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Thailand sold itself as a paradise COVID retreat — no one came

It’s hard to imagine a more luxurious place to spend two weeks of quarantine than the Anantara Phuket Suites & Villas in Thailand, where visitors are pampered in private residences that can have their own pool and courtyard.

Yet more than three months after the resort and more than a hundred like it reopened to extended-stay travelers in an attempt to revive Thailand’s battered economy, foreign arrivals have failed to meet even rock-bottom expectations. Just 346 overseas visitors have entered the country on average each month on special visas since October, according to the Thailand Longstay Company, which helps facilitate the program. That’s well below the government’s target of about 1,200 and a tiny fraction of the more than 3 million who came before the pandemic.

The tepid response to Thailand’s highly publicized reopening illustrates the difficulties facing tourist-dependent countries as they try to shore up economic growth while also protecting citizens from coronavirus disease 2019 (COVID-19) before vaccines become widely available.

Thailand had hoped to lure retirees escaping the European winter and others who could stay for an extended period. They would have to go through quarantine, but that could be done in the comfort of high-end resorts in a country that had been relatively unscathed by the pandemic. After two weeks, Thailand would be theirs to roam for as long as nine months.

The lack of interest is adding pressure on Thai policy makers, who have struggled to accommodate both industry players calling for relaxed quarantine rules and public-health experts warning against putting people in danger. All the while, as the beaches stay empty, many tourism-related companies are going out of business. To make matters worse, virus cases have jumped in the country.

“It’s really challenging to balance the demands of the tourism industry and locals,” said Bhummikitti Ruktaengam, president of the Phuket Tourist Association. “I understand how hard it is to be stuck in a room for 14 days. I’ve done it. But the safety of the people gets priority because tourists come and go but locals live here.”

In 2019, Thailand received more than $60 billion in tourism revenue from about 40 million visitors. The industry contributed about a fifth of gross domestic product before the pandemic, compared to about 10% globally.

But six months without any foreign arrivals followed by months with just a trickle has battered the sector. At least 931 registered tourism-related companies closed last year, according to a Bloomberg News analysis of data from the Commerce Ministry’s Department of Business Development. The real number is probably much higher as many tourism businesses aren’t registered in any database.

On Thailand’s famed resort islands, the situation is particularly bad. Take Phuket, which got about 90% of its tourism income from foreign visitors before the pandemic. At Patong, its main tourist town, a once busy street of bars and nightclubs lies empty. Bangla Road is lined with shuttered businesses, with chairs stacked on tables and chains barring access. Dust gathers on the barstools and countertops. The few places that are open have barely any customers.

“When there are no foreigners, the area is just empty,” said Rungarun Loiluen, who works at The Kitchen, a restaurant and bar at the end of Bangla Road. She’s one of eight employees who kept their jobs from about 30 before the pandemic, albeit with fewer working hours. “There’s barely anyone walking down the road.”

On the next block over, Hotel Clover Patong Phuket has slashed its prices by as much as 75% to attract domestic travelers instead of its usual clientele of American, Russian, and Chinese tourists. Still, it ran at about 10% occupancy in December, a period that used to be overbooked, according to Jessada Srivichian, the hotel’s country financial manager.

Despite the government’s efforts to help tourism businesses, such as subsidizing the cost of hotel rooms, meals, and airfares, domestic tourists who usually travel just on weekends can’t fill the gap left by foreign visitors. Even though only about half the country’s hotels have reopened, the average occupancy rate is only about 34%, Yuthasak Supasorn, governor of the Tourism Authority of Thailand, said in an interview in December.

“I’ve been in Phuket for 20 years and have never seen it this quiet,” Hotel Clover’s Jessada said. “We need international visitors. We’re not thinking of making a profit but instead focusing on minimizing losses, because as long as there’s a quarantine requirement, people won’t come.”

The government should consider waiving the two-week isolation requirement for visitors from regions of countries with no local infections for more than 60 days, Vichit Prakobgosol, president of the Association of Thai Travel Agents, said in late September. He was hoping to have the rule relaxed for visitors from some parts of China, Thailand’s biggest source of tourism income. But no such deal was concluded.

“It seems impractical to double the duration of a trip to satisfy the local quarantine requirements,” said Ron Cooper, an American photographer and business consultant who traveled abroad for leisure several times a year before the pandemic. “Add to that the cost of staying in a hotel for two unproductive weeks—not a very attractive proposition.”

Thailand’s approach contrasts with other tourism destinations that have been less cautious. The Maldives reopened to overseas tourists in July without requiring a quarantine, although a negative COVID-19 test is needed. The archipelago has seen more than 172,000 arrivals since then, according to Maldives Immigration data. While new infections increased in the aftermath, they’ve since declined.

