THE National Transmission Corp. (TransCo) said it still has a “sufficient” balance in the feed-in-tariff allowance (FiT-All) fund to aid renewable energy (RE) developers and help sustain their operations during the Luzon-wide enhanced community quarantine.
Late Friday, the Energy Regulatory Commission (ERC) ordered the suspension of FiT-All collections, effectively cutting power rates by P0.04 per kilowatt-hour (kWh) in the next utilities billing cycle.
“The FiT-All Fund has sufficient total balance to address its current obligations to the FiT-Eligible RE Developers even if no new FiT-All collection comes in for the time being,” TransCo President and Chief Executive Officer Melvin A. Matibag told BusinessWorld in a text message Sunday.
“We are currently coordinating with the ERC on some technicalities regarding account disbursements,” he added.
The ERC has asked TransCo to continue its payments of obligations to feed-in-tariff-eligible power producers, which it claimed would not be affected by the collection halt.
Meanwhile, the agency tasked with administering FiT-All collections said it has advised its collection agents to observe the order.
“[W]e will contribute to this cause by complying with the Order and not adding to the concerns and anxiety of the public. We have also advised our Collection Agents to observe the ERC Order,” Mr. Matibag said.
Asked to comment, Negros Occidental-based San Carlos Biopower, Inc. Vice Chairman Don Mario Y. Dia said that the FiT-All collection break might affect the company’s projects.
“(We are) definitely affected, especially now that we are in a crisis. But if this helps alleviate the plight of the poor, we are treating it as cushion or assistance, and part of our Corporate Social Responsibility,” Mr. Dia told Businessworld in a text message Sunday.
In its order, the ERC suspended the FiT-All collection to “provide some economic relief to the majority of electricity consumers,” mainly minimum-wage earners.
“With the ongoing lockdown situation, most of them are facing forced unpaid leave, reduced working hours, or no work-no pay arrangements,” ERC Chairperson and Chief Executive Officer Agnes Vicenta S. Torres-Devanadera said in a statement.
The agency said some 19 million electricity customers will benefit from the rate cut.
This year, on-grid customers are charged a P0.0495 per kWh FiT-All rate, which is P0.1731 lower than the previous FiT-All rate of P0.2226 per kWh.
FiT-All is a uniform charge to all electricity customers, calculated and set annually. It is collected by distribution utilities, the National Grid Corp. of the Philippines, and Retail Electricity Suppliers, while the payments are remitted to the FiT-All fund held by TransCo. — Adam J. Ang
Digital technologies offer new opportunities to create value by leveraging data captured while companies carry out business as usual. However, while most companies embark on data-driven digital transformation, many still struggle to 1) determine the right data strategy that allows them to become a truly data-driven organization and 2) properly manage and govern their data. In fact, data management and governance ranked as the second top IT challenge identified by business tech leaders after IT security and privacy. As data increases in scale and complexity, some organizations remain fragmented and still work in silos to collect, transfer, process, analyze and store their growing data. Many companies cannot adapt to these changes and find themselves stuck in the archaic way of managing data.
As companies work to innovate and go digital, management must strike a balance between the need to implement information security mechanisms and effective data management, including but not limited to data quality, data governance and data protection. Based on research, consumers of data spend 80% of their time looking for and cleansing data, and only spend 20% of their time analyzing and transforming data into valuable information to drive sound decision-making. This highlights the need for companies to reassess their data management strategy as well as their governance structure to better manage their data.
Initiating data management and governance can seem daunting, considering how these cannot be confined to one corner of an organization. They can only be effectively managed through collaborative efforts between business departments and IT. Companies also need to govern their data environment regardless of the type of data and where it resides. A sound data management and governance program helps an organization achieve its desired targets over time to support its business objectives, while upholding data integrity and consistency accelerates the deployment of business activities and can reduce the cost of owning data. With this, companies should start by looking at their data sources and make sure that there are sound strategies and robust policies in place to protect the integrity of their data.
