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QBO incubator targets 150 new startups this year

STARTUP incubator QBO Innovation Hub plans to add 150 new startups into its ecosystem by the end of 2021, its operations head said.

The incubator now has around 450 startups in its system, falling short of its target of 500 for 2020.

QBO Operations Head Natasha Dawn S. Bautista said in a recent online interview that the shortfall was caused by the incubator’s busy November and December months, along with a decline in the number of startups it could reach after the onboarding of hundreds.

QBO is also assessing its database of startups as some may have shut down or pivoted, which means that its current numbers may fall.

The effects of the pandemic on startups have been mixed, she said. Sectors like financial and health technology that address pandemic-related concerns grew, while some companies had to pivot to other types of businesses.

QBO expects steady growth going into 2021.

“We’re actually seeing a few startups being made because of the pandemic. Traditional businesses are also starting to listen to our meetings; a lot of traditional entrepreneurs are moving into this digital age finally, and that’s a big factor to consider. That’s why I feel like it will be growing even more (in 2021),” Ms. Bautista said.

QBO is planning online bootcamps and incubation programs to help create new startups.

A study by Isla Lipana & Co./PwC Philippines found that startup founders identified the financial impact and effects on operations, potential global recession, and difficulties with funding as top concerns caused by the pandemic.

According to the survey done in May, founders who said that they needed additional funding identified its use for their working capital requirements, technology improvements, and hiring.

For startup funding, Ms. Bautista is hoping for assistance from the Innovative Startup Act or Republic Act No. 11337, which provides incentives for startups and enablers. Its implementing rules and regulations (IRR) was signed the other year.

“From private money, we have a few venture capital players in the ecosystem that actually have been quite busy also even (in 2020),” she said.

She found that QBO received more funding in 2020. Most pre-pandemic funding came from the local public sector, she said. But last year, the incubator received grants from international private and public sources.

Ms. Bautista is optimistic about the future of Philippine startups as more companies look into funding and adopting digital tools.

“I do believe that our economy will be hit hard (in 2021), for another two or three years, but I do see that it’s forcing us to shift towards the digital age,” she said. — Jenina P. Ibañez

JAC Motors adds 4 key markets to network

TRIESENBURG AUTO Corp. (TAC), the official local distributor of JAC passenger and light commercial vehicles in the country, opened three new dealerships in South Luzon and one in the Visayas.

The recent opening before yearend of the Alabang, Makati, and Sta. Rosa, Laguna facilities, plus one in Iloilo, brings the total dealership network of the brand to six. “Despite the very challenging year that it has been especially with the automotive industry, TAC continues to be optimistic and confident that the situation will improve in 2021,” said the company in a release.

JAC Motors Iloilo, owned and operated by Iloilo Great Cars Corp. with Peter Paul Yap as dealer principal, is located at Pison Avenue, Barangay San Rafael, Mandurriao, Iloilo City. The showroom measures 250 sq.m., and can also provide aftersales service. JAC Motors Iloilo can be reached through its Facebook page or 0908-888-8200.

The brand is also set to open JAC Motors Kawit, Cavite (on the Centennial Road) owned by Atty. Arlan Profeta’s APGS Auto Trading, and JAC Motors Bauan, Batangas (on the National Road in Barangay San Roque) operated by CESCO Offshore Construction of Fructuso Montano.

“JAC Motors wants to change how dealership business is run and give the opportunity to more budding entrepreneurs to own and operate their own JAC dealership more easily,” maintained TAC. “We are open to any entrepreneur who wants to put up their own car dealership business even if they don’t have an existing dealer network and even if they don’t have previous experience running a car dealership.”

The company also said that having a large showroom isn’t a requirement, which means smaller capitalization. “This is one of the largest expenses that prevent people’s entry into the dealership business — the huge expense on building a showroom. JAC believes that smaller showrooms can work as effectively as large showrooms. Strategic locations are important, but the traditional dealership setup is not essential.”

Geely is now ready to serve Imus, Cavite

JUST BEFORE the end of 2020, Geely Philippines opened a new facility south of Metro Manila: Geely Imus — managed by Sojitz G Auto Philippines (SGAP) dealer partner the ANC Group of Companies.

