Huawei phone prices rise in China on fears of chip shortage

September 17, 2020 | 2:18 pm

SHENZHEN — Chinese consumers are rushing to buy smartphones from Huawei Technologies Co. Ltd. featuring its high-end Kirin chips, fearing curbs on the firm’s access to US technology will soon cut off production of its premium handsets.

Phone vendors in Huaqiangbei, the world’s largest electronics market located in the southern city of Shenzhen, said prices for new and used Huawei phones had risen steadily over the past month, by around 400 to 500 yuan on average.

The Porsche design model of Huawei’s flagship Mate 30 was selling for 14,000 yuan ($2,067), from 10,000 yuan in January, one vendor said. The phone was available at a similar price on online marketplace Taobao.

Consumers are increasingly worried over the supply of components for newer handsets, said one vendor.

“The Huawei phones are getting expensive but that’s supply and demand,” said the vendor, who gave her name as Xiao. “If people like the brand, they’ll pay more—and who knows how good the chips they’ll have in the future will be?”

The US government last year moved to prevent most US companies from conducting business with Huawei, saying the world’s biggest maker of mobile telecommunications equipment and smartphones was ultimately answerable to the Chinese government. Huawei has repeatedly denied being a national security risk.

Last month, the United States further tightened restrictions to choke its access to commercially available chips, prompting Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) to stop shipping wafers to Huawei.

Richard Yu, chief executive of Huawei’s consumer business, subsequently said the company will stop making its Kirin chips on Sept. 15 because of US measures to cut off its chipmaking unit HiSilicon from vital technology.

HiSilicon relies on software from US firms such as Cadence Design Systems Inc. or Synopsys Inc. to design its chips, and outsources production to TSMC, which uses US-made equipment.

Wholesale traders at the market said they had been busy for the last month meeting extra demand for online sales, with prices of higher-end phones rising every few hours. They were uncertain how much supply remained at distributors.

Huawei does not disclose inventory information. A spokesman told Reuters the firm continues to operate according to demand.

It likely has chip inventory to last through the first half of next year, said analyst Will Wong at consultancy IDC.

“One option for them to have Kirin chips last longer is to ship less for the rest of the year,” Mr. Wong said.

Last week, Huawei said it planned to introduce its Harmony operating system on smartphones next year, in part to overcome US limits on its access to Alphabet Inc.’s Android.

Yet analyst Mo Jia at Canalys said launching Harmony would only be a “symbolic innovation” if Huawei no longer had the chip supplies to make high-end phones. — Reuters

Pandemic “hero” Filipino nurses struggle to leave home

September 17, 2020 | 1:42 pm

From across the Philippines, they gathered to pray by Zoom.

They were praying to be allowed to leave: To be allowed to take up nursing jobs in countries where the coronavirus is killing thousands in hospitals and care homes. In recent months, these care workers have taken to calling themselves “priso-nurses.”

With infections also surging in the Philippines, the government in April banned healthcare workers from leaving the country. They were needed, it said, to fight the pandemic at home.

But many of the nurses on the two-hour Zoom call on Aug. 20, organized by a union and attended by nearly 200 health workers both in the Philippines and abroad, were unwilling to work at home. They said they felt underpaid, unappreciated, and unprotected.

Nurses have been leaving the Philippines for decades, encouraged by the government to join other workers who send back billions of dollars each year.

With COVID-19 sweeping the globalized economy, the Philippine ban squeezed a supply line that has sent hundreds of thousands of staff to hospitals in the United States, the Gulf, and Britain, where some commentators have called the nurses “unsung heroes” of the pandemic.

The Philippines’ healthcare system is already short-handed. In Germany there are 430 doctors and nurses per 10,000 people, in the United States 337, and in Britain 254, International Labour Organization data shows.

The Philippines—where the coronavirus death rate is one of the highest in Southeast Asia—has 65.

The April ban has stopped more than 1,000 nurses from leaving the country. Of those, only 25 have applied to work in local hospitals, Health Secretary Francisco Duque III told journalists late last month. The Department of Health did not reply to a request for an updated figure.

The government has since partially eased the restrictions, but sometimes also tightens them, so nurses are still clamoring to get out.

On the Zoom call in August, someone played a recording of the Philippine national anthem. A Catholic priest prayed and a man with a soft voice crooned a song about passing off your burdens to God.

One nurse, 34-year-old April Glory, had already spent years away from her young son and had been about to leave again when the ban kicked in. Even before the pandemic, she told Reuters separately, she was better off in a war zone in the Middle East than at home.

Soon after she arrived in Yemen in 2011, a bullet pierced the wall of her private hospital, she said. Staff moved patients to safety.

Still, she said, “we were insured, we had free lodging so my salary was intact and I could send more to my family.” Abroad, there was no need to do any work outside her job description: “You are not expected to sweep the floor.”

SIMPLE MATH

It’s mainly money that drives the Filipinos abroad.

A nurse in the United States can earn as much as $5,000 per month; in the Middle East it’s $2,000 per month, tax free. In Germany, nurses can earn up to $2,800 per month, and get language training, labour organizers, recruiters and the Philippine government’s overseas employment agency say.

Even with its emergency hiring efforts, the Philippine Department of Health is only offering nurses a starting salary of $650 per month. It says it will pay another $10 per day as COVID-19 hazard allowance.

Private nurses sometimes make just $100 per month.

