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Nationwide round-up (10/21/20)

Solon calls for swift passage of faster internet service law

MUNTINLUPA REPRESENTATIVE Rufino B. Biazon on Wednesday called on the House to fast-track the passage of a bill requiring internet service providers to deliver a minimum internet connection speed of 10 megabytes per second (Mbps). “The internet has become very essential in our daily living that even the United Nations General Assembly recognized access to the internet as a basic human right. With all its amazing functions, however, high-speed access to the internet is necessary to prove its true value and maximize full potential as a tool in development. In this aspect, speed is the name of the game,” he said in a statement. Mr. Biazon, author of House Bill No. 28 or the Faster Internet Services Act, made the call after reports of two brothers in Bohol who died from electrocution while installing an internet signal booster for online classes. The brothers died when the metal antenna pole they were installing accidentally fell and hit an electric post near their house. “It is unfortunate that it has come to this: slow internet speeds have become deadly,” Mr. Biazon said. The proposed law mandates the National Telecommunications Commission to require all service providers and Public Telecommunications Entities to provide a minimum download speed of 10 Mbps for all broadband internet access be it mobile, fixed, or fixed wireless. It also sets a fine of P5 million for failure to meet the minimum standards. — Kyle Aristophere T. Atienza

Bill seeks to reform teachers’ education

class students teachers
PHILSTAR

A BILL reforming the educational program for teachers has been filed in the Senate in light of the “dismal” result of licensure exams since 2014. Senate Bill No. 1887, the Teacher Education Council Act, will amend Republic Act No. 7784 by improving coordination between the Department of Education and the Commission on Higher Education in developing a coherent pre-service and in-service education of teachers. RA 7784, passed in 1994, contains measures to strengthen teacher education. “Kailangan siguruhin natin na ang kaalaman, pagsasanay, at kahandaan ng mga guro ay naaangkop sa pangangailangan ng mga mag-aaral (We need to ensure that the knowledge, training, and preparedness of teachers are apt to fulfill the needs of the students),” Senator Sherwin T. Gatchalian, chair of the basic education committee, said in a statement on Wednesday. Mr. Gatchalian cited the results of the Licensure Examination for Teachers from 2014 to 2019, which showed average passing rates of 28% for the elementary level and 36% in secondary. — Charmaine A. Tadalan   

House minority to remain as ‘balancing group’ despite majority-handpicked leader

AN INDEPENDENT member in the House of Representatives said the minority bloc will maintain its role as “fiscalizer” despite having a new leader who was handpicked by the majority. “The minority will remain as a fiscalizer and balancing group in the House especially on legislation work,” Bicol Rep. Edcel C. Lagman said on Wednesday even as he noted that there is a “small aggrupation” of majority allies masquerading as members of the minority. “The handpicking by the majority leadership of the ‘minority leader’ was formalized in the 17th Congress  and is perpetuated in the 18th Congress,” he said. The House minority bloc on late Monday elected Abang Lingkod Party-list Rep. Joseph Stephen S. Paduano as its new leader, replacing Manila Rep. Bienvenido Abante, Jr. who filed his resignation during Friday’s plenary session to join the majority. Mr. Lagman said Mr. Paduano is part of the ‘anointed’ members of the minority, citing his presence during a meeting held earlier in Malacañang to settle the speakership row. Mr. Paduano, for his part, said in an online press conference that the minority bloc would remain steadfast in opposing legislative bills that would harm ordinary Filipinos and would not become a “co-opted minority” under the new House Speaker. — Kyle Aristophere T. Atienza

Regional Updates (10/21/20)

Dumaguete court dismisses case vs drug suspects due to illegal arrest; PDEA agents face contempt charges

A DUMAGUETE City regional trial court dismissed the charges against five drug suspects who were supposedly arrested by law enforcers in a fake buy-bust operation.

The court also initiated indirect contempt proceedings against five Philippine Drug Enforcement Authority (PDEA) agents, a barangay official, and a media representative “for making untruthful statements in their affidavits, and for directly impeding and degrading the administration of justice.”

In a 15-page order, Judge Amelia Lourdes U. Mendoza ordered the release of four of the accused, and the return of the bail posted by one of them.

PDEA claimed that the five were arrested in a buy-bust operation in the house of one of the accused.

Those charged, however, said they were picked up by PDEA agents at different times and places before they were brought to the house where the buy-bust supposedly took place.

The court noted that the CCTV footage from cameras operated by the local government unit supported the suspects’ claim.

“The Court is convinced that the accused in these cases were arrested in places other than where the supposed buy-bust operation took place and at a much earlier time than that declared by the PDEA agents,” the ruling read.

“The Court cannot simply brush aside these glaring coincidences that are too patent to ignore. The court concludes that accused were illegally arrested on June 28, 2020,” it said.

The judge further said “constant vigilance” is required of courts “to prevent our slippery slope towards contempt for the law and anarchy.”

