US sets record with over 1 million coronavirus tests in a day

September 21, 2020 | 3:19 pm

The United States set a one-day record with over 1 million coronavirus diagnostic tests being performed, but the country needs 6 million to 10 million a day to bring outbreaks under control, according to various experts.

The country performed 1,061,411 tests on Saturday, according to data from The COVID Tracking Project, a volunteer-run effort to track the outbreak.

The record comes after testing has fallen for several weeks.

The United States tested on average 650,000 people a day in the week ended Sept. 13, down from a peak in late July of over 800,000 people a day.

Since the start of the pandemic, testing shortages have hampered efforts to curb the spread of the virus.

At one point during the summer, Houston residents lined up in cars and waited hours for tests, even sleeping in their vehicles overnight. Miami saw similar lines.

Once tested, people may have to wait up to two weeks to learn if they have the virus, which has killed nearly 200,000 Americans and infected more than 6.7 million. Such delays defeat the purpose of trying to prevent further infections.

In March, President Donald Trump said “anyone who wants a test, gets a test.” That goal has yet to be achieved.

At the heart of the crisis is a reliance by labs on automated testing equipment that locks them into using proprietary chemical kits and other tools made by a handful of manufacturers.

The Food and Drug Administration has granted emergency use authorization to several saliva tests, which require no swabs and use readily available reagents.

The United States has also authorized pooled testing, a method that tests samples from several people at once and can expand testing capacity.

However, pooled testing is only more efficient in areas with limited outbreaks. In mid-September, 27 of 50 states had positive test rates above 5%, according to a Reuters analysis, including South Dakota at 17%.

The World Health Organization considers positivity rates above 5% concerning. — Reuters

In SUVs and on planes, richest 1% drive climate-heating emissions

September 21, 2020 | 2:41 pm

LONDON — Prone to frequent flying, a passion for SUVs and big spending, the richest 1% of the world’s population produced twice as many planet-heating emissions as the poorest half of humanity over the last quarter-century, researchers said on Monday.

That excessive consumption has left little room in the world’s “carbon budget” for poorer countries to grow without pushing the planet into increasingly dangerous climate impacts, from worsening storms to water shortages, scientists said.

And it suggests that keeping global climate change under control will require not just helping poorer countries to develop cleanly, but putting in place tough measures to curb over-consumption by the world’s rich, they said in a new study.

Tim Gore, head of climate policy for anti-poverty charity Oxfam and lead author of the report, said change would not come from individuals voluntarily acting alone.

“That will never add up. This has to be driven by governments,” he told the Thomson Reuters Foundation.

The research, carried out with the Stockholm Environment Institute, found that over the 25 years between 1990 and 2015, the richest 1% of people drove 15% of climate-changing emissions—more than twice the 7% emitted by the poorest half.

The richest 10% accounted for 52% of emissions over that period, the study said.

The growing popularity of fuel-guzzling SUVs was a particular problem, with the vehicles emerging as the second biggest driver of global growth in carbon emissions between 2010 and 2018, it said.

As countries now look to recover from economic downturns linked to the COVID-19 pandemic, which have hit the poor hardest, revamping economic incentives to discourage excessive consumption could play a role, officials said.

“Our current economic model has been an enabler of catastrophic climate change and equally catastrophic inequality,” said former United Nations Secretary-General Ban Ki-moon.

The pandemic offers a chance to rethink systems—and “addressing the disproportionate carbon emissions from the wealthiest in society must be a key priority as part of this collective commitment”, he added in a statement.

Still, the scale of the emissions cuts needed by the wealthy to hold planetary heating to 1.5 degrees Celsius above pre-industrial times—the toughest goal of the 2015 Paris Agreement—is breathtaking.

The Oxfam report estimates that the richest 10% of people would have to slash their emissions to about 10 times lower than now to keep the world on track for the goal—and do it by 2030.

But with the onset of the coronavirus crisis, as well as growing demands for racial and social justice, “policies that were unthinkable a year ago are now being rolled out”, Mr. Gore said. “This is the moment to be bold and do things differently.”

Business travel, for instance, has shrunk dramatically during the pandemic, offering “a huge opportunity” to tax business-class flights, as well as private jets and frequent fliers—a move supported by a British citizens’ climate panel.

