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Test kits from Singapore

SINGAPORE EMBASSY IN MANILA

SINGAPORE Ambassador to the Philippines Gerard Ho checks boxes containing COVID-19 test kits that arrived at the Ninoy Aquino International Airport on March 24, before turning these over on the same day to the Philippine government through Foreign Affairs Secretary Secretary Teodoro L. Locsin, Jr. Singapore donated 3,000 test kits and one Polymerase Chain Reaction Machine.

Law gives Duterte emergency powers for 3 months

PRESIDENT Rodrigo R. Duterte signed into law on Tuesday Republic Act No. 11469, or the “Bayanihan to Heal as One Act,” which gives him emergency powers in managing the coronavirus disease 2019 (COVID-19) in the country. The law is valid for three months. During a late night briefing on Tuesday, Mr. Duterte said, “To the members of both houses of Congress who sponsored and voted for this measure, I express my sincerest gratitude to all of you for granting our most urgent requests. Finally, the Executive Department can move, decide and act freely for the best interest of the Filipino people during this health crisis.” Among the law’s provisions are the immediate testing of persons under investigation and monitoring of the disease, and mandating establishments to serve as quarantine sites or housing for frontliners such as health workers. The procurement of personal protective equipment and other medical supplies will also be expedited and exempt from taxes and other fees. Families from low-income households will be provided subsidies and other assistance. — Gillian M. Cortez

Agri workers, fisherfolk, vets exempted from quarantine

AGRICULTURE workers and veterinarians have been included in the list of exemptions from the mandatory home quarantine imposed by the government in Luzon to contain the spread of the coronavirus disease 2019 (COVID-19), a ranking police official said Wednesday. Lt. Gen. Guillermo Lorenzo Eleazar, Philippine National Police (PNP) deputy chief for operations, said among those allowed to travel within the quarantine areas are farmers, fishermen and employees of agricultural supply stores and outlets. Mr. Eleazar, who heads the joint task force COVID-19 Shield, said the policy adjustment is to ensure steady food supply in Luzon. Aside from agricultural workers, veterinarians and employees of veterinary clinics have also been included. The agriculture industry group Samahang Industriya ng Agrikultura (SINAG) and the People for the Ethical Treatment of Animals (PETA) have appealed for the inclusion of their sector as essential personnel under the current state of emergency. — Emmanuel Tupas/PHILSTAR and Revin Mikhael D. Ochave

PMA rejects automatic licensing of medical graduates

THE PHILIPPINE Medical Association (PMA) rejected the proposal to automatically issue licenses to medical graduates without taking the board exam to beef up manpower amid the spread of the coronavirus disease 2019 (COVID-19). PMA Vice President Benito P. Atienza, in a radio interview Wednesday, said medical students can still volunteer to help even without a license. The proposal came from Senator Francis N. Tolentino who, in a statement Monday, asked the Professional Regulation Commission to waive the licensure examination of new physicians, which has been postponed from its March 1 schedule with more than 1,500 graduates registered to take it. — Genshen L. Espedido

Government eyes up to $2-billion loan

THE COUNTRY is looking to borrow up to $2 billion from multilateral lenders to support increased spending to stem the impact of the coronavirus disease 2019 (COVID-19), the Finance chief said, adding the government’s fiscal position is sound and can accommodate larger debt to plug its budget deficit.

“We are currently in negotiations with multilateral agencies for $1 billion up to $2 billion for funding support for this. We have to realize, we are looking at a drop in revenues. So we have to cover that gap somehow so that we maintain our pace of spending,” Finance Secretary Carlos G. Dominguez III told reporters via Google Meet on Wednesday, adding slower economic activity and business disruptions, largely caused by the month-long lockdown in Luzon, will hurt the government’s tax take.

He said the Finance department is looking to tap multilateral lenders for grants and loans to provide the needed funding, including the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank.

“We are continuously working online with them. I believe that they see the immediate need and are also working fast. We want to do it early because all the countries in the world are trying to do the same thing,” he added.

Mr. Dominguez said the government is in a “very good position” fiscal-wise to support the economy versus the impact of COVID-19, with the national budget in place and a historically low debt level of 41.5% of gross domestic product (GDP) last year.