“The courts must step in and take the cudgel for individual liberties, and in no other situation is this duty more critical and necessary than when supposed protectors of the law and order become perpetrators themselves,” the ruling read. — Vann Marlo M. Villegas

Supreme Court chief condemns attack on regional judge

CHIEF JUSTICE Diosdado M. Peralta called on law enforcement agencies to quickly resolve the shooting of a Camariñes Sur regional trial court judge and her aide that left both of them wounded.

In a statement, the Supreme Court head “strongly condemned” the shooting of Judge Jeaneth C. Gaminde-San Joaquin and her aide.

“An attack on our judges is an assault on the Rule of Law. This has no place in a civilized society like ours,” Mr. Peralta said in a statement.

Initial police report said the two were on their service vehicle going to Naga City on Tuesday afternoon when unidentified suspects on board a motorcycle fired at them.

The Integrated Bar of the Philippines-Camariñes Sur Chapter also condemned in “strongest terms the wicked attempt and vicious assault” against the judge and her secretary.

The group said in its statement that it is in coordination with authorities and “will leave no corners hidden nor quarters safe for the evil perpetrators.” — Vann Marlo M. Villegas

LANDBANK-Davao office opens loan window to LGUs for infra, COVID-related projects

THE LAND Bank of the Philippines’ (LANDBANK) Davao office is ready to provide loans to local governments in the region for projects relating to the coronavirus response.

“If an LGU (local government unit) needs health care facilities like isolation facilities, LANDBANK can fund it,” Jose Enedicto “Joen” G. Faune, vice president for the bank’s Davao Lending Center, said in a Zoom conference last week.

The maximum loan amount will be determined by the Bureau of Local Government Finance based on the borrowing capacity of the municipality, city, or province.

“We can make a computation out of their internal revenue allotment but the final figure should be determine by the BLGF,” Mr. Faune said.

The state-run bank announced in early October that it has doubled its lending allocation to LGUs nationwide to P20 billion.

Mr. Faune also said its loan window for projects not related to the health crisis remains open, citing such examples as markets and transport terminals.

“We can fund it 100%. The development of a community must come from the LGU so that the small and medium enterprises will come in and encourage businesses within the sector, and increase the purchasing power to buy the produce of our farmers,” he said. — Maya M. Padillo

More areas placed under red tide alert

THE BUREAU of Fisheries and Aquatic Resources (BFAR) has warned that shellfish collected in the areas of Honda Bay in Palawan, Maqueda and Villareal Bays in Western Samar, and Carigara Bay in Leyte are not safe for human consumption after testing positive for red tide contamination.

In its 23rd shellfish bulletin, BFAR said these areas join other red tide positive zones such as Bataan, particularly the areas of Mariveles, Limay, Orion, Pilar, Balanga, Hermosa, Orani, Abucay, and Samal; Inner Malampaya Sound and Puerto Princesa Bay in Palawan; Milagros in Masbate; Dauis and Tagbilaran City in Bohol; and Tambobo Bay in Negros Oriental.

Other areas that remain positive for red tide contamination are Daram Island, Zumarraga, and Irong-Irong and San Pedro Bays in Western Samar; Cancabato Bay in Leyte; Matarinao Bay in Eastern Samar; Balite Bay in Davao Oriental; and Lianga Bay and Hinatuan in Surigao del Sur.

All types of shellfish and Acetes sp. or alamang harvested from these areas are not safe for human consumption.

However, other marine species captured in the areas can be eaten by humans with proper handling.

“Fish, squid, shrimp, and crab are safe for human consumption provided that they are fresh and washed thoroughly, and internal organs such as gills and intestines are removed before cooking,” BFAR said. — Revin Mikhael D. Ochave 

Typhoon Pepito leaves trail of flooding as it exits Philippines

SEVERAL PARTS of the northern mainland Luzon were flooded as tropical storm Pepito (international name: Saudel) crossed the country, but no casualties and minimal preemptive evacuation was undertaken, according to a disaster management official.

Assistant Secretary Casiano C. Monilla,  deputy administrator for operations of the Office of Civil Defense, said disaster risk reduction and management teams have been on alert with the forecast of typhoons in the fourth quarter.

He said preemptive evacuations were immediately undertaken in areas prone to landslides and floods to avoid casualties.

“I also would like to commend iyong ating mga kababayan na sila ay (our countrymen for being) very cooperative,” Mr. Monilla said in an online briefing on Wednesday.

Weather bureau PAGASA, in its 5 p.m. advisory on Wednesday, has lifted all warning signals as the typhoon moved towards the West Philippine Sea, where it intensified into a severe tropical storm.

It is expected to be out of the Philippine area by Thursday morning or afternoon.

PAGASA forecasts Saudel to “turn westward beginning Friday towards the central portion of Vietnam.”

Kershaw, Dodgers down Rays, 8-3, in World Series opener

CODY Bellinger and Mookie Betts powered the offense while Clayton Kershaw pitched six strong innings as the Los Angeles Dodgers opened the World Series with an 8-3 victory over the Tampa Bay Rays on Tuesday at Arlington, Texas.

