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Local shares decline on profit taking after rally

By Denise A. Valdez, Senior Reporter

LOCAL SHARES surrendered to profit taking on Tuesday following a rally that brought the main index to its highest level since the coronavirus pandemic started.

The Philippine Stock Exchange index (PSEi) shed 69.95 points or 0.97% to close the session at 7,108.67. The broader all shares index also trimmed 25.71 points or 0.6% to end at 4,228.55.

“The market was down today on profit-taking after it moved up substantially on the last two trading sessions on overbought condition,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Tuesday.

“With a lofty valuation of the PSEi despite the higher contraction in GDP (gross domestic product) in the third quarter than estimated, the market is bound to correct as what happened today,” he added.

Despite the weaker-than-expected economic backdrop, the market’s decline on Tuesday is necessary to help it maintain a stronger momentum, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.

“The PSEi ended with substantial losses as selling pressure picked up, which was to be expected as it hovered around its eight-month high, Mr. Mangun said in an e-mail.

“Trading volumes came in at a whopping P12.4 billion, more than double the daily average of about P6 billion as investors remain confident in the current environment,” he added.

Value turnover stood at P12.95 billion with 8.27 billion issues switching hands, higher than the previous day’s P11.93 billion with 10.3 billion issues.

But after the correction on Tuesday, Mr. Mangun said the PSEi “may rebound and begin to move higher” on the back of optimism that quarantine restrictions will be further eased before December.

Contrary to the local market, other Asian stocks were treading in green territory on Tuesday due to another positive news of a coronavirus disease 2019 (COVID-19) vaccine.

On Monday, news wires reported that United Kingdom-based AstraZeneca Plc has seen a 70% success rate in its COVID-19 vaccine. This followed news in the prior weeks that the COVID-19 vaccines of Pfizer, Inc. and BioNTech SE and Moderna, Inc. were similarly recording positive results.

Nearly all sectoral indices at the PSE posted losses on Tuesday. Mining and oil dropped 140.43 points or 1.66% to 8,276.43; holding firms lost 109.89 points or 1.48% to 7,314.40; industrials cut 136.17 points or 1.46% to 9,178.32; services fell 17.01 points or 1.09% to 1,540.36; and financials slid 3.17 points or 0.21% to 1,474.40.

Property was the only index that posted gains, improving 9.84 points or 0.27% to close at 3,566.62 on Tuesday.

Decliners outnumbered advancers, 134 against 101. Some 40 names ended unchanged.

Net foreign selling grew to P621.19 million on Tuesday from P351.89 million in the previous session.

Peso strengthens on vaccine news

THE PESO strengthened versus the dollar on Tuesday after drug firm AstraZeneca and its partner University of Oxford claimed their vaccine can be 90% effective.

The local unit closed at P48.145 against the greenback on Tuesday, rising by six centavos from its P48.205 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s session at P48.24 to a dollar, which was also its weakest showing for the day. Meanwhile, it climbed to as high as P48.14 versus the greenback during the session.

Dollars traded rose to $747.75 million on Tuesday from $425.4 million the previous day.

A trader said the peso strengthened as global economic sentiment continued to improve on news of progress in COVID-19 vaccine candidates.

“The peso exchange rate was stronger amid continued positive developments on vaccines for COVID-19, especially those by AstraZeneca and University of Oxford,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

AstraZeneca said on Monday its COVID-19 vaccine was 70% effective in pivotal trials and could be up to 90% effective, giving the world’s fight against the global pandemic a third new weapon that can be cheaper to make, easier to distribute and faster to scale-up than rivals, Reuters reported.

The British drug maker said it will have as many as 200 million doses by the end of 2020, around four times as many as US competitor Pfizer, Inc. Seven hundred million doses could be ready globally as soon as the end of the first quarter of 2021.

The vaccine on average prevented 70% of COVID-19 cases in late-stage trials in Britain and Brazil. The success rate rose to 90% in a group of trial participants who accidentally received a half dose followed by a full dose. The efficacy was 62% if the full dose was given twice, as it was for most study participants.

The 90% efficacy finding was a happy accident, AstraZeneca admitted, noting that it resulted from a dosing error during the trials. The half dose-first regimen will enable the company to seek approval based on far higher effectiveness than 62%, which was still enough for a regulatory nod based on prior discussions.

