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Dining In/Out (09/24/20)

The Peninsula has mooncakes

THE PENINSULA Manila marks the mid-autumn harvest season with the treasured tradition of giving mooncakes. This year, customers can enjoy 10% savings for every 10 boxes of mini mooncakes ordered. Areas within Makati City also enjoy complimentary delivery service with every order of mooncakes. These handcrafted mooncakes come in Traditional Lotus Seed Paste with Yolk and Egg Custard flavors and are available as a selection of eight assorted mini mooncakes for P3,888 or an indulgent box of four mini Egg Custard mooncakes for P2,388. Orders can be placed online through PenChat while the limited edition Peninsula Mooncakes are still available by clicking on https://bit.ly/PenChatFacebook.

Johnnie Walker marks 200th year with Black Label Origin series

MARKING its 200th year, Johnnie Walker introduces the Johnnie Walker Black Label Origin Series in partnership with Manila cocktail joint OTO. The limited edition collection celebrates the spirit of exploration and the many flavor profiles of Scotland. The Johnnie Walker Black Label Origin Series features two blends: the Johnnie Walker Black Label Speyside Origin and the Johnnie Walker Black Label Lowlands Origin. Each of the two blends are made exclusively using whiskies from the Speyside and Lowland regions of Scotland to bring out the primary flavor characteristics of those areas. Johnnie Walker Black Label Speyside Origin is a light and fruity whisky with hints of cut green apple and orchard fruit. Made exclusively from quality single malts from the Speyside region, it features whisky from the distilleries of Cardhu and Glendullan at its heart. Johnnie Walker Black Label Lowlands Origin has a luxuriously sweet and creamy mouthfeel, with vanilla character and subtle notes of toffee. It is made exclusively from a variety of single malt and grain whiskies from the Lowlands, including distilleries of Glenkinchie and Cameronbridge.  The Johnnie Walker Black Label Origin Series is available for P1,899  SRP per bottle exclusively at The Booze Shop (www.boozeshop.ph). There will be two Johnnie Walker Black Label Origin Series cocktails available in OTO for a month in September. The Take Over, The Breaks Over is made with Johnnie Walker Black Label Speyside Origin as the base, plus sherry port, pandan syrup, and citric adjusted tepach. Meanwhile, Good Times, Bad Times features Johnnie Walker Black Label Lowlands Origin, corn tea, ripe mango, and palm sugar syrup. These special cocktails come as the second installment of OTO’s monthly collaboration concoctions, most of the proceeds from which will go to helping the Poblacion bar community. Each order will come with a 120ml cocktail and a free 60ml bottle of the base whisky used. More details will be announced soon; check out OTO’s Instagram page at @oto.ph for more details.

New cooking series US Pork, Eats the Best premieres on Youtube

CELEBRITY chef Rosebud Benitez shares a series of delectable dishes on US Pork, Eats the Best, the newest e-cooking series on her YouTube channel. Featuring US pork as themain ingredient of the recipes,  the first two episodes feature Ms. Benitez’ Pork Belly Casserole recipe, and US Pork Spareribs Sinigang (sour soup). Authentic US pork, stamped with the US Pork logo on its packaging, is available at all leading supermarkets nationwide. Subscribe to Chefmom Rosebud Benitez on YouTube.

Microsoft develops a ‘virtual commute’ for remote workers

MILLIONS of employees now commute from their bed to a desk at home. After the initial euphoria of skipping smog-filled traffic jams and cramped train compartments, a new reality has dawned in which the work day blends into the rest of life, like a never-ending video conference call. Microsoft Corp. has a solution for this.

The company’s Teams collaboration software is adding the ability to schedule a “virtual commute.” It won’t start your car or ride the subway for you, but it will remind users about the end of the work day, suggest tasks to help workers wind down and create a little mental space before kids’ homework, dinner, laundry, and other obligations come crashing in.

For example, Teams will prompt users to list tasks as completed or add them to tomorrow’s to-do list, while asking workers to rate how their day went and suggesting guided meditation, through an integration with the Headspace app.

