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Dine-in cap to be raised to 50-75% of capacity

THE trade department is preparing an order increasing the capacity limit for restaurant dine-in operations to 50% in areas under general community quarantine (GCQ), starting July 21.

Trade Secretary Ramon M. Lopez in a mobile message to reporters Monday said that a new memorandum circular will be released this week increasing the dine-in cap to 50% under GCQ and 75% under modified general community quarantine.

The department has released guidelines increasing the operating capacity of salons and barbershops to those levels starting July 16.

The government plans to announce which areas will retain or shift their quarantine status after July 15, the end of the extended quarantine, on that day.

Mr. Lopez said health guidelines at restaurants, salons, and barbershops should be more strictly implemented after the Health department warned the public that the coronavirus disease 2019 (COVID-19) could be airborne.

The department will be recommending the optional use of 18-inch acrylic dividers and air purifiers to hinder transmission.

“We should be stricter in implementing the health protocols, and customers to be extra careful, which means still wearing masks if not eating at the moment, safe social distancing and frequent sanitation of hands,” Mr. Lopez said.

“We just have to manage and live with the virus. It will be here to stay. Need to balance health and economy and time to restart the economy. Provide more livelihood at this time.”

The World Health Organization (WHO) said more studies need to be done on airborne transmission, noting that to its knowledge, the virus is mainly spread through contact and respiratory droplets. The agency said the form of transmission may occur in certain medical procedures and in crowded indoor spaces including restaurants and fitness classes.

The WHO released its report after 239 scientists signed a letter asking it to acknowledge potential airborne transmission of the virus.

Dr. Carolina L. Tapia, Head of Research of Preventive and Community Medicine at St. Luke’s College of Medicine, said in a mobile message on Monday that two-meter physical distancing will not be enough if the virus is airborne.

In the case of this type of transmission, she said, talking and singing can transmit the virus, especially in enclosed spaces.

“Adequacy of indoor ventilation should be ensured — the air should be free flowing. Or use a HEPA (high efficiency particulate air) filter. Overcrowded, poorly ventilated areas are high risk,” she said. — Jenina P. Ibañez

Early reopening could worsen PHL economy — Nomura

THE Philippine economy could be at risk from reopening too early while infection levels rise, according to Nomura Global Market Research.

“Since the relaxations, the rise in daily new cases has unfortunately accelerated, suggesting increased transmission risk as mobility has increased,” it said in a note issued Monday.

“This poses downside risks to our growth forecast due to a prolonged COVID-19 outbreak as a result of the premature reopening, particularly as the remaining hot spots are in major cities like Manila and Cebu,” it added.

Nomura Global projected a contraction of 4.8% in 2020 in May, a reversal from its 6.7% baseline growth forecast issued last year. This is also a more pessimistic outlook than the official 2-3.4% contraction projected by the government.

The firm expects the second quarter to post the biggest contraction of 11.5%, followed by contractions of 5.4% and 2.1% in the third and fourth quarter, respectively.

Coronavirus disease 2019 (COVID-19) infections have risen by 2,124 to 56,259 as of Sunday, according to health officials. University of the Philippines researchers forecast infection totals of 60,000 by the end of July.

Nomura Global said mobility in major Philippine business cities has been plateauing and could even drop soon as fears emerge of new lockdowns.

“In our recent survey of corporates in ASEAN, businesses in the Philippines see the lowest pick-up in operating capacity in the coming months compared with regional peers,” it said.

The report also noted that Congress has yet to hold a special session during its recess to discuss stimulus bills which further contribute downside growth risks.

Nomura Global earlier flagged the Philippines for having one of the smallest fiscal packages in the region for COVID-19 containment measures, alongside Indonesia and India. — Luz Wendy T. Noble

Renewables board studying changes in power contracting rules

THE National Renewable Energy Board (NREB) is considering adjusting the minimum level of electricity contracted from renewable energy developers to improve the Philippines’ chances of hitting a target of 35% of power from renewables over the next decade.

In a webinar hosted by the Philippine Energy Independence Council, AC Energy, Inc. President and Chief Executive Officer Eric T. Francia said the Philippines might not meet its clean energy share target with the current Renewable Portfolio Standard (RPS)-mandated threshold annual incremental percentage of at least 1% renewable energy in the electricity sold by distribution utilities and retail electricity suppliers.

“If we want RE (renewable energy) to grow to 35% by 2030, then that annual increment should be increased to 2.5% by 2025,” Mr. Francia said.

NREB Chairperson Monalisa C. Dimalanta told BusinessWorld that a team tasked to monitor the implementation of the RPS is discussing such a move.

“We need to adjust the 1% minimum percentage increase in order for us to hit the target RE share. We are already discussing this in the RPS Composite Team,” she said.