There are many reasons why data management and governance programs fail, or at least, underperform. A company’s data governance strategy and policies may not be established nor well-defined, or data management itself is either viewed as an academic exercise or treated like a finite project. Executives may also isolate data as an “IT issue,” leading to business units and IT not working together to manage data in a structured and repeatable manner. It’s possible that the company’s unique culture is not taken into account, or that company personnel are already overloaded and can no longer handle governance activities.
To revisit their data management strategy and governance mechanisms, companies can take the following items into consideration.
ALIGNING DATA GOVERNANCE STRATEGY
Companies must first define what data management and governance mean to their business. There should be a clear understanding of their business goals, since these will drive the company’s data strategy and scope. The scope is then defined based on priorities and the level of governance that fits the company culture.
Establishing data governance will impact the whole organization. Placing strong focus on the company’s change management and communications approach is vital for successfully implementing and sustaining a data governance strategy. Everyone in the organization needs to understand the purpose of treating data as a strategic asset as well as their role in this shift. Lack of ownership can be a very challenging issue, especially during the early stages of implementation.
Companies should also formalize their data governance committee and clearly define roles and responsibilities while ensuring that the responsibility does not rest solely on IT. Since data governance requires the collaboration of the entire organization, management support is the most significant component when starting a governance program.
ESTABLISHING FORMAL DATA GOVERNANCE POLICIES
Policies intend to establish ground rules that must be followed within the organization. They should enable the right people and the right steps to be taken at the right time.
Data must be managed as an important asset of every organization. Formal accountability should be put in place while compliance is ensured with the relevant regulations, especially on data privacy and security. Data quality must also be consistently managed across the entire data life cycle. Management should establish a periodic review and approval cycle to ensure that data governance policies stay relevant and responsive to the fast-changing business landscape. Proper key performance indicators (KPIs) must be agreed upon and put in place when the data strategy is implemented.
PROFILING YOUR DATA AND COMPLETING A DATA CATALOGUE
A company should be aware of what data it has on hand, making it imperative to establish a data catalogue which becomes the heart of the data governance framework. As a living document, the data catalogue is subject to changes to accommodate the organizational (business and technology) landscape. Companies must know where they use their data as well as why it captures, stores and uses the data.
A data catalogue should help entities define their data, identify data owners and a data custodian to establish accountability, and define data quality measures to ensure data integrity, confidentiality and availability. This allows management to rely on a single source of truth to support their decision-making.
SELECTING THE APPROPRIATE TECHNOLOGY
There are several technologies available that can provide visualization of the quality of data that a company decides to master. This can be achieved by utilizing efficient design technology that provides accessibility and the seamless integration of data across all systems. It should also be noted that in selecting a design solution, cybersecurity is a key area of consideration.
Establish checks and balances to monitor data quality on a regular basis, the frequency of which depends on the required availability of top critical data elements. One way to achieve this is to implement audits and to monitor KPIs, as well as to continuously evaluate and improve the company’s data governance program.
UTILIZING A VALUABLE RESOURCE
Companies can no longer ignore data as a resource nor overlook its management to properly maximize its value. As companies continue to become more data-driven, their success will ultimately depend on their ability to manage and utilize a coherent view of their data. Better data — and a clearer view of what that data means — can give valuable insights that ultimately allow companies to make well-informed decisions in the face of change and growth.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Conrad Allan M. Alviz is a Senior Director from the Advisory Service Line of SGV & Co.
LONDON — Calls from sporting organizations for this year’s Tokyo Olympics to be postponed because of the coronavirus pandemic gathered pace on Saturday with USA Track and Field (USATF), the French Swimming Federation and Brazil’s Olympic Committee the latest to join the throng.
The International Olympic Committee (IOC) and Tokyo 2020 organizers still insist the July 24-Aug. 9 showpiece will go ahead as planned despite Europe and the United States struggling to control the spread of the flu-like virus.
Their optimism that the show will go on, however, is looking increasingly out of step with countries in lockdown and athletes around the world unable to train.
