Manufacturing PMI falls to record low

May 5, 2020 | 12:33 am

FACTORY ACTIVITY slumped to a record low in April, as the extended lockdown continued to prevent manufacturers from operating at normal capacity.

IHS Markit reported on Monday that the Philippines Manufacturing Purchasing Managers’ Index (PMI) plunged to 31.6 in April from 39.7 in March, indicating another “steep decline in operating conditions across the manufacturing sector.”

“The headline reading marked a new record low, with a deterioration recorded in all five sub-components of the index,” IHS Markit said.

April marked the second straight month of contraction. A PMI reading below 50 signals deterioration in operating conditions compared to the preceding month, while a reading above 50 denotes improvement.

The headline PMI measures manufacturing conditions through the weighted average of five indices: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).

Available data showed most of the seven ASEAN countries monitored saw deterioration in their PMI readings in April as well, with Vietnam topping the list at 32.7, down from 41.9 recorded in March. This was followed by the Philippines, Malaysia (31.3), Myanmar (29) and Indonesia (27.5). Data for Thailand and Singapore were not yet released.

“The Philippines Manufacturing PMI joined a chorus of data demonstrating the widespread and severe impact of lockdown measures on the global economy in April,” IHS Markit Economist David Owen was quoted as saying.

Production in the country “collapsed” last month to decline at the “quickest since the series began in January 2016,” as companies were unable to operate at full capacity during the Luzon-wide lockdown throughout April, IHS Markit said.

The strict lockdown measures also affected manufacturing demand after clients canceled orders due to restricted mobility, while consumers limited spending on essentials only.

Mr. Owen said the sharp decline in output signals that industrial production data could be “bleak” throughout the lockdown period. The enhanced community quarantine (ECQ) was extended until May 15 in Metro Manila and other high-risk areas while other parts of the country began a gradual easing to a general community quarantine.

Temporary shutdowns of companies and restrictive measures by governments abroad also pushed Philippine exports to fall “drastically.” IHS Markit said new orders plunged at the fastest pace in the series history.

Input buying declined “at a marked pace” last month from March as manufacturers “made large efforts to reduce purchasing” following the slump in demand, IHS Markit said.

Pre-production inventories and stock of finished products likewise declined significantly.

Philippine firms surveyed noted the slow delivery of stocks, as the lockdown hampered delivery of goods.

“Lead times increased for the ninth month running, with delays lengthening to the greatest extent in the series so far,” IHS Markit added.

Companies that were allowed to partially resume operations during the lockdown employed fewer people, while firms whose factories remained closed had to lay off “large numbers.”

Despite this, IHS Markit said the rate of job losses softened in April compared to the pace seen in March, indicating a slightly better outlook for future output.

The survey showed firms were “more upbeat” as easing of lockdown restrictions nears, saying that work on new products and completion of the pending orders will resume then. However, confidence “remained weaker.”

Meanwhile, input costs in April slipped for the second month in a row on dampened demand and the plunge in oil prices, but shortage in supply of raw materials still “weighed on cost burdens” for the manufacturers.

Businesses also lowered output charges last month in a bid to boost sales, with charges falling for the second consecutive month but at a softer pace from the month period.

As manufacturers were struggling with setbacks in overseas supply and demand, IHS Markit’s Mr. Owen said relaxation of lockdown protocols “may temper these issues, but they will likely remain in some form for the duration of this global crisis.”

He added that a quick return in factory activity could also mean a strong recovery of employment.

For Capital Economics, the broad contraction of PMIs among emerging Asian economies “are unlikely to have bottomed out yet in many places,” with the possibility of near-term recovery to be “very slow going.”

“The bad news is that the hit to industry in many places is unlikely to be passed the worst. Global demand has slumped and we don’t think it has bottomed out yet,” Capital Economics said in a note yesterday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the sharp contraction in manufacturing activity was also seen in other ASEAN countries and some economies in Europe that implemented strict lockdown measures.

Mr. Ricafort said the PMI reading will likely pick up starting May as more areas shift to a general community quarantine (GCQ) where more companies are allowed to resume operations. He noted that rebound will be gradual.

For Security Bank Corp. Chief Economist Robert Dan J. Roces, “timely deployment of policy tools by our economic managers will ensure a soft landing and quicker rebound,” while recovery in demand will drive PMI higher in the coming months. — B.M. Laforga

Manufacturing purchasing managers’ index of select ASEAN economies, April (2020)

May 5, 2020 | 12:33 am

FACTORY ACTIVITY slumped to a record low in April, as the extended lockdown continued to prevent manufacturers from operating at normal capacity. Read the full story.

