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IATF-EID to meet to create ‘New Normal’ rules

The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) will be formulating guidelines for the so-called New Normal as the Philippines is slowly transitioning from stricter lockdown conditions to a gradual reopening of the economy.

In a statement, IATF-EID Spokesperson Harry L. Roque said a meeting is expected soon to create policies for the post-community quarantine. Widespread lockdowns have been imposed since March due to the coronavirus disease 2019 (COVID-19) pandemic.

“(T)he IATF directed its sub-Technical Working Groups on Data Analytics and Anticipatory and Forward Planning to convene a meeting to formulate unified recommendations concerning guidelines applicable to areas that may eventually be placed under the New Normal,” he said.

Based on the IATF-EID’s omnibus guidelines issued last May, areas with no community quarantine in place are considered to be under the “New Normal.”

Mr. Roque said the meeting will be composed of “the Department of Health Technical Advisory Group, the Health Care Professionals’ Alliance Against COVID-19 as well as economic experts to balance health and economy.”

Earlier this week, National Task Force (NTF) against COVID-19 chief implementer Secretary Carlito G. Galvez Jr. said the government’s National Action Plan is in its third phase, which focuses on risk management as the country slowly learns to live with the virus until a COVID-19 vaccine is produced.

Mr. Roque said the proposed New Normal guidelines will be in line with the third phase of the National Action Plan.

IATF-EID approves health protocols for Palawan plebiscite

The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) approved the health and safety protocols to be used for next year’s plebiscite on whether to divide Palawan into three separate provinces.

In the IATF-EID Resolution No. 78 issued on Friday, the task force approved “the health and safety protocols for the conduct of a plebiscite in the first quarter of 2021 to ratify the Division of the Province of Palawan, pursuant to Republic Act No. 11259 and relevant provisions of the Constitution.”

The health protocols include allowing voting to take place over two days and limiting the number of voters in a room to five.

Registered voters who are between the ages of 18 and 21, those who are 60 years old and above, those with immunodeficiency, comorbidity, or other health risks, and pregnant women — people whose mobility is currently restricted by health protocols related to the ongoing coronavirus disease 2019 (COVID-19) pandemic — will be allowed to leave their homes for the purpose of voting in the plebiscite.

The Palawan plebiscite was supposed to take place on May 11 this year but was suspended due to the pandemic.

Republic Act No. 11259 was signed into law last year and calls for the division of Palawan into three provinces: Palawan del Norte, Palawan Oriental, and Palawan del Sur. — Gilliam M. Cortez

Duterte appoints CA Justice Rosario to Supreme Court

President Rodrigo R. Duterte has appointed the newest member of the Supreme Court.

Court of Appeals Justice Ricardo Rosario will fill the lone vacancy at the Supreme Court, which was previously filled by former Justice Jose Reyes, Jr. who stepped down on Sept. 18.

The newly appointed magistrate graduated from the Ateneo de Manila University’s law school in 1993 and spent his years as a lawyer at the National Bureau of Investigation and Metro Waterworks Sewerage System.

Mr. Rosario was appointed as Quezon City assistant prosecutor, then served as a judge at the Metropolitan Trial Court of Manila and Makati City Regional Trial Court until he was promoted as Court of Appeals Associate Justice in 2005

The High Court is currently filled with Mr. Duterte’s appointees. The President has already appointed 12 magistrates to the 15-man tribunal, including Mr. Rosario who took his oath before Chief Justice Diosdado Peralta. — Kyle Artistophere T. Atienza

Palace to ‘study’ unused P1.41-B donation flagged by COA

The Palace on Friday said it was looking into how to address an unused P1.41-billion donation which had been flagged by the audit commission.

“As per the Office of the Executive Secretary, the Office of the President is already working on the guidelines and studying how to best address the findings of the Commission on Audit (COA), which include how donations will be effectively and efficiently utilized,” Presidential Spokesperson Harry L. Roque said in a statement on Friday.

The COA said in its 2019 audit report released on Thursday that the Office of the President had a donation of P1.41 billion that has remained untouched since Dec. 31, 2019.

