Facebook Instagram Linkedin X Youtube
Home Blog Page 8688

Babies born to COVID-19 mothers have antibodies, Singapore study finds

SINGAPORE — All five babies born to women with COVID-19 infection during a study in Singapore have had antibodies against the virus, although the researchers said it is not yet clear what level of protection this may offer.

The findings from a study of 16 women released on Friday also found that most were mildly infected, while more severe reactions occurred in older women with a high body mass index—a trend that is mirrored in the general population.

Of the five who had delivered their babies by the time the study was published, all had antibodies, according to the Singapore Obstetrics and Gynaecology Research Network.

The number of antibodies in the babies varied, and was higher among those whose mothers’ had been infected nearer to the time of delivery, the researchers said. Further monitoring is required to see whether the antibodies will decline as the babies get older, they added. — Reuters

Microsoft says it found malicious software in its systems

SAN FRANCISCO — Microsoft Corp. said on Thursday it found malicious software in its systems related to a massive hacking campaign disclosed by US officials this week, adding a top technology target to a growing list of attacked government agencies.

The Redmond, Washington, company is a user of Orion, the widely deployed networking management software from SolarWinds Corp., which was used in the suspected Russian attacks on vital US agencies and others.

Microsoft also had its own products leveraged to attack victims, said people familiar with the matter.

“Like other SolarWinds customers, we have been actively looking for indicators of this actor and can confirm that we detected malicious SolarWinds binaries in our environment, which we isolated and removed,” a Microsoft spokesperson said, adding that the company had found “no indications that our systems were used to attack others.”

One of the people familiar with the hacking spree said the hackers made use of Microsoft cloud offerings while avoiding Microsoft’s corporate infrastructure.

Microsoft did not immediately respond to questions about the technique.

Still, another person familiar with the matter said the Department of Homeland Security (DHS) does not believe Microsoft was a key avenue of fresh infection.

Both Microsoft and the DHS, which earlier on Thursday said the hackers used multiple methods of entry, are continuing to investigate.

The Federal Bureau of Investigation (FBI) and other agencies have scheduled a classified briefing for members of Congress Friday.

The US Energy Department also said it has evidence hackers gained access to its networks as part of the campaign. Politico had earlier reported the National Nuclear Security Administration (NNSA), which manages the country’s nuclear weapons stockpile, was targeted.

An Energy Department spokeswoman said malware “has been isolated to business networks only” and has not impacted US national security, including the NNSA.

The DHS said in a bulletin on Thursday the hackers had used other techniques besides corrupting updates of network management software by SolarWinds which is used by hundreds of thousands of companies and government agencies.

CISA urged investigators not to assume their organizations were safe if they did not use recent versions of the SolarWinds software, while also pointing out that the hackers did not exploit every network they gained access too.

CISA said it was continuing to analyze the other avenues used by the attackers. So far, the hackers are known to have at least monitored email or other data within the US departments of Defense, State, Treasury, Homeland Security, and Commerce.

As many as 18,000 Orion customers downloaded the updates that contained a back door, SolarWinds has said. Since the campaign was discovered, software companies have cut off communication from those back doors to the computers maintained by the hackers.

But the attackers might have installed additional ways of maintaining access, CISA said, in what some have called the biggest hack in a decade.

The Department of Justice, FBI, and Defense Department, among others, have moved routine communication onto classified networks that are believed not to have been breached, according to two people briefed on the measures. They are assuming that the non-classified networks have been accessed, the people said.

CISA and private companies including FireEye Inc, which was the first to discover and reveal it had been hacked, have released a series of clues for organizations to look for to see if they have been hit.

But the attackers are very careful and have deleted logs, or electronic footprints, or which files they have accessed, security experts said. That makes it hard to know what has been taken.

Some major companies have said they have “no evidence” that they were penetrated, but in some cases that may only be because the evidence was removed.

In most networks, the attackers would also have been able to create false data, but so far it appears they were interested only in obtaining real data, people tracking the probes said.

Meanwhile, members of Congress are demanding more information about what may have been taken and how, along with who was behind it. The House Homeland Security Committee and Oversight Committee announced an investigation Thursday, while senators pressed to learn whether individual tax information was obtained.

In a statement, President-elect Joseph R. Biden said he would “elevate cybersecurity as an imperative across the government” and “disrupt and deter our adversaries” from undertaking such major hacks. — Joseph Menn/Reuters

Philippines can secure up to 25 million doses of Moderna, Arcturus vaccines — ambassador

MANILA (UPDATE) – The Philippines will be able to secure between four to 25 million doses of COVID-19 vaccines from Moderna Inc and Arcturus Therapeutics Holdings Inc , the Southeast Asia country’s ambassador to Washington said on Friday.