BSP allows banks to use excess capital

May 5, 2020 | 12:32 am

THE central bank is now allowing financial firms to tap their Basel III-mandated capital and liquidity buffers to mitigate the impact of the coronavirus disease 2019 (COVID-19) pandemic.

“A covered bank/quasi-bank (QB) which has built up its capital conservation buffer (CCB) and Liquidity Coverage Ratio (LCR) buffer is allowed to utilize the same during this state of health emergency,” the central bank said in Memorandum No. M-2020-039 signed by Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier on May 4.

“[T]he BSP encourages a covered bank/QB to act along this principle for purposes of absorbing losses and supporting the financing requirements of the overall economy,” the BSP said. “In view of this, a covered bank/QB is expected to integrate these regulatory flexibilities into its internal policies and processes to ensure that the buffers are efficiently utilized, as necessary.”

The memorandum said banks will be given a “reasonable time period” to restore their capital positions to meet Basel III requirements after the crisis.

The Basel III framework contains measures that aim to improve banks’ risk management so they can withstand excessive financial stress. These came in the aftermath of the 2008 Global Financial Crisis.

Universal and commercial banks have been required to comply with standards under the Basel III framework as adopted by the BSP since 2014. In February, the BSP likewise imposed on standalone thrift and rural banks the Basel III requirements on capital adequacy.

The BSP requires banks to have a minimum CCB of 2.5% and LCR — which mandates big banks to hold high-quality, easily convertible assets to cover potential net cash outflows over a 30-day period — of 100%.

Meanwhile, lenders are also required to have a minimum capital adequacy ratio of 10% and a common equity Tier 1 (CET1) ratio of 7.5%, higher than the 8% and the 4.5% set under the Basel III framework. Banks are likewise mandated to maintain a net stable funding ratio (NSFR) — a measure of the ability of a bank to fund its liquidity needs over one year — of 100% on both solo and consolidated bases, as well as a countercyclical capital buffer set at a maximum of 0% to 2.5%.

The BSP memo said given the current situation, lenders that will draw down their minimum CCB requirement “will not be considered in breach of the Basel III risk-based capital adequacy framework.”

The CCB is computed in excess of the minimum CET1 ratio requirement of 6%.

“A covered bank/QB that utilizes its capital conservation buffer is restricted from making distributions in the form of dividends, profit remittance in the case of a foreign bank branch, share buybacks, discretionary payments on other Tier 1 capital instruments, or discretionary bonus payments to staff…,” the memorandum said.

The memorandum said the BSP is likewise relaxing the need to maintain a minimum LCR of 100% to allow banks to draw from their stock of liquid assets to meet demand for cash amid the current situation.

“A covered bank/QB may draw on its stock of liquid assets to meet liquidity demands to respond to the current circumstances, even if this may cause the covered bank/QB to maintain an LCR that is below the 100 percent minimum requirement,” it said.

“A covered bank/QB that has recorded a shortfall in the stock of its High-Quality Liquid Assets for three banking days within any two-week rolling calendar period, thereby causing the LCR to fall below the 100 percent must notify the BSP of such a breach on the banking day immediately following the occurrence of the third liquidity shortfall.”

Banks that will not be able to comply with other Basel III risk-based capital adequacy ratios and the minimum 100% NSFR due to the pandemic will be handled on a case-by-case basis, according to the BSP memo.

“A covered bank/QB will be provided by the BSP with enough time to address regulatory breaches taking into account a forward-looking assessment of macroeconomic and financial conditions of the system as a whole and their potential impact on the supervised institution,” the central bank said.

This follows earlier regulatory relief measures which include the imposition of a higher single borrower’s limit of 30% from the original 25% until September, the relaxation of maximum penalty impositions for reserve deficiencies, allowing banks to book credit losses in a staggered manner and the non-recognition of certain defaulted accounts as past due, among others.

CAPITAL SHOCKS
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said this latest initiative is a welcome relief for banks that are already feeling the impact of COVID-19 on their operations.

“It will help banks in absorbing capital shocks due to COVID-19’s economic disruption and the liquidity measure will help financial institutions with their unusual liquidity requirements during this pandemic,” Mr. Asuncion said in an e-mail.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said these buffers were specifically designed to be tapped during challenging economic conditions, which the ongoing COVID-19 outbreak falls under.

“The use of these capital and economic buffers gives banks greater leeway in extending great assistance such as more credit to their respective clients, both retail and corporate,” Mr. Ricafort said. — L.W.T. Noble

Gov’t hikes tariffs on imported oil, refined petroleum

May 5, 2020 | 12:31 am

By Adam J. Ang

PRESIDENT Rodrigo R. Duterte on Monday ordered the temporary increase in tariffs on imported crude oil and refined petroleum products, in order to fund the government’s coronavirus disease 2019 (COVID-19) relief measures.

