How PSEi member stocks performed — June 4, 2020
Here’s a quick glance at how PSEi stocks fared on Thursday, June 4, 2020.
BSP boosting cybersecurity measures as online transactions grow
THE central bank is working to strengthen cybersecurity measures through regulations, cyber surveillance and collaboration with other government agencies to protect consumers in an era of increasing digital payments.
“We will continue to find innovative strategies to sustain the resilience of the financial services industry as we transition towards the New Economy,’’ Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said in an online briefing.
Mr. Diokno said fraud may come in forms of scams related to investment products. He also noted those recruiting people to lend their personal accounts to receive online transfers from illegal sources in the guise of donations.
The central bank chief said financial institutions are required to have fraud management mechanisms that flag unusual transactions. He said the BSP is regularly coordinating with financial institutions as well as the National Bureau of Investigation and the Philippine National Police in monitoring financial crimes.
The BSP said transactions in InstaPay and PESONet have grown due to the coronavirus crisis.
“InstaPay exhibited sharp growth as this real-time funds transfer facility has gained greater traction especially for online payments for goods and services and low-value remittances,” the BSP said.
InstaPay is an electronic fund transfer scheme that allows amounts up to P50,000 to be credited real-time to a recipient account.
Financial assistance from government agencies also boosted transactions in PESONet, which processes bulk fund transfers of amounts more than P50,000 that are credited by the end of the banking day.
“During the enhanced community quarantine (ECQ), it is notable that the volume and value of InstaPay and PESONet spiked particularly when the ECQ was in effect for the full months of April and May, increasing by 84% and 24%, respectively,” the BSP said.
Meanwhile, BSP Director for Technology Risk and Innovation Supervision Department Melchor T. Plabasan said banks have been boosting cybersecurity measures to guard against fraud.
“They have deployed stronger networks and authentication controls,” he said. — LWTN
PSEi climbs past 6,500 as virus concerns ease
By Denise A. Valdez, Reporter
LOCAL SHARES continued to surge on Thursday as the main index hit the 6,500 mark, marking the market’s best finish since pre-lockdown days.
The 30-member Philippine Stock Exchange index (PSEi) climbed 271.84 points or 4.35% to end Thursday’s session at 6,517.49. The broader all shares index rose 126.72 points or 3.46% to 3,785.03.
This is the PSEi’s seventh straight day of increase and its best close since it hit 6,770.38 on March 6.
“Philippine stocks finished higher Thursday, adding to several sessions of gains as economic data pointed to less severe damage from the COVID-19 (coronavirus disease 2019) pandemic than feared, leaving major equity benchmarks at their loftiest levels since early March,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
After US-based human resource group ADP, LLC reported better than expected job cuts in May, Mr. Limlingan said investors have started getting calmer about the pandemic.
US markets closed with gains on Wednesday: the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices picked up 2.05%, 1.36% and 0.78%, respectively.
Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan also said via text that Thursday’s rise mirrored the performance of US equities.
“The (local) market has been superb…and I think this is brought by the rally coming from US spilling over here,” Mr. Tan said.
While COVID-19 is still an unsolved problem and there is no vaccine yet, governments have started easing lockdowns and investors took it as an added sign of recovery.
“On our shores, this is a positive response on the partial opening of the economy caused by (the relaxed lockdown) in National Capital Region,” Mr. Tan said.
“I’m getting cautious at this and I think this is prone to profit taking, and valuations and geopolitical tensions here in the Philippines (Anti-Terror Bill) and series of protests in US (George Floyd) is a similar scenario before the COVID-19 cases spiked in late February,” he said. “At some point, it (the market) will correct (because of) these issues plus the COVID-19 vaccine, which some say may take a year or two to make.”
All sectoral indices at the PSE ended Thursday’s session higher: financials by 75.01 points or 5.92% to 1,341.11; holding firms by 343.97 points or 5.42% to 6,686.22; property by 89.10 points or 2.78% to 3,286.41; services by 38.61 points or 2.78% to 1,425.10; mining and oil by 124.56 points or 2.72% to 4,688.40; and industrials by 119.23 points or 1.54% to 7,835.01.
Value turnover jumped to P11.52 billion from P8.25 billion the previous day, as some 2.20 billion issues switched hands. Foreigners recorded net purchases of P1.37 billion on Thursday from a net selling of P329.35 million on Wednesday. Advancers beat decliners, 132 against 65, while 42 names ended unchanged.