Two days after his go-ahead home run in Game 7 of the National League Championship Series, Bellinger gave the Dodgers an early Fall Classic advantage with a two-run shot in the fourth inning. Betts hit his first postseason home run for the Dodgers in the sixth to open a 7-1 advantage.

Kershaw (1-0) pushed aside his rocky playoff history to give up one run on two hits over six innings with one walk and eight strikeouts. He retired 13 consecutive Rays batters until Tampa Bay’s Kevin Kiermaier hit a solo homer in the fifth.

Kershaw now has 201 career postseason strikeouts, moving past John Smoltz (199) and into second place all-time behind leader Justin Verlander (205). He is 12-12 lifetime with a 4.22 ERA in the 36 playoff appearances, including 29 starts.

In his first World Series start, Rays right-hander Tyler Glasnow struggled with his control, giving up six runs on three hits and six walks in 4 1/3 innings. Three of those walks came around to score, including two in the Dodgers’ four-run fifth inning. Glasnow fanned eight.

The Dodgers stole three bases in the fifth to match a World Series record for a single inning.

Betts led off the fifth with a walk and stole second base before Corey Seager walked. The pair then pulled off a double steal while Justin Turner struck out. Betts scored on a fielder’s choice by Max Muncy, and Seager came home on a Will Smith single for a 4-1 lead. Smith’s hit knocked Glasnow (0-1) from the game.

Chris Taylor and pinch hitter Enrique Hernandez added RBI singles in the fifth as the Dodgers took a 6-1 advantage.

The lead swelled to 8-1 in the sixth on Betts’ home run to right field and an RBI double from Muncy.

With Kershaw out of the game, the Rays tried to claw back in the seventh inning as Mike Brousseau and Kiermaier delivered RBI singles off Dodgers left-hander Victor Gonzalez. The threat was halted when Gonzalez snagged a line drive from Mike Zunino and turned it into a double play by getting Brousseau off the bag at second.

The Dodgers improved to 3-1 in series openers this postseason, while the Rays are 2-2 in Game 1s. Los Angeles also won the opener of the 2017 World Series 3-1 against the Houston Astros before falling in seven games. — Reuters

NLEX secures elusive first win

By Michael Angelo S. Murillo, Senior Reporter

The NLEX Road Warriors finally notched that elusive first win in the PBA Philippine Cup, defeating the Northport Batang Pier, 102-88, in their battle of struggling teams on Wednesday at the Angeles University Foundation Gym in Pampanga.

NLEX (1-3) came out with a steadier thrust on both ends of the court all throughout the match to finally barge into the win column of the ongoing Philippine Basketball Association tournament after four tries while sending Northport (0-4) reeling to their fourth straight defeat. 

The Road Warriors had control of the opening half on the lead of Kiefer Ravena and veterans JR Quinahan and Jericho Cruz.

They would take a 20-15 lead after the first 12 minutes of the contest then proceeded to establish an even wider lead of 10 points, 49-39, at the halfway point of the match.

In the third canto, the Batang Pier tried to reclaim some ground and fight back.

They narrowed the gap to five points, 63-58, with 5:37 on the clock.

NLEX, though, would stay ahead the rest of the quarter, taking a 75-68 lead entering the fourth quarter.

Despite continuously being frustrated by the Road Warriors, the Batang Pier remained undeterred.

They opened the payoff frame with an 8-2 run, led by Kevin Ferrer, to come within one point, 77-76, at the 10:27 mark.

But NLEX survived the onslaught, answering with a 16-2 run in the next five minutes to widen the gap once again, 93-78.

It was a hole that proved to be too deep to recover from for Northport as it went on to slump to the defeat.  

Mr. Ravena led the way for NLEX with 25 points with Mr. Quinahan adding 17.

Kevin Alas had all-around numbers of 16 points, 10 rebounds and six assists for the Road Warriors. 

Mr. Ferrer, meanwhile, was the high point man for Northport with 18 points, followed by rookie Sean Manganti with 16.

Christian Standhardinger only had seven points but had 13 rebounds and five assists.

Sean Anthony was not able to finish the game for the Batang Pier because of a suspected pulled hamstring he absorbed in the first quarter. 

TESTED POSITIVE
Incidentally, Wednesday’s matches were played under the pall of the news earlier in the day of the league having its first possible case of the coronavirus.

In a statement, the PBA said a referee tested positive for the virus after undergoing a swab test on Monday, the result of which came out on Tuesday night.

The referee was said to be showing no symptoms of the coronavirus but was already taken to the quarantine facility in Capas, Tarlac, for observation. 

A follow-up swab test was scheduled for the person under monitoring on Wednesday to ascertain the findings.

First and second layer contacts of the referee have been identified and were asked to go into isolation. They will be retested on Saturday, Oct. 24.  

With the development, the PBA moved to reassure that there was nothing to worry about and it was dealing with the situation accordingly, saying, “Safety and security of all is our paramount concern.” 

