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Philippines bans chicken imports from Brazil on coronavirus scare

MANILA — The Philippines imposed a temporary ban on poultry meat imports from Brazil on Friday after two cities in China found traces of the new coronavirus in cargoes of imported frozen food, including chicken wings from the South American country.

Shenzhen city authorities identified the chicken as originating from a plant owned by Aurora, Brazil’s third-largest poultry and pork exporter.

Brazil has the world’s second-worst COVID-19 (coronavirus disease 2019) outbreak after the United States, recording more than 3.2 million cases and more than 105,000 deaths since the pandemic began.

“With the recent reports from China and in compliance with the country’s Food Safety Act to regulate food business operators and safeguard Filipino consumers, the temporary ban on the import of chicken meat is imposed,” the Department of Agriculture said in a statement.

It did not say how long the ban would be enforced. Brazil accounts for around 20% of the Philippines’ poultry meat imports.

Aurora, which is unlisted, said it had not been formally notified by the Chinese authorities of the alleged contamination. The company said it takes all possible measures to prevent the spread of the coronavirus and there is no evidence it is spread through food. Brazil’s agriculture ministry said it was seeking clarification from Chinese authorities.

The Philippines’ Department of Agriculture assured the public, however, that chicken products currently in the local market were safe to eat.

The World Health Organization said on Thursday it saw no evidence of coronavirus being spread by food or packaging and urged people not to be afraid of the virus entering the food chain. — Reuters

New Audi A8 L featured in ‘factory warehouse sale’

LONGER THAN the standard A8 full-size sedan’s dimensions and wheelbase by 13 cm, the new Audi A8 L 3.0 TFSI MHEV provides more space for rear passengers.

It banners active suspension that helps the car attain the comfort of a chauffeur-driven limousine, or the firm handling of a sports car. Audi said the “system is fully dynamic, relying on electromechanical actuators to lift or force down each of the vehicle’s wheels individually to actively manage ride height in every situation. Using a camera located at the front of the car, the system identifies uneven surfaces before these are reached, and predictively regulates the active suspension.”

This executive vehicle is featured in the ongoing “Audi Factory Warehouse Sale 2.0” promo, which extends discounts as much as P1 million on select 2020 Audi models.

The Audi A8 L features a rear-seat entertainment system comprised of two Audi tablets and a rear seat remote. Connectivity to any platform is assured by Apple CarPlay and Android Auto. Under the hood is a 3.0-liter, turbocharged V6 gasoline engine generating 335hp and 500Nm. Supplementing it is a mild-hybrid system with a belt alternator starter (BAS) and a lithium-ion battery with 10Ah electrical capacity. Through this, A8 L can coast at speeds between 55 kilometer per hour (kph) and 160kph with the engine switched off (thereby producing zero emissions for up to 40 seconds). Upon the application of throttle input, the BAS quickly and smoothly restart the engine.

At the heart of it all is a 48-volt system that functions as the main vehicle electrical system, and offers a high recuperation power of up to 12kW plus start-stop operation from 22kph, thereby reducing fuel consumption. Paired to the new Audi A8 L’s engine is a quick eight-speed tiptronic transmission. Audi’s quattro permanent all-wheel drive system with self-locking center differential, as well as 20-inch Audi Sport alloy wheels, come standard.

The Audi Factory Warehouse Sale 2.0 is made possible through support extended by Audi AG, and runs until Aug. 31, 2020. For more information, call 0917-813-9064, 0917-806-2946, or 0917-935-4111.

How PSEi member stocks performed — August 14, 2020

Here’s a quick glance at how PSEi stocks fared on Friday, August 14, 2020.


COVID-19 infections top 161,000 with total deaths nearing 3,000

THE Department of Health (DoH) reported 3,420 new coronavirus infections on Sunday, bringing the total to 161,253.

The death toll rose to 2,665 after 65 more patients died, while recoveries increased by a record 40,397 to 112,586, it said in a bulletin.

Of the new cases, 2,091 came from Metro Manila, 263 from Laguna, 149 from Cavite, 137 from Batangas and 106 from Rizal, DoH said.

There were 46,002 active cases, 90.7% of which were mild, 6.7% did not show symptoms, 1.1% were severe and 1.5% were critical, it added.

Forty-six of the new reported deaths came from Metro Manila, 13 from Central Visayas, three from the Calabarzon region, and one each from Central Luzon, Bicol, and the Davao regions, the agency said.

More than 1.89 million individuals have been tested for the virus, according to DoH.

DoH reported “time-based” recoveries by reconciling their data with those of local government units.