The U.S. companies were ready to supply the vaccines from the third quarter of 2021, Philippine Ambassador Jose Manuel Romualdez said in a statement, if his government found their proposals acceptable.

“We are hoping our government will consider the promising candidates of Moderna and Arcturus for inclusion in our country’s pool of anti-COVID-19 vaccines,” Romualdez said.

The U.S. Food and Drug Administration is expected to grant Moderna emergency use authorization soon. Arcturus expects to start distributing its vaccine in the first quarter of next year after early stage trials showed promising results.

Moderna and Arcturus did not immediately respond to a request for comment.

At a news conference, Philippine Health Ministry Undersecretary Maria Rosario Vergeire welcomed signs of progress in the negotiations but said each vaccine candidate would need to get regulatory approval to ensure safety and efficacy.

The Philippines plans to buy 25 million doses of a vaccine supplied by China’s Sinovac Biotech for delivery by March. In addition, the private sector agreed last month to acquire 2.6 million shots of a vaccine developed by AstraZeneca in the nation’s first supply deal for a coronavirus vaccine.

The Southeast Asian nation had missed out on an opportunity to buy 10 million doses of Pfizer’s vaccine for delivery in January, Romualdez said.

With 454,447 infections and 8,850 deaths, the Philippines has reported the second-highest number of COVID-19 infections and casualties in Southeast Asia, next to Indonesia. — Reuters

Zumba, Calm, and volunteerism add to GE’s support program for mental health

A decade-old support program at GE Healthcare Philippines proved its value over the pandemic and the recent string of natural disasters. “The program is well utilized across the organization, including in the Philippines,” said Michaelangelo Chebat, GE Healthcare Philippines country manager. “I know of employees who have used it during COVID-19 and when their families were impacted by local typhoons.”

GE’s Employee Assistance Program provides free and confidential guidance and specialist support on issues such as family conflict, substance use disorder, and depression. 

To augment the program, the global medical technologies provider formed a committee to organize activities that help its nearly 100-strong workforce stay mentally strong and motivated. These initiatives include daily check-ins, weekly committee calls for cross-business alignment, regular e-mail on safety precautions, employee care packages (a mix of savory and sweet food items in keeping with the holiday theme), learning sessions on how to make work-from-home setups productive, and virtual group options like Zumba classes, and two-way dialogues on Viber group chats. 

Filipino employees have recently taken to sending in photos of their new pandemic hobbies like gardening and cooking. Company-wide challenges encourage employees to commit to a specific health action, with annual subscriptions to the meditation app Calm as additional motivation.

Crotonville, GE’s global leadership institute, has regional outposts that organize location-specific development courses to build employees’ technical and functional skills. Affinity networks such as the Women’s Network and Diversity Network are likewise available for those who wish to connect to other GE employees with common backgrounds, experiences, and interests.

The GE Volunteers Network, in particular, is for those who wish to give back in places where the company does business, or where help is needed the most. Earlier this year, a group of Filipino volunteers distributed food packs to medical frontliners in Cardinal Santos Hospital, Philippine Heart Center, the National Kidney & Transplant Institute, Muntinlupa Hospital, and Pasig General Hospital.

“Talent is critical because our people are the most important assets to GE Healthcare’s business, which is to improve and save lives,” said Mr. Chebat. “How our employees are feeling emotionally and mentally, and how connected they feel to the company’s purpose, will reflect in their interactions with our customers and patients.” —  Patricia B. Mirasol

Globe sweeps all award categories in 2019 ASEAN Corporate Governance Scorecard

Globe bagged coveted slots in all award categories of the 2019 ASEAN Corporate Governance Scorecard (ACGS) and is the only telecom company to do so among the listed firms in the six participating countries, namely Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines.

ACGS was introduced in 2011 in recognition of the corporate governance achievements of publicly-listed companies in the region, with the first inaugural awarding ceremony held in 2015. Globe has been consistently in the list since then.

This time, Globe was given top recognition in the following categories: Top 20 ASEAN Publicly Listed Companies, Top 3 Publicly Listed Companies per Country (Philippines), and ASEAN Asset Class Publicly Listed Companies.  Globe is accompanied by Ayala Land, Inc. in all three categories, with Ayala Corporation and Bank of the Philippine Islands joining in the roster for the ASEAN Asset Class category.