AstraZeneca Chief Executive Pascal Soriot said the smaller initial dose means limited supplies could stretch even further to vaccinate more people.

The faster rollout means countries that had been drawing up plans to ration vaccines can distribute them more widely, helping to eventually halt the social and economic disruption of a pandemic that has killed 1.4 million people.

The World Health Organization’s (WHO) chief scientist Soumya Swaminathan said the WHO is anxious to see full efficacy and safety data and encouraged other vaccine developers, saying vast quantities and a variety of shots will be needed.

The AstraZeneca vaccine uses a modified version of a chimpanzee cold virus to deliver instructions to cells to fight the target virus, a different approach from Pfizer and Moderna, which rely on new technology known as messenger RNA (mRNA).

AstraZeneca will now prepare regulatory submission of the data to regulators around the world and seek an emergency use listing from the WHO to speed up availability in poor countries.

For today, the trader sees the peso ranging from P48.05 to P48.25 versus the dollar, while Mr. Ricafort expects it to move from P48.10 to P48.20. — KKTJ with Reuters

China hits Trump adviser for creating ‘chaos’

THE CHINESE government on Monday accused US National Security Adviser Robert O’Brien of inciting hostilities after his remarks on the South China Sea dispute and Chinese actions in Hong Kong and Taiwan.

“He blatantly accused China on no ground, grossly interfered in China’s internal affairs, deliberately exaggerated regional tensions and attempted to sow discord between China and the Philippines,” the Chinese Embassy said in a statement on Monday evening.

Mr. O’Brien in a teleconference from Manila on Monday reaffirmed US support for its allies in the Indo-Pacific region against China over its unfair trade practices, intellectual property theft, as well as “human rights violations in Xinjiang with the Uyghur people, the extinguishing of the flame of democracy in Hong Kong and attempts to coerce Taiwan.”

He said there is a consensus among US republicans and democrats on the US stand against China’s aggression in the region.

The embassy said Mr. O’Brien’s statements countered the intention of his visits to the Philippines and Vietnam to promote peace and stability, instead creating chaos to serve US interests.

“We firmly oppose these remarks which are full of Cold War mentality and wantonly incite confrontation,” it added.

China said the US is not a party to the sea dispute but it frequently sends warships and planes to the South China “for military provocations and goes as far as using the electronic codes of civil aviation planes of the Philippines and other regional countries to carry out espionage flights.”

“The US is the biggest driver of the militarization of the South China Sea and the most dangerous external factor endangering peace and stability,” it added.

It “fanned the flames everywhere, stirred up confrontation among the countries in the region, interfered in the efforts of China and relevant ASEAN (Association of Southeast Asian Nations) countries to peacefully negotiate and manage disputes, and seriously undermined regional peace and stability,” it added.

China further noted that the US invokes provisions of the United Nations Convention on the Law of the Sea even if it had refused to join it.

The United States government on Monday turned over almost a billion pesos worth of precision-guided missiles and munitions to the Philippine military to help it fight terrorists linked to Islamic State in the country’s south.

It donated precision-guided missiles and munitions, including 100 TOW-2A missiles, 12 ITAS, and 24 MK-82s worth $18 million or about P868 million.

Mr. O’Brien, who led the turnover ceremonies, met with his Philippine counterpart Hermogenes C. Esperon, Jr. and Foreign Affairs Secretary Teodoro L. Locsin, Jr.

He reaffirmed the US commitment to activate the Mutual Defense Treaty in case the Philippines is attacked by an enemy.

Mr. O’Brien also welcomed Manila’s decision to defer a plan to end a visiting forces agreement (VFA) — a military pact on the deployment of troops for war games — with the US.

‘NATIONAL INTEREST’
The Philippine presidential palace on Tuesday said the country would keep its hands off rising tensions between the US and China.

“We do not want to take part in that drive for hegemony,” presidential spokesman Harry L. Roque told an online news briefing.

“We will assert our national interest and we would want a peaceful resolution to the West Philippine Sea dispute,” he added, referring to eastern parts of the South China Sea that include the Philippines’ exclusive economic zone.

The Chinese Embassy said there had been agreements at the recently concluded China-ASEAN Summit to improve dialogue and advance consultations on a South China Sea Code of Conduct, which seeks to ease tensions in the waterway.