In a letter to US Olympic & Paralympic Committee (USOPC) Chief Executive Sarah Hirshland, USATF urged USOPC to use its voice to “speak up for athletes.”
Chief Executive Max Siegel said the USTAF understood the ramifications of postponing the Games for the first time ever in peace time but moving forward was not in the best interest of athletes.
“We acknowledge that there are no perfect answers, and that this is a very complex and difficult decision, but this position (to postpone the Games) at least provides athletes with the comfort of knowing they will have adequate time to properly prepare themselves physically, mentally and emotionally to participate in a safe and successful Olympic Games,” he wrote.
USA Swimming wrote to USOPC on Friday calling for a delay of one year, with CEO Tim Hinchey saying: “We have watched our athletes’ worlds be turned upside down.”
The French Swimming Federation issued a statement saying that sending its athletes to the Games was “untenable” in light of the health crisis sweeping the world.
“The Federation believe that the priority is to fight the spread of the epidemic and that the current context does not allow us to calmly envisage the smooth running of the 2020 Olympics Games,” it said, adding that it was impossible to ensure equity in competition when athletes were prevented from training because of efforts to contain the spread of the virus.
A day earlier UK Athletics said the Olympics should be called off to spare athletes the stress of trying to train in the grip of a pandemic which has killed around 12,000 people since the virus surfaced in China.
Brazil’s Olympic chief Paulo Wanderley echoed those thoughts on Saturday, saying athletes would not be able to arrive in Tokyo in top form because of the impact of the crisis.
“It’s clear that right now maintaining the Games for this year will impede [the athletes’] dream from being realized,” he said.
POLITICAL BOYCOTTS
Suggesting a year’s delay, he said the IOC was experienced in dealing with obstacles, citing the cancellations in 1916, 1940 and 1944 because of World Wars and the political boycotts of the Games in Moscow in 1980 and Los Angeles in 1984.
Norway’s Sports Federation and Olympic and Paralympic Committee (NIF) said it had written to IOC chief Thomas Bach calling for the Games to be postponed, even if the pandemic was under control in Japan by the summer.
“Given the highly unresolved situation in Norway and in large parts of the world, it is neither justifiable or desirable to send Norwegian athletes to the Olympics or Paralympics in Tokyo until the world community has put this pandemic behind them,” sports president Berit Kjoll said.
The Sport and Rights Alliance (SRA) and the World Players Association (WPA) said a “deep review and broader consultation” with athletes was required regarding the decision over whether the Games could run as planned.
“The IOC needs to elevate its dialogue with the full range of those most affected beyond sponsors and governments to an open multi-stakeholder process that brings to the table as equals player associations as the representatives of athletes and others most at risk,” WPA executive director Brendan Schwab said in a statement. — Reuters
THE Badminton Asia Championships 2020 set for the country in April has been suspended by the world governing body of the sport over continuing concerns on the coronavirus disease 2019 (COVID-19).
In an announcement at the weekend, the Kuala Lumpur-based Badminton World Federation (BWF) said the Asia Championships was one of the events in the next two months it was suspending as cases of COVID-19 in different parts of the world continue to increase.
The event, originally set for April 21 to 26, was supposed to take place in Wuhan, China, ground zero for COVID-19.
It was awarded to the Philippines after the country successfully hosted the 2020 Badminton Asia Team Championships in Manila in February, which was topped by Indonesia (men’s) and Japan (women’s), respectively.
“The health, safety, and well-being of all athletes, their entourage, officials and the greater badminton community remain as the top priority,” BWF’s statement on the postponement read.
Postponed as well were the Thomas and Uber Cup (May 16-24) in Denmark, the European Championships (April 21-26) in Ukraine, Pan Am Individual Championships (April 23-26) in Peru, Croatian International (April 3-5), and Peru International (April 16-19).
Incidentally all events serve as key tournaments for badminton players trying to qualify for the 2020 Tokyo Olympics, which organizers said is still a go in July despite a growing clamor to have the Games deferred to a later date.