Lock down or ramp up?

Metro Manila mayors have all agreed to keep their respective cities, and one town, under general community quarantine or GCQ for the rest of 2020. This was according to Interior and Local Government Secretary Eduardo Año. In this line, perhaps we shouldn’t expect any more monthly announcements on changes in restrictions in this fourth quarter, or until 2021.

Movement will also continue to be restricted for those under 18 and over 65, while curfew hours have been adjusted to midnight to 5 a.m. And, no Christmas parties, according to the Interior Secretary, to avoid further spread of COVID-19. In this regard, perhaps it is safe to assume that GCQ status will stand even if COVID-19 cases continue to go down in the National Capital Region.

Of about 360,000 COVID-19 cases in the country, more than half or about 181,000 cases are in Metro Manila. And, according to researchers from OCTA Research Team, the cities of Makati and Mandaluyong in Metro Manila; Baguio in the Mountain Province in Northern Luzon; and, Lucena in Quezon in Southern Luzon are the current top high-risk areas for COVID-19 based on rising average number of new cases daily and rising critical care occupancy.

The OCTA Research Team is a research group composed primarily of UP faculty members and alumni. Its research team also includes contributors from the University of Santo Tomas and Providence College in the United States of America. OCTA has been under fire recently from the government for publicizing its research findings and quarantine recommendations.

Based on its latest research, as reported by GMA News, Makati City is said to top the list of high-risk areas as it averaged 59 COVID-19 cases daily from Oct. 11 to 17. The “Attack rate” was at 10%, while critical care occupancy in city-based hospitals was at 79% as of Oct. 16. The report indicated that an “attack rate” of 7% or below was “safe.” Attack rate refers to the percentage of people who get sick relative to size of population.

Baguio City came in second during the same period with 39 COVID-19 cases recorded per day and a higher attack rate of 11.1%. Mandaluyong City came in third with 34 COVID-19 cases per day, but a lower attack rate of 8%. Lucena City in Quezon came in fourth place with 24 COVID-19 cases per day and an 8% attack rate. In the top 10 high-risk areas as well were Pasig City, Iloilo City, Pasay City, Marikina City, Ilagan in Isabela, and Batangas City.

OCTA is concerned that high-risk areas “may experience an overwhelming of their healthcare systems and their medical frontliners in the coming weeks.” They also noted the urgent need by some cities “to further intensify their efforts at testing, tracing, and isolation to reverse the increase of transmissions at the community level,” GMA News reported. “They need to implement more aggressive and effective localized lockdowns with stricter border controls to suppress further viral transmissions.”

As a resident of Makati City, I view the OCTA report with concern. Makati is a sort of melting pot, where hundreds of thousands of people go through the city daily for work and business and to access services and goods. In fact, I would even suspect there are more transients or “visitors” in the city during the day than there are residents given that many Makati residents also work outside the city.

Some references indicate that Makati City is the 16th largest city in the country and has a population of almost 600,000 residents with about 19,000 residents per square kilometer. But the daytime population is estimated to be more than one million during a typical working day because of the large number of office employees and service providers coming in for work.

Perhaps it takes only one or two sick people from outside the city to infect maybe about 10-20 city residents while at work or in public transportation. And those 20 others can easily infect even more people as they go home at the end of the day. In this line, an average of 59 cases daily in the city is not difficult to reach. Of course, as more people come in and out of the city, it becomes more difficult to strictly enforce quarantine restrictions and health protocols.

And this was precisely why I wrote last week that I received with cautious optimism the news that the national government would be easing restrictions on public transportation and increasing train capacity. The intention, of course, is to improve mobility particularly to and from work. This was to coincide with easing age restrictions and curfew hours, to encourage economic activity.

But I also noted that all these initiatives would pose a major challenge: how local governments can continue to effectively ensure public health and safety. I noted that at some point, particularly at the start of easing, we may see an increase in the number of COVID-19 cases in work areas. Allowing more people to move around also gives the COVID-19 virus a free ride around town.

As I had written, I am not privy to data on whether people are more likely to get sick at home, at work, or while commuting to and from work. But, from experience, it seems fewer people got sick when most everybody was made to stay home. And that the number of cases started to go up as soon as we started easing restrictions. And, most of those getting sick appear to be of working age.

Makati City faces a difficult choice. Stricter border controls are definitely out of the question, given the sheer number of non-residents working in the city. There is also a big flow of residents going to work outside Makati. Even localized lockdowns will just be as difficult to implement if we are to consider people’s need to earn a living and to access basic goods. Also, at best, a local lockdown cannot last more than two weeks, and will require economic and social support from the city.

Instead of locking down, the city may have to consider ramping up efforts at testing, tracing, and isolation. I truly believe it is already doing what it can. But, given that Makati remains a high-risk area, then perhaps even more should be done in this regard.

However, to succeed, the city requires the cooperation of people. I notice that many are becoming complacent nowadays, with the easing of restrictions. Some don’t even bother to fill up contract tracing forms at offices or business establishments.