“We urge the US side to respect China’s territorial sovereignty and maritime rights and interests in the South China Sea, respect the joint efforts of China and ASEAN countries for maintaining a peaceful and stable South China Sea and stop interfering and inciting confrontation,” it added.

Mr. O’Brien on Monday said the US in July aligned its official position on the 2016 United Nations arbitral ruling on the South China Sea. The tribunal had favored the Philippines and rejected China’s historical nine-dash line claims to more than 80% of the waterway.

The resources in the disputed waters “belong to the Philippine people,” Mr. O’Brien said.  “They don’t belong to some other country, that just because they may be big, and they may be bigger than the Philippines,” he added, alluding to China.

“That’s just wrong, and that’s why Secretary Pompeo said in February: ‘Any armed attack on the Philippine Armed Forces, aircraft or public vessels in the South China Sea will trigger our mutual defense obligations,’” Mr. O’Brien said.

US Secretary of State Mike Pompeo in February 2019 said any attacks on Philippine aircraft or ships in the South China Sea would trigger a response from the US under the Mutual Defense Treaty.

His comments sought to reassure the Philippines amid China’s island-building activities in the South China Sea. — Charmaine A. Tadalan

Coronavirus cases nearing 422,000; 8,185 dead — DoH

THE DEPARTMENT of Health (DoH) reported 1,118 coronavirus infections on Tuesday, bringing the total to 421,722.

The death toll rose by 12 to 8,185, while recoveries increased by 196 to 386,792, it said in a bulletin.

There were 26,745 active cases, 83.7% of which were mild, 7.9% did not show symptoms, 5.3% were critical, 2.8% were severe and 0.25% were moderate.

Caloocan City reported the highest number of new cases at 89, followed by Davao City and Laguna at 52 each, Quezon province at 47 and Quezon City at 46.

Ten duplicates were removed from the tally, while six cases tagged as recovered were reclassified as deaths, the agency said. Eleven laboratories failed to submit their data on Nov. 23, it said.

About 5.2 million people have been tested for the coronavirus as of Nov. 22, according DOH’s tracker website.

The coronavirus has sickened about 59.6 million and killed 1.4 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).

About 41.2 million people have recovered, it said.

DoH on Monday warned the public against going to crowded places during the holiday season to avoid infection.

It said wearing a mask or face shield would not protect a person from the virus if he is in a crowded area. — Vann Marlo M. Villegas

Irrigation official blames logging for Luzon flood

AN IRRIGATION official on Tuesday blamed illegal logging for the floods that submerged many parts of Luzon this month, saying water from Magat Dam was not the major cause of flooding in Cagayan Valley and Isabela provinces at the height of Typhoon Vamco.

The agency had also followed protocols and gave enough information to local governments before water from the dam was released, Administrator Ricardo R. Visaya told a House of Representatives hearing on Tuesday.

He also presented a matrix showing that while Magat dam had 7,128 cubic meters of water during the typhoon locally named Ulysses, the dam released only 6,706 cubic meters.

Mr. Visaya said strictly enforcing laws against illegal logging and mining would have prevented the floods.

He also said flood control is not part of the functions of Magat dam in Isabela. But the agency always tries to ease flood waters during the rainy season, he added.

During the hearing, lawmakers asked the dam operator to revisit protocols on water release to prevent a repeat of devastating floods that submerged many parts of Luzon this month.

Speaker Lord Allan Q. Velasco said dam protocols should be reviewed to ease the destructive power of typhoons.

“It seems to me that we are merely acting on early warnings and not being proactive in times of critical danger,” Party-list Rep. Bernadette Herrera-Dy told the hearing.

“There doesn’t seem to be one agency that can account for what truly caused the flooding, or analyze forecasts and recommend measures to mitigate damage in the future,” she added. Dam protocols were created in 2006.

Meanwhile, the House disaster committee adopted a resolution calling for a declaration of climate emergency in the country.

This would commit the entire country and its fiscal resources to a policy of climate resilience, said Albay Rep. Jose Maria Clemente S. Salceda, who wrote the resolution.

“It commits us to a national policy of adopting disaster and climate resilience as ultimate state objectives,” he said in a Viber message. “The most concrete provision commits the budget process to this end.”

Mr. Salceda also said the declaration of a climate emergency would boost the country’s leverage to seek concessions from heavily industrialized economies.