“We are honored to be recognized for our efforts.  This is a testament to how serious Globe is in implementing and maintaining a proactive corporate governance culture alongside the aggressive business environment.  Despite potential uncertainties ahead, we look forward to upholding our commitment to the practice of good corporate governance to continuously deliver a holistic value for all our stakeholders,” said Marisalve Ciocson-Co, Globe SVP for Law and Compliance, Chief Compliance Officer, and Assistant Corporate Secretary.

The ACGS is a joint effort of the ASEAN Capital Markets Forum (ACMF) in partnership with the Asian Development Bank (ADB) aimed at promoting integration within the region and the ASEAN as an investment asset class. The ACGS is composed of two levels that focus on key corporate governance principles including rights and equitable treatment of shareholders, role of stakeholders, disclosure, and transparency, and responsibilities of the Board, with bonus and penalty items.

Assessment of the top ASEAN publicly-listed companies based on market capitalization were conducted using a Scorecard supported by rigorous methodology and benchmarked against international principles and best practices.

Globe’s dedication to corporate governance was also repeatedly acknowledged by domestic and international award-giving bodies, the latest of which came from Alpha Southeast Asia Magazine’s 10th Annual Poll for Institutional Investor Corporate Awards, and London’s Ethical Boardroom where it received the  “Best Corporate Governance – Telecoms – Asia 2019” award.

Globe is committed to upholding the 10 UNGC principles and the UN Sustainable Development Goals (UNSDGs). The company has also made it to the FTSE4Good Index Series for the fifth consecutive year, as well as received an “A” rating from MSCI ESG, proving its dedication to Environmental, Social, and Governance (ESG) practices that help shape society’s sustainable future.

For more information, visit www.globe.com.ph.

UnionBank named ‘Bank of the Year 2020’ in PH

Union Bank of the Philippines (UnionBank) was declared the “Bank of the Year 2020” in the Philippines by The Banker, regarded as the industry standard for global banking excellence.

The prestigious award is given to the institution that has “outshone its peers in terms of performance, strategic initiatives and response to the COVID-19 pandemic.” In a statement, The Banker recognized UnionBank’s“bold efforts to push for greater financial inclusion through its fintech and corporate venture capital arm named UBX.”

UnionBank was lauded for its spinoff UBX’s focus on the development of four new ventures, namely i2i, SeekCap, Bux, and Sentro. In partnership with the Rural Bankers Association of the Philippines, i2i mainly used blockchain technology to bring unbanked communities in rural areas to digital banking.

Meanwhile, the other three ventures were focused on assisting micro, small and medium enterprises (MSMEs) to grow and thrive amid the pandemic.

SeekCap, for example, is an online lending marketplace which supports MSMEs by providing them with sources of credit without having to fill in lengthy loan applications.

To help MSMEs convert their brick-and-mortar shops to online ones, UBX also supported payment gateway Bux and digital shop builder Sentro. Bux can be integrated into an online seller’s platform while Sentro helps entrepreneurs set their online shops. Sentro has built-in protections for both the sellers and buyer and logistics services.

The Bank upped its game in providing the best digital banking experience through the enhancements of its mobile app, UnionBank Online. Digital banking customers are now able to move between devices more easily as it has combined its two previously separate desktop and mobile banking portals.

It is also upgraded with features like QR code payments, real-time digital account opening and digital cheque deposits.

To date, UnionBank Online has enabled billions worth of fund transfers, bills payments and load purchases every month.

The onset of the Covid-19 pandemic highlighted how people in rural areas faced difficulties in obtaining cash due to low numbers of branches and ATMs. In response, UnionBank established a scheme to allow app users to send money for collection from remittance counters. The scheme was used in particular by urban workers sending money home to their families.

In his acceptance speech, UnionBank President and CEO Edwin R. Bautista said, “This is truly a singular honor for our team at UnionBank. This award is for all UnionBanker who kept the faith in our digital transformation four years ago, who believed in what we can achieve together, and who today are leading the charge.  We may look like a different bank today, but our purpose remains the same: to elevate lives and fulfill dreams.

With a challenge as massive as the COVID pandemic, technology is just a means to an end and not an end in itself.  Ultimately, it is our UnionBank DNA that is now ‘Digital to the Core’ that is pulling us through.  We remain steadfast in our commitment to ‘Tech Up, Pilipinas’ and enable inclusive prosperity making sure that NO ONE, not our customers, not our colleagues, not our countrymen, GETS LEFT BEHIND,” Bautista said.

