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PSSEA seeks fast release of permits

SOLAR energy developers appealed to the Department of Energy and the Energy Regulatory Commission to fast-track the processing of applications and approval of permits through online mechanisms to help complete the on-going energy infrastructure projects across the country.

In two separate letters to the agencies on April 30, the Philippine Solar and Storage Energy Alliance (PSSEA) said that now is the “perfect time to put up the online system and process applications without the need for face-to-face interaction.”

“Such system will effectively allow government and private sector to achieve its mutual interest of project completion of all energy infrastructure projects without risking public health,” it added.

According to PSSEA Chairperson Tetchi C. Capellan, the commission told them that the agency is currently processing pending applications and cases electronically.

The appeal came as the solar energy industry is gearing up for workplace adjustments after the easing of quarantine protocols by mid-May.

Ms. Capellan said that most solar companies are preoccupied with imposing social distancing protocols to protect their workers from COVID-19 (coronavirus disease 2019) after the lockdown period.

The group said it had conducted a survey among member solar energy firms, which revealed that most of them will continue implementing modified work arrangements, such as work rotations and work-from-home schemes, until June.

Solar firms also plan to reconfigure their office spaces to rigidly enforce the recommended two-meter distance protocol, while they make the wearing of face masks or shields mandatory.

Further, some companies will be conducting rapid testing for COVID-19 to their employees. For example, SunAsia Energy, Inc. will make rapid testing available for all their employees, free-of-charge, to be administered soon as they go back to work.

“[W]e expect repeat tests for better disease surveillance especially among high risks employees who reside in congested communities and are more vulnerable due to their daily commute and wider contact with people,” Karen Capellan, the business development manager and safety coordinator of SunAsia Energy, was quoted as saying. — Adam J. Ang

Twilight prequel book coming, written from vampire Edward’s perspective

LOS ANGELES — Author Stephenie Meyer thrilled fans of her best-selling Twilight novels on Monday by announcing she will release a prequel that explores the characters’ love story from the perspective of vampire Edward Cullen.

Called Midnight Sun, the new book will chronicle Cullen’s past and the time he first meets Bella Swan, a human high school classmate who later becomes his wife. Earlier installments have been told from Bella’s point of view.

The story “takes on a new and decidedly dark twist” in the upcoming book, publisher Little, Brown and Company said in a description on its website.

Meyer’s original four Twilight books sold more than 100 million copies. They were adapted into a blockbuster film series released by Lions Gate Entertainment Corp. starting in 2008 that starred Robert Pattinson and Kristen Stewart.

On ABC’s Good Morning America show, Meyer said she hoped the book would be a welcome distraction from the global COVID-19 pandemic.

“It’s a crazy time right now, and I wasn’t sure if this was the right time to put this book out, but some of you have been waiting for just so, so long. It didn’t seem fair to make you wait anymore.”

Twilight became a trending topic on Twitter on Monday.

“I’m ready for the hard-hitting teenage heartbreak all over again… I think,” wrote Twitter user @theartsyreader1. “What am I saying, I’m FREAKIN’ EXCITED.” — Reuters

Close Reads: Vintage Diaz

By Maria Jovita Zarate

MOVIE REVIEW
Himala: Isang Dayalektika ng Ating Panahon
Directed and edited by Lav Diaz
Running time: 7:05 min

ON April 21, Lockdown Cinema, a loose organization devoted to raising funds for displaced movie workers, ran a two-hour live streaming of tributes to National Artist Ishmael Bernal’s Himala. Dubbed Gabi ng Himala, it featured, among others, re-enactments of the more memorable scenes of Bernal and screenwriter Ricky Lee. There are hits, and there are misses. More of the latter. Whoever thought of putting in and directing Nadine Ilustre and Marian Rivera to re-interpret Nora Aunor’s Elsa should be made to explain to the schoolmaster why they thought they could tinker with a masterpiece. Ano ba?

In between are discussions surrounding the relevance of Himala to these times, and how the movie’s themes and tropes still resonate with the nation’s current state of affairs. Those were highly discursive moments, especially with Ricky Lee talking about his sources and influences, and directors pitching in a piece of thought. Or two. Blah-blah.

So much for the banal. So much for platitudes.

Give it to Philippine cinema’s auteur to rise above the throng and illustrate how re-telling and re-imagining can still be stretched by not confining the deed to the strictures of the text and its temporal context. In Himala: Isang Dayalektika ng Ating Panahon, Lav Diaz invokes dialectics, precisely, as tensions of the past and the present — thesis and anti-thesis — and the frictions and fusions that arise.

