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Farmers and fisherfolk share Covid-19 stories from the field

The Philippines has been in various forms of a lockdown since March 16, when the Inter-Agency Task Force (IATF) on Emerging Infectious Diseases set quarantine measures to prevent the spread of the coronavirus. These measures have included restrictions on travel and movements within and outside of communities. And while food is supposedly able to pass through checkpoints unimpeded, small-scale food producers say this is not always the case.

Cathryn Leonaga, a fisherfolk woman from PANGISDA Bataan, said that despite being declared by government agencies as frontliners allowed to pursue their production activities, fisherfolk in their locality who tried to go out to sea to fish were arrested by “bantay dagat” (local sea patrol).

“Instead of buying food, the money they earned is posted as bail for violating the quarantine. If they don’t have money, they are forced to borrow money from other people,” she said.

While food and relief measures are becoming scarce in many areas, some food-producing provinces like Benguet and Tarlac experience an oversupply of vegetables, resulting in both income loss and food wastage.

As our country continues to grapple with the health and economic issues brought about by the current pandemic, another issue looms on the horizon: food security.

In addition to the restrictions they’ve experienced out at sea, fish sellers and fisherfolk like Leonaga have also incurred massive losses from fish spoilage due to the closure of some ice plants. Ven Carbon of the Cebu Tanon Strait Fisherfolk Federation, shared that these losses have been further compounded by limited transportation and other logistical challenges like checkpoint queues lasting hours.

Meanwhile, farmers bringing their produce from farms to the market face similar challenges due to the quarantine. Farmers in Benguet, Tarlac, and Antique reported that they could not bring their produce to major cities.

Monina Geaga, a vegetable farmer from Capas, Tarlac, shared that her high-value crops intended for the Quezon City market couldn’t be shipped, prompting her to sell the vegetables in her village at 1/3 of the original price.

Government aid for farmers and fisherfolk

These insights were shared at the recently concluded webinar, “Kwentuhuan Tayo” which fielded stories from the food producers at the frontlines of COVID-19. This was the first in a three-part webinar series titled “The Better Normal: Re-imagining our food and agriculture system in a post-COVID-19 Future”.

In response to the plight of our nation’s food producers, the Philippine government is providing Covid-19 aid to fisherfolk, farmers, and farm laborers through the Php 2.8 billion Survival and Recovery (SURE) Aid Program of the Department of Agriculture-Agricultural Credit Policy Council (DA-ACPC).

SURE provides loans of up to Php 25,000. each at zero interest for farmers and fisherfolk affected by calamities and disasters.

The Department of Agriculture, through the Financial Subsidy for Rice Farmers (FSRF), is also providing aid to farmers in 24 provinces who are not covered by the Rice Farmers Financial Assistance (RFFA) program, for those tilling one hectare and less.

Farmers and fisherfolk have complained, however, that too many of them are “unqualified” to avail of these aid programs.

“Only those who till one hectare of land and below can avail of the aid,” Randy Cirio, a member of the National Council of Pakisama in Bula, Camarines Sur said. Cirio, like other agriculture advocates, point to poorly crafted and poorly communicated rules and guidelines as the problem.

Despite these challenges, local government units continue to partner with the stakeholders and the civil society organizations to mitigate the effects of the lockdown due to Covid-19.

The province of Laguna executed an Executive Order encouraging all LGUs to buy farm produce from local farmers for relief packs distribution to their affected constituents. Quezon province likewise signed a MOA with Las Piñas City, allowing the LGU to assist the fisherfolk and farmers in transporting and selling their products to urban centers. Davao City’s city government introduced the buyback “Tabang sa Mag-uuma (Buy Back Scheme): Purchase, Repack, and Distribute.” This activity supports the farmers against the loss of livelihood amid the current crisis.

In a post dated May 21, the Department of Agriculture Communications Group particularly emphasized the importance of local chief executives (LCEs) in their key role as “food security czars.” The LCEs are deemed crucial in cascading national policies and sectoral interventions of food production and the entire value chain. “While we rally and steer the agri-fishery industry to propel and reach its optimum potential, it is really the LGUs and respective local chief executives or LCEs that do the rowing, making sure that support mechanisms at the local level are in place and in sync with the priorities at the national level,” Agriculture Secretary William Dar said.

DILG Memorandum Circular No. 2020-080 directs the offices of the provincial agriculturist and the city or municipal agriculturist to conduct an information drive to make farmers aware of all the ongoing interventions of the DA, and to ensure that support mechanisms have been cascaded and are in place.