To know more, visit UnionBank’s official pages at https://www.unionbankph.com/ and UBX at https://ubx.ph/

Standard Chartered Bank distributes relief support to flood victims

Typhoon Ulysses that struck the country last month brought heavy rains in Metro Manila and Central Luzon causing widepread flooding particularly in the eastern part of the national capital region, Cagayan Valley and Isabela. The entire landmass of Luzon was placed under state of calamity with estimated damages reaching more than Php20 billion. 

Standard Chartered Bank (SCB), the oldest international bank in the country, has made a Php 1 Million donation to non-profit Philippine Business for Social Progress (PBSP) through the initiative “United for Luzon”for relief support to severely flooded areas particularly Montalban, Marikina, Cainta and Cagayan Valley. The donation amount will allow the bank to providefoodbagsgood for one week supply to 1,000 families in these areas.  

The bank, led by its Corporate Affairs, Brand and Marketing Head Mai Sangalang distributed relief packs recently in Marikina, Montalban Rodriguezand Cainta, Rizal. Relief distribution in Cagayan is scheduled this week.

“This year has been very challenging for all of us brought about by the global pandemic and natural disasters.The bank has responded quickly to give support in the wake of these trying timesby extending relief assistance to communities and individuals who suffered from the volcanic eruption, lockdowns, coronavirus, typhoons and severe flooding. This is our way of demonstrating solidarity and helping vulnerable sectors recover,” she said. 

Earlier this year, Standard Chartered also distributed thousands of relief bags to the displaced families of Taal Volcano eruption relocated in Sto. Tomas, Bauan and San Luis, Batangas.The bank also donated Php 12.5 Million to provide support to 10,000 families in vulnerable communities in Metro Manila affected by the lockdown through relief packs and more than 11,000 personal protective equipment to different hospitals in the country through PBSP’s Bayanihan Musikahan fundraising platform for COVID relief aid.

Hundreds of relief bags were distributed to severely flooded residents of Brgy San Andres, Cainta Rizal. In photo are: Standard Chartered Bank Corporate Affairs, Brand and Marketing Head Mai Sangalang (3rdfrom left) together with Councilor Felipe Sauro and other bank and LGU officials.

Relentless network upgrade results in improved speeds and QoS during 2H, says PLDT-Smart

Continuous investments in improving their fixed and wireless network and their customer support services have enabled the Philippines’ largest integrated telco PLDT and its wireless subsidiary Smart Communications, Inc. (Smart) to provide better speeds and quality of service to their customers in the second half of the year.

“The PLDT-Smart network expansion went full throttle this year, in response to the surge of demand for connectivity and data. It was not easy, but we managed to set all systems in motion to enable us to expand the reach and capacity of our fixed and wireless networks across the country amid the challenges brought about by the pandemic,” said Alfredo S. Panlilio, Smart Communications President and CEO and PLDT Chief Revenue Officer.

“We continue to invest in a superior network with better fiber systems, LTE, and most recently, 5G.  ​And we are working double-time on our nationwide expansion program, particularly fiber rollout and migration. Being able to help Filipinos navigate through challenges by giving them means to rebuild their lives definitely entrenches PLDT-Smart’s position in the life and future of our customers,” he added.

Network expansion

In 2020, PLDT and Smart further accelerated the rollout of their fixed and wireless networks to deliver better customer service. PLDT’s fiber infrastructure, the most extensive in the country, is now at more than 422,000 kilometers as of November.

This fiber infrastructure supports Smart’s mobile network, which now covers 94% of the population. As of November, Smart has also increased the number of its LTE and 3G base stations to over 58,000, while also rolling out an additional 313 5G base stations as it accelerates its 5G commercial services nationwide. Total homes passed is at 8.7 million for the same period.

To further improve coverage and connectivity, Smart is rolling out an additional 2,000 cell sites next year. Since the Anti-Red Tape Authority issued its Joint Memorandum Circular in August, Smart has secured over 1,600 permits to build more cell sites and accelerate the telco’s goal to improve customer experience across the country. These permits cover towers to be built in Metro Manila and in typhoon-impacted provinces like Albay, Aurora, Batangas, Bulacan, Cagayan, Camarines Sur, Cavite, Isabela, Laguna, Masbate, Quezon, Rizal, and Sorsogon, which were in the path of recent strong typhoons Rolly and Ulysses, to name a few.