If renewable energy developers can build 2,700 megawatts of capacity over the next three years, Mr. Francia said, the proposed 2.5% yearly threshold requirement will encourage the creation of more projects, leading further to the desired share of renewables in the energy mix by 2030.

“I think it’s incumbent on the developers to demonstrate that we have what it takes to build the first 2.7 gigawatts of capacity. And once we’re able to demonstrate that then, I think the DoE (Department of Energy) and NREB may ought to reconsider increasing that annual increment from 1% to 2.5% to encourage more renewables to be built and for us to reach the 35% output target from renewables by 2030,” he said.

However, Ms. Dimalanta said the board wants to keep the current minimum in the first or second year of the RPS implementation so “we can focus on compliance and providing room for stakeholders to get familiar with the system, particularly the RE Market where the RE Certificates are lodged and monitored to determine compliance with RPS requirements.”

Both RPS rules for on-grid and off-grid areas are in effect this year. These require the entire power industry to source a portion of their energy requirements from renewable sources.

As of the end of March, there are 127 eligible renewable energy power plants with a total capacity of 2,221.15 MW from where power distributors can source clean power.

Meanwhile, Ms. Dimalanta said the board is trying to keep power rates steady and unaffected by the RPS.

She added that the upcoming green energy auction program is “key” to helping power utilities comply with the requirements set by the renewables contracting rules.

“If we are able to implement the auction system in facilitating mandated participants, such as DUs (distribution utilities) and ECs (electric cooperatives), in contracting for RE to meet their RPS requirements, we are confident that we can demonstrate that RE, along with [other] technologies, is cost-competitive,” Ms. Dimalanta said. — Adam J. Ang

Transfer pricing: related party transactions now made known

Humanity has a natural desire to know about its ancestry and to keep the family name alive. Over and above the inclination of man to keep records of births and relationships, genealogy has been critical to chronology, particularly in the early years of human history.

In ancient law, genealogical records were essential to establish tribal relationships for the division of land. As the ancient law prohibited marriage within certain degrees of consanguinity or affinity, it was necessary to have a record and knowledge of genealogical relationships.

Similarly, in the business world, the proper reporting of related party transactions (RPTs) to government authorities serves an important purpose — to mitigate, if not to eliminate, the possibility of tax evasion.

In Revenue Regulations (RR) No. 19-2020, the Bureau of Internal Revenue (BIR) acknowledges that transactions around the world have become more complex and have been subject to abuse by taxpayers with intent to evade taxes by concluding transactions at unreasonable prices, resulting in the reduction of the tax base. This usually happens between related parties. Significant risks arise when RPTs are not conducted at arm’s length and are used as a conduit to channel funds from the company to another related party. It includes the risk of material misstatement in the financial statements resulting from inappropriate accounting, and non-identification or nondisclosure.

Philippine Accounting Standards (PAS) 24 on Related Party Disclosures must be effectively implemented to address such risks. As such, RR No. 19-2020 requires the submission of BIR Form No. 1709 and its supporting documents in compliance with the guidelines prescribed by the related revenue issuances on submitting the necessary attachments to the Annual Income Tax Returns. BIR Form No. 1709 — Information Return on Related Party Transactions (Domestic and/or Foreign) replaces BIR Form No. 1702H — Information Return on Transactions with Related Foreign Persons.

Under RR No. 19-2020, RPT refers to the transfer of resources, services, or obligations between a reporting entity and a related party, regardless of whether a price is charged. Examples of RPTs are purchases of sales of goods (finished or unfinished), rendering or receiving of services, leases, transfer of research & development, and settlement of liabilities on behalf of an entity.

An entity is related to a reporting entity if any of the following conditions apply: (1) the entity and the reporting entity are members of the same group; (2) one entity is an associate or joint venture of the other entity; and (3) the entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or the parent of the reporting entity.

In all cases, the substance of the relationships between entities, and not merely the legal form, should be taken into account.

On the other hand, a person or close member of that person’s family is related to a reporting entity if that person: (i) has control or joint control of the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or a parent of the reporting entity.

RR No. 19-2020 mandates the reporting entity or a related party to observe two crucial requirements. First, there must be separate disclosures on transactions and outstanding balances for various categories, such as the parent, entities with joint control or significant influence over the entity, and key management personnel and other related parties. Second, the following information shall be provided for the said categories: (1) the amount of the transactions; (2) the amount of outstanding balances, including commitments, and their terms and conditions; (3) provisions for doubtful debts related to the number of outstanding balances; and (4) the expense recognized during the period for bad or doubtful debts due from related parties.

