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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.

Commission to assess effectivity of safeguard duties on steel bars

THE TARIFF commission will assess the impact of safeguard duties imposed on steel angle bars and newsprint on the domestic industry, after the expiration of these safeguard measures.

Philippine imposition of safeguard duties on steel angle bars was extended to end in 2019, after first being implemented in 2009 to 2015. Imported newsprint also had safeguard import duties from 2015 to 2018.

The commission will be conducting online public hearings in February 2021.

“The purpose of the public hearing is to evaluate the effectiveness of the actions taken by the domestic industry in facilitating positive adjustment to import competition,” the commission said in separate public notices signed last month.

All interested parties may present evidence or testimony at the meetings.

The Trade department in 2015 imposed a general safeguard measure against imports of newsprint from various countries after the department’s investigation found that increased imports likely caused serious injury to the domestic newsprint industry, in response to an application from the Trust International Paper Corp.

The Safeguard Measures Act, or Republic Act No. 8800, allows domestic producers to ask the government to conduct an investigation into their import competitors if they claim to have been injured by excessive imports.

In a 2017 assessment, the tariff commission found that the domestic newsprint industry complied substantially with commitments in its adjustment plan, noting that the measures such as equipment upgrades significantly lowered industry deficits.

“However, the full potential of the cost savings from the efficiency measures undertaken have not been fully realized by the domestic industry due to cost factors that are beyond its control such as fluctuations in such major cost components as bunker fuel and power,” the report said.

The report said that the industry must make further adjustments to the external pressures, adding that the safeguard offered it enough time to make improvements.

The steel angle bar industry had successfully petitioned for an extension of safeguard measures up to 2019 after it reported that imports seriously injured local industry and submitted evidence on its adjustment to competition.

The tariff commission’s 2017 assessment found that the domestic steel angle bar industry complied substantially with adjustment commitments.

“The impact of the adjustment measures undertaken by the domestic industry can be seen in its high market shares, the significant reduction in its production costs, and the improvements in its production and sales volumes, utilization rates, and profitability.”

Steel industry groups have recently been calling the attention of the Trade department to unmarked and substandard steel bars in Luzon markets, with Philippine Iron and Steel Institute (PISI) President Ronald Magsajo alleging that some may have been smuggled into the country.

The tariff commission will also be conducting a public hearing on Dec. 18 on the safeguard measures on the Philippine cement industry, assessing its compliance with adjustment plans. — Jenina P. Ibañez

Downtick in jobless and underemployment rates ease economic misery in Q4 (2020)

Downtick in jobless and underemployment rates ease economic misery in Q4 (2020)

Shares to move sideways on US-China tensions

PHILIPPINE SHARES are expected to go sideways after a one-day trading break as investors will assess the impact of renewed tensions between the United States and China on the market.

On Monday, the 30-member Philippine Stock Exchange index (PSEi) improved 69.11 points or 0.96% to close at 7,203.67, while the broader all shares index climbed 35.68 points or 0.83% to 4,286.05.

The market was closed on Tuesday in observance of the Feast of the Immaculate Conception of Mary.

Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a mobile phone message that the benchmark index may be affected as investors weigh the ongoing tensions between the US and China.

“As investors may be assessing how the US-China tensions may play out over the short-term, the index may trade sideways, especially that the market is currently trading near its immediate resistance at the 7,200 level,” Mr. Pangan said.

The United States on Monday imposed financial sanctions and a travel ban on 14 Chinese officials over their alleged role in Beijing’s disqualification last month of elected opposition legislators in Hong Kong, Reuters reported.

The sanctions prohibit the 14 individuals and their immediate members from traveling to the United States. Any assets the officials might have within the United States will be blocked and US individuals and companies will be banned from dealing with them.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the market might also move sideways following the release of faster-than-expected inflation data.

“The overbought condition of the market with the recent uptick in inflation rate at higher than estimate may dampen the sentiment,” Mr. Pangan said in a mobile phone message.

The overall year-on-year increase in prices of widely used goods accelerated to its fastest pace in 21 months in November, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary PSA data showed headline inflation at 3.3% last month, picking up from 2.5% in October and 1.3% in November 2019.

The latest inflation result was the fastest pace in 21 months or since the 3.8% reading in February 2019. It also matched the 3.3% print in March 2019. Year to date, inflation settled at 2.5%, still within the central bank’s 2-4% target.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the PSEi may retreat in the next trading session as selling pressure has picked up.

“But a successful break above this level will encourage more bullishness. Investors remain optimistic that business activities continue to pick up due to increased government and consumer spending this month,” Mr. Mangun said in a mobile phone message.

“Immediate resistance is 7,263 with next resistance at 7282 while immediate psychological support is 7,000 with major support at recent low of 6,740,” Diversified Securities’ Mr. Pangan said. — Revin Mikhael D. Ochave

Banks need to boost cybersecurity protocols to guard vs threats, attacks as clients shift online

BANKS must build up their security measures to guard against emerging cyberthreats. — FREEPIK

FINANCIAL INSTITUTIONS need to continue boosting their guard against fraud and crimes as consumers shift towards online transactions amid the coronavirus pandemic, stakeholders said.

“With that surge of transactions, it is paramount to implement cybersecurity protocols to protect the institutions and most importantly, the customers,” Spark Perreras, chief executive officer and co-founder of financial technology firm PearlPay, said in a BusinessWorld Insights Forum on Friday.

Mr. Perreras said the vulnerability assessment penetration testing mandated by regulators is a vital point in cybersecurity as it is meant to gauge flaws in a system.

Meanwhile, Paolo del Puerto, chief marketing officer at cybersecurity platform Secuna, said lenders are not the only institutions that could be victimized by hackers, noting around 30 schools were hacked in June this year.

He also cited a study which showed it took firms about 206 days to detect a data breach.

Mr. Del Puerto said that to be safe against cyberthreats, it is important for institutions to go beyond time-sensitive assessments mandated by regulators.

He added that companies should develop better communication with stakeholders and be more receptive to feedback from users that may have experienced such attacks.

“Cybercriminals are attacking 24/7. You wouldn’t know when they would be able to exploit the vulnerability,” Mr. Del Puerto said.

For his part, Philip B. Casanova, principal for technology consulting at SGV & Co., said banks should approach cybersecurity as a governance issue and not just a technical issue.

“Banks and financial institutions would need to educate their employees and their customers about the risks…not believing everything they receive,” he said, calling this the “human firewall mentality.”

Businesses should also employ a “secure by design principle,” said Mr. Casanova, wherein cybersecurity is put forth in the early planning stage of a system.

If cybersecurity strategies are formulated earlier, businesses will also be able to reap economic benefits, he said.

“The cost to fix [a cybersecurity system] is 30 times more expensive [compared with] if you fix it during the early stages of the development life cycle,” he said.

The Bangko Sentral ng Pilipinas earlier urged lenders to have a “zero trust” cybersecurity system approach wherein resources are continuously authorized and verified through security protocols. These methods include biometric technologies and multi-factor authentication techniques. — L.W.T. Noble

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