Peso climbs to P50 per dollar on improved global risk appetite
THE PESO strengthened further on Thursday on positive market sentiment amid easing lockdowns.
The local unit closed at P50 per dollar yesterday, rising by 10 centavos from its P50.10 close on Wednesday.
The local unit started the trading day stronger at P49.93 per dollar. It hit a low of P50.03 and strengthened to as high as P49.92 against the greenback.
Dollars traded on Thursday went down to $602.2 million from $855.72 million recorded on Wednesday.
Yesterday’s close was the strongest in more than two years or since the peso closed P49.87 versus the dollar on Jan. 5, 2018.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said via text that the peso appreciated following the “hefty gains” seen in global stock markets as more economies started to reopen, allowing more businesses to bounce back.
Mr. Ricafort said the peso also ended stronger on the weakening US dollar.
He added that the market participants likely also priced in bets on inflation data to be reported today, June 5.
The Bangko Sentral ng Pilipinas (BSP) last week forecasted that headline inflation in May likely settled between 1.9% and 2.7%, giving a point projection of 2.3%.
For the trader, the local unit could weaken on Friday “ahead of likely downbeat US labor reports.”
Mr. Ricafort sees the peso closing between P49.85 and P50.10 per dollar today while the trader gave a forecast range of P49.85 to P50.15. — B.M. Laforga
Anti-malaria drug trials resume
THE Philippines will resume its use of the anti-malaria drug hydroxychloroquine in clinical trials for treating the novel coronavirus, taking its cue from the World Health Organization (WHO) which cleared the drug after a safety review.
The WHO clearance came out after a careful study by medical experts, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Thursday. “We will listen and follow, and we will continue using hydroxychloroquine.”
WHO suspended the use of hydroxychloroquine and chloroquine last week as treatment for the coronavirus disease 2019 after a study published by the Lancet medical journal found that a number of patients who used the drug had died.
The journal cited potentially serious side effects from the drug including heart arrhythmia.
But the WHO said it found no reason to modify the trial protocol after its review.
The Philippines joined the so-called solidarity trial in April along with other countries to test the effectiveness of four possible treatments for the coronavirus.
Experts earlier found the arthritis medicine that is also used to prevent malaria to be a promising treatment for the coronavirus, which has sickened 6.6 million and killed about 388,000 people worldwide.
US President Donald J. Trump last month said he was taking hydroxychloroquine as a preventive medicine against the coronavirus.
Hydroxychloroquine is one of the four drug and drug combinations being used for the WHO’s solidarity trial that seeks to find a vaccine for the novel coronavirus. The others are remdesivir, lopinavir and ritonavir combined, and two drugs plus interferon beta.
In the Philippines, COVID-19 infections rose by 634 to 20,382, the Department of Health (DoH) said yesterday.
The death toll rose to 984 after 10 more patients died, while 95 more patients have gotten well, bringing the total recoveries to 4,248, it said in a bulletin.
Of the new cases, 313 were fresh or test results validated in the past te days, while 321 were validated late, DoH said.
The agency said there were now 52 laboratories that can test COVID-19 samples.
The agency started classifying new infections after a spike as local laboratories boosted their testing capacities.
The spike also coincided with a relaxed lockdown in many parts of the country including Manila, the capital and nearby cities.
Ms. Vergeire said at an online news briefing later in the day the decreasing trend in the number of cases per day as well as increased doubling time of cases and deaths showed improved case management.
Meanwhile, the Philippines now has a daily testing capacity of 42,000, as the government continues to expand targeted testing in highly populated areas.
The government would focus on boosting capacity in Metro Manila, Cebu and other densely populated regions, Vince Dizon, deputy chief enforcer of the National Task Force on COVID-19, said at a separate news briefing on Thursday.
Also yesterday, the Department of Justice said 222 inmates from the facilities of the Bureau of Corrections (BuCor) had infected with the coronavirus. Ten of them have died and 31 recovered.
In a statement, the agency said 48 BuCor staff had caught the virus, four of whom recovered.
The national penitentiary in Muntinlupa City posted the highest confirmed cases with 140 inmates and 30 staff members, followed by the Correctional Institute for Women in Mandaluyong City with 82 inmates and seven employees who tested positive.