The procedures and guidelines for filling out BIR Form No. 1709 include: (1) the “business overview of the ultimate parent company” referred to in Part IV (A) of the form shall include the profile of the multinational group to which the taxpayer belongs; (2) the “functional profile” referred to in Part IV (B) of the form shall include a broad description of the taxpayer’s business operations, as well as the business of the related parties with whom the taxpayer has transacted; and (3) the required attachments are (a) certified true copy of the relevant contracts or proof of transaction; (b) withholding tax returns and the corresponding proof of payment of taxes withheld and remitted to the BIR; (c) proof of payment of foreign taxes or ruling duly issued by the foreign tax authority where the other is a resident; and (d) certified true copy of advance pricing agreement or any transfer pricing (TP) documentation.

Previously, under RR No. 2-2013 or the Transfer Pricing Guidelines of 2013, TP documentation was not required to be submitted with the tax returns. However, as stated in the new guidelines, a certified true copy of the advance pricing agreement or any TP documentation must be attached to BIR Form No. 1709. Hence, taxpayers having RPTs, but without any TP documentation, are advised to start preparing such documents that would justify that the RPTs are done at arm’s length. Such preparations may be done internally or outsourced to a third-party service provider.

RR No. 19-2020 shall take effect after 15 days following its publication in a newspaper of general circulation, which took place on July 10. Nonetheless, taxpayers must be alert to subsequent BIR issuances that could discuss the covered period for fiscal years, if any.

The regulations enjoin tax examiners to examine RPTs thoroughly and ensure that revenues are not understated and that expenses are not overstated in the financial statements.

With RR No. 19-2020, it is hoped that RPTs will be subject to proper taxes that could, in turn, support the government’s efforts to ease the impact of the current pandemic. Therefore, it is crucial to accurately record and report RPTs, especially from a tax perspective.

In the same vein, having an account of pedigrees of ancestors and relatives helps us understand and appreciate our history and heritage. Those who were inspired to record such accounts believed that their God, Jehovah, is the great Genealogist or Keeper of records of creation, beginnings, birth, and descent. He is “the Father, to whom every family in heaven and on earth owes its name.” — Ephesians 3:14,15.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Renato R. Balisacan, Jr. is a manager of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

ABS-CBN shutdown: 1972 and 2020

On the morning of May 6, TV viewers in Metro Manila woke to an off-the-air ABS-CBN Channel Two. Instead of the morning news and talk-show, static drowned the TV screen. On May 4, Republic Act No. 7966, the law granting ABS CBN a 25-year franchise to broadcast on television and radio, prescribed. The following day, May 5, the National Telecommunications Commission (NTC) issued a Cease and Desist Order stopping ABS-CBN from operating its television and radio broadcasting stations absent a valid Congressional franchise as required by law. The law cited was Republic Act No. 3846 or the Radio Control Law of 1963.

Almost 48 years earlier, something similar happened. On the morning of Sept. 23, 1972, TV viewers in Metro Manila woke to an off-the-air ABS-CBN Channel Two and Channel Four with static also filling TV screens. At about midnight on Sept. 22, 1972, military troops of the Department of National Defense (DND) entered and seized the ABS-CBN Broadcast Center along Bohol Avenue in Quezon City. The DND was enforcing Letter of Instruction (LOI) No. 1, dated Sept. 22, 1972. In the LOI, President Ferdinand E. Marcos (FM), citing Proclamation No. 1081 and his capacity as commander-in-chief of the military and police, ordered the DND “forthwith to take over and control or cause the taking over and control of all such newspapers, magazines, radio and television facilities and all other media of communications wherever they are” to prevent them from being used “for propaganda purposes against the government and its duly constituted authorities and for any purpose that tends to undermine the faith and confidence of the people in our Government.” In the LOI, FM also declared that there is “a criminal conspiracy to seize political and state power in the Philippines and to take over the Government by force and violence the extent of which has now assumed the proportion of an actual war against our people and their legitimate Government.”

In LOI No. 1-A, issued on Sept. 28, 1972, FM ordered the DND “to sequester the ABS-CBN Broadcasting Corporation and the TV and Radio network and facilities owned and operated by the Associated Broadcasting Corporation.” The LOI defined “sequestration” as the “seizure of private property or assets in the hands of any person or entity in order to prevent the utilization, transfer or conveyance of the same for purposes inimical to national security, or when necessary to protect the interest of the Government or any of its instrumentalities.” It includes “the taking over and assumption of the management, control and operation of the private property or assets seized.” The LOI accused “the owners, principal officers and key personnel” of ABS-CBN and ABC of engaging “in subversive activities against the Government and its duly constituted authorities” and participating “in a conspiracy to overthrow the Government.” They were promoting “the agitational propaganda campaign, conspiratorial activities and illegal ends of the Communist Party of the Philippines” and were “indispensable instruments in the assassination attempt against the President of the Republic of the Philippines by maligning him.”

Accused of criminal conspiracy against the Philippine government, ABS-CBN finally terminated the services of its employees on Oct. 31, 1972. In November that year, its president, Eugenio “Geny” Lopez, Jr., wrote to Defense Secretary Juan Ponce Enrile expressing his desire to sell his company to the government. Government responded by arresting him and detaining him in Fort Bonifacio. He was kept there for almost five years until his escape on Sept. 30, 1977.

