, which was then a historic feat. And by the end of 2020, in a span of just three years, MP2 Savings has now reached P13.28 billion. This surpasses the previous record-high of P12.01 billion saved by our members in 2019, achieving an 11% growth amid the pandemic. We thank our members for their continued support and enduring trust that despite the challenging times, they opted to save voluntarily in our MP2 Savings Program. That is why they can expect nothing less than our Lingkod Pag-IBIG brand of service, Tapat na Serbisyo, Mula sa Puso, from us,” said Pag-IBIG Fund CEO Acmad Rizaldy P. Moti.

As FATF’s Feb. 1 deadline looms, lawmakers rush to pass AMLA bill

January 18, 2021 | 12:33 am

By Luz Wendy T. Noble, Reporter

CONGRESS is rushing to finalize a bill that aims to strengthen the Anti-money Laundering Act of 2001 (AMLA), only two weeks before the deadline imposed by the Financial Action Task Force (FATF).

If it fails to implement tougher rules on money laundering by February, the Philippines may be included in the FATF’s gray list of countries deemed to have a high risk of money laundering and terrorism financing, and will be subjected to increased monitoring.

“The third reading in the Senate will resume [today]. We are scheduled for [the] Bicam[eral Conference Committee] on Tuesday,” Quirino Representative Junie E. Cua, who chairs the House Committee on Banks and Financial Intermediaries, told BusinessWorld in a phone interview.

“We want the business community to know that we are working on it. At the end of the day, we should be able to come up with an agreement,” Mr. Cua said.

House Bill 7904 was approved on third reading on Dec. 1, while Senate Bill (SB) 1945 is set to be approved on third reading as Congress resumes session today (Jan. 18).

“The deadline remains: The country seeks the support of Congress to pass a sufficient law and it must take effect by Feb. 1, so that the Philippines will not be publicly listed as a risk to the international financial system and suffer the economic consequences,” Anti-Money Laundering Council (AMLC) Executive Director Mel Georgie B. Racela said in a text message to BusinessWorld.

He noted both versions addressed most of the deficiencies in the AMLA, but the Senate version needs to be further tweaked.

“The Philippines cannot demonstrate satisfactory effectiveness if the Senate version is accepted in its current form, which will definitely mean the Philippines’ inclusion in the FATF ICRG (International Co-operation Review Group) gray list,” Mr. Racela said.

Mr. Racela said the House version grants more comprehensive investigation powers for the AMLC.

“Based on the Mutual Evaluation Report (MER), the grant of full investigative powers to the AMLC is critical in making it an effective financial intelligence unit,” Mr. Racela said.

The House version grants subpoena powers to the AMLC, but this is missing from the Senate version. Under SB 1945, AMLC is given the power to file warrants before the courts and to enlist other agencies for its investigation.

“It bears stressing that the deputation/enlistment power is already existing and is being exercised by the AMLC,” Mr. Racela said.

Mr. Racela pointed out a key recommendation of the Mutual Evaluation Report is the inclusion of real estate brokers and developers as covered persons, given FATF’s findings that dirty money proceeds have been used to purchase properties in many cases. The Senate version does not include real estate brokers and developers as covered persons.

“It must be understood that since real estate brokers and developers have direct contact with their customers, they are in the best position to execute anti-money laundering/counter-terrorism financing preventive measures in the sector as they are primarily involved in the buying and selling of real estate, where money laundering may occur,” Mr. Racela said.

The House version will increase the threshold of covered real estate single cash transactions to over P5 million, from the P1-million threshold that was initially proposed.

The House bill also integrated the P20-million threshold for tax crimes, which was agreed to by the Bureau of Internal Revenue (BIR). On the other hand, the Senate bill has a higher threshold of P25 million, which Mr. Racela said could “not be reasonable” and is “still the highest compared to various jurisdictions.”

President Rodrigo R. Duterte had certified as urgent the passage of the AMLA amendments, specifically mentioning the P20-million threshold for tax crimes.

“In addition, SB 1945 did not delete the ‘non-intervention with BIR affairs’ provision, which would be counterproductive to AMLC’s coordination efforts with the BIR when investigating tax crimes,” Mr. Racela said.

The Philippines was removed from the FATF’s gray list in February 2005, five years after its inclusion in 2000.

Government officials have warned the Philippines’ inclusion in the gray list could affect remittances and investments, as cross-border financial documents and transactions will have to undergo more stringent processes and could result in delays of expected inflows.