Eleven staff members from its national headquarters had also tested positive, it said — Vann Marlo M. Villegas and Gillian M. Cortez
House body OKs bill extending Duterte powers vs coronavirus
CONGRESSMEN acting as members of the Committee of the Whole approved on Wednesday evening a bill that will extend the special powers given to President Rodrigo R. Duterte to fight the coronavirus by three more months.
The committee barred any interpellations, saying these may be done during plenary debates instead.
The measure, which will extend the law expiring on June 24 until the end of September, combined three House bills and one resolution. House Majority Leader Ferdinand Martin G. Romualdez presided over the body, while Bulacan Rep. Jose Antonio R. Sy-Alvarado sponsored the measure. A Committee of the Whole functions is composed of all the members of the House acting upon a measure.
The law enacted in March empowered the President to realign the national budget for anti-COVID-19 measures. Under the law, low-income households were supposed to get as much as P8,000 in monthly cash aid for two months.
The bill proposes a P162-billion standby fund for recovery and response. This includes P12 billion for the purchase of test kits, P18 billion for cash-for-work programs, P5 billion for people in crisis, P21 billion displaced workers and P50 billion for business loans.
It also allots P21 billion in direct cash subsidy and interest-free loans to agri-fishery enterprises, P21 billion for affected companies in the transportation industry, P10 billion for tourism and P4 billion for “smart campuses” that invest in information and communications technology.
The House still has to approve the bill on second and third readings. The Senate, which approved a counterpart bill on second reading on June 3, ended its Thursday session failed to pass it on third reading in the absence of a notice from the presidential palace certifying the measure as urgent.
Congress will adjourn sine die (with no set date for resumption) on Friday. — Genshen L. Espedido and Charmaine A. Tadalan
#COVID-19 Regional Updates (06/04/20)
Number coding for vehicles in Metro Manila back on June 8 with exemptions; Duterte orders opening of more bus routes
THE number coding scheme intended to reduce vehicles on Metro Manila roads will again be in effect starting June 8, but with exemptions in consideration of the coronavirus crisis.
The Metropolitan Manila Development Authority (MMDA), in a statement on Thursday, listed the following exemptions:
• All private vehicles with at least two passengers, including the driver, who must observe minimum the health safety protocols of physical distancing wearing of face mask;
• owner-driven or self-driven private vehicles transporting doctors, nurses, and other medical personnel; and
• vehicles transporting Authorized Persons Outside Residence (APOR) as identified in the latest guidelines of national task force.
Ride-hailing service cars must have a signage indicating that these are registered as transport network vehicle service (TNVS).
Meanwhile, President Rodrigo R. Duterte has ordered the opening of more bus routes to serve commuters, according to his spokesperson.
In a briefing on Tuesday, Palace Spokesperson Harry L. Roque said Mr. Duterte felt the anguish of workers over the longstanding problem of mobility.
Mr. Roque said the Transport department is opening additional routes Friday, and more on Monday.
The additional routes starting Friday are: between Monumento and Balagtas; Bulacan-EDSA and Montalban; and the Ninoy Aquino International Airport Loop.
By Monday, the following will also operate: Monumento-Valenzuela Gateway Complex; Gilmore-Taytay; and Monumento-San Jose Del Monte.
Officials were scheduled to meet with bus operators Thursday afternoon to discuss the deployment of more units. — Gillian M. Cortez
Metro Manila pollution on steady rise as lockdown eases
AIR pollution levels in the capital have steadily increased since the beginning of May when government started to slowly ease quarantine restrictions, according to a report by Greenpeace and the Center for Research on Energy and Clean Air (CREA).
“Analysis of these two pollutants from March 15 to May 15, 2020 shows an initial and dramatic drop in air pollutant concentrations at the beginning of the lockdown, and the gradual rebound during the modified enhanced community quarantine,” says the report titled The Special Report on Managing Air Quality Beyond COVID-19.
Increasing air pollution levels were attributed to more vehicles traversing Metro Manila’s highways and industries resuming operations.
Greenpeace and CREA called for the immediate adoption of measures that protect the air quality in Metro Manila.
“Air pollution doesn’t have to be an inescapable reality. The enhanced community quarantine gave Filipino citizens a glimpse of what cities can be like with healthy, clean air. It also showed us that air pollution can be solved without sacrificing people’s access to mobility,” Greenpeace campaigner Rhea Jane Pescador-Mallari said.
“Moving forward, if the government is willing to use the opportunities and lessons learned from the pandemic and amplify it through policies and infrastructure, active mobility and micro mobility, as well as invest in efficient and safe mass public transport, then a return to the massive pollution levels before COVID-19 can be avoided.” she said.