Edlyn Rosales of PANGISDA Bataan noted in the aforementioned webinar that Covid-19 highlighted the significant contribution of their sector to society. This is something Secretary Dar affirmed in an earlier statement: “The country’s farmers and [fishermen], who we consider as food security ‘frontliners,’ play a crucial part in our fight against Covid-19,” Sec. Dar said. “That’s why it is important that we continue to empower them to ensure continued production and delivery of food to our countrymen.”

#COVID-19 Regional Updates

Missing traditional family reunions as Muslims celebrate Eid’l Fitr at home

ASHREABAI Sinarimbo, a 26-year-old local government worker in Maguindanao, said the usual family reunion during the breaking of the Ramadan fast is one of the things he missed most as Muslims celebrated the Eid’l Fitr on Sunday with gatherings still banned due to the coronavirus disease 2019 (COVID-2019) threat. “It’s sad, because usually after the Eid prayer, we’d visit our relatives and even the graves of those who already departed. We would have kandulis (traditional food offering). Eid has somehow become an annual reunion for our family,” she said in a statement from the Bangsamoro information bureau. For Jamal M. Baulo, a teacher at the Mindanao State University–Malabang Community High School, spending the fasting month of Ramadan at home brought him closer to his immediate family, but still wishes they could have celebrated the Eid with their community. “I feel blessed for this year’s celebration, since I have become more closer to my family since the ECQ (enhanced community quarantine) began, especially most of our family stayed at home. We cannot deny the fact na mas masaya pa rin kapag ginagawa ang Salatul Eid sa ating mga Masjid (that it is still more joyous if we hold the Salatul Eid at our mosque),” Mr. Baulo said. Bangsamoro Chief Minister Ahod ‘Al-Haj Murad’ Ebrahim, in his video message for one of the most important celebrations in the Islamic faith, called on fellow muslims to keep the “patience” and “faith in Allah” as they continue to manage the COVID-19 crisis.

COOPERATION
The national police chief, Gen. Archie Francisco F. Gamboa, lauded Muslims in the country for following health and safety protocols in the observance of the Eid’l Fitr. “I regret that we cannot celebrate Eid’l Fitr this year like we traditionally do because of the ongoing health crisis but I am grateful for the understanding and cooperation of our Filipino Muslim communities,” he said in a statement. There are about 10 million Filipino Muslims living in the Philippines, with majority residing in Mindanao. — with a report from Emmanuel Tupas/PHILSTAR

Lockdown-hit power firms seek relief

THE Philippine power sector is seeking a little breathing space in fulfilling certain obligations in supply contracts, as well as the removal of some charges that are passed on to consumers, as strict quarantine measures negatively impacted its finances.

Both ends of the energy supply chain have been hurting due to lower collections, while continuing to pay some fixed costs to maintain their operations during the enhanced community quarantine (ECQ).

Power producers are appealing to their suppliers to provide them with the same flexibility in payments that it gave distribution utilities (DU) that are purchasing power from their plants. They have also sought a reprieve in loan repayments.

“What we ask is simply any kind of flexibility in our own financial agreements and suppliers, and possible amendments in the market rules to address issues we experienced during this ECQ and issues that we foresee as we slowly transition to the new normal,” Philippine Independent Power Producers Association (PIPPA) Executive Director Anne E. Montelibano said in a presentation before the Joint Congressional Energy Committee hearing last Friday.

“As the effects of COVID-19 (coronavirus disease 2019) and the quarantine differ per area or location, contracts with the generators and the DUs may be adjusted taking into consideration their needs, depending on how the quarantine affected its supply and demand,” she added.

According to PIPPA, they continue to pay their fixed costs despite falling revenues due to the deferment of payments during the quarantine period, as ordered by the Energy Regulatory Commission (ERC).

Ms. Montelibano warned that a prolonged payment delay “will take a toll on their operations,” leading to possible closure or halt in investments for power plants.

“Despite this, our generators adapted and continue to make ends meet in compliance, support, and solidarity with the industry,” she said.

On the distribution side, power utilities in the countryside reported to lawmakers that they have reached out to various agencies, asking them to lift some generation charges, such as contract capacity charges, capital recovery fees (CRF), and minimum energy off-take (MEOT) fees.

The Philippine Rural Electric Cooperatives Association (Philreca) said these charges are still being passed on to consumers despite lower electricity consumption during the quarantine period, resulting in “higher” electricity rates.

“These [charges] will only translate to a higher electricity rate brought about by higher generation charge or component because — even if [there is] lower consumption in electricity — the fixed charges will have to be included and passed on to their [customers] electricity bills,” Philreca Executive Director Janeene D. Colingan said.

The group said only two electric cooperatives (EC) were able to “successfully” secure an adjusted agreement with generation companies regarding these costs.

When asked by Senator Sherwin T. Gatchalian, ERC Chairperson Agnes VST Devanadera explained that the generation costs are under power contracts which can be adjusted on a case-to-case basis and that the commission cannot just issue an advisory on removing these charges.

“Since they are covered by the PSA (power supply agreements), it has to be on a case-to-case basis… We cannot be too fast in issuing [an] automatic advisory on this,” she said.

In an advisory on April 15, ERC reminded distribution utilities “to procure their power requirements in the least cost manner.”

The average collection efficiency of rural utilities went down to 68% in April from 85% in March, based on Philreca’s report.

Marinduque Representative Lord Allan Jay Q. Velasco, chairperson of the House Energy Committee, is considering additional funding for electric cooperatives to aid them financially amid the decline in collections.

“I hope we can put in funding to ECs para matulungan sila (to help them),” the solon said.

The Department of Energy (DoE) reported in the same hearing that while there is a general drop in electricity demand during the quarantine period, there is a marked 40% increase in consumption in residential areas serviced by power utilities. Electricity demand from commercial and industrial sectors remains down.

UTILITIES FACE PENALTIES
In a statement over the weekend, the ERC warned distribution utilities that it will penalize those who will not comply with its advisories on payments of unpaid bills during the ECQ period.

“DUs that will be found and proven to have breached our directives during the national emergency and deviated from the intent of the President to alleviate the financial difficulties of the Filipino people during the crisis will be penalized through the imposition of appropriate fines pursuant to relevant rules and laws,” Ms. Devanadera said.

The agency is being “bombarded” with complaints from electricity consumers on alleged increases in their bills in May, especially from Manila Electric Co. (Meralco), the country’s biggest distribution utility.

On Friday, the agency ordered power utilities to allow customers with 200 kilowatt-hours of consumption and below to pay their unpaid bills during both ECQ and modified ECQ periods in six installments starting June 15.

It also tasked DUs to conduct actual meter readings and to issue new billings not later than June 8.

Only Cebu City and Mandaue City are still under ECQ, while Metro Manila, Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales, Angeles City, and Laguna are under the modified ECQ up to the end of May. The rest of the country is under general community quarantine. — Adam J. Ang

Coronavirus gloom spawns physical, mental health troubles

By Vann Marlo M. Villegas
Reporter

ROBERT REYES, a 39-year-old part-time fitness trainer, used to run outdoors to stay fit. But with various levels of lockdowns in place to contain a coronavirus pandemic that has sickened more than 13,000 in the Philippines, he’s stuck at home.

“I tried running outside but I got apprehended by village police,” he said in a Viber message. “I had to improvise by working out at home using dumbbells and kettlebells and doing yoga.”

Linda L. Varona, head of the Lifestyle Medicine Department of the Adventist Medical Center Manila, said the quarantine has affected people’s lifestyles. “It has also changed our food habits. Some are forced to save money and would now buy noodles instead of fruits,” she said by telephone.

Health frontliners also rely on food delivered or donated to them.

But people should stop blaming the lockdown for their bad food choices, said Ms. Varona, a former president of the Philippine Society of Allergy, Asthma and Immunology, Inc.

Being stuck at home means people have more time to prepare food and shift to a more healthy food lifestyle, she said.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic that has sickened 5.4 million and killed more than 343,000 people worldwide.

People should stay home except to buy food and other basic goods, he said. Metro Manila remains under an altered lockdown, with some businesses allowed to reopen with minimal workforce.

While not everyone is allowed to go out, supermarkets — where inexpensive fruits and vegetables such as sweet potato, malunggay and cabbage are sold — remain open.

“It can happen both ways. How we look at the health crisis and our own situation will make the difference,” Ms. Varona said, noting that a healthy lifestyle would boost one’s immune system and protect the body from COVID-19 (coronavirus disease 2019).

MENTAL HEALTH
Infectious disease outbreaks that force people to stay home for long periods do not only cause boredom, but can be scary and can affect our mental health.

United Nations health experts on May 14 warned of a looming mental illness crisis as millions of people globally are surrounded by death and disease and forced into isolation, poverty and anxiety by the COVID-19 pandemic.

Decades of neglect and underinvestment in addressing people’s mental health needs have been exposed by the pandemic, the UN said in a policy brief, in a call for ambitious commitments from countries in the way they treat psychological illness, amid a potential global spike in suicides and drug abuse.

UN Secretary-General Antonio Guterres urged the international community to do much more to protect all those facing mounting mental pressures, noting that those most at risk were “frontline healthcare workers, older people, adolescents and young people, those with pre-existing mental health conditions and those caught up in conflict and crisis.”

“We must help them and stand by them,” he said.

Cornelio G. Banaag, vice-president of the Philippine Mental Health Association (PMHA), said mental health issues normally rise during a pandemic. People who have pre-existing mental health issues such as anxiety and depression are the most susceptible, he said.

An unseen enemy such as the COVID-19 virus causes people to be more cautious, which is healthy in a way, but not if it makes one extremely paranoid.

“We don’t know what will happen or when this will be over,” Mr. Banaag said by telephone. “All these uncertainties give us a sense of loss of control. Suddenly, we have lost control of our lives.”

Physical distancing meant to contain the pandemic that has killed about 900 people in the Philippines may be difficult for Filipinos who are known to be very “social,” he said. “It’s stressful to be isolated.”

More than eight of 10 Filipinos were worried about them or a family member catching the novel coronavirus, greater than previous worries about any other infectious diseases before it, according to a Social Weather Stations (SWS) poll.

Worry about catching the COVID-19 virus was also higher among Filipinos than among Britons, Australians and Americans, based on similar polls, SWS said in a statement on May 24.

STAYING FIT
Mr. Banaag also flagged a potential increase in child abuse cases as kids bear the brunt of their parents’ frustrations.

While staying informed is critical, people can do many things to support and manage their well-being during such hard times.

People should “step back” to avoid information overload and obtain news only from credible sources. Rumor and speculation can fuel anxiety, so having access to reliable information about the virus can help one feel more in control.

Creating a program of activities for the day that include physical activity and “quiet moments,” getting regular sleep and staying connected will also protect mental health, Mr. Banaag said.

The lockdown gives people an opportunity to be in touch with others in different ways than usual. Regularly interacting with friends on social media, by e-mail or phone are good ways of being close to the people who matter to you.

The National Center for Mental Health and PMHA also have hotlines that people can call to get help.

Ms. Varona said people should stay fit by having a nutritious diet, getting enough sleep and exercising regularly — even at home — to boost the immune system and fight viruses including the coronavirus. It also helps if one doesn’t smoke.

“This is not the time to neglect a healthy lifestyle, which helps our immune system against infectious diseases,” she said.

Eat fiber- and vitamin-rich foods such as fruits and vegetables. On the other hand, eating unhealthy foods such as junk food and processed meat increases one’s risk of getting diabetes, hypertension and kidney disease, among other ailments, she said.

“When you eat plant-based food rich in fiber — animal meat and processed food don’t have fiber — our blood sugar levels will go down dramatically,” Ms. Varona said. “It will boost our immune system and keep us strong.”

Gyms — a closed setting that could become a breeding ground for the coronavirus — may be one of the last businesses to reopen in the absence of a vaccine against the COVID-19 virus.

Mr. Reyes, the fitness trainer, said he misses his gym community. “I’m a regular outdoor runner, so I miss this part of my workout,” he said. “Many people hit the gym not just to work out but to be with people who have the same exercise and lifestyle interests.”

BusinessWorld Insights to uncover lessons from pandemic

THE Philippine business environment is now almost unrecognizable after over two months of lockdown due to the coronavirus disease 2019 pandemic (COVID-19). Businesses are adapting to a “new normal,” despite disruptions in supply chains, new consumer norms and a growing reliance on digital technology. It is the job of leaders and visionaries to blend the tried-and-true conventions of the past with the lessons learned from this challenging period.

BusinessWorld, the country’s premier business daily, is continuing its weekly BUSINESSWORLD INSIGHTS online forum series starting May 27. The second phase will highlight the lessons to be learned from the impact of COVID-19 on key sectors such as retail, logistics and e-commerce; healthcare and welfare system; and labor market and micro, small and medium enterprises (MSMEs).

The online forum series seeks to give a comprehensive look at the economic fallout and help the country prepare for post-COVID-19 recovery by gathering high-caliber speakers and experts for an intelligent online discussion, moderated by BusinessWorld’s veteran editors.

The theme of BUSINESSWORLD INSIGHTS’ second phase is “Winning the Fight: COVID-19 Lessons,” with the following sessions: “Beyond Survival: Charting the Path to Business Recovery” on May 27; “Improving the Country’s Healthcare and Welfare System” on June 3; and “Focusing on the Value of the Labor Market and MSMEs” on June 10.

The May 27 session will cover the pandemic’s impact on key industries such as manufacturing, retail and logistics, and how companies are planning to bounce back and grow further.

Confirmed speakers include Simon Wintels, partner at McKinsey Singapore; Gary De Ocampo, chief executive officer of Kantar Philippines; Nicky Gozon, director of Entrego Express Corporation; and Winn Everhart, president and general manager of Coca-Cola Philippines. Another invited speaker is Gil Genio, chief technology and information officer and chief strategy officer of Globe Telecom.

The second session on June 3 will discuss issues surrounding the beleaguered healthcare system, while the third leg on June 10 will reevaluate the value of the Philippine labor market and MSMEs.

The online forum series is scheduled every Wednesday at 11 a.m. and streamed live and free on the Facebook pages of BusinessWorld and The Philippine STAR. It will also be uploaded on BusinessWorld’s website (www.bworldonline.com) and YouTube account.

BUSINESSWORLD INSIGHTS: An Online Forum Series is made possible by sponsors SM, United Laboratories, Globe Telecom and Entrego Express Corp.; eLearning platform partner Olern; partner organizations Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Association of National Advertisers, Bank Marketing Association of the Philippines; and media partner The Philippine STAR.

For more information, contact Shai Cordero at 09979954734 or smcordero@bworldonline.com.

Are we flattening the COVID-19 curve?

Are we flattening the COVID-19 curve?

Philippines may benefit from US-China rift

RENEWED tensions between the United States and China could prove to be a boon for the Philippines, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.

“This current wave of revamping of global supply chains opens a window of opportunity for the Philippines to benefit from trade redirection and relocation of production sites,” Mr. Diokno said in a text message to reporters on Saturday.

Mr. Diokno said that electronic exports performed well in 2019 despite the US-China trade war. “This phenomenon can be attributed to the Philippines’ low exposure to products targeted directly by US tariff actions against China. The exposure is estimated at a low of 0.5%,” he said.

In 2019, exports grew by 1.5% to $70.33 billion from the $69.31 billion in 2018, according to data from the Philippine Statistics Authority.

“Not surprisingly, the Philippines is expected to be among the least affected by the US-China trade tensions. This supports IMF’s view that the country’s low participation in global trade as well as in global value chains relative-to-peers seems to explain why the Philippines has not been negatively impacted by the US-China trade war,” Mr. Diokno said.

As the US-China trade spat continues, there may have been a shift of investments and supply chains to some ASEAN countries, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“Vietnam could have benefitted more in terms of FDIs (foreign direct investments) shifts because of its proximity to China’s border to realize lower tariffs,” he said in an e-mail.

FDI inflows to the Philippines dropped by 23.1% to $7.647 billion in 2019, with analysts blaming this to global uncertainties, regulatory risks, and the unclear path for the tax reform that took its toll on investor sentiment.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the country should look to improve its weaknesses to attract more investments.

“Our lack of infrastructure and presence of web suppliers supporting these potential locators are keeping us from getting a decent share of investments,” he said.

To make the country more attractive for those seeking refuge from trade tensions, legislation that focuses on tax reforms could be the key for the Philippines to entice investors, Mr. Ricafort said.

“The proposed CREATE (Corporate Recovery and Tax Incentives for Enterprises Act) Bill that aims to reduce Philippine corporate income tax to 25% (from 30%) as early as July 2020 would help attract more foreign direct investments into the country and provide greater certainty for foreign investors,” he said

CREATE is a revised version of the Corporate Income Tax and Incentives Rationalization Act (CITIRA) Bill, which remains pending at the Senate.

According to Mr. Ricafort, the Philippines’ improving economic and credit fundamentals paired with favorable demographics is also one of its key strengths.

Meanwhile, Mr. Asuncion said the country should determine whether it wants to be a “manufacturing hub, a financial services center, or a digital valley of sorts.”

“The new normal is coming. It would be a disservice to the country if we wait for it to come rather than help shape it,” he added. — Luz Wendy T. Noble

Tan seeks ‘more time’ for Sangley airport

By Arjay L. Balinbin
Reporter

LUCIO C. TAN’S MacroAsia Corp. and its Chinese partner are again asking for more time to submit the post-qualification requirements for the $10-billion Sangley Point International Airport (SPIA), said the provincial government of Cavite, which remains keen on the project.

“They asked for an extension which we are inclined to give them,” Cavite Governor Juanito Victor “Jonvic” C. Remulla told BusinessWorld in a phone message on Sunday when asked if the consortium has recently expressed its intent to push through with the submission of the documents on June 11.

The Cavite government had approved the first request of MacroAsia and partner China Communications Construction Co. Ltd. (CCCC) to extend the submission deadline of the post-qualification requirements, which were supposed to be submitted 60 days after it received the notice of award on Feb. 14.

The province gave the consortium more time until the second week of June to process and submit the required documents before a joint venture development agreement is signed.

“Yes, tuloy pa din po (the project is still on),” Cavite’s Public-Private Partnership Selection Committee Legal Officer Jesse R. Grepo told BusinessWorld in a phone message on May 18 when asked if the project would still push through.

“The consortium has been given 60 days or until 11 June 2020 within which to submit their post qualification documents. Nevertheless, the consortium is encouraged to submit the same as early as and to the maximum extent possible given the circumstances, as undertaken in their letter request,” he said, referring to the consortium’s first request for extension.

On Sunday, Mr. Remulla said: “They informed our transaction adviser that they might need more time.”

“We are caught in the middle of the pandemic with no clear path to resumption of normal life. We will study their request and give an answer in a few days,” the governor added.

Mr. Remulla has said that the province was hoping to break ground with its joint venture partner for the first phase of the airport project in the second quarter of the year.

The first phase of the SPIA project, which will cost $4 billion, includes the construction of the Sangley connector road and bridge to connect the Kawit segment of the Manila-Cavite Expressway (CAVITEx) to the international airport.

Phase 1 also involves the construction of the airport’s first runway, which can accommodate 25 million passengers yearly, helping to decongest the Ninoy Aquino International Airport.

Cavite expects the airport to start fully operating by 2023, with partial operations to start a year earlier. The fourth runway will be opened after six years.

The same consortium will work on the other two phases of the project, but there may be contract renegotiations, according to the Cavite provincial government.

The second phase, which will cost about $6 billion, involves the construction of two more runways, giving the airport an annual capacity of 75 million passengers.

The last phase is the expansion to four runways, bringing capacity to 130 million passengers.

P28-B loss seen in drug price control

THE Pharmaceutical and Healthcare Association of the Philippines (PHAP) called on the government to recall the policy on price control on medicines that could lead to foregone revenues of P28 billion.

In a statement, PHAP said the industry estimates a P57-billion drop in sales from P200 billion once price control is fully implemented.

Projected government revenue losses would be P4 billion in foregone customs duties; P7 billion in lost value-added tax; and P17 billion in corporate taxes, according to the association.

“The EO does not benefit the public in the end because of the formula used to compute the price adjustments. We appeal that the measure be withdrawn until further studies especially at this time when the government needs funds to fight COVID-19,” it said.

President Rodrigo R. Duterte in February issued Executive Order No. 104 or “Improving the access to healthcare through the regulation of prices in the retail of drugs and medicines,” which controls maximum retail price (MRP) and/or maximum wholesale price (MWP) of medicines of 133 drug formulas.

The EO, which will take effect in June, will slash prices of medicines from the manufacturer’s level but not all prices will be reduced at the patient level, according to PHAP.

The association also said that price control had not been effective “based on global experience.”

“It is a populist proposition but discourages production, creating scarcity that will likely hurt those in need of the medicines the most, and shrinks an industry. We continue to appeal for a thorough review on the impact of this policy,” the group said.

It urged the government to continue the practice of bulk buying and price negotiation “to assure both supply and price stability.”

According to the EO, price cap is applicable to drugs that address the health of the public, particularly those that account for leading causes of morbidity and mortality, have high price differentials to international prices, have limited competition in terms of lack of generic counterparts, and medicines where the innovator product is the “most expensive yet most prescribed and/or dispensed in the market.”

The MRP will be imposed on all retail outlets, including drugstores, hospitals, pharmacies, health maintenance organizations, convenience stores, and supermarkets, while MWP will be imposed on all manufacturers, wholesalers, and distributors.

“No public or private entity shall be allowed to sell, reimburse or demand from the public or patients payment in an amount higher than the MRP or MWP, as the case may be,” the EO read. — Vann Marlo M. Villegas

Rates of T-bills, T-bonds likely to decline

RATES OF government securities on offer this week will decline further as investors’ flight to safer assets continues to fuel demand.

The Bureau of the Treasury (BTr) is set to borrow P20 billion via Treasury bills (T-bills) on Tuesday, broken down into P5 billion each for the 91- and 182-day papers and P10 billion via 364-day instruments.

On Wednesday, the BTr will auction off P30 billion in reissued five-year Treasury bonds (T-bonds) with a remaining life of four years and four months and a coupon of 4.25%.

A bond trader said over the weekend that rates of the T-bills will likely move “sideways to 10 basis points (bps) lower from previous auction” while for the reissued T-bonds, rates could settle within 2.8-2.9% range.

Security Bank First Vice-President and Head of Wholesale Treasury Sales Carlyn Therese X. Dulay said the T-bills could yield rates 5-10 bps lower as strong demand for government securities persists, with bids seen reaching “at least two to three times” more than the initial offer.

Last week, the Treasury hiked the volume of T-bills it awarded to P24 billion from the programmed P20 billion as total bids hit P103.8 billion.

It awarded P7 billion via three-month papers out of total tenders worth P29 billion, yielding an average rate of 2.09%, lower than the 2.269% fetched in the previous auction.

The Treasury raised another P7 billion in six-month papers from total bids of P33.7 billion at an average rate of 2.193%.

It likewise made a full award of the P10 billion in one-year securities on offer as total bids reached P40.77 billion and its rate declined to 2.653%.

Meanwhile, Ms. Dulay said the reissued five-year bonds could fetch lower rates between 2.7% and 2.8% on expectations of oversubscription.

The last time the BTr offered five-year securities was on March 3 where it raised P30 billion at a lower average rate of 4.018% from 4.227% previously.

The tenor attracted bids worth P83.511 billion at that auction, prompting the Treasury to award another P10 billion via the tap facility.

Kevin Palma, peso sovereign debt trader of Robinsons Bank Corp., said robust demand will pull down rates anew as robust liquidity in the market will cause investors to crowd safe-haven assets.

“Bond bulls were in the frontlines in the past few weeks. It’s because there’s so much liquidity in the financial system. That said, market players may continue to hunt for bargains on the short- to belly-end of the curve to put their excess cash to work to push GS (government securities) yields to multi-year lows,” Mr. Palma said via Viber on Saturday.

The government is planning to borrow P170 billion from the local market this month: P110 billion via its weekly T-bill auctions and the remaining P60 billion via T-bonds to be offered fortnightly. — B.M. Laforga

PayMaya eyes public vehicles for cashless payment

DIGITAL payments firm PayMaya Philippines, Inc. is in talks with the Department of Transportation (DoTr), the Land Transportation Franchising and Regulatory Board (LTFRB) and some taxi operators for a possible partnership to implement cashless payments in public transportation as a measure against the spread of the coronavirus disease 2019 (COVID-19).

“As part of our many digitization engagements now with the government, consumers, and enterprises, we have been in talks with the LTFRB, the DoTr, and initially some taxi operators given the mandate released by the LTFRB to implement cashless and contactless transactions in public utility vehicles (PUVs),” PayMaya Founder and Chief Executive Officer Orlando B. Vea told BusinessWorld in an e-mailed reply to questions on May 20.

He said cashless transaction in public transportation is an “essential component” of the overall set of measures meant to protect both drivers and commuters. “PayMaya is more than ready to help transport providers in implementing this measure among their drivers and fleet.”

PUV drivers can sign up for a PayMaya account and immediately accept or receive payments from other users through the Send Money function of the platform via QR or mobile number for free.

PayMaya, Mr. Vea added, also offers transport operators a payroll disbursement technology, extending the benefit of cashless transactions to their internal operations.

He also said it would be wise for the government to implement cashless payments in PUVs nationwide, adding that PayMaya is “more than ready to accommodate the projected surge in new users” coming from the transport sector.

The LTFRB has issued Memorandum Circular No. 2020-018 mandating the collection of fares in taxi units and transportation network vehicle services (TNVS) as strictly through cashless payment or through online payment facility only.

“In the past, we have also partnered with bus and taxi companies in Metro Manila and also in other areas such as Baguio and Cebu, and we have also enabled the Araneta Bus Port in helping them accept cashless payments through credit and debit cards as well as via PayMaya QR. The technology is here, and we are ready to partner with government and transport operators to enable them with cashless payments acceptance,” Mr. Vea explained.

During the community quarantine period, PayMaya’s combined user volume for consumer wallet, enterprise, and agent network businesses have doubled year-on-year, he said.

“We have ably delivered efficient and reliable services to them for their online groceries, bills payments, mobile prepaid reloading, and even the financial aid being distributed by national government agencies and local government units,” he added. — Arjay L. Balinbin

How to do a fashion show online

MISSING the things that the virus has taken away — parties, live events, even being seen barefaced — brought more than a thousand viewers to Facebook Live last week to watch Rajo Laurel: Runway Online, a live fashion show by designer Rajo Laurel. This was done in collaboration with Robbie Carmona, founder and CEO of Saga Events, the events company which staged the show.

Prior to the pandemic, the company staged many high-flying events, but obviously, things are set to change. “The events industry has always brought people together: to share beautiful stories, create unforgettable memories, and form meaningful connections,” said Mr. Carmona in an introduction. “In order to keep this human connection alive, we must continue to inspire and be inspired. We must continue to harness creativity and support one another.”

The clothes had been worked on by Mr. Laurel six months before, forming a collection called Hacienda. The designer was inspired by the province of Batangas. “It is my happy place. This is where I find peace and solace. Where I take up new endeavours such as gardening and hiking. It is a collection that celebrates clean air, songbirds and sunshine,” said Mr. Laurel in an e-mail to BusinessWorld.

According to Mr. Carmona, the show was planned after model Ria Bolivar sent him a post about designers going online for the pandemic. Inspired, he called up Mr. Laurel and asked him if he was ready to do a fashion show on his birthday (May 19). The show was staged two weeks after the phone call.

The planning wasn’t all light and birdsong, however: clothes were sent to the models — along with detailed styling instructions — to model at their own homes. Hairstylist Jing Monis and Mr. Laurel’s sister, makeup artist Gela Laurel, made video tutorials so the models could do their own hair and makeup. “We then gave the models specific instructions on how to prepare themselves for the show. We also asked them to shoot their runway walk in specific times of the day to have consistent lighting,” said Mr. Laurel in an e-mail. “It was a testament of patience, fortitude and love.”

The clothes showed an airy lightness even in more structured selections like a wide-lapelled jacket, thanks to the choice of very enviably breathable fabrics, in a palette of nudes, pastels, and dusty colors. Mr. Laurel says the collection had been in preparation a few months before the pandemic, but one can see how fashion really does serve to show in which direction winds blow: there were shorts suits for men, with a springy, light cropped jacket which are perfect to use for work-from-home meetings. The loose fits on dresses suggest casual airs, but details like pleating and suiting elements still have a patrician flair to them.

Mr. Laurel said about doing a show remotely: “Given our current circumstances, this was one of the ways we could continue telling our stories and sharing our talents. Safely, without compromising anyone’s health. It is not the most ideal way, however, for now this is the best way we can connect with our colleagues, friends and clients.”

To be fair as well to the show, it achieves something a live show cannot do which is to suggest the context where the clothes may be worn. This is seen in an airy paneled dress a model used to walk down a tree-lined street, suggesting a quiet life away from it all, while the fabric around her was blown lightly by the wind.

“One has to be pragmatic given these challenging times. Practicality is now on top of mind. This experience is an opportunity for all of us to begin, to start strong,” said Mr. Laurel.

Changing times call for changing ways, and we asked Mr. Laurel if virtual shows might be the way to go for the future. In the months and weeks preceding the coronavirus wave that hit Italy, some designers had already told their audiences to stay home and instead streamed their shows. “There is something spellbinding with a real runway show,” said Mr. Laurel. “However, for now this is how we must proceed,” he said. “The virus is still out there, and without a vaccine we cannot go back to our old ways. However, nothing will replace a live fashion show. This experiment is one way to do it. However I know that there will be other formats that our young designers will think of and execute in the most magical ways.

“Fashion is the language that we choose to express ourselves in and our industry speaks it so fluently. We do this all for love and that is why it is very special.”

The collection can be viewed at the House of Laurel’s Instagram page @houseoflaurel. A portion of the proceeds from sales of items from the Hacienda collection will be donated to the Philippine Red Cross-Makati. — Joseph L. Garcia

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