“Small island countries are already pursuing legal action on the matter of climate reparations,” he said in a separate statement. “The Philippines should consider making amicable manifestations, if not outright joining such suits.” — Kyle Aristophere T. Atienza

Duterte says hundreds fired for graft

President Rodrigo R. Duterte on Monday night said hundreds of state officials had been fired under his anti-corruption drive.

“I’ll do nothing except to go after people who are into graft and corruption,” he said at a televised meeting with Cabinet officials.

Mr. Duterte vowed to strengthen efforts to eradicate state corruption, which is one of his priorities before his term ends in 2022.

Mr. Duterte has been naming erring government officials of the Executive branch during the national telecast of his weekly speeches since last month.

Among those he named on Monday were Bureau of Internal Revenue (BIR) employees accused of pocketing tax collections.

Mr. Duterte in the past named officials from the Bureau of Customs, Bureau of Immigration and Department of Public Works and Highways for alleged corruption. — Gillian M. Cortez

Nationwide round-up (11/24/20)

Senator pushes for probe into PITC’s P33-B ‘parked’ funds

A SENATOR on Tuesday pushed for an inquiry into the operation of the Philippine International Trading Corp. (PITC) amid allegations of some P33.4 billion in “parked” funds. “It appears like government agencies are using PITC to skirt the end-of-the-year validity of appropriations,” Senate Minority Leader Franklin M. Drilon said in his privilege speech during Tuesday’s session. “PITC is being used as a pawn. PITC effectively provides a mechanism to hide inefficiencies in government.” Mr. Drilon said government agencies deposit unobligated and undisbursed funds in PITC, instead of reverting the money to the National Treasury. He also cited the Commission on Audit reports indicating that PITC received millions worth of service fees from 2016 to 2019. “We should likewise ask: what percentage of this service fee is being remitted to the national coffers?” he said. Finance Secretary Carlos G. Dominguez III had announced that some P20 billion worth of loan will be extended by the Land Bank of the Philippines and the Development Bank of the Philippines to the PITC for the procurement of vaccines. Mr. Drilon said the government should reconsider borrowing for the procurement of coronavirus disease 2019 (COVID-19) vaccines and instead compel the PITC to return the P33.4 billion. — Charmaine A. Tadalan

VP Robredo asks Supreme Court to dismiss Marcos electoral protest

VICE President Maria Leonor G. Robredo’s lawyers asked the Supreme Court to dismiss the electoral protest of losing bet Ferdinand R. Marcos, Jr. given the widening of her lead after the recount in the three pilot provinces where fraud allegedly occurred. In a comment filed before the high court sitting as the Presidential Electoral Tribunal, the lawyers asked for an affirmation of the result of the recount of ballots in the pilot provinces of Camariñes Sur, Negros Oriental, and Iloilo. They said the election protest should be dismissed citing Rule 65 of the 2010 Presidential Electoral Tribunal Rules, which provides that a case should be dismissed if a protestant failed to make out his case. Under the rule, a protestant is allowed to choose three provinces that show massive fraud and will be used as “test cases” by which the tribunal will decide if they would proceed with the protest. Ms. Robredo also said that the Commission on Elections (Comelec) gave this same position in its compliance filed early this month. “For four years, protestant Marcos was afforded the opportunity to substantiate his allegations of massive electoral frauds, anomalies, and irregularities,” the lawsuit read, “However, aside from these statements to the media, protestant Marcos has not presented an iota of evidence to substantiate his claims of fraud.” The lawyers also said that Mr. Marcos misled the tribunal and that there is no merit in the allegation that there was election fraud in the Comelec-Election Record and Statistics Division’s Voters Identification Division. The vice president’s motion cited the compliance of the poll body saying that the report relied upon by Mr. Marcos “has no probative value.” “Thus, applying the strictest standards and procedure of law,” the results of the revision, recount and re-appreciation of the ballots from the three pilot provinces rendered moot the issue of Annulment of Elections in the Provinces of Lanao del Sur, Maguindanao, and Basilan,” it said. Mr. Marcos filed the protest in June 2016 after narrowly losing to Ms. Robredo. A resolution released in October 2019 showed that Ms. Robredo’s lead against Mr. Marcos in the pilot provinces of Camariñes Sur, Iloilo, and Negros Oriental rose by around 15,000 votes after initial recount. — Vann Marlo M. Villegas