Pandemic-related burnout and difficulty separating work and personal life has become a surprisingly common concern among Microsoft’s corporate customers, according to Chief Marketing Officer Chris Capossela. “The thing we didn’t predict that we’ve learned is now at the top of customers’ mind is really the well-being of their employees,” he said.

Companies initially worried about employees having the right technology to work from home. “Now it’s getting to be much more about ‘hey how do I know if an employee is burned out, how do I know how they are doing — if they are working too hard?’ All of the things around the emotional well-being or the mental health of employees has risen to the top faster in a way that we didn’t really predict,” he added.

Microsoft will also enable its workplace analytics software to help employers spot and support workers who are at risk of burnout. The software looks at things like after-hours collaboration by an entire team and how that compares with similar teams. New features coming next year will let employers run programs that remind team members to avoid undue overtime.

The new features were set to be announced at Microsoft’s virtual Ignite conference on Tuesday. One more pandemic-era tool from Microsoft: the company’s artificial intelligence software is adding a new Spatial Analysis service that will help clients map and measure physical spaces, which Microsoft said will come in handy for figuring out how to keep customers and workers 6 feet apart. — Bloomberg

How PSEi member stocks performed — September 23, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 23, 2020.


PSEi flat as market anticipates new restrictions

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES continued moving sideways on Wednesday as investors started taking into consideration the expiration of current quarantine measures in the country towards the end of the month.

The benchmark Philippine Stock Exchange index (PSEi) closed flat, shedding 1.56 points or 0.02% to end at 5,892.72. The broader all shares index was, likewise, flat, posting a 1.21-point or 0.03% uptick to 3,545.14.

The main driver of sentiment remains to be the coronavirus disease 2019 (COVID-19) situation in Europe, where cases have surged in the past days, said Darren T. Pangan, trader at Timson Securities, Inc.

COVID-19 cases in Europe swelled 5,331 to 4.54 million as of Wednesday, prompting new restrictions to contain the fresh virus outbreak in the region. Britain has announced tighter restrictions on Tuesday, which Prime Minister Boris Johnson said may last up to six months.

“Locally, investors may be weighing the government’s decision on the quarantine measures to be enforced after the month of September,” Mr. Pangan said in a text message.

The relaxed quarantine restrictions currently in place in Metro Manila and nearby cities are set to last until the end of the month. By October, the government will announce a new set of restrictions, which may tighten, relax or maintain current protocols.

“The general sentiment remains cautious, despite the daily improvement in economic activity. There is some concern that without additional mobility, with the easing of restrictions on public transportation as well as reopening of tourism focused industries, economic activity may be at its peak,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

Timson Securities’ Mr. Pangan said the PSEi’s nearest support area is 5,750, and resistance is 6,100. AAA Southeast Equities’ Mr. Mangun expects the PSEi to continue lower in the remaining two days of the week.

Four of six sectoral indices recorded losses on Wednesday’s closing. Mining and oil dropped 63.35 points or 1.05% to 5,944.54; services trimmed 8.69 points or 0.59% to 1,446.72; property lost 10.62 points or 0.38% to 2,733.81; and financials dipped 0.07 point or less than a percent to 1,142.48.

The two gainers were industrials and holding firms. Industrials improved 68.46 points or 0.87% to 7,872.45, while holding firms picked up 11.63 points or 0.18% to 6,158.34 at the end of session.

Value turnover slipped to P4.45 billion on Wednesday from P4.63 billion the previous day. Some 1.47 billion issues switched hands.

Advancers beat decliners by two, 92 against 90, while 56 names ended unchanged.

Foreign investors were net sellers for the ninth straight day, but net outflows declined to P95.86 million from P655.13 million the previous day.

Peso inches down vs dollar

THE PESO inched lower versus the dollar on Wednesday after the government posted a wider budget deficit in August amid lower revenues.

The local unit closed at P48.47 versus the greenback on Wednesday, down by a centavo from its P48.46-per-dollar finish on Tuesday.

The peso opened Wednesday’s session at P48.52 against the dollar. It climbed to a peak at P48.465 during the session and hit an intraday low of P48.54 versus the greenback.