“I felt that I was not earning enough,” said Ms. Glory, explaining why she left. Her son, now 11, was a year and a half old at the time. “My mother told me: Better to leave now because my child will not really remember.”

Abroad, Ms. Glory’s shifts were a standard eight hours and she only looked after one or two patients at a time in intensive care. Working in Yemen and then Saudi Arabia, she said she bought a house and a car.

Nurses have recently left faster than they are trained. Last year, 12,083 new nurses graduated in the Philippines. That same year, 16,711 signed contracts to go abroad, data from the Commission on Higher Education and the Philippine Overseas Employment Administration shows. Those renewing foreign contracts are counted separately. So far this year there have been 46,000 such renewals.

The Philippine government wasn’t able to provide figures for the total number of nurses overseas, or say which countries they are working in.

Filipinos are the biggest group of foreign nurses in the United States. In 2018, there were 348,000, an analysis of US government data by Washington DC-based think tank Migration Policy Institute showed. Even with the pandemic, another 3,260 Filipinos have passed the US nurse licensing exam this year.

A report to Britain’s House of Commons Library in May said more than 15,000 of the National Health Service (NHS) nursing jobs held by foreigners went to Filipinos—nearly a third of the total and more than any other nationality. The NHS employs a further 6,600 Filipinos in other healthcare jobs.

Labor brokers say that, besides the UK and US, Filipino nurses are sought-after in Germany, Saudi Arabia, the United Arab Emirates, and Singapore.

36-HOUR SHIFTS

Nine months into the pandemic in the Philippines, reported coronavirus infections in the Philippines have soared to around 270,000. Not all hospitals allow family members to visit, so nurses must feed and clean patients as well as giving health care, said Filipino Nurses United President Maristela Abenojar.

Some nurses are working up to 36-hour shifts because relief staff are calling in sick or not reporting for duty, she said, and sometimes nurses are issued just one set of protective gear per shift. Nurses can’t get tested regularly and if they get sick, there aren’t always hospital beds reserved for them, she said.

At least 56 healthcare workers have died in the Philippines, Department of Health data shows.

“It seems they don’t really value our contributions,” said Jordan Jugo, who works at a private hospital in the Philippines. “It hurts.” He had a contract to work in Britain, but the ban prevented him from leaving.

He said he could sometimes only eat two meals a day and could no longer support his siblings.

The Philippine Department of Health said its healthcare workers work long hours and “it is natural for them to feel tired and overwhelmed with their immense responsibilities.” It said it had arranged for “substitution teams” in some areas.

It said hospitals should provide sufficient protective gear and that healthcare workers should not go on duty without it. Healthcare workers should be prioritized for regular COVID-19 testing, it said, and the Department would ensure there are enough beds for everyone.

Health Secretary Duque has said previously that the government was appealing to the nurses’ “sense of nation, sense of people and sense of service.”

‘I DON’T WANT TO BE A HERO’

Foreign countries have gone all-out to show Filipino nurses they are valued.

Saudi Arabia sent chartered planes to help them return to work, and only partly filled them so the nurses could maintain social distance.

British ambassador to the Philippines Daniel Pruce went on an 11-minute segment on Philippine television to praise the “incredible commitment and dedication” of Filipino healthcare workers in Britain.

When nurse Aileen Amoncio, 36, got trapped by a lockdown and then the travel ban during a vacation to the Philippines in March, Britain’s NHS granted her a special “COVID leave” and kept paying her, she said. The NHS said staff stuck abroad due to COVID-19 could qualify for such leave.

Ms. Amoncio got out of the Philippines in June, after the government eased the ban slightly.

Working at an NHS neurological rehabilitation hospital in the UK, she said she sympathized with the nurses back home, where she once handled as many as 80 patients on a surgical ward at a small hospital. Now she looks after no more than 10 at a time.

Not only are the pay and conditions better in Britain, she said, but she also hopes her daughter will one day be able to join her and get free treatment on the NHS. The hearing implant she needs would cost $20,000 in the Philippines.

“I’ve served my country already,” said Ms. Amoncio. “I don’t want to be a hero again. I am looking out for the future of my children.”

On the Zoom call, Labor Secretary Silvestre Bello III dialed in with an update: Some of those who had existing contracts could leave, he announced. Cheers went up.

Nurse Glory was one of them. She wept.

“I hope the government will not take it against us that we are leaving,” she said. “We are looking forward to helping the government with this fight in other ways. When we are able, when we’ve risen out of poverty, we will.”

Hours later, on the pavement outside the airport, she quickly hugged her son, then raced to board her flight in case the government changed its mind. — Reuters

How TDCX leads the way with a heart

September 17, 2020 | 10:38 am

At the height of the COVID-19 pandemic — which caused total lockdowns, limited transportation, banned mass gatherings, and upended all kinds of businesses — TDCX Workspace Officer Reem Leonardo found herself at a crossroads: go to work and take care of her team, or risk getting sick.

“It was a mess. There was chaos! Nobody was prepared for it,” the working mom lamented, sharing further that she was contemplating even going to work or not. “I tried a few times to find a ride, but it was really difficult finding transportation to work.”

The clincher was her desire to be on-site for her team, who depended on her to accomplish work necessary to make everyone else’s work-from-home transitions easier. Unfortunately, the lockdown protocols just didn’t seem to be in her favor.