Prosecutor in Palparan, Korean businessman cases passes away

SENIOR Assistant State Prosecutor Juan Pedro “JP” C. Navera died on Tuesday at the age of 49, the Department of Justice (DoJ) confirmed. “The whole DoJ family mourns his death. It was a great loss to us. He was one of our best,” Justice Secretary Menardo I. Guevarra said in a text message. Mr. Navera led the prosecution of retired Army general Jovito S. Palparan, Jr. and two other military officers over the abduction and illegal detention of student activists who went missing in 2006. The three were convicted in 2018 and sentenced to reclusion perpetua or 20-40 years of imprisonment. He also led the case on South Korean businessman Jee Ick Joo who was killed by police in 2016, among other cases. Mr. Navera “was at once an embodiment of a principled, fair, no-nonsense, brilliant and diligent lawyer. He was a quintessential professional,” the National Union of Peoples’ Lawyers (NUPL) said in a statement. The NUPL were the private prosecutors in the case against Palparan. The group said they were “awed at how he shattered Gen. Palparan’s testimony to smithereens on cross.” They also said, “While we have very minor differences in tactics, he respected us and cooperated with us as co-equals in a very productive collaboration.” — Vann Marlo M. Villegas

Over 2,500 activists illegally arrested — BAYAN

MORE than 2,500 activists have been illegally arrested over “questionable grounds,” Bagong Alyansang Makabayan (BAYAN) spokesperson Teodoro A. Casiño said during the Senate’s continuing hearing on red-tagging. “2,596 have been illegally arrested and 973 arrested and detained, many on questionable grounds, with the arresting police or military unit routinely planting evidence to make it appear that they are armed combatants,” Mr. Casiño said on Tuesday. This includes 57 from BAYAN, Kilusang Mayo Uno, Gabriela and National Federation of Sugar Workers in Bacolod City. Mr. Casiño was also representing Gabriela, Kilusang Mayo Uno, Anakbayan League of Filipino Students, and the Alliance of Concerned Teachers before the Senate committee looking into the alleged links of opposition political parties to armed communist groups. Opposition lawmakers skipped the panel’s first hearing on Nov. 3, which was attended by security officials. Mr. Casiño also denied accusations made by former rebel Jeffrey Celiz that he is a member of the Communist Party of the Philippines (CPP) and that BAYAN, among other political organizations, serves as a front organization for the CPP-New People’s Army-National Democratic Front. “My accusers have failed to provide any document, any incident, or any piece of competent, admissible and credible evidence to prove their allegations against me,” he said. — Charmaine A. Tadalan

Regional Updates (11/24/20)

Quezon farmers, fisherfolk get P1.42-B aid from DA

THE DEPARTMENT of Agriculture (DA) distributed P1.42 billion worth of assistance to farmers and fisherfolk in Quezon province who were affected by recent typhoons while their livelihoods have been weakend by the coronavirus disease 2019 (COVID-19) pandemic. During his visit to Quezon province on Monday, Agriculture Secretary William D. Dar said among the interventions given include P177 million under the P4.5 billion cash and food subsidy for marginal farmers and fisherfolk program funded by Republic Act No. 11494 or the Bayanihan to Recover as One Act. “The Province of Quezon and the whole Region of CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon) are very important to our agricultural economy. The region continues to showcase agri-industrialization in many ways, but of course you will need to have continuous production, and a value-adding agri-business approach will be critical,” Mr. Dar said. DA Regional Director Arnel V. de Mesa said there will be around 80,000 beneficiaries in the entire CALABARZON, including 35,523 farmers in Quezon. In addition, the Philippine Center for Postharvest Development and Mechanization gave P304 million worth of farm machinery, the Philippine Coconut Authority allotted P35 million worth of farm inputs and a coconut-dairy intercropping project, and the Bureau of Fisheries and Aquatic Resources gave P118 million for the province’s fisherfolk. The DA regional office gave P640 million worth of agricultural inputs and facilities, including the establishment of cold storages in Candelaria and Tayabas, and a trading post in Sariaya. Quezon farmers can also avail of zero interest loans from the Agricultural Credit and Policy Council worth P147.8 million, according to Mr. Dar. “With the help of everyone, our country will recover. The agriculture sector will play a huge role in the recovery of the country’s economy,” he said. — Revin Mikhael D. Ochave

