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WB sees fragile, uneven PHL recovery

THE WORLD BANK (WB) is expecting the Philippine economy to miss the government’s growth targets for the next two years, amid a slow and fragile recovery from the coronavirus pandemic.

In its latest Philippines Economic Update released Tuesday, the multilateral lender once again lowered its gross domestic product (GDP) forecast for the Philippines this year to an 8.1% contraction, from the 6.9% slump penciled in last October.

To compare, the Philippine government’s economic team expects GDP to shrink by 8.5-9.5% this year.

The World Bank said it cut growth projections for the Philippine economy after GDP fell by a faster-than- expected 11.5% in the third quarter, and the damage caused by strong typhoons in November. Damage to infrastructure and agriculture caused by the recent string of typhoons reached P24 billion or 0.1% of GDP, according to preliminary estimates.

The Washington-based multilateral lender also noted the recession could push 2.7 million more Filipinos into poverty by year’s end.

The World Bank noted the economy’s recovery “remains fragile, uneven, and incomplete,” as GDP shrank by 10% in the first three quarters of 2020 — the deepest contraction since the debt crisis in 1985.

For the next two years, the World Bank expects the economy to grow by 5.9% in 2021 (slightly higher than the previous forecast of 5.3%) and by 6% in 2022.

“These projections hinge on China’s early recovery, among the Philippines’ main export destinations, alongside the expected rebound in the global economy in 2021,” it said.

However, these medium-term projections are well below the revised 6.5-7.5% GDP target for 2021 and 8-10% goal for 2022 set by the Development Budget Coordination Committee (DBCC).

“On the DBCC assumptions, we do agree in the path of the recovery that the contraction will be deep in 2020 and the recovery is smooth, not a fast rebound but a gradual recovery given that containment measures will still be on for some months next year,” said Rong Qian, a senior economist at the World Bank, during a press conference on Tuesday.

The economy is seen to post a “moderate growth rebound” next year on base effects, a pickup in household consumption, and new jobs as more businesses are allowed to reopen.

“As the government ramps up its infrastructure spending in the fourth quarter of 2020 and even more in 2021, the construction sector will rebound contributing to job creation as well. Finally, pre-election activities in the run-up to the national election in 2022 will give an additional boost to demand as early as in the second half of 2021,” the World Bank said.

After an estimated 28.7% contraction this year, capital formation is expected to show a modest recovery in the next two years, the World Bank said.

“The expansion of private investments is likely to be dampened by weakness in the balance sheets of some large corporations that have been severely impacted by the pandemic. Moreover, the fall in foreign direct investment (10.9% contraction, year on year, in the first seven months of 2020), alongside the decline in bank lending for production activities (average of 1%, month on month, contraction between April and August), preclude full access to externally sourced funds to finance investment plans,” it said.

RISKS TO OUTLOOK
However, a potential resurgence of coronavirus disease 2019 (COVID-19) infections is the “most significant downside risk” to the growth outlook, the World Bank said.

“Should a second wave of infections materialize and remain unchecked, a reversal to strict lockdown measures would lead to the closure of more businesses and a spike in unemployment, lowering business and consumer confidence and investment levels, which could push the economy into a deeper recession in 2020 and lead to a more protracted recovery in the medium term,” it said.

While an early and successful rollout of the COVID-19 vaccine in the country will be an upside risk to the baseline growth projections, the World Bank does not expect the vaccine to be widely available very soon.

“The vaccine rollout will build confidence not only in the Philippines but also globally, which will also have an impact on the country’s path of recovery through external channels,” Ms. Qian said.

Natural disasters such as typhoons, earthquakes and floods also pose downside risks to the growth outlook.

“The extent of the impact of these natural events on the pace of economic recovery is highly uncertain as government post-disaster response is hampered by its effort to manage the pandemic,” the World Bank said.

POVERTY
Poverty in the Philippines is likely to rise in the near term due to the pandemic’s impact on household income and jobs.

“The COVID-19 pandemic threatens to partly reverse the gains made in poverty reduction and shared prosperity in recent years,” the World Bank said.

The country’s poverty rate, based on the lower-middle income threshold of the number of population living below $3.2 a day, is expected to increase to 22.6% this year from 20.5% last year. This is equivalent to 2.7 million more Filipinos slipping back into poverty, the World Bank said.

The poverty rate is seen to decline through 2022, as the impact of the pandemic subsides and economic activity returns to normal.

“To build a resilient recovery, the government needs to protect the poor, improve preparedness and post-disaster response effectiveness while continuing the effort to flatten the infection curve in the short term,” the World Bank said.

The impact of the recent natural disasters highlighted the importance of adopting better disaster risk reduction efforts and policies responsive to climate change, according to Ndiame Diop, World Bank’s country director for Brunei, Malaysia, Thailand and the Philippines.