Resilient network 

These investments also include efforts to make the network more resilient.

PLDT recently fired up its fiber-optic link to Catanduanes island, ensuring service resiliency in one of the country’s most typhoon-stricken provinces. This network upgrade came on the heels of Smart’s quick restoration of telco services in Catanduanes, the first telco firm to do so after super typhoon Rolly (international name: Goni) disrupted communications there last month.

PLDT is also laying down underground fiber optic cables in the Bicol region and in Samar province, which are frequented by strong typhoons, further making their digital infrastructure backbone more resilient.

Third-party studies

These network investments have resulted in performance levels that have been widely cited by third-party organizations like Ookla, Opensignal, and umlaut.

According to independent mobile analytics firm Opensignal’s latest Mobile Network Experience Report on the Philippines, Smart leads in mobile network experience, particularly in terms of 4G Availability, 4G Coverage Experience, Video Experience, and Download and Upload Speeds.

Earlier reports released this year by Opensignal also noted “impressive improvements” in mobile network experience in the Philippines since 2017 as Filipinos spent more time on 4G/LTE. Download Speed Experience in the country has also increased by around 80% between the fourth quarter of 2017 and the first quarter of 2020, with Smart consistently in the lead over the last two years.  In another study, Opensignal also noted improvements in mobile network experience across five regions: National Capital Region, North & Central Luzon, South Luzon, Visayas, and Mindanao between Q4 2018 and Q3 2020. The analysis looked at improvements in Video Experience, 4G Availability, Download Speed Experience, and Latency Experience on a regional level.

On the other hand, PLDT and Smart were also found to have the country’s fastest fixed and mobile internet networks based on analysis by Ookla, the global leader in internet testing and analysis. The results were based on tests taken with Speedtest® covering the first half of 2020. Previously, PLDT and Smart were also hailed by Ookla as the fastest fixed and mobile networks in the Philippines in 2018 and 2019.

“Based on our own internal data, Smart’s average download speeds nationwide have stayed ahead of competition this year. In Metro Manila, customers with devices with modern chipsets already experience average download speeds of 47 Mbps,” said Joachim Horn, PLDT chief technology and information advisor, adding that in cities like Cebu and Davao, Smart’s speeds on devices with modern chipsets are already at 33 Mbps and 37 Mbps, respectively, and that nationwide, this figure is at 35-37 Mbps.

Meanwhile, after consistently staying ahead of the competition, Smart posted a “good” score of 750 in umlaut’s benchmarking survey, breaching the 700-level for the first time in the third quarter of 2020, and is on track to reach the level of global tier 1 operator in two years.  According to Germany-based umlaut’s mobile wireless benchmark trend, Smart has consistently led by a large margin over its competitor, even as umlaut’s standards became tougher each year.

Beefing up customer support

PLDT and Smart are also beefing up their customer support services in response to the increased demand for internet connectivity. Although affected by pandemic restrictions, PLDT and Smart have made adjustments in their work processes and gradually scaled up their ability to build and repair. Network expansion continued despite pandemic conditions. When the quarantine restrictions eased up, manpower began to increase and PLDT-Smart stores reopened to serve more customers.

“Our goal is to keep on challenging how we work so we continue to improve in finding ways to make things easier and simpler for our customers. Our direction is to go digital — thus the drive to enable our customers to do more online: get their bills, pay their bills, get help. This is also a needed shift given the global situation today where customers must stay safe in their homes,” said PLDT-Smart First Vice President and Commercial Operations Head Marco Borlongan, adding that most stores have re-opened, network teams are working to fulfill installation and repair requests, and the call center is back to serving customers 24/7.

The new work-and-study-from-home arrangements have resulted in an increase in the volume of calls that PLDT and Smart receive daily, including plan upgrades, as well as repairs and billing concerns, according to PLDT-Smart Vice President for Consumer Care Chiqui Abad, who added that resolution of customer issues depends on the concern. Product or billing-related queries are generally resolved at point of interaction, while some repair-related concerns may need a technician to be dispatched to resolve the issue and thus may take longer. PLDT said its network service teams have been able to steadily ramp up the company’s installation capacity to meet the continuously growing demands, whereas customer support services are also now operational, including its call center, the PLDT Smart app, and a self-service portal called myHome.

“We have also added new channels, like an SMS channel, and are strengthening our digital channels, so customers can have other ways of reaching us aside from 171,” Abad said.