Following the issuance of LOI No. 1-A, the government took over the management and operation of some of the sequestered broadcast stations and facilities. The Banahaw Broadcasting Corporation (BBC), owned by Roberto Benedicto, a close FM associate, took over TV Channel Two. The National Media Production Center (NMPC) under the Ministry of Information took over TV Channel Four, which became the government’s official TV station. The Kanlaon Broadcasting System (KBS), another Benedicto-owned television station, took over the provincial stations to serve as platforms for the government’s mass media peace-and-order campaigns.

In June 1986, President Corazon C. Aquino returned to ABS-CBN most of its radio and TV stations on a gradual and scheduled basis, with the notable exception of TV Channel Four which remained the government’s TV channel. On Sept. 16, 1986, ABS-CBN resumed daily broadcasts for both TV and radio.

On March 30, 1995, President Fidel V. Ramos signed into law R.A. 7966, which took effect on May 4. This law renewed the legislative franchise earlier given to ABS-CBN in Republic Act No. 5730 in June 1969.

In 1972, FM sought the demise of ABS-CBN. In 2020, President Rodrigo R. Duterte (PRRD) is seeking the same.

FM used the DND, and therefore a military solution, to achieve his aim. He succeeded — but only temporarily as it turned out. The military solution to the ABS-CBN problem had to be carried out in the context of an emergency and extraordinary measures were used: installing a revolutionary government through a coup d’etat in the guise of martial law, branding the owners and operators of a prominent company enemies of the Republic, arresting its CEO, and sequestering its broadcast properties. In short, FM used the traditional tactics of an autocrat who is getting rid of an enemy.

By contrast, PRRD used the Office of the Solicitor-General (OSG), and therefore a legal solution, to achieve his aim. He too succeeded, but whether only temporarily is too early to say. The legal solution to the ABS-CBN “problem” was carried out in a state of perfect normalcy: no state of emergency was declared to fight enemies of the state and threats to the Republic, no one from ABS-CBN has been arrested and its broadcast properties remain unmolested. PRRD was able to get rid of his enemy without extraordinary measures because fortuitous circumstances allowed him to use the law — R.A. 3846 and an expired R.A. 7966 — as a weapon against his enemy. The all-win outcome: enemy gone, rule of law ostentatiously flaunted as “upheld,” and diffusible blame with Malacañang appearing as the least culpable.

 

Millard O. Lim is a lecturer at the Department of Political Science, Ateneo de Manila

Agripreneurs: Experts walk their talk

Last of Two Parts

When Benigno Peczon ventured into tilapia growing, the start-up cost was large, especially for the deepwell and land digging since the area was previously planted with sugarcane.

Labor was not cheap. An added concern was worker safety since harvesting was done at about 1 a.m. to get to market at 4:30 a.m. There are snakes in the vicinity of the ponds. Over the years of operation, feeds increased progressively. Weather, especially the rains, also posed a challenge since they often caused fishkills.

The never-ending problem was marketing. Size was always an issue with the viajeros — the fish sizes were never right, they were either too small or too big — and thus, prices offered were always on the low side.

What eventually killed the business was the non-stop rise in diesel prices and theft. But he learned valuable lessons. The key factor for financial success was to be there full-time. The operation has to be near a river as pumping water from a well is expensive. Tilapia food has to be grown or created on one’s own. The market should not depend on viajeros. There are opportunities for value-adding, such as in fillet. Overall, fish farming can be profitable, if one puts sufficient time, technology and savvy business sense into the venture.

DUCK FARMING
When Ray Almario moved to Laguna, he put up a duck farming project in Pagsanjan with 6,000 ready-to-lay ducks. After seven weeks, he started to break even, which was about 50% of the population already laying.

As he is accustomed to record management, he kept vital information on every quantifiable management parameter. The major operating expense is feeds, accounting for about 75% of cost. He supplemented his feeds with snails from Laguna Lake. Snails are said to make the shell thicker for balut making, make the yolk more yellowish and make the egg a lot tastier.

Eventually, he expanded into balut production, using rice hulls or garung instead of electric incubators to reduce the cost.

Ten years ago, duck raising was profitable, both as a backyard and commercial business. The industry standard breakeven of 50% laying can even be lowered to 45% by substituting snails and other local agriculture by-products for feed. Proper feeding and management can improve the average laying up to 70%, equivalent to a gross profit margin of approximately 20% to 25%.

The biggest challenge facing the duck industry then was the quality of the breeding stock, which continued to deteriorate due to the absence of imported breeds to upgrade the locals. The situation resulted in a substantial deterioration in the egg production period from the usual 14 to 18 months profitable and economic life (productive laying period) to only seven to eight months. Equally depressing was the deterioration in egg quality. While the eggs were previously suitable for balut making, their use was downgraded to the lower-priced salted egg.