Dollars traded went up to $580.05 million on Wednesday from $548.8 million on Tuesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened slightly following the release of data showing a wider budget deficit in August.

“The peso was weaker after wider budget deficit data for the month of August due to the coronavirus disease 2019 (COVID-19) and continued decline in government revenues,” Mr. Ricafort said in a text message.

The government’s budget deficit reached P40.1 billion in August, ballooning from the P2.5-billion gap seen in the same month last year, Treasury data released on Wednesday showed. However, last month’s level was lower than the P140.2-billion deficit seen in July.

The August figure brought the eight-month deficit to P740.7 billion, surging by 515% from the P120.4 billion seen in the comparable year-ago period. This has already exceeded the record P660.2-billion gap seen last year.

BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said in a text message that the dollar strengthened as the US economy continues to show signs of recovery.

The US dollar rose against major currencies on Wednesday, supported by positive US economic data and concerns about a second wave of coronavirus infections in Europe and Britain, Reuters reported.

The dollar index, which pits the dollar against a basket of six major currencies, rose to 94.197 on Wednesday, the highest in two months.

For today, Mr. Ricafort sees the peso moving from P48.40 to P48.55 versus the dollar while Mr. Ravelas expects it to range from P48.30 to P48.60. — KKTJ

Duterte’s tough stance on China may signal end of friendly ties

By Norman P. Aquino, Special Reports Editor
and
Gillian M. Cortez, Reporter

PRESIDENT Rodrigo R. Duterte gave his most forceful defense of a 2016 United Nations (UN) ruling favoring the Philippines in a sea dispute with China, in a move that could signal the end of friendly ties with its neighbor, analysts said.

In a speech before the UN General Assembly on Wednesday Manila time —  his first since coming to power four years ago — the tough-talking Philippine leader said the arbitral award was now “part of international law, beyond compromise and beyond the reach of passing governments to dilute, diminish or abandon.”

“We firmly reject attempts to undermine it,” Mr. Duterte said of the arbitration ruling that rejected China’s claim to more than 80% of the South China Sea, without naming China. His successor, Benigno SC. Aquino III, started the lawsuit.

He spoke before a virtual roster of world leaders that included US President Donald Trump and Chinese President Xi Jinping.

Mr. Duterte thanked other countries that supported the decision. “We welcome the increasing number of states that have come in support of the award and what it stands for — the triumph of reason over rashness, of law over disorder, of amity over ambition. This — as it should — is the majesty of the law.”

Mr. Duterte had sought closer trade and investment ties with China since he came to power in 2016, including potential joint explorations for oil and gas in the South China Sea.

“President Duterte’s repeated direct references to the July 2016 arbitral tribunal ruling will be very welcome in the Philippine government, Washington DC, the capitals of the other Southeast Asian claimant states in the South China Sea, Tokyo, Canberra and New Delhi,” said Malcolm Cook, ISEAS-Yusof Ishak Institute’s senior visiting fellow in Sydney. “They will be most unwelcome in Beijing.”

Mr. Duterte’s change of tone on the July 2016 ruling and his decision to defer Philippine withdrawal from a visiting forces agreement with the US suggest that he has been listening more to his Defense and Foreign Affairs chiefs, Mr. Cook said in an e-mail.

“China’s continued aggression in the West Philippine Sea and the lack of follow-through on the billions of dollars of promised Chinese economic assistance and investment have certainly not helped China’s image in the Philippines and the Duterte administration,” he added.

Canceling rather than simply suspending Philippine withdrawal from the military pact on the deployment of troops for war games would further cement this shift in the Duterte government’s security policy and approach to the South China Sea, he said.

The Department of Foreign Affairs in July said the UN ruling was nonnegotiable.

‘360-DEGREE TURN’
The tribunal ruled that China’s claim of historic rights to resources within the sea falling within the ‘nine-dash line’ was illegal.

The court said the Philippines could declare certain areas of the sea as part of its exclusive economic zone because these areas do not overlap with any entitlements claimed by China.