“It was bold, daring to open up the Maldives with all the risks attached to it,” said Dirk De Cuyper, chief executive officer of S Hotels & Resorts Pcl, whose December occupancy rate at Maldives properties was 70%. And that might be bad news for Thailand, he said. “Many travelers won’t buy into quarantine, particularly when other countries are opening up and they have no quarantine rules.”

But most Thais opposed the reopening plan and are unlikely to want relaxed quarantine rules, partly because local residents live close to the resorts, unlike in the Maldives where properties are often isolated on their own islands.

“If I had to choose between health and income, I’d choose health,” said Wiparad Noiphao, a fruit and vegetable vendor at Banzaan fresh market in Patong. “We have to prioritize safety.”

As a compromise, the government’s COVID-19 task force discussed shortening the quarantine period to 10 days. But that has yet to be implemented because of concerns about new infections. The government has also approved six golf resorts as quarantine centers.

“Any modification to the original plan would mean higher risks,” said Thira Woratanarat, an associate professor at Chulalongkorn University’s Faculty of Medicine. “There are many examples of free international travel that led to a resurgence,” he said, giving the example of Europe. “We should wait until the global virus situation has improved.”

A resurgence of the virus has also weakened the case for easing quarantine rules. Thailand has seen COVID-19 infections more than double to more than 12,000 in less than a month. An outbreak that began in seafood markets and migrant communities has spread throughout the country. The government curbed travel in some high-risk regions but has so far refrained from imposing a broad lockdown. It has also extended its travel-subsidy program.

Ultimately, the country won’t fully reopen until vaccines are widely available, government officials have said. Thailand plans to offer the shot developed by Sinovac Biotech Ltd. to frontline health workers and those with underlying conditions before the end of February. From May, it will give one by AstraZeneca Plc and the University of Oxford, aiming to inoculate at least 33 million people, about half the nation’s population, by the end of 2021.

Questions remain about how international tourism will function as more people become vaccinated worldwide. Vaccine passports are seen as a way to get people traveling again, but whether and how they will be implemented is still unclear. It’s not even known whether vaccinated people can transmit the virus.

Taking all this into account, the Bank of Thailand estimates that even in 2022, overseas visitors will still fall well short of the 40 million in 2019. It projects that 5.5 million people will visit this year and 23 million in 2022.

The economy is estimated to have contracted 6% in 2020, the biggest decline since the Asian financial crisis. It’s projected to expand 3.5%-4.5% in 2021, according to the National Economic and Social Development Council.

Despite the hit to the economy, the Phuket Tourist Association’s Bhummikitti says Thailand’s cautious reopening plan was the correct option, and the embattled tourism industry has little choice but to wait for vaccines to take hold.

“We can’t close our borders forever, and we can’t let people in without strict measures in place,” he said. “So this controlled, gradual reopening is the best approach.” — Randy Thanthong-Knight/Bloomberg

How ‘purpose-driven digital’ can help customers during the pandemic

In this piece, Judson Althoff – Executive Vice President, Worldwide Commercial Business, shares how Microsoft’s purpose-driven digital approach helped companies and countries adapt to the challenges brought about by the COVID-19 pandemic. Read the original article here.

In Sri Lanka, the coronavirus very nearly shut down the country’s renowned 150-year old tea industry, so the Sri Lanka Tea Board and its Tea Traders Associations, with the help of a local Microsoft partner, developed an e-auction system using Azure and Teams to maintain social distancing and save almost 2 million jobs.

As organizations adapt to a COVID-19 world, their sense of purpose is taking on new meaning. 

We call this trend “purpose-driven digital,” or the art and science of leveraging technology innovation to drive business and societal outcomes for good. 

At Microsoft, we share this purpose and are honored to be a trusted partner and strategic advisor for our customers worldwide, like the Sri Lanka Tea Board. Here are some of our global partnerships that we hope to replicate in the Philippines to help the country thrive in a post-pandemic world. 

Microsoft, a global partner in fighting Covid-19

In healthcare, the industry continues to make advances in research and primary care to prevent infection, treat, or find a vaccine for COVID-19. In support of those and other efforts, we launched Microsoft Cloud for Healthcare. It is our first industry-specific cloud offering that brings together trusted and integrated capabilities for customers and partners to enrich patient engagement and connect health teams to improve collaboration, decision-making and operational efficiencies. 

We also announced alliances with ImmunityBio to perform computational analysis on the coronavirus using the power of our cloud, and UnitedHealth Group to launch ProtectWell™, a return-to-workplace protocol powered by Microsoft cloud and AI technologies that helps manage employee symptom screening to create a safer work environment. 