“While the Philippines is financially resilient, stronger coordination, execution and implementation will help further improve social and physical resilience to frequent shocks,” he said.

The World Bank estimates the country suffers an average of $3.5 billion (P168.28 billion) in asset losses or around 1.1% of GDP each year due to typhoons and earthquakes. — Beatrice M. Laforga

Telco firms improving quality of signal, service

THE PALACE SAID telecommunication firms must improve their services further to put themselves at par with the connection quality in other countries. — BW FILE PHOTO

THERE IS A long way to go for telecommunications firms to put their services at par with those in our Asian neighbors, the Palace said, despite improvements made to boost signal quality amid the coronavirus pandemic.

Palace Spokesperson Harry L. Roque said in a briefing on Tuesday that despite steps made by local companies to improve their services, the goal to give the “best” to the Filipinos has yet to be attained by the main telecommunication players.

This is after National Telecommunication Commission (NTC) Commissioner Gamaliel A. Cordoba said the Philippines ranked 32nd in fixed broadband and 34th in mobile broadband in the Asian region.

“What our countrymen want is not only for Globe and Smart’s services to improve. What our countrymen want is for services to be world-class. Let’s be honest but at number 34 in Asia, I don’t think we are world-class,” Mr. Roque said.

Mr. Cordoba said services and prices are expected to be better for consumers once the third telco firm Dito Telecommunity Corp. starts commercial operations next year as competition will make current players step up their game.

“Competition will drive the services to improve and drive prices to go down,” he said in the same briefing.

On Tuesday, telecommunication providers Globe Telecom, Inc., Smart Communications, Inc., Dito Telecommunity, and Converge ICT Solutions, Inc. all gave updates on their services after the Palace last week criticized the companies for their services despite the faster cell tower application process mandated by President Rodrigo R. Duterte.

Smart President and CEO Alfred S. Panlilio said a lot of work needs to be done “if we really want to improve our coverage.” This includes upgrading its fiber services, he said.

“What we really want is to elevate the Philippines to global standards,” he said in the same briefing. He said that in August, the company began to migrate its legacy DSL copper subscribers to fiber.

Globe President and CEO Ernest L. Cu said Mr. Duterte’s order to hasten the process for building cell towers allowed the company to “exceed its rollout targets for the year” despite lockdown measures.

“We will be able to make our target of 1,300 additional sites for the year,” Mr. Cu said.

Dito Telecommunity Spokesperson Adel A. Tamano said the company has built about 1,900 cell towers, with its 5G services already in place ahead of its March 2021 commercial rollout.

“We have a government commitment to have 84% coverage by our fifth year so those underserved areas will be met… but internally we are going for 90% within five years,” he said.

Converge ICT Solutions Chief Operating Officer Jesus C. Romero said the company has added 3.5 million ports to its network this year.

“We plan to add more for 2021. That’s an additional 1.8 million, bringing us to 5.3 million ports nationwide,” Mr. Romero said.

He added that Converge is building its domestic backbone from Aparri to General Santos. While the Luzon area is already operating, it is also looking to serve the Visayas and Mindanao. — G.M. Cortez

LANDBANK to grant 2% interest subsidy

STATE-RUN Land Bank of the Philippines (LANDBANK) is extending a two-percent interest subsidy for new and existing loans obtained by local government units (LGUs) to encourage them to borrow more and finance their recovery programs.

LANDBANK said in a statement on Tuesday that the subsidy will be applied to the interest payments of loans incurred by municipal, city and provincial local governments until Dec. 31, 2022 or until the program’s P1-billion budget is used up.

The relief will be for loans under the bank’s Restoration and Invigoration package for a Self-sufficient Economy towards Upgrowth for LGUs or RISE UP lending program launched in July.

The loans for the projects have a fixed interest rate of four percent per annum until 2022, two percent of which will be subsidized by the National Government, while the remaining two percent will be charged to the borrower.

Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) allots P1 billion each to state-run banks LANDBANK and the Development Bank of the Philippines (DBP) to provide interest subsidies to LGUs. The measure aims to encourage LGUs to tap credit facilities if they need additional financing for their recovery programs.

For its part, the DBP said in an e-mail that the bank recently secured approval from the Finance department and its lending centers of its own interest rate subsidy program and it is now “preparing to formally implement the program,” with details to be released “soon.”

Under LANDBANK’s program, cities and provinces can get an up to P10 million in interest subsidies while municipalities can get a maximum of P5 million each. This cap will allow more LGUs to benefit from the program, it said.

