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Simplifying the Bayanihan to Heal as One Act

By Aliyya Sawadjaan
Features Writer, The Philippine STAR

On March 16, President Rodrigo R. Duterte declared a state of calamity throughout the country and imposed the Enhanced Community Quarantine (ECQ) in Luzon after the number of confirmed cases of coronavirus disease 2019 (COVID-19) increased.

Since the declaration, the number has continued to rise while businesses have stalled, disrupting economic activities and affecting the livelihood of Filipinos.

On March 25, the President signed into law the Bayanihan to Heal as One Act (RA 11469), which is valid for three months unless extended by Congress. For the better understanding of the new law, we should dissect each of the provisions to see how this will be enacted by the officials.

Special powers for the President

Under Section 4 of RA 11469, the law grants the President 30 special powers to address the COVID-19 outbreak in the country:

1. Adopt and implement these measures to prevent further spread of the coronavirus, following the World Health Organization (WHO) guidelines;

2. Expedite and streamline the accreditation of testing kits and facilitate the testing of PUIs and PUMs by public and private hospitals, as well as the immediate isolation and treatment of patients;

3. Ensure that all local government units (LGUs) are acting according to the regulations and directives issued by the national government while implementing the standards of the community quarantine to their respective locales. The LGUs are still allowed to exercise their autonomy in situations not defined by the national government;

4. The authority to give 18 million low-income families P5,000 to P8,000 a month in emergency cash aid — depending on the prevailing minimum wage in the region— for two months;

5. Give health workers a special risk allowance on top of their regular hazard pay;

6. Direct PhilHealth to shoulder all medical costs of workers exposed to the coronavirus for the duration of the emergency;

7. Mandate that public and private health workers who contract the virus will be given P100,000, and P1 million for the families of health workers who succumbed to the virus while in the line of duty;

8. Take over private medical facilities;

9. Discontinue appropriated programs or activities of agencies of the executive branch — including government-owned and controlled corporations — to save money. The savings will then be allocated for support operations and response measures in the fight against COVID-19;

10. Enforce protective measures against hoarding and profiteering of commodities such as food, fuel, medicine, and medical supplies;

11. Ensure that donation, acceptance, and distribution of health products are not delayed;

12. Secure goods such as protective laboratory and medical equipment, medical supplies, tools, testing kits, facilities and venues, and others in an efficient manner;

13. Partner with the Philippine Red Cross as the primary humanitarian agency;

14. Engage temporary Human Resources for Health (HRH) to complement or supplement the current workforce in hospitals and other facilities;

15. Ensure the availability of credit to the productive sectors of the economy by lowering the lending interest rates and reserve requirements of lending institutions;

16. Ease up grant incentives for the manufacture or importation of much-needed equipment or supplies, including medical equipment and supplies;

17. Ensure the availability of essential goods through measures that will reduce interference to the supply chain;

18. Require businesses to prioritize and accept contracts for services and materials necessary to promote the law;

19. Regulate and limit the operation of land, sea and air transportation, private or public;

20. Regulate traffic on all roads, streets, bridges, et al;

21. Continue to authorize alternative working arrangements for employees and workers in the executive branch, and if necessary, other independent branches of government and the private sector;

22. Regulate the distribution and use of energy, fuel, and water, and ensure sufficient supply of these;

23. Use unutilized funds to fight against the coronavirus. Any unutilized funds shall be considered abandoned during the State of Emergency;

24. Authorize to allocate funds — including unutilized or unreleased subsidiaries held by GOCCs — to address the COVID-19 emergency;

25. Move the deadline and timeline for the submission and filing of documents, taxes, fees, and others while in community quarantine;

26. Direct banks and other financial institutions — including GSIS, SSS and Pag-IBIG Fund — to implement a 30-day grace period for payments of loans and credit card bills;

27. Provide a 30-day grace period on residential rents within the period of the ECQ without incurring interests, penalties, et al;

28. Implement an expanded PantawidPamilya Pilipino Program to include persons working in informal economy (self-employed, construction, etc.) and those who are not recipients of the current PantawidPamilya Pilipino Program;

29. Lift the 30-percent cap on the amount appropriated for the quick response fund; and

30. Undertake other reasonable and necessary measures to carry out the law subject to the constitution.

Reporting to Congress and penalties for violators

Under Sec. 5 of the law, the President is required to submit a weekly report to Congress every Monday. The report will contain updates of actions that have been done, as well as the amount of funds used and for what purpose. For this particular section, the Congress will create a Joint Congressional Oversight Committee — consisting of four members appointed by the senate president and house speaker — to determine if such actions were done within the restrictions of the law.

Sec. 6 of the Bayanihan to Heal as One Act lists down the penalties and violationsof the law, including imprisonment of two months or a fine of P10,000 to P1 million or both.

Violators of these law include LGU officials disobeying national directives; owners of privately-owned hospitals and health facilities who do not comply to the order; those who hoard goods such as medicine, hygiene, and sanitation products and later profit from these at high prices; those who refuse to prioritize and accept contracts for materials and services needed to combat the coronavirus; those who refuse to give the 30-day grace period as per Sec. 4 of the law; groups or individuals who spread fake news and information on COVID-19 or take advantage of the current crisis, causing panic and chaos; those who fail to follow the limitations set for transportation sectors; and those who obstruct roads, streets, and bridges.

The President delivered his first report last March 30, and the following have been done since the effectivity of the Bayanihanto Heal as One Act:

The Department of Foreign Affairs has maintained close links with WHO and foreign governments to ensure timely exchanges of crucial information, as well as processed and assisted in the facilitation of donations from four foreign governments, an international organization, 12 private companies, individuals, and civil society organizations.