Meanwhile, the House of Representatives committee on climate change has consolidated and approved two House resolutions declaring a climate and environmental emergency.
The resolutions call for immediate action from government agencies to mitigate the adverse effects of climate change.
House Resolutions 724 and 761 are authored by Antique Rep. Lorna Regina B. Legarda and Bohol Rep. Edgardo M. Chatto, respectively.
“Despite the enactment of landmark policies on the environment, climate change and disaster risk reduction and management, there is still continued decline of the state of the environment, and its ecological system is one of the greatest threats to the people’s well-being,” Ms. Legarda said in her resolution.
Mr. Chatto, in his resolution, said, “In declaring a climate emergency, a government admits that global warming exists and that the measures taken up to this point are not enough to limit the changes brought by it. The decision stresses the need for the government and administration to devise measures that try and stop human-caused global warming.” — Revin Mikhael D. Ochave and Genshen L. Espedido
Limited land transport holding back Davao airport reopening; City gov’t proposes no-test, no-fly policy
DAVAO CITY — Aviation authorities managing the international airport here want public land transport normalized first before reopening for commercial flights.
“DIA (Davao International Airport) is a transit point, meaning not all passengers who fly in and out are residents of Davao City but from neighboring regions. Given this, there is a possibility that non-Davao City residents will be stranded here,” Airport Manager Rex A. Obcena said in a virtual briefing.
He also noted that even provincial buses within the Davao Region are still on limited operations.
Most of Mindanao, excluding Davao and Zamboanga cities which have the highest coronavirus cases, is already on relaxed quarantine rules but most local governments are still implementing border restrictions.
Mr. Obcena said Davao Mayor Sara Duterte-Carpio has sent a letter to Transport Secretary Arturo P. Tugade, through the Civil Aviation Authority of the Philippines (CAAP)-Davao office, requesting for time to set up an airport pick-up system to avoid people getting stuck in the city.
The city government, in coordination with the Land Transport Franchising and Regulatory Board, is aiming to have the transport service organized by the end of this week.
Mr. Obcena said CAAP-Davao is aiming to gradually reopen the airport by June 8 for domestic commercial flights.
DIA has only been catering to sweeper and other special flights for stranded and returning travelers.
“We are ready and we are in close coordination with the city government of Davao to ensure that these measures implemented by the city are being supported by the airport operations vis-a-vis health departments,” he said.
Meanwhile, Ms. Carpio has also proposed to the transport department that all passengers flying out of the Davao airport be required to undergo PCR testing for coronavirus disease 2019 (COVID-19).
Those who are positive for the virus will not be allowed to fly.
The mayor, speaking over the city-run radio Monday, said contact-tracing becomes more broad and difficult if a person who later turns out positive has already taken a flight.
Under the proposal, people with flight bookings must undergo the screening a couple of days before the flight.
Davao City currently has two licensed COVID testing laboratories: the government-owned Southern Philippines Medical Center and the private One World Diagnostic Center, Inc. Another two — the Davao Doctors Hospital and the DOH Tuberculosis Center — are on the third of five stages of accreditation. Preparations are underway for the construction of 5th facility, to be funded by the city government. — Maya M. Padillo
Bohol plans mobile test labs for airport, various entry points
THE Bohol local government is planning to have mobile testing laboratories for the coronavirus disease 2019 (COVID-19), which will be used at the province’s various gateways when it reopens to tourists.
“We are trying to work on mobile PCR (polymerase chain reaction) laboratories, because right now, the Department of Tourism is working on travel corridors. For, me it is irrelevant when it would happen. What is important to me is we have the testing equipment,” Governor Arthur C. Yap said during a June 2 meeting with the provincial COVID-19 task force.
“If we want to be part of the new normal, we have the following gateways to take care of: Bohol Panglao International Airport, Tagbilaran, Tubigon, Talibon (that can take care of Buenavista, Getafe, Talibon areas). We have to put one in Jagna. Those are the main gateways,” he said.
The national inter-agency task force is eyeing Bohol as a model province for how the tourism sector can be revived with health safety protocols amid the continued COVID-19 risks.
“Without the testing equipment, we cannot be a model of anything. We also have to make sure that our equipment is properly interfaced with our contact tracing capacity,” Mr. Yap said.