“We strongly encourage our LGUs to make full use of credit facilities subsidized by the National Government to bankroll development projects in their respective localities. This will contribute greatly to reviving local economies and helping the country recover from the impact of the COVID-19 pandemic,” LANDBANK President and CEO Cecilia C. Borromeo said.

The lender said the subsidy will be available for LGU loans that will fund permanent working capital to buy agricultural products and other equipment needed. This is also applicable to loans obtained for the construction of facilities that will provide faster transportation of crops to the market such as market infrastructure development, establishment of so-called “mobile palengke,” setting up collection and buying stations and other similar facilities.

“LGUs with loans for programs and projects that provide basic and support services, social welfare and healthcare, and other infrastructure activities that aim to bring back confidence of the people and spur the local economy and businesses are also eligible to avail of the interest subsidy,” it added.

The credit facility allows LGUs to borrow with terms of up to 15 years before maturity, inclusive of an up to three years of grace period.

LANDBANK said it approved P52.27 billion worth of loans for 156 LGUs under the lending program as of Nov. 30, with around P383 million already released to three borrowers. — Beatrice M. Laforga

Student tilt finds hope in art

IT is wise to pay attention to each year’s list of winners of the Shell National Students Art Competition (NSAC). After all, the 53-year-old competition has attracted an impressive list of students who went on to become some of the biggest names in Philippine art, including National Artists Jose Joya, Federico Aguilar Alcuaz, Ang Kiukok, and Benedicto “BenCab” Cabrera. One of the winners of this year’s NSAC may just be a big name in the future.

The competition this year received over 1,500 entries from college students from all over the country. This was despite the contest being held online — although the awarding ceremony, also held online on Nov. 27, did show a video of the judges in masks scrutinizing the artworks. The judges included veteran artists Lex Kabigting, Jose Tence Ruiz, and Ross Capili for the Digital Fine Arts category; Edgar Fernandez, Renato Habulan, and Nemi Miranda for Watercolor; Jan Leeroy New, Toym Leon Imao, and Ram Mallari, Jr. for Sculpture; and Nestor Olarte Vinluan, Kenneth Esguerra, and Mark Justiniani for Oil and Acrylic.

Awards were given in those four categories: Digital Fine Arts, Sculpture, Watercolor, and Oil and Acrylic. The winning artists from each category bring home P60,000, a gold medal, and a plaque for First Prize. The college or department to which the student belongs also win a special grant worth P20,000 in support of faculty development. The second placers won P40,000, a silver medal, and a plaque; while third-placers won P30,000, a bronze medal, and a plaque.

The winners are as follows:

DIGITAL FINE ARTS
1st Place: Wala Akong Choice Kundi Magdasal — Rianne Abucejo, University of San Carlos

2nd Place: MHM (Mental Health) Matters — Bea Therese Musni, University of Rizal System, Angono Campus

3rd Place: One by One, Whole Body — Victor Nadera, University of the Philippines, Diliman

SCULPTURE
1st Place: Ayuda — Bea Cortez, University of the Philippines, Diliman

2nd Place: Pag-Asa Bldg. Room 50/50 — Jao Pelaez, Polytechnic University of the Philippines, Manila

3rd Place: Ako Ay May Lobo —  John Lirio, University of the East, Caloocan

WATERCOLOR
1st Place: Rep-Leksyon — Wendel Candawan, Eulogio “Amang” Rodriguez Institute of Science and Technology

2nd Place: Pag-usbong ng Binhi — Mark Lagrana, Polytechnic University of the Philippines, Manila

3rd Place: I Am Genuinely Optimistic — John Magbuhos, Polytechnic University of the Philippines, Manila

OIL AND ACRYLIC CATEGORY
1st Place: Foresight — John Santos, Bulacan State University

2nd Place: Back n Front — Ranier Bolivar, GK College

3rd Place: Plantito/Plantita —  Gyles Abac, University of the Philippines, Diliman

On how they chose the winners, judge Mr. Miranda said during the ceremony, “When you see a painting, you already see something different in it that makes it distinct from the rest of the artworks.” Meanwhile, Mr. New said, “Conceptually, it has to be more or less whole and complete in relation to the theme for this year’s competition.” The theme for this year was important considering 2020’s challenges: “Hope in Our Art.”

The winner for the Sculpture category, Ms. Cortez, said in a video during the awarding, “Advice ko (my advice) is don’t lose hope; do not lose the passion in your heart. Always continue making art for the people, promoting the common good.”

Mariles Gustilo, Director of the Ayala Museum (which houses the winning entries from 1952 to 2017) said, “Art is more than just a painting on the wall or a sculpture on display. It is about the dreams, hopes, and the heart of an artist.”