Certain Chinese actions within the Philippines’ exclusive zone violated its sovereign rights and were unlawful, the court said. It added that China’s island-building activities in the disputed waterway had caused severe environmental harm in violation of international conventions.

Mr. Duterte’s 360-degree turn “is a big victory for international law and Philippine sovereignty against his own defeatist policy on China,” Etta Rosales, a human rights activist and former congresswoman, said in an e-mailed statement.

“It is solid proof that the international community’s pressure for Mr. Duterte to submit to and recognize International law is working,” she added.

Mr. Duterte should strive to get the support of more countries, former Foreign Affairs Secretary Albert del Rosario said.

“The next step is for our President and his administration to put in reality the invocation of the arbitral award,” he told the ABS-CBN News Channel. “Our government should work earnestly to get the support of more countries so that the arbitral award will be raised more emphatically next year at the UN General Assembly.”

Mr. Duterte’s UN speech was “heartening,” former Supreme Court Justice Antonio Carpio said in a separate statement.

“I fervently hope that this is the policy that the Duterte administration will implement across all levels — in the protection of our exclusive economic zone in the West Philippine Sea, in the negotiations for the Code of Conduct, and in gathering the support of the international community for the enforcement of the arbitral award,” he said.

Mr. Carpio, Mr. Del Rosario and former Ombudsman Conchita Carpio Morales earlier sued Mr. Xi before the International Criminal Court over his country’s destructive activities in the South China Sea.

Foreign Affairs Secretary Teodoro Locsin, Jr. last week refused to raise the arbitral award before the UN, saying it was “not right” to raise the matter before the body “where numbers talk.”

“Imagine if I had brought the matter up in the UN General Assembly where numbers talk and not right as suggested by idiots,” he said on Twitter.

“Mr. Duterte’s speech signals a change in his foreign policy,” Renato C. de Castro, an International Studies professor from De La Salle University, said by telephone.” That will become the basis now to challenge China’s expansive maritime claim.”

It remains to be seen whether the President would follow through on his rhetoric, Robin Michael Garcia, chief executive officer at polling firm WR Numero research, said by telephone.

“We’ve had numerous diplomatic protests since 2016, but these were never followed up by actual policies,” he said.

Still, Mr. Duterte’s tough stance now “gives other countries hope that the Philippines might be at the forefront again in the South China Sea dispute,” he said. “It remains to be seen whether actual coalitions will be formed.”

Mr. Cook said Mr. Duterte had been the main source of instability in Philippine-US relations since he came to power. “This change of presidential rhetoric, if sustained, will reduce these problems and place Philippine-US relations after the upcoming US presidential election.”

COVID-19 infections top 294,000; death toll rises to 5,091

THE DEPARTMENT of Health (DoH) reported 2,833 coronavirus disease 2019 (COVID-19) infections on Wednesday, bringing the total to 294,591.

The death toll rose by 44 to 5,091 while recoveries increased by 765 to 231,373, it said in a bulletin. There were 58,127 active cases, 86.5% of which were mild, 9.2% did not show symptoms, 1.3% were severe, and 3% were critical.

Metro Manila reported the highest number of new cases with 1,222, followed by Cavite with 228, Negros Occidental with 206, Batangas with 143 and Bulacan with 141.

Metro Manila also had the highest number of new deaths with 23, followed by the Calabarzon region with six, Western Visayas with five, and Central Luzon and Zamboanga Peninsula with two each.

The Ilocos region, Central Visayas, Northern Mindanao, Davao region, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)  and Caraga region reported one death each. More than 3.2 million individuals have been tested for COVID-19, the agency said. The healthcare system is gradually improving as hospitals get decongested and capacity increases, DoH said at a separate briefing.

The critical care use rate in Metro Manila was at 58% as of Sept. 20, down from 67% at the start of the month, the agency said. The Calabarzon region was at 56%, while Bulacan was at 49%. Cebu was at 35%.

The country’s coronavirus death rate stood 1.72%, lower than 3.07% globally, while the infection rate was at 10.47%, higher than the World Health Organization’s (WHO) benchmark of less than 5%.