Said SGAP President and CEO Mikihisa Takayama in a release, “It’s hard to invest in these trying times as the world copes up with the unprecedented challenges and while businesses are trying to recover from their losses. I would like to thank our partners, ANC Group of Companies, for staying by our side and for trusting us and the potential of our brand.”

Added the executive, “Rest assured that during this crisis, we will continue to beef up our efforts in keeping everything in the right direction especially in terms of distribution and product support system. Our partnership has so much to look forward to this year and beyond.”

The ANC Group of Companies has been in the Philippine automotive business for over two decades, and has at least 60 automotive dealership outlets in the country, mostly located within Metro Manila, North and South Luzon, Visayas, and Mindanao.

ANC Group of Companies President and CEO Anthony Cheng said, “I believe in the potential of Geely based on how it has performed since it entered the Philippine market. The Coolray did well in terms of market reception. I think this brand and what it can offer are something to look forward to in the years to come… We also look forward to the new Geely models which will surely bring excitement to car buyers,” Mr. Cheng added.

Geely Imus was constructed based on the company’s global showroom standards with the objective of providing a customer-friendly and relaxing atmosphere for everyone who visits it. Geely Imus is located on Emilio Aguinaldo highway, Anabu 1-D, Imus. For inquiries, contact 0917-820-6054.

Capital infusion and market sentiment lift AC Energy stock

AYALA-LED AC Energy Philippines, Inc. ended the year on a high note amid the sustained positive investor sentiments and following the company’s infusion of capital in its subsidiary to acquire potential project sites.

Data from the Philippine Stock Exchange (PSE) showed 123.14 million AC Energy shares worth P1.02 billion exchanged hands from Dec. 28 to 29, making it the second most actively traded stock in the last trading week of 2020.

Shares in the Ayala energy unit closed higher by 22.1% to P9.00 apiece from its P7.37 finish on Dec. 23, 2020. Compared with the first trading day last year, its latest share price has gone up almost four times.

Local financial markets were closed on Dec. 30 until Jan. 1 in observance of mandated holidays.

“The stock has consistently been hitting a new all-time high almost every week since September 2020. It has ended as one of the best performers of the year,” AAA Southeast Equities, Inc. Head of Research Christopher John Mangun said in an e-mail.

In a separate e-mail, Mercantile Securities Corp. Analyst Jeff Radley C. See noted the positive sentiment surrounding the stock.

“AC Energy is a monster stock this year despite the pandemic hitting our country. The company made a lot of efforts just to grow and create value for the firm,” Mr. See said.

Mr. See also noted AC Energy’s recent transaction with wholly-owned subsidiary Buendia Christiana Holdings Corp. (BCHC), which has helped fuel the stock’s rise.

AC Energy announced on Dec. 23 that it had signed an agreement to subscribe to 3.5 million preferred shares with a par value of P100. These shares are scheduled to be issued out of the increase in the unit’s authorized capital stock. These shares will then be paid in tranches with a partial payment of P150 million on the acquisition day.

On the terms of payment, AC Energy said the balance of the subscription price is payable upon demand, with the approval of BCHC’s board of directors.

It added that the transaction is subject to the necessary regulatory approvals from the Securities and Exchange Commission on the increase in the authorized capital stock of BCHC and the full payment of the subscription price.

The Ayala Corp. subsidiary has said in a disclosure that the subscription will be used by BCHC to “fund the acquisition of potential project sites.”

BCHC is a special purpose vehicle that will own the land for its parent company’s development projects.

A week prior to the transaction, AC Energy approved around P11 billion in funding for a Pampanga-based solar energy projection and a wind farm to be constructed in Ilocos Norte.

AC Energy posted an attributable net income of P977.78 million, or around three times higher than the P322.3 million recorded a year ago. For the three quarters to September, attributable net income amounted to P2.94 billion — a reversal of its loss of P229.57 million in the comparable period in 2019. 

AAA Southeast Equities’ Mr. Mangun noted AC Energy’s strong uptrend “may continue… all throughout [this] year.”

“There is some support at P8.00 and then another support level at P7.30. It may continue higher and break above P10.00 in the first trading week of January based on its momentum,” Mr. Mangun said.