The winning works will be on display in a virtual gallery, the details of which will be forthcoming on Shell’s social media pages facebook.com/Shell. —  Joseph L. Garcia

Gov’t hikes budget for infrastructure program until 2022

The government is prioritizing infrastructure projects to drive economic recovery after the pandemic. — PHILIPPINE STAR/MICHAEL VARCAS

THE GOVERNMENT increased its target spending for infrastructure projects through 2022 to support economic recovery, documents from the Development Budget Coordination Committee (DBCC) showed.

At its Dec. 3 meeting, the DBCC set this year’s infrastructure budget at P824.9 billion, up 5% from the reduced target of P785.5 billion adopted in July.

Despite the increase, this is still 16.6% lower than the original P989-billion budget for infrastructure programs, before the coronavirus forced the government to implement budget cuts and redirect funds for its pandemic response.

This will bring the infrastructure budget’s share of gross domestic product (GDP) to 4.5%, from 4.2% of GDP based on the reduced budget in July.

The DBCC also raised the infrastructure spending targets for the next two years. For 2021, the government aims to spend P1.170 trillion for infrastructure projects, up 4% from the previous goal of P1.121 trillion.

In 2022, the infrastructure spending goal was raised by 13% to P1.154 trillion, from the original P1.018-trillion target.

As a percentage of the overall economic output, the higher infrastructure budget will account for 5.9% of 2021 GDP (from 5.4%), and 5.1% of 2022 GDP (from 4.5%).

Latest data showed government spending on infrastructure fell 33% to P153.5 billion in the third quarter, but exceeded the reduced target for the period by 12%.

Year to date, infrastructure spending dropped by an annual 16.5% to P451.5 billion, but it beat the P430.9-billion target for the nine-month period by 4.8%.

The increased infrastructure spending target for this year is part of the government’s catch up plan to lift fourth quarter GDP, said Budget Undersecretary Laura B. Pascua in a Viber message late Tuesday.

The pandemic-induced recession continued in the third quarter after the economy shrank by 11.5% year on year, bringing the contraction in nine-month GDP at 10%.

“The 2021 (increased target) assumes the extension of the validity of the 2020 appropriations up to December 2021 and the Bayanihan II up to June 2021. The 2022 is based on the additional revenues coming in courtesy of DoF (Department of Finance (DoF),” she added.

The DBCC document noted that the revised infrastructure program can still be updated.

The estimates cover disbursements from the National Government’s budget on infrastructure, the infrastructure subsidy or equity given to state-owned firms, and transfers to local governments for their infrastructure projects.

The amounts include payables for those three years as well as the outstanding obligations incurred by agencies in the previous years.

Increased spending on infrastructure forms part of the country’s stimulus program to help the economy bounce back from the pandemic-induced recession.

The DBCC sees the economy contracting by up to 9.5% this year, before posting 6.5-7.5% growth next year and 8-10% growth in 2022.

Economic managers raised the projected government revenues and disbursements for this year, 2021 and 2022, after state collecting agencies — the Bureaus of Internal Revenue (BIR) and Customs (BoC) — exceeded their downgraded revenue targets since July.

Disbursements for this year are expected to hit P4.23 trillion (equivalent to 23.3% of GDP), 11.5% higher than in 2019, but lower than the P4.335 trillion projected in July.

Finance Secretary Carlos G. Dominguez III had said they want to extend the validity of this year’s budget to allow agencies to use unspent funds another stimulus package next year.

Projected revenue collections for the year were increased to P2.85 trillion (equivalent to 15.7% of GDP), from the previous target of P2.52 trillion.

For the next two years, estimated spending was hiked by four percent and six percent respectively to P4.662 trillion for 2021 (from P4.467 trillion, previously) and to P4.955 trillion for 2022 (from P4.677).

Economic managers have proposed a bigger, P5.024-trillion cash-based budget for 2022, equivalent to 22.2% of GDP which is 11.5% higher than the proposed P4.5-trillion spending plan next year.

“The proposed 2022 national budget will continue to prioritize funding for health-related responses and measures that will help accelerate economic growth,” the DBCC said in a joint statement during its meeting last week. — Beatrice M. Laforga

CTA denies NDC’s VAT refund claim for lack of merit

THE COURT OF Tax Appeals (CTA) denied for lack of merit the tax refund claim of the National Development Co. (NDC) over its alleged overpayment of value-added tax (VAT) worth P42.6 million.

In an 11-page decision dated Nov. 26, the tax court’s third division said the government-owned and -controlled corporation failed to present proof of its actual input VAT.

The court said while the petitioner presented a schedule of input VAT, it does not sufficiently prove actual input VAT incurred by the company.

Other evidence presented include original and amended VAT returns, certificates of the tax withheld showing withholding of the 5%, and a letter to the Bureau of Internal Revenue (BIR) on its administrative claim for refund and proof of payment of the VAT returns, the court said.