In London, doctors at Imperial College Healthcare NHS Trust have adopted HoloLens to limit the number of clinicians needing to enter high-risk areas of their hospital during COVID-19, while maintaining the highest levels of care and saving up to 700 items of personal protective equipment (PPE) per ward each week. 

Hololens

Baltimore, Maryland-based Johns Hopkins shared how it is combining the power of Azure and AI with its research expertise to support its inHealth Precision Medicine Analytics Platform to drive new medical discoveries and improve disease management. 

NHSX/NHS Digital are enabling organizations across England to support first-line workers during the pandemic, providing as many as 1.2 million workers with Microsoft 365 digital tools while Premera Blue Cross, the leading health insurance provider in the U.S. Pacific Northwest, has deployed 500 Surface devices for its office workers to deliver wellness and prevention care to more than 2 million of its members.

Regardless of industry, organizations are embracing these technologies as part of business continuity planning and as a strategy to modernize operations and customer experiences. PCL Construction began manufacturing and assembling Citizen Care Pods, retrofitted from shipping containers and powered by our cloud and AI technologies to support reliable, convenient COVID-19 testing for patients. 

Citizen Care Pods

Reinventing e-commerce

In a multiyear collaboration with FedEx, we shared plans to reinvent the end-to-end commerce experience globally, creating opportunities for FedEx customers and enabling businesses to better compete in a growing digital landscape powered by Microsoft Azure and Dynamics 365. 

We also launched a cloud platform in partnership with Walgreens Boots Alliance (WBA) and Adobe to provide WBA customers with personalized health care and shopping experiences, further enhancing WBA’s loyalty program and advancing its digital transformation. 

Leading the way in smart manufacturing

In manufacturing and logistics, we announced a partnership with Sony Semiconductor Solutions to make AI-powered smart cameras and video analytics easier to access and deploy across industries – for instance, a manufacturer might use smart cameras to identify hazards on its manufacturing floor in real-time before injuries can occur. 

We also shared how we are working with Hitachi to build resilient supply chains and equip first-line workers with predictive maintenance and remote assist capabilities to boost productivity and operational efficiency. Additionally, GE Aviation announced they are offering a new digital fuel dashboard at no cost to commercial airline customers using its Azure-enabled event measurement system as a way of providing operational efficiency and agility to customers affected by the pandemic.

Building better businesses

We are continuing to partner with software companies like Workday and SAS to deliver new solutions at scale on Azure to help our joint customers improve business performance with our cloud technologies. Collaborating with these companies and other ISVs allows us to introduce more repeatable solutions into the marketplace and accelerate our customers’ cloud journey.

Tips for smart investing 

John Padilla of Metrobank shares important things to remember when investing

So you’ve managed to take the first step and enter the world of investing. Congratulations on beginning your financial journey! To reach your end goal, however, there are some key things to keep in mind. For one, what is your purpose?

Before investing, make sure your goals are set clearly why you are investing. What works for a friend or a colleague may not work for you; his risks are not the same as your risks in the same way that what excites you is different from his. I believe every person is motivated to invest because of the future. However, investing is a discipline and entails diligence. Having a clear goal sets your journey in investing in the right direction.

A long-term goal should be supported by a long-term strategy, a short one supported by an equally short game. Achieving your long-term goal using short-term tools may succeed but may also lead to disappointment.

Having a crystal clear goal and purpose on your investment is the first step. The whys will determine your desired return on your investment, your investment horizon, and risk tolerance, among others. Guided by these, you may seek advice from your friendly bank who will direct you to the appropriate fund/s.

Metrobank has tons of free webinars on this and our staff is equipped to help go through this process. The second option is to do the fund-hunting yourself. To do this, you must be prepared to devote time and effort to scan the market for all the available funds, study their characteristics, past performance, fund strategy, and fund house itself, etc.  

Second, make sure to follow through on your investments. Investing your own money demands absolute commitment. Task yourself into knowing where you are at any given point in time. Assess the environment which may have changed and check your own goals if they too have moved. Continue learning, explore other products, and challenge the norm. These are some of the building blocks for a more fruitful and enjoyable investing journey.

There is a saying that “the trend is your friend.” I think this is especially true if you are a short-term investor. For most investors, a more deliberate approach may be suitable such as keeping your investment goals in terms of return and time horizon.

But any investor should be observing the trend and continuously learn about the dynamics in the markets such as the interplay of key macro figures like GDP, forex, OFW remittances, and the impact of COVID-19, among others.

Following the trend should not be misconstrued as “bandwagon investing” which puts you behind the trend. Rather, “following” the trend should mean a more deliberate and analytical approach, which puts you ahead of the trend. 

The truth is this is easier said than done because of the noise going on around you, but a disciplined approach allows the investor to gradually gain savviness and muddle through the market.