Funds raised through such levies could be used to support the poorest, by investing in healthcare and education, or to boost public transport, digital infrastructure, and other measures to make low-carbon living easier, researchers said.

France has already introduced tougher taxes on SUVs, Gore noted, while some governments like New Zealand and Scotland are shifting away from economic growth as the main measure of success toward a broader assessment of “well-being”.

And using bailout cash for energy-smart home retrofits—something that can slash emissions, improve life for the poorest and create jobs—would address two challenges at once.

“We have to tackle deep-rooted problems of inequality alongside problems like climate change,” he said. — Thomson Reuters Foundation

Duterte eases overseas travel ban on health workers

September 21, 2020 | 1:59 pm

Healthcare workers from the Philippines are on the front lines of the pandemic at hospitals in the United States, Europe, and the Middle East as well as at home.

President Rodrigo R. Duterte has eased an overseas travel ban on Filipino nurses and other medical workers to allow more to take jobs abroad, his spokesman said on Monday, as his government believes it has its coronavirus outbreak under control.

Thousands of health workers, who call themselves “priso-nurses”, had appealed to the government to let them travel, Reuters reported last week. The nurses say they feel underpaid, under-appreciated and unprotected in the Philippines.

Mr. Duterte approved the proposal of the labor ministry to expand exemptions from the ban to those who had overseas contracts and complete documents as of Aug. 31, spokesman Harry L. Roque, Jr., told a regular briefing.

So far only those with contracts as of March 8 have been allowed to travel.

Mr. Roque said the president’s decision would benefit 1,500 health personnel.

“These are nurses who already spent a lot (of money) processing their papers. They are not that many so we allowed them to leave,” Mr. Roque said.

Healthcare workers from the Philippines are on the front lines of the pandemic at hospitals in the United States, Europe, and the Middle East as well as at home.

Mr. Duterte’s government in April barred nurses, doctors and other medical workers from leaving, saying they were needed to fight the coronavirus crisis in the Philippines, which is still tackling its first wave of infections.

The country has the highest number of recorded coronavirus infections in Southeast Asia with 286,743 cases. Its 4,984 deaths are second only to Indonesia.

But Mr. Roque insisted there was no reason to panic and said: “We are in control.”

“We know the enemy and we know how to fight the enemy through isolation, tracing and treatment,” Mr. Roque added. — Reuters

Why is Taiwan-China tension rising and what are the risks?

September 21, 2020 | 1:39 pm

TAIPEI — China sent numerous aircraft close to Taiwan during two days of drills from Friday, causing the island’s air force to scramble, as Beijing expressed anger at the visit of a senior US official to Taipei.

WHY IS TENSION RISING NOW?
China claims democratically run Taiwan as its own territory, to be taken by force if needed, a threat the island has lived with since 1949, when defeated Kuomintang, or Nationalist, forces fled there after their defeat by the Communists in the Chinese civil war.

China has been angered by stepped-up US support for Taiwan, including two visits in as many months by top officials, one in August by Health Secretary Alex Azar and the other last week by Keith Krach, the undersecretary for economic affairs.

In addition, the United States is planning major new arms sales to Taiwan. China views all these steps as effectively being US support for Taiwan independence, with the eventual establishment of a Republic of Taiwan, a red line for Beijing.

Taiwan President Tsai Ing-wen says the island is already an independent country called the Republic of China, its formal name, and that the People’s Republic of China has never ruled Taiwan and has no right to.

China calls Taiwan its most important and sensitive issue in US ties. For China’s ruling Communist Party, Taiwan is the last part of the nation still awaiting “liberation” after the 1949 victory, adding an extra historical significance.

WHAT ARE THE RISKS?
Taiwan and China do not have an official dialogue mechanism, meaning that any accidental clash between their fighter jets, for example, could quickly spiral out of control.

Taiwan’s air force now regularly scrambles to see off approaching Chinese aircraft.

A conflict over Taiwan may suck in the United States and its Asian allies, though it is an open question whether Washington would, or could, come to Taipei’s aid.

China may quickly overwhelm Taiwan with missile and cyber attacks before the United States even has a chance to respond.