These initiatives form part of PLDT’s investments in capital expenditures, which have totaled Php 432 billion from 2011 to September 2020. PLDT’s expansion efforts and investments helped the Group cope with sustained growth in data traffic when COVID-19 community quarantines commenced in March. PLDT is anticipating capex of at least P70 billion for 2020.

 

BSP holds key interest rate steady

The Monetary Board said it has “observed early indications of improved mobility and sentiment” in the country despite the pandemic. — PHILIPPINE STAR/MICHAEL VARCAS

By Luz Wendy T. Noble, Reporter

THE BANGKO Sentral ng Pilipinas (BSP) on Thursday kept its benchmark interest rate steady, a move widely expected amid the recent uptick in inflation alongside some signs of economic recovery.

In its seventh and final policy-setting meeting for the year, the Monetary Board (MB) maintained the BSP’s overnight reverse repurchase, lending and deposit facilities at all-time lows of 2%, 2.5%, and 1.5%, respectively.

“[T]he MB is of the view that monetary policy settings remain appropriate. The MB believes that an accommodative monetary policy stance, together with sustained fiscal initiatives to ensure public welfare, should quicken the economy’s transition toward a sustainable recovery,” BSP Governor Benjamin E. Diokno said in an online briefing on Thursday.

The continued benign inflation was among key considerations for the decision, Mr. Diokno said. Noting the recent uptick in food prices was “transitory,” he said the future inflation trajectory will remain within the 2-4% target band set by the government.

The BSP chief said the rollout of coronavirus disease 2019 (COVID-19) vaccines in other countries has boosted market confidence, “supporting improved prospects for global growth.” However, the optimism is tempered by the strict lockdowns implemented in countries experiencing a fresh wave of COVID-19 infections.

“On the domestic front, the MB also observed early indications of improved mobility and sentiment. While recent natural calamities could pose strong headwinds to growth, the further easing of quarantine measures should help facilitate the recovery of the economy in the coming months,” Mr. Diokno said.

The central bank has cut rates by a cumulative 200 basis points (bps) this year, the latest of which was the 25-bp reduction during its November meeting.

A BusinessWorld poll last week showed all 15 analysts expected the BSP to hold rates during Thursday’s meeting.

INFLATION
Meanwhile, the BSP upgraded its average inflation forecast  to 2.6% (from 2.5%) in 2020 and 3.2% (from 2.7%) in 2021.

“The main factors that went into that revision — one is the increase in global crude oil prices,” BSP Deputy Governor Francisco G. Dakila, Jr. said in the same briefing.

“The second is the supply side, the pressures on the food front, and that is something that we see when we look at the November inflation outturn,” Mr. Dakila added.

The consumer price index rose by 3.3% in November, the fastest in 21 months, mainly on the back of the a quicker increase in food prices as a string of strong typhoons hit Luzon.

On the other hand, the BSP’s inflation outlook for 2022 was retained at 2.9%.

Going into 2021, Mr. Dakila said the country is already seeing some signs of early recovery in domestic activity, although there remained downside risks for domestic demand.

“This emphasizes the need for continued policy support from the BSP, and this support should continue to be in place until the economic recovery gets underway,” Mr. Dakila said.

Mr. Dakila is also bullish that “continued fiscal and monetary policy support will spur borrowing activity in the coming year,” given easing measures from the monetary side tend to work with a lag in the banking sector.

Lending growth in October stood at 1.9%, its slowest in 13 years amid tighter credit standards by banks and low consumer confidence. This, despite the 200 bps worth of rate cuts during the year.

Alex Holmes, an economist at Capital Economics, said economic growth in the next quarters will likely continue to disappoint.

“With the virus still not under control, restrictions will need to remain in place for longer, which will further hold back the recovery. Promising news on vaccines looks unlikely to quickly change the situation,” Mr. Holmes said in a note.

The Health department reported 454,447 COVID-19 infections as of Thursday, warning there may be a spike in cases after the holiday season.

Mr. Holmes noted the weak recovery trajectory will be reason enough for another round of easing in 2021.

“While higher oil price inflation will push up the headline rate early next year, the weakness of the economy will keep underlying price pressures subdued and inflation should stay within the BSP’s 2-4% target band,” he added.

On the other hand, a continued spike in inflation paired with faster economic recovery could make the BSP “less” accommodative in 2021, said Security Bank Corp. Chief Economist Robert Dan J. Roces.

“The BSP will be mindful that real policy rates have turned substantially negative and the effects this could have to both financial system and price stability,” Mr. Roces said in a Viber message.