Under Executive Order No. 113 signed on May 2, Mr. Duterte imposed 10% additional tariff on imported crude oil and refined petroleum products.

“There is an urgent need to augment the government’s resources to sufficiently finance the programs and measures to mitigate the effects of the COVID-19 situation and launch the country toward recovery and rehabilitation,” the order stated.

The higher tariffs, which were recommended by the National Economic and Development Authority (NEDA) Board on April 8, will be imposed on top of the existing Most Favored Nation (MFN) and preferential import duties on imported fuel products.

Proceeds from additional tariffs would “fund measures that address and respond to the effects of the COVID-19 situation, including social amelioration programs and such other forms of assistance for all those affected.”

Rino E. Abad, director of the Department of Energy’s (DoE) Oil Industry Management Bureau (OIMB), told BusinessWorld that the higher tariffs are not expected to affect volumes of oil imports this May as prices are already low.

“Mababa ang [oil] price ngayon at nasa 10% lang [ang] tariff of landed import cost… “compared sa binaba na ng (year-to-date) price at around P15 per liter (/L) to P16/L, napakaliit [ng] effect nito (The oil price is low and the tariff is only 10% of the landed import cost…The additional import duty has a minimal effect on gasoline prices, compared to the year-to-date price decrease at around P15/L-P16/L.),” he said in a text message.

The higher import duty may provide a “substantial revenue” for the government despite the low demand for petroleum products, according to Bureau of Customs (BoC) Assistant Commissioner Vincent Philip C. Maronilla.

“I think there is [a] basis to expect that despite the low demand [for oil], a positive duty rate applied against the projected [oil import] volume for the succeeding months will result in substantial revenue for the government,” the BoC spokesperson said in a Viber message.

The DoE-OIMB reported that oil import volumes in the first quarter of 2020 fell by as much as 460 million liters to 3.3 billion liters, compared to 3.7 billion liters recorded in the same period in 2019.

Demand for oil, along with prices, in the world market has plunged as many countries have been placed under lockdown due to the pandemic.

The modified rates of import duty will only cease to be applied once the DoE noted a breach in the trigger price following a rise in oil prices in the world market.

Republic Act No. 10863, or the Customs Modernization and Tariff Act, empowers the President to raise existing import duty rates in the interest of general welfare and national security.

Pandemic slams Asia’s factories; activity slumps to financial crisis lows

May 5, 2020 | 12:30 am

SYDNEY — Asia’s factory activity was ravaged in April, business surveys showed on Monday, and the outlook dimmed further as government restrictions on movement to contain the coronavirus outbreak froze global production and slashed demand.

A series of Purchasing Managers’ Indexes (PMIs) from IHS Markit fell deeper into contraction from March, with some diving to all-time lows and others hitting levels last seen during the 2008-2009 global financial crisis.

Similar gauges out of Europe due on Monday and later in the week are also expected to show industry conditions wallowing around record lows, reinforcing the International Monetary Fund’s warning that the global economy is headed for its biggest decline since the 1930s.

The PMI for South Korea, Asia’s fourth-largest economy and a global manufacturing powerhouse, skidded to 41.6 in April, the lowest reading since January 2009. Japan’s PMI released last week similarly fell to an 11-year low.

“The bad news is that the hit to industry in many places is unlikely to be past the worst,” Alex Holmes, Asia Economist at Capital Economics, wrote in a note.

“Global demand has slumped and we don’t think it has bottomed out yet. The latest incoming data for the US and Western Europe point to an unprecedented slump in demand. And while China’s economy has started to recover, demand there remains very weak.”

Last week, China’s official PMI showed factory activity still growing in April, albeit more slowly than March, while the private sector Caixin PMI showed a dip into contraction, although at a much gentler pace than the rest of the world. Significantly, exporters in both surveys were jolted by steep falls in orders.

While China appears to be ahead of others in emerging from the economic paralysis inflicted by the pandemic, any recovery is expected to be gradual and unlikely to fire up an immediate resurgence in global demand.

The PMI for Taiwan, a major producer of high-end technology components, fell to 42.2, its lowest since 2009 and down from an expansionary 50.4 in March.

The declines in South Korea’s and Taiwan’s PMIs showed contractions that were less severe than those seen in other economies in the region, with indicators in India, Malaysia, Indonesia and Vietnam all reporting plunges to record lows.

In India, Asia’s third-largest economy, new orders and output shrank at the steepest pace since early 2005 and factories cut jobs at the fastest rate in the survey’s history.

Capital Economics’ Mr. Holmes said while South Korea and Taiwan held up better than other Asian peers, thanks mostly to effective government policies to contain the virus, conditions have nonetheless worsened.