The CTA said the necessary documents to prove actual input VAT are VAT invoices and/or VAT receipts from the purchases of goods, properties, and services during the claimed period under the Tax Code and Revenue Regulations No. 16-2005.

“Unfortunately, none can be found in the records of the case to support petitioner’s cause,” the ruling read. “Without proof on the actual input VAT incurred by petitioner, there is no way for this Court to determine if an actual overpayment of VAT occurred in the case at bar arising from petitioner’s failure to utilize the standard input VAT of 7% on its sales to the government.”

The court said NDC is duty-bound to prove its entitlement for refund, including the actual input VAT for the claimed period.

“In the absence of such proof, this Court has no other recourse but to deny its claim for refund of erroneously paid taxes,” it said.

The court also cited a decision of the en banc which ruled that the proof of actual input VAT incurred is necessary in proving claims for refund of excessively paid VAT from a taxpayer’s failure to use the standard input 7% VAT.

NDC paid VAT in the amount of P71 million during the 2nd quarter of 2015 up to 3rd quarter of 2016. However, it said it committed a mistake in utilizing the actual input VAT attributable to its sales to the government instead of the 7% standard input VAT as credited against its output VAT.

It then filed its claim for refund with the BIR in June 2017 and then to the CTA in the following month.

NDC relied on RR No. 16-2005, which stated that sales of goods and services to government and its agencies that are subject to VAT are subject to a final withholding of 5% VAT and the remaining 7% is the standard input VAT for such sales.

The BIR claimed the refund is still subject to an administrative investigation and the taxes collected are presumed to have been done under the law. It also said the claim for refund is not properly supported by proper documents. — Vann Marlo M. Villegas

Louvre Museum puts time with Mona Lisa under hammer to plug COVID-hit finances

PARIS — As the coronavirus pandemic keeps visitors away, the Louvre is offering time close-up with the Mona Lisa and a walk along the French museum’s historic rooftop at an auction to help plug a gaping hole in its finances.

The highest bidder will get the chance to witness the annual examination of Leonardo da Vinci’s masterpiece, usually only glimpsed over the heads of a crowd thronging the portrait.

Also among the two dozen lots going under the hammer is an oil canvas painted in 1962 by Pierre Soulages and held in the artist’s private collection, a bespoke timepiece by watch-maker Vacheron Constantin, and a walk along the rooftop of the 800-year-old Louvre palace with French street artist JR.

“The Louvre is suffering like all big museums around the world,” said Yann Le Touher, who handles relations with the Louvre’s patrons.

Each year, the Mona Lisa, perhaps the world’s most famous painting, is taken down from the wall and removed from its glass case for a fleeting check. The work, from around 1503, is threatened by a crack.

Some world leaders are among a fortunate few who have in past decades witnessed the event.

Auctioneer Christie’s hopes the online auction will raise more than 1 million euros ($1.2 million), including an estimated 10,000-30,000 euros for the Mona Lisa experience.

The Louvre received nearly 10 million visitors in 2019, but has been closed for more than five months this year during two coronavirus lockdowns. While it was open in the summer, numbers through the gate were down by as much as 75% during peak months.

Mr. Le Touher said the Louvre would lose up to 90 million euros in revenue this year.

Museums, theaters and cinemas are due to reopen on Dec. 15 if the virus has slowed sufficiently.

While the Louvre was rich in art and heritage, it was not a wealthy institution, Mr. Le Touher said.

The state is providing 46 million euros to bolster the museum’s coffers, he said. Proceeds from the auction will help finance the running costs of a new studio for educational projects due to open next autumn. — Reuters

‘Sin’ tax collection exceeds revised target in October

Taxes collected from so-called “sin” products, such as cigarettes and alcoholic beverages, fell amid weak demand due to the pandemic. — REUTERS

By Beatrice M. Laforga,  Reporter

TAXES COLLECTED from so-called “sin” products in October surpassed the target for the month, due to a pick up in sales of tobacco and alcoholic drinks, data from the Department of Finance (DoF) showed.

Data obtained by BusinessWorld showed the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) collected P23.238 billion in “sin” taxes in October, beating the reduced P20.52-billion target by 13.2%.

This was also nine percent higher than the P21.332 billion generated in the same month last year, but 20% less than the P29.2 billion collected in September.

Broken down, excise tax collections from tobacco products hit P14.11 billion in October, up 34.3% year on year and higher by 12.4% than its P12.44-billion target. Taxes from alcoholic beverages, meanwhile, fell 3.5% to P6.967 billion from P7.22 billion the year prior, but have exceeded the P5.53-billion goal by 26%

State revenues from sweetened beverages stood at P2.166 billion, plunging 40% year on year and 15% short of the P2.55-billion target for the month.