News reports have identified the donation as having come from the Lopez-owned company Benpress Corp., although the COA report does not note the source of the donation.

The COA did say that the donation was meant for economic development projects such as agrarian reform, assistance to calamity victims, and rehabilitation of depressed areas.

The COA said the Office of the President did not use the funds due to a lack of policies specific to its utilization.

“Guidelines and work and financial plan (WFP) for the utilization of donations totaling P1,412,943,850.69… were not formulated, hence, benefits that could have been derived therefrom were not attained,” the COA said.

“We reiterated our recommendation and Management agreed to issue the necessary guidelines, and WPF or any other similar documents with the same purpose of utilizing the donated amount, taking into consideration the donation’s objectives and Section 5 of the General Provisions of FY 2019 General Appropriations Act.” — Gillian M. Cortez

Makabayan solons seek pay hike for nurses in private hospitals

Lawmakers are pushing for a measure that will give private sector nurses higher wages.

The six-man Makabayan bloc at the House of Representatives filed House Bill 7851, also known as the Salary Increase for Private Sector Nurses Act of 2020, which seeks to institutionalize a minimum base pay of P32,000 for nurses in private hospitals which is equivalent to salary grade 15 as enshrined in the Salary Standardization Law of 2019.

“They are the most numerous professionals in most hospitals. On duty for eight-12 hours, they care for the sick 24/7, at the risk of their very own lives. They are considered ‘heroes’ in the fight against the COVID-19 pandemic. Their commitment to service and the nursing profession have cost them their very own lives. Yet, our Filipino nurses are among the least paid compared to their counterparts in other countries,” the bill’s explanatory note stated.

Citing data from the Bureau of Local Employment, the progressive bloc said an entry-level registered nurse receives a monthly salary of around P8,000 to P13,500, while a hospital-hired nurse earns only P9,757.

“Some private sector nurses are even paid only P5,000 to P10,000 per month, with salaries pegged at the minimum daily wage in the region. These are far below the P537/day minimum wage or P11,000/month for workers in the National Capital Region,” the bloc said.

The lawmakers said such amounts are significantly less than the family living wage of P1,022 per day or P31,089 per month needed by a family of five in the National Capital Region to live decently.

“The government has been oblivious to the situation of nurses. Calls and demands of nurses for higher salaries and salary upgrading fell on deaf ears and was even openly opposed by the Department of Budget and Management despite clear provisions in Republic Act 9173 or Philippine Nursing Act of 2002.”

The minimum salary of private sector nurses shall also be increased and adjusted accordingly with those of their Nurse 1 counterparts in the public sector, the bill provides.

The bill entitles any victims of provisional violations to back wages and full payment of unpaid benefits.

“In addition, he/she shall be entitled to refund of interest and attorney’s fees to be paid by the agency if he/she is forced to litigate,” the bill further stated.

The measure penalizes violators with a fine of not less than P500,000 and/or an imprisonment of not less than one year nor more than two two years.

“For violations committed by agencies, juridical persons, or any other entity, the head of the agency and Board of Directors or executive officials of the agency shall assume full responsibility.” — Kyle Artistophere T. Atienza

August trade gap widest in 5 months

The country’s external trade deficit grew to its widest level in five months in August as the annual decline in imports once again outpaced that of exports, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary PSA data showed the trade-in-goods deficit at $2.076 billion in August, wider than the $1.860 billion in July but narrower than the $3.005-billion level in August 2019. The deficit in August 2020 was the biggest in five months or since March’s shortfall of $2.368 billion.

That month saw merchandise exports decline by 18.6% to $5.128 billion compared to a revised 9.1% slump in July and 1.4% increase recorded in August 2019. It marked the sixth straight month of decline for exports, as well as its fastest slide since the 26.9% plunge recorded in May.

Meanwhile, merchandise imports contracted for the 16th straight month in August by 22.6% to $7.204 billion. This was faster than the 5.2% fall in August 2019, albeit slightly slower than 23.8% in July 2020.