Long term is investing, short term is trading.

Investing for the long term requires discipline on the part of the investor to stick to the plan; usually involves maintaining an investment horizon of five years and longer. Hence, the money committed here should not be for immediate needs such as school tuition, house purchase, or wedding. To maximize your return, be prepared to commit for the long haul. Do not be rattled by wild swings in the market and accept that volatility is part of investing especially if its equities.  

Likewise, as a committed investor, it is imperative that an understanding of investments is clear from the get-go. This will ensure that your goals and the investment outlet or instrument are in synch. It is not uncommon to discover later on that there is disconnect between the two. Part of the discipline calls for a regular assessment of your investment, annually at the very least.  

Initially, an investor may target to buy government bonds, say a 10-year bond and all the investor needs to do is wait for periodic (usually semi-annual) payment of coupons over the life of the bond. GS are essentially risk-free, making this a safe strategy.

However, applying a buy-and-hold strategy may not be the smartest way to invest as you may miss out on the re-investment of the coupons. A professionally-managed UITF Bond Fund does this exactly for you. In a fund, the fund manager employs tactical measures (short-term initiatives) together with the long-term strategy as part of the bond fund’s mandate.

Investing in stocks may likewise qualify as a legit long-term investment. What to buy and when to buy and sell, however, may prove to be tricky. As they say in investing: “Timing is everything.” A professionally-managed equity fund is the most efficient vehicle because this gives the investor access to a diversified portfolio of stocks, which may be close to impossible to achieve given the size of your fund; not to mention dealing with the unfamiliarity with the stock market trading itself. Remember, the key to successful stock investing is committing for the long haul.  

On the other hand, short-term investing responds to a different type of need. Here, the investor is either looking for a quick gain or simply has a limited time horizon. If you’re the first type, I suggest you pack in a lot of courage because your journey may be rewarding to the pocket as it could be brutal to the emotion. If you’re the second, perhaps instruments like treasury bills, money market funds or instruments or special savings deposits may be more applicable. A short-term investment is generally known to have an investment period of less than one year.

New Bold U aims to bring new world learning on its 3rd edition

To bring a platform that will reimagine new ways to educate people with ideas to thrive and give them an optimistic drive for the future while we are at the onslaught of the pandemic, 2019 Asia’s Most Outstanding Marketer and Serial Entrepreneur Ralph Layco is conducting the 3rd edition of New Bold University from Jan. 28 to 30, 2021.

On its third year, New Bold University, also known as New Bold U, will feature some of the country’s top minds who are shaking things up in their respective industries.

Speakers like Francis Kong, Anthony Pangilinan, and Steve Sy will share some powerful insights you can use in your life’s calling, improve your chances to win bigger in life, and make you stronger to face the challenges of the new year amid the pandemic. They are tribe leaders and thought leaders who will help spark curiosity, growth and imagination, but also has a strong moral compass that inspires people to do good.

This year, the event will go virtual and students will be immersed with innovative, dynamic and fun ways of distance learning in the new world.

“The ‘new normal’ of learning doesn’t mean the digitization of lectures and teaching styles. In the new normal learning, if it doesn’t feel like fun, it is not learning. It will be an obligation and will be considered ‘primitive.’ Thus, ‘new normal’ learning means purging or unlearning of previous ideas that are no longer relevant giving way to a more human-centered, entertainment way of learning,” Mr. Layco said.

One of the goals of New Bold U is to instill on their students the value of independent learning. Students will be bent on learning about their true passion and following what piques their curiosity. Learning in the new normal is easy as 1-2-3- subscribe.

New Bold U along with their students will deep dive on courses in general and advanced e-commerce, entrepreneurship and start-up, freelancing and passions, finance and personal development, and mindfulness and meditation.

“Before, we were asked to take a 4-year course. Before, we are to do anything with our lives which commonly is a mismatch of the person’s true passions. Now, people get to test their curiosities in real time. The median age of entrepreneurs in five years will be 23 as people get to test their ideas early,” Mr. Layco added.

Mr. Layco said that these changes ultimately lead us to more self-actualized students. “As they learn and execute their ideas faster, the more they are feeling self-fulfilled compared to generations before them.”

Since its foundation in 2019, New Bold U has produced top-notch freelancers, thought leaders, business leaders, and entrepreneurs who became CEOs of their respective businesses.

The New Bold U 2021 Virtual Conference will be held on Jan. 28 to 30. You may visit www.newboldu.com or their official Facebook page at https://www.facebook.com/newboldu for more details on the enrollment process.

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

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

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

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

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

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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. DiazPaolo L. Lopez, and Sam L. Marcelo.

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

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

REUTERS

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

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.