Under the protocol, patients with mild symptoms or don’t show them at all will be tagged as recoveries after 14 days from the onset of the illness or from the time of swabbing.

The patients should be cleared by physicians before being classed as recoveries.

DoH said last week time-based recoveries will be reported every Sunday.

President Rodrigo R. Duterte locked down Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the strict lockdown twice for the island and thrice for Metro Manila. He later put Manila and nearby cities and provinces back under a strict lockdown until Aug. 18 after a fresh surge in infections.

The Education department also moved the opening of classes to Oct. 5 from Aug. 24. Mr. Duterte has said he wouldn’t allow face-face classes in the absence of a vaccine.

While Russia claims to be the first country to develop a coronavirus vaccine, trials were still being conducted and the vaccine shots are not expected to arrive in the Philippines until next year.

Russian President Vladimir Putin on Tuesday said his country had developed the first vaccine for the coronavirus. Critics have questioned the safety of the vaccine from the Gamaleya Research Institute of Epidemiology and Microbiology since vaccines take years to develop.

The Philippines and Russia seek to run phase 3 clinical trials of the vaccine from October to March, and these may involve as many as 3,000 volunteer patients, Presidential Spokesman Harry L. Roque said last week.

The coronavirus has sickened about 21.6 million and killed more than 769,000 people worldwide, according to Worldometers website, citing various sources including data from the World Health Organization.

The website said about 14.3 million people have recovered from the virus, listing only  6.5 million active cases. — Vann Marlo M. Villegas

More than 10,000 OFWs come home

MORE THAN 10,500 overseas Filipinos arrived last week amid a coronavirus pandemic that has sickened 21.6 million and killed more than 769,000 people worldwide, the Department of Foreign Affairs (DFA) said at the weekend.

Among those who came home through 27 special commercial repatriation flights and two flights chartered by DFA were about 8,100 migrant workers from the Middle East.

The rest came from Seychelles, Brazil, Canada, the United States, Japan, India, China, Sri Lanka, the Netherlands and Greece among other countries.

This brought the total number of repatriated Filipinos to 135,290, the agency said in a statement on Saturday. Of the total, 39% were sea-based, while the rest were land-based.

Meanwhile, DFA said the first batch of distressed workers from Lebanon after an Aug. 4 explosion there would arrive on Monday. The blast at a port warehouse in Beirut killed at least four overseas Filipinos and hurt more than 40 others.

DFA said 9,800 migrant Filipinos have been infected with the coronavirus, 3,300 of whom were being treated, 5,800 have recovered and 725 died.

The House of Representatives has sought to increase the DFA budget for distressed overseas Filipino workers under a bill that will give President Rodrigo R. Duterte special powers to deal with the pandemic.

“With the additional funds, we hope to bring home more of our kababayans by September and December,” Speaker Alan Peter S. Cayetano said in a statement on Sunday.

DFA is expecting 90,900 more workers to arrive by September and 100,000 more by December, he said, citing DFA.

The bill provided about P820 million in additional funding to cover expenses of bringing home overseas workers. The counterpart Senate bill does not have a similar provision.

Lawmakers are trying to reconcile conflicting provisions of the bills at a bicameral conference committee. — Charmaine A. Tadalan

More than 58,000 prisoners released during pandemic

MORE THAN 58,625 inmates have been released since President Rodrigo R. Duterte locked down the entire Luzon island in mid-March to contain a coronavirus pandemic, according to Supreme Court data.

Among the regions with the highest prisoner releases were Metro Manila with 12,726, followed by the Calabarzon region with 10,354, Central Luzon with  7,855 and Central Visayas with 6,970.

The Office of the Court Administrator also allowed 882 trial courts to pilot-test and conduct video conferencing for hearings.

A total of 47,676 videoconferencing hearings were held from May 4 to Aug. 7 with an 85% success rate.

The Supreme Court has issued rules to address jail congestion to stop the spread of the coronavirus, including the release of indigent inmates through reduced bail. It also allowed courts to hold virtual hearings.

The Judiciary also told trial court judges to release prisoners who had served the minimum penalty for their sentences and those who had no witnesses for their cases.

The Department of Justice likewise approved the rules relaxing the requirements for the grant of parole and executive clemency to prisoners.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making it the most overcrowded prison system in the world, according to the World Prison Brief (WPB).