In his retelling, an ensemble of actors and non-actors were shot individually, watching Himala from the confines of their domestic spaces in the time of state-imposed quarantine. They are watching Elsa’s last scene, where she was to address the townsfolk of Cupang, Himala’s mythical town of sin and sadness.

We hear Elsa yelling to the crowd: “Ipinatawag ko kayong lahat, dahil may gusto akong ikumpisal…” (“I called on you because I have something to confess…”). Until the shots are fired and pandemonium ensues. It’s a disembodied Elsa, and what is on Diaz’s screen are the serial scenes of individual viewers and their bodily responses to the scene. Gestures speak and the bodily movements are small and hardly perceptible.

The development is subtle, until Elsa says “May ipagtatapat ako sa inyo…” (“I have something to reveal to you…”) and the slouched body of the viewers at that moment further dips down and reaches for the back support, until we realize Bernal’s 35-second Chekhovian silence flowing through Nora Aunor is now in Diaz’s hands. And Lav wields that silence and takes it as his own. We hear the fatal shot until the chaos of panic, experienced only as sounds of shrieks, wails and cries for help, but those viewing it on screen heave a sigh, take deeper puffs with a cigarette, twitch, crease that space between the eyebrows, or take an empty gaze into to some unknown far-away.

Movie actor John Lloyd Cruz takes the coup de grâce as we see him watching the tail-end of the chaos, audio slightly reduced now. He takes a sigh, throws away the mobile phone from where he was watching, and fixes his gaze outside. The leaves of the tree outside his window are quivering. Then he stands up, approaches his real-life son sleeping on a mattress, plants a kiss and exits frame, and we are left with the image of the child, almost stirred to wakefulness. But not yet.

The last frame is an abandoned street, overtaken by lahar, reminiscent of Himala’s Cupang in its wretchedness. Presumably this is new footage captured from the recent lahar storm in towns adjacent to the Taal Volcano. In its steadiness, the camera captures the faint and the feeble — a leaf crossing the street, the edges of a black garbage bag trembling by the sidewalk, branches and palms fluttering, and perhaps, because it is imperceptible, a grain of sand rising and falling, rising and falling. Give it to Diaz (and of course his lensman) to make the barren and the bleak luminous, and turn it into a silent testament to all that is terrible and traumatic in our history.

And still not yet, because in not so many words, Diaz leaves a salient reminder that like the quivering leaves outside the window of John Lloyd’s home, the truth trembles, illusion reigns, and the body politic, like the currents of the summer winds, remain inert and waiting. Everything about Himala: Isang Dayalektika ng Ating Panahon is vintage Diaz — the silence is his fortress, the steadiness of his vision and his camera in his previous works of eight or nine hours is now leveraged in a seven-minute work. He calls our situation now as delubyo (“deluge”) — a torrent of lies foisted on the nation, on an entire people. Diaz is angry as he was in his recent films. He should be. And, yes, some of us are as angry. But strangely something else drowns our anger.

Himala: Isang Dayalektika ng Ating Panahon can be viewed on the ABS-CBN Facebook page,

https://www.facebook.com/ABSCBNnetwork/videos/443645549800580, streaming at 1:46:00.

Maria Jovita Zarate teaches at the UP Open University.

LANDBANK launches P3-billion loan program for private schools

LAND BANK of the Philippines (LANDBANK) has rolled out a P3-billion lending program for private schools to aid them in their “study now, pay later” scheme for students amid the coronavirus disease 2019 (COVID-19) pandemic.

In a statement on Tuesday, LANDBANK said it has allotted P3 billion for its ACADEME or Access to Academic Development to Empower the Masses towards Endless Opportunities lending program to extend credit to private high schools, private technical-vocational education training institutions, colleges and universities.

The credit support will let these academic institutions help their students continue their studies via “study now, pay later” schemes.

The loans carry an interest rate of three percent per annum and are payable “based on the maturity of the sub-promissory notes but not to exceed three years.”

“Given the financial constraints brought about by the COVID-19 pandemic, LANDBANK is financing interventions to ensure that students will be able to enroll in school when classes finally resume. The LANDBANK ACADEME Lending Program supports the education sector in providing students greater access to quality education amid the health crisis we are all facing,” LANDBANK President and CEO Cecilia C. Borromeo was quoted as saying.