Official data released last week showed the coronavirus sent South Korean exports plunging in April at their sharpest pace since the global financial crisis.

South Korean tech giant Samsung Electronics Co. Ltd. last week said it expected profits to decline in the current quarter due to a slump in sales.

It said that while work-from-home orders and growth in online learning would underpin demand for memory chips, the outlook for smartphones and TVs was bleak as consumers put off discretionary spending.

The production slump is of particular concern to policy makers, who are worried about the socially destabilizing effects of massive unemployment as firms in both factory and service sectors slash headcount.

A private sector survey in Australia on Monday showed job advertisements plunging a record 53.1% in April, a decline that was almost five times larger than the previous record of 11.3% in January 2009. — Reuters

Rico Blanco assures that ‘This Too Shall Pass’

May 5, 2020 | 12:07 am

FILIPINO singer Rico Blanco has returned after a four-year hiatus with the single, “This Too Shall Pass,” a song meant to “help [people] deal with the uncertainty of the times,” according to a release.

“My efforts are little in light of a pandemic like this. As big as my imagination is for this song, I also feel that it’s not enough. But it’s what I can do and contribute as a musician,” Mr. Blanco said in the release.

Rico Blanco is best known for having been the frontman of the rock band Rivermaya until 2007, when he embarked on a solo music career. His last solo single was “Wag Mong Aminin” in 2016.

The new pop tune is said to be Mr. Blanco’s most personal to date as it was written “from a place of discomfort and fear, witnessing how the much louder tremor of pandemic anxiety instantly changed our lives and left us with little time to mourn and move forward,” the release said.

The song took two weeks to finish and it was such a struggle that he admitted that he almost didn’t finish it.

“This song is real, inwards and also outwards; it’s something that I really want to tell every single person. I wasn’t able to give a message to the frontliners, and I feel very guilty about this. I needed to finish this, and I want them to hear this. I know each one of us is going through something. I wrote this song as my way to reach out,” he said, noting that that music, aside from being entertainment, also carries “the resilience of the human spirit.”

“This Too Shall Pass” combines European techno, hip-hop beats, Asian riffs, African chanting, sounds of a Pinoy fiesta, and Mr. Blanco’s nieces laughing.

“‘This Too Shall Pass’ is ambitious in scope and sound design, but its heart is for the people who need light and love,” the release said.

“Music is important — we all know this. But never more so than when we are faced with uncertainty, because it is then that the power of music becomes unquantifiable, almost limitless. Music can make you feel you’re not alone. Music can save you from despair. And so it is with a song like ‘This Too Shall Pass.’ It is so relevant to the times that it becomes a declaration, a prayer, a mantra — all rolled into one,” Roslyn Pineda, Sony Music Philippines’ general manager and vice-president for business development in Asia, said.

“This Shall Pass” is available in all digital platforms worldwide. A music video is in the works. — ZBC

DoJ, Senate back ABS-CBN operation

May 5, 2020 | 12:07 am

By Vann Marlo M. Villegas and Charmaine A. Tadalan, Reporters

THE Department of Justice (DoJ) stood by its position that ABS-CBN Corp. can still operate while the broadcasting giant’s application for franchise renewal is pending with the Congress.

Justice Secretary Menardo I. Guevarra said there is no law that governs the rights and obligations of an entity that has already been granted a legislative franchise and has operated for years but whose application for renewal is pending.

“In several similar situations in the past, congress allowed the status quo, without urging the NTC (National Telecommunications Commission) to issue a temporary or provisional permit, in consideration of the equities of the situation,” he told reporters in a mobile-phone message.

Solicitor General Jose C. Calida on Sunday warned the NTC that it cannot grant provisional authority to ABS-CBN Corp. and its unit ABS-CBN Convergence, Inc. to operate once their legislative franchises expire.

ABS-CBN Corp.’s franchise expired on May 4 while its unit’s franchise expired on March 17.

Mr. Calida said the NTC can only issue the provisional authority to a broadcasting company for its operation once it secured the Congress’ nod on its franchise and while awaiting approval of the application for a certificate of public convenience before the commission.

Mr. Guevarra also said one of the Supreme Court decisions cited by Mr. Calida — wherein the high court declared invalid the 1991 DoJ opinion which states that the NTC may issue a permit or authorization without legislative franchise — does not apply because the company in the case did not have an original franchise.

“In the present case, the subject company had already been granted a franchise and a license to operate, albeit subject to further deliberations for its renewal,” he said.

Mr. Guevarra in February said in a Senate hearing that the Congress may authorize the NTC to issue a provisional authority to ABS-CBN while it awaits franchise renewal.