But Reem witnessed how TDCX pivoted through the crisis and went out of their way to make things happen for their employees. The company relocated employees unable to go to headquarters to nearby hotels, initially planning a 2-week stay, but extended eventually to a 2- month stay due to uncertainty. “It made me feel at ease knowing that I will be able to work and still be safe since my accommodation is a few steps away from the office. The chance of being exposed is very minimal,” she said. This attention to employee welfare helped make Reem and her colleagues feel better, even happier, about working through the pandemic especially if it meant enabling easier work-from-home transitions for the rest of the TDCX teams.

Meg Trasmonte, a TDCX Workplace Specialist, agrees. The company highlighted how constant, proactive, and clear communication played an important role in efficiently reaching out and helping its employees get through the crisis whole. The approach helped ease any worries and anxiety at work.

“It amazed me how alert, advanced, and hands-on this company is, especially that our country is under a state of emergency,” she exclaimed. “I appreciate the fact that the company never fails to update their employees through advisory emails. I believe this was a huge help, especially to those employees who work the graveyard shift and do not have the time to catch up on the news.”

Navigating the TDCX office in the new normal

TDCX complied with government-set protocolsand rolled out company-specific guidelines so its workforce could continue working safely amid the pandemic.

Reem, Meg, and many of their colleagues noticed the swift imposition of wearing face masks, temperature checking, and proper and thorough handwashing in their office. Disinfectants were also handed out to each employee. A laundromat was even installed on-site so that workers staying over could wash their clothes. TDCX was clearly up for the challenge of adapting to the new normal as quickly and as effectively as possible, for the benefit not just of the company, but of its people who make the company thrive.

“From the very beginning, we employees were the top priority of TDCX. Before the lockdown, they started to provide surgical masks, vitamins, alcohol, fruits — anything to help their employees avoid catching the virus,” Meg said.

TDCX also quickly adapted social distancing protocols and skeletal workforce shifting mandates to help further protect employee health and well-being amid the ever-changing community quarantine implementations. “The first month was dedicated to making sure that the work- from-home arrangements of 90% of our employees would comply with DOLE’s advice. For the rest of the skeletal workforce during the lockdown, on-site employees were well-taken care of. We had food provided at least once per shift, and we were given packs of canned goods, noodles, and crackers. We were also given a BCP allowance which helped aid us during these struggling times,” shared Reem.

“TDCX was ready,” emphasized Meg, pointing out that the company readily shifted from normal to new normal. “They have provided reminders not only on main doors but also in meeting rooms, production floors and even in the restrooms. They also did floor restrictions to ensure minimal contact. Shuttles were provided to those who go to the office,” she shared. Through these necessary adjustments, TDCX has stayed committed to its goal of bringing out employee happiness to drive success to the business. By keeping their workforce informed, listening to their concerns, and being proactive, TDCX upheld its value of putting employees first even during tough times.

Encouraging a #BeHappier environment

Aside from proactively complying with health and safety protocols to ensure the well-being of its employees, Meg and Reem also shared that TDCX continues to keep its on-site and remote- working employees engaged through its online employee engagement activities. These online activities aim touplift employees’ spirits, boost their morale, and help them stay in tune with their mental health conditions.

“I found it wonderful that TDCX created online activities on taking care of our mental health, because honestly, while the virus is a threat to our health it can also cause our anxiety,” Meg said. She added that they feel fortunate to even be employed during these tough times in a company that puts employees’ welfare above all. “They made way for everyone. TDCX was able to maintain that homey vibe no matter how stressful the situation became.”

TDCX navigates the new normal with its continuous collective efforts aided by teamwork, clear communication, and positive company culture, proving that it’s not just another BPO, but a place to also grow, stay safe, and even have fun. And though the idea of being ‘happier’ at a time of pandemic seemed foreign to most, Reem, Meg, and their other colleagues know happiness to be true while they work for a company that cares for them.

“It may be challenging now and who knows until when, but I strongly believe we can make it through. We just have to be there for each other,” Reem encourages.

To learn more about TDCX, visit their website https://www.tdcx.com/ or follow them in their social media accounts Facebook: https://www.facebook.com/tdcx.philippines and Instagram: https://www.instagram.com/tdcx.philippines/

TDCX puts their employees first: the skeletal workforce was provided with essentials such as surgical masks, vitamins, and alcohol, and even an on-site laundromat!

Pandemic pulls down wealth of Philippine billionaires – Forbes

September 17, 2020 | 10:22 am

The collective wealth of Philippine tycoons dropped 22% to $60.6 billion due to the coronavirus pandemic, according to the 2020 Forbes Philippines Rich List.

In a list on its website, Forbes said a total of 32 tycoons, or more than half of its total listees, saw their wealth decline this year.

The Sy siblings of the SM Group had the largest fortune decline despite remaining the country’s richest with a net worth of $13.9 billion, down by $3.3 billion last year.

Former senator and property businessman Manuel B. Villar, Jr. remained the second richest, whose fortune was cut by $1.6 billion to $5 billion. He was the richest individual on the Forbes list.

Enrique K. Razon, Jr. moved up to third spot, but his wealth fell to $4.3 billion from last year’s $5.1 billion.

Only 10 listees saw an increase in their wealth, led by Edgar “Injap” Sia II, whose net worth rose $300 million to $700 million. Mr. Sia, known for creating fast food chain Mang Inasal, leads listed firms DoubleDragon Properties Corp. and MerryMart Consumer Corp.