However, any war would be damaging for China too, in terms of its international reputation and economically, especially if it is subject to broad Western economic sanctions.

WHY IS TAIWAN STRATEGICALLY IMPORTANT?
Not only is Taiwan in a key geographic location on the edge of the Pacific between the disputed South China Sea and Japan, but it is a tech powerhouse, home to the world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd.

The United States views China’s tech firms as a security risk and has moved to cut off its access to advanced chips, including those from Taiwan.

HOW DO THE ARMED FORCES OF THE TWO SIDES COMPARE?
Taiwan’s military is well-trained and well-armed, but is dwarfed by China’s People’s Liberation Army, which is adding stealth fighters, aircraft carriers, and advanced missiles in the throes of an impressive modernization program.

Ms. Tsai has made upgrading Taiwan’s military a priority, stressing “asymmetric warfare”, to make any attack as painful and as difficult for China as possible. This could include, for example, pinpoint strikes by long-range missiles on targets in China.

WHAT WOULD HAPPEN IN A WAR BETWEEN TAIWAN AND CHINA?
While China could easily overwhelm Taiwan with missiles and air attacks, it has other options to bring the island to its knees, such as cyberattacks to take down basic infrastructure, or a naval blockade to force surrender.

Whatever happens, the reaction of the United States will be crucial. — Reuters

HSBC HK shares drop to lowest since 1995, StanChart falls after ‘FinCEN’ leak

September 21, 2020 | 12:48 pm

HONG KONG — HSBC and Standard Chartered’s Hong Kong shares dropped on Monday after media reports that they and other banks moved large sums of allegedly illicit funds over nearly two decades despite red flags about the origins of the money.

BuzzFeed and other media reports were based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the US Department of Treasury’s Financial Crimes Enforcement Network (FinCen).

The revelations underscore challenges for regulatory and financial institutions trying to stop the flow of dirty money despite billions of dollars of investments and penalties imposed on banks in the past decade.

HSBC shares in Hong Kong fell as much as 4.4% to HK$29.60 on Monday morning, the lowest since May 1995, while StanChart dropped as much as 3.8% to HK$35.80, the lowest since May 25 this year.

The Hang Seng Index was down 0.4%.

HSBC and Standard Chartered, among other global banks, have paid billions of dollars in fines in recent years for violating US sanctions on Iran and anti-money laundering rules.

More than 2,100 SARs, which are in themselves not necessarily proof of wrongdoing, were obtained by BuzzFeed News and shared with the International Consortium of Investigative Journalists (ICIJ) and other media organizations.

The files contained information about more than $2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious.

The ICIJ reported the leaked documents were a tiny fraction of the reports filed with FinCEN.

HSBC and StanChart were among the five banks that appeared most often in the documents, the ICIJ reported.

The SARs showed that banks often moved funds for companies that were registered in offshore havens, such as the British Virgin Islands, and did not know the ultimate owner of the account, the report said.

Staff at major banks often used Google searches to learn who was behind large transactions, it said.

In a statement to Reuters on Sunday, HSBC said “all of the information provided by the ICIJ is historical.” The bank said as of 2012, “HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions.”StanChart said in a statement, “We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes.” — Reuters

PAL pays 80% of $329 million refund requests

September 21, 2020 | 12:10 pm

Philippine Airlines Inc. (PAL) said it has already paid back 80% of the 15.9 billion pesos ($329 million) in refund requests it received amid the coronavirus pandemic.

The carrier owned by billionaire Lucio Tan has canceled more than 60,000 flights since March, affecting over 1.3 million passengers, PAL said in a statement.

“The loss of revenues deprived us of liquidity to make prompt refund payments, even as lockdown restrictions posed serious staffing and logistical limitations,” it said.

PAL said it has restored nearly 15% of its regular local and international network and plans to ramp up flights as travel and quarantine restrictions ease. Cebu Air Inc., the nation’s largest budget carrier, said last week it has refunded 2.4 billion pesos or half of total refund requests since April. — Bloomberg

[B-SIDE Podcast] Warehousing and logistics: a bright spot in an otherwise battered economy

September 21, 2020 | 10:16 am

Thanks to e-commerce and changing consumer habits, the logistics and warehousing sector still expects to grow by 8% in the next three years despite the pandemic. This is a bright spot in an otherwise battered economy that dropped by 16.5% in the second quarter.