Meanwhile, Mercantile Securities’ Mr. See said investors should watch how well AC Energy would execute its projects and joint ventures this year.

“The stock may reach P10.00 for now as it has already run its course. Support level will be at P8.50 and P8.00,” he said. — Michelle Anne P. Soliman

Gov’t debt yields flat on rate cut hints

YIELDS ON government securities (GS) moved sideways during the last trading week of 2020 as market players repositioned after the central bank chief hinted on more policy rate cuts in the medium term.

On average, GS yields — which move opposite to prices — went down by an average of 0.6 basis point (bp) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of Dec. 29 published on the Philippine Dealing System’s website.

Financial markets were closed from Dec. 30 to Jan. 1.

Despite the shortened trading week, yields on nearly all tenors retreated on Tuesday from their Dec. 23 finish except for the 20- and 25-year papers, which went up by 6.9 bps and 7.1 bps, respectively, to fetch 3.965% and 3.95%.

The rate of the three-year bond dropped the most, losing 4.3 bps to end at 2.077%, followed by the four-, two-, five-, and seven-year papers, which decreased by 3.8 bps, 3.2 bps, 3.1 bps, and 2.2 bps, respectively, to yield 2.299%, 1.846%, 2.503%, and 2.783%.

Yields on the three-month and six-month Treasury bills likewise declined by 1.4 bps (to 1.117%) and 1.3 bps (1.414%), while the 10- and one-year bonds shed 1.2 bps (2.996%) and 0.1 bp (1.712%).

“This is mostly driven by positioning ahead of potential easing measures by the BSP (Bangko Sentral ng Pilipinas) in the early months of 2021, especially following comments about more room for accommodative policy in the short-to-medium term and BSP’s goal of keeping interest rates low until 2022,” Security Bank Corp. First Vice-President and Head of Wholesale Treasury Sales Carlyn Therese X. Dulay said in an e-mail.

“The buying is mostly skewed around the three-year basket, given that next month’s bond auctions will be on the five- and seven-year sector,” Ms. Dulay added.

“Last two weeks of 2020 saw more activity than expected for this time of year as demand picked up on the belly (three- to seven-year bonds) of the yield curve. Buying interest surged with some investors waiting until the end before deploying cash over the New Year holiday,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said in a separate e-mail interview.

BSP Governor Benjamin E. Diokno, in an interview with Bloomberg TV on Dec. 22, said the central bank has monetary space available as it plans to keep a low interest rate environment until end-2022.

The central bank last year trimmed the rates on its overnight reverse repurchase, lending, and deposit facilities by a cumulative 200 bps to record lows of 2%, 2.5%, and 1.5%, respectively, to prop up the consumption-driven Philippine economy reeling from the fallout brought by the coronavirus pandemic.

Meanwhile, the Bureau of the Treasury (BTr) will borrow P140 billion from the domestic debt market this month — P20 billion more than it programmed last December — leveraging on robust demand seen during previous auctions.

Ms. Dulay sees local yields moving “range-bound” this week, with a slight upward bias for tenors of five years and up, as the market will be taking in P30 billion in five-year bonds.

“This will thicken the supply in the already heavy five-year sector hence market might show some defensiveness on the bid side until clearer downward catalysts emerge,” she said.

The Treasury will offer reissued 10-year bonds with a remaining life of 4.8 years worth P30 billion on Tuesday.

Mr. Liboro expects yields to consolidate early on, with investors gauging market interest during the BTr’s five- and seven-year note auctions in January.

“Given the persistent demand on that portion of the curve, the five-year auction should generate decent demand and clear within the 2.5%-2.75% range. Given that we are currently trading around the 2.5% level, an award at the higher side of that range could cause rates to adjust marginally higher in the short-term,” Mr. Liboro said. — Lourdes O. Pilar

Style (01/04/21)

Guess launches capsule collection with singer

TO CELEBRATE Indonesian singer NIKI’s debut album, Moonchild, GUESS Originals has collaborated with the singer to create a limited capsule edition that brings the artist’s vision of a fictional realm and character to life. The collection is composed of stylish and comfortable pieces which are very much in line with the recent work/study-from-home outfit trends that we’re seeing now. The pieces come in dark purple and black moody tones and pastel pink purple for its graphic prints. The GUESS Originals x NIKI ‘Moonchild’ capsule collection pieces range in price from P1,898 to P5,498 and include a women’s tank top that pairs with a matching biker short in a constellation print. The rest of the collection suits both men and women, including a selection of short sleeved T-shirts, hoodies, jogger pants, and baseball hats in both black and purple hues that mimic the lunar-themed album imagery. The garments feature NIKI’s signature Moonchild logo across the back.