As of 2017, it had 933 jails — seven national prisons and 926 city, district, municipal and provincial jails, which are not enough to contain inmates, three-quarters of whom were at the pre-trial stage, WPB said on its website. — Vann Marlo M. Villegas

Regional Updates (08/16/20)

Cagayan de Oro mall shop suspends sale event after crowd abandons distancing

A SHOE shop at the Limketkai Center in Cagayan de Oro City has suspended its clearance sale after people swarmed the store on Saturday, failing to observe the 1.5-meter distancing rule. “We wish to inform the public that The Sports Warehouse Clearance Sale in Limketkai Center, Cagayan de Oro City is on hold from Aug. 16 to 17, 2020. Please be on standby for our announcement in the next days to come,” the shop’s management announced on its Facebook page. Photos and videos of the crowd went viral on social media over the weekend. Limketkai Center, in a separate statement, said it has reported to and coordinated with the city government for the suspension of the event. “Due to the unexpected number of shoppers of The Warehouse Clearance Sale, some safety health protocols were not observed. Please be advised that our management have temporarily stopped the said activity at the Atrium which was thereafter seconded and approved by the City government,” the mall’s management said. The shop apologized for the incident and gave assurance that “we will abide by the guidelines set by the government to ensure safety and security of everyone.”

Metro Shuttle to rebid for Davao City bus service

DAVAO METRO Shuttle Corp. will rebid for one of the franchises for Davao City’s interim bus service after failing in the first round of selection. “We failed because we don’t have ready units pa (yet) because of logistical issues caused by the pandemic,” De Carlo Uy, president of Davao Metro Shuttle, said in a text message. The interim bus project is part of the city’s High Priority Bus System (HPBS), which aims to replace all jeepneys along major roads. Mr. Uy said they are reapplying for one of the initial three routes up for bidding, covering Catalunan Grande-downtown. The bus firm, established in 1995 with its main office in Tagum City, has been operating inter-city, inter-province and inter-regional routes. Apart from Metro Shuttle, another Mindanao-based bus company, Bachelor Express, Inc., was also disqualified in the first round, with a bid to serve the Toril-downtown route. The Land Transportation Franchising and Regulatory Board has opened another round of franchise application. Applicants have until 9 a.m. of Aug. 20, 2020 to submit their documents for evaluation. — Maya M. Padillo

Nationwide round-up

Catholic leaders call on gov’t to look at ‘new scientific insights’ for COVID-19 response

THE CATHOLIC Bishops’ Conference of the Philippines (CBCP) called on the government to use more science, experience of other nations, and a wider participatory approach in its response measures for the coronavirus crisis. “Continued endless lockdown is unnecessary,” the CBCP said in a pastoral letter dated Aug. 14 and read at Sunday masses on the 16th. The Philippines, the biggest Catholic country in Asia, has one of the longest and strictest lockdowns in the world. “We call on government officials to be more open to the new scientific insights and global experiences around COVID-19, even if these may challenge one’s belief systems and preferred approaches to managing the epidemic,” the bishops said, “Let us learn from the success stories of our ASEAN neighbors with political humility and collective honesty.” They also appealed to the task force in charge of the coronavirus disease 2019 (COVID-19) response, “for a more participatory approach that is open to the wisdom and experience of various professionals, scientists and physicians as well as genuine and constructive representatives of business, civil society, and local government units.” President Rodrigo R. Duterte placed the capital Metro Manila and the rest of the northern mainland Luzon under a strict lockdown in mid-March. The country currently has the highest number of cases within southeast Asia. — Gillian M. Cortez 

Employers to pay for RT-PCR testing for workers in certain sectors

THE REGULAR testing for the new coronavirus of workers in certain industries will have to be paid for by employers, the government ordered over the weekend. In a joint memorandum, the Department of Labor and Employment and the Department of Trade and Industry said the real-time reverse transcription-polymerase chain reaction (RT-PCR) test is mandatory and should be conducted regularly in specific sectors. “The COVID-19 testing must be at no cost to the employees,” Labor Secretary Silvestre H. Bello III said in a statement on Sunday. The sectors covered are: tourism; manufacturing; transport and logistics; food and non-food retail; education; financial services; public market; construction; water supply, sewerage, and waste management; public sector; and mass media. — Gillian M. Cortez

6 PhilHealth regional officers go on leave with investigation ongoing

SIX OFFICIALS of the Philippine Health Insurance Corp. (PhilHealth) have filed for a leave as investigations are ongoing on alleged systematic corruption in the government agency. Presidential Spokesperson Harry L. Roque, in a statement on Sunday, confirmed that six “regional officers” are temporarily stepping down from their post. Mr. Roque did not name the officials, but dismissed the use of the term PhilHealth “mafia” members. Concurrent probes on the agency are being conducted in Congress and by a Justice department-led task force created upon the order of President Rodrigo R. Duterte. Senators have earlier suggested that PhilHealth officials linked to the allegations should go on leave. Justice Secretary Menardo I. Guevarra, in a viber message to reporters on Sunday, said he hopes more PhilHealth officials will go on leave.  “I hope that the officials at the PhilHealth main office who have already been tagged in the ongoing congressional inquiries in aid of legislation, as well as those identified by the PACC (Presidential Anti-Corruption Commission), would likewise take a temporary leave so that Task Force PhilHealth may freely perform its mandate,” Mr. Guevarra said. — Gillian M. Cortez