The Department of Public Works and Highways Task Force has prepared for the conversions of 110 evacuation centers and is looking at the conversion of public buildings and open spaces to be used as treatment facilities and isolation centers. The agency is also exploring the installation of prototype tents for the same purpose.

The Department of Science and Technology –Philippine Textile Research Institute is overseeing the production of 500,000 reusable, washable, and reusable facial masks as protective face wear, in cooperation with the local government of Taytay and the private sector.

In addition, two of the 30 special powers will be reserved and will only be used when absolutely necessary. These are the powers to take over and direct the operations of privately-owned hospitals, and to require businesses to prioritize contracts for materials and services necessary for the crisis.

For more #COVID19WATCH contents, visit www.bworldonline.com/covid19watch.

The Coronavirus Pandemic: Is the Philippine growth narrative drawing to a close?

By Bjorn Biel M. Beltran
Special Features Assistant Editor, BusinessWorld

As if to make a grim situation worse, the coronavirus disease 2019 (COVID-19) pandemic that has gripped the world in a deadly vice brought about an economic standstill.

With many of the globe’s major cities on lockdown or under quarantine measures, businesses ground to a halt. Fewer cars on the road mean a sharp drop in the price of oil, while retailers and manufacturers face bankruptcy due to the ceasing of operations.

In fact, the International Monetary Fund (IMF) has announced the start of a global economic recession, or a period of economic decline where output falls for two successive quarters, pointing out the long-term ramifications of the sudden halt in the world’s economic activity such as joblessness.

“It is now clear that we have entered a recession – as bad as or worse than in 2009,” IMF Managing Director Kristalina Georgieva said, with the hope that there could be a sizeable rebound if countries can sufficiently contain the virus.

“This is a very big crisis and it’s not going to be sorted out without a very massive deployment of resources. The length and depth of this recession depend on two things — containing the virus and having an effective, coordinated response to the crisis,” she said.

In the Philippines, the National Economic and Development Authority has already gone ahead to slash the country’s growth projections for the year, with gross domestic product (GDP) expected to fall between -0.6% and 4.3% for 2020. This is a far cry from the government’s previous target of 6.5-7.5% prior to the crisis.

In its Regional Economic Update report for April titled “East Asia and Pacific in the Time of COVID-19”, the World Bank gave a 3% forecast for the country’s GDP growth this year, down from the 6.1% projection it gave in January.

That growth is seen to pick up up to 6.2% next year, maintained from the January projection, and will accelerate to 6.4% in 2022, higher than the previous 6.2% forecast.

These projections reflect the multilateral lender’s baseline scenario. In its lower case forecasts, the World Bank sees the economy contracting by 0.5% this year but recovering to a 4.1% growth next year.

Due to the month-long Luzon lockdown, the World Bank expects a sharp decline in domestic consumption in the first semester, which could be further dampened by the slower inflow of remittances, delayed implementation of the government’s infrastructure program, postponed investments from the private sector, as well as a negative impact on exports due to travel restrictions and disruptions in global supply chains

The World Bank said its baseline forecast of three percent GDP growth this year assumes that economic activity in the country will resume in the third quarter. Risks to this forecast, which could result in a contraction of as much as 0.5% in its lower case scenario, are “a rapid surge in confirmed cases resulting in a prolonged community quarantine, lengthier disruptions to government and business activities, loss of incomes, and a protracted weakening of the public health system.”

“In this case, economic growth could contract in 2020 driven by a drastic slowdown in domestic consumption and investment, with echo effects into 2021. External risks could derive from a prolonged containment of the virus globally, leading to a global recession which will impact the Philippines through manufacturing, trade, tourism, and remittance channels,” the World Bank said.

Meanwhile, BangkoSentral ng Pilipinas Governor Benjamin E. Diokno recently told reporters that the situation would likely result in a recession, with the second and third quarters of the year seeing contractions in GDP growth.

“The second quarter will probably be negative, the third quarter, maybe around negative also and then we start picking up by the fourth quarter,” he said.

Getting the country to get back on track relies on swift and decisive measures that must be undertaken by the government and its economic regulators not only to contain and control the coronavirus situation, but also to stimulate the country’s economy.

Currently, the central bank has cut its benchmark rate by 50 basis points (bps) and eased rules for lenders. It is also buying P300 billion in government securities. The Monetary Board also cut the reserve requirement ratio for universal and commercial lenders by 200 bps to 12%.

The policy-setting body has authorized Mr. Diokno to slash the ratio by as much as 400 bps this year amid the pandemic.

“We’ve done a lot on the monetary side,” he said. The government needs more fiscal measures “than what is done so far.”

Such measures, as well as the Bayanihan to Heal as One Act, which authorized the President to realign or reallocate as much as P275 billion in national budget and off-budget outlays to the government’s emergency subsidy program, aim to support economic activity in the short term, providing relief to some 18 million Filipino households most affected by the pandemic.

However, as of April 2, there are 2,633 confirmed cases of COVID-19 all over the country, with the number expected to see a huge surge as more testings are completed. One hundred seven Filipinos have died due to the virus, and there is no end yet in sight. Whether the Philippine growth narrative can endure the storm brought about by the pandemic, only time can tell.

For more #COVID19WATCH contents, visit www.bworldonline.com/covid19watch.

The rise of remote work during COVID-19 season

By Adrian Paul B. Conoza
Special Features Writer, BusinessWorld

Since the onset of the enhanced community quarantine (ECQ) in Luzon to contain the spread of the coronavirus disease 2019 (COVID-19), a large part of the country’s workforce has shifted to a new mode of doing work. Under the work-from-home setting, professionals have been performing their tasks at the comforts of their home offices, while some have created makeshift workspaces inside their houses. Because being physically in the same office or room is currently impossible, teams have taken advantage of technology to interact and collaborate via instant messaging applications, video conferences, file-sharing platforms, and other organization tools.