The bank’s ACADEME program provides schools refinancing or rediscounting for promissory notes from students issued by their parents.

Schools can borrow as much as 70% of the sub-promissory note per semester and subject. However, LANDBANK said schools can only borrow up to a certain maximum amount based on the net borrowing capacity of the institution.

The loans will be issued per semester, either in lump sum or in parts, and will be credited directly to the bank account of the school.

Institutions eligible for the lending program include private junior and senior high schools with permits to operate from the Department of Education and private technical-vocational education training institutions regulated by the Technical Education and Skills Development Authority.

LANDBANK said private colleges and universities can also avail of the program if they offer undergraduate programs authorized by the Commission on Higher Education.

The lending program is available until June 30, 2021. — B.M. Laforga

Suntrust signs O&M deal for casino

SUNTRUST Home Developers, Inc. has signed an operation and management (O&M) contract with Westside City Resorts World, Inc. for its hotel casino project in Parañaque City.

In a disclosure to the stock exchange on Tuesday, the company said the agreement took effect on May 4, 2020 and will be valid until July 11, 2033. It is to be automatically extended or renewed unless terminated earlier.

“The O&M agreement is among the transactions contemplated in the co-development agreement, executed on October 28, 2019 between Suntrust and Westside,” it said.

“Westside, as co-licensee of Travellers International Hotel Group, Inc. under the license issued by the Philippine Amusement and Gaming Corporation, may enter into any agreement or contract for the operation and/or management of the Main Hotel Casino,” it added.

Suntrust will be the sole and exclusive operator and manager of the Main Hotel Casino based on the agreement signed.

Suntrust will also be entitled to a fee equivalent to the entirety of the gross revenues of the Main Hotel Casino, minus 1% of the gross gaming revenue on VIP and 3% of the gross gaming revenue on slot machines and mass market tables, which will go to Westside.

The company is currently developing a hotel casino project with Westside as part of Megaworld Corp.’s Westside City at the Manila Bayshore Integrated City in Parañaque. The project is envisioned to be a five-star hotel with at least 400 rooms and a casino establishment.

This is part of Suntrust’s venture into the tourism industry after it welcomed Hong Kong’s Suncity Group Holdings, Ltd. as a majority investor last year. Suncity’s wholly-owned subsidiary Fortune Noble Ltd. bought a 51% stake in Suntrust in October.

Shares in Suntrust at the stock exchange gained six centavos or 5.04% to P1.25 each on Tuesday. — Denise A. Valdez

PAL, Cebu Pacific prepare to fly again

BUDGET carrier Cebu Pacific and flag carrier Philippine Airlines (PAL) on Tuesday unveiled their safety measures as they prepare for the resumption of commercial flights.

The Presidential Palace also announced on Tuesday that the temporary ban on international inbound flights, which started on Sunday, will only be until May 8, 11:59 p.m.

Cebu Pacific, operated by Cebu Air, Inc., said all its pilots and cabin crew will undergo rapid antibody tests before deployment. All its operating crew, including ground staff, will also don personal protective equipment (PPE) while on duty.

“Cleaning and disinfection procedures have been ramped-up for all CEB facilities and equipment such as self check-in kiosks, check-in and bag drop counters and shuttle buses. Alcohol-based hand sanitizers will be provided for all passengers and staff at the airport and inside the aircraft,” the budget carrier said.

It said all its aircraft will also undergo extensive daily disinfection, and passengers will be required to wear face masks upon entry at the airport and for the duration of the flight.

Cebu Pacific also said it may initially restart commercial operations with a limited number of domestic flights.

PAL, operated by PAL Holdings, Inc., advised its passengers to be at the airport early: four hours before international departures and three hours before domestic departures from airports in the Philippines.

“Due to the government’s extension of the Luzon-wide enhanced community quarantine period, all PAL international and domestic flights are canceled up to May 15,” it also said.

PAL said it continues to operate all-cargo flights to carry essential medical supplies into the country from the Asia-Pacific region. — Arjay L. Balinbin

How PSEi member stocks performed — May 5, 2020

Here’s a quick glance at how PSEi stocks fared on Tuesday, May 5, 2020.


Shares up as Duterte changes tone on water firms

By Denise A. Valdez, Reporter

THE PHILIPPINE market emerged as one of Asia’s best performers on Tuesday as the main index bounced back on the president’s apology to listed water concessionaires.