But overall, duck raising is a simple, easy-to-manage, less risky business, with no known pests and diseases, but with a ready market.

NOVELTY PRODUCT
Tito Contado ventured into the production of a highly researched tropical medicinal plant, noni (Morinda citrifolia, Linn).

In the last four years, the venture has produced an average of 60,000 bottles (500 milliliters each) and 100,000 capsules a year worth around P27 million, adding value to a natural resource with zero economic value. The venture employs 35 people, providing income to 30 rural families who gather and collect the wild noni fruits, plus 60-70 more jobs for marketing people and a dozen more for supply providers.

The company does not have its own plantation. Mr. Contado cited that it would require a lot of capital to buy at least five hectares of land plus the waiting time of 2.5 years before harvest. What they are doing instead is to hire gatherers. It is a win-win situation. The gatherers are paid well and are able to earn incomes they did not have before. For its part, the company is able to have the fruits they need in just one month.

For three years now, PhilNONI has been sold by leading drug store Mercury Drug, which has an extensive network of branches all over the country. It has also been exported for about 10 years now, first to the USA, then to Hong Kong, China, South Korea, and Dubai. The company attributes its market success to its knowledge of product quality, its constant study of the different available marketing approaches, adoption of the best approach, as well as participation in local and international trade fairs.

FARMING AMID COVID-19
According to Billy Gualberto, the COVID-19 pandemic will produce models that will make farming more profitable than it used to be. There will be a lot of jobless non-skilled workers that only farm enterprises can accommodate.

Reasonably priced, short-term, fast growing vegetables like the “pinakbet pack” (eggplant, squash, string beans, and other vegetables that are used in the vegetable stew) will remain in demand.

Farmers, fishermen, livestock and poultry raisers can be pooled to support a model that is provided with financing for seeds, fertilizers, pesticides, small farm equipment and machinery, cool-chain storage/transport units, with a centralized hub (agroservice centers or bagsakan), backed by a digital platform that is linked directly with organized consumer groups (churches of various denominations and sects, subdivisions, cooperatives, even wet markets, etc.) and processing companies.

A digital platform that will use this model, similar to what is being used in India, is in the final stages of development. There are, however, many considerations to make the system applicable, viable, and sustainable, especially for the investors, suppliers/farmers, the logistics providers, as well as the buyers/consumers.

In addition, his group is also working on a project for an Integrated Food Processing Terminal (IFPT), which is meant to resuscitate the dying coconut industry, increase the farmers’ income, escalate the economy of the towns where it will operate, add to the country’s export earnings and lift the country’s agricultural GDP. At least 10 potential sites with huge coconut areas have been identified, out of which three IFPT projects will be launched this year, particularly in Zamboanga City, Tupi-Polomolok in South Cotabato, and Mulanay, Quezon.

LESSONS
Farming is not a walk in the park. There are a lot of challenges across the whole supply chain from inputs and production, down to marketing. There is much to learn from people who get their hands dirty in the field. What makes the experience of the above experts special is that they can use them to influence and shape agricultural policies towards a more dynamic, modernized and competitive agricultural sector. n

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

 

Rolando T. Dy is the Co-Vice Chair of the MAP AgriBusiness Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.

map@map.org.ph

rdyster@gmail.com

http://map.org.ph

The coronavirus isn’t steamrolling elections — yet

By Daniel Moss

THE CORONAVIRUS that has upended the world’s economic and social life is turning out to be a mediocre election campaigner. The lesson of recent contests in Asia is that pre-existing conditions haven’t gone away and will likely be decisive, even in the bitterly fought US campaign.

Singapore’s general election Friday, among the first of the COVID-19 era, saw a big swing against the entrenched incumbent party that positioned itself as best placed to steer the country through the pandemic. With a history of unbroken rule since independence in 1965, four swiftly passed stimulus bills and relatively few virus deaths, Prime Minister Lee Hsien Loong’s People’s Action Party banked on receiving a strong mandate. Instead, the opposition made historic gains.

The government was on the defensive, but not so much for the way it handled the disease. Issues that have percolated for years — population size, immigration, inequality and checks on executive power — forced their way to the forefront. The coronavirus was present, though not the be all and end all. It also took a back seat in special elections in Australia and Malaysia. Electoral battles, as always, need to be picked, and fought shrewdly, on local conditions.

There’s been a growing expectation as the pandemic deeply disrupted societies that it would deliver political victory, or oblivion. Certainly, the coronavirus has magnified important bread and butter issues — the global economy is suffering the deepest downturn in almost a century, and more than half a million people have lost their lives. Many concerns are now viewed — and some given greater urgency — through a COVID prism.