Gucci collaborates with North Face

ITALIAN luxury house Gucci revealed its collaboration with activewear brand The North Face that celebrates the spirit of exploration. Whether literal exploration of places and cultures or the more metaphorical adventures encouraged today by Creative Director Alessandro Michele, Gucci has always catered to the curious, presenting its clothes as tools that push the wearer into different territories. This special cross-category collection for men and women comprises ready-to-wear, soft accessories, luggage, and shoes, as well as some more unexpected pieces linked to the outdoor world of The North Face, such as tents and sleeping bags. The North Face x Gucci Collection is in line with the commitments of both the two brands to eco-sustainable activities.  The luggage contains ECONYL®, a nylon fabric sourced from used material (fish nets, carpets, and other scraps) that can be recycled and recreated, aiding in decreasing its ecological footprint. The color palette was inspired by the 1970s and is based on The North Face materials library. Archival fabrics have been partially incorporated into the collection to give them a new life. Packaging for the pieces come in vibrant pink featuring The North Face X Gucci logo. The garment and carrier bags, boxes and pouches have been strategically designed to reduce their environmental impact at every step of creation. All paper and cardboard come from sustainably managed forest sources and an uncoated paper has been used to ensure it is fully recyclable. To reduce the amount of paper, boxes are equipped with handles to avoid using shopping bags. Larger items come in shopping bags and cotton covers without boxes.

Rustans Boxing Day sale until Jan. 15

THE FESTIVITIES continue at Rustans Boxing Day sale runs until Jan. 15,  with marked down prices of up to 50%. Customers can get their hands on stylish pieces whether in the stores in Metro Manila and Cebu, through Personal Shopper on Call, or online via rustans.com. In addition, until Jan. 31, all credit card holders can take advantage of 0% interest installment up to 12 months. Shopping from home is made easier through Rustan’s Personal Shopper On Call. Get expert one-on-one assistance from trained personnel who are dedicated to help patrons do the shopping for them — just dial one universal number, 0917-111-1952.

US blocks palm oil imports from Malaysia’s Sime Darby over forced labor allegations

KUALA LUMPUR — The United States has banned imports of palm oil from Malaysian producer Sime Darby Plantation from Wednesday over allegations of forced labor during production, the US Customs and Border Protection (CBP) said.

The ban on Sime Darby, the world’s largest palm oil company by land size and seen as a leader in sustainably produced palm oil, is another blow to an industry that has faced mounting allegations of labor and human rights abuses.

Palm oil, used in everything from food to cosmetics to biodiesel, is mainly produced in Malaysia and Indonesia, where the industry has been blamed for wide-scale deforestation and habitat destruction.

The CBP said it had issued a ‘withhold release order’ on Sime Darby, which will allow it to detain shipments based on suspicion of forced labor involvement under longstanding US laws aimed at combating human rights abuses.

Sime Darby said it was reviewing the statement to better understand any potential impact, and would engage with the agency to address the concerns raised.

“The allegations made suggest a breach in the implementation of (Sime Darby’s) own strict policies,” it said on Thursday.

The company is committed to combating forced labor and has robust policies to protect workers’ rights, it said.

The CBP said the ban was based on a months-long investigation that suggested the presence of the International Labor Organization’s forced labor indicators at Sime Darby plantations.

“We do believe that there are some issues that are systemic across all of Sime Darby’s plantations,” Ana Hinojosa, executive director of CBP’s Trade Remedy Law Enforcement Directorate, told reporters.

The ban could be lifted if remedial action is taken. 

Sime Darby is the third Malaysian company to be slapped with a US ban this year over forced labor allegations, after FGV Holdings, another Malaysian palm oil producer, and latex glove producer Top Glove.

Malaysia relies on over 337,000 migrant workers from countries like Indonesia, India and Bangladesh to harvest palm fruit.