A PCR laboratory is in the works at the Gov. Celestino Gallares Memorial Hospital.
Mactan Cebu airport on-site lab under accreditation process
In Cebu, a PCR laboratory at the Mactan Cebu International Airport is also undergoing the government’s accreditation process. It will initially cater to returning overseas workers and locally-stranded people who are returning to their hometowns.
“Eventually the process will be extended to those outbound international passengers requiring a COVID-19 test certificate for entry to other countries,” airport operator GMR MEGAWIDE Cebu Airport Corp. (GMCAC) said in a statement.
The laboratory, to be operated by Prime Care, will be able to process up to 2,000 samples daily once fully operational.
“We believe this measure will give an important capacity boost to DOH (Department of Health) and at the same time help kick-start our local economy through the jobs that will be necessary to provide support for all these arriving OFW’s and Seafarers in sectors such as hotels, transportation, and catering in the immediate term, but most importantly pave the way for international arrivals to resume as the confidence to travel to Cebu from the tourists and foreigners starts to build,” GMCAC Chief Executive Advisor Andrew Acquaah-Harrison said in a statement.
Agri group SINAG takes Floridablanca village officials to court over lockdown rules
AGRICULTURAL group Samahang Industriya ng Agrikultura (SINAG) has taken to court officials of Barangay Gutad, in the town of Floridablanca, Pampanga for preventing the delivery of animal feeds during the lockdown.
SINAG said a temporary restraining order (TRO) for 72 hours has been granted by the Regional Trial Court in Guagua, Pampanga, allowing the delivery of feeds to a hog farm.
“There was already a TRO, but the barangay officials only granted the entry of feeds to the farm after the police escorts arrived,” SINAG chairman Rosendo O. So said in a statement on Thursday.
“This is a clear violation of Republic Act No. 11469 or the Animal Welfare Act. In the midst of the coronavirus disease 2019 (COVID-19) pandemic, the barangay officials are focused on this instead,” he said.
SINAG plans to call for a congressional inquiry on the issue vis-a-vis the national government’s directive to strengthen food production in response to the COVID-19 pandemic.
“What these local government units are doing is to destroy, and not support, local food production. Especially hog production at a time when the Department of Agriculture has announced a decrease in our hog supply for the next quarters,” Mr. So said. — Revin Mikhael D. Ochave
Nationwide round-up
Duterte may still revise Congress-approved anti-terrorism bill
PRESIDENT Rodrigo R. Duterte will first review the Congress-approved bill that will expand the coverage of the current anti-terrorism law, his spokesperson said Thursday amid strong opposition from various sectors to some of the proposal’s provisions. Palace Spokesperson Harry L. Roque said despite the President’s certification of the bill as urgent, it does not mean it will be immediately signed. “That is still subject to final review by the President to ensure it is compliant with our Constitution,” Mr. Roque said in a briefing. The bill was passed by the Senate in February and certified as urgent on June 1. The House of Representatives adopted the Senate version and gave final approval to the bill on June 3. It now requires just the President’s signature to become law. Among the controversial provisions of the bill are the expanded definition of terrorism, which may include political opposition, and giving authority to the military to intercept private communications of suspects under surveillance and detain them for 14 days without warrant. House Deputy Speaker Mujiv S. Hataman, one of those who opposed the bill that will amend the Human Security Act of 2007, said the measure does not have safeguards for wrongful arrests. “This law is not meant to combat terrorism. It is meant to give the state the power to tag whomever they please as a terrorist,” Mr. Hataman, who represents Basilan and a former governor of the restive Autonomous Region in Muslim Mindanao, said in his speech Wednesday at the House. — Gillian M. Cortez
Labor group slams gov’t for stranded OFWs
LABOR group Migrante International slammed the administration on Thursday after another group of over a hundred repatriated overseas Filipino workers (OFWs) were left stranded outside the airport in Manila as they waited for flights to their hometowns. “This is in stark contrast with how seamlessly (President Rodrigo R.) Duterte and his IATF (Inter-Agency Task Force) officials have flown to Davao City a few days ago,” Migrante International said in a statement. “Malacañang better stop fooling the public that OFWs are experiencing the same level of comfort and efficiency.” Thousands of overseas workers, both land-based and seafarers, have been displaced and forced to return to the Philippines due to the global crisis arising from the coronavirus pandemic. The Department of Foreign Affairs has so far assisted the repatriation of more than 33,000 OFWs. Latest government data show there are about 2.2 million OFWs. — Charmaine A. Tadalan