Yet the past week has shown there’s been no flight to safety; nor has there been a mad rush to throw office-holders out. In Australia, Prime Minister Scott Morrison’s fairly successful handling of the virus, despite a major recent setback in Melbourne, wasn’t enough to overcome the fiasco from devastating wildfires six months ago. A mayor who had been among his biggest critics hung on to a federal parliamentary seat for the opposition Labor party July 4; a few weeks earlier, Morrison had liked his chances of taking the district. The same day, a by-election for a state assembly slot in Malaysia said more about dynamics among the parties claiming to represent the Malay majority than it did about COVID-19. Former premier Najib Razak’s Barisan Nasional retained the seat in thumping fashion, getting 10 times more votes than other parties combined.

In Singapore, opportunities did beckon for the opposition to run with the COVID issue. After initial plaudits, Singapore soon ran into challenges. There were U-turns on masks, whether the spread would require a lockdown (yes, still partly in place), and criticism from a surge in infections in crowded dormitories for foreign workers. The Workers Party mostly shied away from a direct fight on this turf. It tried hard to portray itself as responsible opponents who would fight on selected issues with grassroots appeal, rather than simply blast the PAP on everything, everywhere. Leader Pritam Singh said Saturday that “we’ve got to keep our feet grounded,” the Straits Times reported.

The Workers Party instead chipped away at the government’s stance on taxation, sought greater protection for local employees, advocated a minimum wage and a beefed-up social safety net. An opposition politician from another party sparked a fracas by saying the government had toyed with the idea of boosting the population to 10 million, a claim the PAP strenuously denied. Headcount is now 5.7 million, up about 40% since 2000. Complaints about overcrowding on subways, housing prices, and job opportunities for locals have been building over the past decade.

The campaign closed with opposition parties urging voters to deny the government a blank check in parliament. The PAP received what would, in many countries, be thought of as a great mandate. But in a Singapore context, it was a shock: The opposition won 10 of 93 seats up for grabs. The PAP’s share of the vote fell to 61.2% from almost 70% in 2015. It would be a stretch to say that Singapore is heading toward a two-party system similar to other developed countries. But if you squint, you can just about see the beginning of the outline.

Two of the ruling party’s worst results have come in the past decade, and the issues by and large haven’t changed much. Those vying for office elsewhere, or seeking to keep power, need to have a vision that both encompasses, and also transcends, the tussle against infectious disease. It’s not enough to hope that a badly handled pandemic battle, or even a pretty-well executed one, will be decisive. Local conditions are hard to replicate precisely. Comparisons between Singapore and, say, the US, only go so far, given differences of history and political philosophy. But perceptions of inequality, worries about job security, an aging society, and healthcare resonate in most places and have been gnawing away at democracies long before COVID-19. In this, Singapore has been firmly in the mainstream.

Hammering President Donald Trump for his bungled response to the pandemic is justified. It’s unlikely to be enough, as his Democrat opponent Joe Biden seems to appreciate. Biden’s announced plan Thursday to revive the economy from the virus-related recession with a promise to “build back better” is a good start. That means a focus on manufacturing, infrastructure and clean energy, advancing racial equality and modernizing the “caring” economy.

COVID-19 certainly can shift priorities. Politicians would discount it at great peril. But for whatever challenges a post-pandemic normal might bring, Asia’s most recent electoral experiences show old realities are far from extinguished. Politicians everywhere would do well to learn from it.

BLOOMBERG OPINION

Mexico surpasses Italy to post world’s 4th-highest coronavirus death toll

MEXICO CITY — Deaths in Mexico from the coronavirus pandemic rose above 35,000 on Sunday, with the Latin American country overtaking Italy for the world’s fourth-highest death total, according to Reuters data.

But leftist President Andres Manuel Lopez Obrador said on Sunday that the pandemic was “losing intensity” in Mexico, and blamed what he called “conservative media” for causing alarm.

Mexico on Sunday recorded 276 additional fatalities and 4,482 new infections to bring its coronavirus death toll to 35,006, with 299,750 confirmed cases. Italy has recorded 34,954 deaths and 243,061 cases. Mexico trails the US, Brazil and the UK in total deaths.

While Italy appears to have tamed the virus, the pandemic is showing few signs of easing in Mexico, where the government has faced criticism for reopening its economy too soon.

Lopez Obrador said he was briefed on the pandemic this past week and was optimistic.

“The report is positive, good. The conclusion is that the pandemic is going down, that it is losing intensity,” he said in a video message.

Lopez Obrador also backed Hugo Lopez-Gatell, Mexico’s deputy health minister and coronavirus czar, after criticism of his handling of the crisis.

Lopez-Gatell has kept revising his projections for total fatalities and as recently as June forecast up to 35,000 deaths through October. In early May, the estimate was 6,000.