If over the next few weeks the Makati numbers continue to rise, especially as more public transportation becomes available, then maybe the city will have to review its current initiatives. Strictly following health protocols and quarantine restrictions can go only so far in effectively protecting residents and visitors. We should consider other approaches to containing viral spread.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

Property rights and lockdown lefts

An important indicator of an economy’s development and maturity is the degree of its protection of private property rights, both physical and intellectual property. And one measurement of such protection is the International Property Rights Index (IPRI) produced yearly by the Property Rights Alliance (PRA, Washington DC).

On Oct. 16 last year, the IPRI 2019 Report was launched globally in Manila at the Fairmont Hotel, Makati. PRA Executive Director Lorenzo Montanari and IPRI 2019 author Dr. Sary Levy-Carciente, an academic economist from the Universidad Central de Venezuela and Fulbright Visiting Scholar at Boston University, Center of Polymer Studies, came to Manila. The local hosts and co-sponsors of PRA in launching the report were the Foundation for Economic Freedom (FEF) and Minimal Government Thinkers. The Keynote Address was given by Department of Trade and Industry Secretary Ramon Lopez, the Opening and Closing Remarks were given by FEF President Calixto Chikiamco and FEF Chairman and former Finance Secretary Roberto de Ocampo, respectively. I presented one study attached to IPRI 2019, “Banning Brand – Economic and Consumer Impact of Plain Packaging.”

After the global launch in Manila, IPRI 2019 was also launched in three ASEAN cities a few days later and Lorenzo had me tag along to present my paper. The first event was in Kuala Lumpur, Malaysia on Oct. 19 at Intercontinental KL and it was co-sponsored by the Institute for Democracy and Economic Affairs (IDEAS) then headed by its CEO, Ali Salman. Next it was launched in Singapore on Oct. 22 at the Singapore Management University (SMU) and co-sponsored by the Adam Smith Center (ASC) headed by Bryan Cheang. Then it was launched in Jakarta, Indonesia on Oct. 24, at Paramadina University; the event was co-sponsored by the Center for Indonesian Policy Studies (CIPS) and Paramadina Public Policy Institute. CIPS Executive Director Rainer Heufers gave the opening message.

Because of the pandemic and global lockdowns, there is no IPRI 2020. I review again the results of IPRI 2019 covering 129 countries and economies, and IPRI 2018 Reports covering 125 countries.


I also show here the results of Google’s Community Mobility Reports (GCMR) as measurement of changes in people mobility in certain places compared to baseline days, the median value from the five‑week period from Jan. 3 to Feb. 6, 2020. The GCMR shows six areas but for brevity purpose, I show only two, Retail and Recreation (restaurants, cafes, malls, museums, etc.) and Transit Stations (train stations, taxi stands, seaports, etc.).

The table shows two important points about the Philippines. One, it has poor performance in IPRI, poor property rights protection, it ranked only 70th/125 in 2018 and 67th/129 in 2019.

And two in GCMR, the country indeed seems to have the longest and strictest lockdown policies in the whole world. Compare the Philippines with no or light lockdown Taiwan, South Korea, and Sweden, even fellow hard lockdown Malaysia and India. Ours is the highest in negative percent changes even until this month. Meaning people’s mobility and economic freedom to work and do business are still highly restricted by the Philippine government.

Now the Metro Manila Mayors have proposed the extension of GCQ until end December while the Inter-Agency Task Force (IATF) has ruled no Christmas parties to be allowed in December. These are very insensitive policies by both national and local governments. The officials and personnel in charge of these policies and implementation should experience what millions of Filipinos experience — no salaries, no income while the lockdowns are implemented.

There are two important initiatives that do not share the lockdown leftism and alarmism. One, the Great Barrington Declaration (https://gbdeclaration.org/) initiated by three globally prominent academic epidemiologists Dr. Martin Kulldorff (Harvard), Dr. Sunetra Gupta (Oxford), and Dr. Jay Bhattacharya (Stanford) which said that “Current lockdown policies are producing devastating effects on short and long-term public health. The results (to name a few) include lower childhood vaccination rates, worsening cardiovascular disease outcomes, fewer cancer screenings and deteriorating mental health — leading to greater excess mortality in years to come…”

And two, the Concerned Doctors and Citizens of the Philippines (CDC PH, https://www.flattenthefear.ph/) which declared that “the Philippines adopt a national protocol for the prophylaxis and early treatment of COVID-19 that aims to reduce hospitalization and prevent loss of lives… lift all lockdowns to allow our people to begin to rebuild their lives.”

Restricting if not prohibiting the people’s right to work and earn money so they can feed their families, boost their immune system against old and new diseases, is a criminal “cure” that is worse than the disease it purports to solve.

The government should lift the lockdown. By end-October.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

Getting to the bottom of things

WHEN someone is presenting too many charts, going on and on too long, and way past his allotted time, the head of the table (even in a virtual meeting) is bound to curtly interrupt with a question — can you get to the bottom line? This need to cut to the chase strips away the rhetorical flourishes to wrap up with the conclusion.