“As you know, we have reduced our debt levels from over 70% of GDP to only 41% of GDP now. So we are in a very good position to combat this coronavirus and we have the debt capacity to do that,” Mr. Dominguez said in a Bloomberg TV interview.

In a separate interview, Mr. Dominguez did not say how much additional debt the government can accommodate this year, but assured that “we are willing to do as much as it takes” to aid Filipinos who lost their livelihood, “protect frontliners,” and support the entire economy.

Citing preliminary estimates by the Development Budget Coordination Committee, Mr. Dominguez said they are looking at a P318.9-billion drop in revenues if 2020 GDP will contract by one percent and a P286.4-billion decline if the economy will post flat growth. This is on top of an estimated P14-billion drop in revenues due to easing demand and falling global oil prices.

The government is also projecting P145 billion in delayed tax payments after the deadline for filing of income tax returns was extended by one month to May 15.

“Because our revenue is down, we will have to borrow to cover that. That is our primary task. When I said we will do what is required, we will do what is required within the budget and move things around that’s why we asked for that (emergency) power. Once we see the extent of the damage to the economy, we will determine how much budget we will need if any,” he said.

The World Bank has committed to provide $100-million loan to the Philippines while the Asian Development Bank has already extended a $3-million grant.

Mr. Dominguez said even though higher borrowings may be credit negative for the country, the plan to secure an “A” level credit rating by 2022 is “still there.”

The government has rolled out an initial P27.1-billion economic stimulus package to help virus-affected sectors.

President Rodrigo R. Duterte signed late Tuesday Republic Act No. 11469 or the Bayanihan to Heal as One Act which will allow him to realign or reallocate as much as P275 billion in national budget and off-budget outlays to the government’s emergency subsidy program to provide relief to some 18 million Filipino households most affected by the pandemic and for the treatment of infected persons.

The government targets to collect P3.49 trillion this year to fund its P4.1-trillion spending plan, with the remaining funds to be sourced from its borrowing activities.

‘FISCAL CRISIS’
Socioeconomic Planning Secretary Ernesto M. Pernia on Wednesday warned a wider budget deficit that could lead to a repeat of the “deep fiscal crisis” in 2004 when the country reached a debt level of around 75% of GDP.

The National Economic and Development Authority (NEDA) estimates that the budget deficit could widen to 4.4% to 5.4% of GDP this year amid an increase in government spending, well beyond the 3.2% cap, which economic planners have yet to revise.

“Itong nangyayari ngayon na marami ang expenses ng government (As the government ramps up spending), on one hand, on the other, kokonti lang ang revenue (revenues are falling), aabot ’yung deficit natin to (our deficit could reach) 4.4-5.4% ng GDP which is really a danger zone, red flag na ’yun eh. Beyond 3.5% of GDP is already a red flag,” Mr. Pernia said in a radio interview.

The NEDA chief also warned that the country’s unemployment rate, which went down to 5.1% in 2019, could surge to double-digits as lockdown measures across the country continue to disrupt business operations.

NEDA said around 116,000 to 1.8 million Filipinos could lose their jobs due to the economic impact of COVID-19.

Mr. Pernia added that the country lacks human resources such as experts, nurses, doctors and scientists that could aid the ongoing battle against COVID-19 as a growing number of Filipinos choose to work abroad.

NEDA said 2020 GDP growth could hit 4.3% at most this year if the impact of the pandemic will be mitigated. If the Luzon-wide enhanced community quarantine will be extended beyond one month, GDP could contract by 0.6%, the first decline since 1998.

The state economic planning agency also sees the country losing between P428.7 billion to P1.355.6 trillion in gross value added or equivalent to 2.1-6.6% of GDP.

The government has yet to revise its 6.5-7.5% GDP growth target for this year. The economy grew by 5.9% in 2019, failing to meet the 6-6.5% goal. — Beatrice M. Laforga

Household consumption to take hit amid coronavirus pandemic

By Marissa Mae M. Ramos
Researcher

ANNA CRUZ, a mother of two, has been struggling to feed her family since last week when Luzon was placed under enhanced community quarantine in order to contain the spread of the coronavirus disease 2019 (COVID-19) in the country.

“We may have money, but we have nowhere to buy,” she said in Filipino. “Groceries and wet markets have limited basic supplies in the province due to the lockdown.”