House Speaker Alan Peter S. Cayetano and Palawan Representative Franz E. Alvarez, chair of the House Committee on Legislative Franchises, sent a letter to the NTC, asking it to grant provisional authority to ABS-CBN on May 4 until the Congress concludes the renewal proceedings.

SENATE INSISTS NTC CAN ISSUE PROVISIONAL AUTHORITY
Senate Majority Leader Juan Miguel F. Zubiri said the NTC can grant ABS-CBN Corp. provisional authority to continue operation as its franchise expired on Monday.

“There is already precedence wherein the NTC has issued provisional authority for franchises that have expired but pending in Congress,” Mr. Zubiri said in a virtual briefing, Monday.

“There is no reason why the NTC should not grant the temporary authority to ABS-CBN,” he added.

The Senate on March 12 turned over to the NTC a resolution, allowing the issuance of a temporary permit to the media network, while its franchise is pending in both Houses.

Mr. Zubiri said the chamber would remind the NTC to allow ABS-CBN’s operation, as discussed in the resolution.

“Definitely, we’ll remind the NTC on their commitment to issue a provisional authority,” he said, noting that the network will not need to suspend its operation as it awaits authorization.

The House Committee on Legislative Franchises started tackling the franchise on February 24, the same day the Senate opened its inquiry on allegations against ABS-CBN.

Mr. Zubiri said Mr. Calida may question the granting of temporary permit to ABS-CBN in the appropriate court, but maintained his position based on his experience as former House legislative franchises committee chairman.

Further, Mr. Zubiri flagged moves to shut down ABS-CBN in the middle of the coronavirus disease 2019 (COVID-19) pandemic as “highly irregular” and “questionable.”

“At this point in time na (of a) pandemic, kailangan natin ng (we need) information dissemination, kailangan natin ng (we need) information gathering, we’ll shut down a major network, which, for me, is highly irregular at this point in time and questionable,” he said.

NTC MEMORANDUM ALLOWS OPERATION
The NTC has said that it will issue the provisional authority to ABS-CBN. In March, the NTC issued a memorandum allowing telecommunication companies, including ABS-CBN Convergence, whose franchise had expired, to operate during the Luzon-wide quarantine period.

Mr. Calida also warned then that NTC commissioners may face anti-graft and corrupt practices complaints if they issue the provisional authority.

The Office of the Solicitor General in February filed a quo warranto petition before the Supreme Court for the cancellation of their legislative franchises, citing “highly abusive practices” and law violations.

Presidential Spokesperson Harry L. Roque on Monday said that President Rodrigo R. Duterte would not interfere with the decision of the NTC on the operations of ABS-CBN.

“Itong bagay pong ito is a matter that must be dealt with by the NTC as a quasi-judicial body at hihintayin po natin ang sagot ng National Telecommunications Commission. At ang Presidente naman po, ipapatupad po kung ano ang magiging desisyon ng [NTC],” he said in a briefing.

(This is a matter that must be dealt with by the NTC as a quasi-judicial body and we are waiting for its answer. And the President will implement whatever will be the decision of the [NTC].)

Final Pitch gets a COVID-19 bent in new season

May 5, 2020 | 12:06 am

FOR its sixth season, business reality TV show The Final Pitch, is looking for “heroes” — non-profit organizations, start-ups, and innovators with “new solutions to address COVID-19 challenges” and need funding.

“We are hopeful as we introduce this relevant and timely format for The Final Pitch: Heroes Edition. We have seen in our past five seasons the exponential effects of matching the right ideas with the right investments. We hope that through this season, we will identify the best high-impact advocacies and solutions to help turn around the economic and social ramifications of the COVID-19 crisis for the sake of our kababayans (countrymen),” John Aguilar, the show’s host and creator, said in a press release.

Since starting the show three years ago, the show — a hybrid of The Apprentice and Shark Tank — focused on start-ups that need funding from venture capitalists or investors who also serve as judges, while mentoring start-ups on how to refine their pitches and business models.

The fifth season was a departure from the regular format in that it focused on real estate. The sixth season meanwhile, will focus on pitches “from nonprofits for donations and grants, and entrepreneurs for new normal investment proposals.”

The pitches for donations and grants should come from reputable organizations that have specific beneficiary communities like medical frontliners, farmers, indigent communities, and displaced workers.

Pitches for investments should come from entrepreneurs, inventors, and startups that provide solutions and technologies for the country’s transition to the “new normal,” according to the release.

“Sample target sectors include retail, transport, and tourism. Likewise, ideas for employment of both locals and displaced OFWs, and business solutions for MSMEs (micro-, small-, and medium enterprises) are also welcome,” it explained.