Revenue index’s slump continues in 3rd quarter

Companies continued to see a decline in revenues in the third quarter, even as the government started loosening lockdown restrictions. — REUTERS

By Lourdes O. Pilar, Researcher

GROSS REVENUE generated by firms continued to decline in the third quarter, albeit at a slower pace compared with the plunge seen in the second quarter, as lockdown restrictions slowly eased amid the pandemic, the Philippine Statistics Authority (PSA) reported on Thursday.

Data from the PSA’s Quarterly Economic Indices report showed the total gross revenue index (GRI) slumped by 13.1% year on year in the third quarter. This marked an improvement from the record-high contraction of 26.4% in the second quarter but was a reversal of the 7.8% growth in the third quarter of 2019.

Real estate posted the largest decline during the quarter at 39.2%, followed by other services at -32.9% and transportation, storage and communication at -27.7%.

Other sectors that saw annual declines during the period were mining and quarrying (-13.6%); manufacturing (-11.6%); trade (-9.2%); electricity, gas and water supply (-6.3%).

Only financial and insurance activities posted growth during the quarter with 11.2%.

Meanwhile, the employment index fell by 10.7% in the third quarter compared with the 1.6% growth logged a year earlier.

Contractions in employment during the period were observed in the following sectors: other services (-18.8%); transportation, storage and communication (-17.8%); manufacturing (-6.0%); trade (-5.3%); construction (-3.7%); financial and insurance activities (-1.1%); real estate (-1.1%); and mining and quarrying (-0.5%).

Only the electricity, gas and water supply sector posted an expansion in employment at 2.6%.

Compensation likewise dropped by 10.1% in the third quarter from a 6.7% growth a year earlier, led by transportation, storage and communication (-25.1%); other services (-16.3%); manufacturing (-8.8%); real estate (-7.0%); trade (-5.8%); electricity, gas and water supply (-5.7%); and construction (-1.9%).

On a per-employee basis, compensation grew by 0.7% from five percent a year earlier using current prices. At constant 2016 prices, however, it shrank by 1.8% from a 3.3% growth last year.

“[T]here’s only one major reason for the negative trend in the Gross Revenue index, which is the continued quarantine measures put in place by the government,” said University of Asia and the Pacific (UA&P) Senior Economist Cid L. Terosa in an e-mail.

“Since business activities have not been fully opened, we shouldn’t expect gross revenues to match year-ago levels. Also, logistics issues have hampered the delivery and supply of goods to markets,” he added.

In a separate e-mail, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa noted the index’s improvement in the third quarter compared with the previous quarter, saying it reflects the similar trends observed in the gross domestic product (GDP) as the government gradually eased quarantine restrictions.

Latest government data show economic output declining by 11.5% in the third quarter compared with the annual declines of 0.7% and 16.9% in the first and second quarters, respectively. This brought the total contraction in GDP for the three quarters to 10%.

Mr. Mapa also pointed to the contraction seen in almost all sectors, particularly real estate where sales and rentals are “likely pressured to decline due to the sharp slowdown in economic activity.”

“Meanwhile, the gain of the financial sector reflects two things: 1) the financial industry acting as a lifeline to help distressed individuals and businesses during the time of recession, and 2) the extension of the loan moratorium which likely masked or simply delayed the negative impact of the economic downturn on banks’ profitability,” Mr. Mapa said, referring to the one-time 60-day loan moratorium provided under Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) following the initial debt relief under Bayanihan I (RA 11469).

“We do expect GRI to sustain its improvement, although it may very well remain in contraction, as the economy begins to open up, but ultimately [the index] will track the trends noted in GDP and we do not see a sharp and quick recovery as the Philippine economy is severely injured after the shock caused by the pandemic,” Mr. Mapa said.

Meanwhile, UA&P’s Mr. Terosa expects the index to “tread on negative ground” but with the downtrend being slower in the fourth quarter compared with the previous periods.

“Overall, the GRI for 2020 will show a double-digit slump,” he said.

PHL secures $900M in loans from World Bank

People use a boat to travel within Amulung municipality in Cagayan after heavy flooding due to typhoon Ulysses, Nov. 19. — PHILIPPINE STAR/MICHAEL VARCAS

THE WORLD BANK approved two loans worth $900 million (P43.3 billion) for projects aimed at supporting the country’s economic recovery through a wider adoption of digital technology and programs to alleviate poverty in rural communities.