Offices have suddenly undergone what is perceived to be the greatest experiment of work that the global workplace has ever experienced. While telecommuting has already been a trend being adopted by many companies recently, the threatening spread of COVID-19 further brings this mode of work into greater consideration by more organizations.

Before remote work was enforced by the government for the duration of the ECQ, telecommuting has been promoted when President Rodrigo R. Duterte signed into law Republic Act No. 11165, or “An Act Institutionalizing Telecommuting as an Alternative Work Arrangement for Employees in the Private Sector” on December 20, 2018. It defines telecommuting as “a work arrangement that allows an employee in the private sector to work from an alternative workplace with the use of telecommunication and/or computer technologies.”

The law states that an employer may offer a telecommuting program to its employees on a voluntary basis. The terms and conditions shall not be less than the minimum labor standards set by law, and these shall include compensable work hours, minimum number of work hours, overtime, rest days, and entitlement to leave benefits.

Impact of remote work

With remote work being adopted by offices during this global pandemic, its advantages are being observed and experienced by both employers and employees.

The foremost benefit that can be seen is flexibility. With the flexible schedule remote work offers, it has been proven that productivity of employees increases and they are able to meet their deliverables more effectively. On the side of companies, remote work offers potential cost savings as well as a reduced need for valuable office space, lower utilities consumption, and similar reduced expenses.

In a podcast on rebalancing the work-life experience, Despina Katsikakis, head of Occupier Business Performance; and Dominic Brown, head of Insight & Analysis, Asia Pacific of global real estate services firm Cushman & Wakefield agreed that increased flexibility underpins the positive workplace experience of remote workers.

“Technology and flexibility have impacted the workplace so that work was no longer somewhere employees needed to go to but something they could in fact do from anywhere,” Ms. Katsikakis said.

Citing data analyzed from companies in China that shifted to remote work upon the onslaught of the coronavirus, Mr. Brown observed that there was a rapid transition in executing work while confined at their homes, as evident in online meetings, presentations, and training courses.

“As a result of this experience, we’re seeing more companies now paying more attention to the remote working platforms,” Mr. Brown added. “Seventy percent are thinking about adopting a stronger remote working platform, and 81% of companies surveyed… are likely to add collaborative technology to their platform.”

Critical factors

Nevertheless, organizations have to address issues regarding remote work such as ensuring adequate Internet connection in homes, setting guidelines in monitoring the work of telecommuting employees, and addressing data protection given possible data breaches and security threats.

Furthermore, Ms. Katsikakis and Mr. Brown shared that there are factors that are critical in transitioning to widespread remote working. Technology is one of the factors and is regarded as an absolute key to successful remote collaboration.

As Ms. Katsikasis pointed out, successful collaboration can take place when employees have the technology for effective instant messaging, video conferencing, and file sharing, coupled with maintaining proper associated bandwidth and using tools to train in using remote technologies.

The ability to focus and planning time to avoid distractions are also critical for remote working, especially considering that professionals are no longer working from home on their own. “One of the big aspects is going to be how we actually coach people to avoid distractions because at the moment we are sharing space with a number of family members, pets, different time schedules,” Ms. Katsikakis added.

The ability to renew throughout the day and feel refreshed physically is likewise critical in the context of working at home. This factor, in fact, is found to be the most consistently underperforming attribute, according to the data analyzed by the two researchers.

“Movement throughout the day is one of the most important things to keep wellness and energy levels high whilst working,” Ms. Katsikakis said, adding that while professionals naturally move around the office doing several tasks, they should give extra effort to plan for opportunities to move while confined at home.

For more #COVID19WATCH contents, visit www.bworldonline.com/covid19watch.

Caring for PUM and PUI loved ones

By Hannah T. Mallorca
Features Writer, The Philippine STAR

The coronavirus disease 2019 (COVID-19) has so far infected more than 900,000 patients globally and various measures have been implemented to contain its spread. In the Philippines, President Rodrigo R. Duterte has placed Luzon under Enhanced Community Quarantine until April 12.

On March 16, the Department of Health (DoH) released guidelines to determine if a suspected patient needs to get tested for COVID-19, classifying possibly infected individuals into Person under Monitoring (PUM) or Person under Investigation (PUI).

An individual is considered a PUM if he or she is asymptomatic but has travel history to areas with local transmission of coronavirus in the past 14 days or a history of exposure to a COVID-19 patient. Online health resource Patient UK noted that loss of smell can also be considered as an indication that someone is a PUM.

On the other hand, one is considered a PUI if he or she presents symptoms of respiratory illnesses such as cough, colds, fever above 37.5 degrees Celsius, shortness of breath or fatigue; and either has travel history to countries with local transmission of the virus in the past 14 days or history of exposure to a COVID-19 patient.

If your loved one is a PUI, immediately contact the Regional Epidemiology and Surveillance Unit (RESU) or the local surveillance officer to transport the patient to the nearest health facility. Hospitals should admit the patient in an isolation room while waiting for their test results. Elderly patients with mild symptoms and ongoing medical conditions can also be admitted for testing.

For PUM individuals and caregivers, here are the steps to help contain the virus:

– PUMs should be isolated in a well-ventilated room, preferably with a bathroom. If not possible, they should maintain a distance of at least one meter.

– Assign someone as the caretaker; he or she must be in good health condition.

– As much as possible, don’t allow family members and visitors inside the PUM’s room.

– PUMs should wear a face mask fitted tightly on the nose, mouth and chin.