The CBP said the United States imported about $410 million worth of crude palm oil from Malaysia in the year to September 2020, accounting for just over 30% of total US palm oil purchases.

Sime Darby says its annual exports to the United States total about $5 million.

In July, Hong Kong-based anti-trafficking group Liberty Shared petitioned the CBP to ban Sime Darby products, citing evidence of labor abuse. Sime Darby said the allegations contradicted the group’s public commitments to responsible agriculture and human rights. — Reuters

How big is the Philippines’ COVID-19 response package relative to its neighbors?

How big is the Philippines’ COVID-19 response package relative to its neighbors?

How PSEi member stocks performed — December 29, 2020

Here’s a quick glance at how PSEi stocks fared on Tuesday, December 29, 2020.


Peso to weaken this year as trade recovers

THE PESO could weaken against the greenback in 2021 to push it back to the P50-per-dollar level as global trade gradually recovers amid easing restriction measures.

The local unit closed at P48.023 per dollar on Dec. 29 — the last trading day of 2020 — appreciating by P2.612 from its P50.635 finish on Dec. 27, 2019.

The peso’s stronger finish towards the end of the year was on the back of a narrower trade deficit, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“Relatively slower recovery in imports that resulted in a narrower trade deficit led to the relatively stronger peso in recent months,” Mr. Ricafort said in a text message.

Data from the Philippine Statistics Authority showed the country’s trade deficit narrowed to $1.777 billion in October from $1.783 billion in September and the $3.573-billion gap logged a year ago amid a decline in inbound shipments.

Aside from falling imports, support from the Bangko Sentral ng Pilipinas (BSP) kept the local unit around the P48-per-dollar level, said UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

“The lack of dollar demand has contributed to the peso strength and will likely continue because of the lingering threat of the coronavirus,” Mr. Asuncion said in a text message.

For this week, dollar demand could pick up as firms restock and amid some signs of recovery in economic activity. Mr. Asuncion said this could translate to downward pressure on the peso and gave a forecast range of P48.02 to P48.06 versus the dollar for the week.

Meanwhile, Mr. Ricafort said the market will be on the lookout for key data releases on inflation and manufacturing. For this week, he expects the local unit to move within P47.95 to P48.09 versus the dollar.

Inflation rose by 3.3% in November, quicker than the 2.5% in October due to the impact of recent calamities. A BusinessWorld poll of 13 economists yielded a median estimate of 3.2% for December, with analysts saying the impact of the typhoons on commodity prices have already subsided.

The Philippine Statistics Authority will release December inflation data on Jan. 5.

Throughout the year, market sentiment on the peso will depend on the pace of the pickup in imports as well as developments related to the pandemic and economic recovery prospects.

For 2021, Mr. Ricafort gave a forecast range of P48-P49 versus the dollar while Mr. Asuncion expects the peso to trade within the P48 to P50 level. — L.W.T. Noble

Shares likely to climb on vaccine developments

By Revin Mikhael D. Ochave, Reporter

STOCKS are expected to climb during the first trading week of 2021 as investor sentiment is seen to improve on the developments on coronavirus disease 2019 (COVID-19) vaccines over the holiday break.

The bellwether Philippine Stock Exchange index (PSEi) ended at 7,139.71 on Tuesday, the last trading day of 2020, higher by 17.46 points or 0.24% from the previous trading session.

On a week on week basis, the main index fell 0.9% or 64.67 points, continuing its decline.

Average value turnover fell 13.2% week on week to P9.63 billion, while average net foreign selling eased 99.3% to P10.78 million.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said the local bourse may start the first week of trading this year on a good note as investors are projected to welcome recent positive COVID-19 vaccine news.

“To start the New Year, the market may inch up this week as investors reposition on certain issues as they come back from the long weekend,” Mr. Pangan said in a mobile phone message.

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the market’s performance will be dictated by news on the new COVID-19 strain.

The Philippines has prohibited the entry of foreign travellers from the United States (US) starting Jan. 3 after the new COVID-19 strain has been detected in the state of Florida.

The travel ban will last until Jan. 15 and covers passengers who have been to the US within 14 days before their arrival to the Philippines.