With Luzon in lockdown, work and transportation has been suspended, while local government units imposed curfews and checkpoints to discourage people from leaving their homes.

Economists have already trimmed Philippine growth forecasts this year amid the growing economic fallout from the pandemic. Even consumption — considered to be the backbone of the Philippine economy — is not spared.

“With strict curfews and limited mobility, the once potent Pilipino Purchasing Power is now sidelined and is in danger of falling into contraction in [the first half of 2020] should this persist,” ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

Mr. Mapa has downgraded his gross domestic product (GDP) growth outlook for this year to 5.6% with a 5.3% expansion as the worst case scenario.

The Philippine economy has been characterized as consumption driven, with household spending having contributed 68% to the country’s GDP last year.

University of Asia and the Pacific (UA&P) Economist Victor A. Abola said consumption growth likely weakened in the first quarter and “possibly” in the second quarter.

“Assuming a peak [of COVID-19 cases] in May, household spending may recover, but probably reach only 4%-5% growth for the year,” he said.

The last time consumption spending grew by less than four percent was in 2010 when it expanded by 3.4%. That year, GDP grew by 7.6% with consumption contributing just 2.4 percentage points (ppts).

In comparison, the economy grew by 5.9% last year, with consumption chipping in 3.9 ppts as it expanded by 5.8%.

The National Economic and Development Authority (NEDA) on Tuesday said it now projects -0.6% to 4.3% economic expansion this year “without mitigating measures” against COVID-19 outbreak.

“Household consumption is expected to decelerate until June as consumer confidence dips due to health concerns and social distancing measures. In particular, a 5% to 10% decline in household consumption of non-essential commodities… could result in a loss of gross value added of P45 to P94 billion, equivalent to 0.2 to 0.5% of GDP and reduce employment by 16,500 to 62,500,” NEDA said in its assessment of the COVID-19 impact on the economy.

ING’s Mr. Mapa said the impact brought by COVID-19 has created a “big hole” in consumption and that the government should be able to step in “to fill in the huge gaps.”

“The government may also need to consider doing all it can to help productive members of society keep their jobs and to those who will not be able to keep them, to retrain and hire them eventually. Government will need to take a hard look at income replacement via cash transfers because no income means no consumption and authorities must do all it can to keep the wheels of the economy running,” he said.

The government has earlier announced a P27.1-billion relief package to aid affected sectors, with an additional $1-billion loan under negotiation.

“The injection of funds for the COVID-19 program, with all its costs, will create an injection of funds in the economy. This stands to create a multiplier effect that is positively good for investment,” Colegio de San Juan De Letran Graduate School Dean Emmanuel J. Lopez said in a separate e-mail.

Jose Ramon G. Albert, senior research fellow at the Philippine Institute for Development Studies (PIDS), also stressed the importance of introducing a stimulus package to keep the economy afloat.

“Stimulus is badly needed especially as about 40% of the labor market is in the informal sector, many of whom are reliant on day-to-day living,” Mr. Albert said.

For UA&P’s Mr. Abola, the private sector should “also has to do its share” in providing safety nets such as giving employees their 13th month pay in advance, providing full pay to minimum wage earners, and providing food and medical assistance to poor households in cooperation with LGUs or foundations.

Among sectors, economists pointed to retail of essential goods, health care, and communication services as those that would continue to see growth. On the other hand, sectors that produce “postponable” goods stand to lose amid the quarantine.

ING’s Mr. Mapa said it is difficult to estimate how consumption will fare for the rest of the year with the main priority to contain the outbreak.

“We’ve moved beyond a financial crisis, beyond an economic crisis and are in a full public health crisis. Economic aspirations will likely be set aside as we strive our best to save as many lives and to get out of this situation at the soonest…,” Mr. Mapa said.

A “big catch up on economic activities” may be seen in the second half, PIDS’ Mr. Albert added.

Foreign business groups urge gov’t to address cargo delays amid ECQ

By Jenina P. Ibañez
Reporter

FOREIGN business groups are urging the government to ensure the unhampered transport of food and other essential products, amid reports that cargo trucks are still being stopped at checkpoints amid the Luzon-wide enhanced community quarantine (ECQ).

“Local governments in some cases are slowing or preventing movement of essential workers and agricultural and manufactured goods,” Joint Foreign Chambers of Commerce of the Philippines (JFC) Senior Adviser John Forbes said in a mobile message on Tuesday.