As of this writing, the Philippines has 380 confirmed cases of COVID-19 with 25 reported deaths and 15 people recovering.
Globally there are 307,625 COVID-19 cases and 13,050 fatal cases. Recovered cases are pegged at 95,797. — Michael Angelo S. Murillo
NEW YORK — With the coronavirus pandemic turning daily life upside down and confining people indoors, 23-time Grand Slam winner Serena Williams shared an increasingly common sentiment on social media — “Every little thing makes me really crazy.”
With global sport at a virtual standstill due to the virus, which has claimed more than 10,000 lives globally, many professional athletes have been left anxious as they struggle to cope with all the uncertainty that lies ahead.
“It started out with me feeling like ‘oh it can’t really affect me,’” said Ms. Williams in a series of TikTok videos, in which she described practising social distancing for two weeks since the cancellation of the Indian Wells tennis tournament.
“That one cancellation led to another and another and then led to all this anxiety that I’m feeling.
“I’m just on edge any time anyone sneezes around me or coughs.”
While billions of people around the world are suffering the same fears as Ms. Williams due to the rapid spread of the virus, the situation has also rattled those hoping to compete at this year’s Tokyo Olympics.
Thousands of Olympic hopefuls have been left in limbo with many qualifying events around the world postponed or canceled.
US Olympic committee (USOPC) CEO Sarah Hirshland told reporters on Friday that the organization “doubled down our mental health resources” for its athletes, with the Tokyo Olympics set to be held as scheduled from July 24 to Aug. 9.
“We’ve expanded the accessibility of those resources to a broader group of athletes, and are really working to communicate with them to ensure that we destigmatize any concerns they have about reaching out for mental health support,” said Ms. Hirshland.
The pandemic is also preventing many athletes from continuing their usual training regime as several countries are advising people to practise social isolation in a bid to stem the spread of the virus.
US weightlifter Katherine Nye had already secured her ticket to Tokyo, despite her sport’s qualifying period being cut short by a month, and told Reuters she was continuing to train out of her garage.
“Some people still had to compete again to qualify, and they have lost that opportunity entirely,” said Ms. Nye. “I’m definitely experiencing a lot of anxiety because of the pandemic, just like lots of people around the world.
“It’s not easy to ignore all the horrible things going on.”
Olympic organizers faced increased pressure to postpone the Games on Friday, after USA Swimming called for a delay, citing concern for athletes, a sentiment that many had expressed.
“How on earth are we meant to carry on preparing [as] best we can?” Jess Judd, a British middle-distance runner wrote on Twitter.
“Will someone share with me what races we can do to get times and whether trials will go ahead and when training can return to normal?” — Reuters
FORWARDS from San Beda and Nazareth School of National University (NSNU) head the rankings of the top high school players in the land in the National Basketball Training Center (NBTC) and lead the 24 players that will see action in the 2020 NBTC All-Star Game.
San Beda-Taytay’s all-around forward Rhayyan Amsali and NSNU’s Carl Tamayo and Kevin Quiambao occupied the top three spots in the final NBTC rankings.
Amsali made his one-and-done season with the Red Cubs a stint to remember as he led the team to the title in Season 95 of the National Collegiate Athletic Association (NCAA) and solidified his standing as one of the standout high players in the country.
He used to play for NSNU before deciding to move to San Beda, serving his residency before donning the red and white.
In the NCAA juniors finals Amsali led the Red Cubs over the Lyceum Junior Pirates in their 2-1 series win, where he was named finals most valuable player.
Tamayo and Quiambao, meanwhile, continued to be a force for NSNU, which notched the title for Season 82 of the University Athletic Association of the Philippines.
The Bullpups swept the Far Eastern University-Diliman Baby Tamaraws, 2-0, in their best-of-three finals.
Tamayo was named finals MVP while graduating player Quiambao had all-around numbers of 12.6 points, 9.7 rebounds, 1.9 assists and 1.4 blocks in his final year.
The three lead the 24 players set to see action at the NBTC All-Star Game tentatively set for April.