DTI seeking fiscal incentives for relocating firms, worker retention

By Jenina P. Ibañez, Reporter

THE Department of Trade and Industry (DTI) has proposed fiscal incentives for companies to retain employment and relocate to the provinces, addressing areas not tackled by the Bayanihan II stimulus bills now being harmonized in bicameral conference sessions.

Bayanihan II is known formally as the proposed Bayanihan to Recover as One Act.

In a letter dated Aug. 9 to Deputy Speaker Raneo E. Abu, a member of the bicameral conference committee, Trade Secretary Ramon M. Lopez asked that certain businesses be allowed to register as eligible for incentives under Executive Order 226.

Under this order, businesses in preferred areas are given incentives such as income tax holidays, a deduction of taxable income equivalent to 50% of wages, and tax exemptions on imported capital equipment if they meet certain requirements.

The DTI is asking that incentives be applied to manufacturers relocating to the Philippines, businesses that retain 90% of their employees during the pandemic, and new outsourcing projects that start in 2020 or 2021 or employ returning overseas Filipino and displaced workers.

They are also asking to apply this to certain business activities outside the capital and agri-industry or businesses that source from marginalized communities.

For corporate taxpayers that retain 90% of their workforce up to 2021, the DTI said the net operating loss for tax years 2020 and 2021 that had not been offset as a deduction from gross income should be carried over as a deduction from gross income for the six consecutive tax years after the loss.

The DTI said that the companies should get a year of income tax holiday in the first year of positive income after 2021.

The department is also asking that businesses retaining their workforce at government-owned freeport, export, and industrial zones be given a reprieve from lease payments.

MANUFACTURING AND CONSTRUCTION SUPPORT
The department is requesting P50 million to support its COVID-19 (coronavirus disease 2019) response for the industrial sector.

This includes P30 million for COVID-19 testing for small and medium-sized construction companies working on public infrastructure, P15 million for a testing laboratory for personal protective equipment for domestic manufacturing firms, and P5 million for the testing and quarantine of prospective foreign investors entering the country.

The proposals include relaxing the travel ban for foreign investors.

Mr. Lopez said that Bayanihan II had left out the manufacturing and construction sectors, which experienced declines in demand and productivity.

“Our competitors have largely insulated their manufacturing sectors from lockdowns and, by now, have even relative success in containing the COVID-19 pandemic. In spite of their success so far, they are implementing substantially more generous stimulus and subsidy/incentive packages,” he said.

“As our neighbor-competitors, however, still do experience depressed demand, their heavily-subsidized manufactured and tradeable products will look for markets elsewhere and the Philippines’ large population base, continuous government spending, and zero-duty for imported products, is an important target market.”

Electronics exporters supported Mr. Lopez’s proposal, which they said would prevent the shut down of companies and displacement of workers in the manufacturing sector.

Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) President Danilo C. Lachica in a letter to Senate President Vicente C. Sotto on Aug. 12 said that the industry is expecting a contraction from its 2019 export levels.

“This may conceivably get worse if we don’t arrest the infection rate,” he said.

Mr. Lopez is also asking for authorization to amend tariffs even as Congress is in session to raise government revenues.

The department also batted for government preferential treatment in procurement for domestic suppliers.

“Government expenditure to effectively stimulate the economy should create demand for domestic manufacturers,” Mr. Lopez said.

Metallic minerals output falls 14.4% in first half of 2020

METALLIC MINERALS production fell 14.4% by value to P53.88 billion in the first half due to disrupted mining operations during the pandemic, the Mines and Geosciences Bureau (MGB) said.

In a report, the MGB said direct-shipping nickel ore and its products such as mixed nickel-cobalt and scandium oxalate accounted for 44.8% of the total or P24.13 billion, followed by gold at 41.5% or P22.12 billion, and copper at 13.5% or P7.19 billion, and silver and chromite at less than 1% or P430 million.

The MGB said the gold industry saw a 26% increase in global market prices to $1,647.44 per troy ounce in the first half of 2020, compared to $1,307.36 a year earlier.

“Market analysts believed that gold prices would continue to go up given the current world economic situation,” the MGB said.