It takes 11.02 days for cases to double 15.79 days for deaths to double, DoH said.

Also on Wednesday, anti-coronavirus tsar Carlito G. Galvez, Jr. said the government would enforce the third phase of its anti-COVID-19 plan from October to December, when people might ignore restrictions on public gatherings.

“Our focus here is how to sustain our gains for the past six months,” he told an online news briefing.

The government will also seek to lower the cases to the “very minimum level” and bring the daily death toll to a single digit.

Mr. Galvez said the government would strictly enforce health protocols as quarantine protocols are further eased. — Vann Marlo M. Villegas

Duterte defends drug war at United Nations

PRESIDENT Rodrigo R. Duterte on Wednesday defended his deadly war on drugs before the United Nations (UN), accusing some groups of trying to “weaponize” human rights to discredit him.

“The Philippines will continue to protect the human rights of its people especially from the scourge of illegal drugs, criminality and terrorism,” he said in a speech before a virtual roster of world leaders at the UN General Assembly.

The President called out unnamed groups for trying to “discredit the functioning institutions and mechanisms of a democratic country and a popularly elected government which in its last two years, still enjoy the same widespread approval and support.”

“These detractors pass themselves off as human rights advocates while preying on the most vulnerable humans; even using children as soldiers or human shields in encounters,” he said in a veiled reference to Maoist rebels. “Even schools are not spared from their malevolence and anti-government propaganda.”

“They hide their misdeeds under the blanket of human rights but the blood oozes through.”

Mr. Duterte sought “open dialogue and constructive engagement” with the UN as a key to move forward on the issue of human rights.

“But these must be done in full respect of the principles of objectivity, noninterference, non-selectivity and genuine dialogue. These are the fundamental bases for productive international cooperation on human rights,” he added.

Duterte had in the past threatened to cut ties with the UN and European Union (EU), accusing these of interference.

More than 7,000 drug suspects have died under Mr. Duterte’s anti-drug campaign, according to police data, but human rights groups have placed the number at almost 30,000.

The government would boost its anti-drug campaign, presidential spokesman Harry L. Roque told CNN Philippines on Wednesday.

“There is absolutely no legal principle under international law that prohibits states from acting on the scourge of drugs, illegal drugs and terrorism. It is a valid sovereign act,” he said. — Gillian M. Cortez

Nationwide round-up

Lawyer says SALNs, lifestyle checks ‘weaponized’

RECORDS OF public officials’ assets have been “abused” and “weaponized” for politics, an analyst said following Ombudsman Samuel R. Martires’ statement on Tuesday that he has ordered a stop on lifestyle checks.

The Ombudsman also recently issued an order restricting public access to the  Statements of Assets, Liabilities, and Net Worth (SALN) filed annually by all government employees and officials.

“We have abused the SALNs and lifestyle checks. We have weaponized it for politics,” lawyer Antonio Gabriel M. La Viña, former dean of the Ateneo- School of Government, told BusinessWorld on Wednesday.

Mr. La Viña said the Office of the Ombudsman’s memorandum restricting SALN access, including by the media, is a good move as it has been used even in past administrations to demonize some government officials.

He also noted that petitioners who usually file complaints before anti-graft agencies are not those particularly concerned about corruption but fellow government officials “who do not like other people to be promoted” or to succeed in politics.

“Nothing to do with accountability,” he said, “We have seen it in the past. In the time of (Presidents) Arroyo, Aquino, Duterte, it happened.”

Mr. La Viña, however, qualified that media should be exempted from the order given their role as society’s watchdog.

Republic Act 6713, the law on code of conduct and ethical standards for public servants, allows journalists to obtain SALNs without restrictions from the Ombudsman’s office, provided that it will not be used for commercial purposes “other than by news and communications media for dissemination to the general public.”

Gabriela Women’s Party-list Representative Arlene D. Brosas, sought for comment, also said “that transparency is of utmost importance for public servants.”

“We should be more transparent because the 2022 national elections is fast approaching,” she told BusinessWorld on Tuesday.