Joining Amsali, Tamayo and Quiambao are Mac Guadana (Lyceum), Jake Figueroa (Adamson), Bismarck Lina (University of Santo Tomas), John Barba (Lyceum), Josh Lazaro (Ateneo), Terrence Fortea (NSNU), Penny Estacio (FEU-D), Jonnel Policarpio (Mapua) and Lebron Lopez (Ateneo).
Also making it to the list of 24 are Cholo Anonuevo (FEU-D), Justine Sanchez (San Beda-Taytay), Forthsky Padrigao (Ateneo), Gerry Abadiano (NSNU), Yukien Andrada (San Beda-Taytay), Tony Ynot (San Beda-Taytay), RC Calimag (La Salle Greenhills), Joshua Ramirez (Colegio de San Juan de Letran), Joshua Cajucom (Hope Christian), Miguel Tan (Xavier School), Isaiah Blanco (University of Cebu) and Mike Boniel (Sacred Heart School-Ateneo).
The Chooks-to-Go SM-NBTC League National Finals as well as the annual All-Star Game were originally set to happen this week at the Mall of Asia Arena but because of the declaration of Public Health Emergency in the country over the coronavirus disease 2019 (COVID-19) these were deferred to April 20 to 26.
The weeklong showcase of the top young talent in the country is backed by Smart, Vivo, Darlington, Phoenix Fuels, Epson, Gatorade, Go for Gold, and Molten. Media partners for the annual event are Cignal and One Sports. — Michael Angelo S. Murillo
First off, this much is clear: The Federation Francaise de Tennis was absolutely right to postpone the French Open to a later date. It couldn’t have opened the gates of Roland Garros on May 24 as originally planned given community quarantine protocols in place due to the novel coronavirus pandemic. And with cancellation as an acceptable alternative only in a worst-case scenario, it settled on postponement instead. From its vantage point, it had an obligation to host the major tournament even at the expense of tradition. At least the crown jewel of the clay court season would be moved and not scuttled altogether.
That said, organizers were wrong to schedule the French Open to the fortnight beginning September 20 absent any consultation whatsoever with the sport’s other stakeholders. Because they unilaterally changed the date, they wound up spreading the logistical nightmares they foresee in staging the Grand Slam event in autumn. Even a cursory glance at the calendar they amended shows the havoc they wreaked. And because originally confirmed stops, including the Laver Cup, are affected, participants will be compelled to choose accordingly at risk of damaging relations any which way.
It’s a bind, really, that the FFT could have avoided had it first opted to touch base with the Association of Tennis Professionals and Women’s Tennis Association. Contractual obligations compel their members to suit up for the French Open and not with a conflicting spectacle, but the Laver Cup is one they have backed for a reason. And then there is the question of others doing the same and acting on self-interest. The United States Open, for instance, should be done by September 8. But what if it isn’t and needs to be moved? What if there’s an overlap?
Interestingly, French Open tournament director Guy Forget took pains to inform defending champion Rafael Nadal of the postponement. How and why the information did not reach others, especially since the clay court legend is a member of the ATP Player Council, figures to be the subject of speculation. Nonetheless, there can be no discounting the impact of the FFT’s decision. Already rocking in the present and struggling to hold on to any semblance of normalcy in the future, the sport is further threatened by an utterly avoidable development. How it copes in the immediate term may well determine if it improves or implodes.
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.
Recorded before Luzon was locked down, this episode picks apart data released by the Philippine Statistics Authority. BusinessWorld Research Head Leo Uy and economist Dr. Raul Fabella talk about the Monthly Integrated Survey of Selected Industries, the Labor Force Survey, and the importance of the manufacturing sector to the country’s long-term growth.
They also talk about the possible effects of COVID-19 on the labor situation and whether the country can return to the “new normal” — defined by faster growth in the manufacturing sector than in the service sector, and 6.5% GDP growth — despite the bleak and volatile situation.