The coronavirus death toll per million residents in Mexico, whose population numbers about 120 million, is the 16th highest in the world, according to data by research firm Statista.

But Mexican officials say the true toll is likely much higher due to limited testing. A Reuters analysis of funeral-home data in May indicated a toll more than double the reported figures.

Several former officials have criticized Lopez Obrador’s administration for its management of the epidemic.

Former Health Minister Salomon Chertorivski, who held the post from 2011 to 2012, said on Thursday the government had reopened the economy before meeting globally established criteria for doing so. He added that Mexico might need to impose a new lockdown.

“There are three fundamental variables: a reduction in the last 14 days in the numbers of contagions, reduction in recent days in the number of deaths, and reduction in the number of hospitalized people,” Mr. Chertorivski told Mexican newspaper Reforma. “None of those three parameters were achieved.” — Reuters

One in three South Korean COVID-19 patients improve with remdesivir

SEOUL — One in three South Korean patients seriously ill with COVID-19 showed an improvement in their condition after being given Gilead Sciences, Inc.’s antiviral remdesivir, health authorities said.

More research was needed to determine if the improvement was attributable to the drug or other factors such as patients’ immunity and other therapies, they said.

Remdesivir has been at the forefront of the global battle against COVID-19 after the intravenously administered medicine helped shorten hospital recovery times in a U.S. clinical trial.

Several countries including South Korea have added the drug to the list of treatment for the disease caused by the novel coronavirus. There is no approved vaccine for it.

In its latest update on the drug, Gilead said on Friday an analysis showed remdesivir helped reduce the risk of death in severely ill COVID-19 patients but cautioned that rigorous clinical trials were needed to confirm the benefit.

The Korea Centers for Disease Control and Prevention reported on Saturday results from a first group of 27 patients given remdesivir in different hospitals.

Nine of the patients showed an improvement in their condition, 15 showed no change, and three worsened, KCDC deputy director Kwon Jun-wook told a briefing.

The result had yet to be compared with a control group and more analysis was needed to conclude remdesivir’s benefit, Kwon said.

In June, South Korea asked Gilead to supply enough of its drug to treat more than 5,000 COVID-19 patients in preparation for a possible second wave of infections.

South Korea has been battling small but persistent outbreaks of the new coronavirus, with 62 new cases reported as of Sunday, bringing the country’s total to 13,479 cases with 289 deaths. — Reuters

Jokowi wants wider virus testing as Indonesia cases top 75,000

INDONESIAN President Joko Widodo wants to ramp up coronavirus testing by 50% to 30,000 daily as infections exceeded 75,000 in Southeast Asia’s most populous nation.

Jokowi, as the president is known, instructed his ministers on Monday to boost the nationwide testing capacity from a previous target of 20,000 a day by opening more laboratories especially in 8 areas that include the capital region of Jakarta and neighboring West and East Java.

“I want us to intensify the testing, tracing and treatment with priorities in 8 provinces,” he told members of his cabinet before the meeting.

Indonesia reported 1,681 new cases in the 24 hours to midday Sunday, bringing the total to 75,699, with an additional 71 people succumbing to the virus. The death toll has risen to 3,606 in Indonesia, the most in Southeast Asia. More than half of the new cases on Sunday came from East Java and Jakarta, two of the country’s hotspots.

Infections in Indonesia accelerated after governments eased curbs

Jakarta had extended a transition period to exit from a partial lockdown by two weeks to the middle of this month, as the city continued to report hundreds of new coronavirus cases a day. It posted a record daily spike on Sunday.

The pandemic has hit Indonesia harder than the 1997 Asian financial crisis, battering small and big businesses alike, Jokowi said last month. On July 9, when the country reported the highest daily number of cases, Jokowi called the situation a “red signal.” — Bloomberg

Hamilton wins Styrian Grand Prix in Mercedes one-two

LONDON — Six-time world champion Lewis Hamilton dominated the Styrian Grand Prix in a Mercedes one-two on Sunday to celebrate his 85th Formula One (F1) win and move a step closer to Michael Schumacher’s record of 91 victories.

Finnish teammate Valtteri Bottas, winner of last weekend’s season-opener that was also held without spectators at Austria’s Red Bull Ring, finished 13.719 seconds behind with his championship lead cut to six points.

Red Bull’s Max Verstappen completed the podium, more than half a minute behind Hamilton, on a sunny afternoon at his team’s home track.

Hamilton’s victory, something of a cruise past the empty grandstands, was his first since Abu Dhabi in November and extended his record run of successive points finishes to 35 races.

“What a weird year it is, but it’s great to be back up here, to be driving with this kind of performance,” said Hamilton, who started from his 89th pole position after a sensational lap in a rain-drenched qualifying and remained in complete control.

“I’m so grateful to be back in first place. It feels like a long time coming since the last race last year, and to come back in after a difficult weekend last week is a great, great step forwards.”