Meanwhile, Justice Secretary Menardo I. Guevarra said lifestyle checks on government officials should be accompanied by a thorough investigation of possible corrupt acts.

Mr. Guevarra said he “fully understand(s)” where Ombudsman Samuel R. Martires “is coming from” when he ordered a stop on such checks.

“Indeed a lifestyle check as a stand-alone measure will not conclusively indicate whether a person is engaged in some wrongdoing to enrich himself,” he told reporters in a Viber message.

Mr. Guevarra said lifestyle check “has to be intertwined with a much deeper process of investigating specific acts of corruption or other crimes.”

“It is meant to strengthen a finding of wrongdoing, as manifested in the lifestyle of the person concerned,” he said.

“But in any event, government officials and employees, no matter how well-to-do or wealthy they are, are encouraged to live and project a modest life as public servants,” he added.

The Justice secretary also said that the task force probing alleged anomalies in Philippine Health Insurance Corp. (PhilHealth) started lifestyle checks to supplement the fraud and corruption investigations.

“This is a continuing joint undertaking,” he said. — Kyle Aristophere T. Atienza and Vann Marlo M. Villegas

DoLE to push for higher pay for private sector medical workers

LABOR SECRETARY Silvestre H. Bello III will push for a law that will mandate higher pay for medical workers in the private sector.

In a virtual briefing on Wednesday, Mr. Bello said lawmakers have already expressed support for this and he will present the draft bill to the inter-agency task force handling the coronavirus response.

“I am going to present to the inter-agency task force a bill that will propose the pay increase of our nurses and medical workers in the private sector to the level of the nurses and medical workers in the public sector,” he said.

The draft proposes a starting pay of around P26,000 per month.

Mr. Bello said he is hopeful that the task force will endorse it to President Rodrigo R. Duterte for certification as urgent to speed up its passage in Congress.

The Labor chief noted that the low level of salaries in the country for healthcare workers has been one of the reasons why many seek employment abroad.

The government imposed a deployment ban on healthcare workers since April, exempting only returning workers and those whose pre-employment requirements were completed by August 31 this year. — Gillian M. Cortez 

NBI official, brother BI employee face bribery complaint

THE NATIONAL Bureau of Investigation (NBI) filed several complaints against one of its own officials and his brother who works at the  Bureau of Immigration for bribery relating to the illegal entry of foreign nationals.

The NBI recommended the filing of graft extortion charges against its legal assistance chief, Joshua Paul Capiral, and his brother Christopher Capiral.

They are also facing complaints for violating Executive Order No. 608 or “Establishing a national clearance system for government personnel with access to classified matters and for other purposes” and Republic Act 6713 or the code of conduct and ethical standards for public officials and employees.

State agents early this month also filed a corruption complaint against 19 immigration officials and employees involved in the scheme of facilitating the entry of foreign nationals without the required documents. — Vann Marlo M. Villegas

  

Full foreign ownership possible for geothermal, major hydro

SOME TYPES of renewable energy like geothermal are open to full foreign ownership, while other clean power sources are also being studied for similar liberalization, according to the National Renewable Energy Board (NREB).

In July, Energy Secretary Alfonso G. Cusi said he is pursuing a policy that will grant foreign companies a full access to renewable entities in the country to bolster its development for energy security.

Right now, geothermal, biomass, and large hydropower plants can be considered for full foreign ownership as certain components are not necessarily covered by the 60-40 constitutional rule governing the use of indigenous resources, according to NREB Chairperson Monalisa C. Dimalanta.

“There are already boundaries set by Supreme Court rulings,” she said in a webinar hosted by the German-Philippine Chamber of Commerce and Industry.

Ms. Dimalanta said geothermal is classified as a mineral resource under the Renewable Energy Act which can be covered by a Financial or Technical Assistance Agreement. “So, it can be 100% foreign, except that it must be signed by the President,” she added.

The power generation component of impoundment hydropower facilities “can be undertaken by foreign participation,” as long as the water rights are held by Filipinos,” she added.

Biomass plants are also free from constitutional restrictions on foreign ownership, she said.