The FATF’s recommendation in relation to counter-terrorism financing had already been addressed through the controversial R.A. No. 1149 or the Anti-Terror Act of 2020.

Coronavirus pummels technology-illiterate Filipino entrepreneurs

January 18, 2021 | 12:32 am

By Angelica Y. Yang

THIRTY-THREE-YEAR-OLD Liezel S. Silva, who sells phone cases and other mobile gadgets inside the Greenhills Shopping Center in San Juan City near the Philippine capital, has yet to find a way to sell her wares online amid a coronavirus pandemic.

Quite ironic given her business line. As a result, her sales in December — normally a month when entrepreneurs experience skyrocketing sales — plunged by 40% from a year earlier. She doesn’t expect her small business to recover soon.

BW Bullseye 2020-focus “Sales were anemic compared with the previous year,” Ms. Silva, who’s been selling digital accessories for two decades, said in a mobile phone message. “We were really badly affected by the pandemic.”

Her case highlights the need for small business owners to adapt to the new normal by having an online presence, according to Robert Dan J. Roces, chief economist at Security Bank Corp.

“Small business owners must find new ways to get their products to the customers, and the scale of production usually isn’t huge,” he said in an e-mail.

Pauline D. Lagdameo, 52, started selling cakes online a year ago, and she was ready when the COVID-19 virus came.

Her online baking business Chef P’s managed to increase profit during the pandemic even if she had fewer customers, she said in a text message. “I had fewer orders but higher profit because the cakes I sold were more expensive,” she pointed out.

In 2019, she sold small choco stirrers for as cheap as P60 apiece, so more people ordered. During the pandemic, she mainly sold whole cakes such as Basque Burnt Cheesecake for as much as P1,500.

“Some entrepreneurs adapted easily to the new normal of doing business by having an online presence, making them more accessible to customers who are hesitant to go out,” Mr. Roces said.

Some merchants of online shopping company Lazada Group in the Philippines more than doubled their sales during the pandemic even if they started only this year, Chief Executive Officer Raymond N. Alimurung said.

Rival Shopee Pte Ltd. sold 12 million items in less than 30 minutes during its Dec. 12 sale, with as many as a million products bought within a minute, according to ABS-CBN News.

John Patrick Cua, managing director at Nielsen Retail Intelligence, had predicted higher sales of baking products and the usual Christmas items such as ham, all-purpose cream, pasta and canned goods.

Fitch Solutions had projected an 8% contraction in Philippine household spending for 2020 because of the pandemic, worse than the 2.9% during the 2008-2009 global financial crisis.

Household spending, which accounts for about 70% of economic output, would probably grow by 5.7% this year, it said in an October report.

Household spending shrank by 9.3 % year on year in the third quarter, slower than 15.3% a quarter earlier, according to the local statistics agency. Household spending and gross domestic product data are due for release this month.

Some companies though probably don’t need to boost their online presence to increase sales — canned good makers, for example.

Sales at Mega Global Corp., known for its brand of canned sardines and tuna, likely fell by 5% last quarter from a year earlier, though revenue from its canned fruits and vegetables surged by 43%, according to Chief Operating Officer Michelle Tiu Lim-Chan.

“Since there are still restrictions in place, in-home celebrations during the holidays were highly encouraged, which gave us better sales growth for our Mega Prime product line,” she said in an e-mailed reply to questions.

FILIPINO RESILIENCE
Ms. Chan said Mega was one of a few companies that benefited from the global health crisis as people locked at home consumed more canned foods. Mega canned products were also a prominent feature of government relief goods.

The seasonally adjusted consumer price index for all items climbed by 0.7% in December from a month earlier, slower than 0.9% in November, according to the Philippine Statistics Authority.

Slower month-on-month increments were observed in the seasonally adjusted index for food and nonalcoholic beverages at 1.4% from 2% in November; 1% for alcoholic beverages and tobacco from 2.3%; and 0.1% for clothing and footwear from 0.2%, it added.

During the health crisis, Filipino resilience has been in full display, said Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc.

“I see this in times of storms and other natural disasters,” he said in an e-mail. “When times are dire and the pocket is shrinking, Filipinos are still smiling and accepting of their lot and respond to the challenging situation at hand.”

While it’s difficult to generalize resilience when it comes to micro, small and medium enterprises, “it can be said that the Filipino spirit is there and they will respond for the right reasons,” Mr. Asuncion said.

The economist also noted how dollars sent home by migrant Filipino workers could help small businesses survive during the pandemic, noting that remittances remain vital for a consumption-driven economy like the Philippines.