The list also welcomed two newcomers: Lance Y. Gokongwei and his siblings, who replaced their father John L. Gokongwei Jr. who passed away in November, and Soledad Oppen-Cojuangco, who replaced her husband Eduardo “Danding” M. Cojuangco Jr. who passed away in June.

Six people also fell off the list, including Edgar B. Saavedra, chairman and CEO of engineering firm Megawide Construction Corp.

The top 10 richest in the Philippines are as follows:

Sy siblings; $13.9 billion
Manuel B. Villar, Jr.; $5 billion
Enrique K. Razon, Jr.; $4.3 billion
Lance Y. Gokongwei and siblings; $4.1 billion
Jaime Zobel de Ayala; $3.6 billion
Andrew L. Tan; $2.3 billion
Lucio C. Tan; $2.2 billion
Ramon S. Ang; $2 billion
Tony Tan Caktiong; $1.9 billion
Lucio & Susan Co; $1.7 billion

The full list can be viewed at www.forbes.com/philippines. — Denise A. Valdez

Filipinos born today ‘will fail to achieve almost half’ their potential productivity as future workers — World Bank

September 17, 2020 | 7:00 am

CHILDREN born in the Philippines today will “fail to achieve almost half their potential” productivity as future workers, according to a World Bank report. Read the full story.

PHL human capital index score slightly worsens

September 17, 2020 | 6:00 am

CHILDREN born in the Philippines today will “fail to achieve almost half their potential” productivity as future workers, according to a World Bank report.

The Washington-based multilateral lender’s Human Capital Index (HCI) 2020 Update report showed the Philippines’ HCI fell to 0.52 in 2020, from 0.55 in 2018, partially reversing the gains it had when it improved from 0.49 in 2012.

“The country’s HCI score of 0.52 means that children born in the country today will fail to achieve almost half their potential,” the report released Thursday read.

The index, which measures the human capital potential of children today, ranges from 0 to 1, with scores closer to 1 indicating better human capital status.

Despite the slight decline in its HCI, the World Bank noted the Philippines is among the countries with notable improvements over the last decade, along with Singapore, Morocco and Ghana.

Enrolment in the country significantly increased as seen in primary and secondary gross enrollment rates hitting 100% and nearing 90%, respectively in 2017.

However, quality of education still remains an issue despite the expanded access. The World Bank noted sores of 15-year-old students from the Philippines were lower compared with nearly all other participating countries in the 2018 Programme for International Student Assessment (PISA).

“In the Philippines, although several successive political administrations have adopted and sustained robust strategies to build the human capital of the population, they have not succeeded in growing sufficiently the capacity and good governance needed to implement these efforts on the ground,” the World Bank said.

The report noted the Philippines’ expenditures on health and education programs at 4.4% and 3.5% of gross domestic product (GDP), respectively, were relatively lower than what an average country at the same income level would spend: 6.5% of GDP for health programs and 4.5% on education.

“Widespread fraud in the distribution of textbooks, theft of funds or supplies, and ghost workers (workers who are paid but do not carry out their jobs) in municipal health facilities are all reflected in the country’s outcomes. In the PISA 2018 exam, about four-fifths of students (81%) achieved lower than a minimum level of proficiency in reading, while a similarly high percentage of students performed below the minimum level of proficiency in mathematics,” the World Bank said.

Among Asian countries, Singapore had the highest HCI score with 0.88, followed by Hong Kong (0.81), Japan (0.80), South Korea (0.80). and Macao (0.80).

The review process for the HCI data was conducted between February and July. The HCI was measured through five index components: enrollment data, child mortality, harmonized test scores, stunting rates, and adult mortality.

The latest edition updated the index to include expanded data for the components measured. It also added 17 new countries from its previous report in 2018, bringing the total to 174 countries.

The World Bank noted that many countries have made a huge progress in improving human capital over the last 10 years but the impact of the coronavirus pandemic threatens to reverse many of those gains. — Beatrice M. Laforga

Nationwide round-up

September 17, 2020 | 1:00 am

Medical experts support reduced distancing in public transport with ‘7 commandments’

MEDICAL EXPERTS supported the reduction of physical distancing in public transportation and recommended rules on avoiding the spread of coronavirus while opening the economy.

In a statement on Wednesday, the experts said they presented to the inter-agency task force on Monday the “Seven Commandments” that have to be observed in public vehicles.

These are: wearing of proper face masks, wearing of face shields, no talking and no eating, adequate ventilation, frequent and proper disinfection, no symptomatic passengers, and appropriate social distancing.

“These 7 Commandments need to be strictly enforced and independently monitored in their implementation,” said the group composed of doctors with background on public health, epidemiology and infectious diseases.

“By imposing these strict measures, we believe we can gradually relax social distancing rules, in order to double or even triple our current public transport capacity, without compromising public health,” they added.

The doctors also acknowledged that the country “cannot build back the economy” without increasing public transport capacity.

“Based on our review of the scientific literature and the policies and experiences of neighboring countries, we believe the evidence shows physical distancing can be maintained below 1 meter, so long as other health measures are also implemented,” they said.

The one-meter policy is recommended by the World Health organization (WHO).

The group is composed of former health secretaries Manuel M. Dayrit and Esperanza I. Cabral, UP Manila College of Public Health Dean Vicente Y. Belizario Jr., UP Manila Environmental and Occupational Health chair Michael R. Hernandez, and National task Force against COVID-19 special advisor Teodoro J. Herbosa.