In a bid to contain the spread of the coronavirus disease 2019 (COVID-19), the government placed Luzon under ECQ, where most are in home quarantine and only essential workers in approved industries are allowed to go to work and transport goods.

While the Trade department had said that all cargo must pass unhampered through checkpoints, business groups said there are inconsistencies in implementing these guidelines.

Nabil Francis, president of the European Chamber of Commerce of the Philippines (ECCP), said in a mobile message that there have been challenges in filing required documents, logistics, and implementation of food lanes in checkpoints. The food lanes were meant to speed up the transport of perishable agri-fishery commodities.

“While there are notable policies already to address some of the aforementioned challenges, it was reported that some varied in interpretation, as seen on multiple levels of jurisdiction,” he said.

Mr. Francis said that there needs to be further alignment between the issuances of the national and local government, and better communication in applying national policies to a local level, to prevent delays.

Even Police Lt. Gen. Guillermo Lorenzo T. Eleazar, head of the Joint Task Force Corona Virus Shield, admitted some LGUs have come out with “extremely strict” policies regarding the entry of cargo.

“With the quarantine, what we’re trying to prevent or to restrict is the movement of the people who are possible carriers of the virus, but not cargo. It is important for cargo to be delivered so that we do not have a food shortage. That is a problem we have seen every day,” Mr. Eleazar said in a radio interview on Wednesday.

EU-ASEAN Business Council Executive Director Chris Humphrey said in an e-mail that supply chains that support the production and movement of essential goods such as medicine, food, and personal care products should “function as normally as possible.”

“It is important that governments consult industry to ensure that appropriate mechanisms are put in place in advance of any lockdowns to allow for such supply chains to operate efficiently,” Mr. Humphrey said.

‘NORMALIZATION THIS WEEK’
The Department of Trade and Industry (DTI) in a statement on Wednesday said goods manufacturers, retailers, and distributors can expect “normalization” in cargo movement this week.

“While there were initial difficulties during the first two or three days of implementation, improvements have been reported since Friday of last week. The situations have eased up at checkpoints and we have been hearing more positive feedback on the movement of cargoes,” DTI Secretary Ramon M. Lopez said.

DTI is encouraging those delivering goods to present the cargo manifest or delivery receipt that indicates their destination, nature of transport, and quantity of goods at checkpoints to avoid delay. It also asked LGUs to comply with the guidelines.

INVESTOR SENTIMENT
The foreign business groups have been responding to the government’s actions amid the COVID-19 pandemic.

“Government is on the right track and needs our full support and cooperation. More medical equipment and testing needed quickly. And more hospital space,” Mr. Forbes said.

The Department of Health on Friday assigned three dedicated public hospitals to serve COVID-19 patients after an appeal from private hospitals. Private hospitals The Medical City, St. Luke’s Medical Center, and Makati Medical Center this week said they could no longer accommodate COVID-19 cases.

Mr. Humphrey said that businesses in the future will likely reevaluate their supply chains and look to diversify them further. “This could and should present an opportunity to the countries in ASEAN, especially if they can advance the regional economic integration agenda further,” he said.

Chris Nelson, British Chamber of Commerce of the Philippines executive director, said in a mobile message that he is in contact with member companies to address present challenges, and is in discussions with interested British companies to be able to take on business opportunities when possible.

“While it is a difficult situation here and in many countries we are optimistic that the Philippines remains an attractive market for British companies going forward,” he said.

SM Prime issues P15-B bonds

SM PRIME Holdings, Inc. has issued P15-billion fixed-rate bonds from its shelf registration of P100-billion securities.

In a disclosure to the stock exchange yesterday, the property developer said it has completed the first tranche of its debt securities program amounting to a total of P15 billion.

The offer comprised of five-year and seven-year bonds with interest rates of 4.8643% per annum and 5.0583% per annum, respectively.

In its offer supplement dated Dec. 4, 2019, SM Prime said proceeds from the issuance will be used to finance capital expenditures for the expansion of its mall operations.

About P14.76 billion is expected to be netted from the offer, which will be allocated to various mall expansion projects starting this year. SM Prime has a plan of launching 17 new malls from 2020 to 2022 and expanding SM City Baguio Mall this year.