“Passengers from the US who will arrive before Jan. 3 will be allowed to enter the Philippines, but they must undergo a 14-day quarantine even if they had initially tested negative,” Reuters said.

The US joins the 19 other countries such as Denmark, Ireland, Japan, Australia, France, Germany, and Italy, among others, that were covered by the initial ban implemented by the Philippines on Dec. 29.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the local bourse may move sideways for the coming week as investors weigh their prospects for 2021.

“However, pandemic worries amplified by the new COVID-19 variant and its spread to other countries may continue to weigh on investor sentiment,” Mr. Tantiagco said.

Timson’s Mr. Pangan said the market’s area of support is seen at 7,000, while 7,300 seems to be the nearest resistance level.

For Mr. Tantiangco, the PSEi is projected to test its 7,150 to 7,200 resistance range.

“The market’s initial support is seen at its 50-day exponential moving average currently at 6,856.79. After this, its next support is seen at the 6,600 level,” Mr. Tantiangco said. — with Reuters

Duterte risks losing focus as elections near

By Gillian M. Cortez, Reporter

PHILIPPINE President Rodrigo R. Duterte risks losing focus on the country’s battle against the coronavirus as preparations for next year’s presidential elections get under way, analysts said.

“This administration is going to find it difficult trying to accomplish anything meaningful and substantial in 2021, as it builds up the war chest for the elections,” said Herman Joseph S. Kraft, an associate professor who heads the University of the Philippines (UP) Political Science department.

“There will be a lot of rhetoric on accomplishments — signed contracts and agreements perhaps — but not a lot on actual accomplishments,” he said in a Viber message.

Kingmaker Mr. Duterte must keep his focus on the pandemic or he might lose political capital and hurt the chances of his anointed presidential candidate.

“Dealing with COVID-19 and its impact on different aspects of Philippine society will be a huge part of how his whole administration will be judged,” Maria Ela L. Atienza, a political science professor from UP, said in an e-mailed reply to questions.

“The pandemic has affected many of the plans and promises of the President that remain unfulfilled,” she pointed out.

Mr. Duterte, who became President in 2016 and is barred by law from running for reelection, has a little more than a year in office. 

Among his landmark programs are his Build, Build, Build infrastructure campaign and a push for a shift to a federal form of government as he tries to give provinces outside Manila, the capital, an equal share in state revenue.

While a coronavirus-induced lockdown halted some road projects last year, the private contractors of the Skyway stage project, a segment of the North Luzon Expressway harbor link and the Tarlac-Pangasinan-La Union Expressway did finish the work last year. Several other road projects are expected to finish this year.

As far as federalism is concerned, proposals for “surgical” changes to the 1987 Constitution were pushed aside by the coronavirus crisis, Ms. Atienza said.

“The pandemic and the ensuing lockdowns have exposed areas long neglected but should have been prioritized by the government all along,” she said.

These include the country’s poor public health system, the lack of labor safeguards, inequality, the vulnerabilities of migrant Filipino workers and state neglect of the agriculture sector, Ms. Atienza said.

Social welfare services and security reforms remain weak and government corruption continues, she pointed out.

Crime and illegal drugs remain rampant and Mr. Duterte’s promise of an independent foreign policy and constitutional reforms have yet to really take shape, she added.

Despite all these, the President would probably keep his popularity, Mr. Kraft said.

“The President has displayed a Reaganesque quality of having teflon-like characteristics,” he said.

“None of the scandals have really stuck, and he has personally retained his popularity even as his administration has suffered from clumsy to outrightly incompetent handling of issues,” he added.

Ms. Atienza noted that while Mr. Duterte was unlikely to fulfill all his campaign promises, he should try to institutionalize mechanisms to make his anointed one  succeed.

“He and his administration should negotiate with allies, supporters and other crucial groups if they want some more laws to be passed and projects to be implemented given the limited time,” she said.

Mr. Kraft said Mr. Duterte’s proper handling of the pandemic could become his legacy. But it could also work against him especially if the government fails to contain a new strain of the coronavirus that was first detected in Britain, he added.

“His problem is that science does not allow him to follow through on the politics,” he said. “This seems to be the story of the Duterte administration and this pandemic — they can’t manipulate the discourse to favor their politics,” he added.