“We did expect a larger decline in 2020, but it has performed better than-expected,” Mr. Asuncion said.

“Remittance inflows are important for the consumption-driven Philippine economy and with its still robust flows despite the pandemic, I wouldn’t be surprised if small businesses continue to thrive,” he added.

Congress may run out of time to approve economic bills

January 18, 2021 | 12:31 am

Congress will prioritize economic measures when session resumes today. — PHILIPPINE STAR/MICHAEL VARCAS

THE 18^TH CONGRESS may soon run out of time to pass key economic legislation, as lawmakers are expected to focus on their reelection campaigns beginning in the second half of the year.

Political science professor Maria Ela L. Atienza of the University of the Philippines said lawmakers should immediately prioritize bills that will aid the economy’s post-pandemic recovery.

“Given the limited time available to them now because they will soon be busy with a lot of election-related activities by the third and fourth quarter of this year, they should prioritize bills related to economic recovery and assisting Filipino enterprises and workers adversely affected by the pandemic,” she said in an e-mail on Sunday.

The economy is expected to recover this year after it contracted by 10% in the first nine months of 2020 amid the coronavirus disease 2019 (COVID-19) pandemic. Economic managers expect gross domestic product to grow by 6.5% to 7.5% this year.

Ms. Atienza said it would be difficult to pass any tax-related measures during Congress’ third regular session that will open in July, as many will be preparing for their election campaign. The national election is scheduled on May 9, 2022.

“It is indeed difficult to convince people that taxes are needed for the government to continue delivering services when a large portion of the population is already facing a lot of economic difficulties and there are questions about the government’s efficiency in delivering basic services,” she said.

“Many legislators are also more conscious now about their chances in the next elections.”

Also, Ms. Atienza noted the move to amend economic provisions of the 1987 Constitution, which had long been an agenda of past administrations, will be difficult amid the pressure on the government to address pandemic-related issues.

“The legislators in both Houses, with the majority still claiming to support the President, will definitely try to balance these competing demands as well as their chances for reelection or election to other offices in 2022,” she said.

However, Congress leaders are confident that the Duterte administration’s priority economic measures will be approved before the second session ends on June 5. These include the measures that will immediately cut corporate income tax to 25% from 30%, and strengthen the existing law to prevent money laundering.

“I was informed that the Bicameral Conference (Committees) on the CREATE (Corporate Recovery and Tax Incentives for Enterprises) bill and AMLA (Anti-Money Laundering Act) amendments may meet anytime (this) week to discuss the differences between the Senate and the House versions,” House Majority Leader and Leyte Rep. Ferdinand Martin G. Romualdez said in a phone message on Thursday.

Mr. Romualdez said these measures would help the economy recover from the pandemic.

“Once enacted into law, the CREATE bill will definitely provide businesses, particularly MSMEs (micro, small, and medium enterprises) with one of the largest economic stimulus measures in the country’s history to help them recover from the economic turmoil caused by the COVID-19 pandemic,” he also said.

The proposed AMLA changes, meanwhile, are being rushed to allow the Philippines to meet the Feb. 1 deadline of the Financial Action Task Force (FATF) and avoid being gray-listed.

Aside from these two measures, the Senate will also prioritize the proposed changes to the Retail Trade Liberalization Act (RTLA), under RA 8762, and Public Service Act, under Commonwealth Act No. 146.

Senate President Vicente C. Sotto III had said in a media forum on Jan. 13 that the bills are prioritized “in no particular order. Kung ano ’yung kayang i-fast-break, gawin na agad.”

Senate Bill No. 1840 that will reduce paid-up capital requirement for foreign retailers to $300,000 from $2.5-7.5 million had been endorsed for plenary action. Meanwhile, bills that seek to clarify industries identified as public services are still pending at the committee level.

Senate Majority Leader Juan Miguel F. Zubiri said in a statement on Sunday that the chamber will focus on passing bills on CREATE, the coconut farmers trust fund, and the confirmation of imperfect land titles, which are being tackled by the Bicameral Conference Committees.

Mr. Zubiri said the Senate will start plenary debates on the RTLA and PSA amendments, and other bills such as the Internet Transactions Act and the creation of a new department for Filipino migrants.