The country’s total external trade in goods — the sum of export and import goods — was $12.332 billion in August, 21% down year on year. This brought the total trade in the eight-month period to $93.190 billion, 23.2% lower than $121.335 billion a year ago.

For the eight months to August, exports fell 16.6% to $39.290 billion, just above the Development Budget Coordination Committee’s (DBCC) projection of a 16% contraction for the year.

Imports dropped by 27.4% to $53.900 billion, above the DBCC’s target of an 18% contraction for 2020.

Year to date, the country’s trade deficit stood at $14.610 billion, narrower than the $27.071-billion trade gap in 2019’s comparable eight months, but wider than the $12.534 shortfall in the previous month.

Exports of manufactured goods, which made up 83.4% of total sales in August, went down by 17.8% to $4.278 billion from $5.206 billion previously.

Electronic products, which accounted for 68.4% of manufactured goods and 57.1% of total goods sold overseas, slipped by 20.1% to $2.928 billion in August, with semiconductors chipping in $2.134 billion, down 21.3%

Exports of agro-based products shrank by 17.2% to $334.575 million. Forest products also fell by 27.3% to $28.990 million, as well as mineral products with -10.4% (to $388.501 million) and petroleum products with -99.4% (to $271,580).

On the import side, purchases of capital goods, which made up 32.4% of the import total, declined by 27.6% to $2.334 billion.

Raw materials and intermediate goods, comprising 40.9% of the total, fell by 8.9% to $2.946 billion.

Imports of consumer goods slid by 24.6% to $1.281 billion. Mineral fuels, lubricant and related materials also dropped by 47.7% to $563.391 million.

The trade figures in August remain unsurprising as the coronavirus pandemic dragged on, Philippine Exporters Confederation, Inc. (Philexport) President Sergio R. Ortiz-Luis, Jr. said over a phone interview.

“Nothing really affected the performance besides the pandemic. Even internationally [and locally], it is still [all about the] pandemic,” he said.

University of Asia and the Pacific (UA&P) Senior Economist Cid L. Terosa attributed the latest trade results to limited economic activity in other countries as well as having a “stronger peso” that contributed to the weakness in exports.

“[G]iven the weak economic performance of the country’s major trading partners, it was not surprising that exports continued to be weak. Meanwhile, merchandise imports improved slightly relative to the previous month because of the cautious advance of manufacturing production in the country,” Mr. Terosa said in an email.

Japan was the top market for Philippine goods in August, accounting for 17.3% with $887.38 million. It was followed by the United States with a 14.7% share or $751.68 million, and China’s 14.3% share or $732.57 million. Other key markets for exports include Hong Kong (14.1% share or $724.27 million) and Singapore (6.4%, or $330.67 million).

On the other hand, China was the biggest source of foreign goods purchased in August, accounting for 25.3% at $1.82 billion. Other major import trading partners were Japan (8.7% or $623.69 million), US (7.2% or $517.77 million), Singapore (6.9% or $495.11 million), and South Korea (6.8% or $493.11 million).

Meanwhile, the Philippine peso averaged P48.8433 versus the dollar in August, adding 62.42 centavos from its average of P49.4675 in July, central bank data showed.

In a statement, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said prospects for the country’s economic growth “continue to dim” with imports’ continued double-digit decline particular for consumer and capital goods in August.

“This development will likely translate to a similar impact on both household consumption and capital formation in the GDP (gross domestic accounts) accounts with ING expecting negative growth for both [the third and fourth quarter of 2020.],” Mr. Mapa said.

“In short, the sharp narrowing of the trade deficit will likely keep [the peso] supported for the balance of the year, but import trends point to worrying signs of poor growth prospects for the months to come,” he added.

For UA&P’s Mr. Terosa: “The same trend will persist for the rest of the year, but merchandise imports will most probably increase faster due to the revitalization of manufacturing production as the economy goes through more relaxed quarantine conditions and stronger seasonal demand for merchandise imports in the last quarter of the year.”

Philexport’s Mr. Ortiz-Luis remains hopeful exports and imports will at least flatten towards the end of the year, with a rebound in external trade in 2021. – Ana Olivia A. Tirona

Meralco rates rise in October

Power rates in Metro Manila will rise for the first time in five months, with typical households likely seeing a P24 hike, Manila Electric Co. (Meralco) said on Friday.