Sheila G. Lobien, CEO of property consultancy firm Lobien Realty Group, speaks with BusinessWorld reporter Denise A. Valdez about the impact of new consumer patterns on the future of the industry, and how the Philippines compares with the rest of Southeast Asia—8% growth is good, but that rate is slower when compared to the likes of Vietnam. Ms. Lobien shares insights on what the country has to do to get a bigger slice of the warehousing pie.

TAKEAWAYS

E-commerce and the demand for essentials—food or medical goods—is driving the logistics and warehousing sector, which continues to grow despite a general drop in real estate demand during the pandemic.

“The warehousing industry is one of the luckiest sectors,” said Ms. Lobien, who added that the pandemic has sped up the growth of the logistics and warehousing industry.

To maximize the potential of the logistics and warehousing industry, government must make good on its ‘Build, Build, Build’ projects.

Due to limited space in Metro Manila, rental rates in Central Business Districts have increased to P1,000/square meter from about half that price two years ago.

Big players such as Ayala Corp. and SM Prime Holdings are eyeing building warehousing facilities outside Metro Manila. Cavite, Bulacan, and Laguna are ideal locations since they are accessible, flood-free, and near the center.

For warehouse operators to locate in the provinces, they need better infrastructure to ensure the seamless transfer of goods.

The Philippines’s logistics and warehousing sector still has a lot of room to grow to level with its regional peers.

Local demand is fueling the growth of the logistics and warehousing industry. The 8% growth rate cited by Ms. Lobien is slower compared to, say, Vietnam’s warehousing industry, which is booming thanks to government support, lower cost of utilities, better road networks, and low COVID-19 numbers.

To catch up, the Philippines must address red tape, port congestion, and the sorry state of the country’s roads. The government must also step up its response to the worst COVID-19 outbreak in Southeast Asia.

Meanwhile, warehouse operators have to adapt to e-commerce and employ artificial intelligence and robotics to make the transfer of goods faster.

Recorded remotely on September 3. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.

Related episode:

BSP says liquidity support hit P1.4T

September 21, 2020 | 12:33 am

THE Philippine central bank has infused P1.4 trillion into the financial system as part of measures to support the economy amid the coronavirus crisis, Governor Benjamin E. Diokno said.

“Overall, the total amount of additional liquidity injected into the system from these collective measures is estimated at P1.4 trillion, equivalent to 7.3% of GDP (gross domestic product),” Mr. Diokno said in a speech at Standard Chartered Bank’s ASEAN Webinar series on Friday.

Domestic liquidity or M3 — which is considered to be the broadest measure of money supply — rose by an annual 14.5% in July to about P13.6 trillion. This was a tad slower than the 14.9% expansion in June.

Mr. Diokno said the Bangko Sentral ng Pilipinas (BSP) knew it had to make “decisive and immediate actions” as early as the first quarter when the coronavirus disease 2019 (COVID-19) outbreak was starting.

“We identified four critical functions within our scope that are imperative to keep the economy afloat: ensuring that sufficient liquidity is circulating in the system; shoring up market confidence and cushioning the slowdown of economic activity; sustaining financial stability and extending relief to financial institutions; and promoting access to and delivery of financial services,” he said.

The central bank has cut policy rates by 175 basis points (bps) this year to help stimulate the economy. This reduced the overnight reverse repurchase, lending, and deposit facilities to record lows of 2.25%, 2.75%, and 1.75% respectively.

The BSP also lowered the reserve requirement for big banks and nonbank financial institutions with quasi-banking functions by 200 bps to 12%. This was followed by a 100-bp reduction in the reserve requirement of thrift and rural banks to 3% and 2%, respectively.

Mr. Diokno also said the central bank has also modified supervisory regulations to encourage lending support to small businesses that are vital to the economy.

The BSP has allowed banks to count their loans to micro-, small-, and medium-sized enterprises (MSMEs) as part of compliance with BSP’s reserve requirements. This is aside from reducing the credit risk weight for these loans.

“As a result, we have seen a 971% growth in the average daily balance of banks’ loans to MSMEs from April to August 2020,” Mr. Diokno said.