Recorded on March 11 at the BusinessWorld Studio in Quezon City. Produced by Nina M. Diaz, Paolo L. Lopez, and Sam L. Marcelo.
MORE foreign capital entered than left the country in February to yield a net inflow of $40 million in February, despite the brewing volatility over the spread of the coronavirus disease (COVID-19).
However, analysts warned that the coming months could be brutal, as the on-going Luzon lockdown and the stock market selloff are hurting investor sentiment.
Foreign portfolio investments — dubbed as “hot money” due to the ease by which these funds go in and out of an economy — resulted to a net inflow of $40.06 million in February, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Friday.
This inflow is a reversal of the net outflow of $486.1 million logged in January, and is smaller compared to the $339.57 net inflow seen in February 2019.
BSP data showed $1.374 billion in registered investments in February, lower than the $1.41 billion in February 2019 but 11% higher than the $1.235 billion recorded in the preceding month.
The BSP said that majority or 68.7% of the foreign investments logged in the month were funnelled into Philippine Stock Exchange-listed securities, mainly for businesses such as holding firms, property companies, banks, transportation services firms, and food, beverage, and tobacco companies.
On the other hand, nearly a third (31.3%) went to peso government securities.
A big chunk or 72.8% of the foreign investments came from the United Kingdom, Singapore, the United States, Luxembourg, and Japan.
BSP data also showed gross outflows stood at $1.334 billion in February, which was higher than the $1.07 billion seen a year ago but smaller compared to the $1.721 billion logged in January.
The central bank said there was “on-going concern on the potential global impact of the COVID-19 outbreak, and the release of 2019 corporate earnings report of several firms” in February.
BSP projects foreign portfolio investments to hit a net inflow of $8.2 billion in 2020, according to its outlook last November.
Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the net inflow of hot money somehow “defied increased volatility” in the market as coronavirus concerns began emerging in February.
“This is manifested by the relative resilience of the peso exchange rate recently, among the strongest in two years, partly due to interest rate differentials in favor of the peso and sharp decline in global crude oil prices…” Mr. Ricafort said in an email.
Economists expect volatility in the global financial markets to drag on for several months, which would affect foreign portfolio investments.
For his part, ING-Bank NV Manila Senior Economist Nicholas Antonio T. Mapa said that the enhanced community quarantine in Luzon paired with the selloff in the local stock market will take its toll on investor sentiment.
“March will likely see an even more severe outflow with most of the Philippines on enhanced community quarantine and economic activity grinding to a halt,” Mr. Mapa said in an emailed response.
“The stock market has plunged, bond markets are selling off and world leaders are scrambling to right the floundering global economy,” he added.
UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said foreign investors will gauge the government’s ability to contain the virus outbreak.
“It would be clear for potential investors if the current efforts are actually working (just like what has happened in other countries so far),” he said in an emailed response.
As of Thursday, there were 217 infected patients in the Philippines, with 17 deaths recorded. — Luz Wendy T. Noble
A man is checked for body temperature at a checkpoint placed amidst the lockdown of the country’s capital to contain the spread of coronavirus, in the outskirts of Quezon City, March 15. — REUTERS
MORE THAN 30 business groups urged Congress, in coordination with the Duterte administration, to approve the “maximum fiscal response” to shelter the Philippine economy from the impact of the coronavirus disease (COVID-19).
Business groups, led by the Philippine Chamber of Commerce and Industry, Employers Confederation of the Philippines, the Makati Business Club, and the Management Association of the Philippines, said the government should commit to a “more forceful action on the fiscal front in order to “mitigate the suffering of Filipinos and reduce damage to the society and economy.”
In a statement, the 32 business groups said the government “can and should” adopt a fiscal stimulus program that will hike the deficit-to-gross domestic product (GDP) ratio to nearly 5%.
“Assuming GDP growth slows to 4.5% (GDP: P20 trillion), a 5% deficit will be P1 trillion. Subtract the programmed deficit of 3.6% (P720 billion), and there is room for a P281 billion fiscal stimulus program,” the groups said.