The Final Pitch is also asking interested investors and conglomerates “to play a crucial role in the selection process, refinement of proposals, and financial backing of qualified solutions and causes throughout the show.”

“The core of the show is to make a difference through entrepreneurship. We think this season is a chance for us to prove that further, and to show how businesses and innovative entrepreneurs can provide solutions and opportunities during and after a crisis,” Mr. Aguilar said.

The show is scheduled to start production by the third quarter of the year and will “observe safety protocols and social distancing” and limit direct interaction using technology. The live pitches will be aired online on the show’s social media pages and will then be re-edited and aired on CNN Philippines.

Interested organizations or companies can submit their online entries and one-minute pitch videos via TheFinalPitch.ph/application. Interested investors and companies can reach the show via submit@TheFinalPitch.ph or contact 0917-813-6684. For more information, visit www.thefinalpitch.ph and follow its social media accounts. — ZBC

NTC mum on provisional authority to media company

May 5, 2020 | 12:06 am

THE legislative franchise of ABS-CBN Corp. expired on Monday with the National Telecommunications Commission (NTC) silent on the House of Representatives’ instruction to grant the broadcasting company a provisional authority to operate until the Congress decides on its franchise.

But other sectors have shared their view. In a phone interview, lawyer Stanley Kristoffer V. Cabrera VI, who serves as legal counsel for the Federation of International Cable Television and Telecommunications Association of the Philippines (FICTAP), said: “Kung nakalagay doon sa legislative franchise mo that there is a certain period accorded to you at mag-expire sya at a certain period, so expired sya pag natapos ang period na ‘yun. Walang ambiguity doon.”

(If your legislative franchise says it expires at a certain period, then it is expired. There’s no ambiguity.)

He also said that the ABS-CBN’s legislative franchise does not state “it expires after 25 years unless there is a bill filed” seeking its renewal.

The lawyer said ABS-CBN can still operate its TV and radio programs being aired via Channel 2 and DZMM through Sky Cable or other platforms such as Facebook and the network’s website.

“Kung may iba silang streaming model, pwede pa rin, operational pa rin sila. Halimbawa ‘yung news nila dumaan sa Sky Cable o sa ANC, okay ‘yun walang problema doon. Pero ‘yung broadcasting, technically wala nang franchise ‘yun,” he said.

(If they have other streaming models, those can remain operational. For instance, their news via Sky Cable or ANC will not have any problem. But technically, broadcasting has no franchise.)

House Committee on Legislative Franchises Chairperson Rep. Franz E. Alvarez of the 1^st District of Palawan reiterated that his committee had “enjoined” the NTC to allow the media network to operate “until such time that the House of Representatives makes a decision on its application.”

“This will give Congress sufficient time to assess the qualifications of the applicant and make a complete review of the positions of the different stakeholders,” he added.

He said Congress should “be allowed the courtesy to complete the exercise of its power.”

The lawmaker also believes that “there is no reason for ABS-CBN to discontinue or stop its operations.”

Vice-Chairperson Rep. Antonio T. Albano of the 1^st District of Isabela said in a separate statement: “I see no reason for NTC to close down ABS-CBN. In fact, it is more important now than ever, for media like ABS-CBN who has a far reaching network, to be open during this pandemic. ABS-CBN provides much needed information that government has been giving to reach everyone and keep us abreast on vital information that can spell the difference in saving lives and helping our country as we speak!”

“The good Speaker and I, with the whole Congress, again reiterate our call to NTC to give a provisional authority as we will deliberate soon the merits of granting or canceling the ABS-CBN franchise,” he added.

Solicitor General Jose C. Calida said over the weekend that the NTC cannot grant a provisional authority to ABS-CBN and its unit without their legislative franchises.

He said the NTC can only issue a provisional authority to operate to a broadcasting company if it is given a franchise by the Congress and is awaiting approval of its application for a certificate of public convenience (CPC) before the NTC.

His stand is contrary to what Justice Secretary Menardo I. Guevarra said at a Senate hearing in February that the Congress may authorize the NTC to issue a provisional authority to ABS-CBN pending the renewal proceedings of its franchise with lawmakers.

Mr. Calida said the letter from the House of Representatives and the Senate Resolution No. 344 only express their sentiments and do not grant power to the NTC, citing a Supreme Court decision.

The NTC has issued a memorandum order allowing ABS-CBN Convergence, Inc., whose franchise had expired on March 17, 2020, to continue to operate during the Luzon-wide quarantine period.