Davao City taps SGV for investor guide 

THE Davao City government has tapped SyCip Gorres Velayo & Company for the development of a guide for local and foreign investors, including micro, small, and medium enterprises (MSMEs). Christian D. Cambaya, unit head of the Investors Assistance and Servicing Unit of the Davao City Investment and Promotions Center (DCIPC), said the “Doing Business in Davao” brochure will be a concise and comprehensive source of information on business options in the city, even amid the coronavirus pandemic. “Likewise, the guide also provides vital information on the tax incentives/exemption offered by the local government to MSMEs,” Mr. Cambaya said. The guide is targeted for launch before the end of the year. — Maya M. Padillo

Davao Oriental cacao farmers get skills, knowledge upgrade from Malagos

DTI-ROG

SEVEN cacao farmer organizations in Davao Oriental have undergone skills and knowledge enhancement training from Davao City-based Puentespina Farms, maker of the award-winning Malagos Chocolate. In a statement on Tuesday, the Department of Trade and Industry said the five-day training was implemented under its Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth) Project. The participants also received an orientation on Good Agricultural Practices, process requirements from the Department of Agriculture’s Regulatory Division as part of the project’s package of assistance. The cooperatives are also beneficiaries of the Philippine Rural Development Program, a World Bank-funded program implemented by the Agriculture department, which provided cacao post-harvest facilities that were turned over in July. Puentespina Farms will also forge a marketing deal with the cooperatives, which will include continuing technical support through the Malagos Cacao Development Center. “If there’s proper technology transfer, the farmers could get a premium price for their produce, since they are targeting to provide and offer fine cacao both to the local and international markets,” Puentespina Farms owner Charita Puentespina said. Davao Oriental currently has 5,291 hectares planted to cacao with another 2,658 hectares available for expansion, according to the provincial government’s website. There are over 4,900 farmers involved in the sector with an existing annual production capacity of 3,191 metric tons. Governor Nelson L. Dayanghirang, during the post-harvest facilities turn-over ceremony, said the provincial government will continue to support cacao development as an additional income for farmers, especially those dependent on coconut production. “We don’t want our farmers to rely solely on coconut. Currently, we are embattled with the low price of copra. We must be resourceful to augment our income, try other possible means, like intercropping cacao,” he said.

Bids sought for parts of South Commuter Railway project

THE Transportation department has started seeking bidders for the construction of viaducts, bridges, nine stations, and a depot for use by the South Commuter Railway project.

“The Department of Transportation (DoTr)… through its procuring agent, Procurement Service (PS) of the Department of Budget and Management (DBM), now invites sealed bids, including technical and financial bids, from eligible bidders for the four contract packages,” the department said Tuesday.

The packages on offer are: building and civil engineering works for an 8.5-kilometer railway viaduct, including elevated stations in Alabang and Muntinlupa; building and civil engineering works for a 12.8-km railway viaduct, including elevated stations in San Pedro, Pacita, Biñan and Santa Rosa; building and civil engineering works for a 10.28-km railway viaduct, including elevated stations in Cabuyao and Calamba; and building and civil engineering works on a 22-hectare depot with buildings and facilities in Banlic, a barangay of Calamba.

The South Commuter Railway project is financed by the Asian Development Bank (ADB).

“Works will be procured through an open competitive bidding in accordance with ADB’s procurement policy,” the department said.

“The open competitive bidding will be conducted in accordance with the procedures in the bid documents following the ‘Single-Stage: One Envelope (including technical and financial bids),’ process, without pre-qualification,” it added.

The department added that bids must be submitted to the PS-DBM office in Manila on or before 10 a.m. on March 23, together with a bid security as specified in the bidding documents. — Arjay L. Balinbin

Gym fee rules eased for users unable to work out during lockdown period

FITNESS CENTERS have been required to allow paid-up members who were not able to use their facilities during the lockdown to return without making further payments, the Department of Trade and Industry (DTI) said.

In memorandum circular 20-59 published Tuesday, the DTI also encouraged the industry to extend membership periods or waive fees and penalties incurred during the time their facilities were not allowed to operate.

Membership fees that were paid in advance may be applied to the months after operations resumed, it said.

In the case of chain organizations, franchisors were also encouraged to waive royalty fees and penalties owed by the fitness centers when they were not operating.