They are also joined by Philippine College of Surgeons Cancer Commission Director Manuel Francisco T. Roxas, Eye Bank Foundation of the Philippines founder and CEO Ma. Dominga B. Padilla, and Rontgene Solante Infectious Disease Specialist Rontgene M. Solante.

The Department of Transportation, with approval from the national task force, started reducing the distance between passengers to 0.75 meters on Monday.

This will be further decreased to 0.5 meters by September 28 and 0.3 on October 12.

The new policy has been criticized by various sectors, including Interior and Government Secretary Eduardo M. Año, citing public health risks.

Palace Spokesperson Harry L. Roque said President Rodrigo R. Duterte is already evaluating the policy and will make a decision by Thursday.

“We had a six-hour meeting yesterday to reassess the policy… and it would be the President who will ultimately decide,” he said in an interview with CNN Philippines. — Vann Marlo M. Villegas and Gillian M. Cortez

Task force recommendation: Let health workers with overseas contracts as of Aug. 31 to leave

THE INTER-AGENCY task force handling the coronavirus response has recommended to extend the coverage of exempted health workers for deployment abroad to those with contracts as of Aug. 31.

In an online briefing on Wednesday, Labor Secretary Silvestre H. Bello III said their proposal is up for review by President Rodrigo R. Duterte.

Mr. Duterte ordered the deployment ban in March following the lockdown imposed to contain the coronavirus outbreak.

An exemption was later made for health workers with contracts as of March 8.

Mr. Bello said he will still not recommend a total lifting of the deployment ban, citing country’s need for more medical manpower amid the pandemic.

“Under the present situation, I am not confident that the clamor for the total lifting of the deployment ban will be favorably acted upon. I, for one, will not recommend because we will have to think of our country,” he said. — Gillian M. Cortez

Quarantine violator Sinas should not be promoted — solons

THE MAKABAYAN bloc in the House of Representatives slammed the police chief’s announcement that Metro Manila police chief Maj. Gen. Debold M. Sinas, who drew flak for his birthday “mananita” during the community quarantine period, will likely get promoted.

In a statement on Wednesday, Bayan Muna Party-list, one of the bloc members, said the promotion of Mr. Sinas would be a big “slap” to the Filipino people who have been subjected to unfair treatments and “draconian” measures.

“He should not be promoted. A promotion for a quarantine violator like Debold Sinas is a big slap to the Filipinos,” the group said.

In May, Mr. Sinas made headlines after his own police office posted photos of his birthday celebration where not everyone were wearing masks, physical distancing was not observed, and alcoholic drinks were evident — all in violation of the quarantine protocols imposed by the government. Social gatherings were also still prohibited at that time.

Despite the public outrage and calls to sack Mr. Sinas, President Rodrigo R. Duterte defended him saying that he will “not order his transfer.”

The Philippine National Police (PNP) Internal Affairs Service reportedly filed charges against Mr. Sinas and other police officials involved in the incident, but there has so far been no announcement of the result of the cases.

BayanMuna challenged the Duterte administration to show some “delicadeza” and order the resignation of Mr. Sinas. “Where is the delicadeza the PNP and the whole government? This government is a big circus, but one that is not funny,” the progressive group said.

“No one is above the law. They should set an example.”

PNP chief General Camilo Pancratius P. Cascolan said in an interview on ANC on Wednesday morning that Mr. Sinas “deserves” a promotion, hinting that he might be given a directorial staff position.

Mr. Cascolan said Mr. Sinas “has done good things” as commander of the National Capital Region (NCR) police office.

“We have to evaluate him properly. The guy deserves also an evaluation and of course, a promotion, too,” Mr. Cascolan said. — Kyle Aristophere T. Atienza and Emmanuel Tupas/PHILSTAR

Local governments wary of resuming provincial bus services from Metro Manila

MOST LOCAL governments are hesitant to open their borders for buses from Metro Manila as the government eyes resuming provincial bus operations this month.

In a briefing on Wednesday, Land Transportation Franchising and Regulatory Board (LTFRB) Chair Martin B. Delgra, III said only four out of 81 provinces nationwide agreed to reopen their borders following a consultation with local leaders.

“Out of 81 provinces, the only response we got among the provinces who would be willing to open their borders to admit passengers from Metro Manila are just four. So because of that, we will have to prepare nevertheless to open provincial bus routes on a limited capacity,” he said in mixed Filipino and English.

Last Monday, the Department of Transportation said the LTFRB will be releasing its guidelines on the resumption of provincial bus operations this week.

“Hopefully, we are looking at a timeline of within the month, we will be opening the provincial bus routes coming from Metro Manila or ending in Metro Manila,” Mr. Delgra said.

Metro Manila, the nation’s capital, has been the epicenter of the coronavirus outbreak, accounting for over half of the total cases.

Meanwhile, Overseas Workers Welfare Administration head Hans Leo J. Cacdac reported during the same briefing that over 200,000 overseas Filipino workers have been transported to their hometowns from Metro Manila as of September 16.

“As of today… 202,000 na po ang napauwi (have been sent home),” he said. — Gillian M. Cortez

Infrastructure spending falls in July

September 17, 2020 | 12:34 am

Public infrastructure projects have gradually restarted as lockdown restrictions eased. — PHILIPPINE STAR/MICHAEL VARCAS

STATE SPENDING on infrastructure declined once again in July, due to the slow resumption of construction work and bad weather in some areas, the Department of Budget and Management (DBM) said.