Projected tax collections for the year have been slashed on expectations of weak public consumption amid a recession caused by the coronavirus pandemic.

The targets were based on the assumptions of the economic managers during their meeting in July where they slashed the estimated overall revenues to P2.52 trillion. The latest estimates have been increased to P2.85 trillion during a meeting last week after the BIR and BoC consistently surpassed their targets since July.

In the first 10 months of the year, “sin” tax collections reached P212.94 billion, exceeding the target by 16.88%, but still down by 6.7% from the P228.22 billion recorded in the comparable period in 2019.

Tobacco collections fell by three percent from a year ago to P129.02 billion, but were still 16.8% higher than the P110.42-billion goal. Taxes from alcohol products also declined by 8% from its year-ago level to P57. 37 billion, but the tally  exceeded the target of P49.11 billion by 16.8%.

Taxes from sweetened beverages were down by 18.7% to P26.56 billion in the 10-month period. The amount beat the target of P22.65 billion by 17%.

Recently passed laws raised the excise taxes slapped on alcoholic beverages and tobacco products. A huge part of “sin” tax collections will be used to fund the government’s Universal Health Care Program.

The BIR raked in P152 billion in taxes in October while the BoC generated P50.6 billion, down by 15% and 12% from their respective year-ago levels but higher than their targets for that month.

From January to October, the BIR’s revenues dropped 10.4% to P1.596 trillion while Customs revenues were also down 15% to P448.6 billion.

Cyber-attackers may target COVID-19 vaccine makers, distributors next year, Kaspersky says

CYBER-ATTACKERS are seen to target coronavirus vaccine manufacturers and firms involved in the distribution beginning next year, internet security firm Kaspersky said.

“The coronavirus vaccine is going to make a major change in our lives starting next year, and it will have its own effects on the cyberspace,” Vitaly Kamluk, director of Kaspersky-Asia Pacific’s global research and analysis team, said at Kaspersky’s Cybersecurity Weekend virtual media forum on Tuesday.

He added, “We see that cyber-attackers will focus on either impersonating the vaccine manufacturers or attacking them, trying to destroy their digital reputation for competitive purposes.”

As for the logistics firms involved in the distribution of the vaccines, Mr. Kamluk said they will also be more vulnerable to cyber attacks, as cybersecurity “is not one of their strongest sides.”

“But with their involvement in the distribution of the vaccines, things can change,” he noted.

He said coronavirus vaccine makers, distributors, and logistics firms “should pay attention to cybersecurity now.”

“They should prepare before the distribution starts by installing security products and by briefing their personnel that things like this may come, so they should not trust every party that contacts them,” he explained.

Kaspersky said businesses should protect their digital reputation, as “five in 10” internet users in the Asia-Pacific region, based on its latest study, “avoid companies who were involved in a scandal or had received negative news coverage online.”

It added that “four in 10” had “stopped using a company’s or brand’s products once they were embroiled in some kind of crisis online.” — Arjay L. Balinbin

Goldman Sachs eyes 100% of China venture

GOLDMAN SACHS Group, Inc. is inching closer to becoming the first Wall Street bank with 100% ownership of its securities joint venture (JV) in China, paving the way for an aggressive expansion as the Asian nation opens its $50-trillion financial market wider to foreign firms.

The New York-based bank has started the process of getting clearance from regulators to take full control of Goldman Sachs Gao Hua and signed a definitive agreement with its partner to buy the 49% of the venture it doesn’t own, according to an internal memo. A Hong Kong-based spokesman at Goldman Sachs confirmed the contents.

The move will end Goldman Sachs’ 17-year collaboration with Beijing Gao Hua Securities and gives the firm free rein to pursue an expansive growth strategy that includes boosting its workforce in China to 600 and ramping up in asset and wealth management. Wall Street giants are rushing to gain a bigger foothold as China’s market opens, jostling to capture a share of profits that are estimated to swell to $47 billion in investment banking alone by 2026.

Full ownership “of our franchise on the mainland represents a significant commitment to and investment in China,” Chief Executive Officer David Solomon, President John Waldron and Chief Financial Officer Stephen Scherr said in the memo.

Taking full control in China would bring the firm closer to its vision of being “one Goldman” in all markets. As part of the progression to full ownership, the firm will migrate all onshore businesses currently under Gao Hua across to Goldman Sachs Gao Hua, which will be renamed Goldman Sachs (China) Securities Co. Ltd.

Gaining full ownership and moving its non-investment banking businesses to the existing joint venture on the mainland will help Goldman untangle a convoluted structure.