Getting to the bottom of things focuses on the destination of a meandering journey. Companies use the bottom line as a way to define the most important goal. Is the net profit (or the more current “earnings before income tax, depreciation and amortization” — EBITDA) worth the trouble? Why is this year’s bottom line worse than last year’s? Of course, the pandemic shutdown can explain this decline, but not its severity. And if the bottom line is decreasing, or increasing but embraced by parentheses, can this trend be reversed?

To improve the bottom line, there are mainly two financial categories to look at: revenues and expenses.

Accountants do not accept responsibility for generating revenue, except for the collection part, including tracking days’ receivables. They focus on the expense side. CFOs sign checks and borrow from banks to pay salaries, rent, and representation expenses (now down due to working from home), when revenues are not enough to cover these. They know where the money is going, not so much where it’s coming from. They chase the spendthrifts — can you just stick to fast food take-out for your dine-in client calls? Be sure to wear a face mask when eating.

The revenue side is trickier. It’s why marketing people get paid more than accountants.

Still, salesmen also sell excuses, and are experts in justifying unmet targets. The litany of woes for declining revenues is long. The industry is shrinking. Competition is growing, especially from allied industries. (Home-made jams from the neighborhood are toppling pastry shops.) The competing brand is cooler. This all ends in a dramatic rhetorical question — why don’t you try selling our shitty stuff?

This outburst is met with shocked silence. It portends the sudden exit of the drama queen, maybe to the cooler company she praised, or a new entrant in the business… if either one will take her.

Managing a healthy bottom line has many moving parts. Say, you try to improve your top line by investing in new technology, as well as hiring outside talents and relaunching the brand. But then the competition too has moved forward and changed the game again.

Let’s move to the expense side. Doesn’t headcount reduction (or right sizing) bring savings straight to the bottom line? This looks easy to do. (Are they really working from home, or just taking siestas?) Still, exit packages enhanced to encourage people to jump out of a moving train with a bit of a push, can be a big drain. This cost premium reduces the impact of savings in salaries.

Still, a negative bottom line can be temporary, just as a healthy one is. Scenarios on “when the vaccine is available” offer hope, and a bit of wishful thinking. Analysts understand that financial statements are mere snapshots of particular periods. There may be hidden risks that will impact the bottom line in the next reporting cycle.

Even in social situations, the bottom line is alluded to. It directs where a narrative is headed, what the possible outcome of a thorny situation is, or how a relationship will resolve itself. A rambling monologue of hurts and slights (expenses) and momentary shrieks of delight (revenues) is cut short by posing the question — what’s the bottom line here? Where is this leaky ship headed?

Non-financial situations can use the economic concept of the bottom line. There, perhaps it can be more properly called the “net outcome.”

The bottom line is useful in navigating through life. The revenue of glorious moments is reduced by the miseries of public humiliation and financial reversals. The bottom line tells us not what we have accomplished or even where we failed. It points to what we have left in the day of reckoning.

The last line may be a negative sum telling us we need to work harder at reducing the unhappiness deficit and moving towards the point of breaking even… or breaking down.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Yes, COVID-19 is more serious for the elderly. So what?

ADVOCATES of “herd immunity” strategies often claim that COVID-19 (coronavirus disease 2019) is relatively safe for the young and that most of the victims are old. This observation is correct, but the question is what to make of it. Often the implication — stated or not — is that the response to the pandemic need not be so vigorous because the loss of life, as measured in years, is less than it appears.

It is an uncomfortable but necessary discussion, they say. So be it — but once the conversation turns to which deaths matter the most, other questions about COVID-19 start to arise, almost all of which push in the direction of a very vigorous response. When either foreign enemies or pathogens attack US lives on a noticeable scale, the pushback needs to be very hard indeed.

Consider 9/11, when some 3,000 Americans died. The US mounted a very activist response that included new security procedures at airports, crackdowns on money laundering, increased surveillance, and two wars. Not all of those choices were prudent, but nonetheless they qualify as a very vigorous response.

The point is this: Had three Americans been killed rather than 3,000 — if, say, 9/11 was a US holiday the hijackers didn’t know about, so fewer people were working — the optimal response would not have been all that different. There were a lot of casualties, but it is also significant that several airplanes were brazenly hijacked and flown into major iconic buildings, the Pentagon was hit, and Congress itself came under threat.

Polities that do not respond to such attacks soon find themselves out of business. Not only do they invite further intimidations, but their citizens lose faith in the government’s ability to maintain public order or shape the future of the nation. The entire US system of government may well have been at stake in the decision to respond to 9/11 in a significant way.

By contrast, about 3,500 Americans die each year in fires. To repeat: That is each year. Yet Americans have not responded to deaths by fire as they did to 9/11, nor has a major public discussion ensued.