Latest DBM data showed infrastructure and other capital outlays dropped 30.4% to P52.3 billion in July from P75.2 billion logged in the same month last year. This was also 16% lower than the P62.8 billion spent for infrastructure in June.

“Infrastructure and capital outlays were lower by P22.9 billion year on year ending up at P52.3 billion mainly on account of the one-off expenditure in July last year with the advance payment made by the DND for the projects under the Revised AFP Modernization Program (RAFPMP),” the Budget department said.

The DBM also noted the disbursements to the Department of Public Works and Highways (DPWH) were lower year on year, as projects were gradually restarted with health and safety protocols. It also said some areas experienced inclement weather, which also affected construction work.

Lockdown restrictions in Metro Manila and nearby provinces were eased since June, but health and safety protocols continue to be implemented to curb the spread of coronavirus disease 2019 (COVID-19).

Infrastructure expenditures were down 9.4% to P350.3 billion in the January to August period, largely due to the impact of the enhanced community quarantine (ECQ) on business activity in Metro Manila and nearby provinces. Construction activities were only allowed to resume in mid-May.

“Infrastructure spending was lower year on year due to the base effect of high infrastructure expenditures in the same period last year brought about by the payment of prior years’ accounts payables, and the temporary suspension of public works due to the implementation of the ECQ measure in Luzon and other areas nationwide starting mid-March up to late May,” the DBM said.

Overall spending of the government reached P2.388 trillion at the end of July, up 24% from a year ago.

Infrastructure spending is likely to pick up following the July slump after the DBM released P38.3 billion to the DPWH, the country’s biggest infrastructure-implementing agency, in August it said.

“Infrastructure spending has substantial multiplier effects on output, employment, and household income. Hence, a contraction in government spending on infrastructure can deprive the economy of potential boosters of economic recovery,” University of Asia and the Pacific (UA&P) School of Economics Senior Economist Cid L. Terosa said in an e-mail.

Economic managers said massive spending on infrastructure will help the economy recover faster as it creates more jobs.

However, this year’s budget for infrastructure projects was cut to P785.5 billion, or 4.2% of gross domestic product (GDP), from the initial program of P989 billion as the government redirected funds to fund the pandemic response.

Mr. Terosa noted the reduced infrastructure spending may hurt economic growth over the longer term.

“Infrastructure spending contributes to capital formation, which is a vital cog of long run economic growth. The weakened state of infrastructure spending cuts capital formation and therefore, to a certain extent, jeopardizes long run economic growth potential of the country,” he said.

The National Economic and Development Authority (NEDA) Board, chaired by President Rodrigo R. Duterte, last month approved the revised list of 104 flagship infrastructure projects. The new list includes 12 new projects that are deemed crucial for the post-pandemic recovery.

The government has set a P1.107-trillion infrastructure spending plan for next year, 41% higher than this year’s allocation. — Beatrice M. Laforga

Pandemic leaves local shipbuilders high and dry

September 17, 2020 | 12:32 am

By Arjay L. Balinbin, Senior Reporter

THE PHILIPPINE shipbuilding industry is feeling the pain as new orders have dried up amid the recession.

“New orders are very seriously hit,” Meneleo G. Carlos III, chairman of the Shipyard Association of the Philippines (ShAP), said in a phone interview.

“Our road to recovery is simply meeting the requirements of our customers and hopefully our customers becoming more financially stable or have predictable requirements, and more regular settlement of obligations,” he added.

With the economic slowdown, many marine service providers like Chelsea Logistics & Infrastructure Holdings Corp. have put expansion plans on hold.

“Shipowners may really reconsider if investing in new vessels now is an option. Maybe we will revisit (our plans) after a couple of years or so,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a phone message.

Archipelago Philippines Ferries Corp. Chief Executive Officer Christopher S. Pastrana said in a phone interview: “We are deferring the newer orders that are supposed to start this year. We will start next year.”

Philippine Liner Shipping Association (PLSA) President Mark Matthew F. Parco said the local domestic shipping industry, like other industries, was “taken by surprise by the speed and breadth” of the impact of the coronavirus pandemic.

“The reduction in cargo and continuing restrictions in passenger travel have significantly affected the profitability and liquidity of the lines. The tight liquidity position is affecting the PLSA members’ decision to modernize and expand,” he said in an e-mailed reply to questions.

Mr. Pastrana, who is also the president of the Philippine Inter-island Shipping Association, noted the Bayanihan to Recover as One Act (Bayanihan II) signed by President Rodrigo R. Duterte on Sept. 11 “should have a positive impact on the economy, and goods should continue to be moved to support the islands,” as these are necessary for the industry’s recovery.

For now, shipbuilders are focusing on repair works for survival.

“With this pandemic, we shifted our focus from private (sector) to government. Survival is our priority, so we are having so many repair works for government-owned vessels,” Josefa Slipways, Inc. Vice-President for Marketing and Operations Arturo S. Balajadia said in a phone interview.

Before the coronavirus pandemic started, Josefa Slipways was preparing to construct more ferries, as the Maritime Industry Authority (MARINA) ordered the phase out of wooden-hulled passenger vessels.

Mr. Balajadia said the MARINA’s directive would have been a big opportunity for the local shipyards and contractors to secure more orders for passenger vessels.