He said the central bank is ready to deploy more measures when the need arises.

“Still, our toolkit is far from exhausted, and we stand ready to do more if needed,” Mr. Diokno added.

The Monetary Board will hold its fifth rate-setting meeting on Oct. 1.

Mr. Diokno earlier said the current policy stance might remain unchanged for the next few quarters because the central bank has already moved in anticipation of the pandemic’s economic fallout.

Analysts said the central bank would keep its prudent pause, which started when it kept policy rates unchanged at its Aug. 20 rate-setting meeting.

“As mentioned by Gov. Diokno, they have released P1.4 trillion in liquidity already, and that’s more than a fourth of the national budget. I believe that they will wait, maybe until next year before moving or cutting again,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a text message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said reserve requirements are also likely to be unchanged although further easing in either rates or banks’ reserves could not be completely ruled out.

“Any additional monetary easing measures would somewhat make up for limited funds for any additional fiscal stimulus,” he said.

President Rodrigo R. Duterte signed the P165-billion Bayanihan to Recover as One Act (Bayanihan II) last week. This is a sequel to the P275-billion Bayanihan I, which was the government’s initial response to the crisis. — Luz Wendy T. Noble

Loans issued by big banks grow at slowest quarterly pace in seven years

September 21, 2020 | 12:32 am

AMID THE LIMITED economic activity in the second quarter, the country’s biggest banks became less profitable as they boosted loan loss reserves with soured loans on the rise and issued loans being the slowest in seven years. Read the full story.

Big banks face challenging 2nd quarter

September 21, 2020 | 12:32 am

By Marissa Mae M. Ramos, Researcher

The latest edition of BusinessWorld’s quarterly banking report showed the combined assets of 46 universal and commercial banks grew 7.56% to P18.165 trillion in the April-June period, from P17.837 trillion a year earlier.

The second-quarter asset growth was faster than 7.06% in the first quarter, but was slower compared with 9.71% a year earlier.

The first-quarter figures were based on 41 banks due to incomplete data when banks’ statements of conditions (SOCs) were compiled on June 9. The five U/KBs excluded in the previous quarter were Australia & New Zealand Banking Group Ltd., Bank of America, Bank of China, Chang Hwa Commercial Bank Ltd., Manila branch, and First Commercial Bank Ltd. Manila branch.

Bank loans, which made up about 53.78% of big banks’ assets in the second quarter, totaled P9.770 trillion, up 5.37% from last year’s P9.272 trillion. This is slower than the 9.73% year-on-year growth in the previous quarter, as well as the 10.25% growth a year ago.

The loan growth recorded in the second quarter was the slowest in seven years, or since the second quarter of 2013 when loans grew by 4.38%.

In terms of profitability, the median return on equity (RoE) slipped to 4.89% from 5.17% in the first quarter and 9.13% in the second quarter of 2019. RoE measures how well a company makes use of the money from shareholders to generate income and is calculated as the ratio of net profit to average capital.

BDO Unibank, Inc. continues to have the most assets among big banks at P3.263 trillion, followed by Metropolitan Bank & Trust Co.’s P2.338 trillion and Bank of the Philippine Islands’ (BPI) P2.246 trillion.

BDO likewise issued the most loans in the second quarter at P2.19 trillion, followed by BPI at P1.426 trillion and Metrobank at P1.303 trillion.

Among banks with assets of at least P100 billion, state-run Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LANDBANK) had the fastest year-on-year asset growth at 25.09% and 21.18%, respectively. Bank of Commerce followed with 16.85%.

DBP had the fastest growth in loans issued, with a year-on-year rise of 18.14%, followed by Rizal Commercial Banking Corp. with 12.37% and China Banking Corp. with 10.57%.

BDO had the most deposits with P2.608 trillion. LANDBANK came in second at P1.923 trillion, followed by BPI at P1.764 trillion.

BAD LOANS
Soured debts held by big banks rose during the quarter as nonperforming loans hit P212.283 billion, 12.93% more than the P187.98 billion in the preceding quarter.

Soured loan — gross bad loans in proportion to total gross loans — worsened to 2.02% in the second quarter from 1.93% in the preceding three months.