The House had also passed and transmitted to the Senate its versions of the said bills under HB Nos. 59 and 78. — Charmaine A. Tadalan

PLDT targets more innovative solutions this year

January 18, 2021 | 12:06 am

PLDT, Inc. has said it is ready to invest between P88 billion and P92 billion this year to meet the requirements of its customers. — BW FILE PHOTO

By Arjay L. Balinbin, Senior Reporter

PLDT, Inc. is planning to produce more “innovative solutions” this year, as it expects that consumers would keep their digital lifestyle even after the coronavirus vaccine rollout.

“There definitely will be an outpour of innovative solutions that support flexible working conditions across different industry shapes and sizes,” Alfredo S. Panlilio, PLDT chief revenue officer, told BusinessWorld in an e-mailed reply to questions on Jan. 14.

He added: “Telco will come up with the best product portfolio that will champion mobility and other digital services.”

Mr. Panlilio, who also serves as president and chief executive officer of Smart Communications, Inc., believes that even when the coronavirus vaccine finally allows for increased face-to-face interaction, consumers will still prefer the online lifestyle through e-commerce, e-gaming, e-learning, virtual entertainment, e-sports, and e-health.

Such digital services have proven their “convenience and efficiency” versus how things were done over a year ago, he noted.

“Our recovery from this pandemic will not spell a return to the old normal. The change in behavior is already there and the final state will be both an online and offline modality, where online solutions will be more critical than offline. Internally, we are gearing up for a full hybrid way of working after seeing better operational efficiencies brought about by telecommuting and digitization,” Mr. Panlilio explained.

PLDT and Smart have started focusing on cost-efficiency and customer-centricity.

The pandemic has given PLDT and Smart an “urgent reason to review and rationalize” their costs and initiatives, he said. “It also has allowed us to work closely together as one PLDT-Smart.”

Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., said the vaccine rollout would mean short-term losses for the home broadband segment.

“First and foremost, classes could go back to the face-to-face format. So that’s the thing that you have to consider,” he said in a phone interview on Jan. 6.

PLDT’s fixed-line home broadband revenues for the first nine month of 2020 grew 14.06% to P23.93 billion from P20.98 billion in 2019.

The telco saw its mobile service revenues for the January to September period of 2020 hit P71.79 billion, 10.54% higher than the previous year’s P64.94 billion.

The company’s attributable net income grew 23.1% to P19.68 billion during the nine-month period.

“But then again, with what happened because of the pandemic, some of the changes it has brought could remain permanent. I mean, because of what happened, people have started appreciating what is being done through the digital space such as e-retailing, business transactions being done online, and e-payments. These could be kept moving forward. These could keep the vibrance in data demand and help the telco sector,” Mr. Tantiangco said.

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

Tourism group to gov’t: do more to lend recovery funds

January 18, 2021 | 12:05 am

By Jenina P. Ibañez, Reporter

THE country’s tourism industry group said that there should be more efforts to help businesses avail of government assistance as it anticipates potential recovery only towards the end of 2021.

Tourism Congress of the Philippines (TCP) President Jose C. Clemente III said that there are tourism businesses that have been hesitant to avail of government loans allocated in the Bayanihan to Recover as One Act (Bayanihan II).

The same can be said, he added, about the cash-for-work program for tourism workers.

“We have to keep reminding affected workers that those are available for them,” he said in mobile messages last week, adding that the industry group is in talks with the government to help distribute funds.

The Trade department in 2020 approved only more than 2,000 loan applications valued at P430.1 million under the P10-billion Bayanihan II loans allocation for smaller businesses, missing its target of processing 15,000 applications for the year. The funding could potentially reach more than 50,000 borrowers overall.

Tourism revenues last year plunged 83% to P81.4 billion after pandemic-related travel restrictions led to an 84% decline in foreign visitor arrivals to 1.3 million. The Tourism department said it would be focusing recovery efforts on the domestic market and will be considering creating travel bubbles with neighbouring countries.

Mr. Clemente said that tourism recovery this year is still uncertain while the public refrains from travel as more strains of the coronavirus disease 2019 (COVID-19) occur.

“If we can get a significant portion of the population immunized towards the middle of the year, then we might see some activity towards the end of the year,” he said. The government is in talks with seven vaccine manufacturers for 148 million COVID-19 vaccine doses to inoculate 50-70 million Filipinos this year.

The Tourism department is also calling for unified contact tracing and requirements among local government units, which decide on the reopening of their areas for tourists. Areas that have reopened tourist destinations include Manila, Boracay, Palawan, Cebu, Bohol, Baguio, and Ilocos Norte.

Mr. Clemente also said that there should be standardized guidelines for all travel destinations.