The 30-member Philippine Stock Exchange index (PSEi) gained 99.58 points or 1.78% to close at 5,671.67 yesterday. The broader all shares index also added 38.68 points or 1.14% to 3,424.98.

“Positive comments from President Duterte in his speech (Monday night) toward several business leaders improved the general sentiment and increased optimism, pushing the PSEi higher today,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail yesterday.

“(Tuesday’s) gains wiped out almost all its losses from (Monday). Investors cheered the renewed cooperation between government and the private sector which overshadowed concerns of geopolitical tensions abroad,” he added.

President Rodrigo R. Duterte apologized to the Zobel brothers and Manuel V. Pangilinan on Monday as he said the coronavirus disease 2019 (COVID-19) pandemic has humbled him.

He also said he is “ready to talk” and “will be reasonable,” alluding to the government’s rift with Manila Water Co., Inc. and Maynilad Water Services, Inc. regarding their water contracts.

Manila Water is under Ayala Corp. (AC), while Maynilad is majority owned by Metro Pacific Investments Corp. (MPIC), listed companies led by the Zobels and Mr. Pangilinan, respectively.

Following Mr. Duterte’s remarks, shares in AC, MPIC and Manila Water surged on Tuesday, ending the session belonging to the market’s top five gainers with a growth of 14.73%, 13.55% and 12.05%, respectively.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the movement of AC and MPIC stocks were “above 20-day moving average volumes showing that there’s conviction in the rally of these stocks.”

Most sectoral indices closed in green territory on Tuesday: holding firms jumped 177.29 points or 3.29% to 5,560.85; industrials rose 154.23 points or 2.11% to 7,454; property gained 38.95 points or 1.35% to 2,912.92; financials picked up 3.45 points or 0.29% to 1,167.49; and mining and oil added 2.18 points or 0.04% to 4,625.57.

The sole declining index was services, which fell 1.17 point or 0.08% to 1,350.48.

Value turnover stood at P6.43 billion with 619.49 million issues switching hands, up from P5.11 billion the day prior. Advancers beat decliners, 118 against 74, while 38 names ended unchanged.

Foreign investors snapped their 33-day selling streak, with the market recording a net foreign buying of P86.52 million yesterday. “It is not much but it ends more than 20 days of consecutive net selling,” Mr. Mangun said. “We may see the main index move higher in the following days and test resistance at 5,850-6,000.”

Peso climbs on inflation

THE PESO rose due to positive inflation data. — BW FILE PHOTO

THE PESO strengthened on Tuesday on the back of positive market sentiment on easing inflation and amid expectations of another contraction in the US services sector.

The local unit finished trading at P50.52 per dollar yesterday, appreciating by 7.5 centavos from its P50.595 close on Monday, according to data from the Bankers Association of the Philippines.

The peso started the session at P50.61 per dollar. Its weakest showing was at P50.61 while its strongest was at P50.49 against the greenback.

Dollars traded increased to $558.66 million from the $349.35 million seen on Monday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso’s gain came after the release of April inflation data.

“The peso exchange closed stronger as sentiment was supported by the latest easing trend in inflation which is the slowest in five months,” he said in a text message.

April headline inflation eased further to 2.2% from the 2.5% in March as well as the three percent seen in the same month last year, according to the Philippine Statistics Authority.

Downside risks mainly stemmed from the decrease in transport costs due to falling oil prices. This offset the uptick in food commodities during the lockdown in Luzon.

Meanwhile, a trader said the peso was stronger on profit taking amid expectations of weak US data overnight.

“The peso strengthened due to profit taking amid likely sharp declines in US services reports,” the trader said in an e-mail.

The Institute for Supply Management will report the non-manufacturing index for April overnight.

Reuters reported that the US non-manufacturing index fell to a reading of 52.5 in March, which is the lowest since August 2016 as industries reported moderation in new orders and decline in employment due to the virus outbreak. A reading below 50 indicates contraction.

For today, Mr. Ricafort gave a forecast range of P50.40 to P50.60 per dollar, while the trader expects the local unit to move around the P50.50 to P50.70 band.

Asian currencies were mostly firmer on Tuesday, as easing lockdowns in some parts of the world offset worries about rising tensions between China and the United States.

The Southeast Asian economy has been hit with a double whammy of a slump in oil prices and disruptions caused by virus-driven curbs.