STIMULUS
As the industry reels from the economic fallout of the pandemic, MARINA had proposed that P1.6 billion be allocated to the shipbuilding industry under the Bayanihan II.

A copy of MARINA’s position paper obtained by BusinessWorld said: “For the shipyard industry, to help sustain the business operation of shipyards until the economy recovers (payment for payroll cost, interest on mortgage obligations, rent, utilities, raw materials etc.), the National Government is proposed to provide a loan through the Development Bank of the Philippines with the following mechanics: payable in five years with low interest rate; no collateral; and lending decision approval of loan should be made within 30 days from date of application.”

It said the approved amount of loan will be “based on the paying capacity and size of business operation” of both shipyards and boatyards.

But under the newly signed Bayanihan II, of the P9.5 billion allotted for the Transportation department, only P2.6 billion will be used to assist the critically impacted businesses in the air, land, and sea sectors. Most of these funds will be used to provide temporary livelihood to displaced workers in the transportation industry and the construction of sidewalks and bicycle lanes.

MARINA Administrator Robert A. Empedrad did not immediately respond to a request for comment.

The law directs the Transportation department to “provide direct cash or loan interest rate subsidy” and “grants for applicable regulatory fees.” The department is likewise directed to “allow substitution of refund option to travel vouchers, provide grants for fuel subsidy and/or digital fare vouchers, as may be necessary.”

SURVIVAL
MARINA said the Philippines is the 5^th largest shipbuilder globally after China, South Korea, Japan, and Germany in terms of the total gross tonnage order book for ship construction in 2018.

Philippine shipbuilders had manufactured 2,161 ships in 2017, 61% higher from 1,354 ships built in 2011, it added.

There are 117 registered shipbuilding and ship repair entities in the Philippines as of Dec. 2019, according to MARINA’s website. Only 6% are capable of building and repairing big ships with a minimum length of 130 meters. Majority or 79% build and repair ships with a maximum length of 80 meters.

According to a study by the Duke University Center on Globalization, Governance and Competitiveness (Duke CGGC), revenue of domestic shipyards as of 2016 ranged from about $50,000 to $8.8 million, 90% came from repair rather than shipbuilding.

ShAP’s Mr. Carlos said local shipyards have had difficulty in penetrating the export market.

“Export is a challenging market nowadays unless you have a niche… or a specific client base where you are able to exercise some kind of a competitive advantage. There’s a particular pattern worldwide that seems to push for domestically grown or domestically produced products,” he explained.

Josefa Slipways’ Mr. Balajadia said local shipbuilders should partner with foreign shipyards if they want to secure overseas orders.

But with the ongoing pandemic, it doesn’t matter anymore whether the vessels are for local or export, as domestic shipbuilders are only interested in surviving, Mr. Carlos said.

“I think it’s important for us to look at the domestic requirements of both the Navy, the Coast Guard, the fishing industry, the transport industry, and even the private pleasure vessel or private work vessel industry,” he added.

Gov’t may reduce borrowings once tax collections improve

September 17, 2020 | 12:31 am

The Bureau of Internal Revenue is targeting to collect P1.686 trillion this year. — PHILIPPINE STAR/KRIZ JOHN ROSALES

GOVERNMENT BORROWINGS may be less than initially estimated this year, after the main revenue-generating agencies beat their lowered targets two months in a row, Finance Secretary Carlos G. Dominguez III said.

The Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) had surpassed their revised collection goals in July and August, as economic activity picked up with the easing of lockdown restrictions.

For the first eight months of the year, the combined collections of the BIR and BoC reached P1.6 trillion, exceeding the downward revised P1.527-trillion target. However, the amount was still down by 12% compared with the same period last year.

“We are still short of what we would like ideally, however, the revenue agencies have shown that they are still very active and that they are taking their job very seriously and have, in fact, exceeded the revised targets. But, again, I like to emphasize we are still 12% below last year,” Mr. Dominguez said in a press conference Tuesday.

“So our borrowing program will be informed by these new developments. And these new developments are positive and we may not need to borrow as much as we did. But again we are waiting to see how the rest of the year goes by,” he added.

National Treasurer Rosalia V. de Leon said the government continues to assess its borrowing plan based on the inflows from revenues generated and on how fast state agencies will use the budget.

“Our borrowing is calibrated on revenue collections and pace of spending to ensure a healthy cash buffer for emerging requirements,” Ms. De Leon said in a Viber message Wednesday.

The economic team has set a P3-trillion borrowing program this year to plug a budget deficit seen to balloon to 9.6% of gross domestic product (GDP) as revenues fall and spending rises on pandemic expenses.

The government had already raised P1.857 trillion in the seven months to July, already exceeding the P1.02 trillion borrowed for the entire 2020.

The BIR’s target for the year was lowered by 3% to P1.686 trillion in May, while the BoC is now tasked to collect P506.15 billion, down 6.6% from the previous goal.

Mr. Dominguez said the reduced collection targets were the economic team’s “realistic” projections as weak consumer demand pulled down collections of value-added and excise taxes.

The National Government’s debt stock is expected to reach P10.16 trillion by year’s end amid increased borrowings. So far, its outstanding debt rose 18.5% to P9.16 trillion as of end July from the P7.73-trillion level recorded at the start of the year.

The outstanding debt stock is projected to reach 53.9% of GDP by year’s end, 58.1% next year and 59.9% by 2022.