“Assuming GDP growth slows to 3% (GDP: 19.7 trillion), a 5% deficit will be P987.5 billion. Subtract the programmed deficit of 3.6% (P711.3 billion), and there will be room for a P277 billion fiscal stimulus program.”
Economic planners said that coronavirus outbreak may slash this year’s growth by up to 1.2 percentage points if it lasts until yearend, although it has yet to officially announce changes to its 6.5-7.5% target. Last year, the economy grew by 5.9%.
The government has put a cap on its deficit-to-GDP ratio at 3.2% for this year.
The business groups said that the Luzon quarantine is impacting millions of workers, including informal workers who are barred from leaving their homes to work and regular workers who may lose jobs as companies experience difficulties.
“A health issue is now also a hunger issue and may trigger violence and longer term social tensions,” they said. “Many companies are doing what they can to keep their employees paid despite their inability to work and drastic declines in sales. But they can only do so much compared with the millions who are vulnerable to the downturn.”
While the business groups believe that the initial P27 billion response package announced this week is a “great start,” they called for a bigger fiscal stimulus.
The groups said there should be funds for conditional cash transfer recipients and for the labor department and company programs supporting workers affected by the quarantine. There should also be additional efforts to transfer funds or food to low-income families.
They are also asking the government to allot funds for temporary hospitals and quarantine areas to cope with a surge in patients and for micro, small, and medium-sized enterprises that focus on hiring.
The business groups believe there should be targeted subsidies for health, tourism, and transport, as well as increases in public investment spending and deferment of penalties related to interest payments.
The statement was also signed by industry groups like Philippine Exporters Confederation Inc., Information Technology and Business Process Association of the Philippines, the Philippine Retailers Association, the Philippine Franchise Association and banking groups like the Chamber of Thrift Banks Rural Bankers Association of the Philippines, and the Bankers Association of the Philippines.
Foreign chambers like the American Chamber of Commerce of the Philippines, and their European, Japanese, German, Canadian, and Australian-New Zealand counterparts also signed the statement.
Funding, the groups said, can also be sourced from savings or mandated savings of government-owned and controlled corporations and government agencies not directly in charge of the crisis like the health department and local government.
“This massive stimulus will save lives and protect our society but will not trigger alarm bells in the credit rating and global investment community as the Philippine debt/GDP measure is only likely to rise from 41.5% to 44.2%. It was almost 70% about 15 years ago.”
Meanwhile, the Financial Executives Institute of the Philippines, Inc. (FINEX) called for the government to implement an emergency calamity amelioration program to support the poor, jobless and homeless during the ECQ.
In a statement, FINEX called on Congress to authorize President Rodrigo R. Duterte to realign unspent or unobligated appropriations in this year’s General Appropriations Act for the emergency calamity amelioration.
“The national budget was designed and approved for normal times. But we are now in abnormal times, unprecedented since the war years. This global virus pandemic was not foreseen nor factored into the budget. We are now in a war for the survival of our nation and its economy, and fiscal policy and programs must be realigned as we propose during the exigency of this national emergency,” FINEX said.
SPECIAL SESSION
In response to President Rodrigo R. Duterte’s call for Congress to hold a special session to pass a supplemental budget, House Speaker Alan Peter S. Cayetano said they are ready to convene at the earlier possible time while following social distancing protocols.
“The House of the People stands ready to respond to the call of the President for a special session to pass measures, including a supplemental budget that would give the executive department more flexibility in containing the spread of COVID-19, and help ease the burden brought about by the pandemic among our nation’s most vulnerable sectors. As well as to discuss all other issues regarding health, the economy, and the concerns for a speedy recovery from the effects of this crisis,” he said in a Facebook post.
The House committee on appropriations earlier passed P1.65 billion in supplemental funding to support the government’s response to COVID-19.
On Thursday, Senate President Vicente C. Sotto III said that the Senate would tackle during the special session a “food subsidy budget” for daily wage earners who have lost their jobs during the enhanced community quarantine in Luzon.