The Taiwan dollar was the best performer among emerging Asian currencies gaining 0.3%, while the Singapore dollar rose 0.2% .

Elsewhere, the Indonesian rupiah weakened as much as 0.3% after Southeast Asia’s largest economy recorded its weakest economic growth in nearly two decades in the first quarter.

The Thai baht weakened marginally after April consumer prices fell 2.99% from a year earlier, well below expectations, to mark its biggest decline in more than a decade. — L.W.T. Noble with Reuters

CITIRA faces ‘tweaks’ to maximize potential as stimulus measure

OBJECTIONS to the corporate tax reform bill could be receding because of its potential for resuscitating the economy, though it may need to be reconfigured before it becomes a full-blown post-pandemic stimulus measure, legislators from both chambers said.

Senate President Vicente C. Sotto III said after a caucus Monday that senators agreed to include the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA), or Senate Bill No. 1357, in the May 4-June 5 agenda.

CITIRA was initially positioned as a corporate tax reform measure. It lowers the corporate income tax (CIT) to 20% eventually and streamlines fiscal incentives. The measure was passed in the House in September but stalled in the Senate before it recessed for the Easter break, during the course of which the coronavirus disease 2019 (COVID-19) outbreak locked down Luzon and disrupted the economy.

Senator Juan Edgardo M. Angara, vice chairman of the chamber’s ways and means committee, said the the measure will have to be amended in response to the crisis.

“We should settle the incentive debate to eliminate any uncertainty in the minds of (potential and actual) investors,” he said in a phone message Tuesday. “We may have to tweak the bill given the current difficult economic environment.”

Still pending in the Senate are measures that will simplify the tax structure for financial instruments, and provide a uniform framework for real property valuation. These bills were passed by the House of Representatives in September and November, respectively.

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua said the National Economic and Development Authority (NEDA) is in talks with Congress over the possible incentives that may be granted to essential industries.

“I think it will be a combination of targeted and time-bound tax incentives. There will be credit guarantees and there will also be direct subsidies to their workers,” Mr. Chua said on ANC Tuesday.

He said a longer transition period may be considered due to the pandemic to allow businesses to adjust.

“The core element of the fiscal incentive modernization is really right, and it is about having more performance-based, targeted, time bound and transparent incentives. I think we should still pursue that, and once the transition period has ended, then we can use a new system of incentives to attract even better investments.”

The government has so far enacted measures cutting personal income taxes and increasing or adding levies on several goods and services.

Another law grants an estate tax amnesty and an amnesty on delinquent accounts, while two more laws separately increased the excise tax on alcohol products and conventional and electronic cigarettes.

In the House, Representative Jose Maria Clemente S. Salceda of Albay, who chairs the chamber’s ways and means committee, said any adjustments to the bill should include a marked preference for companies introducing proven technology.

“Somebody who has established technology should be given more incentive than one who has been there for 35 years. Are we reducing incentives? In general, no. We’re just being more transparent and more value-adding,” he told BusinessWorld by phone Monday.

He said sentiment on CITIRA has shifted “because there’s a stimulus being pursued, of course in addressing COVID and addressing congestion in Metro Manila,” he added, referring to proposals to provide incentives for businesses to relocate to the provinces, an initiative known as “Balik Probinsya.”

Metro Manila remains the epicenter of the outbreak in the Philippines, largely because the population in the capital is highly concentrated because of the lack of economic opportunity in the hinterland.

Mr. Salceda has said the House plans to include COVID-19 relief via incentives when CITIRA is discussed at the bicameral conference committee.

In response to Sen. Christopher Lawrence T. Go’s “Balik Probinsya” proposal, Mr. Salceda said CITIRA is “structurally biased towards incentivizing countryside development.”

“While NCR (National Capital Region) projects get three years of income tax holiday (ITH) and two years of enhanced deductions, adjacent provinces get four years of ITH and three years of enhanced deductions. Even better, areas outside these regions get six years of ITH and four years of enhanced deductions,” he said on April 24.

Mr. Salceda said that while CITIRA’s passage is currently in the Senate’s hands, the House is thinking of taxing the e-commerce industry more after consumers turned to online channels during the quarantine.

“We want to tax; we have to cover e-commerce. We have to tap the platforms. Pinag-aaralan na namin (We are studying the matter), actually,” he said. — Charmaine A. Tadalan and Genshen L. Espedido

‘Build, Build, Build’ priorities shifting in favor of health, digital

THE government will assign higher priority to health and digital infrastructure projects in its flagship “Build, Build, Build” program, the National Economic and Development Authority (NEDA) said.