Religious gatherings expanded to 50% of venue
RELIGIOUS gatherings, initially limited to a maximum of 10 people, can now have a bigger crowd based on the venue’s capacity. Palace Spokesperson Harry L. Roque announced Thursday that under the revised guidelines for areas under the modified general community quarantine (MGCQ) category, religious groups can now hold activities with up to 50% of the capacity of the venue. The same rule applies to work-related gatherings, entertainment activities, sporting events, concerts, and movie screenings. However, the MGCQ rule allowing everyone to leave their homes has been revoked. The revised guideline again requires home quarantine to those below 21 years old, senior citizens or those at least 60 years old, and those who have underlying illnesses. — Gillian M. Cortez
More Balik Probinsya beneficiaries off to hometowns next week
MORE beneficiaries of the Balik Probinsya program are returning to their hometowns next week, National Housing Authority General Manager Marcelino P. Escalada, Jr. announced. Mr. Escalada said the next batch of returnees are from the provinces of Leyte and Camarines Sur. “We are confirming that our next batch of rollout will be on June 11 for Leyte… We will schedule it (Camarines Sur) on June 12, because we will also be experiencing congestion in our dispatch area. So there will be a minimum of five or six buses every day from June 11 and June 12,” he said. The first batch consisted of about 100 beneficiaries. Mr. Escalada also said they are preparing another schedule for returnees to Zamboanga Del Norte and Lanao Del Norte, both in Mindanao. He is currently coordinating with Secretary Emmanuel “Manny” F. Piñol, chair of the Mindanao Development Authority, which has already identified Balik Probinsya development sites in coordination with local governments. The Balik Probinsya program aims to decongest Metro Manila and other major urban areas by attracting local migrants and businesses to the countryside. — Gillian M. Cortez
House approves P1.3-trillion stimulus bill on 3rd reading
THE House of Representatives on Thursday approved on third and final reading a P1.3-trillion stimulus package called the ARISE (Accelerated Recovery and Investments Stimulus for the Economy) bill, the new name for what had been known as the proposed Philippine Economic Stimulus Act (PESA).
The bill went through with 216 affirmative votes, seven negatives, and zero abstentions.
“After not earning revenues for two months, businesses’ funds are running dry. The next few months will be crucial — on top of managing financial obligations, businesses must now figure out how to innovate to thrive in the new normal. ARISE provides ways to equip businesses through interest-free loans and grants for education, training, and technical assistance,” Marikina Rep. and Co-chair of the Defeat COVID-19 committee’s economic stimulus cluster Stella Luz A. Quimbo said in a statement Wednesday.
A total of P708 billion will be allocated in 2020 for mass testing (P10 billion); wage subsidies (P110 billion), a cash-for-work program (P30 billion); assistance to students (P15 billion); loans to micro, small and medium enterprises or MSMEs (P50 billion); zero-interest loans to be extended by the Land Bank of the Philippines and Development Bank of the Philippines (P50 billion) and loan guarantees (P40 billion).
This year’s allocation also includes assistance to various sectors such as MSMEs (P10 billion); tourism (P58 billion); industry and services (P44 billion); transportation (P70 billion); agri-fisheries (P66 billion); and funding for the National Emergency Investment Vehicle (P25 billion) to “minimize permanent damage to the economy.”
For 2021, P80 billion will be allocated for further mass testing (P10 billion), loans for MSMEs (P25 billion), loan guarantees (P20 billion) and additional funding for the National Emergency Investment Vehicle (P25 billion).
Meanwhile, a P650-billion budget for the “Build, Build, Build” program will be spread over three years starting 2020 covering infrastructure projects supporting universal health care, education, and food security. About P130 billion is allocated for 2020.
The bill also sets Overseas Filipino Workers’ Philippine Health Insurance Corp. (Philhealth) premiums at P300 in 2020, P375 in 2021, and P450 in 2022.
It also suspends principal loan payments for one year to encourage business and consumer liquidity. Regulatory agencies are also directed to suspend, reduce or waive fees & charges for licensing, registration, permits and inspection, and may suspend filing and payment deadlines for one year.
The measure also directs the Department of Trade and Industry (DTI) to establish a Credit Mediation and Restructuring Service for re-availment, renewals and new loans, through Negosyo Centers or local government units.
The bill also condones loans of agrarian reform beneficiaries worth about P58.62 billion.