“As of now, local governments have implemented their respective guidelines which, at times, makes it more difficult for travelers to visit. They are also confusing to most people, which goes against the tenet that travel must be easy,” he said.

The industry retains some optimism, Mr. Clemente said, after recent talks with global partners that continue to identify the country as a top travel destination, indicating potential quick recovery as soon as it is safe to travel.

But many tourism businesses, he added, have already closed shop entirely.

“It has been a cruel 10 months to the travel and tourism industry and we still can’t quite see yet when things will start to pick up, but we continue to cling to hope,” Mr. Clemente said.

Milan Fashion Week: Social commentary in fabric

January 18, 2021 | 12:04 am

FASHION’S power as social commentary has never been more evident than in this year’s first fashion show series, Milan Men’s Fashion Week Fall-Winter 2021. It’s ongoing until Jan. 19, all democratically shown through cameramoda.it, the website of the National Chamber of Italian Fashion. Every seat in the world thus becomes a front-row seat.

Pandemic restrictions on mass gatherings in hard-hit Italy have also forced designers to become more creative. Showing collections outdoors, once a novelty, have become a necessity.

ERMENEGILDO ZEGNA
Ermenegildo Zegna’s Fall Winter 2021 is an imaginative 15-minute fashion film showing the quiet that now marks most of Milan’s urban landscapes. The buildings they chose as backdrops to the fashion, such as the Piazza Olivetti, show stark modernity, itself contrasting with the softness of their offerings.

This new line, made with soft fabrics in soft lines, in neutrals, removes any notion of “looking sharp.” We suppose it’s a commentary for work-from-home individuals and executives. In fact, most of the offerings from this house, known for its suits, suspiciously look like loungewear. The collection, however, is taken from the decidedly youthful Ermenegildo Zegna XXX segment. Several coats look like they can double as dressing robes, passed off as their chic older brother, the smoking jacket.

The show itself shows the lives we lead now, locked in cubes, while we, and the fashion show, both ache for a narrative. It’s not often that we get to see runway clothes actually in action, especially in such stunning settings as a reimagining of the ghost world that replaced the spaces we once occupied.

Watch the show here: https://milanofashionweek.cameramoda.it/en/brands/ermenegildo-zegna-runway/

LAGOS SPACE PROGRAMME
We don’t usually associate Nigeria with luxury fashion, the avant-garde, or even progressive discussions on gender. But a maison founded there, Lagos Space Programme, tries to change all those notions.

A press release by the company, founded by English-educated Nigeria-based designer Adeju Thompson, says, “Lagos Space Programme is a conceptual, avant-garde, luxury Nigerian fashion brand. We offer intellectual, ready-to-wear high-end crafted collections while exploring parallel concepts through multidisciplinary collaboration projects.”

The collection is called Aso Lànkí, Kí Ató Ki Ènìyàn (translated as “We greet the dress before we greet its wearer”). It takes inspiration from the the Yoruba people, and according to the release, “highlights an early example of gender-bending within Yoruba society” — a difficult conversation in a country where same-sex activity is illegal.

Shot in the Osun Sacred Grove (a forest dedicated to the Yoruba Goddess of Fertility), the collection contains a palate of rich blues, thanks to local and natural indigo dyes. The collection itself shows crispness in texture but softness in tailoring; with outfits worn by indigenous people in Nigeria combined with a bit of the West, perhaps showing a dialogue.

Watch the show here: https://milanofashionweek.cameramoda.it/en/brands/lagos-space-programme-runway/

FENDI
Luxury house Fendi, known for its cheeky sense of humor (they did make the impossibly small Baguette bag), opens its show with a very familiar event these days: a phone call. A woman named Silvia places a call (presumably Silvia Fendi, the house’s Creative Director) and says, “I just want to tell you about humanity, color, what is normal today; about light, and darkness.” The call is mixed and remixed to become the show’s background music.

The collection plays to this season’s theme of comfort, with loose cuts. Furthermore, the tailoring is also decidedly soft, ending in cuffs that appear convex; almost as if the clothes themselves had an introversion. The house also highlights the softness with tactility and texture: think suede, quilting fur, and silks; making the feeling of softness an overall sensorial experience.

Of course, Fendi is still Fendi, so any outfits that might have resembled loungewear (such as a robe/smoking jacket: a new trend?) are still undeniably luxe: a shimmering silk, quilted and splashed with flowers and the house’s name in cursive.

Watch the show here: https://milanofashionweek.cameramoda.it/en/brands/fendi-runway/ — Joseph L. Garcia

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