Congress began its two-month break last March 13. Hearings in both chambers have also been suspended. Congress will resume regular sessions on May 4. — Jenina P. Ibañez and Genshen L. Espedido
THE country’s current account deficit shrank to $464 million in 2019, due to “lower trade in goods deficit combined with higher net receipts in the trade in services, and in the primary and secondary income accounts, the Bangko Sentral ng Pilipinas said on Friday.
Data from the BSP showed a current account gap of $464 million last year, significantly lower than the $8.773 billion deficit seen in 2018.
The current account portrays a picture of the country’s overall economic interaction with the rest of the world covering trade in goods and services; remittances from overseas Filipino workers; profit from Philippine investments abroad; interest payments to foreign creditors; as well as gifts, grants and donations to and from abroad.
At its 2019 level, the current account made up 0.1% of the country’s gross domestic product (GDP), compared to the 2.4% of GDP in 2018.
The central bank said that imports of goods fell mainly due to the “slowdown in importation of raw materials such as construction materials related to the Build Build Build project of the government during the first half of the year, as well as the decline in volume and price of imported crude oil in the world market.”
At the same time, exports of goods went up as shipments of electronic products, and fruits and vegetables increased.
“It is well known that the 2019 budget was delayed, and consequently, the planned infrastructure spending played catch-up until the end of the fiscal year. This delay largely affected import performance causing the decline in the current account deficit,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said via email.
In the fourth quarter of 2019, the current account was at a surplus of $748 million, reversing the $2.701 billion deficit in 2018.
“This development stemmed primarily from the reduced deficit in the trade in goods account along with increased net receipts of primary and secondary income, and trade in services during the quarter,” the BSP said.
In 2019, the balance of payment (BoP) position of the country was at a surplus of $7.843 billion, reversing the $2.306 billion deficit seen in 2018.
For 2020, the central bank expects the country’s BoP position to hit a surplus of $3 billion.
This year, analysts warned that the pandemic will greatly impact the BoP. The coronavirus outbreak prompted the government to implement a Luzon-wide enhanced community quarantine, causing disruption to many businesses.
“2020 BoP and the COVID-19 pandemic paints a picture of uncertainty that trying to forecast may be counterproductive,” Mr. Asuncion said.
“However, I still see a slight economic recovery of the Philippine economy towards the second half of 2020 that may push the BoP position to a deficit,” he added.
For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that there could be some relief from uncertainties due to the impact of the outbreak on the economy and financial markets.
“This could still be offset by any continued growth in OFW (overseas Filipino workers) remittances, BPO (business process outsourcing) revenues, and foreign investments, especially if the coronavirus is contained in the coming months,” he said. — Luz Wendy T. Noble
PHILIPPINE central bank Governor Benjamin Diokno said the nation’s economic growth this year could slow to a range of 5% to 5.5% as the world faces the risk of a recession.
“The current BSP monetary stance is consistent” with that forecast, Diokno said in a mobile-phone message, referring to Bangko Sentral ng Pilipinas. “In order to achieve a higher growth rate, a massive, well-crafted fiscal stimulus is imperative.” The growth range is the central bank’s estimate and not the government’s, he said.
Diokno on Thursday delivered on a pledge to cut the key rate by half-a-point as central banks worldwide ease monetary policy and unleash stimulus. The BSP said it is ready to further reduce banks’ reserve requirement ratio and undertake other measures to boost financial market liquidity. It’s also ready to step in, if needed, to meet any demand for dollars.
The central bank governor is scaling down his expectations from an earlier 6% forecast. The Philippine economy grew 5.9% in 2019 from a year earlier.
President Rodrigo Duterte has ordered a month-long lockdown of the main Luzon island, which has 60 million people and is responsible for about 70% of the country’s economic output.
“In a world facing a possible recession, a region that might slow down to around 3% growth, 5% to 5.5% growth rate is enviable,” he said. Dow Jones was first to report on the governor’s downgraded growth forecast. — Bloomberg