The company has a one-time option to redeem any series of the bonds in whole before their maturity dates. For the five-year bonds, the redemption price is 101% on the sixth and seventh interest payment dates, and 100.5% on the eight and ninth interest payment dates. For the seven-year bonds, the redemption price is 101% on the 10th and 11th interest payment dates, and 100.5% on the 12th and 13th interest payment dates.

SM Prime tapped BDO Capital and Investment Corp. and China Bank Capital Corp. as joint issue managers for the issuance. Joint bookrunners and joint lead underwriters were BDO Capital and Investment Corp., China Bank Capital Corp., BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

Earnings of SM Prime in 2019 rose 18% to P38.1 billion on the back of a 14% growth in revenues to P118.3 billion. Its shares at the stock exchange increased P1.50 or 5.88% to P27 apiece yesterday. — Denise A. Valdez

SEC warns versus ‘Narcfunds’ scheme

THE country’s corporate regulator is warning the public against investing in a group called Narcfunds/Narcsfund, which it said is operating without a license.

The Securities and Exchange Commission (SEC) gave out a recent advisory on individuals going around inviting people to put their money in a group called Narcfunds/Narcsfund.

The group is allegedly operated by a certain Kwon, Jin-ho who travels to Korea, United Kingdom, Singapore and the Philippines, the SEC said. Narcfunds/Narcsfund is supposedly operating through a website and a Facebook group called “Team PH Leaders,” enticing the public to “donate” and invite more members in exchange for getting a portion of the company’s collections.

The Narcfunds website describes the group as a non-government organization “that helps drug addicts afford treatments that can release them from addiction.”

“The public is hereby advised to exercise due care and caution in investing their money in this type of scheme being offered by Narcfunds/Narcsfund and/or its agents,” the SEC said.

Because the scheme involves selling securities to the public, the SEC said Narcfunds/Narcsfund should have registered as a corporation first, obtained the appropriate license to sell securities, and registered the securities with the SEC.

Salesmen, brokers, dealers and agents behind Narcfunds/Narcsfund may now be criminally liable for violation of the Securities Regulation Code, and may face a maximum fine of P5 million, a maximum of 21 years in prison, or both.

Names of those involved will also be reported to the Bureau of Internal Revenue for appropriate penalties and/or taxes. — Denise A. Valdez

LT Group, SMC raise rubbing alcohol production

TWO of the largest alcoholic beverage companies in the Philippines have boosted their production of rubbing alcohol to donate to the frontline facilities and workers battling the spread of the 2019 coronavirus disease 2019 (COVID-19) pandemic.

Lucio C. Tan’s Tanduay Distillers, Inc., and Absolut Distillers, Inc. (ADI) have started producing rubbing alcohol. So far, they have donated 50,000 4-liter bottles of 70% ethyl alcohol to the Department of Health and another 50,000 bottles to non-governmental organizations, which aid in distributing resources to health facilities.

“During these challenging times, it’s important that we step up and help each other. We have transformed our distilleries to produce ethyl alcohol to supply the need of our kababayans,” said Gerardo T. Tee, ADI chief operating officer and overall general manager for distillery operation of the LT Group, Inc.

Meanwhile, San Miguel Corp. (SMC) announced in a separate statement that all the facilities of its liquor arm Ginebra San Miguel, Inc. (GSMI) will be increasing their production of rubbing alcohol to 100,000 liters each day.

“So far, we have donated 29,300 liters of 70% ethyl alcohol to 77 hospitals throughout Metro Manila, as well as the Department of Health, crisis centers, local government units, law enforcement agencies, and other vital institutions,” SMC President Ramon S. Ang said.

Most of its alcohol production come from GSMI’s Cabuyao plant in Laguna. SMC runs Ginebra plants in Pangasinan, Isabela, Albay, Negros Occidental, and Cebu.

Both top listed firms plan to expand their alcohol productions from Luzon to other parts of the country.

On Wednesday, shares in LT Group grew by 2.9% to close at P6.38 each, while SMC shares also inched up by 0.6% to close at P87.00 apiece. — Adam J. Ang

AC Energy, partner to use GE wind turbines in Vietnam

AC Energy, Inc. and its partner The Blue Circle Pte. Ltd. have ordered eight of the new 5 megawatt (MW) wind turbines from a unit of General Electric Co. (GE) to power the second phase of the firms’ $80-million wind farm in Vietnam.