Meanwhile, here are some guidelines if you are taking care of a PUM:

– Always wash your hands for 20 seconds using soap and water.

– If you don’t have soap, sanitize your hands using alcohol-based sanitizer or 70-percent isopropyl alcohol.

– Avoid touching your eyes, nose and mouth especially if you haven’t sanitized your hands.

– If possible, use a disposable face mask when taking care of the patient. Observe proper disposal techniques.

– Avoid direct contact with oral and respiratory secretions as much as possible.

– If you need to handle secretions, use disposable gloves. Wash hands before and after.

– Serve meals only up to the room door. Do not share utensils and drinks with the individual.

– Clean counters, table surfaces, doorknobs, telephones, and other bedroom furniture with household disinfectants daily.

– Clean clothes, bedsheets, towels and reusable items through handwashing or machine washing, then sun-dry.

– Dispose materials used to cover the PUM’s nose or mouth.

If the PUM develops two or more symptoms, contact RESU or the local surveillance officer to transport the patient to the nearest health facility. Family members should seek medical care if they develop symptoms as well.

As of April 2, the DoH has reported 2,633 confirmed cases in the Philippines. The total of recovered patients is at 51, while number of deaths has risen to 107.

For more #COVID19WATCH contents, visit www.bworldonline.com/covid19watch.

A call for mental health help during crisis

By Michaela Tangan
Features Writer, The Philippine STAR

In any crisis, it is common for individuals to feel stressed and worried, the Inter-Agency Standing Committee (IASC), a unique inter-agency forum for coordination, policy development and decision-making involving key UN and non-UN humanitarian partners, stated in its Guidelines on Mental Health and Psychosocial Support in Emergency Settings.

While battling the coronavirus disease 2019 (COVID-19) pandemic, affected individuals may exhibit fears of getting ill, dying, losing jobs, not being able to or get dismissed from work, being separated from loved ones due to the quarantine, and being socially excluded for being associated with the coronavirus.

It is also possible for some to avoid seeking medical help in hospitals due to the fear of getting infected while in care. Others might hesitate to attend to the needs of young ones, elders, or persons with disabilities because they feel they might infect the vulnerable.

Many might feel powerless, especially if they are separated from their family or loved ones. Loneliness, helplessness, boredom, and depression might also spike as people need to isolate themselves. Fear might also affect elderlies who have experienced previous pandemics or other similar incidents.

The US’ Centers for Disease Control and Prevention agrees that feelings of sadness, distress, worry, confusion, fear, and anger are normal during a crisis. However, one can cope with these emotions by maintaining a healthy lifestyle.

When an individual begins to feel mental health issues, proper diet and sleep, exercise, and safe social contact with people at home can help.

To lessen the stress, only get information and updates from reliable sources. It is also advised to limit or allot a healthy amount of time for checking stories about the pandemic, especially on social media. Take time, breathe deeply, meditate or stretch, especially when stress is mounting. Use extra hours of the day to do enjoyable and relaxing activities.

To manage emotions, try focusing on coping mechanisms that have been used in the past during difficult times or practice other tips advised by family, friends or health professionals.

Getting in touch, sharing concerns and connecting via call, text, chat, or other messaging channels with family and friends can also help ease stress. For other mental health concerns, seek the help of health workers (psychiatrists or psychologists), social workers, religious leaders, or other professionals who can help lessen any overwhelming feeling.

As the number of confirmed COVID-19 cases continue to increase globally and in the Philippines, this causes stronger emotions, fear or extreme episodes of anxiety, especially for those suffering from mental health issues.

To assist and give hope to people with mental health concerns, several mental health groups in the country have set up the following hotlines:

Hopeline PH

– (0918) 873-4673
– (0917) 558-4673
– (02) 8804-4673

Philippine Mental Health Association

– (0917) 565-2036
– pmhacds@gmail.com

National Center for Mental Health

– (0917) 899-USAP (8727)
– 989-USAP (8727)

In Touch: Crisis Line

– 8893-7603 or (0917) 800-1123
– (0922) 893-8944

UgatSandaLine

– m.me/contactUGATSandaLine (Messenger)
– contactUGATSandaLine@gmailcom (Skype)
– www.facebook.com/contactUGATSandaLine

Hopeline PH

https://www.facebook.com/HopelinePH/photos/a.349001682234342/822627908205048/?type=3&theater

 

Philippine Mental Health association

https://www.facebook.com/PMHAofficial/posts/2561901964137379?__xts__[0]=68.ARDliVmBoqiJ8B_bl1cry5tWOnZXv4dFjZGi-rMuhCczjfn6qMvk4EmS8-SXcJmMreoNsgPxchCpGkZImoWmLR2iPVTIz24eqqyqlnsSFOL-EiDQ_TO-nQYTmOZcZFLcauKDw0Zj1o-2RyH-uT1UTf_KbK7o-fCSLKVurixm4t-fuO6-OD7T7QGSPrzOmKr6JFNc_Ztkyz_nddqeYf5-NrC16g5Xs7B6_bmB08UKBqLnsNOs7m8YL_wi9nQ-Dt9_QCdHn7JwiW4LTXrBLr4F3LMEUM4cYmbNPqDvfL21n00IziKpgdhX6ukN2gHqt662hHfROk-vgyjYSGMtc93nPlNYuvkP&__tn__=-R

 

National Center for Mental Health

https://www.facebook.com/OfficialDOHgov/photos/a.157979910879936/3162441840433713/?type=3&theater

In Touch: Crisis Line
https://www.facebook.com/InTouchCrisisLine/

UgatSandaLine
https://www.facebook.com/UGATSandaLinePage/photos/a.160203655449129/160593348743493/?type=3&theater

For more #COVID19WATCH contents, visit www.bworldonline.com/covid19watch.