In a statement, the utility company said the overall electricity rate edged up by P0.1212 per kilowatt-hour (kWh) to P8.5500 per kWh this month.

“This month’s overall rate is still significantly lower by P0.5362 per kWh compared to last year or October 2019, which was at P9.0862 per kWh. The net rate reduction since the start of the
year is still well over P1 per kilowatt hour,” Meralco said.

Meralco attributed the rate hike to higher generation charges as the Luzon grid saw strong demand and limited supply when lockdown restrictions eased in Metro Manila.

The company said that the Malampaya natural gas restriction between Aug. 28 and Sept. 6 tightened supply, along with the forced outage of several large plants in the first week of September.

This led to this year’s highest Wholesale Electricity Spot Market (WESM) offer cap of P32 per kWH on Sept. 5 and 7. WESM is where Meralco sources 11.6% of its supply.

“Higher Luzon demand and more generation capacity on outage resulted in P1.1605 per kWh increase in WESM rate. Had WESM prices remained at their August 2020 levels, the generation charge and the overall rate this month would have decreased by 8-centavos and 14-centavos, respectively,” the company said.

Luzon electricity demand rose after Metro Manila returned to a more relaxed lockdown in September, with peak demand in September reached 10,570 megawatts (MW) compared to August’s peak demand of 10,422 MW.

September was also the first time since the start of the lockdown that demand exceeded its level in the same month a year ago. The September 2019 peak was lower at 10,392 MW.

Power supply agreements charges also went up by P0.1044 per kWH. Transmission charges, taxes, and other charges for residential customers fell slightly by P0.0161 per kWH.

The company said Universal Charge-Environmental Charge collection remains suspended, based on the Energy Regulatory Commission’s (ERC) directive.

Meralco last month settled fines “as a gesture of goodwill” after allegedly breaching billing directives from the ERC. The regulator had fined Meralco P19 million for allegedly failing to clearly communicate accurate billing information to customers during the strict lockdown and for breaking its compliance with the installment payment scheme.

The company was also directed to cover P275 million in distribution, supply, and metering charges for two million poor customers with less than 100 kWh monthly power usage.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Jenina P. Ibañez

BSP liquidity support for PHL hits P1.9 trillion

The central bank’s moves to support the economy amid the pandemic has led to a liquidity infusion of P1.9 trillion into the financial system.

“The Bangko Sentral ng Pilipinas (BSP) has injected approximately P1.9 trillion (or $39.2 billion) in liquidity into the financial system. This is equivalent to 9.6% of the gross domestic product,” BSP Governor Benjamin E. Diokno said in a Viber message to reporters.

“The amount includes the new provisional advance of P540 billion which is targeted to be released in the first week of October,” he added.

On Oct. 1, the Monetary Board approved the additional advances to the national government, following the P300 billion repurchase agreement of the BSP with the Bureau of the Treasury that was fully paid in September.

Republic Act No. 7653 or the Bayanihan to Recover as One Act authorized the BSP to lend up to 30% of its average revenue to the national government, higher than the previous 20% limit. With already P840 billion in direct provisional advances, the BSP can still lend P10 billion to the national government.

“The BSP is working hand-in-hand with the national government to ensure that the coronavirus pandemic will leave little permanent scar on the Philippine economy and its people,” Mr. Diokno said.

In August, domestic liquidity rose 14.2% year on year to about P13.6 trillion from the 14.7% expansion pace in July, BSP data showed. However, bank lending has yet to pick up, with outstanding loans by big banks only growing by 4.6% in August, easing from the 6.7% in July and the slowest since the 4.4% in November 2006.

In its latest policy review last Oct. 1, the BSP has cited ample liquidity as part of the reason for maintaining the overnight reverse repurchase, lending, and deposit rates at record lows of 2.25%, 2.75%, and 1.75%.