The constitution allows foreign entities to own only up to 40% of the capital stock of a public utility.

A House measure was passed in March amending the Public Service Act. It seeks to limit the classification of a public utility to electricity distribution, power transmission, and water pipeline distribution or sewage pipeline system.

The NREB, which advises the Department of Energy, is still evaluating the potential for “greater” foreign ownership of wind, solar, and run-of-river hydropower generators.

Mr. Cusi has said that he supports more foreign ownership because “‘yung investment naman nila, ‘di naman nila madadala ‘yan (They cannot abandon the country and take their investments with them).”

Lahat naman halos ng technologies ng renewable ay foreign-sourced (The technologies used in renewable facilities are mostly foreign-sourced),” he said.

The Bayan Muna Party-list has said it is prepared to challenge such a policy. “The degree by which the officials of the Duterte administration are selling our country to foreign interests is truly appalling and gravely condemnable,” Carlos Isagani T. Zarate, its representative, said.

In 2019, renewable energy accounted for 21% of all power generated, according to the NREB. The board wants the share of clean power in the generation mix to return to around 40% over the next two decades. — Adam J. Ang

Trade dep’t confident of retaining GSP+, EU concerns being addressed

TRADE SECRETARY Ramon M. Lopez is confident that the Philippines will retain its tariff perks with the European Union (EU), after the European Parliament voted in support of their removal.

“This is not the first time that this happened. So we are addressing anyway their concerns — just giving them the right information,” he said in an ANC interview Wednesday.

The European Parliament last week asked the European Commission to start the process for temporarily withdrawing GSP+ or  Generalized Scheme of Preferences Plus, privileges enjoyed by the Philippines after the government failed to improve the human rights situation.

GSP+ is an incentive agreement in which 6,274 Philippine products enjoy zero-tariff entry to the European Union provided the country adheres to 27 core international conventions that include human and labor rights, environmental protection, and good governance.

“So far we’ve been faring well. We’ve been able to explain all issues that are raised every year,” Mr. Lopez said, noting that the government responds to information requests during monitoring visits.

European legislators in the resolution cited Philippine human rights issues, including President Rodrigo R. Duterte’s war on drugs that has killed at least 8,663 people.

They also raised concerns about the detention of opposition Senator Leila M. de Lima and the convictions of Rappler founder Maria A. Ressa and former researcher Reynaldo Santos, Jr. for cyber libel.

The Management Association of the Philippines on Wednesday asked the government to take the matter seriously, noting that the removal of tariff perks would hurt various industries and worsen unemployment.

Goods exported under GSP+ preferences usually account for around a quarter of total Philippine exports to the EU each year. — Jenina P. Ibañez

Foreign loans, grants for pandemic response hit $9.9B

THE GOVERNMENT has obtained $9.9 billion worth of loans and grants from external sources as of Sept. 15 to fund its coronavirus disease 2019 (COVID-19) containment effort and to support recovery measures.

“With our historically high credit ratings, we quickly accessed emergency financing from our development partners and the commercial markets at very low rates, tight spreads, and longer repayment periods. To date, the DoF has secured financing support of $9.9 billion,” Finance Secretary Carlos G. Dominguez III said at a Senate budget briefing Wednesday.

His presentation indicated that the Asian Development Bank provided $3.8 billion in financial assistance. The next-largest source of foreign funding was the March issue of dollar bonds worth $2.35 billion.

The World Bank provided $1.2 billion, and the Japan International Cooperation Agency $917 million.

“Our strong fiscal position gave us the headroom to deal with the COVID-19 pandemic… The DoF has ensured that we have sufficient funds to fight the pandemic and meet the challenge of recovery,” Mr. Dominguez added.

He said government borrowings will help it plug the gap from the shortfall in revenue with the economic downturn resulting in lower collections.

Total tax collections dropped 11.59% to P1.661 trillion in the eight months to August.

The government plans to borrow P3 trillion from domestic and foreign sources to close the funding gap, which is expected to be equivalent to 9.6% of gross domestic product. — Beatrice M. Laforga

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