Gold is regarded as a safe-haven investment during crises.

Nickel prices in the first six months rose 1.3% year on year to $12,473.17 per ton, while copper prices fell 10.8% to $5,496.36 per ton.

By volume, nickel fell 27.7% to 102,310 metric tons (MT).

The MGB said all nickel producers posted declines in production by value except for Rio Tuba Nickel Mining Corp., Adnama Mining Resources, Inc., SR Metals, Inc., Agata Mining Ventures, Inc., Carrascal Mining Corp., and Marcventures Mining and Development Corp.

Palawan led all nickel-producing provinces with production of 31,123 MT, followed by Agusan del Norte at 25,321 MT, Surigao del Norte at 21,358 MT, Surigao del Sur at 15,724 MT, Dinagat Island at 6,918 MT, and Zambales at 1,865 MT.

“We expect, however, that production in the Surigao provinces and Dinagat Island will at least pick up or improve in the coming months since weather conditions will be more apt for mining operations,” the MGB said.

Production of mixed nickel-cobalt sulfide fell 4.6% to 25,306 MT with an estimated value of P14.22 billion.

Surigao del Norte-based Taganito HPAL Nickel Corp. accounted for 59% or 14,867 MT while Coral Bay Nickel Corp. in Palawan was responsible for 41% or 10,440 MT.

Gold production fell 26.7% to 8,246 kilograms with a value of P22.12 billion.

Philippine Gold Processing Refining Corp. in Masbate was the top gold producer, accounting for 35% or 2,909 kilograms and followed by Mindanao Mineral Processing and Refining Corp. in Agusan del Sur with 18% or 1,454 kilograms.

Copper production was led by Cebu-based Carmen Copper Corp. at 24,572 MT, followed by Philex Mining Corp. at 6,142 MT, and Lepanto Consolidated Mining Corp. at 316 MT.

The MGB said the performance of the metallic minerals sector was affected by the slowdown in economic activity, pandemic-disrupted mining operations, and unstable global prices.

The MGB said that as of July 8, it has utilized P364.41 million of the funding for mining companies’ Social Development and Management Program (SDMP), assisting mining communities affected by COVID-19.

The MGB issued a memorandum on March 27 that permitted the realignment of the program’s unutilized funds for the provision of personal protective equipment and other items to medical personnel and affected families. — Revin Mikhael D. Ochave

Fuel import duties approach P100B after marking program

DUTIES and taxes collected from imported fuel products hit P99.8 billion as of Aug. 12, counting from September 2019 when the government imposed a marking system on such products, the Bureau of Customs (BoC) said.

The revenue was generated from 11.193 billion liters of marked fuel products, it said.

Diesel accounted for 62% of the total at 6.987 billion liters, followed by gasoline with a 37% share at 4.15 billion liters. The remainder is from kerosene.

Around 75% was generated in Luzon, 20% in Mindanao and 5% in the Visayas, according to a report issued by the Department of Finance (DoF).

In a statement Friday, the bureau said the “program’s strong performance affirms the BoC’s continued commitment to protect the borders and collect lawful revenues for the government.”

The Fuel Marking Program aims to deter oil smuggling by injecting the products with a special dye to signify tax compliance. The absence of the dye is deemed prima facie evidence that the fuel was smuggled.

In February, the DoF estimated that the government can generate P20 billion in additional revenue this year from the fuel marking program.

It estimated that revenue foregone due to oil smuggling was between P20 billion and P40 billion a year. — Beatrice M. Laforga

Rice tariff collections top P11 billion — BoC

RICE TARIFF collections totaled P11.036 billion in the seven months to July, up 4% year on year despite lower import volume, according to Customs data obtained by BusinessWorld.

The volume of imported rice dropped 26.2% from a year earlier to 1.705 million metric tons.

In mid-July, the Bureau of Customs (BoC) exceeded the P10 billion worth of tariffs that must by law go to the Rice Competitiveness Enhancement Fund (RCEF), which will support farm mechanization and other measures to allow farmers to better compete against imports.

The RCEF is authorized by Republic Act (RA) No. 11203 or the Rice Tariffication Law.

The BoC collected P12.1 billion from rice tariffs last year. Agriculture Secretary William D. Dar has asked the Budget department to release the P2 billion worth of excess revenue.

The Agriculture department wants to use the excess as follows: P1 billion for the crop diversification program and P1.1 billion to expand crop insurance.

RA 11203 was signed into law in February 2019, allowing unrestricted imports by private parties, who need to pay 35% tariffs on Southeast Asian grain. The tariffs fund the RCEF budget of P10 billion a year. — Beatrice M. Laforga