In 2004, Goldman was granted approval to create a securities venture with Gao Hua Securities, which was set up by Chinese banker Fang Fenglei with a loan from the US firm. Goldman has been effectively controlling the operations of Gao Hua even though the loan was repaid a decade later. — Bloomberg

Legacy Construction Corporation generates over 1,000 jobs nationwide amid pandemic

Despite this past year of substantial shifts in the labor market due to the global pandemic, family-run diversified holdings company Legacy Construction Corporation has been able to provide new jobs to over 1,000 Filipinos thanks to their ventures in construction, real estate, and agriculture.

“We are grateful for the opportunity to provide some stability to our employees, especially during this tumultuous year. Legacy Construction Corporation is happy to continue our nation-building efforts through investments in both community projects and the members of these communities themselves,” said President Alex Abelido in a statement.

The Department of Labor and Employment reported that over 3.73 million workers were affected as lockdown measures hurt the Philippine economy. Many companies have had to downsize, but Legacy Construction Corporation has been able to not only retain but grow their employee pool through their diversified portfolio of services.

While they started out by specializing in government construction projects in Bacolod, Legacy Construction Corporation has since ventured out into new provinces and into different sectors with LS PRAMMANI for realty development and Legacy Farms for agriculture. By not limiting themselves to one location or industry, Legacy Construction Corporation has helped see the growth of towns nationwide alongside the proud locals they employ.

“Our communities, particularly those outside of the country’s major cities, have so much potential to grow,” shared Legacy Construction Corporation Operations Director Raymond Abelido. “In the past few years, we’ve focused on expanding to realty and agriculture because we understand that these sectors have a multiplier effect in uplifting a community’s viability,” he added.

Both the real estate industry and the agricultural sector have been cited as key factors in the country’s economic recovery for the post-pandemic era. Economist Dr. Bernardo Villegas from the University of Asia and Pacific recently noted the continued demand in residential property, while the World Bank released a report on the importance of transforming the country’s farming into a vibrant rural economy. Moreover, the government’s consistent funding for its Build, Build, Build projects helps ensure job security for those in construction.

By investing in such essential sectors, Legacy Construction Corporation has been able to generate over 1,000 jobs in the past year alone. Stringent protocols in all operations are also in place to protect employees from ongoing health concerns.

“We are a proudly Filipino company that proudly invests in the Filipino people. Being able to share our legacy with those who work with us is part of our commitment to nation-building, so we will continue to find opportunities to empower communities,” shared Alex.

Arts & Culture (12/09/12)

Steps Dance Studio releases film

EVERY year during Christmas, the Steps Dance Studio holds performances at the Ayala Malls. This year, however, things have to be done a little differently. In partnership with Ayala Malls and a creative team including director Madge Reyes and choreographer James Laforteza, Steps Dance Studio launches a dance film to support local dancers and uplift mall goers. Titled Happy, the dance film begins with a mall maintenance staff falling asleep on a chair in an empty cinema. Next thing he knows, he’s surrounded by Ayala Malls’ lush greenery and is joined by a group of young jazz dancers as they move along, performing at other areas of the mall. The maintenance staff soon wakes up from his dream. The song accompanying the dance film is Ryan Cayabyab’s original composition “It’s Gonna Be a Happy Day,” performed by Reese Lansangan. Watch Happy on Facebook at https://fb.watch/2aK4a84bQb/ . Watch the official video for “It’s Gonna Be a Happy Day” on YouTube: https://www.youtube.com/watch?v=c1y-paG_mpQ&feature=youtu.be.

Group show at the BenCab Museum

THE BENCAB Museum caps the year with RE:VIEW 2020, a group exhibition by 45 artists — including Antipas Delotavo and BenCab, Charlie Co, Jason Moss, Mark Justiniani, Welbart Slowhands, Max Balatbat, Imelda Cajipe Endaya, and Abi Dionisio — working in diverse styles from figurative to non-figurative, and showing a wide range of subject matter and techniques. RE:VIEW 2020 will be on view at BenCab Museum’s Gallery Indigo from Dec. 12 to Feb. 7, 2021 The museum is open Tuesday to Sunday, 9 a.m. to 5  p.m. For inquiries,send an e-mail to bencabartfoundation@gmail.com.