Roundup: Fighting the pandemic in Asia Pacific

By Argie C. Aguja
Senior Features Writer, The Philippine STAR

The rapid spread of coronavirus disease 2019 (COVID-19) across countries and territories has prompted the World Health Organization (WHO) to declare the pandemic as a Public Health Emergency of International Concern, urging governments worldwide to step up measures to protect its citizens. As there is still no proven and tested cure for COVID-19, governments worldwide are relying on infection prevention and control (IPC) strategies to curb the spread of the dreaded disease.

In the Asia Pacific region, a combination of different measures is being employed by authorities to slow down the trajectory of new infections and manage the treatment of existing cases. Here are the measures being enforced by some Asia Pacific nations with number of COVID-19 confirmed cases, recoveries, and deaths as of April 6, 2020.

Australia 

The Australian government will offer parents free childcare in a bid to keep 13,000 child care centers open during the coronavirus pandemic, a subsidy that will cost AU $1.6 billion over three months. 

Confirmed cases: 5,750

Recoveries: 687

Deaths: 37

 

China

In just 10 days, the Chinese government built the Huoshenshan Hospital, a large emergency specialty field hospital that is staffed by health-care workers from all over China.

Confirmed cases: 81,708

Recoveries: 77,078

Deaths: 3,331

India

On March 24, Indian Prime Minister Narendra Modi announced a countrywide 21-day lockdown and an expanded testing protocol was established to cover more symptomatic patients and high-risk individuals.

Confirmed cases: 4,288
Recoveries: 328
Deaths: 117

Indonesia

In Indonesia, government announced a shutdown of businesses, non-essential services, religious and social activities, as well as self-isolation directives and mandatory health checks.

Confirmed cases: 2,273
Recoveries: 164
Deaths: 198

Japan 

In east Asia, the Japanese government established network of specialized COVID-19 consultation centers and 0utpatient wards that is separate from the civilian hospital system. 

Confirmed cases: 3,654
Recoveries: 584
Deaths: 73

Malaysia

After a four-week Movement Control Order (MCO) was enforced by Malaysia on March 18, a $6.58-billion stimulus package was announced to soften the economic impact of the lockdown.

Confirmed cases: 3,662
Recoveries: 1,005
Deaths: 61

New Zealand 

To better respond to the pandemic, the New Zealand government introduced a four-level country-wide alert level system that is similar to the country’s existing fire warning system.

Confirmed cases: 911
Recoveries: 176
Deaths: 1

Philippines

President Rodrigo R. Duterte gained emergency powers and allocated P275 billion for social amelioration to benefit 18 million low-income families and struggling households.

Confirmed cases: 3,246
Recoveries: 64
Deaths: 152

Singapore

In Singapore, liberal testing procedures were put in place and anyone who turned positive was quickly admitted in hospitals while their contacts traced and strictly monitored.

Confirmed cases: 1,309
Recoveries: 320
Deaths: 6

South Korea

The South Korean government resorted to rapid approval of test kits and even pioneered a drive-thru testing procedure where thousands were given quick access. 

Confirmed cases: 10,284
Recoveries: 6,598
Deaths: 186

Taiwan

In Taiwan, the swift and multi-faceted approach leveraged into big data and analytics by merging the national health insurance with its immigration and customs database. 

Confirmed cases: 363
Recoveries: 54
Deaths: 5

Thailand

Thailand is the first Asian country to participate in WHO’s “Solidarity Trial,” a multi-country clinical study that is part of a rapid global search for drugs to treat COVID-19.

Confirmed cases: 2,169
Recoveries: 612
Deaths: 23

Vietnam

To curb the spread of the pandemic, Vietnam boosted the manpower of its health sector by conscripting medical students, and retired doctors and nurses to join the fight. 

Confirmed cases: 241
Recoveries: 90
Deaths: 0

As the number of global cases continue to rise, the Asia Pacific region is at the front and center in the battle against COVID-19. While a sure-win formula is yet to be determined, the most promising approach lies in the combination of not just a few, but all the best practices that Asia Pacific countries have put in place.

For more #COVID19WATCH contents, visit www.bworldonline.com/covid19watch.

Analysts’ March inflation rate estimates (2020)

INFLATION likely eased further in March as the plunge in oil prices was seen to offset a slight uptick in food prices due to a spike in demand caused by the enhanced community quarantine (ECQ) in Luzon. Read the full story.

Analysts’ March inflation rate estimates (2020)

Inflation likely eased further in March

INFLATION likely eased further in March as the plunge in oil prices was seen to offset a slight uptick in food prices due to a spike in demand caused by the enhanced community quarantine (ECQ) in Luzon.

A BusinessWorld poll of 11 economists held this week yielded a 2.3% median estimate for March headline inflation, closer to the lower end of the Bangko Sentral ng Pilipinas’ (BSP) 2-2.8% estimate given on Tuesday.

If realized, March will mark the second consecutive month of easing inflation coming from the 2.6% seen in February, and will also be markedly slower than the 3.3% logged in March 2019.

The central bank has a 2-4% inflation target for 2020 and 2021. It lowered last month its inflation average forecast for this year to 2.2% from 3% mainly due to the lower price trend in recent months, a sharp decrease in oil prices, as well as the economic impact of the coronavirus disease 2019 (COVID-19) across the world.

The Philippine Statistics Authority will report March inflation data on Tuesday (April 7).

Analysts said the dramatic plunge in oil prices last month likely affected inflation.

“My forecast is 2.4% since the huge fall in fuel prices will more than offset the slight increase in food prices (which may rise due to logistics problems due to COVID-19),” Victor A. Abola, economist at the University of Asia and the Pacific, said.