The NTC previously declared that it would issue a provisional authority, consistent with Senate Resolution No. 40 adopted on March 4, 2020, and a letter to the NTC dated Feb. 26, 2020 from the House Committee on Legislative Franchises. — Arjay L. Balinbin

WFH during the ECQ: JoyRide’s Noli Eala

May 5, 2020 | 12:05 am

RUNNING a business during the coronavirus lockdown requires a great deal of attention and discipline. For Jose Emmanuel “Noli” M. Eala, vice-president for corporate affairs at JoyRide (We Move Things Philippines, Inc.), a work-from-home business leader can be effective if he knows how to keep his focus on the specifics of his work amid all the distractions in his environment.

In this interview, which took place over the phone on April 25, Mr. Eala talked about the importance of shifting our minds from family mode to work mode when working from home.

He also discussed how telecommuting can be economical for people and how this setup can help ease traffic in the Philippine capital.

The interview was lightly edited for clarity.

WHAT IS YOUR PREFERRED ONLINE MEETING METHOD?
What we use is Zoom. We find it more convenient. It’s also clearer, faster, and simpler, and it also allows us to have multiple parties included in the meeting. We use Zoom to meet with our executive board. We also use it, a couple of times now, to meet with some foreign consultants, and also for our general management team meetings.

PLEASE DESCRIBE YOUR HOME OFFICE
I have an attic in my house, so I have this little corner there where I have my computer, printer, work desk, and books. Also, the Wi-Fi is a little stronger in the attic so that’s why I prefer to use it there, and it’s quieter there as well.

WHAT TIME DO YOU START YOUR WORKDAY NOW COMPARED TO BACK WHEN YOU ACTUALLY WENT TO THE OFFICE
I start a little bit later now. I suppose that people expect you to be “at home,” so you can see me not really rushing to get to meetings, unlike before when we would usually have breakfast meetings. Now, I usually begin working at around 9:30 a.m. or 10 a.m., and checking e-mails usually comes first. I also do all the reading around that time. If we have a scheduled Zoom meeting, we usually conduct it before lunch, around 11. Before the lockdown, I would usually be out of the house by 7:30 a.m.

HOW CAN BUSINESS LEADERS MANAGE THEIR TIME EFFECTIVELY?
I think we have to be more conscious about our work hours now because there’s more need to be focused considering that we are just at home. I think that’s something that I have kept in mind otherwise I will lose my attention to details and a particular structure of my work life.

Because you are at home, usually you see a lot of other things that you can do in the house that are not work-related. Hence, we should be more focused, and there’s a lot more need to pay attention to details, otherwise you can be very loose in the way you treat things at work.

DO YOU STILL TAKE BREAKS?
Definitely. I think that’s where the focus has to come in because usually at work, when you go to your office, it’s all work-related; but now you’re at home and you’re in family mode all the time, there may be a tendency to attend to other things that are not work-related even during a supposedly working hour. Yes, I do take breaks and that usually means preparing meals as well as helping out in the house.

DO YOU STILL DRESS UP FOR WORK?
Unfortunately no. I don’t dress up for work, but I don’t stay in my pajamas. What I do whenever there’s a Zoom meeting is that I’d at least be in a more acceptable outfit, not necessarily shorts, so I’m still changing to either jogging pants or even a pair of jeans.

WHAT IS THE MOST IMPORTANT LESSON YOU HAVE LEARNED FROM WORKING AT HOME?
First, be adaptable. There are many things in our age already that we are very set on, like we are used to waking up at this time, having coffee, and then leaving at a particular time to be at the office, so I think there is a need to be adaptable under these circumstances. Secondly, there must be some kind of order always in your life — balance. Now that we are at home, we are forced to get to that balance because when you are not at home, you devote a lot of your time to work; but now you get to see that there are many other things that you can do and still be able to be productive.

HOW DO YOU DEAL WITH DISTRACTIONS AT HOME?
You can’t help it. I have kids who are still in their teens, so I can’t help it. Sometimes in my meetings, there could be some background noise. Other than that, they know that I am actually in a meeting. I in fact involve them in some of the work that I do so they can see what is being done. Sometimes, there is a delivery that happens and you have to be called, etc. So yeah, there are distractions. But most of the time, I am able to work through them.

IS THERE ANYTHING YOU WILL CONTINUE EVEN AFTER THE LOCKDOWN PERIOD?
The best thing about working from home is that there’s no traffic, so immediately you are productive. Also, it is very economical for people. You don’t have to be using up a lot of clothes, you don’t have to use up gas, and you don’t have to waste time in traffic, so it’s very economical. I think this quarantine has taught many of us that, perhaps, to ease traffic in Metro Manila, it might be acceptable to have an alteration of our work schedule, meaning there could be a part of the week when everyone just stays home and works from home because it is working, and I think it is something that should be socially and economically studied so that we can further advance this practice. — Arjay L. Balinbin

Business group calls for more farming aid

May 5, 2020 | 12:05 am

By Jenina P. Ibañez, Reporter

THE Philippine Chamber of Commerce and Industry (PCCI) is calling for more funding for the agri-fishery supply chain among the government’s proposed fiscal stimulus measures after logistics gaps during the lockdown hurt farming income.