‘20/20’ caps Pinto Museum’s year

PINTO Art Museum caps the year with the group exhibit “20/20,” which opened on Dec. 6 at the contemporary art museum’s recently inaugurated Gallery 7. The selling exhibition features the works of some of the most highly regarded Filipino artists — from the emerging to the established. 20/20 touches upon a wide variety of subject matter, but with most of the works contemplating on the external and internal conditions brought about by the pandemic, the consequent lockdown, and the emergent “new normal.” The painters were asked to project their visions onto a 20 x 20-inch canvas as a way to engage with the show conceptually and to respond with a sense of balance and scale to what has been a tumultuous year. One of the special thrusts of the exhibition is to highlight sculptural works, which also needed to subscribe to the 20-inch height/width/length prescription. With over 100 artists participating, with each of them presenting their unique take on our collective struggle, “20/20” — curated by Ferdie Montemayor — inflects a clarity of vision and purpose to how we face the possibilities of the future. Pinto Art Museum is at 1 Sierra Madre St., Grand Heights Subdivision, Antipolo City. For inquiries on the purchase of works and viewing of the exhibition, call at 8697-1015 or e-mail pintoartmuseum@yahoo.com.

CCP’s parol tradition continues

THIS year the Cultural Center of the Philippines (CCP) heralds the holiday season with “Pasko 2020,” a display of Parul Sampernandu, which will light up the CCP’s Main Building Facade and the complex grounds from Dec. 10 to Jan. 3. The center upcycles the lanterns — which were originally designed by the Quiwa Family from San Fernando, Pampanga — after years of storage. With the health crisis and the aftermath of natural disasters that hit the country this year, the craftsmen from Pampanga have lost livelihood opportunities, is where the CCP comes in. They were engaged to improve on the eight-point star lanterns in the CCP’s keep and refresh their fascia with gold foil. A projection mapping by projection designer GA Fallarme complements the glimmering lanterns. Completing the whole experience will be the light and sound spectacle designed by Danilo Villanueva. In addition, a selection of short animation films from the Gawad CCP Para sa Alternatibong Pelikula archives will be shown. The whole spectacle will be streamed live on the CCP Facebook page and other social media platforms. In this time of the pandemic, the CCP will hold its traditional Simbang Gabi online with the participation of parish churches in Luzon, Visayas and Mindanao. The virtual Simbang Gabi will run from Dec. 15 to 23, 9 p.m. (Anticipated Masses, with replays the following morning) and on Dec. 16 to 24, 5 a.m. (Dawn Masses); culminating in a Christmas Eve Mass on Dec. 24, 8 p.m., and a Special Christmas Day Mass on Dec. 25, 10 a.m. Follow the official CCP Facebook and social media accounts to get the latest updates on the “Pasko 2020.” Visit www.culturalcenter.gov.ph to know more about the CCP and its programs.

Silverlens holds 3 live show, one online

THE YEAR-ender show of Silverlens’ Online Viewing Room features two iconic series by Chiang Mai-based artist Mit Jai Inn. “Junta Monochromes” (2016) and “Beautiful Futures” (2018) were made and shown in Bangkok amidst a backdrop of political drama and student protests  — movements that are now more active than ever. In a year of global turbulence, it is good to reflect on histories that give us hope. The show runs until Dec. 23. Meanwhile, the gallery has three shows ongoing until Dec. 23. Currently installed in the gallery’s largest space are nine oil paintings and nine ceramic sculptures by Hanna Pettyjohn in a show called “In Medias Res.” Known for addressing themes, such as memory and migration in her works, these recent abstract pieces are highly referential to the artist’s personal history, as well as her creative process. Meanwhile, Dina Gadia features new acrylic paintings and signage in her latest show with the gallery, “Navigating the Abstract.” The artist’s latest body of work is linked to the disconcertion she experienced during the height of the global health crisis. Finally, at the gallery’s Front Room, Gregory Halili presents a new set of miniature oil paintings completed on capiz shells in “Glass Horizon.” These meticulously crafted works reveal the delicate nature of the artist’s practice, as well as display his recent meditations on the fragility of nature, human existence, and social order. These exhibitions can be viewed in person by appointment only, from Tuesday to Saturday, 10 a.m. to 4 p.m. The gallery is at 2263 Don Chino Roces Ave. Ext., Makati City. For details and appointments, call 8816-0044 or 0917-587-4011, or e-mail info@silverlensgalleries.com.

2 new shows at MO_Space

AT MO_Space’s Main Gallery, Mariano Ching and Louie Cordero collaborate on a show called “Bat Soup Painters.” Both artists chose a parking lot in a town in Laguna, mid-way between their own homes during the pandemic, where they would meet up to swap paintings for the other to work on. Meanwhile, on view at Gallery 2 is “Come a little closer, Move a little far,” a three-person show featuring Keigh Cruz, Mai Saporsantos, and Ev Yu, with paintings that explore the measure of contemporary experience through figuration, landscape, narrative, and abstraction. “Bat Soup Painters” and “Come a little closer, Move a little far” are open for public viewing at MO_Space until Dec. 31. The gallery is open daily except for Mondays, from 10 a.m. to 7 p.m. For  inquiries, call 8403-6620 or 0917-572-7970.

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