For next year, the government is set to borrow another P3 trillion as revenues are expected to remain sluggish while the national budget was increased to P4.5 trillion to support economic recovery. — Beatrice M. Laforga

SC upholds Razon takeover of Iloilo power firm

September 17, 2020 | 12:07 am

THE Supreme Court upheld the validity of the provisions of the law allowing Razon-led MORE Electric and Power Corp. to take over the power distribution assets in Iloilo City.

Brian Keith F. Hosaka, the court’s public information chief, told reporters the justices voted 8-6 in favor of MORE.

“In granting the petitions, the Supreme Court reversed the Judgment of the Regional Trial Court of Mandaluyong City Branch 209 in Civil Case No. R-MND-19-00571, and declared Section 10 and 17 of RA No. 11212 constitutional,” he told reporters via Viber.

The six justices who dissented were Justices Marvic Mario Victor F. Leonen, Amy C. Lazaro-Javier, Henri Jean Paul B. Inting, Rodil V. Zalameda, Mario V. Lopez, and Samuel H. Gearlan. Justice Priscilla J. Baltazar-Padilla did not take part.

MORE, led by businessman Enrique K. Razon Jr., in February 2019 was granted a 25-year franchise to provide electricity to Iloilo City, replacing Panay Electric Co., Inc. (PECO).

PECO was the electric provider of Iloilo for more than 90 years, but its legislative franchise expired in January 2019.

Estrella C. Elamparo, PECO’s legal counsel, said the side of the city’s previous electricity distributor was “saddened” by the decision of the Supreme Court.

“It was a close vote on a novel issue that had never been raised before our Highest Court, but will certainly have reverberating consequences that open the power of expropriation to abuse. The tight vote lends support to our position that the takeover of PECO’s properties is not the exercise of eminent domain contemplated by our laws, but a violation of constitutional rights,” she said in a statement.

“The ponente proceeded with the decision just days before his retirement from the judiciary. Although this is a massive hurdle, we will not give up on our fight and we will continue to pursue the available legal remedies to defend PECO’s constitutional rights. Despite this temporary setback, we remain optimistic that we will ultimately be vindicated not just for PECO but for the people of Iloilo,” Ms. Elamparo added.

The Mandaluyong court last year declared as unconstitutional the two provisions in the legislative franchise of MORE following a petition from PECO.

Section 10 of Republic Act 11212 authorizes MORE to exercise the power of eminent domain as necessary for the efficient establishment, improvement, and maintenance of its services and acquire private property “as is actually necessary for the realization of the purpose for which the franchise is granted.”

Meanwhile, Section 17 provides that PECO is to operate the existing distribution system in the franchise area until MORE completes its own distribution system within two years.

MORE raised to the Supreme Court the ruling of the trial court and secured a temporary restraining order in December 2019.

Early this year, an Iloilo court issued a writ of possession, allowing MORE to take over PECO’s assets.

PECO last week said it had filed an anti-competition complaint against MORE for allegedly prohibiting competition in electricity distribution in Iloilo city. — Vann Marlo M. Villegas with Adam J. Ang

Jollibee expects demand growth in North America, Europe

September 17, 2020 | 12:06 am

JOLLIBEE Foods Corp. (JFC) continues its expansion in North America and Europe as it sees growing demand for its Jollibee brand overseas.

In a statement Wednesday, the company said it recently opened its first Jollibee store in Liverpool, UK and West Plano, Texas, USA, where initial sales from the stores exceeded forecasts.

JFC noted a double-digit growth for Jollibee in North America, and a plan to open 50 stores in Europe for the next three to five years.

“Jollibee continues to grow in both North America and Europe,” JFC President and CEO Ernesto Tanmantiong said in the statement. “In North America, the Jollibee brand is seeing double-digit growth, with our Chowking and Red Ribbon brands also performing well… In Europe, our expansion plans are ongoing.”

The opening of a new Jollibee store in the Greater Dallas area of Texas marks JFC’s 45th store in North America. Before the year ends, it targets to open more stores in California and Canada.

In Europe, the Liverpool store increased JFC’s network to three stores, with the other two located in Milan, Italy and Earl’s Court, London. Another Jollibee store is lined up to open in Leicester, England before the end of 2020, putting JFC on track to open 50 restaurants in Europe in the next three to five years.

“Our customer base around the world continues to grow as we tap local consumers within each market – expanding it from Filipinos living abroad to a wider, more mainstream market,” Mr. Tanmantiong said.

The company noted its non-dine-in services help lift sales amid the coronavirus pandemic, offering continued access to its products despite limited mobility.

“The digital pivot happening has driven off-premise channels like delivery, drive-thru, and take-out to a higher level, enabling our brands to outperform the QSR (quick service restaurant) industry in the US,” Mr. Tanmantiong said.

Aside from Jollibee, JFC said company-owned Smashburger stores in the US have also been recording double-digit growth in the past four months.

The company is expecting a bad financial performance throughout the year due to the coronavirus pandemic. It posted an attributable net loss of P12.99 billion in the first semester, reversing P2.18 billion attributable profits in the same period last year.

But it expects sales and income to significantly rebound in 2021, with Smashburger and The Coffee Bean and Tea Leaf, which JFC recently acquired, beginning to be profitable.

The company is allocating P5.2 billion for capital spending this year.

Shares in JFC at the stock exchange dropped P1.60 or 1.19% to P133.30 each on Wednesday. — Denise A. Valdez

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