NEDA Acting Director-General Karl Kendrick T. Chua said the Development Budget Coordination Committee (DBCC) is currently reviewing the infrastructure program to “reprioritize” such projects.

“These are now being reviewed by the DBCC. What we are thinking right now is we have to reprioritize our infrastructure program. We have to give more space to health infrastructure, digital infrastructure, and those are important in the new normal,” Mr. Chua said in an ABS-CBN News TV interview Monday.

Separately, he told BusinessWorld that the government may also consider funding more infrastructure projects via private-public partnerships (PPPs).

“If (the financing structure offers) value for money and will benefit the people of this and future generations, why not,” he said by mobile phone Monday when asked if the economic team will consider increasing the share of PPPs to free up funds for the government.

The government softened its stance on PPP-funded projects when it expanded its P4.2-trillion infrastructure program to 100 projects, 26 of which are to be funded through PPPs. The previous list of 75 included eight PPPs.

Mr. Chua said despite the shifting priorities, the government will forge ahead with the infrastructure program due to its key role in the economic recovery.

Mr. Chua said the government still “stands a good chance” of completing “a lot” of the flagship projects when it continues to implement them in the next two and a half years, despite the disruptions from the pandemic and quarantine.

This year marks the second straight year the infrastructure timetable has been disrupted. In 2019 the budget was delayed until April and public works spending bans were in place because of the May elections, which wasted much of the dry season, which construction firms need to maximize before the rains halt work.

The administration hopes to start all 100 projects and complete “a significant number” before President Rodrigo R. Duterte steps down in 2022.

Mr. Chua said health safety protocols will still be observed once construction works for these projects resume. — Beatrice M. Laforga

PHL crisis spending seen low amid ample fiscal space

THE Philippines may need to supplement its initial crisis spending plans, which are currently the equivalent to as much as 6% of gross domestic product (GDP), but the government retains adequate fiscal space to escalate its stimulus efforts if needed, analysts said.

Alex Holmes, an emerging-markets economist with Capital Economics, said the Philippines has “plenty of space providing more fiscal support” in its efforts to contain the pandemic. He estimates the country’s debt stock to increase 10 percentage points to still-manageable levels.

Mr. Holmes said the economy will need “more fiscal support” to cushion the fallout from the pandemic, with GDP expected to contract 4% this year.

“The government has set aside about 5% to 6% of GDP for health care and economic efforts. Given that debt dynamics in the Philippines do not appear too worrying, there is plenty of space for providing more fiscal support. And we think the economy will need it. GDP is set to contract by around 4% this year,” he said in an e-mail.

The Economist recently ranked the Philippines as the sixth-strongest among 66 emerging economies in terms of financial strength.

The Economist evaluated the emerging markets across four “potential sources of peril:” public debt, public and private foreign debt, cost of borrowing and reserve cover.

The Philippines’ 2019 debt-to-GDP ratio was revised down to 39.6% using 2018 as the base year, after the indicator was initially reckoned at 41.5%. The government’s economic managers set a 46.7% debt-to-GDP target this year.

Meanwhile, Fitch Solutions Country Risk and Industry Research, estimated that the government’s fiscal policy response at about 2% of GDP, noting that the allotted funds “have been relatively small.”

Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch said the government will have to roll out fiscal packages “commensurate to the expected economic loss from lockdown and the projected changes to the economy in a world of social distancing.”

Mr. Mapa said among the fiscal packages rolled out by the government for COVID-19 damage control amount to around P400 billion, which includes the cash aid program for poor families, support for the health care sector and the wage subsidy program.

The National Economic and Development Authority in March estimated that the economy could lose P428.7 billion to P1.35 trillion in gross value added , equivalent to 2.1 to 6.6% of nominal GDP this year.

Mr. Mapa said to cushion the economic fallout, the government needs to roll out a “timely and sizable fiscal recovery plan” to help stimulate the economy.

He said providing cash to affected sectors is also expected to drive consumption and while “ample support” to small businesses will keep the “backbone of the economy afloat” as this will ensure many Filipinos will keep their jobs.

“A modest fiscal response or a package deployed in a belated manner could find scores of Filipinos already unemployed, with the cost to save the job market more costly,” he said. — Beatrice M. Laforga