Similarly, their nonperforming asset ratio — nonperforming loans and foreclosed properties in proportion to total assets — went up to 0.91% from 0.86% in the previous quarter.

As a percent of total assets, foreclosed real and other properties inched down to 0.3%.

Loan loss reserves among big banks totaled some P261.538 billion in the second quarter, more than P191.631 billion in the first quarter and P162.777 billion in the second quarter of 2019.

Banks’ coverage ratio, which is the ratio of the total loan loss reserves to gross bad loans, increased to 123.2% from 101.94% in the previous quarter and 113.2% last year.

Commercial banks’ ability to absorb losses from risk-weighted assets also improved as their median capital adequacy ratio — a measure of bank solvency — rose to 20.65% from 18.33% in the preceding quarter.

The ratio remains well above the regulatory minimum of 10% set by the BSP as well as the international minimum standard of 8%.

BusinessWorld Research has been tracking the financial performance of the country’s big banks on a quarterly basis since the late 1980s using banks’ published statements.

The full version of BusinessWorld’s quarterly banking report will soon be available for download on www.bworldonline.com.

BIR’s notice of discrepancy reinstated

September 21, 2020 | 12:31 am

THE Bureau of Internal Revenue (BIR) will now issue a notice of discrepancy to inform taxpayers of their tax deficiencies as part of an audit, replacing the notice of informal conference (NIC).

BIR Commissioner Caesar R. Dulay issued Revenue Regulations (RR) No. 22-2020 dated Sept. 15 amending a provision of RR No. 12-1999 to replace the old notice with the notice of discrepancy to speed up the assessment process.

“No difference, (we) changed the name to be more appropriate because during the informal conference, what happens really is a discussion of findings of discrepancies. So it’s more appropriate to refer to it as notice of discrepancy,” BIR Deputy Commissioner Marissa O. Cabreros said in a text message on Friday.

As part of the agency’s audit process, a BIR officer records the tax discrepancies of a taxpayer in the initial investigation report.

The notice of discrepancy will be sent to a taxpayer that was found to have tax deficiencies, giving them a chance to explain the discrepancy in their tax returns within five up to 30 days from receipt of the notice. This process is called “discussion of discrepancy.”

“lf the taxpayer disagrees with the discrepancy/discrepancies detected during the audit/investigation, the taxpayer must present an explanation and provide documents to support his explanation,” the BIR said.

Ma. Lourdes Politado-Aclan, a director from the Tax Advisory & Compliance division of P&A Grant Thornton, said the BIR should fully evaluate the taxpayer’s records before the notice of discrepancy is issued.

“We hope that the BIR has fully evaluated the taxpayer’s records prior to the issuance of the notice so that the notice will only include the real possible tax exposure of the taxpayer. Otherwise, the initial five-day period to present which shall not extend beyond 30 days will be too short for the taxpayers,” she said in a text message on Thursday.

Ms. Cabreros said the maximum discussion period of up to 30 days is long enough for taxpayers to explain their side.

“Thirty days is quite long, besides taxpayers are in the best position to explain the discrepancies as the data came from their own documents/books/records,” she said in a text message on Sunday.

Ms. Cabreros noted taxpayers can request for an extension, but this will be evaluated based on the merits “to force speeding up disposition of cases.”

However, a taxpayer would be issued a preliminary assessment notice if the BIR does not accept the taxpayer’s explanation and he failed to settle the tax deficiencies.

The preliminary assessment notice can also be issued if the taxpayer does not agree with the results. It will be issued 10 days after the discussions have concluded, upon endorsement of the investigating BIR officer.

The new regulation will take effect on Oct. 1 or 15 days after it was published on Sept. 17

The issuance of notice of discrepancy was reinstated in 2018 after it was removed from the BIR’s audit process in 2013.

When the issuance of the notice of informal conference was removed from the assessment process, taxpayers would receive the preliminary assessment notice immediately after BIR officers found enough basis to audit them for tax deficiencies. — Beatrice M. Laforga

Jewelry that spells out love

September 21, 2020 | 12:06 am

By Joseph L. Garcia, Reporter

WHEN times are hard, we all need something soft and comforting to get us through the days.