Sunday’s race was the first time a circuit has hosted two back-to-back rounds in the same championship year, with the original calendar ripped up and rewritten due to the COVID-19 pandemic.

Ferrari, far from Schumacher’s glory years at the turn of the century, provided one of the major talking points with Charles Leclerc and Sebastian Vettel colliding on the opening lap and retiring from the race.

It was the second time in four races that the pair had clashed.

“I have done a very bad job today, I let the team down. I can only be sorry even though I know it’s not enough,” said Leclerc of his rash move on the inside of Vettel.

“I put all the efforts of the team in the bin.”

TAKING A KNEE
Hamilton, who wore a Black Lives Matter T-shirt on the starting grid before the anthem of the Austrian state of Styria, again took a knee with other drivers as part of an anti-racism campaign.

Bottas, who started fourth and now has 43 points to Hamilton’s 37, said his afternoon had been about damage limitation.

“I still got good points, still leading [overall] so it’s not too bad. Yesterday wasn’t ideal,” he said.

Verstappen had started on the front row but was passed by Bottas in the closing stages after fighting hard to keep position.

“I tried to make it a bit difficult, because he was anyway going to get by one lap later,” said the Dutch driver. “But at least it was a bit fun because the race was boring.”

It was less so behind him, with Red Bull’s Alex Albon finishing fourth and Lando Norris fifth, a result that moved the 20-year-old McLaren driver up to third in the standings.

Norris, third last week for his first F1 podium, overtook both Racing Point drivers on the final lap.

Mexican Sergio Perez was sixth for Racing Point, after damaging his front wing in a clash with Albon, and ahead of Canadian teammate Lance Stroll. Australian Daniel Ricciardo was eighth for Renault.

Spaniard Carlos Sainz completed McLaren’s double points finish in ninth, and collected a bonus point for fastest lap, and Russian Daniil Kvyat picked up the final point for AlphaTauri.

Apart from the Ferrari duo, Renault’s Esteban Ocon was the only non-finisher. The Frenchman was retired by the team as a precaution due to a suspected cooling problem. In last weekend’s opener, only 11 cars finished. — Reuters

Country’s push to repeat as SEA Games overall champion made harder

APART from the challenges being posed by the ongoing coronavirus disease 2019 (COVID-19) pandemic on the training regimen of Filipino athletes, presenting a threat to the Philippines in its quest to repeat as Southeast Asian (SEA) Games overall champion is the decision recently by Vietnam to reduce the number of events when it hosts the biennial sporting meet next year.

In an online meeting among SEA Games Council Federation officials last week, it was made known that host Vietnam is looking at only staging 36 sports with the pandemic still a going concern.

The number is down from the 56 sports featured in last year’s edition of the Games which Philippines hosted and, eventually, topped.

As per the list presented by Vietnam in the meeting, the sports were divided into three categories.

Category 1 has the compulsory sports athletics and aquatics (swimming and diving), while Category 2 has archery, badminton, basketball (3×3 and 5×5), billiard snooker, boxing, canoeing/kayak, chess (xiangqi), cycling (road and mountain bike), dancesport, fencing, football, futsal, golf, gymnastics (artistic, rhythmic, aerobic), handball (indoor and beach), judo, karate, muay, pencak silat, petanque, rowing, sepak takraw, shooting (pistol, rifle, shotgun), table tennis, taekwondo, tennis, volleyball (indoor and beach), weightlifting, wrestling (Greco Roman and freestyle), and wushu.

In Category 3 are finswimming, bodybuilding, kurash, kickboxing, and vovinam.

Not included in the list are sports where the Philippines did well last year and contributed to the country’s total haul of 149 gold, 117 silver and 121 bronze medals to win the overall championship anew after 14 years.

Notable omissions are arnis, which gave Team Philippines 14 gold medals, skateboarding (6), obstacle course (6), jiu-jitsu (5) and esports (3).

Local sports officials and stakeholders acknowledge that at the onset it is a setback in the country’s push to build on the gains that Philippine sports had in last year’s SEA Games and to claim the overall title once again.

They said that with a fewer number of sports to compete in, the narrower the chance of hauling more medals for Filipino athletes.

But they still remain hopeful that their appeal to include more sports in the 2021 SEA Games be considered. This is apart from their commitment to do everything they can to support Filipino athletes in their preparation despite the challenges, including that from COVID-19.

The next SEA Games Council Federation meeting is on July 21.

In the history of the biennial sporting meet, Thailand has had the most overall championships with 13, followed by Indonesia with 10. Myanmar, the Philippines and Malaysia each have two while Vietnam has one.

The Philippines was the overall champion in 2005 and 2019, years where it served as host.

The 2019 SEA Games was the biggest to date, featuring 56 sports. — Michael Angelo S. Murillo

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