The department said that it had been receiving requests to intervene on the matter of royalties and membership fees owed during the non-operating period.

The DTI said that while it recognizes contractual rights, its policy is focused on consumer welfare and encouraging the development of entrepreneurship, especially for small businesses.

Gyms, internet cafes, and test centers were allowed to increase their operating capacity to 75% since the start of November, after lockdown rules were eased for Metro Manila to a status known as general community quarantine (GCQ). The establishments were allowed to operate at full capacity in areas deemed safer and under modified GCQ.

Group workout sessions such as Zumba and yoga classes remain banned. Customers may only remove their masks once they start their individual workouts, during which they will also be required to stay two meters apart.

Gyms were initially allowed to reopen in GCQ areas on Aug. 1, then were temporarily shut during a two-week move to a stricter form of lockdown in areas that included Metro Manila on Aug. 4. — Jenina P. Ibañez

Regional income inequality seen worsening in countries spending less on welfare

INCOME INEQUALITY is expected to worsen in Asia Pacific economies that skimped on social safety nets and welfare spending during the pandemic, according to Moody’s Investors Service.

“Governments with weak social protection systems and low fiscal capacity to raise spending will face particular challenges in tackling income inequality. India, Indonesia and, to some extent, Malaysia and the Philippines stand out in this regard,” it said in a report.

Moody’s said most emerging markets in the region have weak safety nets, with social spending seen lowest in the Philippines, India and Indonesia.

“China, Indonesia, Pakistan and the Philippines are increasing welfare assistance under conditional cash transfer programs,” it said.

The government spent P205 billion for its social amelioration program, which provided cash handouts to about 18 million low-income families over two months at the height of the lockdown.

Only 20% of the 7.6 million Filipinos of pensionable age are covered by either the Social Security System or the Government Service Insurance System, according to the Philippine Statistics Authority.

Moody’s noted that Philippine sin taxes provided a boost to social protections.

“In the Philippines, revenue collections from sin taxes on tobacco, and alcoholic and sugary beverages help to finance the universal healthcare program, representing a double-barreled fiscal approach to enhancing social protection,” it said.

The Department of Finance estimated that taxes generated by tobacco products amounted to P61.47 billion in the first half, while alcohol products raised P27.46 billion.

Less-skilled workers and those armed with only basic education are viewed as more vulnerable even when the pandemic ends, Moody’s said.

Unemployment in the Philippines was 10% in July, easing from 17.7% in April but nearly double the 5.4% year-earlier rate. The July 2020 rate represents 4.571 million jobless people of working age. — Luz Wendy T. Noble

Pagcor to provide P2 billion for evacuation facilities

PHILIPPINE AMUSEMENT and Gaming Corp. (Pagcor) said it will provide P2 billion to help build multi-purpose evacuation centers in provinces vulnerable to typhoons.

Pagcor Chairman and CEO Andrea D. Domingo said in a statement Tuesday that the gaming regulator will fund the project despite the losses it suffered from the suspension of gaming activities during the pandemic.

“Despite our revenue losses, we have committed to provide a long-term solution to the most vulnerable sectors and communities,” Ms. Domingo was quoted as saying.

Pagcor’s net profit fell 97% year on year to P132.675 million in the nine months to September, while gaming revenue fell 60% to P22.327 billion.

Gaming establishments are currently closed or operating at a reduced capacity.

Pagcor said 32 evacuation centers will be constructed in 31 locations. The facilities will be built in Albay, Aurora, Batangas, Camarines Sur, Capiz, Ilocos Sur, Laguna, Marikina, Mountain Province, Northern Samar, Oriental Mindoro, Pampanga, Quezon, Romblon, Rizal, Southern Leyte, Tarlac and Zamboanga del Sur.

Ms. Domingo said the project was first proposed in 2018 and is awaiting input like design and detailed costing.

She said the funds will be sent to local government units hosting the facilities once the details of the project are ironed out.

The centers come in three types — basketball courts that can be repurposed during emergencies as evacuation centers, at a cost of P12.7 million each; roofed arenas with bleachers and toilets that can also be roped in as evacuation facilities, at a cost of P27.9 million each; and P50 million two-storey multi-purpose buildings with store rooms for emergency supplies.

The multiple storms that hit the country during recent weeks are thought to have caused P90 billion worth of damage. — Beatrice M. Laforga

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