“Given limited government funds for additional stimulus measures, monetary easing may have to do more weight lifting in terms of providing more support measures needed most by the economy at this time,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Mr. Ricafort said another reduction in the reserve requirement ratio of banks as liquidity support remains possible given the Monetary Board authorized up to 400 basis points of reduction this year.

So far, the BSP has slashed reserve requirements by 300 bps – 200 bps for big banks and 100 bps for thrift and rural banks. — Luz Wendy T. Noble

BSP reviews proposed LGU loans worth P25B

The central bank reviewed P25.1 billion worth of proposed loans by local government units (LGUs) in the first six months of 2020, most of which are infrastructure projects across the country.

In a statement, the Bangko Sentral ng Pilipinas said only 78 projects worth P22.3 billion were rendered with an Monetary Board opinion. All LGUs are required to get the Monetary Board’s opinion on domestic borrowing plans.

The number of requests for MB’s review of proposed LGU borrowings climbed by 31% to 93 from the 69 in the second half of 2020.

“The processing of the remaining 15 requests were deferred due to incomplete documents or information submitted,” the BSP said.

Across regions, LGU units from Metro Manila had the biggest loan amount submitted for review at P5.5 billion.

In the city of Manila, proposed projects amounting to P5 billion include Manila Zoo’s redevelopment; housing resettlements; and the construction of a new 10-storey Bagong Ospital ng Maynila and its parking building.

The second largest review request came from Eastern Visayas (Region VIII) where proposed projects submitted for MB opinion reached P3.246 billion. These proposals include construction projects of a hospital, transport terminals, and road openings, among others.

Meanwhile, LGU units from Region XII or SOCCSKSARGEN submitted the third highest cumulative loan proposals worth P2.204 billion. Among projects proposed include construction of hospitals and public markets, acquisition of heavy equipment, and installation of a solar panel system.

Under Republic Act No. 11211 or the New Central Bank Act, proposed borrowings by government entities and LGUs need prior opinion from the MB, underscoring the BSP’s role as the government’s advisor on official credit operation. — Luz Wendy T. Noble

Allotments for P27.8-billion national ID project reach P7.1 billion

THE GOVERNMENT has already released P7.1 billion out of the P27.8 billion allotted for the national ID system, which is seen to aid low income families get easier access to financial services.

The Philippine Statistics Authority (PSA) received P2 billion when the project started in 2018 followed by budget allotments worth P2.1 billion, P3 billion, and P7.1 billion for 2018, 2019 and 2020, respectively, National Statistician Claire Dennis S. Mapa said in an online briefing on Friday.

“We’ve received so far P7.1 billion in total,” Mr. Mapa said in Filipino.

“For 2021, because we have a large target for registration, we were allotted with P4.1 billion budget. So including 2021, it will be about P11.2 billion,” Mr. Mapa added.

The first phase of the registration will start on Oct. 12, Monday, in identified low-risk coronavirus disease 2019 (COVID-19) areas in the country. This year, the government aims to register at least five million heads of household into the Philippine Identification System or the national ID system.

“We have enough budget to begin the registration this year. We are waiting for additional budget which we have submitted so we can begin the preparation right now to continue the registration next year,” Socioeconomic Planning Secretary Karl Kendrick T. Chua said on Friday.

The identified 32 priority areas for registration are Ilocos Sur, La Union, Pangasinan, Cagayan, Isabela, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales, Batangas, Cavite, Laguna, Quezon, Rizal, Albay, Camarines Sur, Masbate, Antique, Capiz, Iloilo City, Negros Occidental, Bohol, Cebu City, Negros Oriental, Leyte, Compostela Valley, Davao del Sur, Davao del Norte, Davao Occidental and Tawi-Tawi.

Republic Act No. 11055 or the Philippine Identification System Act signed August 2018 provides for a single identification system for all citizens. This is seen to ease the know your customer process of banks as it can be used as the sole ID to open an account.

Mr. Mapa said their timeline for this year is to have five million low income families or nine million heads of these households join the first step of the registration process where they will be given an appointment slip to visit registration centers near their homes to complete the process.

The same will progress to the second part of registration which will include the gathering of biometric information such as fingerprints, iris scan, and photographs, Mr. Mapa said.