The 158-meter Cypress platform wind turbines, which have a total unit capacity of 40 MW, will carry the largest rotor diameter for an onshore project in Asia and will be the first to transport blades in two pieces before assembly on site.

“This technology is a game-changer for onshore sites as it will allow larger capacity machines, lowering our cost of energy and enhancing competitiveness of wind energy,” The Blue Circle Chief Construction Officer Hervé Grillot said in a statement.

Last year, the two firms signed an agreement to construct the first phase of the renewable energy project, which was initially expected to be done by the first half of 2020. AC Energy held more than 62% of the economic ownership, including a 50% direct voting share in this phase.

AC Energy through its wholly owned subsidiary, AC Energy Vietnam Investments 2 Pte. Ltd., will have a 50% voting stake in this second phase of the project, while GE Vietnam will be providing a full service agreement for up to 15 years and The Blue Circle will manage operations through an asset management services contract.

The Mui Ne project is located in Binh Thuan province on the southeastern coast of Vietnam. It has a total expansion potential of up to 170 MW, and will be funded by debt and equity. The project is also set to qualify for the wind feed-in-tariff of 8.5 US cents per kilowatt-hour.

The Blue Circle has secured the land and grid connection for the project’s 40 MW second phase, despite the suspension of master plan approvals in Vietnam.

“The Binh Thuan province is a very complex and challenging environment to implement a wind power project,” The Blue Circle Chief Executive Officer Olivier Duguet said.

“We are now extending the Mui Ne Project with a second 40MW phase to be commissioned in 2021,” he added.

In 2018, the Ayala-led company via its subsidiary, AC Energy International Holdings Pte. Ltd., acquired 25% ownership of The Blue Circle, including co-investment rights in the latter’s projects.

“We have strongly pushed for the adoption of new technologies and best practices to grow our assets in renewables with the continuous support to pursue innovation from partners like The Blue Circle,” AC Energy International Chief Operating Officer Patrice R. Clausse said.

Recently, AC Energy agreed to transfer its stake in renewable energy projects abroad to its Philippine-listed unit, AC Energy Philippines, Inc., in exchange for more shares in the latter. — Adam J. Ang

ISM changes name to DITO

ISM COMMUNICATIONS Corp. has officially changed its name to DITO CME Holdings Corp.

In a disclosure to the stock exchange yesterday, ISM said it has gained approval from the Securities and Exchange Commission (SEC) to change its corporate name on March 6. It is also changing its stock symbol to “DITO” from “ISM.”

In its amended articles of incorporation as DITO CME Holdings, the company said its primary purpose now is to engage in the business of a holding company.

The changes will be reflected on the Philippine Stock Exchange systems starting April 1.

Following the corporate changes, stockholders of ISM are asked to request from the company’s stock transfer agent a change of their old stock certificates. The stock transfer agent is AB Stock Transfers Corp., which may be contacted via registered e-mail, personal appearance or authorized representatives.

Old stock certificates of stockholders must be surrendered to get a new one. The new stock certificates will be available starting May 8.

If the old stock certificates are lost, stolen or destroyed, stockholders may submit an affidavit of loss and an affidavit of publication to the stock transfer agent.

All the announcements are subject to possible changes in government rules with regard to the Luzon-wide enhanced community quarantine until April 13.

The board of directors of ISM approved changing its corporate name on Dec. 10, 2019, the same time it approved buying 100% of Dennis A. Uy’s shell company Udenna Communications Media and Entertainment Holdings Corp.

Shares in ISM at the stock exchange climbed 10 centavos or 8.40% to P1.29 each yesterday. — Denise A. Valdez

‘Efficient’ Netflix sought during lockdown

THE Philippines’ telecommunications commission has asked US media-services provider Netflix to “efficiently manage” its streaming bit rates to ease data congestion as the Luzon-wide lockdown to contain the coronavirus disease 2019 (COVID-19) has slowed Internet speeds due to a surge in users.

In a statement on Wednesday, the National Telecommunications Commission said Netflix Pte Ltd. had already responded to its request.

“[Netflix] conveyed solidarity and support to the Philippine government’s efforts, recognizing that the internet should continue to run smoothly at this time,” the commission said.