Oil prices started to free-fall in March as Saudi Arabia brought its selling price down and tried to engage in a price battle with Russia, while demand continued to drop as the COVID-19 outbreak worsened. Late last month, US President Donald J. Trump and his Russian counterpart Vladimir Putin agreed to discuss stabilizing energy markets.

Mitzie Irene P. Conchada, an economist from De La Salle University, also sees declining oil prices amid lower demand due to production cuts in manufacturing and a halt in the services sector.

“The enhanced community quarantine in the country and in most parts of the world will continue to affect production,” Ms. Conchada said in an e-mail.

The month-long Luzon lockdown, scheduled to end on April 12, is meant to prevent the further spread of the virus. The government ordered the temporary shutdown of public transportation, schools and most businesses, except those related to basic goods and services, including groceries, pharmacies, hospitals and banks, among others.

“Reduced business and economic activities due to lockdowns locally and in many countries around the world could fundamentally help ease/lower inflation eventually, going forward,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Meanwhile, Jiaxin Lu, an economist from Continuum Economics, said the implementation of a price freeze also likely slowed inflation.

“Food prices likely stabilized in March, partly due to the two-month price freeze act by the Philippine government to control prices amid COVID-19 crisis,” Ms. Lu said.

Prices of basic necessities are frozen from March 16 until May 15 following the declaration of a six-month state of calamity due to the COVID-19 outbreak.

Security Bank Corp. Chief Economist Robert Dan J. Roces, however, said risks of lower rice supply amid the outbreak could stoke inflation in the near to medium term.

“Near to medium-term upside risks to inflation could emanate from rice as Vietnam, the country’s major source of imported rice, halted new rice export contracts as it reviewed their stocks,” Mr. Roces said.

The government is planning to import 300,000 metric tons of rice to ensure there is enough domestic supply during the lockdown.

Aside from this, Mr. Roces warned logistical problems due to the lockdown could threaten food supply.

“Manila ports have also been choked by unclaimed cargo that could cause the terminal to shut down and hamper supply chains and threaten the food supply if logistics solutions are not drawn up soon,” Mr. Roces said.

“Finally, cost-push inflation could happen with slowing output and higher unemployment should the enhanced community quarantine get extended indefinitely,” he added.

Health officials reported that COVID-19 patients in the country reached 2,633 as of Thursday with deaths hitting 107. — Luz Wendy T. Noble

Analysts’ March inflation rate estimates (2020)

PHL rules out tapping global bond market

By Beatrice M. Laforga
Reporter

THE government probably won’t tap global bond markets to fund its anti-coronavirus disease 2019 (COVID-19) response, National Treasurer Rosalia V. de Leon said on Thursday, citing ample liquidity supply in the local market.

The Philippines also can explore other options if there was a need to increase spending, she told reporters in a Viber message.

“There’s no need at this time,” Ms. De Leon said. “The Bangko Sentral ng Pilipinas got us covered,” she added, referring to the central bank’s recent purchase of P300 billion of government securities.

The Treasury bureau can also make use of a “switch” program, where bondholders can exchange their holdings for the latest debt paper being offered, Ms. De Leon said.

She said there was “strong domestic bid,” citing banks’ foreign currency deposit unit loans that rose by 1.2% from June last year to $18 million as of yearend.

“Conditions today call for unconventional responses,” the Treasury chief said. “This is not your usual playlist. We continue to look for opportunities as we saw that issues like Israel or Panama get printed.”

Israel on Wednesday sold $1 billion of 100-year bonds at 4.5% coupon in the global market, joining countries such as Austria, Mexico and Argentina to issue so-called century bonds, Reuters reported.

Israel also sold $2 billion of 10-year debt paper at a coupon of 2.75% and another $2 billion 30-year debt at 3.875% as part of its government’s $22-billion package to boost its economy amid the health crisis.

Back home, the national Treasury raised P300 billion from the sale of three-month government securities to the Philippine central bank, payable in six months interest-free.

The sale added to the government’s funding pool “with the least cost,” on top of P100 billion in dividends it expects from state-owned companies, according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“As a result of this huge source of cash at zero interest rate, the Treasury bureau already signaled that the National Government does not need to raise funds through the sale of foreign bonds at the moment,” he said in an e-mailed reply to questions.

This would cut the country’s reliance on foreign commercial borrowings and minimize foreign exchange risks and volatility, Mr. Ricafort said.

President Rodrigo R. Duterte’s plan to realign about P275 billion from the 2020 national budget would also rule out additional borrowings, he added.

Ms. De Leon earlier cited the need to change the country’s borrowing mix, now at 75:25 in favor of domestic sources, as the government taps additional funding from multilateral agencies worth up to $2 billion to fund its anti-COVID-19 efforts.

Mr. Ricafort said such sources of financing are “prudent’ and could result in savings for the National Government.

The Treasury bureau had rejected bids in the past four consecutive auctions after players asked for higher rates.

The Budget department said in a statement yesterday it had released P100 billion to the Social Welfare department, the first tranche of the P200-billion program that will give P5,000 to P8,000 of aid to 18 million low-income families in the next two months.

Rules on tax deadline extensions released

THE Bureau of Internal Revenue (BIR) extended the deadline for the filing of all tax returns, tax payments and submission of documents as the country remains under a state of national emergency due to the coronavirus outbreak.

BIR released Revenue Regulations No. 7-2020 which provides the guidelines for the implementation of Section 4(z) of the Republic Act No. 11469 or “Bayanihan to Heal As One Act” which gave the President the authority to “move statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees, and other charges required by law” as the country is under a state of national emergency.