The bill encourages infrastructure agencies to explore private-public partnership (PPP) arrangements including joint ventures to speed up implementation, use private-sector capital to reduce current deficits, and create alternative sources of revenue for the government.
It also directs the National Economic and Development Authority (NEDA) to submit to Congress a long-term plan for building economic resilience within six months after the lifting of the various forms of quarantine. It also creates an Economic Stimulus Board (ESB) to identify the components of the fiscal stimulus package, and monitor the delivery of each intervention.
A joint Congressional oversight committee will be created to monitor the implementation of the stimulus package. The committee will consist of the co-chairpersons of the House economic stimulus cluster, and chairpersons of the Senate committees of Economic Affairs, Ways and Means and Finance.
The President is authorized to reallocate and realign the General Appropriations Acts of 2019 and 2020, and allocate cash, funds and investments held by any government-owned or -controlled corporations or any national government agency to provide funding support.
The Secretary of Finance is also authorized to direct the National Treasurer to borrow in the form of bonds and loans to fund the provisions of the bill.
“In total, the package is expected to protect and assist up to 15.7 million workers, create 3 million short-term jobs, and 1.5 million infrastructure jobs over three years, and help up to 5.57 million micro, small, and medium enterprises, both formal and non-formal. The GDP impact, based on our staff estimates, is immense: if implementation is rapid within the year, we may see our GDP grow slightly by 0.2% from the current expected decline of -2.8% in 2020,” Albay Rep. and Co-chair of the Defeat COVID-19 committee’s economic stimulus cluster Jose Maria Clemente S. Salceda said in a statement Monday.
Gabriela Party-List Rep. Arlene D. Brosas, who voted to reject the bill, said that the stimulus package is a “mere pain reliever” to the economic problems brought about by the pandemic.
“Mr. Speaker, artipisyal at panandalian lamang ang maaring idulot na ginhawa ng stimulus program na ito dahil hindi naman nito nilulutas ang mga batayang suliranin kaugnay ng food insecurity, pag-asa sa agricultural imports, pagsandig sa remittances, pagsasapribado ng serbisyong kalusugan, kawalan ng lokal na batayang industriya at regresibong pagbubuwis. Mahinang pain reliever lang ito kung tutuusin, (The benefits of this bill are artificial and temporary as it does not address problems like food insecurity, reliance on agricultural imports, dependence on remittances, the privatization of health care, the absence of domestic industry, and regressive taxation)“ she told the plenary Thursday.
Meanwhile, business organizations on Thursday expressed their support for the immediate passage of ARISE, saying that the measure will provide the “much-needed support and confidence” to COVID-19 frontliners, workers, and businesses.
“Unemployment funds and wage subsidies will help workers provide for their families, keep their children in school, and fuel the economy. Loans, grants, and guarantees will help businesses pay suppliers and banks, strengthening all of them for the challenging months and years ahead,” according to the joint statement of 44 groups.
They added that a “swift” and “substantial” intervention is needed, following the “lessons” that many countries have encountered during previous recessions.
“A law along the lines of ARISE would act on the lessons that many countries are heeding from previous recessions: that swift, substantial intervention is needed. The Administration’s fiscal management has provided the financial strength and fiscal space to do this. We can and should increase stimulus spending to approximate or exceed those of many of our neighbors,” the groups said. — Genshen L. Espedido
PHL, World Bank sign $500-M loan agreement
THE government on Wednesday signed a $500-million loan agreement with the World Bank, the proceeds of which will fund the coronavirus containment efforts and aid small-business workers and the vulnerable population.
In a statement Thursday, the Finance department said the Emergency COVID-19 Response Development Policy Loan (ECRDPL) is scheduled for disbursement by the third week of June.
The bank’s board approved the loan late last month.
“This is the third loan accord that we have signed with the World Bank that is designed to assist us in swiftly responding to the challenges brought about by the COVID-19 emergency. The World Bank has always been our reliable partner in strengthening our country’s economic resilience,” Finance Secretary Carlos G. Dominguez III was quoted as saying.
Mr. Dominguez and Achim Fock, World Bank acting country director for Brunei, Malaysia, Philippines and Thailand, signed the agreement on Wednesday.
The loan matures in 29 years, inclusive of a grace period of 10 and a half years.
According to the Department of Finance, the loan will fund the government’s P200-billion emergency subsidy program for vulnerable members of the population as well as the P51-billion wage subsidy program directed at employees of small businesses.