While the metals and jewels used in jewelry designer Paul Syjuco’s new collection PS ILY are undeniably sturdy, gentle lines and curves soften their effect, making the pieces cozy and pleasant to the eye. Rounded pearls and diamonds add to the effect. In an e-mail to BusinessWorld, Mr. Syjuco said, “I retain the use of noble metals as I am a fine jeweler, but yes, they do represent permanence as well in that gold holds value, diamonds are forever and pearls will forever represent purity.”

According to a press release, the initials “PS” in the line’s name refer not only to Mr. Syjuco’s initials but also to the short version of the Latin post-scriptum, written to end a letter before saying “I Love You” — which is what “ILY” stands for. “It’s an acronym that everyone is familiar with. Something warm and human and comforting,” Mr. Syjuco said. “The line is a play on the concepts of affection and love: through hugs and kisses, through hopes of infinity, promises of eternity, the time we invest in relationships.”

This is then reflected in circular themes (such as concentric circles of gold and either mother-of-pearl or onyx inlay surrounding a single round-cut diamond), diamond-encrusted infinity symbols (seen in rings, bangles, pendants, and earrings), and the O’s in an X and O line (as in “hugs and kisses”). “I wanted to create pieces that were warm, comforting and organic. Even the Xs and Os are drawn in round wires that have a soft appearance, and provide an interesting font. These are available in different gold options but I prefer the warmer tones of yellow and rose gold for most designs,” he said. “It’s meant to be playful, light, and accessible.”

The lightness in this theme belies what most of us have seen in 2020. Mr. Syjuco’s brand has also faced its own issues during the pandemic: “We are affected, as much as everyone, due to restrictions. We lost a lot of time in terms of the annual collection I come out with every October. It usually takes me a year to prepare; from designing to producing on average 100-200 one-off pieces for a collection,” he said. “Since we just started operating our workshop recently, I’m looking at releasing select pieces by the end of the year hopefully. I have a couple of collaborations as well coming out in the short term; it’s everyone helping out each other during these times.

They are still not at 100% capacity and “It seems it’ll stay this way till I don’t know when,” said Mr. Syjuco. The fact that their retail outlets have been closed since the start of lockdown is “quite difficult for something quite tactile as jewelry, which you like to try on first before deciding. There’s a large personal experience that’s lacking. It’s been a challenge. But this new line also hopes to sustain our skilled craftsmen in that through every order is another day of work for them. It’s based on pre-orders so we don’t waste any materials to produce. We are a small operation and that helps us to be agile also in terms of situations.”

One thinks that it’s easy to eschew luxury during times like these, when necessities such as food and healthcare are paramount. One must not forget though, that some of the world’s oldest surviving firms — those that have ridden out pandemics, economic crashes, and wars — are those that deal in luxury: “things we don’t really need.” Asked about the endurance of luxury despite all the odds, Mr. Syjuco said, “Trust is paramount in our business. We’re very thankful to our patrons for the confidence in us; in what we deliver to them. The fact is, in whatever the situation, life will go on. Milestones will happen, birthdays will be celebrated, people will get married. These are the things that people live for or make them feel alive.

“What a privilege it is for us to make our clients’ celebrations more special. Maybe it’s this mindset that makes us want to deliver more than expected. Because it’s the relationships that we value most,” he said.

While throughout history, jewelry has served a purpose during hard times — you can sell them or pawn them if needed — for Mr. Syjuco “It’s a reward for making it this far in unprecedented times. People want to feel happy. People will always need to express themselves. This has always been of more consideration versus intrinsic values.”

The pandemic has of course dampened any plans for grand launches, but has also changed the significance of the collection’s theme of love — developed last year before the COVID-19 pandemic — during these times. “The most crucial realization I had during the past months is that you realize what is most important and meaningful to you. PS ILY is a reflection of where I am personally,” Mr. Syjuco was quoted as saying in a press release. He explained to BusinessWorld, “I believe it has only strengthened the idea even more. In isolation during lockdown, a lot of people must have realized many things. Love must have been something on top of the list. For others, for yourself, to a higher being or power.”

The entire PS ILY is available for pre-order at shop.paulsyjuco.com. E-mail aum@paulsyjuco.com for more inquiries. Follow @paulsyjuco on Instagram.

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