To be clear, the US probably should do more to limit the number of fire deaths. But they do not threaten the nation and constitutional order in the way that terrorist attacks do. How people die is crucial in helping a nation and society scale its response and frame the debate over what to do.

COVID-19 is obviously more like 9/11 than it is like the annual toll of fire deaths. It commands the headlines every day, has created a global economic depression, is reshaping global politics and the balance of power, causes extreme stress for millions and has significantly harmed America’s global reputation. Yes, there have been some anxiety-driven overreactions, but it is inevitable that humans will respond dramatically to a major worldwide pandemic.

To be sure, the number of US victims is high — 220,000 and counting, plus some number of excess deaths from broader causes. But the event itself is so cataclysmic that “downgrading” those deaths by saying many of the victims were elderly doesn’t make a big difference in terms of formulating an optimal response.

Furthermore, it is likely that coronaviruses will return, which is all the more reason to excel in response now. To consider another example, during the 2002-2003 outbreak of SARS-1, 774 people died worldwide, none of them in America. The countries that took that virus seriously — Korea, Taiwan, and Canada, to name a few — have performed much better during the current crisis. And many of the best biomedical responses, including vaccines and monoclonal antibodies, have evolved from very serious responses to previous pandemics.

One final (rather outlandish) thought experiment: Imagine that an enemy of the US demanded that 100 90-year-old Americans be handed over each year for execution. Of course America would refuse. The age of the victims would not be a factor in that decision.

Pandemics have been civilization-altering events since the beginning of human history, and they still are — especially if we do not respond properly. The need to get the response right, not the relative worth of the young to that of the old, is the main thing that we should be obsessing about.

BLOOMBERG OPINION

Pag-IBIG Fund’s home loan restructuring offers longer payment relief for borrowers

Pag-IBIG Fund is offering up to six months of payment relief, more affordable amortization, and waived penalties under its special restructuring program to help home loan borrowers cope during the pandemic, top executives announced on Monday (Oct. 19).

Secretary Eduardo D. del Rosario, who serves as Chairman of the 11-member Pag-IBIG Fund Board of Trustees and head of the Department of Human Settlements and Urban Development, said that the agency is offering a Special Housing Loan Restructuring Program to further help Pag-IBIG Housing Loan borrowers keep their homes amid the pandemic.

“In support of the government’s efforts, led by President Duterte, in helping Filipinos who are going through financial difficulties due to the pandemic, we are offering a special loan restructuring program to our housing loan borrowers with unpaid monthly amortizations of up to 12 months as of August 2020. We understand the need of our members especially during these times, that is why we are offering this program to help ease their financial burden and provide them time to financially recover until they are able to pay their loans,” del Rosario said.

He said that under this loan restructuring program, borrowers are given the option to lower their monthly payments by extending their loan term, spread the settlement of unpaid dues, and waive penalties on arrears.

“We are also giving them the option to resume payment of their restructured loans by as late as March 2021.  This gives them up to six months of payment relief,” said del Rosario.

Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti, meanwhile, stated that borrowers may apply for the loan restructuring program online, as the agency continues to move transactions to its Virtual Pag-IBIG facility to promote better safety and convenience for members.

“We will be accepting applications for our Special Housing Loan Restructuring Program via Virtual Pag-IBIG to make it easier and safer for our borrowers. They can conveniently apply for the program from their homes, and there is no need to go to our branches anymore. We are also giving all our borrowers ample time to apply as the program is available to them until December 15 of this year,” Moti said.

“I would also like to point out that since the loan restructuring program is meant to help borrowers amid the pandemic, we will not be asking for down payment nor will we charge a processing fee for applications. This program is our way of giving back to our borrowers who religiously pay their monthly housing loan dues with Pag-IBIG Fund but over the past months, have not been able to do so due to the pandemic. We want to assure them that in these times of crisis, they can lean on Pag-IBIG. This is what Lingkod Pag-IBIG is all about,” Moti added.

Suga opposes actions that raise tension in South China Sea

JAKARTA — Japan opposes any actions that escalate tension in the East and South China Seas, Prime Minister Yoshihide Suga said on Monday as he wrapped up a trip to Vietnam and Indonesia, but he added Tokyo was not aiming at an “Asian NATO” to contain any specific country.

Mr. Suga’s four-day visit to the two Southeast Asian countries, his first overseas trip since taking office last month, is part of Japan’s efforts to bolster ties with key regional countries amid concerns about China’s growing assertiveness in the region.

“Japan is opposed to any actions that escalate tensions in the South China Sea. Let me stress anew the importance of all the countries concerning the South China Sea issues not resorting to force or coercion, but working toward peaceful resolutions of the disputes based on international law,” Suga told a news conference in Jakarta.

Mr. Suga’s Southeast Asia trip follows a meeting in Tokyo this month of the “Quad,” an informal grouping of India, Australia, Japan and the United States that Washington sees as a bulwark against China’s growing regional influence.

China has denounced the grouping of the four democracies as a “mini-NATO” aimed at containing its development.