“By moving the statutory and regulatory deadlines for tax compliance, we ensure that taxpayers would be able to fulfill their patriotic duty of paying taxes without any risk to their health and safety,” Finance Secretary Carlos G. Dominguez III was quoted as saying in a statement.

The BIR earlier extended the deadline for filing and payment of annual income tax returns (ITR) for the calendar year 2019 to May 15, 2020 (Friday) from April 15, 2020.

With the new guidelines, the deadlines of the following, which fall during the national emergency period, have also been extended by 30 days from the original date:

• electronic and non-electronic filing and payment of quarterly ITRs;

• monthly and quarterly value-added tax (VAT) declarations;

• documentary stamp taxes (DST);

• percentage tax on winnings and prizes withheld by race track operators;

• withholding taxes on compensation; creditable and final withholding taxes; and

• monthly excise tax declarations.

For instance, the non-electronic filing and payment of VAT declarations for the month of February is now due on April 20, while the electronic filing deadline is from April 21-27 (depending on the group). Quarterly VAT declaration filing and payment for fiscal quarter ending Feb. 29 is now on April 27.

The BIR also extended the deadline of submission by 30 days for the following:

• quarterly summary lists of sales and purchases (new deadline: April 27);

• sworn statement of manufacturers or importers of excisable products (April 27);

• financial statements for the year 2019 (April 30);

• inventory lists (April 30);

• e-Sales reports (May 11);

• summary lists of machines (May 15);

• list of medical practitioners (May 15);

• certificates of residence for tax treaty relief (April 30);

• registration of computerized books of accounts and other accounting records (April 30).

• The deadline for the filing of applications for VAT credit and refund claims covering the quarter ending March 31, 2018 will now be on April 30, instead of March 31.

Submission of tax amnesty on delinquencies returns will be accepted until May 23.

“Additionally, settlement of one-time transactions, submission of assessment-related documents, and other filings and submissions not enumerated in the revenue regulations are given a 30-day extension, counted from the original due date,” the BIR said.

In case the new deadline falls on a weekend, the BIR said the deadline will automatically be the next business day.

Aside from moving the deadlines for tax compliance, RR No. 7-2020 also suspended the running of the statute of limitations on assessment notices, warrants of distraint and/or levy, and warrants of garnishment, by 60 days from the lifting of the state of national emergency.

“The extension of deadlines under RR No. 7-2020 applies nationwide while the country is in a state of national emergency,” BIR Commissioner Caesar R. Dulay said in a statement.

In a separate advisory, Mr. Dulay said taxpayers should disregard the penalties that will be displayed on BIR’s online facility eFPS for the meantime as it “automatically compute penalties for late” returns and payments.

“Taxpayers are advised to disregard the penalties computed by the system and pay only the basic tax due, provided that the payment shall be made on or before the extended deadline,” Mr. Dulay said. — Beatrice M. Laforga

Gov’t urged to throw lifeline to MSMEs

By Jenina P. Ibañez
Reporter

FINANCIAL support for micro, small and medium enterprises (MSMEs) should be a government priority, especially after the enhanced community quarantine (ECQ) is lifted or modified, several business groups said.

Joint Foreign Chambers of Commerce of the Philippines (JFC) Senior Adviser John Forbes in a mobile message on Wednesday said agriculture, manufacturing, and construction sectors should “fully reopen” to bring back jobs and avoid losing foreign markets.

“SMEs employ a large percentage of the workforce and could use financial assistance and perhaps tax breaks,” he said in a mobile message on Wednesday.

Almost one million MSMEs were recorded in 2018 — accounting for 99.52% of businesses, government statistics showed.

Almost half of these are in the wholesale and retail trade and repair of motor vehicles and motorcycles industries, and they generated 63% of the country’s total employment with more than 5.7 million jobs.

The government originally scheduled the lifting of the ECQ on April 12. Trade Secretary Ramon M. Lopez expressed support for a gradual lifting of the ECQ, adding that manufacturing and mall operations could possibly restart as long as social distancing measures are applied.

Business leaders recently proposed a modified community quarantine that removes checkpoints and resumes manufacturing operations.

The Foundation for Economic Freedom (FEF) in a statement on Thursday recommended an easing of the ECQ, with the continued implementation of hygiene measures such as mandatory social distancing and use of face masks, as well as temperature checks and disinfections.

They also recommended the removal of checkpoints to allow for free movement of goods, continued work from home arrangements, and stricter lockdowns in barangays deemed as hotspots.

“Allow factories and offices to reopen but continue a ban on congregations of more than ten. Stagger working hours when appropriate. Allow the operation of essential stores like hardware stores, supermarkets, groceries, and the like,” FEF said.

Chris Nelson, British Chamber of Commerce of the Philippines executive director, said in a mobile message on Wednesday that the chamber supports government prioritizing giving assistance to workers displaced by the ECQ.

He also said that SMEs need the government to keep increasing liquidity.

“Also credit lines based on agreed conditions need to be re-established. The Philippine banking sector has indicated it is helping and supporting these measures and that is highly appreciated,” Mr. Nelson said.

MSMEs will get a reprieve from paying commercial rent for 30 days during the ECQ, without incurring penalties, fees and other charges, after the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) on Wednesday approved the proposal from the Trade department.

Mr. Lopez told reporters in a mobile message that he also encouraged lessors to waive a month of rent for small businesses that had to halt operations during the ECQ.

“Supermarkets, groceries, agri-fisheries stores, public markets, c-stores, drugstores and all retailers of basic and essentials and medical products are encouraged to extend their operations to a maximum of 12 hours,” he added.

The Department of Trade and Industry (DTI) earlier allocated P1 billion for a loan program for MSMEs affected by the ECQ.