“Netflix also developed a way to reduce its traffic on telecommunications networks by 25% while maintaining the quality of service. Netflix added that its consumers should continue to get the quality that comes with their plan — whether it’s Ultra-High, High or Standard Definition. Netflix’s move will provide significant relief to congested networks for the next 30 days,” it added.

Department of Information and Communications Technology (DICT) Undersecretary Eliseo M. Rio, Jr. has said the improved services by telecommunications companies have helped cushion the impact of the COVID-19 outbreak on their operations.

Telco service providers have been seeking to ensure continuity of operations to handle the surge of users working from home during the lockdown period.

The DICT official noted the Philippines has one of the lowest tower densities in Asia, which means Internet congestion is normal during the lockdown period.

Mr. Rio also asked the public to be patient in the event of outages caused by congestion.

“Our infrastructure is not enough but the department has done something about it. For example, we started adding common towers this year. But it takes time to build towers. Perhaps, we have added 400 towers all over the country,” he said in a recent interview.

The DICT has been pushing for telcos to share infrastructure since 2017.

The government is hoping 50,000 shareable towers will be built within the next seven to 10 years to close the tower density gap with neighboring countries. — Arjay L. Balinbin

Toyota, NTT teaming up on development of smart cities

TOKYO — Toyota Motor Corp. and Nippon Telegraph and Telephone Corp. (NTT) have agreed to work together on developing smart cities and will invest 200 billion yen ($1.8 billion) in each other to cement the relationship, the two companies said on Tuesday.

The two companies will develop a data platform which will compile and analyze information from homes, vehicles, and public institutions, which will be used to create new services focusing on transportation, health, and energy usage.

Under the agreement, Toyota will take a 2.07% stake in Japan’s biggest telecoms company, while NTT will take a 0.9% stake in the automaker.

The platform will be rolled out at the prototype, zero-emissions, hydrogen-powered city near Mt. Fuji in Japan which Toyota is developing to incorporate smart homes, robotics as well as autonomous driving and AI technologies.

After decades spent focusing on making and selling cars, Toyota is increasingly turning to partners in the technology sector to help develop expensive new vehicle technologies as it tries to transform itself into a mobility services company.

“It is necessary not only for each company to engage in its own projects but also for both companies to work closely in jointly building and operating the ‘Smart City Platform,’” the companies said in a statement.

A growing number of global tech giants including China’s Tencent Holdings, Alphabet, Samsung Electronics, and Panasonic, are looking at developing hi-tech, connected cities, although many remain in the early planning stages.

The partnership between Toyota and NTT will build on an existing collaboration under which the companies are jointly developing technology for connected cars.

Toyota has also tied up with other domestic telecoms firms to come up with new technologies, including its partnership with SoftBank Corp. to design and market an on-demand, self-driving service platform which will be used in Toyota’s prototype city.

NTT sees smart city-related solutions as a growth area as phone usage plateaus at home. It has partnered with the city of Las Vegas to use its data systems technology to analyze real-time car traffic and crowd density data to enhance public security. — Reuters

NGCP to consumers: conserve power

WHILE THERE is a continuous supply of electricity, the National Grid Corporation of the Philippines (NGCP) urged consumers to conserve energy given the uncertain impact of the new coronavirus disease 2019 (COVID-19) pandemic.

On Wednesday, the privately owned grid operator reported that it expected the peak demand for the day to be around 6,900 megawatts (MW), which is “below the projected peak.”

“Sa kasalukuyan, may namo-monitor tayong malaking decrease, lalo na sa Luzon, nung konsumo, ‘yung expected consumption natin ng kuryente,” NGCP Spokesperson Cynthia P. Alabanza said in an interview with DZBB on Wednesday morning.

(At present, we are seeing a big decrease, especially in Luzon, in the expected consumption of electricity.)

“Nasa 12,181 MW ’yung kakayahan ng grid na mag-supply ng kuryente pero ang inaasahan nating peak demand o ’yung pinaka-mataas na konsumo for today nasa 6,900 lang, so malaking-malaki ang diperensya,” she added.

(The grid is capable of supplying 12,181 MW but our expected peak demand today is only 6,900 [MW], so there is a big difference.)

The grid operator told consumers to limit their energy usage amid the falling demand for power. — Adam J. Ang

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