“Our response in the South China Sea is not aimed at any one country,” Suga said, when asked if Japan wanted to create an Asian version of the North Atlantic Treaty Organization (NATO).

Mr. Suga must balance Japan’s deep economic ties with China with security concerns, including Beijing’s growing push to assert claims over disputed East China Sea isles. Some in his ruling party want to see a harder line, after ties warmed under his predecessor, Shinzo Abe.

“Japan is determined to defend its territory, territorial waters and air space,” Mr. Suga said, adding Japan also opposed actions that raised tensions in the East China Sea.

Several members of ASEAN (the Association of Southeast Asian Nations) have territorial disputes with China in the vital South China Sea, but are wary of alienating the group’s major economic partner and getting entangled in an intense confrontation between Washington and Beijing.

But some welcome Japan’s greater engagement in the region.

Mr. Suga agreed with Indonesian President Joko Widodo on Tuesday to speed up talks on the export of Japanese defence gear and technology to Indonesia and have their defence and foreign ministers meet soon.

A day earlier, the Japanese leader and Vietnamese counterpart Nguyen Xuan Phuc also agreed in principle on a military equipment and technology export pact. — Reuters

K-pop culture machine boosts Netflix growth

NEW YORK/SEOUL — A zombie drama, a TV series about a supernatural nurse and one about an antisocial children’s book author helped turn South Korea into one of Netflix’s biggest sources of growth in the international markets, a source familiar with the matter said.

Netflix said 46% of its net new global paid customers in the third quarter came from the Asia Pacific region, where revenue rose 66% from last year, primarily Japan and South Korea, the company reported in a letter to investors on Tuesday.

The source cited data that could be disclosed later this week when a Netflix representative is expected to appear for South Korea’s annual parliamentary audit during which the company’s investment is likely to come up. It was not immediately clear exactly what will be discussed at the meeting.

The company is eager to demonstrate its big investments in the region as well as its role in making Korean pop culture popular and more accessible outside of Korea.

Netflix’s South Korean business has played a major role in third-quarter growth. The world’s largest paid streaming video service now serves 3.3 million paid members in the region as of Sept. 30, the source said.

Overall, Netflix now serves more than 195 million paid subscribers.

The company has helped fuel and is fueled by the global popularity of the pop culture machine of South Korea. Since 2015, the world’s largest subscription streaming video platform has invested nearly $700 million financing partnerships and co-productions, the source said.

Since late 2019, it has ramped up investments and landed multi-year content partnerships with Korea’s major studios including CJ ENM/Studio Dragon and JTBC for access to their Korean shows.

More than 70 Korean-made shows from local creators have been released as Netflix-branded originals around the world and are available in 31 subtitled languages and more than 20 dubbed languages.

In October, Netflix released the original documentary Black Pink: Light Up the Sky about the highest charted female Korean act on the Billboard 100. The group’s recent music video for “How You Like That” broke an all-time YouTube record as the most watched video in a 24-hour period with 86.3 million views.

South Korea in May passed the revision to the country’s telecommunications business act, dubbed as “Netflix law,” to require all content providers including foreign companies to share network cost burden with local internet service providers.

The revision came after Netflix in April sued South Korea’s internet network operator SK Broadband, an affiliate of the country’s top mobile carrier SK Telecom Co Ltd.

The two companies failed to reach an agreement on the US streaming giant’s use of SK Broadband’s internet service without sharing network cost despite SK Broadbandís expansion of network infrastructure to support Netflixís increasing traffic.

Netflix asked the Seoul Central District Court to rule that it is not obligated to pay additional fee. — Reuters

Pandemic speeds labor shift from humans to robots, WEF survey finds

ZURICH — Robots will destroy 85 million jobs at mid-sized to large businesses over the next five years as the COVID-19 pandemic accelerates changes in the workplace likely to exaggerate inequalities, a World Economic Forum (WEF) study has found.

Surveys of nearly 300 global companies found four out of five business executives were accelerating plans to digitize work and deploy new technologies, undoing employment gains made since the financial crisis of 2007-8.

“COVID-19 has accelerated the arrival of the future of work,” WEF Managing Director Saadia Zahidi said.

For workers set to remain in their roles in the next five years, nearly half would need to learn new skills, and by 2025, employers will divide work between humans and machines equally, the study found.

Overall, job creation is slowing and job destruction is accelerating as companies around the world use technology rather than people for data entry, accounting and administration duties.

The good news is that more than 97 million jobs will emerge across the care economy, in tech industries like artificial intelligence (AI), and in content creation, the Geneva-based WEF said.

“The tasks where humans are set to retain their comparative advantage include managing, advising, decision-making, reasoning, communicating and interacting,” it said.

Demand would rise for workers who can fill green economy jobs, cutting-edge data and AI functions, and new roles in engineering, cloud computing and product development.

Around 43% of businesses surveyed were set to reduce their workforce due to technology integration, 41% planned to expand their use of contractors, and 34% envisioned expanding their workforce due to technology integration, the survey found. — Reuters

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