CONTAINING THE DISEASE
Philippine Chamber of Commerce and Industry (PCCI) Director George T. Barcelon in a phone interview on Thursday said that he supports funding for businesses that have been impacted or closed shop during the ECQ, as well as the postponement of tax payments.

Beyond helping restart business operations, Mr. Barcelon said businesses want funding and feeding programs for marginalized sectors to continue after the ECQ. They also want better data monitoring and isolation of COVID-19 cases to ensure that employees feel safe in leaving their homes.

“The business sector is in no rush to start,” he said. “The reason we want to start is para may hanapbuhay ’yung lower rank. We want them to have a decent livelihood. But once they are healthy and once we are able to ascertain the safety of going out.”

Mr. Barcelon said containing the outbreak and assuring health and safety in going outdoors would be the impetus for increased consumption.

“Without people going out, limitado ang consumption, and so limitado ang manufacturing,” he said, adding that the government should do everything in its power to mitigate the disease.

DECONGESTING THE PORTS
The movement of goods also needs to improve, BCCP’s Mr. Nelson said.

“The ports of Metro Manila need to be cleared and deliveries of both raw materials and finished goods supplies. This will trigger both the resumption of manufacturing and to some extent consumer demand,” he said.

The DTI in a statement on Thursday said it is working with several government agencies to decongest Manila ports to prioritize the entry of food, medicine, and personal protective equipment.

The proposed joint administrative order would require cargoes overstaying beyond 30 days from discharge to be withdrawn within five days once the order is in effect.

“Appropriate penalties shall be imposed by the PPA to ensure that consignees and importers withdraw the cargo within the window provided. All refrigerated containers must be pulled out within seven days, except chilled cargoes which are given five days from the issuance.”

Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said in a mobile message on Thursday that the industry is looking forward to the details of the economic stimulus and social amelioration program from the government, and is working on recommendations to the IATF.

National Economic and Development Authority Undersecretary Rosemarie G. Edillion said in a mobile message on Wednesday that the IATF’s technical working group on anticipatory and forward planning will release their recommendations soon.

The group is in charge of making recommendations to recover consumer and business confidence, and build a “new normal” of economic activities.

Leechiu sees office sector recovery

By Denise A. Valdez, Reporter

DEMAND for office space in the Philippines is expected to start recovering by the second quarter of the year, and transactions are projected to reach 800,000 to 1 million square meters (sq. m.) by the end of 2020.

In an online media briefing yesterday, real estate consultancy firm Leechiu Property Consultants (LPC) said the office sector will remain the primary driver of real estate this year, and growth will come from the information technology-business process management (IT-BPM) and Philippine Offshore Gaming Operator (POGO) industries.

“We are still optimistic about seeing the Philippines end at somewhere between 800,000 to 1 million sq. m. of office transactions this year throughout the country. And most of that would happen in Metro Manila,” LPC President and Chief Executive Officer David T. Leechiu said.

“We anticipate that everything that’s going on today will normalize by June, July, August, and leasing will be significantly more and catch up beginning August all the way through 2020,” he added.

However, the “conservative” projection of up to a million square meters of office space demand this year remains 43% lower from 2019’s office transactions of 1.75 million sq. m.

Comparing transactions in the first quarter this year and last year, LPC said demand has already dropped 47% to 157,000 sq. m., with provincial space taking a bigger chunk of the pie at 31% (49,000 sq. m.) from last year’s 11% (32,000 sq. m.).

Similarly, office supply is expected to be reduced by 44% to 842,000 sq. m. in 2020 due to construction delays brought by the Luzon-wide quarantine amid the coronavirus disease 2019 (COVID-19).

But by year’s end, Mr. Leechiu said vacancy should be at “very manageable levels,” although this would depend on the IT-BPM and POGO sectors continuing to take space in the market.

“The IT-BPM sector is the largest office occupier. We need to support them, and the very least we can do is grant more PEZA (Philippine Economic Zone Authority) zones throughout the country,” he said, referring to the accommodation of economic zone (ecozone) applications in Metro Manila.

“The COVID-19 situation is pushing the entire world into a recession, and that has become a unique opportunity for the Philippines because that will generate jobs in the BPO (business process outsourcing) sector faster than any other event in the Philippines,” he added.

President Rodrigo R. Duterte ordered a moratorium on approving ecozones in Metro Manila last year, with the intention of driving investors to the countryside. But the IT-BPM sector has flagged it as a threat to its growth, noting ecozones are a pull for investors because of its fiscal incentives.

Mr. Leechiu said it is important to encourage ecozones in Metro Manila as restricting it would mean an additional layer of difficulty for companies to expand in the Philippines.

He also compared the potential growth of the Philippines post-COVID-19 to the 2008 global financial crisis, where when it ended, annual vacancy jumped to 365,000 sq. m. from 35,000 sq. m. and annual demand grew to 400,000 sq. m. from 332,000 sq. m.

“Learning from the 2008 Global Financial Crisis, we are optimistic that demand from the IT-BPM sector will catch up starting at the second half of the year,” LPC said in its presentation.

“And as soon as the travel ban is lifted, we expect POGOs to complement the BPO demand throughout the next five years,” Mr. Leechiu added.

The POGO sector, which is largely powered by Chinese workforce, comprised the biggest demand for office space in 2019 at 774,000 sq. m. Mr. Leechiu said continuing to welcome them is essential in maintaining the growth trajectory of office demand in the country.

“POGO is our friend and they have increased investor sentiment. We just have to hold their hand,” he said.

The Luzon island, which accounts for about 70% of the Philippine’ gross domestic product, is under quarantine for a month until April 13 due to COVID-19. Travel bans have also been put in place during the period to temper the spread of the virus.

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