PCCI in a statement on Monday said that it supports the proposed Philippine Economic Stimulus Act (PESA), which will inject P1.3-P1.4 trillion into the economy from 2020 to 2022 to help businesses recover from the effects of the coronavirus disease 2019 (COVID-19).

The funding includes interest-free loans for micro, small, and medium-sized enterprises (MSME), compensation for paid sick leaves for COVID-19 patients, and wage subsidies. Agriculture and fisheries have a P10-billion loan allocation.

PCCI is urging the government for increased funds for agri-fishery producers to cover loans, guarantees, and grants for inputs such as seeds, fertilizer, crop protectants, feeds, irrigation and machinery, research and development and access to markets.

The group said the funding should also cover food processing, canning, packaging, marketing, and logistics to address supply chain gaps.

PCCI President Benedicto V. Yujuico said food producers lost significant income because of logistics constraints during the enhanced community quarantine (ECQ).

“Highly perishable produce have found it difficult to move their way into markets such that they have to be thrown away. The downstream industries such as food processing, retailing and restaurants are similarly impacted having to operate only partially, if at all,” he said.

Mr. Yujuico said agri-fishery producers and related enterprises should be given grants equivalent to what is needed to achieve food sufficiency and security, as well as countryside development.

“The sector has been neglected in the past and it is only now, under crisis, that the sector has been put in the spotlight for its importance in feeding our people and reviving our economy,” he said.

PCCI also said that it appreciates interest-free loans from state banks, but added that implementing rules and regulations from the Finance department and the central bank should provide more flexibility for MSMEs to benefit.

Mr. Yujuico added that the public transportation sector must also be offered subsidies.

“The operation of taxis, transport network vehicle services (TNVS) and public utility vehicles (PUVs) have altogether stopped under the ECQ. Once we graduate to the GCQ (general community quarantine), they can operate but below capacity because of physical distancing and limited workforce. There must be a means to subsidize them to ensure that they will continue to operate and service those who will go back to work,” he said.

Meanwhile, business groups have also expressed support for the recent guidelines from the Trade and Labor departments for workplace health and safety measures for businesses that are allowed to operate.

The Joint Foreign Chambers of Commerce of the Philippines (JFC) Senior Adviser John D. Forbes in a mobile message on Sunday said it is in the interest of firms to self-enforce the guidelines.

He said the guidelines work as a better approach than the House Bill 6623 that implements physical distancing norms.

“Guidelines can be changed to suit the circumstances as employers adjust to the post-pandemic environment,” he said.

Makati Business Club Executive Director Francisco Alcuaz Jr. in a mobile message said the guidelines balance having enough detail and leaving room for companies “to comply within their individual conditions”

“We trust that government and private sector will refine these guidelines as the science develops and feedback is received,” he said.

He added that there might be challenges in acquiring the test kits, alcohol, and the necessary personal protective equipment, but that they trust that the government, suppliers, and companies are working to obtain the supply.

Eraserheads reunion ends Smart Music Live online concerts

May 5, 2020 | 12:04 am

AFTER eight weeks of online concerts, Smart Music Live is ending its series with a mini Eraserheads reunion featuring Buddy Zabala and Raymund Marasigan on May 11, 5 p.m., at the Smart Communication Facebook page.

The online concert series started in March to entertain the public and to raise funds for COVID-19 frontliners. The show has so far featured Original Pilipino Music (OPM) artists like 6Cyclemind, Imago, Moonstar88, Pedicab, Gracenote, and Banda ni Kleggy.

On Wednesday, the show will feature Mr. Marasigan in the Soup of the Week podcast at 10 a.m. while Eunice Jorge of Gracenote will be hosting the Piano Show on Thursday, 10 p.m.

Buddy Zabala and Raymund Marasigan were both part of the Filipino rock band Eraserheads, best known for songs such as “Ang Huling El Bimbo” and “Pare Ko.” After the band’s disbandment in 2002, Mr. Zabala became the bassist for the bands Moonstar88 and Hilera while Mr. Marasigan became the frontman of Sandwich and keyboardist of Pedicab.

Those who want to help the cause by donating can do so by texting DONATE to 3456. The donations will be used to aid families of frontline health workers, checkpoint officers, emergency response teams, and communities in need during quarantine. The platform accepts donations until July 16. — ZBC

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