Officials said they will abide by safety protocols in handling the registration process. Despite the restrictions caused by the pandemic, they target to complete the registration and issuances of IDs by June 2022.

“We in the financial sector commit to provide an easier access for Filipinos to financial services using the Philsys,” Fintech Alliance Chairman Angelito “Lito” M. Villanueva said on Friday. — L.W.T. Noble

Electric cooperatives asked to offer grace period, staggered payment for bills

THE National Electrification Administration (NEA) has again asked all electric cooperatives to offer a grace period and staggered payment methods for electricity bills due during the lockdown.

NEA Administrator Edgardo R. Masongsong issued Memorandum No. 2020-047, endorsing the Energy department’s advisory on power sector bill grace periods.

“All electric cooperatives are enjoined to abide by the directives, specifically the implementation of 30-day grace period and staggered payment for unpaid bills, particularly those that fall due within the community quarantine period,” Mr. Masongsong said in a press release on Friday.

The Energy department on Sept. 23 ordered this extension of grace periods and staggered payment schemes after the government retained the declaration of a state of calamity due to the global coronavirus pandemic.

Republic Act No. 11494, or the Bayanihan to Recover as One Act (Bayanihan II), requires the electric power value chain to offer a minimum 30-day grace period and allow installment payments of electricity bills falling within the period of a community quarantine.

The first Bayanihan law had also required grace periods and staggered payments.

The DoE appealed to local government units to also provide payment extensions for the applicable taxes, fees, and dues by owners of energy facilities.

Presidential Proclamation No.1021 extended the state of calamity declaration throughout the country for a year, or until Sept. 12, 2021.

NEA covers 121 electric cooperatives in the country. — J.P. Ibañez

Converge sets IPO price at P16.80 each

Converge ICT Solutions, Inc. on Friday priced near the bottom of an indicated range its initial public offering (IPO), which is expected to raise up to P29 billion ($600 million).

The fiber broadband provider told the stock exchange that its final offer price was set at P16.80 each, near the low end of its P16.50-P19 indicated range. This is also 30% lower than its original P24 ceiling prince.

Converge said it will offer 1.51 billion shares, composed of 480.84 million shares for the primary offer and 1.02 billion shares for the secondary offer. It has an over-allotment option of up to 225.79 million shares.

At the final IPO price, Converge may raise up to P29 billion ($600 million), which Reuters said would make it the country’s second-largest ever listing, next to Robinsons Retail Holdings Inc’s $627 million share sale in 2013.

The offering was well oversubscribed, with 80% of allocations going to investors like global emerging market funds and sovereign wealth funds, a person with direct knowledge of the matter told Reuters. The person declined to be identified citing lack of authorization to speak to the media.

Shares in Converge would start trading on Oct. 26, after its offer period on Oct. 12 to 16.

The firm’s ambitions to ramp up broadband internet in the country comes as business operations and movement of people in and around Manila – a coronavirus hotspot – remain restricted since President Rodrigo R. Duterte imposed a strict lockdown in mid-March.

In a separate disclosure on Friday, the company said it has set a P1 million-per-investor maximum subscription amount for local small investors participating in its IPO.

Analysts expect Converge’s IPO to attract more investors with its final offer price.

“With a discount from the ceiling, it is looking more attractive to investors. Considering that initially the upper limit was P24.00, it’s a 30% discount,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Converge’s offering marks the PSE’s second IPO for the year as the market has been battered by the coronavirus pandemic. The first was grocery operator MerryMart Consumer Corp., which listed on the exchange in June.

The company intends to use the proceeds from its IPO to expand its operations to reach Visayas and Mindanao. Converge’s internet services are currently limited to Luzon island.

Converge is owned by Pampanga-based businessman Dennis Anthony H. Uy and is backed with a $225-million equity funding from US-based private equity firm Warburg Pincus.

In the first half of 2020, it posted a net income growth of 45% to P1.26 billion, with revenues jumping 65% to P6.49 billion due to the increased demand for internet services. — Denise A. Valdez and Reuters

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