Mr. Dominguez said ECRDPL replaces an earlier proposal for additional financing of a current project which strengthens the government’s financial resilience to natural disasters and climate change.
“The change is in view of World Bank’s advice to specifically come up with a new development policy loan on the country’s COVID-19 response instead of a supplemental financing package for the Promoting Competitiveness and Enhancing Resilience to Natural Disasters project,” he said.
The latest loan agreement follows the $100-million loan agreement for the COVID-19 Emergency Response Project which the government also entered into with the World Bank in late April.
The two parties also signed a $500-million Third Disaster Risk Management Development Policy Loan (DRM DPL3) agreement on April 9 which can also be used to fund efforts to contain the coronavirus outbreak.
So far, the government has obtained $1.7 billion of loans from the Asian Development Bank to finance its COVID-19 (coronavirus disease 2019) response, and a $750-million co-financing facility from the Beijing-based Asian Infrastructure Investment Bank.
For 2020, economic managers expect the budget deficit to increase to the equivalent of 8.1-9% of gross domestic product (GDP) as government revenue is expected to decline as the economy worsens while spending increases due to the pandemic.
Outstanding debt is expected to hit P9.589 trillion this year, equivalent to 49.8% of GDP. — Beatrice M. Laforga
20-year extension sought for power subsidy for poor
A MEASURE extending for 20 years the lifeline rate subsidy granted to low-income households has been filed in the Senate.
The Electric Power Industry Reform Act of 2001, or Republic Act No. 9136, provided for a 10-year lifeline rate benefitting marginalized households or those consuming up to 100 kilowatt-hours monthly.
This was later extended for another 10 years, through RA 10150 in 2011, which will be expiring next year.
Under Senate Bill No. 1583, Senator Sherwin T. Gatchalian proposed to extend the lifeline rate subsidy for 20 years or until 2041.
“The spirit of this measure is to really cushion the blow of power-rate increases to marginalized households who cannot afford to pay the full cost of their electricity bill,” Mr. Gatchalian said in the explanatory note of the bill.
“We made strides in breaking that barrier to access electricity through the lifeline-rate subsidies and there’s no turning back now.”
At present, consumers with an average of 21-50 kWh monthly consumption are entitled to a 50% discount.
Households with an average of 51-70 kWh consumption enjoy a 35% discount, while those consuming 71-100 kWh get 20%.
“The lifeline rate has benefitted numerous low-income households through the years,” Mr. Gatchalian, who chairs the Energy committee, also said.
In 2019, 2.4 million households availed the lifeline rate in 2019 from Meralco, resulting in a total of P3.8 billion saving.
Mr. Gatchalian said this also means each low-income household generated some P1,576 annual savings. — Charmaine A. Tadalan
More hotels allowed to reopen but guests limited
THE Inter-Agency Task Force on the Management of Emerging Infectious Diseases (IATF-EID) expanded its definition of hotels allowed to resume operations but continued to limit their clientele to precious bookings, stranded persons, overseas workers observing quarantine, and health care workers.
In a briefing on Thursday, the President’s Spokesman Herminio L. Roque said the IATF-EID’s Resolution No. 43 clarified a previous order restricting the operations of “accommodation establishments.”
“Inaprubahan ang rekomendasyon ng IATF na baguhin ang depinisyon ng hotel at payagan na rin mag-operate ang mga sumusunod (The IATF approved the recommendation to change the definition of hotels and also allowed them to operate),” he said.
The new definition of accommodation establishments includes hotels, resorts, apartment hotels, tourist inns, motels, pension houses, private homes, ecolodges, serviced apartments, condotels, and bed and breakfast facilities.
The earlier Omnibus Guidelines still apply, restricting their ability to take in guests. The exceptions include guests who were booked as of March 17 in Luzon and bookings as of May 1 for others areas; guests with long-term bookings; distressed and stranded overseas and foreign workers; repatriated overseas workers; those required to undergo mandatory quarantine; and health care workers and other workers from exempted sectors.
IATF-EID Resolution No. 43 also indicated that hotels will only be allowed to operate if they have a Certificate of Authority to operate from the Department of Tourism.
Such establishments will still be restricted in their staffing levels, maintaining personnel sufficient only to service basic accommodations. Ancillary services remain prohibited while food service will be limited to take-out and delivery. — Gillian M. Cortez