In a statement on Thursday, the multilateral bank said its board of executive directors approved a $600-million (P29-billion) loan that will promote competitiveness and boost resilience to natural disasters, and a $300-million (P14.4-billion) loan to provide additional financing for the National Community Driven Development program.

The World Bank said the first loan will support “reforms to hasten the adoption of digital technologies, promote greater competition, and reduce the costs of doing business to revive more economic activities and jobs in the country.”

Among the reforms to be supported by the loan include the proposed indemnity insurance to protect public assets against natural disasters, the faster rollout of the national ID program, and the shift to digital transactions for Customs procedures.

“Reforms to improve digital infrastructure and speed up adoption of digital technologies will not only help the country’s efforts to recover from the impacts of the pandemic but will also boost its export competitiveness that is vital for creating more and better jobs in the future,” Ndiamé Diop, the country director for Brunei, Malaysia, the Philippines and Thailand of the World Bank, was quoted as saying in the statement.

Meanwhile, the $300-million loan will provide more funds for the Department of Social Welfare and Development’s existing program that assists local governments in implementing community-based projects in poor municipalities.

“Community-driven development approaches have shown to be effective in accelerating community reconstruction following disaster events and efficiently putting money for priority needs of communities around the world,” said Mr. Diop.

With the community-driven strategy, poor communities will be able to organize themselves, assess their situation, and come up with project proposals to address the issues, which will then be submitted for potential funding if deemed necessary.

Most of the community projects involve the provision of basic facilities such as the construction of roads, water systems, school buildings and day care centers. The program targets poor barangays and municipalities that have limited internal revenue allotment.

Amid a coronavirus pandemic, the communities can obtain funds for their isolation facilities, rehabilitation of water and sanitation facilities, construction or improvement of health stations, as well as the maintenance of these establishments.

The World Bank previously lent $479 million (P23 billion) for the program launched in February 2014.

Between 2014 and 2020, the program supported more than 28,000 completed community-based projects across 19,000 villages in 830 municipalities. The bank estimated this benefited 7.8 million families.

The multilateral bank extended loans to the Philippines worth $1.88 billion (P86.5 billion) as of Dec. 15 to boost the government’s pandemic containment efforts. — Beatrice M. Laforga

Delayed passage of CREATE seen to hurt MSMEs’ recovery

Small businesses will pay lower corporate income tax if the Corporate Recovery and Tax Incentives for Enterprises (CREATE) bill is passed into law. — PHILIPPINE STAR/EDD GUMBAN

THE DELAY in Congress’ approval of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act will likely hurt the recovery prospects of businesses affected by the coronavirus pandemic, a senator said.

This after the House of Representatives decided to convene the Bicameral Conference Committee in January to reconcile the conflicting provisions of the House and Senate versions of the CREATE bill.

“As your Chair of the Senate Committee on Ways and Means, I would like to put on record that this delay in the passage of CREATE this year is a huge setback,” Senator Pia S. Cayetano said during the plenary session, Wednesday evening.

“Precisely why we had daily deliberations to the extent of setting aside other very important bills is because we recognize the importance of this bill particularly for the MSMEs (micro, small, and medium enterprises) and the business sector,” Ms. Cayetano said.

Economic managers earlier said the timely passage of the CREATE bill, which cuts corporate income tax and rationalizes fiscal incentives, will help the economy bounce back faster from the recession.

Under the approved Senate Bill No. 1357, CREATE seeks to immediately cut the corporate income tax to 25% from 30% starting July 2020. It will also cut the corporate income tax for enterprises with net taxable income not exceeding P5 million and net assets worth up to P100 million to 20%. 

The CREATE bill will also allow exporters and domestic industries to enjoy four to seven years of income tax holiday. Exporters and critical domestic industries may continue to pay the 5% on gross income tax earned (GIE) in lieu of all local and national taxes for 10 years.

The Fiscal Incentives Review Board, to be led by the Finance and Trade departments, will be mandated to review incentives granted by investment promotion agencies. It will also have the authority to approve investments worth more than P1 billion.

“I’d like to point out that the reason the incentives portion was so important was because we wanted to plug the leakages and we wanted accountability,” Ms. Cayetano said.

“There is roughly P400 billion last recorded, I believe that was 2017, unaccounted for incentives that are being given away,” she added.

The House lawmakers have raised concerns on some key provisions of the Senate version of CREATE, such the revenue sharing scheme between the local government units and the National Government for registered businesses whose Special Corporate Income Tax lapsed. — C.A. Tadalan

1...8,6878,6888,689...14,238Page 8,688 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube