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PSBank earnings down 5.1% in Q1

PHILIPPINE SAVINGS Bank (PSBank) booked a lower net income in the first quarter as it set aside more loan provisions.

In a filing with the local bourse on Thursday, the thrift unit of the Metropolitan Bank & Trust Co. said its net income went down 5.1% to P646.2 million as it beefed up its credit provisions amid the coronavirus disease 2019 pandemic.

“Cognizant of the potential impact of the pandemic to the economy, we decided to exercise prudence by increasing provisions to 150% versus previous year,” PSBank President Jose Vicente L. Alde was quoted as saying in the statement.

The bank’s net interest income increased by 21.8% to P3.2 billion. Meanwhile, net service fees totaled P458.1 million.

During the period, the bank’s loan book grew by 3.6% to P165 billion, buoyed by strong demand prior to the enhanced community quarantine. Its gross nonperforming loan ratio was stable at 3.7%. Meanwhile, low-cost deposits grew 10.2% to P60.6 billion.

Total assets inched up by 1.8% to P240.3 billion, while its total capital stood at P34.8 billion. The bank’s total capital adequacy ratio settled at 17.2%, above the regulatory minimum of 10%.

“During the quarantine period, the bank continued to operate 80% of its branches while keeping in place precautionary measures to ensure that our customers and employees are safe,” Mr. Alde said.

The lender’s shares ended trading at P42.65 apiece on Thursday, unchanged from its Wednesday finish. — L.W.T. Noble

Doing Good: stepping up during a lockdown

MUCH of the country has been under a lockdown for the past two months, including Metro Manila. Movement may be hampered for many Filipinos but it hasn’t stopped companies and private groups from helping those in need during this time. Here are some of the people who are doing good during this pandemic:

L’OREAL PHILIPPINES
Personal care company L’Oreal Philippines has committed to giving 1,000 safety haircuts for select partners and hospitals amid calls from the medical community — the doctors, nurses, and other medical frontliners need haircuts in order to do their jobs better. The company also allocated 100,000 skincare and haircare products worth P30 million to be distributed to frontliners and partners in the Philippines.

“L’Oréal Philippines is committed to individuals who have shown courage in these extraordinary times. As a beauty leader, we are doing everything in our power to provide safety and care where it is most meaningful and where we are most needed. We are empowering our brands and our employees to demonstrate solidarity and real human connections, as the only way to fight this pandemic is through our collective efforts,’ said Supriya Singh, L’Oréal Philippines country managing director, in a statement.

ARC REFRESHMENTS CORPORATION
Local beverage company ARC Refreshments Corp., the makers and distributors of RC Cola, has conducted several online live concerts in order to raise funds for the Molecular Biology and Biotechnology (Diliman) Foundation, Inc. The foundation is a non-profit organization that assists laboratories and testing centers in diagnosing cases of COVID-19. The donations will be used to purchase laboratory supplies, testing kits, equipment, among others. It will also be used to cover transportation costs and lab renovations.

PLDT
PLDT has commissioned high-level decontamination services using Steramist Asia’s Binary Ionization Technology (BIT) for the Research Institute for Tropical Medicine in Muntinlupa City and the National Kidney and Transplant Institute in Quezon City. BIT is a powerful disinfectant certified by the Environment Protection Agency which is effective in eliminating the novel coronavirus that causes COVID-19.

The company also turned over care packages containing hygiene and food items to personnel of those hospitals and to the frontline staff of quarantine facilities of the National Task Force. It also donated 210 blankets and financial assistance to Paco Catholic School which is sheltering more than 200 people including street dwellers.

PLDT is also working with the Philippine Disaster Resilience Foundation, Zuellig Pharma, ABS-CBN, Metro Drug, and Go Negosyo to raise funds for personal protective equipment (PPEs), test kits, and ventilators.

HUGGIES
Kimberly-Clark’s Huggies has distributed over 100,000 newborn disposable diapers to children’s hospitals and maternity wards around Metro Manila. To date, Huggies Philippines has provided diapers to the Dr. Jose Fabella Memorial Hospital, Ospital ng Makati, the East Avenue Medical Center, the Valenzuela Medical Hospital, and the National Children’s Hospital, among others.

“Kimberly-Clark has long been a pioneer and trusted expert in baby and child care and we want to assure moms through this difficult period, we will be there for them every step of the way,” said Michael Vainio, general manager, Kimberly-Clark Philippines, in a statement.

DE LA SALLE PHILIPPINES
As part of its ongoing Safe Shelter program, La Salle Greenhills has opened its doors to 50 frontliners from the Cardinal Santos Medical Center. The school has already been sheltering frontliners from the Medical City for over four weeks.

Since the beginning of the quarantine period, De La Salle Philippines (DLSP) has partnered with hospitals in the metro: De La Salle University (DLSU) has supported the staff of Ospital ng Maynila and is housing a number of homeless people, while De La Salle-College of Saint Benilde (DLS-CSB) has assisted the Philippine General Hospital (PGH) by opening its campus as a provisional shelter.

In addition to shelter, daily breakfast and snacks, psychological support services via phone or online, and spiritual support through prayers and reflections through online activities are being provided.

DIAGEO PHILIPPINES
Alcoholic beverage company Diageo has delivered its first batch of alcohol sanitizers as part of its commitment to support the Philippines in its fight against COVID-19. The first batch of 15,000 500-ml bottles has been given to the Office of Civil Defense. The company is to donate 25,000 more bottles in the coming weeks.

KOTEX
Kimberly-Clark’s Kotex line of sanitary pads has donated 200,000 sanitary pads worth P2 million to non-profit organizations and public hospitals in Metro Manila to support women in at-risk areas, medical workers, gender-based groups, and new mothers across the nation.

“As a company that prides itself in producing personal care essentials, we remain committed to support nationwide efforts to address this health crisis,” says Michael Vainio, general manager of Kimberly-Clark Philippines, said in a statement.

“Access to feminine hygiene products is currently harder due to limitations in mobility, resources, and time. Through our donation, we want to help ensure the accessibility to these necessities so women can safely manage their menstruation with dignity during these trying times,” he added.

Toyota resumes in 19 outlets

Toyota Motor Philippines Corp. (TMP) dealer networks have restarted operations for 19 outlets in areas under general community quarantine, changing showroom layouts to ensure physical distancing measures.

The company in a press release on Thursday said that it is applying health measures in line with the health department and the World Health Organization as it reopens stores.

Business operations to repair motor vehicles and motorcycles are allowed in areas under general community quarantine.

TMP said dealers will have regular temperature checks for employees and customers, and will have regular facility disinfections, especially for common areas.

The dealers changed the layout of their showrooms and service reception areas, and will limit the number of people allowed inside the facilities at any given time.

TMP dealers will only accommodate confirmed service appointments booked on their recently launched online service booking mobile app MyToyota PH.

Dealers that have reopened in Luzon include La Union, Isabela, Tuguegarao, Calapan, Puerto Princesa, and Camarines Sur.

Reopened Visayas locations include Roxas, Negros Occidental, Tagbilaran. Tacloban, Calbayog, Dumaguete, and Aklan, while Mindanao locations include Cagayan de Oro, Iligan, Valencia, General Santos, Kidapawan, and Butuan.

“While we are facing challenging times, this also presents an opportunity to come back better and stronger, to review our current processes and find improvements, to constantly provide ever better products and services, and to make our team members’, customers’, and partners’ lives safer and more convenient,” TMP President Atsuhiro Okamoto said.

“We are working hard to prepare our dealerships and ensuring that everyone will be safe upon their visit. We look forward to serving our valued customers again.”

Toyota Financial Services Philippines had also extended its payment terms, as well as the expiring policies under the Toyota Insure and warranty coverages, until after the enhanced community quarantine is lifted. Toyota vehicles scheduled for periodic maintenance services are also under a grace period until the end of the quarantine. — Jenina P. Ibañez

ILO checklist to help mitigate COVID-19 at work

It appears to me that the authorities have not issued any specific guidelines for companies that may be affected by the pandemic after the lifting of the lockdown. No, we are not talking about financial assistance, but how do we ensure that our workers and managers are protected from the spread of COVID-19 as soon as they report back to work? Could you please help us determine a comprehensive and systematic protocol to ensure the safety and health of our workforce while they’re inside our office and factory? — Fearful Nelly.

On a scale of one to 10 with 10 as the highest, how confident are you after the lifting of the lockdown? Surely, the situation will be different in the next few months and in the years to come. But think of a specific number to help you understand your problem and the rest of the world. Now consider the options. Would it be better to temporarily close the business for several months?

Or would it be better to continue operations subject to strict compliance with health and safety protocols? Or simply maintain a minimal workforce inside the office to support those who are assigned to work from home to keep the business running?

What would make your management confidently increase your number to 10? It’s not easy to guess, without much data. The long list of possible answers (or guesses) makes us realize the obstacles to returning to work. There could be more bad things in store for us, if we are not extra careful in handling workplace situations during the pandemic.

I checked the website of the Occupational Safety and Health Center and found only a generic, 454-page “Occupational Safety and Health Standards” manual amended in 1989. It may not be specific enough to address our COVID-19 questions. Anyway, if you’re looking for “a comprehensive and systematic protocol,” I am advising you to consider the “Action Checklist” of the International Labor Organization (ILO) to help your organization in preventing or mitigating the adverse effects of COVID-19 in the workplace.

ILO’S ACTION CHECKLIST
The 8-page checklist dated April 9 which you can find at www.ilo.org must be done in consultation with key people within your organization, including those in the health and safety committees. While we’re still on lockdown, you may want to confer with your people via Zoom or similar platform. But first, I suggest that you download a copy of the checklist and send it to all your department managers for their initial comment.

The checklist is updated and put together by global experts. It comes in four parts: Policy, planning and organizing; risk assessment, management and communication; prevention and mitigation measures; and arrangements for suspected and confirmed COVID-19 cases. Here are some general guidelines and my other suggestions:

One, appoint a team of key people to go through the checklist. This includes senior management, department managers, workers’ representatives, and health and safety committee members. It’s best to consult other key stakeholders, including your company physician, nurse, security and administration personnel. If you are not a union establishment, you may appoint two workers from the ranks, who may have displayed leadership skills in the recent past.

Two, send the checklist to those concerned via email. Require them to answer as objectively as possible. Allow them to answer anonymously, if that is what the majority want. Give them a one-day deadline to complete the checklist. Then assign someone to tabulate the results for you to determine the answer of the majority. If there are serious disagreements, consult and resolve the issue with the team.

Three, agree as a team to come up with the best action plan. If necessary, conduct a follow-up video conference to discuss the issues and challenges. In discussing possible solutions, it is best to alert the team members that they must come up with low-cost or practical answers rather than choose expensive answers. After all, we’re facing a slow economy, and this is not the right time for businesses to spend money.

Last, present the group decision for top management approval. Before that, you may want to consult with experts from the Occupational Safety and Health Center, the Department of Labor and Employment, and the Employers Confederation of the Philippines on certain issues. You may also want to consult with the representatives of your Health Maintenance Organization for assistance that could be a part of your medical plan for employees.

CONCLUSION
There’s nothing more convincing than your own action plan done in consultation with experts and people who will execute your plan within the organization. That’s the essence of co-ownership. Unfortunately, not many people and organizations appreciate that. With the current crisis, it’s about time we rediscover empowerment and engagement as our basic approach in people management.

Trust this process, and expect a pleasant awakening. Times have changed with the new normal of doing things, but realize that it might become a “better” normal with the active help of workers. We must learn to close the door of the new normal and open new doors and windows for many opportunities in the horizon.

In other words, make calculated decisions based on the overall health and safety of people working for the organization, and at the same time protect jobs. It will not only keep you out of legal and ethical troubles, but also save you a lot of mental anguish. Have a long-term perspective in whatever you do, instead of doing what’s easy – shedding jobs.

Having peace of mind is the greatest measure of success.

ELBONOMICS: One concrete and specific measure of success is a peace of mind.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Hindsight is 2020

I have looked forward to 2020 for about three years as it was my forecasted early retirement year. For someone who has been in the work force for around four decades, idea of letting go and taking care of a travel bucket list was enthralling. My plans were meticulous to include advance airfare and hotel bookings to ensure cost savings. Likewise, in a number of cases, the reservations were on a confirmed and nonrefundable basis.

February 20, or 2-20-2020, was the day. It coincided with an event at the bank that acknowledged personnel who rendered long years of service. It was a pleasant take off day for me as Head of the Sector in charge of the recognition.

In two weeks’ time, I was on the first day of my travel list specifically a visit to Georgia, USA to meet my beloved sister Malou. And to make a long story short, the coronavirus disease 2019 (COVID-19) happened and all my travel plans were in jeopardy.

Actually, it began before the trip when the Philippine government announced the travel ban to Hong Kong, which was my stopover to the US. I had to scramble to get a ticket via Seoul and by the time of my travel, South Korea was also being hit by the virus. Luckily, the plane trip went on without a hitch. When I arrived in the US though, many States started their own lockdown and what was originally planned as a criss-cross trip from East to West became a one stop visit.

Returning prematurely in early April, I was one of fourteen passengers in a plane from Atlanta to Los Angeles, part of the half-full long haul flight from Los Angeles to Seoul. And my plane trip to Manila had 10 warm bodies as passengers. Ratio of crew to passengers was almost one to one. I had laid out travel plans for May, July and yearend. Everything is now in limbo.

Many of us have had our plans put awry because of this pandemic. A meme on the internet even proclaimed that one’s worst or most useless investment for the year would be buying a planner diary for 2020. It would have taken a prophet and gifted seer to have predicted the devastation of the world as we saw it in the recent months. Frankly, alternative scenarios are now being drawn on how the rest of the year will look like. One thing is certain, it will be life as no one ever imagined it to be. Recession is definitely in the works. The more important question is — how long and what will it take for most economies in the world to recover?

One wonders how we could have prepared for 2020 if we knew the things would happen as it is. As they say, hindsight has perfect vision. I would have made drastic changes, maybe even postponing my early retirement to a better time. But how does one really anticipate a worldwide catastrophe like this? Anybody who proposes a lockdown even before the virus spreads would have been called out crazy. The natural tendency is to maintain the status quo, especially from the economic perspective.

My personal issues are actually trivial compared to the losses of many. We are all facing losses, whether it’s a missing on a graduation exercise, facing cancellation of sports event, losing our chance to go to church and masses, struggling to earn for those whose employment is unstable and even the inability to visit sick relatives or say goodbye to a loved one.

While I grieve for my inability to fulfill lifelong dreams, when I look at the bigger pain of others, I feel ashamed for my selfishness. Others have more alarming problems such as actually losing a loved one to COVID-19, small businesses in shambles because of lack of a market, postponed celebrations like weddings, or lacking the cash for day to day sustenance.

But as psychologist Dr. Victoria Tait shared, “let’s allow ourselves to feel those losses, whether big or small. Stifling negative emotions doesn’t make them go away. In fact, suppressing them often gives them more power over us!” Vulnerability researcher Brane Brown observed “emotions do not go away because we send them a message that these feelings are inappropriate and do not score high enough on the suffering board.”

In other words, there are times when it’s OK to be NOT OK. A little disgust and some grieving is healthy. Because no one could have seen the pandemic, we will all have different level of losses and it is alright to feel bad for it. David Kessler, an expert on grief, said it’s absurd to think we shouldn’t feel grief right now. Understanding the stages of grief is a start. Acknowledge the grief you may be feeling, manage it and we will find meaning in it.

On another note, allow me to share an initiative of Don Bosco Mandaluyong High School Class of 1972, in cooperation with DBTC, BICC and DBMAA. The program initiative is to reach out and appeal to the friends of Don Bosco worldwide to give back whatever help they can extend in the fight against COVID-19. Funds raised from donations will be used to design and produce ventilators. Our goal is to produce as many ventilators as possible as soon as the prototype receives the mandatory regulatory approvals. Interested parties can send their contributions to Metrobank SA 0763076947814, under any of the following names — Benel Lagua, Pascualito Oliveros or Noel Cariño.

 

Benel Dela Paz Lagua was previously Executive Vice President and Chief Development Officer at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs. The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

PhilCare net income rose 21% in 2019

PhilhealthCare, Inc. (PhilCare) reported a 21% growth in net income to P130.6 million in 2019, driven by sales of its new products.

The health maintenance organization (HMO) saw its revenues rose by 16% to P2.68 billion last year, compared to the preceding year. Benefits, claims, and expenses also increased by 15% year-on-year to P2.5 billion.

“We are really happy that our efforts in 2019 bore fruit, from the aggressive sales of our innovative products like our prepaid health cards to the new partnerships we formed and the new sales channels that we have opened. All these have contributed significantly to the increase of our bottom line,” PhilCare President and Chief Executive Officer Jaeger L. Tanco said in a statement.

PhilCare’s introduced its pioneering prepaid health card which was born following the results of its first Wellness Index in 2014. The study noted that many Filipinos did not have access to healthcare coverage due to a lack of corporate health benefits.

Aside from the health cards, the HMO also introduced its DigiMed service, a form of medical teleconsultation, which it claimed would make “a more pronounced impact as the nation embraces the new normal” spurred by the impact of the global coronavirus disease 2019 (COVID-19) pandemic.

The new service on the HeyPhil app has received 1,500 digital consultations per month so far. It also launched the DigiMed PLUS, a web-based telemedicine application that provides members access to numerous specialists through video calls.

“As the nation gradually prepares itself for the new normal, we continue to gain momentum, seeking for opportune possibilities to leverage change to our advantage, as we dedicate ourselves in fulfilling our mission of making quality healthcare services available to every Filipino,” Mr. Tanco said. — Adam J. Ang

How PSEi member stocks performed — May 7, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, May 7, 2020.

Local shares close higher on bargain hunting

LOCAL SHARES closed higher on Thursday as investors ignored the economic contraction reported in the first quarter and instead went bargain hunting on the market.

The bellwether Philippine Stock Exchange index (PSEi) went up 13.89 points or 0.24% to end at 5,653.16 in yesterday’s session. The broader all shares index slipped 2.17 points or 0.06% to 3,413.88.

“Philippine shares traded on a positive note as investors brushed off the contraction in 1Q GDP (first quarter gross domestic product) with a possibility that the country may ease the lockdown after May 15 as mentioned by the administration,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.

The government reported on Thursday that the economy contracted by 0.2% in the first quarter, the first time it sank since 1998 to end 82 quarters of uninterrupted growth.

This is below the 2.9% median estimate in BusinessWorld’s poll of 11 economists and the 6.5%-7.5% target range of the government.

Despite this, the local bourse still managed to end the day with gains, as Mr. Limlingan said investors believed “the country may have soon reached the bottom, and the reopening of economy is soon and imminent.”

The PSEi opened at 5,661 and traded lower for most of the day, hitting a low of 5,599 and reaching a high of 5,670 before closing at 5,653.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the lack of selling drew in buyers that took advantage of cheaper stock prices.

“This allowed the main index to end the day close to its high for the day. We may see more profit taking (on Friday), being the last day of the trading week,” he said in an e-mail.

For Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan, the market was consolidating yesterday as seen in the decreased value trading. Value turnover was slower at P4.86 billion from P6.05 billion a day ago. Some 477.90 million issues switched hands from the previous day’s 561.48 million.

“We think that investors with this kind of market performance are on wait and see mode with weaker trading participation in terms of value turnover for the local bourse,” Mr. Tan said in a text message.

Sectoral indices were divided evenly among gainers and losers yesterday. On the one hand, property rose 50.98 points or 1.74% to 2,970.92; financials added 3.05 points or 0.26% to 1,160.69; and holding firms picked up 10.56 points or 0.19% to 5,529.79.

On the other hand, services dropped 22.27 points or 1.65% to 1,325.06; mining and oil lost 58.46 points or 1.27% to 4,512.07; and industrials fell 68.68 points or 0.93% to 7,312.14.

Some 112 names declined, 63 advanced and 42 ended unchanged yesterday.

Net foreign selling persisted at P302.23 million, although lower than the P969.47 million seen the prior day. — Denise A. Valdez

Peso weakens vs dollar

THE PESO weakened on Thursday after data showed first-quarter gross domestic product (GDP) slumped for the first time since 1998 due to global supply chain disruptions and the onset of the Luzon lockdown.

The local unit ended at P50.56 per dollar yesterday, depreciating by 10 centavos from Wednesday’s close of P50.46 against the greenback, data from the Bankers Association of the Philippines showed.

The local currency opened the trading day at P50.54 per dollar, weakening to as low as P50.57, while its strongest showing stood at P50.48 per dollar.

Dollars traded inched up to $558.39 million from the $539.19 million posted the day prior.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the weaker peso to the lower-than-expected GDP data released earlier that day.

Using the new base year of 2018, the Philippine Statistics Authority (PSA) reported Thursday that first-quarter GDP contracted by 0.2% year on year coming from the 6.7% and 5.7% growth reported in the fourth quarter and in the first quarter of 2019, respectively.

The contraction was the first time the country’s economic output declined since the three-percent contraction in the fourth quarter of 1998.

Mr. Ricafort said the first quarter contraction was mainly due to disruptions in production and supply chains here and overseas when the Luzon lockdown started in the last two weeks of March.

“This was also partly brought about by the economic damage/disruptions brought about by the Taal volcanic eruption and the lockdown in China, the world’s second-biggest economy, for most of 1Q 2020, followed by lockdowns in many other countries around the world that resulted to year-on-year contractions in tourism, manufacturing, and trade especially exports and imports,” he said.

Of the major economic sectors, services managed to grow by 1.4% year on year albeit at a slower pace than 7.1% seen a year ago. Meanwhile, agriculture and industry sectors declined by 0.4% and three percent, respectively.

On the spending side, household consumption recorded a flat 0.2% growth while government expenditures rose 7.1%, both slowing down from the previous quarter’s growth of 6.2% and 17%, respectively.

“Peso (was) also weaker after some upward correction in global crude oil prices recently to three-week highs,” Mr. Ricafort added in a mobile phone message.

Meanwhile, a trader said another factor that the market might have priced in was the “grim US labor reports” that will be out Friday evening.

Mr. Ricafort expects the peso to trade within the P50.40-50.65 per dollar levels on Friday while the trader sees it settling between P50.50 and P50.70. — Beatrice M. Laforga

Economic team proposes P131-B in relief measures

THE government’s economic managers proposed to Congress on Thursday P131 billion in new programs to help the vulnerable members of the population deal with the coronavirus disease 2019 (COVID-19) emergency.

The package for relief measures is known as “Bayanihan II” as a follow-up to the initial measures contained in the Bayanihan to Heal As One Act or Republic Act 11469, according to a presentation made by the Economic Development Cluster (EDC) to the House of Representatives.

The P131 billion total is equivalent to 0.67% of gross domestic product (GDP).

Some P50 billion from the relief component will supplement the capital of state-owned Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP).

A further P30 billion from the relief component will go to the government’s emergency subsidy program while P21 billion more will be directed to the wage subsidy program. The extra funds are expected to benefit nine million families and 2.6 million workers, respectively.

So far, the government has rolled out a P205-billion social amelioration program to help poor families and those in the informal sector during the lockdown, as well as a P51-billion wage subsidy program for affected employees of small businesses.

The cluster also proposed P20 billion for the government’s credit guarantee program to help affected businesses gain access to loans for working capital, as well as P10 billion to buy 3.5 million more test kits.

The proposal also includes low-interest loans and reallocated budgets for priority projects identified under the Build, Build, Build infrastructure program and the affected sectors.

The Bayanihan II was part of the entire economic recovery component “PH-Progreso,” worth P711 billion or equivalent to 3.8% of GDP.

Detailed breakdowns are not yet available, beyond the stipulation that P551 billion will be provided via adjustments to monetary policy, financial sector regulatory relief measures, reallocated savings from the 2019 and 2020 budgets and contributions from private sector.The sources for the remaining P160 billion will be generated via fiscal policy measures through the national government budget.

In a separate news conference Thursday, NEDA Acting Director-General Karl Kendrick T. Chua said the proposed recovery plan will focus on building confidence in the safety of public life and stimulating domestic demand once the country slowly transitions out of strict lockdown measures.

The economic team, which includes the National Economic and Development Authority (NEDA) and the Department of Finance (DoF), has been working on a recovery plan to help the country adapt to the post-pandemic reality.

“The key here in the recovery plan is to enhance the confidence of the people (that) it is safe to go to the grocery, go to work, that is our top priority,” Mr. Chua said.

The second priority is to “stimulate domestic demand” which Mr. Chua said can be done by enhancing the entire food value chain, from farms, logistics, food product and preparation up to the point of sale.

NEDA has been conducting rapid surveys to assess the impact of the enhanced community quarantine (ECQ) on businesses, collecting 44,000 responses from micro, small and medium-sized enterprises, 8,000 from agriculture sector and 300,000 from consumers.

While full results are not yet available, Mr. Chua has said that the surveys show businesses sustained some P700 billion in losses because of the quarantine, while many enterprises were under pressure to retain jobs.

The House is currently legislating the proposed Philippine Economic Stimulus Act (PESA) in its various versions, including consolidated bills originally proposed by Representative Jose Maria Clemente S. Salceda of Albay and Marikina Rep. Stella Luz A. Quimbo of Marikina.

According to Rep. Sharon S. Garin of the AAMBIS-OWA Party-List, who co-chairs the House’s Defeat COVID-19 committee economic stimulus cluster, the latest draft of PESA proposes about P475 billion in the first year of the intervention period of 2020–2022. It is currently being discussed at committee level.

The draft bill declares as its priorities the preservation of jobs and targeted assistance to industries.

“Primarily, the interventions are not direct amelioration or dole outs, otherwise they won’t be sustainable and affordable,” Ms. Garin told reporters via Viber on May 5, Tuesday.

The EDC is chaired by the DoF, with its members: NEDA and the Departments of Trade and Industry; Budget and Management; Public Works and Highways; Transportation and Communication; Energy; Science and Technology; Tourism; Agriculture; and Interior and Local Government. — BML and GLE

Note: The story has been edited to include the Bayanihan II under the PH Progreso

NTC seeks amendments to allow broadcast operations during franchise renewal

By Arjay L. Balinbin
Reporter

NATIONAL Telecommunications Commission (NTC) Deputy Commissioner Edgardo V. Cabarios said the lesson the Commission learned from dealing with the franchise issue of ABS-CBN Corp. is that the Act No. 3846 or the Radio Control Law that it cited in its cease-and-desist order against the broadcaster needs to be updated to allow operations pending the franchise renewal process.

The Radio Control Law empowers the NTC to control the allocation of spectrum.

“Baka pwede nang i-amend (It might be time to amend it). It has been a law even before we became a republic. 1931 pa kasi ‘yan. Batas na ‘yan even before the Commonwealth (It’s been a law even before we became a republic. It’s been on the books since 1931, predating the Commonwealth),” Mr. Cabarios told BusinessWorld in a phone interview Wednesday.

He added: “It is an antiquated law, so maraming provisions doon na kailangan nang i-amend. Kasi una nakalagay doon lahat ng nag-o-operate ng radio stations, maski na walkie-talkie mo lang, maski na cellphone mo lang, kailangan may permit ka, it’s impractical (Many provisions could be amended. It states that all radio stations, even handheld two-way radios or even cell phones need a permit. It’s impractical)” he said.

The NTC issued a cease-and-desist order against the media company on Tuesday citing Act No. 3846, which states that “no person, firm, company, association, or corporation shall construct, install, establish, or operate a radio transmitting station, or a radio receiving station used for commercial purposes, or a radio broadcasting station, without having first obtained a franchise therefor from the Congress of the Philippines.”

Mr. Cabarios said the provision should be updated to allow a broadcasting company to continue operations while awaiting the renewal of its franchise.

“Pwede naman siguro maglagay ng provision doon na while the application for renewal of the franchise is pending, considered valid pa rin ang franchise, kasi ngayon wala ‘yan. Kung expired, ay expired talaga (It might be possible to allow operations while renewal applications are pending — under which conditions the old franchise id deemed still valid. Right now that’s not possible. If it’s expired, there is no recourse),” Mr. Cabarios added.

He said there is no provision in the old law that authorizes the Commission to issue a provisional authority to a broadcasting company which is still awaiting the renewal of its franchise.

“Kasi our issuance of any kind of authority, provisional or permanent, is always predicated on a valid franchise. Without a valid franchise we cannot issue anything,” Mr. Cabarios said.

He noted that there have been discussions to amend the old law.

“Pero ngayon baka naman mapabilis na (Things might be expedited now),” he added.

The NTC gave ABS-CBN 10 days from the receipt of its order to explain why the frequencies assigned to it “should not be recalled for lack of the necessary Congressional Franchise as required by law.”

Ordered closed are five AM radio stations, which include DZMM-AM in Obando, Bulacan; 18 FM radio stations; 42 TV stations; and 10 DTTB stations.

ABS-CBN said its cable news channel ANC, online websites and video streaming service iWant are not affected by the order.

President Rodrigo R. Duterte has threatened to block the renewal of the ABS-CBN legislative franchise after a dispute during the 2016 campaign over the airing of his political ads.

In a statement, ABS-CBN said: “We trust that the government will decide on our franchise with the best interest of the Filipino people in mind, recognizing ABS-CBN’s role and efforts in providing the latest news and information during these challenging times.”

NAIA revenue foregone due to ECQ tops P1 billion

ESTIMATED revenue foregone by the Ninoy International Airport (NAIA) due to travel restrictions imposed under the enhanced community quarantine (ECQ) topped P1 billion at the end of April, the Manila International Airport Authority (MIAA) said.

“Sa ngayon, ayon sa last tally namin, noong end of April ay tumatala na po kami ng almost mahigit po isang bilyon na losses sa ating revenue (At last count at the end of April, we estimate over P1 billion in lost revenue),” MIAA General Manager Eddie V. Monreal said in a virtual briefing Thursday.

He noted that NAIA used to handle an average of 768 flights per day before the lockdowns caused by coronavirus disease 2019 (COVID-19).

“Minsan sampung flights a day ang commercial flights natin (Sometimes we have only 10 commercial flights a day),” Mr. Monreal said.

He also said it may take time for the country’s main air hub to recover when the capital shifts to the more relaxed general community quarantine (GCQ).

“I’m really fervently hoping na sana bumalik na sa dating sigla pero medyo matagal (I hope operations return to their former levels but it will take time). It’s wishful thinking… marami po tayong mga restrictions at siguro we have to build passengers’ confidence in terms of travelling (There are still many restrictions and it will take time to rebuild confidence in air travel). Magagawa natin ‘yan sa tulong ng ating mga kababayan na sumunod at tumalima sa ating mga panuntunan…para ang inyong area ay maging COVID-free (We’ll do it with the cooperation of our countrymen who will follow the rules to help keep us COVID-free),” he said.

The government on Wednesday announced new rules for the so-called new normal at international and domestic airports.

MIAA said it will enforce distancing rules, conduct temperature and contactless security checks with the resumption of commercial flights.

It said social distancing will be enforced at all queuing points, and temperatures checked at security and vehicle checkpoints at the four terminals of the capital’s international airport.

Malacañang has said that the temporary ban on international inbound flights that started on Sunday will run until 11:59 p.m. on May 8.

MIAA said people entering the airport must wear face masks, adding that it has acquired 133,750 surgical face masks and 4,500 washable masks for its workers.

Only passengers with valid travel documents and confirmed bookings for the day will be allowed to enter the airport. — Arjay L. Balinbin

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